Economics Test Questions
ECO OMICS
(Three hours)
(Candidates are allowed additional 15 minutes for only reading the paper.
They must OT start writing during this time.)
---------------------------------------------------------------------------------------------------------------Answer Question 1 (compulsory) from Part I and five questions from Part II.
The intended marks for questions or parts of questions are given in brackets [ ].
----------------------------------------------------------------------------------------------------------------
PART I (20 Marks)
Answer all questions.
Question 1
Answer briefly each of the following questions (i) to (x):
[10 × 2]
(i)
Define private cost and social cost.
(ii)
What is meant by balance of payment?
(iii)
Differentiate between exante and expost demand.
(iv)
Explain the meaning of gross national disposable income.
(v)
Why is the AR curve parallel to the x axis in a perfectly competitive market?
(vi)
What is meant by utility? Explain how total utility can be obtained from marginal utility. (vii)
Define budget. When can there be a deficit in the budget?
(viii) Explain the meaning of price discrimination in monopoly market.
(ix)
Define cross elasticity of demand.
(x)
How does Central Bank use moral suasion as a tool to control credit?
1
ISC Specimen Question Paper 2014
PART II (60 Marks)
Answer any five questions.
Question 2
(a)
(b)
(c)
Discuss how the following can affect the demand curve of a commodity:
(i) Change in the taste and preferences of a consumer.
(ii) Change in the income of a consumer.
Explain marginal rate of substitution with the help of an example.
Explain with the help of a diagram the relationship between total utility and marginal utility.
[3]
[3]
[6]
Question 3
(a)
Derive a market demand schedule from two hypothetical individual demand schedules. [3]
(b)
Explain the percentage method of calculating elasticity of
(Three hours)
(Candidates are allowed additional 15 minutes for only reading the paper.
They must OT start writing during this time.)
---------------------------------------------------------------------------------------------------------------Answer Question 1 (compulsory) from Part I and five questions from Part II.
The intended marks for questions or parts of questions are given in brackets [ ].
----------------------------------------------------------------------------------------------------------------
PART I (20 Marks)
Answer all questions.
Question 1
Answer briefly each of the following questions (i) to (x):
[10 × 2]
(i)
Define private cost and social cost.
(ii)
What is meant by balance of payment?
(iii)
Differentiate between exante and expost demand.
(iv)
Explain the meaning of gross national disposable income.
(v)
Why is the AR curve parallel to the x axis in a perfectly competitive market?
(vi)
What is meant by utility? Explain how total utility can be obtained from marginal utility. (vii)
Define budget. When can there be a deficit in the budget?
(viii) Explain the meaning of price discrimination in monopoly market.
(ix)
Define cross elasticity of demand.
(x)
How does Central Bank use moral suasion as a tool to control credit?
1
ISC Specimen Question Paper 2014
PART II (60 Marks)
Answer any five questions.
Question 2
(a)
(b)
(c)
Discuss how the following can affect the demand curve of a commodity:
(i) Change in the taste and preferences of a consumer.
(ii) Change in the income of a consumer.
Explain marginal rate of substitution with the help of an example.
Explain with the help of a diagram the relationship between total utility and marginal utility.
[3]
[3]
[6]
Question 3
(a)
Derive a market demand schedule from two hypothetical individual demand schedules. [3]
(b)
Explain the percentage method of calculating elasticity of