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8) ————— is the addition to total utility.
(a) Average utility. (b) Marginal utility.
(c) Zero utility. (d) Constant utility.

(8 x 4%= 4 marks)
Part B (Very Short answer type Questions)

Answer any five questions.
Each question carries 2 marks.

9) Define economic activity.
10) Define supply function.
11) Explain income elasticity of demand.
12) What are the features of perfect competition 7
13) Explain GDP.
14) What is open market operation ?
15) Define balance of trade.
(5 x 2 = 10 marks)
Part C (Short Essay Type Questions)

Answer any four questions.
Each question carries 4 marks.

16) What are the basic problems of an economy ?
17) Explain market equilibrium.
18) Explain the features of monopolistic competition.
19) Explain the components of qualitative methods of monetary policy.
20) Explain the types of inflation.
21) What do you mean by foreign direct investment ?
(4 x 4= 16 marks)
Part D (Essay Type Questions)

Answer any one question.
The question carries 10 marks.

22) Compare micro and macro economics.

23) Briefly explain the law of demand.
(1 x 10 = 10 marks)

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