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Time Allowed : 3 Hours Full Marks : 100

The figures in the margin on the right side indicate full marks.
$% (60 Marks)
Answer "uestion No. 1 which is compulsory and any two Irom the rest.
Marks
1. (a) Answer the Iollowing : 1x9

(i) Name the author oI "Weath oI Nations".
(A) Adam Smith
(B) AlIred Marshall
(C) J.K.Mehta
(D) A.C.Pigou


(ii) Economics is
(A) Science
(B) An Art
(C) Science and an Art
(D) Psychology


(iii) Deductive Method oI Economic Analysis is based on
(A) General to Particular
(B) Particular to General
(C) Neutral
(D) None oI the above


(iv) Money supply constitutes
(A) Rupee notes and coins with the public
(B) Credit cards
(C) Traveller`s cheques
(D) All the above


(v) Consumers surplus was propounded by
(A) AlIred Marshall
(B) A.C. Pigou
(C) J.R.Hicks
(D) J.M.Keynes


(vi) Production Iunction is
(A) Inputoutput relationship
(B) Creation oI utility
(C) Want satisIying capacity
(D) None oI the above

(vii) Homogeneous product is the characteristic oI

(A) PerIect competition


(B) Monopoly
(C) Monopolistic competition
(D) Oligopoly


(viii) Nonprice competition is the characteristic oI
(A) Monopoly
(B) Duopoly
(C) Oligopoly
(D) ImperIect competition


(ix) A producer or seller selling its commodity at diIIerent prices to
diIIerent customers is
(A) Discriminating Monoploy
(B) Monopoly
(C) PerIect competition
(D) Duopoly

(b) Fill in the blanks : 1x12


(i) NNP at market price is GNP depreciation oI capital stock.

(ii) GNP is a wider concept than .

(iii) Average propensity to consume is to c/y.


(iv) The production oI Ioodgrains according to Malthus increases at an
progression.


(v) Over population is corrected by preventive checks and
checks.

(vi) The Iormula Ior the calculation oI optimum population is .

(vii) Fisher`s equation is .

(viii) Money is created by the bank.


(ix) Demand Pull inIlation is when aggregate demand aggregate
supply.

(x) When there is continuous rise in price level, it is called .

(xi) Cheap money policy is Iollowed by central bank during .


(xii) Economy in administration is one oI the measures
during inIlation.

(c) State which oI the Iollowing statement is "True" and which is "False".: 1x9
(i) Credit is created by commercial banks.

(ii) Adequate liquidity is an essential condition oI a sound banking system.

(iii) Size oI C.R.R. does not aIIect the credit creation oI commercial banks.

(iv) Central bank is the custodian oI Ioreign exchange reserves.

(v) Expansion and contraction oI credit are aIIected by quantitative

techniques oI credit control.



(vi) Use and direction oI credit are aIIected by qualitative techniques oI
credit control.

(vii) Balance oI trade comprises oI exports and imports.

(viii) Balance oI payments is broader than balance oI trade.

(ix) Invisible items are included in exports and imports.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Direct Tax,

(ii) Conon oI Economy,

(iii) DeIicit Financing,

(iv) Fiscal Policy,

(v) Monetary Policy,

(vi) Progressive Tax.

2. Write short notes on the Iollowing: 66


(a) Functions oI Money

(b) Fixed costs and Variable costs.

3. Describe the |45- () () () 27021| essentials oI a sound banking system and salient
Ieatures oI International trade.
66

4. Discuss the Canons oI Taxation. 12

$% (40 Marks)
nswer "uestion No. 5 which is compulsory and any two from the rest.
5. (a) Answer the Iollowing : 1x6

(i) All business activities Iall under the categories oI
(A) Industry
(B) Trade
(C) Commerce
(D) All the above


(ii) Salient Ieatures oI a cooperative are
(A) Voluntary Association
(B) Service Motive
(C) Equality
(D) All the above


(iii) Characteristics oI Joint Stock Company are
(A) Incorporated Association
(B) Voluntary Association
(C) ArtiIicial legal person
(D) All the above


(iv) Which is not the merit oI state enterprise?
(A) Easy Iormation
(B) Acceleration oI economic growth
(C) Balanced regional development
(D) Economy


(v) Advantages oI limited partnership are
(A) Enables people to invest
(B) Mobilises larger Iinancial resources
(C) More stable
(D) All the above


(vi) Which is not the characteristic oI Joint Hindu Family Business?
(A) No registration
(B) Only male members
(C) Status arises not born in the Iamily
(D) Managed by Karta.

(b) Fill in the blanks: 1x6


(i) A chartered company is incorporated under .


(ii) Unlimited liability oI a company means on the liability oI its
members.


(iii) A private limited company is better placed to maintain oI the
aIIairs oI business.


