10.

१ 6

12.

13.
14.
15.
16.
37:
18.
19,
20.
21.

2
Who among the following developed the Revealed Preference Theory” ?
(a) Henderson. (b) Marshall.
(c) Hicks. (d) Samuelson.
The elasticity of a straight line supply curve parallel to X axis is :
(a) 0. (b) 1.
(€) ००. (d) 2.
The cross elasticity of complementary good is :
(a) Positive. (b) Negative .
(c) Either Negative or Positive. (d) Unity.

If an increase in the price of one good leads to an increase in the quantity demanded of another

good, then, these two goods are :
(a) Complementary goods. (b) Substitute goods.
(c) Giffen goods. (d) Merit Goods.

D 92899

If the price elasticity of demand for a commodity is 3, then a reduction in the price ofthe commodity

by 5% would change the sale of the commodity by :
(a) 25%. (b) 10%.
(c) 50%. (d) 15%.

Which of the following variables is capable of making a increase in the supply of a good ?

(a) A fall in Wages. (b) A fail in the Price of good.
(c) An increase in rate of interest. (d) Obsoleteness of technology.

Part B (Very Short Answer Type Questions)

Answer any ten questions.
What is a price consumption curve ?
What is meant by opportunity cost ?
Distinguish between normal good and inferior good ?
What is an economic model ?
What is an indifference map ?
Briefly explain the law of diminishing marginal utility.
Distinguish between income effect and substitution effect.
What is an isoquant ?
What is fixed proportion production function ?

(12 x %=6 marks) ٠