ECONOMICS 2022 SHORT QUESTION ANSWER

1. What is the difference between 'Bank Rate' and 'Interest Rate'?

2. What is involuntary employment?
3. Mention two components of aggregate demand.
4. What is depreciation?
5. What is Green GNP?
6. What is mixed income?
7. When a firm is price taker?
8. Where is the equilibrium price determined?
9. What is Rent?
10. What is marginal production?
11. What is cost function?
12. When does the TR start declining?
13. Differentiate between economic activities and non-economic
14. Define Mixed Economy.
15. Explain the meaning of consumer's equilibrium.
16. What is meant by investment multiplier? Explain with suitable examples
17. Distinguish between inflationary and deflationary gap
18. Give two examples of capital receipts.
19. State the main demerits of money.
20. State the qualities of good money.
21. Define 'clearing house'.
22. What is derived demand?
23. Distinguish between Money Flow and Real Flow.
24. Why is flow of income called circular flow?
25. What is Break-even point?
26. What is market supply?
27. What do you mean by elasticity of supply?
28. What is indifference curve?
29. What are inferior goods? Give any two examples.
30. When does demand become inelastic?

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 LONG QUESTION ANSWER

31. Economics is both positive and normative science. Explain.

32. What is an economic problem? Why does it arise?
33. Why dies demand curve slope downward from left to right?
34. How is price determined under monopoly market?
35. How is national income estimated by value added method?
36. What is Barter system? Mention its difficulties.
37. Explain briefly the primary functions of a commercial bank.
38. What is meant by Budget? What are the objectives of budget?

ECONOMICS 2021 SHORT QUESTION ANSWER

1. What is meant by Price Elasticity of Demand?
2. What do you mean by income elasticity of demand?
3. Distinguish between 'Returns to scale' and 'Returns to a factor'
4. Write the limitations of macroeconomics.
5. Explain the circular flow of income.
6. What is personal income?
7. State the three factors that can shift a supply curve.
8. What are the causes of change in supply?
9. Define price elasticity of supply.
10. Define Micro economics.
11. What is exchange?
12. What are the three main central problems of an economy?
13. Explain the necessary conditions of a Firm's equilibrium.
14. Explain 'supply schedule' and 'supply curve'.
15. Mention the limitations of the law of supply.
16. "Demand and supply are the two blades of scissors". Explain this statement with reference to price
determination.
17. How is price determined under Monopoly market?

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18. How is interest rate determined?
19. What is meant by returns to a factor?
20. What is opportunity cost?
21. What are meant by total revenue, average revenue and marginal revenue?
22. Why is economic problem regarded as a problem of choice?
23. What do you mean by Consumer's Equilibrium? State its assumptions.
24. Define budget line. When does it shift to right?
25. Explain the method of measuring elasticity of supply.
26. Mention the basic features of market.
27. What do you mean by perfect competition?
28. Explain the factors that affect the market demand of a commodity.
29. Explain Giffen Paradox in brief.
30. What are the exceptions of Law of Demand?

LONG QUESTION ANSWER

31. Explain the various concepts of National income.

32. What do you mean by double counting?
33. Economics is both positive and normative science. Explain.
34. What is an economic problem? Why does an economic problem arise?
35. What do you understand by Consumer's Equilibrium? Give assumptions and conditions of Consumer's
Equilibrium.
36. Distinguish between individual demand and market demand.
37. Explain the factors determining price elasticity of demand.
38. What is law of Diminishing Returns? Why does this law become operative?

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 ECONOMICS 2020 SHORT QUESTION ANSWER
1. What is meant by Cash Reserve Ratio?
2. What is meant by Fiscal Policy?
3. Write the definition of trade cycle.
4. What is open economy?
5. Give two examples of direct tax.
6. What is inflation?
7. Define capitalistic economy.
8. Mention two fundamental economic activities of an economy.
9. What is opportunity cost?
10. Explain the necessary conditions of a firm's equilibrium.
11. Write two differences between Perfect competition and Monopoly.
12. Make a comparison between Market price and Normal price.
13. Mention two differences between Desire and Demand.
14. Define equilibrium price.
15. Mention two main reasons of appearance of monopoly.
16. Write the formula of Total Utility.
17. Write two properties of indifference curve.
18. When does demand become elastic?
19. Mention two characteristics of commercial bank.
20. Mention two differences between Fixed cost and Variable cost.
21. What is meant by credit creation?
22. Give two examples of the differences between Stock and Flow.
23. Mention two differences between national income and private income.
24. State two qualities of good money.
25. What do you mean by Balance of Payment?
26. Mention two methods of determining exchange rate.
27. Write any two objectives of government budget.

