a) State with reasons whether the following statements are correct or incorrect. Attempt any three:

i) All wealth is capital.
ii) Devaluation does not always lead to increased exports.
iii) Returns to scale is another name of the law of variable proportions.
iv) Product differentiation is connected with monopoly.
v) A good tax system is one which has lesser tax rates

b) Discuss the major characteristics of a mixed economy with reference to India. What are its main advantages?

a) Show diagrammatically the relationship between average cost (AC) curve and marginal cost (MC) curve.

b) Compare perfect competition and monopolistic competition with regard to the following:
i) Number of sellers
ii) Control over price.
iii) Capacity utilisation in long run.

(8 marks)

a) Explain the principle of maximum social advantage.

b) Explain the theory of comparative cost and examine its relevance in modern world.

(7 marks)

(8 marks )

a) State briefly the factors resposible for increase in public expenditure in India.

b) What are the major causes of inflation in India?

(8 marks)

(7 marks )

a) "Industrial Policy in India has moved away from regulation to liberalisation' Comment.

b) "National Income accounting is known as social accounting" Do you agree? Explain

(7 marks)

(8 marks )

a) Explain the following:
i) The law of statistical regularity
ii) The law of intertia of large numbers

b) Define 'business forecasting' and give its uses.

a) State the advantage and limitations of a graph

b) What are the characteristics of a good statistical average?

(7 marks)

(8 marks)

a) Explain four tests developed for choosing a suitable index

b) Calculate the 5-yearly and 4-yearly moving average of the given sales data

(7 marks)

(7 marks)