BUSINESS ECONOMICS

+2 2nd Year
CHSE PAST YEAR QUESTION’S
2018-2024

www.commercestudentsodisha.com
 CHSE PAST YEAR QUESTIONS 2018
Business Economics
_______________________________________
GROUP-A
1. Write the correct answer choosing from multiple choices given under each
bit. [1×20=20]
(a) What does a shift of the demand curve to the right imply?
(i) expansion in demand (ii) contraction of demand
(iii) increase in demand (iv) decrease in demand
(b) If the total expenditure on a commodity remains unchanged with a change in
its price the numerical value of the price elasticity demand is:
(i) less than 1 (ii) more than 1 (iii)1 (iv) zero
(c) Production means:
(i) creation of matter
(ii) destruction of utility
(iii) creation of utility having exchange value
(iv) enhancing the efficiency of factors
(d) When marginal product becomes zero, total product:
(i) becomes maximum (ii) becomes minimum
(iii) increases (iv) decreases
(e) Which one of the following is not wealth?
(i) water supply in a city (ii) motor car
(iii)money (iv) wrist watch
(f) Which one of the following is concerned with Microeconomics?
(i) Savings of an economy
(ii) Calculation of national income
(iii) Theory of economic development
(iv) Theory of consumer behaviour
(g) What is Gross National Product at factor cost, if Gross National Product at
market price is 9,000 crore, indirect tax is 800 crore and subsidy is 200 crore ?
(i) ₹10,000 crore (ii) ₹8,400 crore
(iii) ₹9,600 crore (iv) ₹8,800 crore
(h) Disposable personal income is:
(i) personal income minus indirect tax
(ii) personal income minus consumption expenditure
(iii) personal income minus direct taxes
(iv) income earned through illegal means
(i) (i) Which one of the following is not a function of the Commercial Bank?
(i) Credit control (ii) Acceptance of deposits
(iii) Advancing loans (iv) Remittance of funds
(j) Which of the following budgets creates inflation?
(i) Balanced budget (ii) Deficit budget
(iii) Surplus budget (iv) Static budget
(k) Who among the following gave the wealth definition of Economics?
(i) Adam Smith (ii) Alfred Marshall
(iii) Lionel Robbins (iv) Paul Samuelson
(l) Which one of the following is a characteristic of human wants?
(i) Wants are limited. (ii) All wants are satiable.
(iii) All wants are equally urgent. (iv) Wants recur.
(m) Utility means:
(i) pleasure derived from a commodity
(ii) usefulness of a commodity
(iii) wants satisfying power of commodity
(iv) needs for a commodity
(n) Which one of the following is not a public good?
(i) National Highway (ii) street light
(iii) defence service (iv) motor cycle
(o) Price means:
(i) Exchange value of a good in terms of money
 (ii) Exchange value of a good in terms of other goods
(iii) Value-in-use of a good
(iv) Exchange value of a good in terms of gold

2. Examine the correctness of the following statements. Correct them, if

necessary without changing the portions underlined:
(a) The second phase of the Law of Variable Proportions indicates negative
returns.
(b) Total fixed cost curve takes a shape of a rectangular hyperbola.
(c) Marginal Cost becomes equal to the average cost when the average cost is
maximum.
(d) During market period supply completely adjusts to demand.
(e) Under monopolistic competition there is the absence of close substitutes.
(f) When marginal revenue becomes zero total revenue becomes minimum.
(g) Consumption of fixed capital is a part of net national product.
(h) Transfer incomes is not included in the national income. ·
(i) Bank of India is the central bank of our country.
(j) Public finance is concerned with the income and expenditure of the
government.
(k) Consumption means satisfaction of human wants by the use of goods.
(l) Principle of exclusion aw lies to private goods.
(m)Downward sloping demand curve indicate direct relationship between price
and quantity demanded.
(n) Perfectly elastic demand curve is vertical.
(o) The technical relationship between the quantities of inputs and the volume of
output is called cost function.

