GOBIND KUMAR JHA 9874411552

B.Com. (Semester – IV)

Microeconomics & Indian Economy
Model Paper

Module – I
Group – A
Answer any five questions. (2 X 5)

1. Power of monopoly becomes zero when: (P<MC/P>MC/MR=P/P=MC).

2. Which of the following is not a feature of a monopoly market? (single seller/no deadweight loss/differentiated
product/no unique supply curve)
3. The range of discontinuity of MR curve in kinked demand curve model depends on: (difference between AC and
MC/difference between AR and MR/difference between elasticities of two portions of demand curve/none of
these)
4. If product market is monopolistic and factor market is competitive then:
(VMP=MRP/VMP>MRP/VMP<MRP/VMP=0).
5. For a firm in monopolistic competition: (perceived demand curve is the real demand curve/proportional demand
curve is constructed on the basis of perception/perceived demand curve is much more elastic than the
proportional demand curve/perceived demand curve is much more inelastic than the proportional demand
curve).
6. A firm under monopoly market situation in short run equilibrium can have: (normal profit/super normal
profit/loss/all of these).
7. Individual labour supply curve is backward bending when: (Income effect > Substitution effect/Income effect=
Substitution effect/Income effect < Substitution effect/Income effect is zero).
8. In an oligopoly market if every seller sells homogeneous goods then it is called: (collusive oligopoly/non-collusive
oligopoly/pure oligopoly/differentiated oligopoly).
9. Quasi rent implies: (TR – TFC/Profit + TFC/TR – TC/TR – TVC).
10. Which type of the following types of profit is considered to be a part of the cost of production? (super normal
profit/normal profit/monopoly profit/oligopoly profit)

Group – B
Answer any ten questions. (3 X 10)
3
11. If the price elasticity of demand in the monopoly market is 2, the degree of monopoly power is equal to:
3 𝟐 1
(2 / 𝟑 / 2 /0).
1
12. If in monopoly market AR is 50 and MR is 25, then the absolute value of elasticity of demand: (1/2/2/0).
13. In oligopoly market, we find different models because of: (non-existence AR curve/indeterminacy in the
equilibrium/difference in the reaction of the rivals/existence of the selling cost).
14. Which of the following is an example of ‘Cartel’? (IMF/OECD/OPEC/UNO)
15. Natural monopoly arises when: (there is free entry and exit of firms in an industry/a firm has a monopoly in
natural resources/the firm enjoys economies of scale/none of these).
16. If for a monopoly firm P = Rs. 10, MR = Rs. 5 for any particular level of output, and if MPP = 20. What will be the
difference between the value of VMP and MRP? (100/200/300/400)
GOBIND KUMAR JHA 9874411552
17. Consider the following table:
Unit of Factor Price per Factor Total Product MPP VMP
1 50 120 120 6,000
2 50 220 ? 11,000
3 50 300 80 ?
nd rd
What is the MPP for the 2 unit and VMP for the 3 unit respectively? (100, 4000/100, 24000/220, 4000/120,
5000)
18. If the nominal rate of interest is 12% and the rate of inflation is 10.2%. what will be the real rate of interest?
(22.2%;1.8%;12%;10.2%)
19. Which of the following is the profitability condition of price discrimination? (𝑒1 > 𝑒2 , 𝑀𝑅1 ≠ 𝑀𝑅2 /𝑒1 =
𝑒2 , 𝑀𝑅1 > 𝑀𝑅2 /𝒆𝟏 ≠ 𝒆𝟐 , 𝑴𝑹𝟏 = 𝑴𝑹𝟐 /𝑒1 = 𝑒2 , 𝑀𝑅1 = 𝑀𝑅2 )
20. The equilibrium of a firm in a monopoly market takes place in: (inelastic portion of the demand curve/elastic
portion of the demand curve/unitary elastic portion of the demand curve/none of these).
21. If the supply of a factor is perfectly inelastic, then economic rent is: (equal to actual earning/equal to transfer
earning/zero/negative).
22. Net profit is determined from the gross profit by subtracting: (own labour and the opportunity cost of supply of
capital/price of raw materials/cost of wages/cost of risk bearing).
23. In monopolistic competition the long-run equilibrium takes place in the: (rising part of LAC curve/falling part of
LAC curve/minimum point of LAC curve/none of these).
24. In monopoly market, with downward sloping straight line demand curve: (slope of the AR curve is 1/3rd of slope
of MR curve/slope of the MR curve is ½ of the slope of the AR curve/slope of the AR curve is ½ of the slope of
the MR curve/slope of MR curve is ½ of the slope of the TR curve).
25. ‘Rent is a different surplus’ – this statement is associated with: (Modern theory of rent/Ricardian theory of
rent/Keynesian theory of rent/Neo-Keynesian theory of rent).