(iv) The promoter must not make any Irom the company that he has
promoted.

(v) Memorandum oI Association is one oI the basic oI the company.


(vi) The Iirst oIIicial general meeting oI shareholders is called
meeting.

(c) State which oI the Iollowing statement is "True" and which is "False": 1x6

(i) One oI the social responsibilities oI a business is to protect consumer
interest.


(ii) SWOT analysis deals with strength, weaknesses, opportunities and threats
oI a business.

(iii) W.T.O. is not a part oI international environment.

(iv) Clarity oI message is one oI the principles oI eIIective communication.

(v) Motivation to employees is not an objective oI communication.


(vi) Sending Written message through telecommunication link is called e
mail.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Stock Exchange,

(ii) Jobbers,

(iii) Stag,

(iv) Contract note,

(v) Brokers,

(vi) Forward delivery contracts.

6. Write short notes on: 44


(a) Registration oI partnership;

(b) Salient Ieatures oI public company.

7. Discuss the various objectives oI a business. 8

8. Describe the essential elements in the process oI an eIIective communication


system.
8

Syllabus 28
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
$% (Marks 60)
nswer "uestion No.1 which is compulsory and any two from the rest.
Marks
1. (a) Answer the Iollowing : 1x9

(i) Economics is
(A) normative science
(B) positive science
(C) human science
(D) political science


(ii) Deductive method involves
(A) Moving Irom general to particular
(B) Moving Irom particular to general
(C) Using mathematical reasoning
(D) Applying ethical reasoning


(iii) PortIolio investment means
(A) Depositing money into a company
(B) Buying debenture oI a company
(C) Buying shares oI a company
(D) Investing in Iixed assets


(iv) Diamondwater paradox is explained through
(A) Law oI substitution
(B) Law oI exchange

(C) Law oI supply


(D) Law oI diminishing marginal utility


(v) Theory oI Demographic transition was developed by
(A) Malthus
(B) Pigou
(C) Walker
(D) Keyness


(vi) Bank rate policy is a
(A) "uantitative method
(B) "ualitative method
(C) Optional method
(D) Fiscal method


(vii) The theory oI absolute cost advantage was developed by
(A) David Recardo
(B) Malthus
(C) Adam Smith
(D) Marshall


(viii) Balance oI Trade
(A) Includes balance oI payments statement
(B) Excludes balance oI payments
(C) Includes value oI merchandise transaction alone
(D) Includes value oI service transactions


(ix) Direct taxes
(A) Are shiItable
(B) Are not shiItable
(C) ReIlect economic health
(D) AIIect social welIare

(b) Fill in the blanks : 1x12



(i) Backward bending supply curve oI labour indicates that labour
preIers to work at a high wage rate.

(ii) Total economic costs Explicit costs Normal proIit.

(iii) Internal economies accrue to a Iirm when it .


(iv) When consumer is made to pay one price upto a certain amount oI
purchase and another price Ior purchases exceeding this amount, it is
called price discrimination oI degree.

(v) Net national product is also called .


(vi) Cross elasticity oI demand relates price oI one good and demand Ior
good.

(vii) Investment multiplier Change in Y/Change in .

(viii) Creation oI Saving and its productive investment is called .

(ix) Iunction oI money makes it available Ior Iuture use.


(x) Central Bank`s persuasive method to control the Iunctioning oI the
commercial banks is called .


(xi) The bank which was established in 1985 to rehabilitate the sick
industrial units with authorized capital oI Rs.2.5 crores is .

(xii) Paper Gold is also called .

(c) State which oI the Iollowing statement is "True" and which is "False".: 1x9

(i) The existence oI oligopoly in the longrun requires the existence oI
Iree entry oI the new Iirms.


(ii) Adding value oI all goods and services produced to arrived
at national income oI a country is called income method.


(iii) Ratio oI consumption to income is called marginal propensity to
consume.


(iv) Ralating Iood production rate and population rate is Optimum Theory
oI Population.


(v) Aggregate demand remaining the same, a Iall
in aggregate supply results in cost push inIlation.

(vi) Increased velocity oI circulation oI money causes recession.


(vii) The IFC (TransIer oI Undertaking and Repeal) Bill passed on March
24, 1993 privatised the IFC.


(viii) Mutual Iunds operations in Private sector and joint sector are closely
monitored by SEBI.


(ix) Factor cost diIIerences occur because oI diIIerent Iactor endowments
in diIIerent countries.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Marginal product:

(ii) Real diIIerentiation:

(iii) Gresham`s law;

(iv) Credit creation;

(v) Regressive taxation;

(vi) DeIicit Iinancing.

2. What are the causes oI inIlation? |42- () () () 32474| What are its eIIects? How
would you control it?
444

3. Write short notes on the Iollowing: 66


(a) Factors aIIecting supply;

(b) Costoutput relationship during short period.

