HIGHER SECONDARY MODEL EXAMINATION

HSE II

Part III ECONOMICS

Score : 80 Time : 21/2 hrs Cool off Time : 15 mnts

General Instruction There is a cool off time of 15 minutes in additional to the writing time 2 hrs. You are not allowed to write your answers nor to discuss anything with others during the cool off time. Use the cool off time to get familiar with questions and to plan your answers. Read questions carefully before answering

1.

Match the items in columns B and C with A A Alfred Marshall J.M. Keynes Adam Smith B An Enquiry into the Nature and causes of the Wealth of Nations Principles of Economics The General Theory of Employment Interest and Money C 1936 1776 1890 (3)

2.

Classify the following items under suitable heads Income Tax, Fees, Excise Duty, Fine, Corporation Tax, Divident (3) (2)

3. 4.

What is the short run supply curve of a firm show it diagrammatically? Suppose the demand and supply curves of a product are given by ED = 250-P. ES = 150 + P

Find the equilibrium price and quantity 5. 6. 7. Do you know any commodity on which price floor is imposed in Kerala. What will be the consequence of price floor. Show it diagrammatically. Pick the odd one and justify your answer wage for a Worker, National Income, Price level, Inflation. List the drawback of barter system

(4) (3) (1) (2)

2 8. Classify the following flows into real and money flows. a) Flow of factor services. b) Flow of factor rewards. c) Flow of finished goods. d) Flow of consumption and investment expenditure. e) Flow of subsidies and Taxes. f) Flow of export goods. 9. (3)

An economy produces two goods wheat and rice. The following table summaries its production possibilities. Calculate the marginal opportunity costs of wheat at various combinations Production Possibilities A B C D E F Wheat (in quintals) 0 1 2 3 4 5 Rice (in quintals) 20 18 15 11 6 0 (3) MOC

10. Match column A with B Relative size of Estimate Revenue < Expenditure Revenue = Expenditure Revenue > Expenditure Type of Budget Surplus Deficit Balanced (3) 11. What do you mean by an inferior good. Give some examples 12. What do you mean by dirty floating ? 13. Raju wants to buy book and pen. The price of the book is Rs. 10 and price of pen is Rs. 5. His income is Rs. 100. (i) Write down the equation of the budget line (ii) How many books can Raju buy if he spends his entire income on book (iii) What is the slope of the budget line (1) (1) (1) (2) (2)

14. Find the odd one and justify you answer Inductive method, value added method, income method, expenditure method 15. The market price of a good changes from Rs 5 to Rs. 10. As a result the quantity supplied by a firm increases from 50 to 65 units. Find the price elasticity of firms supply curve 16. Classify the following variables under suitable headings. Reat, Salaries to permanent employees, interest on capital, electricity charge, wages to casual labourers 17. You have conducted a field visit to SBT in your locality. Prepare a field study report. (Hint: Report should have a format. It should contain major functions of a commercial bank) 18. (8) (3) (3) (1)

The following table shows the TC schedule of a firm. What is the TFC Schedule of this Firm. (a) Calculate TVC, AFC, AVC, SAC and SMC of the firm (b) Diagramatically represent TFC, TVC and TC Out put 0 1 2 3 4 5 6 TC 50 70 85 95 110 130 160 (3) (3)

19. Suppose there are 5 consumers for a good. They have identical demand functions d1 (P) = 20 3P for any price less than or equal to 6 and d1 (P) = 0 at any price greater than 15. What is the market demand function. 20. (5)

In the Keynesian System the Equilibrium level of output and income are determined by the level of AD. With the help of diagram explain how equilibrium output and AD in the fixed price model is determined? (8)

21.

The following table shows the TR and TC schedules of a competitive firm. Calculate profit at each output level. Determine the market price of the good. Quantity sold 0 1 2 3 4 5 6 7 TR (RS 0 10 20 30 40 50 60 70 TC 10 13 18 26 36 45 50 54 (3)

22.

Fill the missing portion a. GNP MP b. NNP FC c. GNP FC = GNP FC + __________ = _________ + Net factor Income from Abroad = NDP FC + __________

d. NNP FC + depreciation = __________ e. NDP FC + Net indirect Taxes = ___________ 23. MPC = 0.8. Domestic autonomous demand increases by 100. What will be the increase in output ? 24. Classify the following components into visible and invisible heads Shipping Services, Machinery, Insurance, Textiles (2) (5) (2)

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