Economic Model Question Paper 2021 [Sample Paper]

Economic Model Question Paper 2021 [Sample Paper].png

Economic Model Question Paper 2021 [Sample Paper]

1.A Choose the correct option: 5

  1. MU of the commodity becomes negative when TU of a commodity is ………  a) rising b) constant       c) falling          d) zero
  2. The relationship between demand for a good and price of its substitute is…….. a) direct b) inverse   c)        no effect    d)   can be direct and inverse
  3. Price elasticity of demand on a linear demand curve at the X axis is…………… a) zero b) one       c) infinity    d) less than one
  4. When supply curve is upward sloping, its slope is…………..  a) positive b)        negative  c)      first positive than negative   d)         zero
  5. The branch of economics that deals with the allocation of resources.   a) Micro economics b) Macroeconomics  c) Econometrics     d) None of these

Options: 1) a, b and c  2) a and b 3) only a     4) None of these

 Q.1 C. Give economic terms:

  1. A situation where more quantity is demanded at a lower price ………
  2. Revenue per unit of output sold.
  3. Degree of responsiveness of quantity demanded to change in income
  4. The cost incurred on fixed factors.
  5. Degree of responsiveness of a change in quantity demanded of one commodity due to change in the price of another

Q.1.D. Assertion and reasoning questions

Assertion (A) : Elasticity of demand explains that one variable is influenced by another variable.

Reasoning (R) :  The  concept  of  elasticity  of demand indicates the effect of price and changes in other factors on demand.

Options :

  • (A) is True, but (R) is False
  • (A) is False, but (R) is True
  • Both (A) and (R) are True and (R) is the correct explanation of (A)
  • Both (A) and (R) are True and (R) is not the correct explanation of (A)

Assertion (A) : Money market economizes use of cash

Reasoning (R) : Money market deals with financial instruments that are close substitutes of money

Options : 1) (A) is True, but (R) is False

(A) is False, but (R) is True

Both (A) and (R) are True and (R) is the correct explanation of (A)

Both (A) and (R) are True and (R) is not the correct explanation of (A)

Assertion (A) : Degree of price elasticity is less than one in case of relatively inelastic

Reasoning (R) : Change in demand is less then the change in price.

Options : 1) (A) is True, but (R) is False

  • (A) is False, but (R) is True
  • Both (A) and (R) are True and (R) is the correct explanation of (A)
  • Both (A) and (R) are True and (R) is not the correct explanation of (A)

 Q.2 A. Identify and Explain the Concept (any 3)  [6]

  1. Gauri collected the information about the income of a particular firm.
  2. Salma purchased sweater for her father in winter season.
  3. ABC bank provides d-mat facility, safe deposit lockers, internet banking facilities to its
  4. Japan sells smart phones to
  5. Number of firms producing identical

Q.2 B. Distinguish between (any 3) [6]

  1. Microeconomics and macroeconomics
  2. Total Utility and Marginal Utility
  3. Expansion of demand and Contraction of demand
  4. Perfectly elastic demand and Perfectly inelastic demand
  5. Stock and Supply.
  6. Internal trade and International

Q3. Answer the following questions (any3) [12]

  1. Explain the features of Micro economics.
  2. Explain non-tax sources of revenue of the
  3. Explain the functions of commercial
  4. Features of monopoly
  5. Types of utility

Q4. State with reasons whether you agree or disagree with the following statements (any3) [12]

  1. The scope of microeconomics is unlimited.
  2. Price is the only determinant of demand.
  3. Fines and penalties are a major source of revenue for the Government.
  4. Foreign trade leads to division of labour and specialization at world
  5. The is no relationship between total utility and marginal utility

Q5. Study the following table, figure, passage and answer the questions given below it. (any2) [8]

Unit of a commodity TU units MU units
1 6 6
2 11 5
3 15 4
4 15 0
5 14 –1
  • Draw total utility curve and marginal utility curve.
  • a) When total utility is maximum marginal utility is
  1. b) When total utility falls, marginal utility becomes
Quantity demanded
Price per kg. in ` Consumer A Consumer B Consumer C Market demand (in kgs) (A+B+C)
25 16 15 12  
30 12 11 10  
35 10 09 08  
40 08 06 04  
  1. Complete the market demand
  2. Draw market demand carve based on above-market demand

 

 6. Answer in detail (any2) [16]

  1. State and explain the law of diminishing marginal utility with exceptions.
  2. What is the Law of Demand? States the Exceptions to the law of demand
  3. What is the elasticity of demand? Explain the types of price elasticity of demand.