4. Explain the law oI diminishing marginal utility. |48- (Theory) (Short) () 84

32478| What are the limitations oI the law?


$% (Marks 40)
nswer "uestion No. 5 which is compulsory and any two from the rest.
Marks
5. (a) Answer the Iollowing : 1x6

(i) AIter incorporation, a company conducts a meeting to deal with
(A) Issue oI prospectus
(B) Appointment oI broker Ior underwriting shares
(C) Appointment oI a protem secretary
(D) All the above


(ii) In a stock exchange
(A) any security can be transacted
(B) only listed securities can be transacted
(C) only securities oI private companies be traded
(D) any common person can conduct transaction directly


(iii) A stag operates
(A) to buy at a high price and sell at a low price
(B) to buy shares at a high price to make proIit in due course
(C) to avoid buying at a high price but attempts to sell at a high price
(D) to enter into Iorward contracts


(iv) Schematic Iormat oI a report includes
(A) subheadings
(B) sequential subheadings
(C) emergency communication
(D) All the above


(v) Subsidiary company is one in which
(A) more than 40 shares are held by other company
(B) majority oI directors are appointed by the Government
(C)
more than 50 oI the paidup equity share capital is held by another
company
(D) shareholders oI the company Iorm the majority


(vi) Social environment includes
(A) Taxation policies
(B) Culture and traditions
(C) "uality improvement
(D) Foreign direct investment

(b) Fill in the blanks: 1x6


(i) A person who just lends his name and reputation Ior the beneIit oI the

Iirm without taking active part is called .



(ii) Equity shares issued at a discount or Ior consideration other than cash Ior
providing know how or making available rights in the nature oI
intellectual property rights are called .


(iii) To alter a clause oI memorandum oI association, a resolution is
required.

(iv) The Securities Contracts (Regulation) Act was passed in .


(v) When a buyer oI a share acquires a share without any right to receive the
dividend declared is called .


(vi) Key result areas technique was suggested to discuss the business
objectives by .

(c) State which oI the Iollowing statement is "True" and which is "False": 1x6
(i) Joint Hindu Family Business requires registration.

(ii) Registration oI partnership is a statutory compulsion.

(iii) A company is a voluntary association.


(iv) Minimum subscription is necessary to cover underwriting commissions
on sale oI shares.


(v) Bargain price order speciIies the price at which the broker can buy or sell
the security.

(vi) Complimentary close in a letter reIers to the signature oI the sender.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Unlimited liability;

(ii) Contingent dissolution;

(iii) Organic objective;

(iv) Company limited by guarantee;

(v) Barriers to communication;

(vi) Lame duck.

6. Write short notes on: 44


(a) Memorandum oI Association;

(b) Salient Ieatures oI a good business letter.

7. What is stock exchange? |33- (Theory) (Very Short) () 32511| Discuss the
Iunctions oI stock exchange.
26

8. State the meaning oI business environment. |35- (Theory) (Very Short) () 32513|
Discuss the various types oI business environment.
26

Syllabus 28
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
$% (Marks 60)
nswer "uestion No.1 which is compulsory and any two from the rest.
Marks
1. (a) Answer the Iollowing : 1x9

(i) Economics is
(A) normative science
(B) positive science
(C) human science
(D) political science


(ii) Deductive method involves
(A) Moving Irom general to particular
(B) Moving Irom particular to general
(C) Using mathematical reasoning
(D) Applying ethical reasoning


(iii) PortIolio investment means
(A) Depositing money into a company
(B) Buying debenture oI a company
(C) Buying shares oI a company
(D) Investing in Iixed assets


(iv) Diamondwater paradox is explained through
(A) Law oI substitution
(B) Law oI exchange
(C) Law oI supply
(D) Law oI diminishing marginal utility


(v) Theory oI Demographic transition was developed by
(A) Malthus
(B) Pigou
(C) Walker
(D) Keyness


(vi) Bank rate policy is a
(A) "uantitative method
(B) "ualitative method
(C) Optional method
(D) Fiscal method


(vii) The theory oI absolute cost advantage was developed by
(A) David Recardo
(B) Malthus

(C) Adam Smith


(D) Marshall


(viii) Balance oI Trade
(A) Includes balance oI payments statement
(B) Excludes balance oI payments
(C) Includes value oI merchandise transaction alone
(D) Includes value oI service transactions


(ix) Direct taxes
(A) Are shiItable
(B) Are not shiItable
(C) ReIlect economic health
(D) AIIect social welIare

(b) Fill in the blanks : 1x12



(i) Backward bending supply curve oI labour indicates that labour
preIers to work at a high wage rate.

(ii) Total economic costs Explicit costs Normal proIit.

(iii) Internal economies accrue to a Iirm when it .


