ST.

MARYS COLLEGE, YELLAREDDYGUDA, HYDERABAD

QUESTION BANK ECONOMICS I
ESSAY QUESTIONS 10 MARKS
1. What are economic problems? Discuss the primary Economic problems faced by
an economy?
2. Define Robbins definition of Economics and explain its importance.
3. Show how Robins definition of Economics is superior to the Marshallian
definition?
4. Explain the Law of Diminishing Marginal Utility, what are its exceptions?
5. Explain the Law of Equi-marginal Utility and how does it explain the consumers
equilibrium?
6. What is elasticity of demand and explain the various types of elasticity.
7. What are the three methods of measuring Price Elasticity of Demand?
8. Explain the Law of Demand and what are the limitations to the Law?
9. Bring out the criticism against Marginal /Cardinal Utility.
10. What are Indifference Curves and list out its properties?
11. Explain how a consumer reaches equilibrium with the help of Indifference
curves?
12. Explain the Law of Variable proportions, its assumptions and importance.
13. Explain the Law of Returns to Scale. Mention the reasons for different kinds of
returns.
14. Expain economies of scale.
15. Mention the characteristics of Perfect Competition and how are the prices
determined under it?
16. How are the prices determined under Monopoly?
17. Explain Ricardian Theory of rent.
18. What is National Income and explain its components.
19. Explain the various methods of computation of National Income.
20. What are the concepts of National Income? Explain them.
21. What is the importance of National Income estimation and what are the
difficulties faced while calculating them.
22. Explain the concept of effective demand
23. Explain Keynesian Theory of employment.
24. Explain the concept of underemployment equilibrium with the help of a diagram.
25. Explain the functions of RBI.

SHORT ANSWER QUESTIONS 5 MARKS

1. Explain Robins Scarcity Definition of Economics.
2. Give Samuelsons definition of Economics and why is it regarded the
most superior definition?
3.
4.
5.
6.
7.

Jacob Viners definition of Economics.

What are the methods of Economic investigation?
Discuss the static and dynamic analysis of economic theory.
Explain Partial equilibrium with an example.
Distinguish Micro from Macro Economics . How are they
interdependent?

8. Explain the concept of Micro Economics, its scope and importance.

9. Explain the concept of Macro Economics, its scope and importance.
10. Micro and Macro Economics are inter-related Explain.
11. Explain the circular flow of income.
12. Define utility and explain the various forms of utility.
13. Classify the human wants.
14. What are the characteristics of human wants?
15. Distinguish free from Economic goods.
16. Differentiate between Cardinal and Ordinal approaches.
17. What are the factors determining demand?
18. Why does the demand curve slope downwards left to right.
19. What are the factors that determine the price elasticity of demand?
20. . Explain the importance of the concept of elasticity of demand.
21. What is a budget line ?
22. .Explain briefly the concept of MRS.
23. Draw an Indifference curve and a map.
24. Explain production function.
25. What are the important functions of an entrepreneur?
26. What are the factors which influence the efficiency of labor?
27. Explain the factors determining supply.
28. With the help of a graph explain the relationship between AC and MC.
29. Explain the nature of the revenue curves under Perfect Competition.
30. Explain the nature of the revenue curves under Imperfect Competition.
31. Classify markets.
32. Explain the types of Monopoly.
33. Elucidate the features of perfect competition.
34. What are the features of monopoly?
35. Explain the features of imperfect competition.
36. What is price discrimination and what are the methods of price
discrimination?
37. Discuss product differentiation and selling costs under monopolistic
competition.