GROUP-B

3. Answer any eleven of the following questions within two or three sentences
in each case. [2 x 11 = 22]
(a) What is Market Demand?
 (b) What is Fixed Factor?
(c) How is total cost calculated in the short period?
(d) What is Meant by market?
(e) What is Oligopoly?
(f) What is Macroeconomics?
(g) What is Mixed income?
(h) What is Private income?
(i) What is Overdraft?
(j) What is Commercial Bank?
(k) What is Budget?
(l) What is Conventional necessary?
(m)What is Value?
(n) What is meant by Consumer's Equilibrium?
4. Distinguish between any four of the following. Limit your answer to 50
words in each case : [3 x 4 = 12]
(a) Demand schedule and Demand curve
(b) Average product and Marginal product
(c) Money cost and Real cost
(d) Form utility and Time utility
(e) Time deposit and Current deposit
(f) Balanced budget and Unbalanced budget
(g) Free goods and Economic goods
(h) Substitutes and Complementary goods.
GROUP-C

Answer any three of the following questions: [8 × 3 = 24]

5. Diminishing Marginal Utility.

6. Explain the Law of Supply.
7. Discuss how price is determined under Perfect Competition.
8. Describe the functions of money.
9. Explain the Simple Keynesian theory of income Determination.
 CHSE PAST YEAR QUESTIONS 2019
Business Economics
_______________________________________
GROUP-A
1. Write the correct answer choosing from multiple choices given under each
bit. [1×20=20]
(a) Who gave the scarcity definition of Economics?
(i)Adam Smith (ii)Alfred Marshall
(iii)Lionel Robbins (iv) J. S. Mill
(b) Value means
(i) Usefulness of a commodity
(ii) exchange value of a commodity
(iii) pleasure derived from a commodity
(iv) want satisfying power of a commodity
(c) The shape of a perfectly elastic demand curve is
(i)Downward sloping (ii)Vertical
(iii) Horizontal (iv) Rectangular hyperbola
(d) What does the shifting of demand curve to the right indicate?
(i)Expansion of demand (ii)Increase in demand
(iii)Contraction of demand (iv)Decrease in demand
(e) When marginal product is zero, what happens to the total product?
(i) Zero (ii)Maximum (iii) Declines (iv) Increases
(f) Production means
(i)Creation of utility having exchange value
(ii) Satisfaction of human wants
(iii) Creation of matter
(iv) Making factors more productive
(g) Which one of the following is the variable cost of a firm ?
(i) Cost of the machine (ii) Cost of the factory building
 (iii) Salary of the manager (iv) Payment for new materials
(h) The unique feature of Monopolistic competition is
(i) Single seller (ii) Single price
(iii) Product differentiation. (iv) Barriers to entry into market
(i) Which one of the following is not included in National income?
(i)Operating Surplus. (ii) Compensation of employees
(iii) Transfer income (iv) Mixed income
(j) What is the value of the Gross Domestic Product if the value of Gross National
Product is Rs. 60,000 crore and_the_net factor income from abroad is
Rs.20,000 crore ?
(i) Rs. 45,000 crore (ii) Rs. 40,000 crore
(iii) Rs. 80,000 crore (iv) Rs. 65,000 crore
(k) Which one of the following functions of money makes money a unit of
account?
(i) Medium of exchange (ii) Measure of value
(iii)Standard of deferred payment (iv) Store of value
(l) Which one of the following is a function of the Central Bank ?
(i) Acceptance of deposits from the public (ii) Advancing loans
(iii)Issue of notes (iv)Credit creation

2. Examine the correctness of the following statements. Correct them if

necessary, without changing the portions underlined: [1 x 12 = 12]
(a) The want satisfying capacity of commodity is called consumption.
(b) National highway is an example of national wealth.
(c) Market demand curve is the horizontal summation of individual demand
curves.
(d) Wants for car and petrol are competitive.
(e) In the long run all factors of production are fixed.
(f) Cost per unit of output is marginal cost.
(g) supply curve shows the inverse relationship between price and quantity
supplied.
 (h) Flour for a bread factory is final good.
(i) Net indirect taxes are indirect taxes minus subsidies.
(j) Under Oligopoly there are innumerable sellers.
(k) Surplus budget is useful during deflation.
(l) In public finance normally expenditure is adjusted to income.
GROUP-B
3. Answer any ten of the following questions within 30 words in each case:

[2 × 10 = 20]

(a) What are the central problems of an economy ?

