Q.1.

Define & explain following terms 1. Prime Lending Rate

(14 marks) 2. Crowding out effect 4. Inefficiency of monopoly6.GDP deflator

3. Low of diminishing marginal utility deadweight loss 5. Fiscal deficit 7. Money multiplayer effect.

Q.2. (A) Differentiate between long run equilibrium between perfect competition & monopolistic competition. (7 marks)

Q.2. (B) How monopolies make production & pricing decision? (7 marks) OR Q.2. (B) Explain kinked demand curve; approach of price & output determination in oligopolistic market structure (7 marks)

Q.3. (A) Is long run average cost curve is a combination of short run cost curves? Discusses in detail (7 marks) Q.3. (B) Qd=2000-8P Qs= 6000 +12P If Govt. imposes the sales tax of 400/- per unit find the increase in the price of the product. (7 marks) OR

Q.3 (A) The utility function of a consumer is u=24x15. If the price of good is Rs. 216 per unit how much consumer will consume. (7 marks) Q.3 (B) A producer produces 200 units of commodity by spending Rs. 1,50,000. He aspects an increase in demand & produces more 100 units. If his total expenditure now is 3,80,000/find marginal cost per unit (7 marks) Q.4 (A) Explain model of aggregate demand & aggregate supply. (7 marks) Q.4 (B) Why monopoly arises? Discusses emerge of natural monopoly. (7 marks)

OR Q.4 (A) Discuss the statement, aggregate demand curve slopes downward (7 marks) Q.4 (B) Explain how decrease in money supply affects the equilibrium interest rate How this changes monitory policy & affects aggregate demand curve? (7 marks)

Q.(5) Write short note on following. marks) 1) Economic profit v/s Accounting profit 2) Consumer Price Index 3) Natural Monopoly 4) Money creation.

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