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Nirmala Memorial Foundation College of Commerce and ScienceStd: S.Y.J.C COMMERCE Subject : Economics

QUESTION BANKQ.1 (A) Fill in the blanks with appropriate words from the brackets:- (05)

(1) Economics is a _________ science.(Natural, Social, Ethical, Technical)

(2) If the price of the inferior goods falls, the demand for them will _____________.(increase, decrease, remain constant, become zero)

(3) Demand for safety pins is _______________.

(elastic, inelastic, perfectly elastic, unitary elastic)(4) Transfer of value is a ______________ function of money.

(primary, secondary, contingent, original)(5) Monopolist means a ________________.

(single seller, several sellers, single buyer, several buyers)(6) _____________ studies about National Income.

(Microeconomics, Macroeconomics, Statistics, Physics)(7) National Income is a _______________ concept.

(stock, flow, micro, non- monetary)(8) ___________ is necessary for capital formation.

(Air, Labour, Saving, Organising)(9) The nature of the market of barter system is ________________.

(wide, limited, personal, social)

(10) In India, paper currency is known as ______________(optional money, legal tender money, cumulative money, lender money)

(11) Commercial banks create _____________.(paper money, metallic money, commodity money, credit money)

(12) To increase credit creation, Central Bank _____________ the debentures.(purchases, sells, borrows, stocks)

(13) In general, the duration of budget is of ___________ months.(twelve, six, nine, fifteen)

(14) To control inflation, there is need of ___________ bank.(Central, State level, Local, Foreign)

(15) Demand of several consumers is called _____________ demand.(Individual, Joint, Market, Independent)

Q.1 (B) Match the following:- (05)

Group A Group B

(a) Consumption function (1) Expenditure on defence

(b) Current Deposits (2) Inverse Relationship

(c) Government Expenditure (3) Electricity

(d) Inelastic Demand (4) High rate of Interest

(e) Price and Demand (5) Less rate of Interest

(f) Elasticity of Demand (6) Average propensity to consume

(g) Aggregate Demand (7) Salt

(h) Propensity to consume (8) Dr. Marshall

(i) Giving loans (9) Lord Keynes

(j) Father of Economics (10) Commercial Bank

(k) Service Utility (11) Adam Smith

(l) Tea and Coffee (12) Prof. Robbins(m) Railway (13) Consumption

(n) Deficit budget (14) Equal relation

(o) Value of Money (15) Not steady

(16) Knowledge by teacher

(17) Substitute goods

(18) Public Monopoly

(19) Expenditure > Revenue

(20) Expenditure = Revenue

(21) Complimentary goods.

Q.1 (C) State whether the following statements are True or False:- (06)(1) Micro Economics theory assumes full employment.

(2) Utility is the basis of Demand.(3) When Demand increases, the demand curve shifts to the left.(4) Perfectly inelastic demand curve is parallel to the X axis.(5) The supply of agricultural commodity is relatively elastic.(6) In a monopoly market, firm and industry are the same.

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(9) Accepting deposits is the only primary function of Commercial Bank.

Q.6 Answer in detail:- (Any 2/4) (16)(1) State and explain the law of demand and its exceptions.(2) State and explain the law of diminishing marginal utility. Explain its assumptions.(3) Explain the functions of Central Bank.(4) Explain the equilibrium between aggregate demand and aggregate supply.(5) Explain the various types of price elasticity of demand.(6) State the features of Macro economics.(7) What is prefect competition? Explain the price determination under perfect competition.(8) Explain the process of credit creation by commercial bank.