38. Differentiate between gross and net interest.

39. What are the elements of gross profit?
40. Explain Transfer earnings.
41. What are the factors which determine the national income?
42. Explain the wage cut policy.
43. Explain the methods of debt redemption.
44. What are the various sources of public revenue?
45. What are the various items of the public expenditure?
46. Distinguish between balance of trade and payment.
47. Explain the difficulties of barter system.
48. Explain the functions of money.
49. Enumerate the activities of the commercial banks.
50. Explain inflation and its effects.
VERY SHORT ANSWERS 2 MARKS
1. Choice problem
2. Consumption
3. Capital goods
4. Utility
5. Exchange Value
6. Deductive Method
7. Inductive Method
8. Economic Statics
9. Economic Dynamics
10. Partial Equilibrium
11. General Equilibrium.
12. Micro Economics
13. Macro Economics
14. Alternative uses.
15. Value
16. Price
17. Economic Goods
18. Exchange value
19. Wealth
20. Income
21. Capital goods
22. Consumer goods
23. Intermediary goods
24. Cardinal Utility
25. Ordinal Utility.
26. Total Utility.
27. Marginal Utility.
28. Demand
29. Individual Demand Schedule
30. Market demand schedule.

31. Prestigious goods

32. Demand function
33. Inferior Goods
34. Speculation.
35. Price Demand.
36. Demand Schedule.
37. Giffens Paradox.
38. Extension and contraction of demand.
39. Income Demand.
40. Cross Demand.
41. Complementary / substitute goods.
42. Comsumers Equilibrium
43. Elasticity of demand.
44. Price elasticity of demand.
45. Income elasticity.
46. Cross elasticity.
47. Unitary elastic demand.
48. Perfectly elastic demand
49. Perfectly inelastic demand .
50. Arc Method.
51. Production Function.
52. Enreprenuers.
53. Production.
54. Economies of scale.
55. Iso-utility curve.
56. Indifference schedule
57. Indifference Map
58. Budget line or price line.
59. Equilibrium according to Indifference curve.
60. Fixed Factors.
61. Indifference curve.
62. Variable Factors
63. Fixed Factor
64. Land
65. Labor
66. Capital
67. Diseconomies.
68. Real Cost
69. Opportunity Cost
70. Money cost
71. Stock and supply.
72. Average Product
73. Fixed Cost.
74. Variable Cost.
75. Marginal Cost
76. Average Cost

77. Marginal Product

78. Supply
79. Supply Schedule.
80. Marginal Revenue.
81. Average Revenue.
82. Total Revenue
83. Supply Function.
84. Supply Schedule.
85. Market Supply.
86. Market
87. Local Market
88. National Market
89. Perfect Competition.
90. Monopolistic Competition
91. Market.
92. Monopoly.
93. Oligopoly
94. Duopoly
95. Market Period
96. Short Period
97. Long Period
98. Equilibrium Price
99. Price Discrimination
100.
Equilibrium of a firm
101.
Product Differentiation
102.
Selling Costs
103.
Quasi Rent
104.
Economic Rent.
105.
Time Wages.
106.
Money Wages
107.
GNP
108.
Per Capita Income
109.
Contract Rent.
110.
Depreciation
111.
Classical Economics
112.
Disposable Income.
113.
Laissez Faire
114.
J.B.Says Laws of Market.
115.
Market Mechanism.
116.
Full Employment.
117.
Aggregate Demand Function.
118.
Aggregate Supply Function.
119.
Effective Demand
120.
Differnces between revenue account and capital Account.
121.
Differewnces between internal and external debt.
122.
Structure of budget..

123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.

Deficit Budget.
Invisible Items.
Balance of payment.
Advantages of international Trade.
Fiscal Deficit.
Double coincidence of wants.
Standard of deferred payments
Store of value
Near Money
Liquidity.
Currency.
Credit Money.
Token Money
Time Deposits
Recurring Deposits.
Demand Deposits
Cash Credit
Discounting of bills of exchange
Creation of credit
Clearance House
Lender of last resort
Reserve Money
Reserve Bank of India
Meaning of Inflation
Demand Pull Inflation
Cost Push- Inflation
Hyper Inflation
Inflation Rate
Inflation and Value of Money
Over Draft.
Limited Legal Tender