Answer Question 1 (compulsory) from Part I and five questions from Part II. The intended marks for questions or parts of questions are given in brackets [ ]
Answer briefly each of the following questions:
(i) State the Law of Demand. Mention two assumptions of the Law.
(ii) What is meant by substitution effect?
(iii) Define income elasticity of demand.
(iv) With the help of a diagram, explain one exception to the Law of Supply.
(v) What is marginal physical product? How can marginal physical product be obtained from total physical product?
(vi) With the help of a diagram, show how the equilibrium price and quantity change, when supply increases and demand remains unchanged.
(vii) Define monopsony. Explain one feature of monopsony.
(viii) Differentiate between explicit cost and implicit cost.
(ix) What is meant by marginal efficiency of capital?
(x) Explain how bank rate can be used to control credit in an economy.
(xi) How can private income be obtained from domestic income?
(xii) Define fiscal policy. Mention the tools of fiscal policy.
(xiii) What is meant by revenue deficit?
(xiv) Differentiate between stock and supply.
(xv) Explain the meaning of full employment in macro economics.
Answer any five questions.
(a) Discuss any two exceptions to the Law of Demand.
(b) The quantity demanded of a commodity at a price of ₹ 10 per unit is 40 units. Its price elasticity of demand is (-2). The price falls by ₹ 2 per unit. Calculate the quantity demanded of the commodity at the new price.
(c) Explain the Law of Diminishing Marginal Utility.
(a) Draw a market supply curve from two individual hypothetical supply schedules.
(b) Discuss two factors other than price that affect the supply of a commodity.
(c) Explain price control and rationing with the help of demand and supply curves.
Please refer to attached file for ISC Question Papers 2013 Economics