1 Series 550/1 1 1 Set 11

~-;f.
Code No. 5811/1
®-;f. '1tt~m ~ cit ~ 3RiChl ~ WST-
Roll No. I I I I I I I I 1fr3LT{~ fu"@ I
Candidates must write the Code on
the title page of the answer-book.

• ~~~~fcn~w.l-~-q~~15~1
• w.l-~-q~m~·pt't ~~~m~cli'n.m~ gfBiCflI ~~-~1Rfu"@ I ..
• ~~~~fcn~w.l-~-q 29w.l~ I ..
• ~~CfiT~ H(SI41 ~~~~, ~CfiT~ ~fFnY I
• ~ w.l-~ cnT~ ~ ~ 15 fiRe: CfiT ~ ~~PTm ~ I w.l-~ CfiT fcrcRur~ -q 10.15
rl- fcnm~ I 10.15 rl- it 10.30 rl- (lCfj £9Bf ~ w.l-~ cnT~ 3fR ~ ~ ~
~~~ gfBiCflI1R~~~~ I
• Please check that this question paper contains 15 printed pages.
• Code number given on the right hand side of the question paper should be written on the
title page of the answer-book by the candidate.
• Please check that this question paper contains 29 questions.
• Please write down the Serial Number of the question before attempting it.
• 15 minute time has been allotted to read this question paper. The question paper will be
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the
question paper only and will not write any answer on the answer-book during this
period.

3f~~II'f34
ECONOMICS
R'Elfftrr Rrm : 3 CJU?:1 [ 31f'~ 3icii: 100

Time allowed: 3 hours 1 [Maximum marks: 100

"!#w:

[P.T.O.
 3. WrT d. 1- 3 3#( 15-19 31fd(1~rl<WrT tl ~ "$ ~ 1 3iCfi f.tWta
tl ~ CfiT ~ ~ C{l(Fl-q ~ ~ tl
4. WrT d. 4-8 3#( 20-22 ~ WrT t ~ ~ "$ ~ 3 3iCfi

f.mfttrr t I HlJ.flr<ld2l1 ~ CfiT ~ 60 ~ it ~ ;:r m- I

5. WrT d. 9-10 3#( 23-25 if! ~ WrT t~ ~"$ ~ 4 3iCfi

f.tWta t I ~ "$ ~ mJ.flr<ld2l1 70 ~ it 31fiTcn ;:rif I

6. WrT d. 11-14 3#( 26-29 flWrl< WrT t 3#( m ~"$ ~ 6

3iCfi f.tWta tl ~ ~ "$ ~ HlJ.flr<ld2l1 1 00 ~ it 31f'qcn "7 if I ..

7. ~ mlfflT 3#( f¥t2Ilj~q if Yffif"$

({2fT 112mi'JTc1 ~ f.tWta~-
dIl1T CfiT 31lcN!21Cf? ~ it r:rTfR fWn ~ I

Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Question No. 1-3 and 15-19 are very short answer questions
carrying 1 mark each. They are required to be answered in one
sentence.
4. Question No. 4-8 and 20-22 are short answer questions carrying
3 marks each. Answers to them should not normally exceed 60
words each.
5. Question No. 9-10 and 23-25 are also short answer questions
carrying 4 marks each. Answers to them should not normally
exceed 70 words each.
6. Question No. 11-14 and 26-29 are long answer questions
carrying 6 marks each. Answers to them should not normally
exceed 100 words each.
7. Answer should be brief and to the point and the above word limit
be adhered to as far as possible.

58/1/1 2
 ~3t
SECTION A

Give equation of Budget Line.

2. ~ "31lmmr cfiT 3Wl fi'r@ ~ -m crWn ~ ~ ~ -~ cr9fl1:R ~ )T~ ~

~: (mft ~CflC'"q ~) 1

Ca) -zyff 3ffi R9 ~ CfldI ~ I

,.
Cb) ~ 3ffi R9~Cfld I~ I .,~
Cc) ~ cr9fl1:R ~ cfiT 3ffi ~ mm ~ I
Cd) ~ cr9fl1:R ~ cfiT 3ffi ~ mm ~ I
When income of the consumer falls the impact on price-demand curve of
an inferior good is : Cchoose the correct alternative)

(a) Shifts to the right.

(b) Shifts to the left.

Cc) There is upward movement along the curve.

Cd) There is downward movement along the curve.

-
Ca) x-31a:r~~JOfI"iidcit1TT1
Cb) ~ cfiT 3ffi ~ ~ mm I
Cc) ~ cfiT 3ffi ~"3m1 mm I
C d) ~ cfiT 3ffi ~ mm 00 mm I

58/1/1 3 [P.T.O.
 If Marginal Rate of Substitution is constant throughout, the Indifference
curve will be :.(choose the correct alternative)

(a) Parallel to the x-axis.

(b) Downward sloping concave.
(c) Downward sloping convex.
(d) Downward sloping straight line.

4. CfiT{Uf ~ ~ Pt ki R1 R9 d d I R1 Cfll "tR 31Tmftr 3,Q I <:;Oi~mcRT Cf5fi ~ 31fCfi"R"tR

W:q-crft~: 3

~X(~) ~Y(~)
0 10
1 9
2 7
3 4
4 0

Giving reason comment on the shape of Production Possibilities curve

based on the following schedule :

Good X (units) Good Y (units)

0 10
1 9
2 7
3 4
4 0

5. ~tt-q~fcRn'lm'~ 'qffif 31f~' CfiT 31~m~ 3fYl<:;0i ~mcRT

Cf5fi "tR ~ ~~ ~ 3fu CFit ? 3

58/1/1 4
 ~ l1m ~ fcRm tm ~ ~ ~ 11\ 3l~2fT ~ 3(qIG'"i ff'mCRT CfSi111\~

~mq ~ ctt ff'mCRT t 3fn:cp;ff ?

What will be the impact of recently launched 'Clean India Mission'
(Swachh Bharat Mission) on the Production Possibilities curve of the
economy and why?
Or
What will likely be the impact of large scale outflow of foreign capital
on Production Possibilities curve of the economy and why?
.,

6. "Q,Cfi ~1lO11r<01~ ctt cfn:Rr l1'Pl ~ ~ m~ ~-ffl (minus sign)"¥.T irnT t

. ~ fcfi cfn:Rr ~ ~ ~ m~ 'tf.1-ffl (plus sign) I ~101$1~q: cp;ff? 3

The measure of price elasticity of demand of a normal good carries

minus sign while price elasticity of supply carries plus sign. Explain
why?

There are large number of buyers in a perfectly competitive market.

Explain the significance of this feature.

8. '3=t:qCl101cfn:Rr mm~' ~ fcnm ~ ~ ~ 11\ ~ CllB~mq ~101$1~q: I

'{{giN?! CfiT ~ ch)~q: I 3

Explain the effects of 'maximum price ceiling' on the market of a good.

Use diagram.