(b) What are conventional necessaries ?
(c) What is demand?
(d) What is private income?
(e) What is overdraft ?
(f) What is implicit cost?
(g) What is Monopoly ?
(h) What is investment demand?
(i) What is meant by Net National Product?
(j) What is personal disposable income?
(k) What is demand deposit ?
(l) What is credit control ?
(m)What is balanced budget?
4. Distinguish between any four of the following. Limit your answer to 50
words in each case : [3x4=12]
(a) Wealth and Income.
(b) Average revenue and Marginal revenue.
(c) Micro-economics and Macro-economics.
(d) Form utility and Place utility.
(e) Commercial Bank and Central Bank.
(f) Money cost and Real cost.
GROUP-C
Answer any three of the following questions: [8 × 3 = 24]

5. Explain the Law of Equi-Marginal Utility.

6. Explain the Law of Variable Proportions.
7. Explain how price is determined under perfect competition.
8. Explain Simple Keynesian Theory of income determination.
9. Discuss the objectives of Budget.
 CHSE PAST YEAR QUESTIONS 2020
Business Economics
_______________________________________
GROUP-A
1. Write the correct answer choosing from multiple choices given under each
bit. [1×20=20]
(a) Scarcity means
(i)Demand exceeds supply (ii) Supply exceeds demand
(iii) Demand equals supply (iv) None of these
(b) Which one of the following is National Wealth ?
(i) A five hundred rupee note (ii)A Surgeon's skill
(iii) Konark Temple (iv) Good health of an individual
(c) Which one of the following is not a characteristic of human wants?
(i)Wants are limited (ii) Wants recur
(iii) Wants are competitive (iv) Wants become habit
(d) If the price of a commodity increases by 10 per cent and its amount demanded
falls by 20 per cent, then find the price elasticity of demand of the commodity
from the following alternatives.
(i) 1/2 (ii) 1 (iii)0 (iv) 2
(e) When average product rises, marginal product is
(i) equal to average product (ii) less than average product
(iii) more than average product (iv) zero
(f) Real cost is
(i) money spent for production
(ii) income foregone in next best alternative
(iii) pain and sacrifices undergone during supply of factors
(iv) income gained through production
 (g) The shape of average fixed cost curve is
(i). vertical (ii)horizontal
(iii) upward sloping (iv) rectangular hyperbola
(h) Which of the following is true under perfect competition ?
(i) Average revenue > Marginal revenue
(ii) Average revenue = Marginal revenue
(iii) Average revenue < Marginal revenue
(iv) None of these
(i) Which of the following is the primary function of money?
(i) Medium of exchange (ii) Store of value
(iii) Basis of credit creation (iv) Transfer of value
(j) Which one of the following is not a component of gross national product at
market prices ?
(i) Salary and wages before tax (ii) Indirect tax
(iii) Retirement Pension (iv) Subsidies
(k) Which one of the following is. not function of a commercial bank?
(i)Accepting deposits (ii) Advancing loans
(iii) Issue of notes (iv) Credit creation
(l) Which bank acts as the lender of last resort ?
(i) Central bank (ii) Cooperative bank
(iii) Commercial bank (iv) Rural bank

2. Examine the correctness of the following statements. Correct them if

necessary, without changing the portions underlined: [1 x 12 = 12]
(a) Adam Smith has said that economics is a science of welfare.
(b) Total utility is minimum, when marginal utility is zero.
(c) Consumer attains maximum satisfaction with the help of the law of diminishing
marginal utility.
(d) The demand for salt is elastic.
 (e) The increase in total cost with increase in a unit of output is average cost.
(f) Seller is a price taker in monopoly market.
(g) Macroeconomics studies the behaviour of the firms.
(h) If net factor income from abroad is negative, Gross National Product is greater
than Gross Domestic Product.
(i) Intermediate goods are included in calculation of National Income.
(j) Fixed or time deposits earn less interest than saving deposits.
(k) When marginal product increases, total product increases at an increasing
rate.
(l) In a balanced budget, government receipts are greater than government
expenditure.
GROUP-B
3. Answer any ten of the following questions within 30 words in each case:
[2×10=20]
(a) What is complementary want?
(b) What is price elasticity of demand?
(c) State the Law of variable proportions.
(d) What is normal price?
(e) What is production ?
(f) What is Giffen good?
(g) What is equilibrium price?
(h) What is oligopoly ?
(i) State two primary functions of money.
(j) What is credit creation ?
(k) What is aggregate supply?
(l) What is personal income?
(m)What is explicit cost ?
4. Distinguish between any four of the following. Limit your answer to 50
words in each case : [3 x 4 = 12]
(a) Total utility and Marginal utility.
(b) Individual wealth and National wealth.
 (c) Marginal product and Average product.
(d) Gross National Product and Net National Product.
(e) Fixed cost and Variable cost.
(f) Consumption demand and Investment demand.

