Q. 1. A. Fill in the blanks using proper alternatives given in the brackets.

(1) Micro economics is also called as ____________ theory.

(Income/ Price/ Growth / Employment)

(2) Income elasticity of demand for inferior goods is _________.

(Positive/ negative/ zero/ greater than one)

(3) Part of income, which is not spent on consumption is called ________

(expenditure / saving / investment / public debt)

(4) ________ is an example of direct tax.

(Excise duty / Wealth tax / Sales tax / Gifts)

(5) Every loan creates a ________ (Credit / deposit / profit / loss)

(B) Match the following words from group 'A' and 'B'

Group 'A'
Group 'B'
(a) Production
(1) Average Expenditure
(b) Tea and coffee
(2) Personal Income - Direct taxes.
(3) Stock
(3) Substitute goods.
(4) Disposable income
(4) Central bank
(5) Credit control
(5) Complementary goods.

(6) Potential supply

(7) Commercial bank

(8) Creation of utility.

(C) State whether the following statements are True or False.

(1) Demand for luxurious goods is elastic. True

(2) Supply is indirectly related to price. False

(3) Metallic coins are easily portable than paper notes. False

(4) In a monopoly market, firm and industry are the same. True

(5) Commercial banks are the backbone of modern economy.  True

(6) The main objective of the central bank is to earn profit. False

Q. 2. (A) Define or explain the following concepts. (Any three) [6]

(B) Give reasons or explain the following statements (any Three)

Q. 3. (A) Distinguish between the following. (Any Three) [6]

(B) Write short notes on the following. (Any Two)

Q. 4. Answer the following questions. (Any Three)

Q. 5. State with reasons whether you 'agree' or disagree' with the following statements. (Any Three)

Q. 6. Write explanatory answers. (Any Two)