SEPETEMBER 2012

QI.(A) Fill in the blanks with appropriate alternatives given in the bracket : (5) (20)

(1) Factors of production have indirect demand

(direct / indirect / joint / composite)

(2) Demand for match box is inelastic.

(elastic / inelastic / perfectly elastic / unitary elastic)

(3) Consumption expenditure at zero income level is called autonomous .consumption

(autonomous / induced / capital / revenue)

(4) Marginal propensity to consume is always less than one.

(zero / one / less than one / more than one)

(5) The rate of interest charged by the central bank on loan given is called bank rate.

(bank rate / concessional rate / exchange rate / tax rate)

(B) State whether the following statements are TRUE or FALSE. (5).

(1) When marginal utility is maximum total utility is zero [FALSE].

(2).A government budget is prepared for a period of more than one year [FALSE].
(3).A mere desire does not constitute demand [TRUE].
(4).Reserve bank of India is the central bank of India [TRUE].
(5).Savings can be negative [TRUE].
(C) Choose the correct alternative : (5)

(1) Utility derieved from the additional unit of commodity is called (c).marginal utility

(a) total utility. (b).average utility.
(c).marginal utility (d).zero utility.
(2) The concept of Macro economic is made popular by (c).J M Keynes

(a).Dr Marshall (b).Adam Smith
(c).J M Keynes (d).Ricardo
(3) Risks and uncertainty bearing is an important function of (d).entrepreneur.

(a).land (b) labour
(c).capital (d).entrepreneur
(4) When income rises, demand (a) increases

(a) increases (b).expands
(c).decreases (d).contracts
(5).When the demand is perfectly inelastic, price elasticity of demand is (d)zero.

(a).high (b).low
(c).one (d)zero

(D) Match the following Group A with Group B. (5)

Group A Group B.

(a) Monopoly market (7) Price discrimination
(b) Microeconomics (6) Individual unit
(c) Perfectly elastic demand (1) Infinite
(d) Standard money (2) Face value and intrinsic value are equal
(e) Note issue (3) Central bank

(4) Many sellers

(5) Commercial bank

(8) Fifty paise coin