1. Define positive economics.

2. When can the budget line shift to the right?

3. If a fall in price of Good X leads to a rise in demand for Good Y, then X and Y are substitute
goods.
4. State one property of indifference curve.
5. Explain the problem of “how to produce”. 3M
6. Distinguish between ‘increase in demand and increase in quantity demanded of a good. 3M
OR
What will be the impact of recently launched ‘Clean India Mission’ (swatch Bharat Mission on
the Production Possibility Curve of the economy and why?
7. Explain the effect of ‘maximum price ceiling’ on the market of a good. Use diagram. 3M
8. Explain the implication of the following in a perfectly competitive market: 4M
a. Freedom of entry and exits to firms
b. Large number of buyers
9. Define production function. Distinguish between fixed and variable costs. Give one example of
each. 4M

OR

Define production function. Distinguish between short run and long run production function.

10. When the price of a commodity is Rs.20 per unit, its quantity demanded are 800 units. When its
price rises by Rs 5 per unit, its quantity demanded falls by 20 percent. Calculate its price
elasticity of a demand. Is its demand elastic? Give reasons for your answers. 4M

11. What happens to equilibrium price and quantity when- 6M

a. Increase in demand is equal to increase in supply
b. Decrease in demand is equal increase in supply?
OR

Explain the law of variable Proportion with the help of the total and the marginal product curve

12. Explain the following- 6M

a. Product differentiation in monopolistic competition
b. Reasons for Emergence of monopoly
In a village of 200 farms, a study was conducted to find the cropping pattern. Out of the 50 farms surveyed,
50% grew only wheat. Identify the population and the sample here.

What is negative correlation?

Mode of 0, 3,5,7,9,12,3 is-

Illustrate the difference between Primary data and Secondary Data.

Explain mailed questionnaire method.

Ten competitors in the singing completion are ranked by three judges in the following order:

Judge 1 1 5 4 8 9 6 10 7 3 2
Judge2 4 8 7 6 5 9 10 3 2 1

Calculate the rank correlation coefficient of correlation between the judges.