HSE II

ECONOMICS
(PERINTHALMANNA SUB DISTRICT)

Marks:80

1. What is the difference between micro economics and macro economics (1) 2. Distinguish between stock and flow (2) 3. From the following data, calculate Personnel Income and Personal Disposable income Rs (Crores) a) Net Domestic Product at Factor Cost 8,000 b) Net Factor Income from abroad 200 c) Undistributed profit 1,000 d) Corporate Tax 500 e) Interest received by households 1,500 f) Interest paid by households 1,200 g) Transfer Income 300 h) Personal Tax 500 (5) 4. Suppose a bond promises Rs.500 at the end of two years with no intermediate return. If the rate of interest is 5% per annum what is the price of the bond? (4) 5. What are the instruments of monetary policy of RBI? How does RBI stabilize money supply against exogenous shocks? (4) 6. What is effective demand? How will you derive the autonomous expenditure multiplier When price of final goods and the rate of interest are given? (3) 7. Explain Paradox of Thrift (1) 8. Suppose marginal propensity to consume is 0.75 and there is a 20% proportional income tax. Find the change in equilibrium income for the following a) Govt. purchases increase by 20 b) Transfers decrease by 20 (3) 9. The fiscal deficit gives the borrowing requirement of Government Elucidate (2) 10. Distinguish between the nominal exchange rate and real exchange rate. If you were to decide Whether to buy domestic goods or foreign goods, which rare would be more relevant? Explain (3) 11. Why is the open economy autonomous expenditure multiplier smaller than the closed economy one? (2) 12 What is a production possibility frontier (2) 13 Discuss the central problems of an economy (3) 14. What do you mean by a) Normal goods b) Complements c) Inferior goods d) Substitute goods (4) 15. Explain price elasticity of demand (2) 16) Explain the relationship between marginal product and the total product of an input (4) 17) Let the production function of a firm be Q=5L

Find out the maximum possible output that the firm can produce with 100 units of L and 100 units of K (4) 18. What are the characteristics of a perfectly competitive market? (4)

19. Compute the TR, MR, and AR schedules in the following table. Market Price of each unit of good is Rs.10 Quantity Sold 0 1 2 3 4 5 6 Total Revenue Marginal Revenue Average Revenue

20. Explain market equilibrium 21. Prepare a seminar paper on methods of calculation national income 22. What do you mean by price discrimination 23 Explain the important components of Government Revenue 24. Distinguish between balance of trade and balance of payment`

(8) (3) (8) (2) (4) (2)

Uploaded by: Jayanarayanan.V.T., HSST in Economics, GHSS Pulamanthole, Malappuram