What is ‘elasticity of demand’? Explain the factors determining elasticity of demand.
Concept: Elasticity of Demand
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What is meant by production function?
Concept: Meaning of Production Function
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Explain discounting bills of exchange as one of the functions of the banks.
Concept: Function of Commercial Banks
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Discuss the relationship between the income of the consumer and demand for a commodity with respect to normal goods, inferior goods, and necessities.
Concept: Demand
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Draw diagrams to show the elasticity of demand when it is:
(i) Greater than one
(ii) Less than one
(iii) Unity
Concept: Elasticity of Demand
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Show with the help of diagrams, the effect on equilibrium price and quantity when:
There is a fall in the price of substitute goods.
Concept: Market Equilibrium
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Discuss the various components of the current account of the balance of payment.
Concept: Concept of Balance of Payments Account
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With the help of a diagram, show the circular flow of income in a two-sector model with Savings and Investment.
Concept: Circular Flow of Income (Two Sector Model)
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Show with the help of diagrams, the effect on equilibrium price and quantity when:
There is a rise in the prices of inputs.
Concept: Market Equilibrium
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Show with the help of a diagram, how a perfectly competitive firm earns normal profit in short-run equilibrium.
Concept: Features of Perfect Competition
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How can gross domestic product at factor cost be obtained from the gross national product at market price?
Concept: Gross and Net Domestic Product (GDP and NDP)
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Discuss the relationship between the income of the consumer and demand for a commodity with respect to normal goods, inferior goods, and necessities.
Concept: Demand
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Explain any two secondary functions of money.
Concept: Function of Money - Secondary Functions
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From the follow ing data, calculate GNPMP and NNPFC by Expenditure Method.
| (i) Mixed-income of self-employed | 450 crores |
| (ii) Compensation of employees | 550 crores |
| (iii) Private final consumption expenditure | 1000 crores |
| (iv) Net factor income from abroad | -20 crores |
| (v) Net indirect taxes | 150 crores |
| (vi) Consumption of fixed capital | 170 crores |
| (vii) Net domestic capital formation | 380 crores |
| (viii) Net exports | -30 crores |
| (ix) Profits | 400 crores |
| (x) Rent | 150 crores |
| (xi) Interest | 200 crores |
| (xii) Government final consumption expenditure | 550 crores |
Concept: Methods of Calculating National Income - Expenditure Method
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Name the market where average revenue is equal to marginal revenue. Give a reason for your answer.
Concept: Total, Average and Marginal Revenue
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Explain the concept of deficient demand with the help of aggregate demand and aggregate supply curves. Discuss one physical and one monetary measure to correct it.
Concept: Concept of Aggregate Demand and Aggregate Supply
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Highlight two differences between sales tax and income tax.
Concept: Direct and Indirect Tax
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What is meant by
(i) Union budget
(ii) State budget
Concept: Types of Budget - Union
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What is meant by a propensity to consume?
Concept: Consumption Function and Propensity to Save
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Differentiate between the extension of demand and an increase in demand, using diagrams.
Concept: Movement Along and Shifts in the Demand Curve
