i) All questions in this section are compulsory ii) Marks for questions are indicated against each iii) Answers for very short answer questions carrying 1 mark must be answered in ONE sentence each iv) Answers for short answer questions carrying 3 marks each should not normally exceed 60 words v) Answers for short answer questions carrying 4 marks each should normally not exceed 70 words vi) Answers for long answer questions carrying 6 marks each should not normally exceed 100 words each. vii) Answers should be brief and to the point – The above word limits should be adhered to as far as possible. 1. Name the characteristic which make monopolistic competition different from perfect competition [1]
2. Why is demand for water inelastic? [1]
3. State one feature of oligopoly [1]
4. In which market form is the demand perfectly inelastic? [1]
5. Distinguish between increase in demand and increase in quantity demanded [3]
6. Goods X and Y are substitutes. Explain the effect of a fall in price of Y on the demand for X. [3]
7. At a price of Rs. 5 per unit of a commodity A, total revenue is Rs 800. When its price rises by 20%, total revenue increases by Rs. 400. Calculate its rice elasticity of demand [3]
8. Explain the implication of freedom to entry and exit of firms under perfect competition [3]
9. Given below is the cost schedule of a firm. Its average fixed cost is Rs 20 When it is producing 3 units.
|Output |1 |2 |3 |
|Average Variable cost (Rs.) |30 |28 |32 |
Calculate its marginal cost and average total cost at each given level of output. [3]
10 Explain the features of “What to produce” OR Explain any two main features of centrally planned