8PECIMEN PAPER3

[Time: 3 Houra]
Maximum Markn
Note:
(1) All quiestions are compulsory
(2) Dmu tables/diagrams wherever necessary
(3) Fiaures to the right indicate full marks
(4) Wnite answers to all question on new pages.
Q.1 (A) Choose the correct option.
(1) Concepts studied under Micro economics. (05
(a) National income (b) General price level (c) Factor pricing (d) Product pricing
Options: () b and c i) b, c and d (i) a, b and c fiv) c andd
(2) Statements indicating consumer
(a) MU is greater than price
equilibrium
b) MU is equal to price
c) MU is less than price (d) Price is less than one.
Options: f) a and b (ii) a, b, c and d (iti) a, b and c fiv) only b.
(3) A rightward shift in supply curve shows
(a) contraction of (b) decrease in supply
supply
() expansion of supply (d) increase in supply.
Options: ) a d (ii) c fiv) b
(4) Homogeneous product is a feature of this market.
(a) Monopoly (b) Monopolistic competition
(c) Perfect competition (d) Oligopoly
Options: ) c and d i) a, b and c tii) a, c and d fiv) only c
(5) Demand curve is parallel to X axis, in case of:
(a) perfectly elastic demand (b) perfectly inelastic demand
(c) relatively elastic demand relatively inelastic demand
Options: () a (i) b (ii) c iv) d
Q.1 (B) Assertion and Reasoning type questions.
(1) Assertion (A)
(05)
A change in quantity demanded of one commodity due to a change in the
price of other commodity is cross elasticity.
Reasoning (R) Changes in consumers income leads to a change in the quantity
demanded.
Options: (1) (A) is True, but (R) is False
(2) (A) is False, but (R) is True
(3) Both (4) and (R) are True and (R) is the correct explanation of (A)
(4) Both (A) and (R) are True and (R) is not the correct explanation of (A)
(2) Assertion (A) Perfect competition prevails when the demand for the output of each
producer is perfectly elastic.
Reasoning (R) A single uniform price prevails under perfect competition which is
determined by the interaction of demand and supply.
Options: (1) (A) is True, but (R) is False
(2) A) is False, but (R) is True
(3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (4) and (R) are True and (R) is not the correct explanation of (A)
(3) Assertion (A) Simple index number are assumed base year.
Reasoning (R) Every commodity is given equal importance
Options: (1) (A) is True, but (R) is False
(2) (A) is False, but (R) is True
 (3) Both (A) and (R) are Tmue and ie
(R) the
(4) Both (A) and (R) a r Tue and (R) in rorrect evplonntinn of
not the corect
(4) Assertion (A) Totnl utility increnses nt n explanation o
Reasoning (R) Then marginal utility diminishing
goea on
rate
options: (1) (A) is Thue, but (R)is Palse diminishing
(2) (A) is False, but (R) is Thue
13) Both (A) and (R) are Tnue and (R) is the
correct
(4) Both (A) and (R) are Thue and (R) is not the explanation of (A)
correct
5) Assertion (A) Money market economizes use of explanation of iA
Reasoning (R) cash
Money market
deals with financial instruments that are close
of money. substifute
Options: (1) A) is True, but (R) is False
(2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
(4) Both (A) and (R) are True and (R) is not the correct explanation of IA)
Give economic terms.
.1 (C) (05)
(1)
A desire whichis backed by willingness to purchase and ability to
(2) Achieved when all goods and factors of production in an economy arepaydistributed or allocated
to their most valuable uses and waste is
eliminated or minimized.
(3) When the utility one derives from
it depends
This concept is used in public finance.
on the number of users or individuals using8it
(4) The point where demand and supply curve intersect.
51 It is a monetary policy tool used by RBI which allows commercial banks to borrow money
through repurchase agreements.