(iv) When consumer is made to pay one price upto a certain amount oI
purchase and another price Ior purchases exceeding this amount, it is
called price discrimination oI degree.

(v) Net national product is also called .


(vi) Cross elasticity oI demand relates price oI one good and demand Ior
good.

(vii) Investment multiplier Change in Y/Change in .

(viii) Creation oI Saving and its productive investment is called .

(ix) Iunction oI money makes it available Ior Iuture use.


(x) Central Bank`s persuasive method to control the Iunctioning oI the
commercial banks is called .


(xi) The bank which was established in 1985 to rehabilitate the sick
industrial units with authorized capital oI Rs.2.5 crores is .

(xii) Paper Gold is also called .

(c) State which oI the Iollowing statement is "True" and which is "False".: 1x9

(i) The existence oI oligopoly in the longrun requires the existence oI
Iree entry oI the new Iirms.


(ii) Adding value oI all goods and services produced to arrived
at national income oI a country is called income method.


(iii) Ratio oI consumption to income is called marginal propensity to
consume.

(iv) Ralating Iood production rate and population rate is Optimum Theory

oI Population.

(v) Aggregate demand remaining the same, a Iall
in aggregate supply results in cost push inIlation.

(vi) Increased velocity oI circulation oI money causes recession.


(vii) The IFC (TransIer oI Undertaking and Repeal) Bill passed on March
24, 1993 privatised the IFC.


(viii) Mutual Iunds operations in Private sector and joint sector are closely
monitored by SEBI.


(ix) Factor cost diIIerences occur because oI diIIerent Iactor endowments
in diIIerent countries.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Marginal product:

(ii) Real diIIerentiation:

(iii) Gresham`s law;

(iv) Credit creation;

(v) Regressive taxation;

(vi) DeIicit Iinancing.

2. What are the causes oI inIlation? |42- () () () 32474| What are its eIIects? How
would you control it?
444

3. Write short notes on the Iollowing: 66


(a) Factors aIIecting supply;

(b) Costoutput relationship during short period.

4. Explain the law oI diminishing marginal utility. |48- (Theory) (Short) ()


32478| What are the limitations oI the law?
84

$% (Marks 40)
nswer "uestion No. 5 which is compulsory and any two from the rest.
Marks
5. (a) Answer the Iollowing : 1x6

(i) AIter incorporation, a company conducts a meeting to deal with
(A) Issue oI prospectus
(B) Appointment oI broker Ior underwriting shares
(C) Appointment oI a protem secretary
(D) All the above


(ii) In a stock exchange
(A) any security can be transacted
(B) only listed securities can be transacted

(C) only securities oI private companies be traded


(D) any common person can conduct transaction directly


(iii) A stag operates
(A) to buy at a high price and sell at a low price
(B) to buy shares at a high price to make proIit in due course
(C) to avoid buying at a high price but attempts to sell at a high price
(D) to enter into Iorward contracts


(iv) Schematic Iormat oI a report includes
(A) subheadings
(B) sequential subheadings
(C) emergency communication
(D) All the above


(v) Subsidiary company is one in which
(A) more than 40 shares are held by other company
(B) majority oI directors are appointed by the Government
(C)
more than 50 oI the paidup equity share capital is held by another
company
(D) shareholders oI the company Iorm the majority


(vi) Social environment includes
(A) Taxation policies
(B) Culture and traditions
(C) "uality improvement
(D) Foreign direct investment

(b) Fill in the blanks: 1x6



(i) A person who just lends his name and reputation Ior the beneIit oI the
Iirm without taking active part is called .


(ii) Equity shares issued at a discount or Ior consideration other than cash Ior
providing know how or making available rights in the nature oI
intellectual property rights are called .


(iii) To alter a clause oI memorandum oI association, a resolution is
required.

(iv) The Securities Contracts (Regulation) Act was passed in .


(v) When a buyer oI a share acquires a share without any right to receive the
dividend declared is called .


(vi) Key result areas technique was suggested to discuss the business
objectives by .

(c) State which oI the Iollowing statement is "True" and which is "False": 1x6
(i) Joint Hindu Family Business requires registration.

(ii) Registration oI partnership is a statutory compulsion.

(iii) A company is a voluntary association.


(iv) Minimum subscription is necessary to cover underwriting commissions
on sale oI shares.


(v) Bargain price order speciIies the price at which the broker can buy or sell
the security.

(vi) Complimentary close in a letter reIers to the signature oI the sender.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Unlimited liability;

(ii) Contingent dissolution;

(iii) Organic objective;

(iv) Company limited by guarantee;

(v) Barriers to communication;

(vi) Lame duck.

6. Write short notes on: 44


(a) Memorandum oI Association;

(b) Salient Ieatures oI a good business letter.

