BEST HIGHER SECONDARY SCHOOL FIRST TEST-I ECONOMICS XI-COMMERCE /9/2010 MARKS 50 TIME 2 HOURS 10

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SECTION A SELECT THE CORRECT ALTERNATIVE FROM QUESTIONS Economics is alternatively known as science of ________. A trade B money C economizing D society Contraction of a demand is a result of (a) Decrease in number of consumer. (b) Increase in a price of the goods concern. (c) Increase in price of other goods (d) Decrease in income of purchase 1. Second glass of lemonade giver lesser satisfaction to a thirsty boy this is a clear case of (a) law of demand (b) law of diminishing returns (c) law of diminishing utility (d) law of supply The slope of budget line indicates the ratio of how many commodities A two B three C four D many If demand is 50 units at Rs 50 in July and if demand is 200 units when price is Rs 50 in August What is price elasticity of demand? A 1 B 0 C 2 D If the local pizza shop raise the price of medium pizza Rs. 60 to Rs. 100 the quantity demand fall from 700 100 pizza find the price elasticity of pizza is (a) 0.67 (b) 1.28 (c) 2 (d) 3 ________ is an apex bank of agriculture credit in India (a) RBI (b) SIDBI (c) NABARD (d) ICICI Which of the following statement about money is incorrect (a) there are many assets which carry attribute on money (b) money is what money does (c) in modern sense money has stability, high degree of substitutability and physibility of measuring the statistical variation (d) none of above In order to control credit in a country RBI may (a) buy security in open market (b) sell security in open market (c) reduce CRR (d) reduce bank rate ________ control effect indiscriminately

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(a) (b) (c) (d)

selectively credit quantitative marginal requirement none of the above 8

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Section B Answer the following in one sentence What is cross elasticity of demand? Complete the following table Amount 1 2 3 4 5 Consumed Total utility 50 90 ____ 140 150 Marginal 50 _____ 30 ____ ____ utility State the full form ICICI During the Christmas the King fisher flights reduced the fairs from Ahmedabad to Goa by 50% how will it effect the demand curve of executive class in railway tickets What is Adam smith definition of economics? If quantity demanded of commodity X decreases as the house hold income increase what type of good X is? What is indifference curve? What is margin requirement? Section C Answer the following State Marshall definition of economics? State the law of diminishing marginal utility? State its exceptions Which of following commodities have inelastic demand A salt B a particular brand of lipstick C Medicine D mobile phones E school uniform Explain expansion and contraction of demand? A consumer buys 40 units of product at Rs 5 per unit and the price elasticity of demand is (-)1.5 Calculate the amount he will buy at Rs 4 per unit of product Section D Answer the following questions to the point Define demand ? State the law of demand? State its exception? What is price elasticity of demand? Explain types of price elasticity of demand? Write a note on Demand for money Section E Answer the following questions in detail Explain factors responsible for existence of economic problem? Explain different method of measuring price elasticity of demand? Or Explain the functions of central Bank of the country BEST OF LUCK

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