(Or)

13b. What is factor price? What are the determinants of factor price? How
do economists argue about the determinants of factor price?

14a. (i). Explain the methods and difficulties in measuring National

SET A
Income. (8)
TIME: 3 HRS MARKS: 100 (ii). Describe the circular flow of income in a two sector economy.
(Or)
ANSWER ALL THE QUESTIONS 14b. “Decline in aggregate demand lead to an economic downturn” -
PART-A (10 X 2 = 20 Marks) Explain with suitable illustrations. (16)
1. Distinguish Productive efficiency Vs Economic Efficiency.
2. What do you mean by economic growth and stability? 15a. Explain the role of Phillips curve in explaining Inflation –
3. What is autonomous demand and negative demand? Unemployment trade off.
4. What do you understand by consumer equilibrium? (Or)
5. List the determinants of factor price. 15b. Write short notes on
6. Which cost curve is the base for shut down decision of firms in the (i). Factors determining the demand and supply for money
short run production? (ii). Money Market Equilibrium
7. List the various motives to hold money (Keynesian view).
8. What is Liquidity Trap? PART C (1* 15 = 15 Mark)
9. What does Okun’s law state? 16. “Consumer’s equilibrium is at the point of tangency of the price line
10. What is fiscal policy? with an indifference curve”. Can you give an instance of exceptions to this
rule? Give diagrams to illustrate your answer.
PART B (5* 13 = 65 Marks)
11a. Write short notes on (i). Three economic problems
(ii). Production Possibility Frontier
(Or)
11b. Critically analyse the three main economic functions of government
in a market economy.

12a. Economies of scale may be internal or external – Elaborate.

(Or)
12b. (i). Why demand curves slope downward? Explain.
(ii). Why is long run cost curve U shaped?

13a. Explain the different types of Market structure and illustrate the
conditions for the establishment of a firm’s equilibrium under perfect
competition.
 SET B (Or)
TIME: 3 HRS MARKS: 100 14b. Explain the objectives of fiscal policy. Discuss its impact on business

ANSWER ALL THE QUESTIONS 15a. Elucidate the determinants of money supply, the theory of liquidity
preference and equilibrium in the money market. Explain the relationship
PART-A (10 X 2 = 20 Marks)
between the money market and the aggregate demand curve.
1. What do you understand by Scarcity?
(Or)
2. Give a brief account on externalities.
15b. Define Monetary policy. Discuss in detail the importance and
3. What do you understand by economies and diseconomies of scale?
instruments of monetary policy.
4. List the characteristics of Perfect competition.
5. Why does market equilibrium occur?
. PART C (1* 15 = 15 Mark)
6. Explain the term consumer surplus.
16. Business and governments always think only of positive externalities
7. Write a short note on demand for money.
while negative externalities are ignored. How do you think this will affect
8. Write about circular flow of income.
the growth of a firm/economy in the long term? Provide appropriate
9. State any two reasons for Inflation.
examples.
10. What is Multiplier effect?

PART B (5* 13 = 65 Marks)

11a. Discuss the need and importance of economic growth and stability in
the country’s business development..
(Or)
11b. Distinguish between Productive efficiency Vs Economic Efficiency.
Elaborate the various determinants of the economic efficiency of the
Nation.

12a. What are the different factors affecting the production function and
explain the main basis for increasing return to scales?
(Or)
12b. (i). Describe the Production and Cost in Long run.
(ii).Explain the various factors determining the elasticity of
demand.
13a. Differentiate the monopolistic and Oligopolistic market structure.
(Or)
13b. Explain the concept of factor market and the relation of land, labour
and capital.

14a. (i). Explain the methods and difficulties in measuring National

Income.
(ii). Describe the circular flow of income in a two sector economy.
 14a. (i). Explain the methods and difficulties in measuring National
TIME: 3 HRS MARKS: 100 Income.
(ii). Describe the circular flow of income in a two sector economy.
(Or)
ANSWER ALL THE QUESTIONS
14b. Explain the objectives of fiscal policy. Discuss its impact on business
PART-A (10 X 2 = 20 Marks)
1. Distinguish Productive efficiency Vs Economic Efficiency.
2. What do you mean by economic growth and stability?
15a. Explain the role of Phillips curve in explaining Inflation –
3. What is autonomous demand and negative demand?
Unemployment trade off.
4. What do you understand by consumer equilibrium?
(Or)
5. List the determinants of factor price.
15b. Write short notes on
6. Explain the term consumer surplus.
(i). Factors determining the demand and supply for money
7. Write a short note on demand for money.
(ii). Money Market Equilibrium
8. Write about circular flow of income.
9. State any two reasons for Inflation.
PART C (1* 15 = 15 Mark)
10. What is Multiplier effect?
16. Critically analyse the impact of inflation among the various sections
PART B (5* 13 = 65 Marks) of the society.
11a. Write short notes on (i). Three economic problems
(ii). Production Possibility Frontier
(Or)
11b. Critically analyse the three main economic functions of government
in a market economy.

12a. What are the different factors affecting the production function and
explain the main basis for increasing return to scales?
(Or)
12b. (i). Describe the Production and Cost in Long run.
(ii).Explain the various factors determining the elasticity of demand.

13a. Explain the different types of Market structure and illustrate the
conditions for the establishment of a firm’s equilibrium under perfect
competition.
(Or)
13b. What is factor price? What are the determinants of factor price? How
do economists argue about the determinants of factor price?