~~~-qtt~~~~~ 8 ~f~1R1

~mm~~ 31f~t? 31f~~mm-R~~~mq ~101$1~q: I 3

58/1/1 5 [P.T.O.
 For the blind candidates only in lieu of Q. No. 8.
What is price 'ceiling? Explain the effects of maximum price ceiling.

9. ~ ~~ ~ ~ '-R ~t1cf}) ~ 8~. "STffi~ t 1000~. ~ ~ tI

~ ~ ~ 25 SlRt!ild ctT ~ it ~ t it m ere ~ '-R 1000 ~. ~ ~

~t I SlRt!ild fcrfumT~-lwrRt:q~~ I 4

A consumer spends Rs. 1000 on a good priced at Rs. 8 per unit. When
price rises by 25 per cent, the consumer continues to spend Rs. 1000 on
the good. Calculate price elasticity of demand by percentage method.

10. ~ ctT Lfft~ ~ I mmo ~ ~ ~ qf{qdT ~ ~ ~ ~'q

~I 4

~ (31fTTl1) ctT Lfft~ ~ I BTqfu ~ ~ ~ ~ ~ ~ ~'q

~I

Define cost. State the relation between marginal cost and average
variable cost.

Or
Define revenue. State the relation between marginal revenue and
average revenue.

11. ~ ~~ ~ G1~31l X~ YCfiT ~ ~ t I G'Rl ctT ~ ~

3~. "STffi~ tI~ ~~ ~ G1~31l ~ ~:W:Wr CfiT ~ ~ t
~t1cf}) mmo >Tfm:~ ~ 3 t it ~ ~~. ~ t ? CfiRUT ~ I~
ff~~~~~~~? t1~~I~l!\ I 6

58/1/1 6
 ~ ~'l-11mT
~ GT ~3TI x 3fu: y CfiT~ Cfi«fT ~ ~"1cfil ~
~: 4~. 3fu: 5~. >ffir~~ I ~~Gf.:IT~3TICfiT~WWr~

~ ~ X c€t ~ 3q~lfTldl 5 3fu: y c€t ~ 3q~lfTldl 4 t "ffi cp:n

~'l-11mT. ~ ~ ? CfiRUT~ I~ ff'~ ~ ~ ~ ~ cp:n~?

