- Question 1
Answer briefly each of the items (i) to (xv) in this question : [15 ✕ 2 = 30] (i) Define macro economics. (ii) What is cross elasticity of demand? (iii) Define the terms marginal rate of substitution. (iv) Differentiate between international trade and internal trade. (v) Draw a perfectly elastic demand curve. (vi) Mention two factors, other than price, which influence the supply of the commodity. (vii) What is meant by short-run and long-run in production? (viii) Define implicit cost. How is it different from explicit cost? (ix) Why is price per unit equal to the average revenue and marginal revenue? (x) What is product differentiation? (xi) Define Oligopoly. (xii) Draw a diagram to show the real flow and money flow of income under a two sector model of circular flow. (xiii) Why are the following not included in the estimation of the national income : (a) Sale of an old car (b) Winning a lottery (xiv) Distinguish between progressive and proportional tax. (xv) Mention two sources of tax revenue of State Government.