GROUP-C

Answer any three of the following questions: [8 × 3 = 24]

5. Total utility and Marginal utility.

6. Individual wealth and National wealth.
7. Marginal product and Average product.
8. Gross National Product and Net National Product.
9. Fixed cost and Variable cost.
10. Consumption demand and Investment demand.
 CHSE PAST YEAR QUESTIONS 2022
Business Economics
_______________________________________
GROUP-A
1. Write the correct answer choosing from multiple choices given under each
bit. [1×20=20]
(a) Who defined 'economics' as the 'science of choice' ?
(i) Adam Smith (ii)Alfred Marshall
(iii) Lionel Robbins (iv) Ruskin
(b) Who is called 'Father of Economics' ?
(i) Adam Smith (ii) Samuelson
(iii) Alfred Marshall (iv) Lionel Robbins
(c) Which one of the following is the basic unit of consumption ?
(i) Firm (ii) Govemment
(iii) Consumer (iv) Market
(d) Which of the following is not a characteristics of human wants ?
(i) Human wants are unlimited
(ii) Wants are competitive
(iii) A particular want is not satiable
(iv) Some wants turn into habits
(e) By making a table a carpenter creates which utility ?
(i) Place Utility (ii)Form utility
(iii) Time utility (iv)Service utility
(f) In economics price means :
(i) Value-in-use
(ii) Value-in exchange in terms of money
(iii) Amount of other commodities in exchange of a commodity.
(iv) utility
(g) Which of the following is not an economic goods ?
 (i) Self occupied house (ii) Piped water in town
(iii) Water in the river (iv) Economics book of Arts students
(h) When marginal utility is zero, total utility is :
(i) Nagative (ii) Zero
(iii) Maximum (iv) One
(i) The law of equimarginal utility is otherwise called :
(i) Law of substitution
(ii) Law of diminishing marginal utility
(iii) Law of demand
(iv) None of these
(j) The demand for necessaries is:
(i) Unitary elastic (ii) More elastic
(iii) Less elastic (iv) Zero elastic
(k) If total fixed cost is Rs.1,000/-, total variable cost is Rs. 800/- and total output
is 200 units, how much is the average cost?
(i) Rs. 1/- (ii) Rs. 2/- (iii) Rs. 9/- (iv)None of the above
(l) Economic cost is explicit cost plus :
(i) Variable Cost (ii) Marginal Cost
(iii) Average cost (iv) Implicit cost
(m)When Ac= Mc, Ac is
(i) Maximum (ii)Increases
(iii) Minimum (iv) Decreases
(n) Which of the following is a feature of perfect competition ?
(i) Single seller (ii) Product differentiation
(iii) Single price (iv) Restriction in entry
(o) If production increases in the short run, fixed cost :
(i) rises (ii) remains constant
(iii) falls (iv) Increases at an increasing rate
(p) In which forms of market, the number of sellers are large ?
(i) Monopoly (ii) Oligopoly
(iii) Perfect competition for each (iv) None of these
 (q) Which of the following is not a function of central bank ?
(i) Issue of notes (ii) Lender of last resort
(iii) Controller of credit (iv) Creation of credit
(r) Which of the following is the unit of account in India ?
(i) One rupee (ii) Ten rupees
(iii) Rupee (iv) Five hundred rupees
(s) On which type of deposits, commercial bankdoes not give any rate of
interest?
(i) Time deposit (ii) Current deposit
(iii) Savings bank deposit (iv) Recurring deposit
(t) In which year the Reserve Bank of India was established ?
(i) 1947 (ii) 1935 (iii) 1955 (iv) 1950
2. Write the correct answer choosing from multiple choices given under each
bit. [1×20=20]
(a) Who prints one rupee note ?
(i) Reserve Bank of India
(ii) State Bank of India
(iii) NABARD
(iv) Ministry of Finance, Government of India
(b) Which of the following is not near money ?
(i) Treasury bills (ii) Bills of exchange
(iii) Paper notes (iv) Bonds
(c) Which of the following is the most liquid asset of commercial banks?
(i) Cash at hand (ii) Investment
(iii) Loans and advances (iv) Discounting bills
(d) Which bank acts as the lender of last resort?
(i) Commercial Bank (ii) Central Bank
(iii) International Monetary Fund (iv) World Bank
(e) Which of the following is not included in the subject matter of macro
economics?
 (i) Income determination (ii) Aggregate demand
(iii) Inflation and deflation (iv) Functional distribution of income
(f) Which of the following is not fixed cost ?
(i) Cost of machine (ii) Expenditure on factory building
(iii) Salary of the Watchman (iv) Expenditure of raw-materials
(g) What type of utility is created by a lecturer ?
(i) Time utility (ii) Form utility
(iii) Service utility (iv) Place utility
(h) Under monopoly the AR curve is :
(i) Downward sloping (ii) Upward sloping
(iii) Parallel to 'X' axis ‘X’ (iv) Vertical to 'X' axis ‘X’
(i) In which market, price is same for all products ?
(i) Monopoly (ii) Perfect competition
(iii) Oligopoly (iv) Monopolistic competition
(j) Name the price prevailing in the long period :
(i) Market price (ii) Normal price
(iii) Short run price (iv) None of these
(k) Which of the following is studied in micro economics ?
(i) Theory of general price level
(ii) Theory of consumer behavior
(iii) Theory of income determination
(iv)Theory of economic growth
(l) Theory of economic growth There are two goods 'X' and 'Y'. Price of 'Y'
remaining constant, when the price of 'X' rises the quantity demanded of 'Y'
increases. 'X' and 'Y' are :
(i) Substitutes (ii) Complementary
(iii) Competitive (iv) Not related at all
(m)What is the total cost of producing 10 units of output if average fixed cost is
₹15/- and average variable cost is ₹20/- ?
(i)300 (ii) 350 (iii) 400 (iv) 450
 (n) What is the marginal cost of total cost of producing 100 units of output is 1000
and total cost of producing 101 units of output is 1120 ?
(i) 100 (ii) 120 (iii) 101 (iv) 220
(o) Under monopoly, AR:
(i) AR = MR (ii) AR > MR
(iii) AR < MR (iv) None of these
(p) Which of the following has 'derived demand'? '
(i) Iron ore (ii) Biscuit (iii) Tea (iv) Milk
(q) What type of wealth is ocean?
(i) National wealth (ii) Cosmopolitan wealth
(iii) Social wealth (iv) Title to wealth
(r) What is the total utility, if the marginal utility from three successive units of
orange consumed is 30, 25, 20 respectively?
(i) 30 (ii) 55 (iii) 75 (iv) 20
(s) What is the value of elasticity of demand if quantity demanded increases from
5 to 6 due to fall in price from 6 to 5 ?
(i) 0 (ii) 1 (iii) >1 (iv) <1
(t) What does the demand curve shifting to the left indicate ?
(i) Expansion of demand (ii) Contraction of demand
(iii) Increase in demand (iv) Decrease in demand