3q~lfTldl ~~#lt5101 CfiT~ cfil~q: I

A consumer consumes only two goods X and Y both priced at Rs. 3 per
unit. If the consumer chooses a combination of these two goods with .• 1

Marginal Rate of Substitution equal. to 3, is the consumer in

equilibrium? Give reasons. What will a rational consumer do in this
situation? Explain.

Or

A consumer consumes only two goods X and Y whose prices are Rs. 4
and Rs. 5 per unit respectively. If the consumer chooses a combination

of the two goods with marginal utility of X equal to 5 and that of Y

equal to 4, is the consumer in equilibrium? Give reasons. What will a

rational consumer do in this situation? Use utility analysis.

12. qf\qdT ~ ~ ~ ~~ ~ 3fu: m11fu ~ ~ ~ ~ qf{qJ;fi ~

W~~~ I~ ~m'hglR:l~ ~ m ~@I~q: I 6

State the different phases of changes in Total Product and Marginal

Product in the Law of Variable Proportions. Also show the same in a

single diagram.

58/1/1 7 [P.T.O.
 ~~~l:fU~~~~~ 12 ~~"Q"{ I

~ fi&'lkLlCfl 3~1~(OIih 3TI'tW'1( qf~CjdT~ ih f2r:n:r -q ~ ~ 3fn:.

~~-q6HcrrBm~~~1 6

For the blind candidates in lieu of Q. No. 12 only.

State, on the basis of a numerical example, different phases of

changes in Total Product and Marginal Product in the Law of Variable

Proportions.

13. ~ fcnm 1:filt cfiT • cfit if~ ih ~ ~ "ffiTTO 3fn: ~ ~

(3Wlll) -q ftLlHdl ~ICj~'4Cflt? ~ <:f6. {1R~d cn8 ih ~ -q<ffi:r t?
ftLl$iI~QO
I 6

Why is the equality between marginal cost and marginal revenue

necessary for a firm to be in equilibrium? Is it sufficient to ensure

equilibrium? Explain.

14. ~crqCfiT~.-qt I ~crqcfiT1iiTr-q '~' m~t I~ qf~CjJ1

ih CfiRUT 6H crrB >r~ cfiT~ ft LI$iI~QO

I 6

Market for a good is in equilibrium. The demand for the good

'increases'. Explain the chain of effects of this change.

~~
SECTIONB

What is' aggregate supply' in macroeconomics?

58/1/1 8
16. :!Ufcfi Cf)f ~ <:f5 -m-r ~: (~ ~Cf)",q ~) I

1
(a) ~~~>TCIfu
1
(b) m11fu ~ >TCIfu
1

(d) ~~~>TCIfu-1

The value of multiplier is : (choose the correct alternative) .'

1
(a)
MPC
1
(b) --
MPS
1
(c)
I-MPS
1
(d)
MPC-l

17. tl(Cf)I{) ~#*Uf~~: (~~Cf)(Yq~) I

(a) ~tTTZT
(b) (1~Cf)1t:f1;q tTTZT

(c) m~tTTZT

(d) CfiU # tTTZT

Borrowing in government budget is : (choose the correct alternative)

(a) Revenue deficit

(b) Fiscal deficit

(c) Primary deficit
(d) Deficit in taxes

58/1/1 9 [P.T.O.

\
18. RAR1R9d~ltt-CR~~t: (~fClCf1~q~) 1

(a) ~~

(b) 3l1<mf~
(c) "ffi~ .

(d) 3«lIG'i ~

The non-tax revenue in the following is : (choose the correct alternative)

(a) Export duty

(b) Import duty

(c) Dividends

(d) Excise

19. ~~~~1:R, ~fcR:ft~~mm~c€T~~t(f)~

~ 3lT(i : (~ fClCfl~q~) 1

(a) ~~c€T~mcRTmmt
(b) iTrG c€T~mcRTmm t
(c) ~ m 3fu: iTrG ~ ~mcr.mtmm '€
(d) 1:R~)fmq~~

Other things remaining unchanged, when in a country the price of

foreign currency nses, national income is : (choose the correct
alternative)

(a) Likely to rise

(b) Likely to fall

(c) Likely to rise and fall both

(d) Not affected

58/1/1 10
20. ~ cllWf4Cfl ~ ~ ~ 200 ~. ~ 3fR c€tlRf ~-qCfliCfl (31T'tffi=100)

110 t~ ~ ~ ~ CfiT qf{Cfl~:H~ I 3

If Real GDP is Rs. 200 and Price Index (with base = 100) is 110,
calculate Nominal GDP.

21. ~ ~ T-l ~ crrIT ~ ~ ~ ~ ~. "ffim ~ '~"ffim'

~~M~~I 3

~ ~ T-l ~ crrIT ~ ~ ~ ~ ~."ffim ~ '~"ffim' ..

~~M~~I
Name the broad categories of transactions recorded in the 'capital
account' of the Balance of Payments Accounts.

Or

Name the broad categories of transactions recorded in the 'current

account' of the Balance of Payments Accounts.

22. ~ CfiT ~ ~ ~ • ~ ~ ~ ~ M ~? CfiT\UT

~I 3

Where will sale of machinery to abroad be recorded in the Balance of

Payments Accounts? Give reasons.

Explain the 'bank of issue' function of the central bank.

58/1/1 11 [P.T.O.
 Or

Explain 'Government's Bank' function of central bank.

24. 6lB tt if m-@ mcnn: ~ '~-~ ~' ~~ cfiT N1\8CflI ~ t fcn ~

qftcm q)l Cfll1 it Cfll1 ~ ~ ~ m I \8101$1~q: fcn ~ ~ ~ ~ cfiT rr:ft
~ ~ cfiT ~ 31m CfiT~ >rmfcffi ~ I 4

Government of India has recently launched 'Jan-Dhan Yojna' aimed at

every household in the country to have at least one bank account.

Explain how deposits made under the plan are going to affect national

income of the country.

25. ~ 31~~ni~~ if t I R kI Ri U9d it ~ 31m CflT q \{Cfle'H cfil N1 q: : 4

~'11lm.r = 100

