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PREPARED BY MR. PUNEET DUGGAL (M.Phil ECONOMICS, M.A ECONOMICS, B.ed, Delhi University)
MOCK TEST NO.-3
ECONOMICS - XIIth, SESSION 2010-11

M.Time: 3hrs
Date :- 08-2-2011 M. Marks : 100
Section – A
Introductory Micro- Economics

Q1 Define Increasing MOC.  (1)

Q2 Define Marginal Utility (1)
Q3 What does downward movement along a demand curve Indicate?  (1)
Q4 How can TVC be obtained from the MC curve? (1)
Q5 Why is demand curve of a firm facing a monopolistically competitive firm elastic? (1)
Q6 Depict a production possibility curve. Also show the distinction between an unattainable
combination and an attainable combination.  (3)
Q7 Show the effect of an ↑ in price on total expenditure depending on the value of price elasticity. 
(3)
Q8 Total fixed cost = Rs .60 find ATC and MC at each level of output (3)
Output (unit) 1 2 3
AVC 20 25 24
Q9 Can there be a level of output in which MC rises while AC falls? Why?  (3)
Q10 Explain why under monopoly : 
(a) Marginal revenue is less than average revenue
(b) Price exceeds marginal cost. (3)
Q11 Explain substitution effect and income effect with one example each.  (4)
Q12 A consumer spend Rs. 250 on a good when its price is Rs.5/unit. When the price rises to Rs. 6/unit.
He spend Rs. 240 calculate price elasticity by % age method.  (4)
Q13 one input employed in the production of good,is fixed and other variable – says a budding
economist 
(a) Identify the law behind this statement
(b) What are the possible effect on the TPP. (4)
Q14 Is TR = TC (1)Profit maximization (2)Producer’s equilibrium (3) Break even point. Explain
Producer’s maximum profit situation with diagram (6)
Q15(a) Draw ATC, AVC & MC curve in a single diagram
(b) Can ATC fall when MC rises.
(c) Mr. parker says “ATC reaches its minimum before the minimum of AVC is reached?” Defend or
refute (with a valid reason) (6)
Q16 “If the demand and supply of a commodity both increase, the equilibrium price may not change,
may increase, may decrease.” Explain using diagrams. (6)

SECTION – B
INTRODUCTORY MACRO –ECONOMICS
Q17 Define Investment demand function. (1)
Q18 Define Full Employment. (1)
Q19 What is legal definition of money (1)
Q20 Define Banking. (1)
Q21 When will deficit budget be used? (1)
Q22 Calculate NVA at FC (3)
(1) Indirect taxes 100
(2) Excise duty 50
(3) Sales 1000
(4) Decrease in stock 20
(5) Depreciation 50

PREPARED BY :- MR. PUNEET DUGGAL

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PREPARED BY MR. PUNEET DUGGAL (M.Phil ECONOMICS, M.A ECONOMICS, B.ed, Delhi University)
(6) Purchase of raw material 150
(7) Purchase of services 75
(8) Export 45
(9) Subsidies 25
Q23 Differentiate between central bank & commercial bank. (4)
Q24 What is meant by Quantitative credit control measures? Describe any one method of quantitative
credit control. (4)
Q25 Distinguish between Revenue expenditure and capital receipts
(3)
Q26 State any six items included in BOP of a country. (3)
Q27 Define Govt. Budget. Differentiate between Revenue and Capital Budget. (4)
Q28 What is meant by “disequilibrium in BOP”? What factors cause deficit in BOP? (4)
Q29 From the following income-consumption schedule, calculate (1)Saving, (2) APS and (3) MPC.
(4)
Income(Rs 0 100 200 300 400
Crores)
Consumption 60 110 150 180 200
(Rs. Crores)
Q30 Explain equilibrium determination with C+I approach. Is equilibrium possible only at full
employment. What changes should be there in the investment demand so as to reach full
employment level. (6)
Q31(a) Which among the following are final goods and which are intermediate goods?
(1) Paper purchased by the publisher
(2) Milk purchased by the Household
(3) Machine purchased by a factory. (3)
(b) Differentiate between Real Flow and Money Flow. (3)
Q32 Calculate National Income by Income and Expenditure Method
(1) Private final consumption expenditure 2000
(2) Net compensation of employees 150
(3) Net income from property & entrepreneurship accruing to Govt. departments 50
(4) Net retained of earnings 250
(5) Govt. purchase of goods & services 1000
(6) Net fixed investment expenditure 500
(7) Decrease in stock 10
(8) Gross investment expenditure 250
(9) Rent 100
(10) Interest 200
(11) Profit 250
(12) Undistributed profit 20
(13) Compensation of employees 500
(14) Mixed Income 200
(15) Subsidy 20
(16) Net exports 40
(6)

PREPARED BY :- MR. PUNEET DUGGAL