GROUP -B
3. Answer any five of the following questions within 30 words in each case,
[2x5=10]
(a) Write the meaning of economy
(b) What is meant by conventional necessaries ?
(c) Define Producers' goods.
(d) What is meant by national wealth ?
(e) What do you mean by elasticity of demand?
(f) What is time deposit ?
(g) What is meant by equilibrium price ?
 (h) What is money ?
4. Distinguish between any five of the following. Limit your answer to 50
words in each case : [3×5=15]
(a) Quantitative and Qualitative methods of credit control
(b) Current deposit and time deposit
(c) Market price and normal price
(d) Perfect competition and monopoly
(e) Marginal cost and average cost
(f) Short period and long period
(g) Change in demand and change in quantity demanded
(h) Free goods and economic goods
GROUP –C
Answer any three of the following questions: [5x3=15]
5. Explain the law of demand.
6. Describe the characteristics of human wants.
7. Discuss the law of variable proportions.
8. Describe the functions of money.
9. Explain how price is determined under perfect competition.
10. Analyse the factors determining price elasticity.of demand
 CHSE PAST YEAR QUESTIONS 2023
Business Economics
_______________________________________
GROUP-A
1. From the following alternatives given in each bit, write the correct answer
serially against each bit along with its serial number: [1×12 = 12]
(a) Motor car for a busy doctor is a :
(i) Necessary (ii) Comfort
(iii) Luxury (iv) None of these
(b) The goods having exchange value are known as :
(i) Free goods (ii) Unproductive goods
(iii) Economic goods (iv) None of these
(c) The goods which satisfy human wants indirectly are called:
(i) Public goods (ii) Consumers’ goods
(iii) Producers' goods (iv) Intermediate goods
(d) Health is not wealth because it has no :
(i) Scarcity (ii) Utility
(iii) Marketability (iv) None of these
(e) Destruction of utility is known as:
(i) Production (ii) Distribution
(iii) Consumption (iv) Division
(f) The demand for necessaries is :
(i) Elastic (ii) Inelastic
(iii) Unitary elastic (iv) Perfectly elastic
(g) Economic cost is explicit cost plus :
(i) Variable cost (ii) Marginal cost
(iii) Average cost (iv)Implicit cost
(h) What will happen to price, when demand increases but supply remains
constant:
 (i) Price remains constant (ii) Price increases
(iii) Price decreases (iv) None of these
(i) In the long-run
(i) All factors of production are variable
(ii) All factors of production are fixed
(iii) Some factors of production are fixed
(iv) Some factors of production are variable
(j) Costs which change when output changes are :
(i) Fixed cost (ii)Variable cost
(iii) Opportunity cost (iv) None of these
(k) Under perfect competition average revenue is equal to :
(i)Marginal revenue (ii) Marginal cost
(iii) Average cost (iv)None of these
(l) Which bank creates credit?
(i) Central Bank (ii) Rural Bank
(iii) Commercial Bank (iv) Cooperative Bank