~~~ =0.2

~cxr:r = 200

An economy is in equilibrium. Calculate national mcome from the

following:

Autonomous consumption = 100

'Marginal propensity to save = 0.2

Investment expenditure = 200

26. CflRUT ~ ~ \8101$1~q: fcn ~ 31m CflT 1WH cnG if RklRiU9d ~ m~ CFn
0lI Cl 131{ fcn<.n ~ ~ : 6

(i) 1:fllf W{T ~ 3"lCfl13•.~ •.2: CfiT 1fR:r ~ 'lR cxr:r

(ii) 1:fllf W{T Wm Cf){ CflT ~

(iii) 1:fllf W{T m~ ~~ ~ CflT~

58/1/1 12
 Giving reason explain how should the following be treated in estimation
of national income :

(i) Expenditure by a firm on payment of fees to a chartered accountant

(ii) Payment of corporate tax by a firm

(iii) Purchase of refrigerator by a firm for own use

27. '&c€lRtCfllti ~ c€T ~'i:muTT w""l$ll~~ I~ Cfill cnG if g'"1@{1~ ~ (Repo

Rate)c€T ~c€T ~I&Ol1 ~ I 6

.,

diq'&c€lRlCflI{1 ~ c€T ~'i:muTT w""l$ll~~ 3:fR ~ Cfill cnG if '~ ~ ~

CflI4CflC1I4'i' c€T~c€T ~I&Ol1 ~ I

Explain the concept of Inflationary Gap. Explain the role of Repo Rate
in reducing this gap.

Or

Explain the concept of Deflationary Gap and the role of 'Open Market
Operations' in reducing this gap.

28. ~ ~ m~ "B "ffi:n<tHf ~ ~ cnT >rmfcrn cnG if mcFlR c€T~ c€T

~I&Ol1 cfi)M~ I 6
Explain the role the government can play through the budget III

influencing allocation of resources.

58/1/1 13 [P.T.O.
 4+2

(~~.)

(i) ~ ~ ffiien Cfi\ 80

(ii) ~~~cxr:1 600

(iii) ~~(lft:(l ~ 30

(iv) ~ 3lT<l 650

(v) ~ ~en Itl ~ dCfmrr cxr:1 100

(vi) ~Cfi\ 50

(vii) ~~~~~ 70

(viii) ~~&1Cfi\ 60

(ix) ~~ 14

(x) ~~ qft:q~~ (-)10

(xi) ~3Wmf 20

(xii) ~ CfiT ~ CfiRCfl3lT<l 10

58/1/1 14
 Calculate National Income and Personal Disposable Income :

(Rs. crores)

(i) Personal tax 80

(ii) Private final consumption expenditure 600

(iii) Undistributed profits 30

(iv) Private income 650

(v) Government final consumption expenditure 100

(vi) Corporate tax 50 ••

(vii) Net domestic fixed capital formation 70

(viii) Net indirect tax 60

(ix) Depreciation 14

(x) Change in stocks (-)10

(xi) Net imports 20

(xii) Net factor income to abroad 10

58/1/1 15