LONG QUESTION ANSWER

28. Distinguish between micro and macroeconomics.
29. What is law of Equi marginal utility? Explain.
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30. How is price determined under monopoly? Explain.
31. Explain the expenditure methods of calculating national income.
32. Explain five difficulties of barter system.
33. Discuss the different types of elasticity of demand.
34. Explain the various functions of commercial banks.
35. Why does demand curve slope downward from left to right? Explain.

ECONOMICS 2019 SHORT QUESTIONS

1. Write any two problems of an Economy.
2. Mention any two factors that affect price to elasticity of demand.
3. What is the meaning of budget line?
4. Give two examples of variable cost.
5. Mention any two factors which affect the supply of a commodity.
6. What are the two main features of monopoly?
7. Who determines price under perfect competition?
8. How is price affected by increase in Demand?
9. What is Rent?
10. Which who transactions determine balance of trade?
11. Give two examples of Direct tax.
12. What is meant by credit control?
13. State any two qualities of good money.
14. Write any two importance of Macro Economics.
15. What is an open economy?
16. What do you mean by GNP?
17. Define Secondary Sector of the economy.
18. What is meant by aggregate supply?
19. Write two main causes of Excess Demand?
20. What is meant by Monetary Policy?
21. Write any two recommendations by first Narsimha committee.
22. What is marginal utility?
23. What is the relationship between price and demand?
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24. State the law of supply.
25. What is meant by Fixed Cost?

LONG QUESTION ANSWER

26. Explain the characteristics of Indifference curve.
27. What are the exceptions of Law of Demand?
28. Explain the law of Diminishing Return.
29. Explain the meaning of average cost. In short run, why is the cost curve U shaped? Discuss.
30. Explain the Income method for calculating National Income.
31. Explain the concept of Domestic Product. Distinguish between Gross Domestic Product and Gross
National Product.
32. How employment is determined by savings and investment?
33. What do you mean by inflation? Does it affect price and output? Give reason.

ECONOMICS 2018 SHORT QUESTIONS

1. What do you mean by consumer's equilibrium? State its assumption.
2. Explain the law of demand with the help of demand schedule.
3. Write the meaning of perfectly elastic demand and perfectly inelastic demand.
4. Write the factors effecting elasticity of demand.
5. State the relation between Marginal Production and Average Production.
6. Clarify the concept of opportunity cost.
7. Why short run average cost curve is to "U" shaped? Write briefly.
8. What to you mean by Total Revenue, Average Revenue and Marginal Revenue?
9. Write the three characteristics of perfect competitive market.
10. What is the difference between monopoly and monopolistic competition?
11. What is meant by equilibrium price and equilibrium quantity?
12. Differentiate between national income and domestic income.
13. State any two qualities of good money.
13. What is meant by private income? What is the difference between private income and personal
income?
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14. Factor income is divided into how many classes?
15. What are the precautions related to the calculation of income method?
16. How national income is calculated by expenditure method?
17. What are the main demerits of barter system? How money is helpful in removing these demerits?
18. Write the important functions of Commercial Banks.
19. What is meant by under employment equilibrium and over full employment equilibrium?
20. Explain the relationship between investment multiplier and marginal propensity to consume.
21. Write the names of main measures of monetary policy.
22. What do you mean by government budget? What are the main characteristics of government budget?

LONG QUESTION ANSWER

23. Explain the law of demand with the help of a diagram. Explain any five factors affecting the demand of a
commodity.
Or
What do you understand by price elasticity of demand? How is it measured?
24. What is meant by returns to scale? Using a suitable diagram, explain the concepts of increasing,
constant and diminishing returns to scale.
Or
Describe the various types of production cost. Explain the mutual relation between Average Cost and
Marginal Cost.
25. Explain the value-added method of estimating national income with the help of a
suitable example.
Or
What do you mean by double counting problem? How can it be avoided? Explain with an illustration.

26. Define investment multiplier. What is the relationship between investment multiplier and marginal
propensity of consume?
Or
What is excess demand? How can it do controlled?

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