Module – II
Group – A
Answer any five questions. (2 X 5)
26. Which among the3 following is not considered when the national income is estimated? (the profit of joint stock
companies/the market price of the factors used in the production which is owned by the entrepreneur/income
of the self employed people/transfer earning)
27. The growth of service sector in Indian economy is: (the sign of development/not the sign of development/may
not be the sign of development/may be the sign of development).
28. Which of the following is the part of the institutional reforms in Indian agriculture? (use of high yielding variety
of seeds/cultivation with improved technology/abolition of zamindary system/application of chemical
fertilizers)
29. What percentage of India’s population lives under poverty line? (40%;35%;15%;20%)
30. By the recommendations of which committee under the guidance of Ministry of Finance of the Government of
India in the year 1999 the Insurance Regulatory and Development Authority (IRDA) was established for the
purpose of regulating the insurance system of the country? (Narasimham Committee/Malhotra Committee/Raja
Chelliah Committee/Rangarajan Committee)
31. If we subtract depreciation of capital from the Gross National Product at factor cost, we get:
(𝑁𝑁𝑃𝑀𝑃 /𝑵𝑵𝑷𝑭𝑪 /Real National Product/Nominal National Product).
32. If GDP is subtracted from GNP then we will get: (net factor earning of the National factors of production from
the external countries/depreciation cost/net indirect tax/operational surplus).
33. As a result of green revolution in Indian agriculture: (regional disparity in agricultural production is
observed/inequality of the distribution of income among the farmers is resulted/disparity among the pattern of
the food crops production is seen/all of these).
GOBIND KUMAR JHA 9874411552
34. Which type of the following industries were emphasized in India during the second Five Year Plan (1956 – 61)?
(Rural Small Scale Industries/Heavy Iron and Steel Industries/Textile Industries/Jute Industries)
35. The new economic reforms took place in: (1985/1991/2001/2008).

Group – B
Answer any ten questions. (3 X 10)
36. The relationship between NNP and NDP is: (NNP = NDP – consumption of fixed capital/NNP = NDP +
depreciation cost/NNP = NDP + NFIA/NNP = NDP – NFIA).
37. Which one among those mentioned in the following is the sign of structural weakness of Indian economy? (the
spread of service sector before the full development of the secondary sector/the decline of the importance of
the primary sector in the occupational structure/only the public sector enterprises fall in secondary
sector/failure of the implementation of the modern technologies in the service sector)
38. The partial selling of the ownership (equity share) of public sector unit to private entrepreneur is called:
(employment creation/disinvestment of public sector unit/disinvestment of individual enterprise/disinvestment
of private sector enterprise).
39. According to MSMED Act, 2006 those producing units in India in which capital investment for machines and
machineries is less than Rs. 25 lakhs are designated as: (micro enterprises/medium enterprises/big
enterprises/small enterprises).
40. The type of unemployment that has increased in number in the capitalist system of Indian economy in this era of
globalization is: (disguised unemployment/frictional unemployment/cyclical unemployment/seasonal
unemployment).
41. Which of the following is the reason behind the inequality of income distribution in India? (private ownership of
the property/unemployment and semi unemployment/inflation/all of these)
42. In the era of post economic reforms in India for the balance of trade in external trade: (deficit has increased
gradually/surplus has increased gradually/the amount of deficit has become static/the amount of surplus has
become static).
43. GDP at factor cost can be derived from the GDP at market price by the following method: (𝐺𝐷𝑃fc = 𝐺𝐷𝑃mp −
subsidies + indirect tax/𝑮𝑫𝑷𝐟𝐜 = 𝑮𝑫𝑷𝐦𝐩 −indirect tax + subsidies/𝐺𝐷𝑃fc = 𝐺𝐷𝑃mp − NFIA/𝐺𝐷𝑃fc =
𝐺𝐷𝑃mp − consumption of fixed capital).
44. If in a country for a particular year the nominal gross domestic product is Rs. 50,000 and the real gross domestic
product is Rs. 40,000, then the GDP deflator will be; (80/125/90,000/10,000).
45. Which of these economists said that one of the signs of development is the declining contribution of the primary
sector? (Clark & Fisher/Marshall/Samuelson/Schumpeter)
46. Which of the following does not fall in the recent trend or development of the Indian Banking System? (Merger,
incorporation, take over/Social banking/Squeezing of private banks/Extension of bank credits in priority sectors)
47. Which of the following character does not fall into the characters of new industrial policy of the Government of
India 1991? (introduction of licensing system in industry/reduction of the sphere and role of the public sector
units/abolition of the upper limit to control monopoly and restricted trade/free entry of foreign capital and
foreign technology)
48. The insufficient development of irrigational system in Indian agriculture creates: (frictional
unemployment/seasonal unemployment/disguised unemployment/cyclical unemployment).
49. Which of these is not a condition for adverse BOP situation? (capital account deficit/capital account surplus/fall
in the export earning/sharp rise in import bill)
50. The type of unemployment that has been estimated on the basis of current and daily status by National Sample
Survey Organisation (NSSO) indicates: (seasonal and disguised unemployment/open
unemployment/unemployment in unorganized sector/frictional unemployment).