LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION – COMMERCE & STATISTICS
THIRD SEMESTER – NOVEMBER 2012
EC 3105 – GENERAL ECONOMICS
Date : 07/11/2012 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
PART – A
Answer any FIVE questions in about 75 words each: (5X4=20 marks)
- State the scarcity definition.
- Define law of supply.
- What are the two technical properties of consumption function?
- What is meant by velocity of money?
- List out any four functions of an entrepreneur.
- What is developmental expenditure?
- What are the different types of budget deficit?
PART – B
Answer any FOUR questions in about 250 words each: (4X10=40 marks)
- What are the characteristic features of labour?
- Explain the concept of National Income Accounting.
- Calculate the TC, AFC, AVC, ATC and MC from the following data with Total Fixed Cost for all units is Rs. 300.
| Total Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| TVC | 0 | 300 | 400 | 450 | 500 | 600 | 720 | 890 | 1100 | 1350 | 2000 |
- Explain the process of credit creation by the commercial banks.
- Briefly explain the measurement of money supply in India.
- What are the functions of central bank?
- What are the reasons for increasing public expenditure in India?
PART – C
Answer any TWO questions in about 900 words each: (2X20=40 marks)
- What is elasticity of demand? Diagrammatically explain the types of Price Elasticity of Demand.
- Discuss the methods of measuring National Income and explain the difficulties for the same.
- Examine the causes and remedial measures of Inflation in India.
- Analyze the merits and demerits of direct taxes in India.
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