7. What is stock exchange? |33- (Theory) (Very Short) () 32511| Discuss the
Iunctions oI stock exchange.
26

8. State the meaning oI business environment. |35- (Theory) (Very Short) () 32513|
Discuss the various types oI business environment.
26


!
Syllabus 28
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
$% (Marks 60)
nswer "uestion No.1 which is compulsory and any two from the rest.
Marks
1. (a) Answer the Iollowing : 1x9

(i) Scarcity deIinition was given by:
(A) L.Robbins
(B) AlIred Marshall
(C) J.M.Keynes
(D) Adam Smith


(ii) Real Investment comprises oI:
(A) Machine
(B) Shares
(C) Debenture
(D) Bond


(iii) Consumers surplus was propounded by:
(A) AlIred Marshall
(B) Pigou
(C) Malthus
(D) Robbins


(iv) Law oI demand explains:
(A) "uantitative relationship
(B) "ualitative relationship
(C) Functional relationship
(D) None oI the above.


(v) Exception to the law oI supply is:
(A) Agricultural product
(B) Scarce goods
(C) Labour market
(D) All the above.


(vi) Economic costs comprise oI:
(A) Explicit costs
(B) Implicit costs
(C) Normal proIit

(D) All the above.




(vii) Homogeneous product is the characteristic oI:
(A) PerIect competition
(B) Monopoly market
(C) Monopolistic competition
(D) Oligopoly


(viii) Types oI price discrimination are:
(A) Price discrimination oI Iirst degree
(B) Price discrimination oI second degree
(C) Price discrimination oI third degree
(D) All the above.


(ix) Nonprice competition exists in:
(A) Monopoly market
(B) Oligopoly
(C) Monopolistic competition
(D) Discriminating monopoly.

(b) Fill in the blanks : 1x12


(i) Net National Product Gross National Product minus

(ii) Per Capita Income National Income.


(iii) National Income data depict the oI Income among
economic units.

(iv) Labour cannot be separated Irom .

(v) Essay on the Principle oI Population was written by .

(vi) Formula Ior calculating optimum population is .

(vii) Visible items comprise oI exports and .


(viii) Comparative Cost Theory oI International Trade was propounded by
.

(ix) Balance oI payment is than Balance oI Trade.


(x) Money is a matter oI Iunctions Iour:
a medium, a measure, a standard and a .

(xi) "uantitative Theory oI Money was propounded by

(xii) Cash Balance Approach is based on the oI money.

(c) State which oI the Iollowing statement is true` and which is Ialse`. 1x9

(i) There is continuous rise in price level and the value oI money
decreases during inIlation.

(ii) Dear Money Policy is adopted during inIlation.

(iii) There is glut oI goods during deIlation.

(iv) Central Bank creates credit.

(v) Cash Reserve Ratio is a limitation oI credit creation.

(vi) IFCI was set up in July 1948.

(vii) Unit Trust oI India is an Investment Bank.

(viii) International Monetary Fund stabilises the Ioreign exchange rate.

(ix) Special Drawing Rights Iacilitate the international liquidity.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Indirect Tax,

(ii) Proportional Tax,

(iii) Principle oI Certainty,

(iv) Bank Rate,

(v) Marginal Cost,

(vi) Cash Reserve Ratio.

2. DeIine Central Bank. Discuss its various Iunctions. 210

3. Write short notes on the Iollowing: 444


(a) Characteristics oI PerIect Competition;

(b) Consumption Function;

(c) DeIicit Financing.

4. What is EXIM Bank? |48- (Theory) (BrieI) () 42142| What are its Iunctions?
State the three dimensional strategy` developed by the EXIM Bank.
444

$% (Marks 40)
nswer "uestion No. 5 which is compulsory and any two from the rest.
Marks
5. (a) Answer the Iollowing : 1x6

(i) Economic activities are those which are inspired by:
(A) Spiritual needs
(B) The desire to earn money
(C) Desire to help mankind
(D) All the above.


(ii) In a limited liability partnership:
(A) All partners have limited liability
(B) All partners have unlimited liability
(C) Some partners have limited liability
(D) Some partners have no liability at all.


(iii) Minimum number oI members needed Ior a public company is:
(A) 9
(B) 7

(C) 5
(D) 2


(iv) Which oI the Iollowing is not a social obligation Ior a Iirm:
(A) Avoiding antisocial practices
(B) Maintaining a healthy environment
(C) Ensuring job satisIaction oI employees
(D) Earning adequate proIit.


(v) Organised stock exchange in the country was started in Bombay in
(A) 1877
(B) 1939
(C) 1977
(D) 1907.


(vi) Latest developments in communications media include:
(A) Email
(B) SMS
(C) VideoconIerencing
(D) All the above.

(b) Fill in the blanks : 1x6


(i) A company is an association.