Q.1 p) Complete the following statements. (05)

)When percentage change in quantity demanded is more than the percentage change in price,
the demand curve is
(a) flatter (b) steeper
(c) rectangular (d) horizontal
(2) Development financial institutions were established to
(a) provide short term funds
(b) develop industry, agricuiture and other key sectors.
(c) regulate the money market
(d) regulate the capital market.
(3) While estimating national income, we include only value of final goods and services in order
to.
(a) make computation easier
(b) avoid double counting
(c) maximize national welfare of the people
d) evaluate the total economic performance of a nation
(4) Statements that apply to weighted index numbers.
(a) Add the price of the different commodities of the base year e Po
(b) Add the price of the different commodities of the current yeane p
(c) Every commodity is given equaBl importance
(d) Laaspeyre's and Paasche's method is used in the calculation of weighted indexnumbers
5) Under Perfect competition, sellers are
(a) Price makers (b) Price takers
(c) Price discriminators (d) None of these
 pers
Q.2 (A) Identity and erplain the concepte
(Any three.
Solution
(1) Lalita satisfed her want of writing on essay by using pen and notebook.
(2) Rajendra has a total stock of 500 in his shop which inclhudes
gel pens the 200 gel
p
produced in the previous ffnancial year.
pena
(3) Karan sold 1500 kg of cotton in the market.
(4) Assuming 2012 as the base year, the Government of Maharashtra fixed the vaue for 2016
(5 The rm Maruti Suziki decided to lease the four wheeler on a contract basis.

Q.2 (B) Distinguish between (Any three).

(1) Organized sector and Unorganized sector of money market.
(2) Contraction of supply and Decrease in supply.
(3) Micro economics and Macro economics
(4) Laaspeyre's Index and Paasche's Index
(5) Balance of payments and Balance of trade

Q.3 Answer the following (Any three).

(12
(1) Explain the functions of commercial bank.
(2) Explain the concept of foreign trade and its
types
(3) Explain the Monopolistic competition with its features.
(4) Explain features of utility.
(5) Explain the law of supply.

Q.4 State with reasons whether you agree or disagree with the following
statements (Any three). (1
(1) Macro economics deals with the study of individual behaviour.
(2) Demand curve slopes downward from left to right.
(3) Perfectly elastic demand curve is horizontal line to X axis.
(4) There are many theoretical difficulties in the measurement of national income.
(5) Obligatory function is the only function of the Government

Q.5 Study the following and answer the questions given below it (Any two).
(A) Read the glven passage and answer the questions.
The conventional notion ofsocialsecurity is that the government would makeperiodicpayments
to look after people in their old age, illhealth, disability and poverty. This idea should itoelfchange
from wrting a cheque for the beneficiary to institutional arrangements to eare for beneficiaries
inchuding by enabling them to look after themselves, to a large extent. The write-a-cheque model of
social security is a legacy from the rich world at the optimal phase of its demographie transition
when the working population was numerals enough and earning enough to generate the taxes to
pay for the care of those not working. This model is il-suited for less, well- offndia with growing dje
expectancy, increasing urbanization and resutant migration. Social security under urbanization w
be different from social security in a static society.

(1) State the conventional notion of social security.

(2) What kind of conceptual change is suggested in the given paragraph ?

(3) What is a legacy of social security from the rich world ? ue

for
(4) Which features of India make the traditional model of social security ill-suited
economy?
 thegiven table and answer the
Secime

Observe
questions.
Firme
Price () B C
Market Supply (kg)

20 45 100
1
37 30 45
2
40 55 155
3
44 50 154
4
of potato supplied by the firms to the market in the above table
Complete the quantity
curve from the schedule.
the market supply
21 Draw
Laspeyres's and
Paasche's index from the given data.
Calculate
C) Base year Current year
Commodity
Po P
12 25
8 30
X 16
42 20
10
Y
(16)
Answer in
detail (Any two).
0.6 with assumptions.
explain the law of demand national income.
and
(1) State
difficulties involved in
the m e a s u r e m e n t of
the practical
(2) Explain revenue.
the main s o u r c e s of public
(3) Explain