09 MARCH 2012

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

(1)  Economics is a social science.

            [natural / social / ethical / technical].

(2) price discrimination appears in monopoly market.

            [ product differentiation / price discrimination / large number of sellers / free entry].

(3)  Stock of labour is not possible.

            [ capital / land / labour / money].

(4)  Transfer of value is a secondary function of money.

            [ primary / secondary / contingent / original].

(5) bank rate is a traditional weapon of credit control.

            [bank rate / direct action / moral persuasion / issue of direction].

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

(1) Total utility increases at increasing rare. [FALSE]

(2).Demand increases, when the price decreases. [FALSE]
(3).Demand for durable goods tend to be elastic. [TRUE]
(4).Law of demand is applicable to prestigious goods. [FALSE]
(5).Macro economics concentrates on the study of the whole economy. [TRUE]
(C) Choose the correct alternative                                                                                       (5)

(1) Marginal utility of money can never be (a) zero.

            (a) zero                                                (b).falling
            (c) constant                                         (d).average
(2) Demand for luxury goods is (a) elastic.

            (a) elastic.                                            (b).inelastic
            (c).unitary                                            (d).perfectly elastic
(3) With increase in income saving (b) increases

            (a).decreases                                        (b) increases
            (c).remains constant                            (d).is not variable
(4) The cheque which is useful in travelling is (a) traveller’s cheque.

            (a) traveller’s cheque                           (b)  crossed cheque
            (c) simple cheque                                (d).overdraft
(5).When expenditure equals with receipts it is (a).balanced budget.

            (a).balanced                                         (b).surplus
            (c).deficit                                            (d) family

.

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

                        Group “A”                                         Group “B”.

(1) price and demand                                                  (f) Inverse relationship
(2) inelastic demand                                                    (e) Salt
(3) Government expenditure                                       (a) Expenditure on defence
(4) Consumption function                                           (b) Average propensity to consume
(5) Current deposits                                                    (c) Less rate of interest

                                                                                    (d) High rate of interest

                                                                                    (g) Electricity