Академический Документы
Профессиональный Документы
Культура Документы
Part A (2 MARKS)
1. Define Economics.
Economics is the study of how individuals and societies choose to use the scarce resources that nature and
previous generations have provided.
3. Brief on externalities.
An externality refers to the by-product of a transaction that affects someone not immediately
involved in the transaction.
What to produce?
How to produce?
For whom to produce?
When the impact on the bystander is beneficial, the externality is called a positive externality.
Immunizations
Restored historic buildings
Research into new technologies
8. What do you understand by Productive efficiency?
A situation in which an economy cannot produce more of one good with out producing less of another
good; this implies that the economy is on producing possibility frontier.
The production possibility frontier (PPF) represents the point at which an economy is most
efficiently producing its goods and services and, therefore, allocating its resources in the best way possible.
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Capitalist economy is that economy in which ownership of means of production and property is
vested in private hands. The basic economic problems are solved with the help of price mechanism.
17. List out the things that are elements of economic growth?
Human resources, Natural resources, Capital formation, technological change and innovation.
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A positive externality is that it enhances labour participation, and therefore reduces demand for
social security provisions, however a negative externality is that it hinders integration of minority groups in
the society which will eventually cause these members of minority groups to be less productive.
4. How do markets solve the three economic problems? Explain with suitable examples.
6. As an economist how will you plan for productive efficiency economic efficiency
9. Discuss the three fundamental economic problems and suggest suitable measures to overcome
these problems.
10. Enumerate the economic role of Government and Markets. Examine their role in the present
economy scenario
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UNIT-II
Part A (2 MARKS)
1. Define Market.
2. Market is the place where the interaction between buyers and sellers happen and with that
interaction there is every possibility of a positive trade.
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A negative demand occours when an individual or firm making a decision does not have to pay the
full cost of the decision .
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Price of the commodity, Income of the consumer, Tastes and preferences, Prices of related goods,
Advertisement and sales propaganda, consumers expectation, growth of population, wather conditions, tax
rate, availability of credit, pattern of saving, circulation of money.
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Under utilisation of fixed factors, Indivisibility of factors, specialisation and division of labour.
1. Explain returns to scale and its types. What are the uses of returns to scale?
(ii) Elucidate the factors determine the demand for a commodity with suitable examples.
6. (i)Explain elasticity of demand and supply. Critically evaluate market equilibrium and consumer
equilibrium
7. Discuss about analysis of short-run and long-run production function. What is the reaction
UNIT-III
Part A (2 MARKS)
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1. What are the components of product market?
Gross production, Buyers and sellers, Household consumption, Business investment, Government
purchases, Foreign exports, domestic business production, foreign imports.
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11. What do you mean by price leadership?
The strategy in which price haves higher command over the quantity demanded. Price remains stable
and thereoff, a great shift in the demand is marked by the price by itself. So when the total demand
and supply process is wholely run by one factor called price , its the price leadership strategy.
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Price discrimination or price differentiation is a pricing strategy where identical or largely similar
goods or services are transacted at different prices by the same provider in different markets.
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There is no any industry under monopolistic competition but a group of firms producing similar
products. Each firm produces a distinct product and is itself an industry.
2. A firm's shutdown point comes where price is less than minimum average cost _Explain
7. Enumerate the producer for determination of pricing factors. What is the interaction of product
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and market factor?
9. How the market and product factor is synchronized to maintain the economic efficiency?
UNIT-IV
Part A (2 MARKS)
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5. What is GDP deflator?
GDP deflator (implicit price deflator) is a measure of the level of prices of all new, domestically
produced, final goods and services in an economy. GDP stands for gross domestic product, the total
value of all final goods and services produced within that economy during a specified period.
6. Define Multiplier'.
The multiplier is the ratio of the change in total output to the change in investment.
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11. Define national income?
The total amount of money earned within a country.
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19. What are the various approaches to National Income?
The national income of a country can be measured by three alternative methods: (i) Product Method
(ii) Income Method, and (iii) Expenditure Method.
1. What is national income? How is national income measured by income method? Discuss about its
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methods & factors influencing it.
2. How are aggregate price and output determined by the interaction of aggregate supply and
6. How do different forces interact to determine over all macroeconomics activity? Illustrate.
8. What are the components of national income? Explain any two components in brief.
10. What is expenditure multiplier? What is the role of budget in National Income?
UNIT-V
Part A (2 MARKS)
1. What is Inflation?
2. Inflation means persistent and appreciable increase in general level of prices over a period of time.
3. What is unemployment?
4. The number of people who are actively looking for work but are currently without job.
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The Phillips Curve shows the relationship between the inflation rate and the unemployment rate.
A higher interest rate should also lead to higher exchange rate, which helps to reduce inflationary
pressure by making imports cheaper, Reducing demand for exports and Increasing incentive for
exporters to cut costs.
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20. What is frictional unemployment?
Frictional unemployment is the time period between jobs when a worker is searching for, or
transitioning from one job to another. It is sometimes called search engine and can be voluntary based
on the circumstances of the unemployed individual.
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4. What is unemployment? List the impacts of Unemployment
8. Enunciate the factors involved in determining the demand and supply money
9. Identify the causes of inflation and discuss its effects on multi-dimensional policy.
10. Discuss about unemployment and its impact in the national economy.
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