Nirmala Memorial Foundation College of Commerce and Science

Std: S.Y.J.C COMMERCE

Subject : Economics

QUESTION BANK
Q.1 (A)

Q.1 (B)

Fill in the blanks with appropriate words from the brackets:(1) Economics is a _________ science.
(Natural, Social, Ethical, Technical)
(2) If the price of the inferior goods falls, the demand for them will _____________.
(increase, decrease, remain constant, become zero)
(3) Demand for safety pins is _______________.
(elastic, inelastic, perfectly elastic, unitary elastic)
(4) Transfer of value is a ______________ function of money.
(primary, secondary, contingent, original)
(5) Monopolist means a ________________.
(single seller, several sellers, single buyer, several buyers)
(6) _____________ studies about National Income.
(Microeconomics, Macroeconomics, Statistics, Physics)
(7) National Income is a _______________ concept.
(stock, flow, micro, non- monetary)
(8) ___________ is necessary for capital formation.
(Air, Labour, Saving, Organising)
(9) The nature of the market of barter system is ________________.
(wide, limited, personal, social)
(10)In India, paper currency is known as ______________
(optional money, legal tender money, cumulative money, lender money)
(11)Commercial banks create _____________.
(paper money, metallic money, commodity money, credit money)
(12)To increase credit creation, Central Bank _____________ the debentures.
(purchases, sells, borrows, stocks)
(13)In general, the duration of budget is of ___________ months.
(twelve, six, nine, fifteen)
(14)To control inflation, there is need of ___________ bank.
(Central, State level, Local, Foreign)
(15)Demand of several consumers is called _____________ demand.
(Individual, Joint, Market, Independent)
Match the following:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)

Q.1 (C)

Group A
Consumption function
Current Deposits
Government Expenditure
Inelastic Demand
Price and Demand
Elasticity of Demand
Aggregate Demand
Propensity to consume
Giving loans
Father of Economics
Service Utility
Tea and Coffee
Railway
Deficit budget
Value of Money

(05)

(05)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)

Group B
Expenditure on defence
Inverse Relationship
Electricity
High rate of Interest
Less rate of Interest
Average propensity to consume
Salt
Dr. Marshall
Lord Keynes
Commercial Bank
Adam Smith
Prof. Robbins
Consumption
Equal relation
Not steady
Knowledge by teacher
Substitute goods
Public Monopoly
Expenditure > Revenue
Expenditure = Revenue
Complimentary goods.

State whether the following statements are True or False:(1) Micro Economics theory assumes full employment.
(2) Utility is the basis of Demand.
(3) When Demand increases, the demand curve shifts to the left.
(4) Perfectly inelastic demand curve is parallel to the X axis.
(5) The supply of agricultural commodity is relatively elastic.
(6) In a monopoly market, firm and industry are the same.

(06)

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(7) The scope of macro economics is wide.

(8) Financial year in India is leap year.
(9) At Breakeven point, Consumption is equal to income and expenditure.
(10)A cheque is a fiat money.
(11)Commercial banks are backbone of modern economy.
(12)Rate of Interest on fixed deposit is high
(13)The main objective of Central bank is to earn profit.
(14)Tax is a major source of revenue of government.
(15)A Central Bank creates credit money.
Q.2 (A)

Define or Explain the concepts:- (Any 3)

(1) Partial Equilibrium
(2) Form Utility
(3) Demand
(4) Total Revenue
(5) Stock
(6) Price Discrimination

(06)
(7)
(8)
(9)
(10)
(11)
(12)

Depreciation
Autonomous Consumption
Legal tender money
Discounting of bills
Bank rate
Budget

Q.2 (B)

Give reasons or Explain:- (Any 3/6)

(1) The demand of luxury commodity is elastic.
(2) Utility is a subjective concept.
(3) All desire are not demand.
(4) Micro economic theories are based on certain assumptions.
(5) Stock can exceed supply.
(6) Price discrimination is possible under monopoly.
(7) Labour cannot be stored.
(8) Macro economics is the study of Aggregates.
(9) Old age pension is transfer income.
(10)There are many subjective factors determining consumption function.
(11)Overdraft facility is provided to current account holders.
(12)Government revenue is more than Government expenditure.

(06)

Q.3 (A)

Distinguish between:- (Any 3/6)

(1) Utility and Usefulness
(8) Direct tax and Indirect tax
(2) Marginal Utility and Total Utility
(9) Deficit budget and Surplus Budget
(3) Individual supply and Market supply
(10)Relatively elastic demand and Relatively inelastic demand
(4) Demand curve and Supply curve
(11)Joint Demand and Composite demand
(5) Income method and Expenditure method
(12)Labour and Entrepreneur.
(6) Average propensity to consume and Marginal propensity to consume.
(7) Cheque and Overdraft

(06)

Q.3 (B)

Write explanatory notes:- (Any 2/4)

(1) Paradox of value
(2) Types of Monopoly
(3) Geometric method of measuring elasticity of demand
(4) Change in supply
(5) Qualities of an entrepreneur
(6) Circular flow of National Income

(06)

Q.4

Q.5

(7)
(8)
(9)
(10)
(11)

Effective demand
Secondary functions of money
Giffens Paradox
Features of Land
Government Expenditure

Answer the following:- (Any 3/6)

(1) Explain the features of Micro economics
(2) Explain the Income method of measuring national income
(3) What are the different types of loans provided by Commercial Bank.
(4) Explain the concept of Total cost, Average cost and Marginal cost.
(5) What are the assumption of law of supply
(6) What are the features of Labour.
(7) Write the characteristics of Capital.
(8) What are the main determinants of Aggregate supply?
(9) State the primary functions of money.
(10)Explain the concept of saving function.
(11)State the components of Government Budget?
Do you agree or disagree with the following statement? Give reasons (Any 3/6)
(1) When Total Utility is maximum, marginal utility is zero.
(2) The supply curve slopes downwards from left to right.
(3) Micro economics is different from macro economics
(4) Prefect competition means monopolistic competition.
(5) Price is the only determinant of supply
(6) Unpaid services are included in national Income
(7) Supply curve of labour is backward bending.
(8) At breakeven point, consumption is equal to income.

(12)

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(9) Accepting deposits is the only primary function of Commercial Bank.

Q.6

Answer in detail:- (Any 2/4)

(1) State and explain the law of demand and its exceptions.
(2) State and explain the law of diminishing marginal utility. Explain its assumptions.
(3) Explain the functions of Central Bank.
(4) Explain the equilibrium between aggregate demand and aggregate supply.
(5) Explain the various types of price elasticity of demand.
(6) State the features of Macro economics.
(7) What is prefect competition? Explain the price determination under perfect competition.
(8) Explain the process of credit creation by commercial bank.

(16)

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