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net HSE(II) Part 3

Model Examination -2011

ECONOMICS

CODE 1056 MAX:80 TIME:2.45 hrs

1.Illustrate optimum choice of a consumer. 2.Find the odd one out and justify your answer. a.GNP,NNP,GDP,CSO b.Old age pension,interest,free ration,unemployment allowance. c.Derived demand,consumption demand,investment demand,government demand. d.Value added method,income method,deductive method,expenditure method 3.What do you meant by shutdown point.

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4.Under perfect competition a seller is a price taker.Do you agree with this? Justify your answer. [5] 5.Sheela is a manufacturer of cotton garments.The table shows her calculations of value of cotton garments.But she made a mistake in calculations a. Identify the problem. b. Give your suggestions to avoid such a problem. Item Value[in Rs.] Cotton 2000 Yarn 3000 Cloth 5000 Garments 7500 [5] 6. Make pairs from the following. Profit,Land,Organisation,Capital, Rent,Wages,Interest,Labour 7. If C=0.6,M=0.5,find a.Open economy multiplier b.Closed economy multipler

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8.From the following data calculate national income using [a]income method [b]expenditure method [a]compensation of employees 1200 [b]net factor income from abroad -20 [c]net indirect tax 120 [d]profit 800 [e]private final consumption expenditure 2000

( Word to PDF Converter - Unregistered ) http://www.Word-to-PDF-Converter.net [f]net domestic capital formation [g]consumption of fixed capital [h] rent [i]interest [j]mixed income of the self employed [k]net export [l]government final consumption expenditure 770 130 400 620 700 -30 1100 [4] [8]

8.Give two examples for under utilization of resources and growth of resource

9.The income of a consumer is Rs.20.The price of good 1 and good 2 are5 and 4 respectively.Then, [a]Write the equation of the budget line and draw it. [b]When income increases to Rs.40,how does the budget line changes. [c]When the price of good 1 changes to Rs.10,show thechanges in the budget line. [d]If price of good 1decreases to Rs.4show the change in the budget line. [4] 10.Prepare a seminar paper on the law of variable proportions [6]

11.If Qd=200-4p 0<p<50 =0 if p>50 Qs=100-p 0<p<100 =0 if p>100 From the above demand and supply functions,find equilibrium price and equilibrium quantity demanded. [4] 12.How does the imposition of unit tax affect the supply curve of a firm.Illustrate graphically. [5] 13.If cdr=0.1,rdr=0.3,find the money multiplier [3]

14.The price of an orange is Rs.20 and its demand is 15 kgs. When price increases to Rs. 30 demand falls to 10kgs. In such a situations what will be the price elasticity of demand. [4] 15.A bond offers Rs.500 after 2years.The annual interest is 5%.Calculate the bond price. [4] 16.From the following data,calculate TVC,AFC,AVC,AC and MC,if TFC is given as 60. Output: 0 1 2 3 4 5 6 TC : 60 100 120 130 160 220 350 [8]

( Word to PDF Converter - Unregistered ) http://www.Word-to-PDF-Converter.net 17.If MPC of an economy is 0.8 find, [a] The tax multiplier and expenditure multiplier [b]From the above example prove that adding these policy multiplier brings balanced budget multiplier. Prepared By Lissykutty Thomas & Marykutty

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