0901 Eco (CFA520) - Question Paper Economics(CFA520 January...

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Page 1 of 31 Question Paper Economics (CFA520): January 2009 Answer all 81 questions. Marks are indicated against each question. Total Marks : 100 1. Refer to the following table: Price per Kg. (Rs.) Quantity Demanded (Kg.) Quantity Supplied (Kg.) 2.80 2.50 2.20 1.90 1.60 1,000 2,000 3,000 4,000 5,000 7,000 6,000 5,000 4,000 3,000 Using the numbers in this table, which of the following is true ? (a) If the price is Rs.2.20, there would be a shortage of 2,000 Kg. (b) If the price is Rs.1.60, there would be a surplus of 2,000 Kg. (c) If the price is Rs.2.80, there would be a shortage of 6,000 Kg. (d) If the price is Rs.2.50, there would be a shortage of 4,000 Kg. (e) The equilibrium price is Rs.1.90. (1 mark) <Answer> 2. A book publishing company has found that the demand for its fiction book is given by the following equation: Qf = 20,000 – 500Pa + 5I + 500Pt Where Qf = Quantity demanded of fiction books, Pa = Price of fiction book, I = Income, Pt = Price of textbook. Given the price of fiction book as Rs.10, income as Rs.10,000 and price of textbook as Rs.20, find the quantity of fiction books demanded ? (a) 50,000 units (b) 60,000 units (c) 65,000 units (d) 75,000 units (e) 70,000 units. (1 mark) <Answer> 3. A decrease in supply, accompanied by a decrease in demand <Answer> 4. A substantial rise in the production of door bell would tend to <Answer>
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Page 2 of 31 5. Ceteris Paribus, an increase in equilibrium rental prices of new apartments in Hyderabad city indicates that there is <Answer>
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