2. Examine the correctness of the following statements. Correct the incorrect

sentences, without changing O the portions underlined. [1x12=12]
(a) The law of equi marginal utility is otherwise known as the law of substitution.
(b) Land is a variable factor.
(c) Money cost is pain and sacrifices undergone during the process of production.
(d) The shape of Unitary elastic demand curve is Vertical.
(e) Cash at hand is the most liquid asset of commercial banks.
(f) Salary of the watchman is variable.cost.
(g) Reserve Bank of India was established in the year 1955.
(h) When output increases, total fixed cost remains same.
(i) Macro economics is the study of individual units.
(j) Surplus budget is more effective to control inflation.
(k) In monopolistic competition there is a single seller and large no. of buyers.
 (l) In a balanced budget, government receipts are greater than government
expenditure.

3. Answer any ten of the following questions within 30 words in each case :
[2×10=20]
(a) What do you mean by service utility ?
(b) What are the central problems of an economy ?
(c) What are conventional necessary goods ?
(d) What do you mean by Giffen goods ?
(e) What is price elasticity of demand ?
(f) What is short run production function ?
(g) What do you mean by implicit cost ?
(h) What is monopolistic competition ?
(i) What is unitary elastic demand ?
(j) What do you mean by Average Variable cost ?
(k) What is disposable personal income ?
(l) What is Unbalanced budget ?
(m)What do you mean by Gross Domestic Product ?
4. Distinguish between any four of the following. Limit your answer to 50
words in each case : [3×4= 12]
(a) Value and price
(b) Wealth and capital
(c) Fixed Cost and Variable Cost
(d) Accounting Cost and Economic Cost
(e) Increasing returns and diminishing returns
(f) Public finance and private finance