(ii) The quorum at the annual general meeting in case oI a private
company is .


(iii) Government policies are an important part oI
environment oI a company.


(iv) No person can be a member oI a stock exchange iI he is less than
years oI age.


(v) Written communication provides a record Ior Iuture
reIerence.

(vi) The main motive oI state enterprises is to render .

(c) State which oI the Iollowing statement is "True" and which is "False": 1x6
(i) The liability oI a sole proprietor is always limited.

(ii) The Company Law has not given any legal status to promoter.


(iii) The same environment may oIIer opportunities to some Iirms and
threats to some other Iirms.

(iv) A stock market encourages capital Iormation.

(v) A stock exchange deals with the securities oI all companies.


(vi) For communication to be eIIective, it must be communicator
oriented.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Trade secretary.

(ii) Partner by estoppel.

(iii) A multinational company.

(iv) CertiIicate oI commencement oI business.

(v) Stock Exchange Clearing House.

(vi) Forward delivery contracts.

6. Write short notes on the Iollowing: 44


(a) Merits oI Limited Liability Partnership;

(b) Shares and Debentures.

7. What is listing oI securities? |82- (Theory) (Very Short) () 42176| What are
the steps involved in completing a transaction through stock
exchange broker?
26

8. What is communication? |84- (Theory) (Very Short) () 42178| Explain


Encoding, Decoding and Feedback as the elements in the process oI
communication.
2222


Syllabus 28
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
$% (Marks 60)
nswer "uestion No.1 which is compulsory and any two questions from the rest of section I.
Marks
1. (a) Answer the Iollowing : 1x9

(i) Deductive method is also known as
(A) Hypothetical Method
(B) Abstract Method
(C) Priori Method
(D) All oI the above


(ii) An individual demand curve slopes downwards to the right because
(A) Income eIIect oI Iall in price
(B) Substitution eIIect oI decrease in price
(C) Diminishing marginal utility
(D) All oI the above.


(iii) Normative science deals with
(A) What ought to be
(B) What is
(C) Individual Consumption
(D) All oI the above.


(iv) Marginal cost is calculated as
(A) ATC/Aoutput
(B) TC/output
(C) AC/output
(D) None oI the above.


(v) Under no proIit, no loss situation in perIect competition, the Iirm earns
(A) No proIit, no loss
(B) Normal proIit
(C) Negative proIit
(D) None oI the above.


(vi) In Ioreign trade invisible items are included in
(A) Balance oI trade oI account
(B) Balance oI payment account
(C) Reserve Bank oI India Account
(D) None oI the above.


(vii) In a kinked demand curve in oligopoly:
(A)
The sellers cannot increase the price above the kink because the
demand is elastic
(B)
The sellers cannot reduce the price below the kink because demand
is inelastic
(C) The sellers stick to the kinked price
(D) All the above


(viii) NABARD is the apex body in the sphere oI
(A) Foreign trade
(B) Urban development
(C) Agricultural and Rural Development
(D) Public Iinance


(ix) In a Market Economy Iactors oI production are owned:
(A) By the society
(B) By the government
(C) Privately
(D) All the above.

(b) Fill in the blanks : 1x12


(i) Deposit multiplier depends upon ratio.


(ii) GNP in the oI all Iinal goods and services produced by
domestic sectors in the country in a year.

(iii) Fisher`s "uantity Theory oI Money is also called .

(iv) JB Say`s Law states that Supply creates is own `.


(v) In case oI perIectly demand, a slight change in the price will
make greater change in demand.

(vi) A central Bank has monopoly over .

(vii) The rate oI interest charged by the central bank is called the .


(viii) When the quantity supplied oI a commodity rises with a rise oI price oI
the commodity, other determinants oI supply remaining unchanged, it
is known as .

(ix) Law oI variable proportions applies in the .

(x) Direct taxes do not lead to price .


(xi) About Iour decades ago a new international money known as
was created by IMF.


(xii) Specialisation on the basis oI comparative advantage to obtain Ioreign
goods more cheaply in terms oI real resources Iorgone than .

(c) State which oI the Iollowing statement is true` and which is Ialse`. 1x9
(i) Industrial Development Bank oI India in an investment bank.

(ii) The scope oI balance oI payment is wider than balance oI trade.


(iii) A country is said to be under populated when optimum population is
more than the actual population.

(iv) The law oI demand operates in every situation.

(v) "uasi rent is earned Irom land only.

(vi) The law oI variable proportions operates in the short run.

(vii) Average cost is equal to AFC AVC.


(viii) A producer may keep on employing workers so long as marginal cost
is not more than marginal revenue.


(ix) Land includes not only the surIace oI the earth but also includes every
thing beneath and above it.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) Cannot oI Economy

(ii) Fiscal Policy

(iii) Human Capital

(iv) Deposit Multiplier

(v) Increase and decrease in demand

(vi) Expansion and contraction oI demand.

