Mock Test Paper

Subject: Economics
MARKS: 80
Duration: 3 hrs.

SECTION A
(Attempt all questions from this section)
Question 1
Choose the correct answers to the questions from the given options.
(Do not copy the question, write only the answers)
(i) Labour earn ____________ as a factor of production.
(a) Interest
(b) Wages
(c) Rent
(d) None of the above.
(ii) When percentage change in quantity demanded is equal to percentage change in price then it is
called as __________________ demand.
(a) Unit elastic
(b) More than elastic
(c) Less than elastic
(d) Perfectly inelastic
(iii) The concentration of cotton textile industries in Maharashtra and Gujarat are due to __________
based division of labour.
(a) Territorial
(b) Process
(c) Product
(d) Technological
(iv) Cash deposited by customers in commercial banks are also known as ________________
(a) Savings deposit
(b) Derivative deposit
(c) Secondary deposit
(d) Total deposit.
(v) If _____________________ is used again and again its value decreases.
(a) Capital
(b) Raw material
(c) Cotton
(d) Technology
(vi) _____________ represents downward movement along the same supply curve.
(a) Increase in Supply
(b) Decrease in supply
(c) Contraction of supply
(d) Expansion of supply
(vii) ___________________ should have the quality of farsightedness.
(a) Entrepreneur
(b) Labour
(c) Capitalist
(d) Landlord
(viii) The act of buying and selling of government securities by the central bank from and to the public
is known as ______________
(a) Bank Rate
(b) Minimum reserve ratio
(c) CRR
(d) Open market operations
(ix) Which function of money facilitates future payments?
(a) Standard of deferred payments
(b) Transfer of value
(c) Measure of value
(d) Unit of value
(x) Car and petrol are examples of ____________ demand
(a) Substitute
(b) Complementary
(c) Composite
(d) Competitive
(xi) What is the purpose of crossing a cheque?
(a) Prevent payment to a wrong person.
(b) Helps anyone to get cash
(c) Its only cash to cash transaction
(d) None of the above.
(xii) Time deposit is also called as __________
(a) Fixed deposit
(b) Savings deposit
(c) Current account
(d) All the above
(xiii) _____________ is the formula for calculating money multiplier.
(a) LRR / 1
(b) 1/LRR
(c) 100/LRR
(d) CRR*100
(xiv) _____________ is a limitation of credit creation.
(a) Currency drainage
(b) Borrower availability
(c) Excess reserve
(d) All the above
(xv) _______________ is responsible for the downward movement of demand curve
(a) Substitution effect
(b) Giffen goods
(c) Law of diminishing Marginal Utility
(d) All the above
 (xvi) __________________ is not a function of RBI
(a) Printing of currency
(b) Controller of credit
(c) Issuance of coins
(d) Custodian of foreign currency
Question 2
(i) Define Demand (2)
(ii) Explain any two factors affecting productivity of land. (2)
(iii) Define Money (2)

(iv) Explain the meaning of monopoly market (2)

Question 3
(i) Give a graphical representation of less than elastic demand curve (2)

(ii) What is overdraft facility provided by commercial banks? (2)

(iii) With the help of an example explain the ‘Value function of money’ (2)

(iv) What are recurring deposits? (2)

Question 4
(i) How is labour different from other factors of production? (2)

(ii) Capital is produced means of production. Explain. (2)

(iii) Why is Central Bank considered as ‘custodian of foreign reserves’? (2)

(iv) Draw a supply schedule using hypothetical data. (2)

SECTION B
(Attempt any four questions from this section)
Question 5
(i) Explain any 5 important features of Perfect Competition market (5)

(ii) (a) What do you mean by law of Supply? (5)

(b) Discuss any three determinants of law of supply.

Question 6
(i) Draw and explain the differences between contraction and expansion in demand. (5)
(ii) Differentiate between Monopolistic and Monopoly competition. (5)
Question 7
(i) Explain the reasons for low capital formation. (5)
 (ii) What are the qualities of an entrepreneur? (5)

Question 8
(i) Give five reasons to explain low efficiency of labour in India. (5)
(ii) How is central bank ‘a banker to the government’? (5)

Question 9
(i) What are the disadvantages of barter system? (5)
(ii) Explain the qualitative and quantitative credit control policies. (5)

Question 10
(i) Briefly explain the functions of Central Bank Explain the evolution of money. (5)

(ii) Explain the evolution of money. (5)

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