GROUP-C
Answer any three questions of the following: [8x3 = 24]
5. Explain the law of equimarginal utility.
6. Discuss the factors influencing demand for a commodity.
7. Discuss the functions of Central Bank.
8. Explain how price is determined under perfect competition.
9. What is budget? Discuss the objectives of budget.
 CHSE PAST YEAR QUESTIONS 2024
Business Economics
_______________________________________
GROUP-A
1. From the following alternatives given in each bit, write the correct answer
serially against each bit along with its serial number: [1×12 = 12]
(a) Economics as defined by Adam Smith is a science of :
(i) Welfare (ii) Wealth
(iii) Scarcity (iv) Growth
(b) When marginal utility is zero, total utility is :
(i) Maximum (ii) Lowest
(iii) Negative (iv) Zero
(c) A perfectly elastic demand curve is :
(i) Downward sloping (ii) Upward sloping
(iii) Vertical (iv) Horizontal
(d) Which factor of production can be varied in the lung-run ?
(i) Fixed factor (ii) Variable factor
(iii) Both (i) and (ii) (iv) None of these
(e) Which one of the following is a variable cost ?
(i) Cost of factory tools
(ii) Provident fund contribution of employees
(iii) Salary of the Chief Manager
(iv) None of these
(f) When production increases Total Fixed Cost (TFC) :
(i) Decreases (ii) Remains unchanged
(iii) Increases (iv) None of these
(g) Which one of the following is not a feature of Perfectly Competitive Market ?
(i) A large number of buyers (ii) A single producer
(iii) Homogeneous product (iv) Free entry
 (h) Which one of the following is a part of Macro Economics ?
(i) Per capita expenditure (ii) Household income
(iii) National income (iv) All of these
(i) Which of the following items are not included in National income?
(i) Intermediate goods (ii) Transfer Payments
(iii) Windfall gain (iv) All of these
(j) GNP at market price is equal to GDP at market price, when :
(i) (X – M + R - P) is negative (ii) (X – M + R – P) is positive
(iii) (X – M + R – P) is zero (iv) None of these
(k) Money is used as a unit of measurement because of which function?
(i) Medium of exchange (ii) A standard of deferred payment
(iii) A measure of value (iv) A store of value
(l) What type of budget is appropriate for controlling inflation?
(i) Deficit budget (ii) Surplus budget
(iii) Balanced budget (iv) None of these

2. Examine the correctness of the following statements. Correct the incorrect

sentences without changing the underlined portions: [1x12 = 12]
(a) Lighthouse is a private goods.
(b) The demand for necessary goods is highly elastic.
(c) For a change in price of a goods, there is a change in demand.
(d) In the short-run all factors of production are variable.
(e) Payments for raw materials of a production process are variable costs.
(f) A factory buiding used for production is an example of variable factor.
(g) If there is an increase in price of a good, the quantity supplied of that good
decreases.
(h) In a Monopolistic market Average Revenue (AR) is equal to Marginal Revenue
(MR).
(i) Personal income is less than disposable income.
(j) Savings bank deposits carry highest rate of interest.
(k) Cooperative bank acts as a banker's bank.
 (l) Profit is the most important motive of Public Finance.
GROUP-B
3. Answer any ten questions of the following within 30 words each [2×10 = 20]
(a) What do you mean by Micro Economics ?
(b) Why the voice of Lata Mangeshkar is not wealth ?
(c) What do you mean by ‘Unlimited wants' ?
(d) What do you mean by value and price of a commodity ?
(e) What is Average Product (AP) ?
(f) What is point of Inflexion ?
(g) What is real cost ?
(h) What is price discrimination ?
(i) What is Average Fixed Cost (AFC) ?
(j) What are included in subject matter of macroeconomics ?
(k) What is GNP at factor cost ?
4. Distinguish between any four of the following. Limit your answer to 50
words in each case : [3×4= 12]
(a) Perfectly elastic demand and Perfectly inelastic demand
(b) Average revenue and Marginal revenue
(c) Average Cost and Marginal Cost
(d) Monopoly market and Oligopoly market
(e) Recurring deposits and Fixed deposits
(f) Balanced budget and Unbalanced budget

GROUP-C
Answer any three questions of the following: [8x3 = 24]

5. State and explain the Law of Demand.

6. Analyse the Law of Variable Proportions. What are its limitations?
7. What do you mean by Monopoly? Discuss its features.
8. Analyse the simple Keynesian Theory of Income Determination.
9. Explain the functions of a Commercial Bank.
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