2. What is meant by Economic Growth? What are the components oI Economic


Growth?
12

3. What is Capital Formation? What are the steps involved in the Iormation oI
capital?
12

4. Discuss the theory oI Demographic Transition with its diIIerent stages. 12

$% (Marks 40)
nswer "uestion No. 5 which is compulsory and any two questions from the rest of section
II.
Marks
5 (a) Answer the Iollowing : 1x6

(i) Proxy has the Iollowing connotations:
(A) One
(B) Two
(C) Three
(D) Four.


(ii) Semantic barrier to communication is reIerred as in
(A) Receiver misinterpreting the symbols used by the sender.
(B) Sender misusing the symbols.
(C) Receiver clariIying the symbols with sender.

(D) Receiver not being able to decode the symbols used by the sender.


(iii) Bulls are speculators in a Stock Exchange who are also called
(A) Mandiwalas
(B) Bears
(C) Tejiwalas
(D) Stock operators


(iv) Which oI the Iollowing is a Ieature oI Joint Hindu Family (JHF)
business?
(A) Unlimited Liability
(B) Can be registered under the Companies Act, 1956
(C) Only male members can be coparceners
(D) This is a principle against relationship.


(v) Mention which oI the Iollowing are not counted in a private limited
company to make the maximum strength oI members to 50:
(A) Present employees and shareholders
(B) Past employees and present shareholders
(C) None oI the above
(D) A and B both


(vi) Demerits oI state owned enterprises are
(A) IneIIiciency
(B) Political interIerence
(C) Redtapism
(D) All the above.

(b) Fill in the blanks : 1x6



(i) In a limited liability company, it is the members whose liability is
and not that oI the company.


(ii) Memorandum oI Association is one oI the basic oI the
company.

(iii) Without requisite a meeting cannot be held.

(iv) Board Resolutions are oI two types, ordinary and .


(v) Statutory meeting is held aIter one month but within six months oI
obtaining the certiIicate oI .


(vi) A Ioreign company is a company according to the
Companies Act in India.

(c) State which oI the Iollowing statement is "True" and which is "False": 1x6

(i) The shareholders oI a company are the coowners oI the assets oI the
company.


(ii) Where B Ltd. and C Ltd. are subsidiaries oI A Ltd., B Ltd. holds 30
shares in D Ltd. and C Ltd. holds 25 shares in D Ltd. Thus, D Ltd. is a
subsidiary oI a Ltd.


(iii) A minor can become a partner only in an existing Iorm with the
unanimous consent oI all other partners.

(iv) A share warrant holder is not treated as the member oI that company.


(v) A sale is not made at the counter or by a salesman, it is made in the mind
oI seller.


(vi) A Stock Exchange does not deal in the securities oI public limited
companies.

(d) DeIine the Iollowing terms in not more than two lines: 1x6
(i) A company limited by guarantee.

(ii) A partnership Iirm is not a legal person.

(iii) True test oI partnership.

(iv) Perpetual Succession.

(v) Government company.

(vi) Arbitrage.

6. What is a stock exchange? Discuss its Iunctions. 8

7. Write a letter oI regret to one oI your customers showing your inability to execute
the order.
8

8. What is an Extraordinary General Meeting? By whom it may be called?




Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
$% (Marks 60)
nswer "uestion No.1 which is compulsory and any two questions from the rest.
Marks
1. (a) Answer the Iollowing : 1x99

(i) Micro economics is also knows as:
(A) Product theory
(B) Price theory
(C) Process theory
(D) Projection theory


(ii) Demand can be deIined as:
(A) Desire to buy
(B) Willingness to buy
(C) Ability to pay
(D) Desire and willingness to buy backed by adequate purchasing
power.


(iii) In case oI normal goods the income eIIect is:
(A) Zero
(B) Positive
(C) Negative
(D) None oI the above


(iv)
The Iormula E
P
x

"
y



A"
y

AP
x


represents:
(A) Cross elasticity oI demand Ior Y
(B) Price elasticity oI demand Ior X
(C) Cross elasticity oI demand Ior X
(D) None oI the above.


(v) When the utility is increasing at an increasing rate, marginal utility
is:
(A) Constant
(B) Negative
(C) Increasing
(D) Decreasing


(vi) Consumer's surplus is also known as;
(A) Elasticity oI demand
(B) DiIIerential surplus

(C) Buyer`s surplus


(D) IndiIIerence surplus


(vii) The law oI diminishing return is applied to all Iields oI
production`. This statement was given by:
(A) Walras
(B) A. C. Pigou
(C) AlIred Marshall
(D) David Recardo


(viii) Under perIect competition a Iactor will be demanded up to the
point:
(A) Where its MRP is more than its price
(B) Where its MRP equals its price
(C) Where its ARP equals its price
(D) Where MRP increases and price Ialls


(ix) Monopolist can determine:
(A) Price
(B) Output
(C) Either price or output
(D) None oI the above.

