SCHOLAR’S ACADEMY
Prelim Exam
Time: 3 Hours Marks: 80
Subject: Economics Set: B
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Q. 1. (A) Choose the correct options: (5) [20]
1) Concepts studied under Micro economics.
a) National income b) General price level c) Factor pricing d) Product pricing
Options:
i) b and c ii) b, c and d iii) a, b and c iv) c and d
2) Statements indicating consumer equilibrium:
a)MU is greater than price b)MU is equal to price
c) MU is less than price d)Price is less than one
Options:
i) a and b ii) a, b, c and d iii) a, b and c iv) only b
3) Homogeneous product is a feature of this market.
a) Monopoly b) Monopolistic competition
c) Perfect competition d) Oligopoly
Options :
1) c and d 2) a, b and c
3) a, c and d 4) only c
4) Statements that is incorrect in relation to index numbers.
a) Index number is a geographical tool.
b) Index numbers measure changes in the air pressure.
c) Index numbers measure relative changes in an economic variable.
d) Index numbers are specialized averages.
Options :1) c and d 2) a and b 3) b and c 4) a and d
5) Trends shown by Public expenditure of any Government shows following trend.
a)Constant b) Increasing c)Decreasing d) Fluctuating
Options :
1) only a 2) only b 3) only c 4) only d
(B) Find the odd word out: (5)
(1) Teacher, Singer, Dentist, Chair
(2) Features of monopoly: Price maker, Entry barriers, Many sellers, Lack of substitutes.
(3) Fees, Gifts, Grants, GST.
(4) Types of Bank Accounts: Saving a/c, D-mat a/c, Recurring a/c, Current a/c
(5) A commodity Exported by India: Gold, Readymade garments, Tea, Rice.
(C) Give an economic term: (5)
1) Graphical representation of demand schedule…………
2) Degree of responsiveness of a change of quantity demanded of a good to a change in its
price.
3) An index number measuring the general changes in the labour productivity over a period
of time.
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4) The difference between value of exports and imports during a year.
5) Financial transactions made for the maximum benefits of the society.
D) Complete the correlation: (5)
1) Micro economics: Tree: : Macro economics :…………..
2) Salt: ………… : : Diamond: Prestige Goods
3) Perfectly elastic demand: Ed = ∞ : : …………… : Ed=0
4) Demand curve :……………. :: Supply curve : Upward
5) Price Index : Inflation :: ………….. : Agricultural production
Q. 2. (A) Identify and explain the concepts from the given illustrations:
(Any THREE) (6)
1) Due to the floods in the village, the demand for various commodities declined even
though prices remained constant.
2) Indian railway has decided to levy higher fares on the new route from 12 noon to 8
pm and lower fares from 8 am to 12 noon.
3) Rajendra has a total stock of 500 gel pens in his shop which includes the 200 gel pens
produced in the previous financial year.
4) Raghu’s father regularly invests his money in stocks and bonds.
5) England imported cotton from India, made readymade garments from it and sold them
to Malaysia.
(B) Distinguish between: (Any THREE) (6)
1) Balance of payments and Balance of trade.
2) Internal debt and External debt.
3) Perfect competition and monopoly.
4) Organized sector and Unorganized sector of money market..
5) Perfectly elastic demand and Perfectly inelastic demand..
Q. 3. Answer the following questions in brief: (Any THREE) [12]
1) Explain the functions of commercial bank.
2) Explain the scope of Macro economics.
3) Explain the significance of index numbers in economics.
4) Explain the two sector model of circular flow of national income..
5) Explain types of taxes.
Q. 4. State with reasons whether you agree or disagree with the following statements:
(Any THREE) [12]
1) Macro economics deals with the study of individual behavior.
2) There are many theoretical difficulties in the measurement of national income.
3) The goods and services tax (GST) has replaced almost all indirect taxes in India..
4) Trade is an engine of growth for an economy.
5) Price is the only determinant of demand.
Q. 5. Study the following table, diagram, passage and answer the questions given below:
(Any TWO) [8]
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Q. 6. Answer the following questions in detail: (Any TWO) [16]
1) State and explain law of supply with assumptions.
2) State and explain the law of diminishing marginal utility with exceptions..
3) Explain the total outlay method and ratio method of measuring elasticity of
demand?
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