Q2) Define gross domestic capital formation. (1 mark)

Q3) Define subsistence production units. (1 mark)

Q4) If domestic factor income is Rs.1000 crores and net factor income from abroad is Rs.(-) 5 crores, how much will be national income. (1 mark)

Q5) Find GDP_fe from the following data :
                                                  (Rs. Crores)
(i) Value of output                                500
(ii) Consumption of fixed capital              20
(iii) Value of intermediate consumption  200
(iv) Net indirect taxes                            20 (2 marks)

Q6) Are exports of goods and services a part of domestic product? Give reasons in support of your answer. (2 marks)

Q7) How is final consumption expenditure of the government estimated?
(3 marks)

Q8) Why are the following not included in the estimation of national income: (3 marks)

Q9) How is income generated in the production process? (3 marks)

Q10) What is private income? How does it differ from personal income?
(3 marks)

Q11) Find operating surplus from the following data.
                                                      (Rs. in crores)
(i) Gross value added at factor cost                 100
(ii) Wage and salaries                                      30
(iii) Consumption of fixed capital                       10
(iv) Employers' contribution to social security      3
scheme
(v) Employees subscription to provident fund. (3 marks)

Q12) Explain the concept of 'mixed income of self employed'. Give suitable example. (3 marks)

Q13) Define capital goods. Give an example each of durable capital good and non-durable capital good. (3 marks)

Q14) Distinguish between product based and process based division of labour. (3 marks)

Q15) Which three types of enterprises are included in producer household sector? (3 marks)

Q16) Calculate national income by income and expenditure methods from the following data.

Q17) Explain the value-added method of estimating national income.
(5 marks)

Q18) Explain the methodology followed in India for estimating national income originating in the agricultural sector. (5 marks)

Section B

Q19) Define windfall profits. (1 mark)

Q20) Define marginal revenue product. (1 mark)

Q21) What will be the value of the multiplies if marginal propensity to save is 0.4. (1 mark)

Q22) What is bank rate? (1 mark)

Q23) What is the income effect of a fall in the price of a commodity on its demand. (3 marks)

Q24) Distinguish between nominal wages and real wages. (3 marks)

Q25) Define price elasticity of demand. State any one method of measuring it. (2 +1 = 3 marks)

Q26) State any two factors that affect a firm's supply of a commodity. How do they affect it? (2 +1 = 3 marks)

Q27) Complete the following table? (3 marks)

Q28) Explain the affect of an increase in both demand and supply of a commodity on its equilibrium price. (3 marks)

Q29) Briefly explain the modern theory of rent. (3 marks)

Q30) Define monopolistic competition. State its basic features.
(2+1=3 marks)

Q31) Distinguish between gross interest and net interest. (3 marks)

Q32) Explain the relationship between marginal products and average product. (3 marks)

Q33) Explain any two measure by which a central bank can contract bank credit. (3 marks)

Q34) Explain with the help of an illustration, the law of diminishing returns to a factor. (5 marks)

Q35) Why do central problems arises? Explain the problem of allocation of resources. (3 + 2 = 5 marks)

Q36) Explain the determination of equilibrium level of income in an economy with the help of a diagram. (5 marks)