(b) Fill in the blanks : 1x1212



(i) Complementary goods like tea and sugar have a cross
elasticity,

(ii) IndiIIerence curve slopes .


(iii) For more production on land, iI we are using more quantities oI
labour and capital, it would be termed as .

(iv) Firms in a monopolistic market are price.


(v) Nominal GDP grows Iaster than the real GDP because oI
.

(vi) To remove inequalities, the government uses taxes,


(vii) When prices are Ialling continuously the situation is known as
.

(viii) The cash reserve ratio is usually determined by .

(ix) is the Iounder oI Macro Economics.

(x) Labour cannot be separated Irom .

(xi) Formula Ior calculating optimum population is .

(xii) Paper Gold is also called .

(c) State which oI the Iollowing statements is true and which is Ialse: 1x99

(i) Deductive method is also known as abstract, analytical and priori
method.


(ii) Demand Ior a commodity reIers to quantity demanded oI that
commodity,


(iii) Total utility is maximum when marginal utility is at its highest
point,


(iv) A monopolist is able to maximise his proIit when his average cost
is minimum,

(v) InIlation has positive impact on debtors and businessmen.


(vi) In traditional sense, money serves neither as medium oI exchange
nor store value,

(vii) Banks discourage saving habits among people.


(viii) In order to encourage investment in the country, the RBI may
increase CRR.

(ix) Economic laws are not exact, certain and deIinite.

(d) DeIine the Iollowing terms in not more than two lines: 1x66
(i) DeIicit Financing

(ii) Progressive Tax

(iii) Bank Rate

(iv) Gresham`s Law

(v) Balance oI Payment

(vi) "uasirent

2. Write short notes on the Iollowing: 4x312


(a) Determinants oI Demand

(b) Features oI oligopoly

(c) Criticism oI Ricardian Theory oI Comparative Cost

3. Discuss the importance oI shutdown point in perIect competition. In this


context do you think that short period closure oI Iirms is ruled out?
12

4. Distinguish between balance oI trade and balance oI payments. What is


meant by disequilibrium in balance oI payments? Suggest methods Ior
correcting adverse balance oI payments.
12

$% (Marks 60)
nswer "uestion No.5 which is compulsory and any two questions from the rest.
Marks
5. (a) Answer the Iollowing : 1x66

(i) Salient Ieatures oI a cooperation are:
(A) Voluntary Association
(B) Service Motive

(C) Equality
(D) All the above


(ii) In a limited liability partnership:
(A) All partners have limited liability
(B) All partners have unlimited liability
(C) Some partners have limited liability
(D) Some partners have no liability at all


(iii) Latest developments in communication media include:
(A) Email
(B) SMS
(C) VideoconIerencing
(D) All the above


(iv) Social environment includes:
(A) Taxation policies
(B) Culture and traditions
(C) "uality improvement;
(D) Foreign Direct Investment


(v) For IPo`s listing at Stock Exchange is:
(A) Mandatory
(B) Optional
(C) Desirable
(D) None oI the above


(vi) Statutory meeting is a meeting oI a Public Limited Company.
(A) Convened once in the liIe oI company
(B) Convened once a year
(C) Convened as and when required
(D) None oI the above

(b) Fill in the blanks : 1x66



(i) No person can be a member oI stock exchange iI he is less than
years oI age.


(ii) Written communication provides a record Ior Iuture
reIerence.


(iii) To alter a clause oI memorandum oI association a
resolution is required.

(iv) Debentures holders are really oI the company.

(v) A Chartered Company is incorporated under .


(vi) The Iirst oIIicial general meeting oI share holders oI a Public Company
is called meeting.

(c) State which oI the Iollowing statements is true and which is Ialse: 1x66
(i) The liability oI a sole proprietor is always limited.

(ii) A stock exchange deals with the securities oI all companies.

(iii) Joint Hindu Family business requires registration.

(iv) A company is a voluntary association oI individuals.

(v) Earning oI adequate proIit is an economic objective oI a business.

(vi) A good report is a well written document.

(d) DeIine the Iollowing terms in not more than two lines: 1x66
(i) Lameduck

(ii) Proxy

(iii) Sleeping partner

(iv) "uorum

(v) Spot transactions

(vi) Listed Securities

6. Describe the concept oI social responsibility oI a business. 8

7. (a) State the advantages and disadvantages oI incorporation. 4

(b) Explain the services rendered by a stock exchange. 4

8. (a) Write a note on the Depositary System in India. 4

(b) Distinguish between a bull and a bear. 4