Parag Junior college of science and commerce

Preliminary Exam - 1
Subject : Economics marks : 50
Time : 2 hrs

Q.1 (A) Choose the wrong pair. ( 5 marks)

A B
1. Time Utility a) Blood Blank
2. Knowledge utility b) Doctor
3. Total utility c) additional unit
4. Micro Economics d) Lumping method
5. marginal utility e) Total / aggregate units
Options:
1) 1 , 2 ,3 2) 2, 3, 4 3) 3, 4 , 5 4) 1, 4, 5
(B) Complete the following statements. ( 5 marks)
1. When less units are demanded at high price it shows……………..
a) increase in demand
b) expansion of demand
c) decrease in demand
d) contraction in demand
2. MU of commodity becomes negative when TU of commodity is …………………..
a) rising
b) constant
c) falling
d) zero
3.the branch of …………………. Economics deals with allocation of resources.
a) Micro economics
b) Macro economics
 c) Econometrics
d) lumping method
4.Price elasticity of demand on a linear demand curve at the Y axis is equal to ………………
a) zero
b) one
c) infinity
d) greater than one
5. A rightward shift in supply curve slows ……………….
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Q.2 (A) Identify and explain the following concepts from the given illustration.(any 2)
( 6 marks)
1. Gauri collected the information about the income of a particular firm.
2. Pragati purchased sweater for her father in winter season.
3. Ganesh paid wages to workers in his factory and interest on his bank loan.
(B) Distinguish between ( any 2 ) 6 marks
1. Increase in demand and Expansion of demand
2. Total Revenue and Marginal Revenue
3. Micro Economics and Macro Economics
Q.3 Answer the following question ( any 2) 8 marks
1. Explain the Features of macro economics.
2. Explain meaning and features of Monopolistic competition.
3. Explain the exception of law of supply.
Q.4 State with reason whether you are Agree or Disagree with the following statements.
8 marks
1 Price is the only determinant of demand.
2 Hobbies is the only exception of law of DMU.
3 Micro economics is known as Income theory.
Q.5 Study the following table, figure ,passage and answer the following (any 2) 8 marks
1. Observe the market schedule of potatoes and answer the following questions.

Price A B C Market supply

1 ……… 20 45 100
2 37 30 45 …….
3 40 ……. 55 155
4 44 50 ……. 154

1. Complete the quantity of potato supplied by the firms to the market in the above
table.
2. Draw the market supply curve from the schedule and explain it.

2 Observe the table and answer the question

Price of banana Demand Supply Relation between

DD and SS
10 500 100 DD > SS
20 400 ……. DD > SS
30 ……. 300 DD = SS
40 200 ……. DD < SS
50 …….. 500 DD < SS

1. Fill in the blanks in the above schedule.

2. Derive the equilibrium price from the above schedule with the help of a suitable
diagram.

3. Read the given passage and answer the question.

“The conventional notion of social security is that the government would make
periodic payments to look after people in their old age, ill-health, disability and
poverty. This idea should itself change from writing a cheque for the beneficiaries,
including by enabling them to look after themselves, to a large extent.
The write a cheque model of social security is a legacy from the rich world at the
optimal phase of its demographic transition, when the working population was
numerals enough and earning enough to generate the taxes to pay for the care of
those not working. This model is ill- suited for less, well-off India with growing life
expectancy, increasing urbanization and resultant migration. Social security under
urbanization will be different from social security in a static society.
 1. State the conventional notion of social security ?
2. What kind of conceptual change is suggested in the given paragraph ?
3. What is a legacy of social security from the rich world ?
4. Which features of India make the traditional model of social security ill-suited for
the economy ?
Q.6 Answer in detail (any 1 ) 8 marks
1. what is Price Elasticity of Demand ? explain its types?
2. Explain the law of Demand with the help of exception?