Q21) What will be the value of the multiplies if marginal propensity to save is 0.4. (1 mark)

Q22) What is bank rate? (1 mark)

Q23) What is the income effect of a fall in the price of a commodity on its demand. (3 marks)

Q24) Distinguish between nominal wages and real wages. (3 marks)
  

Q25) Define price elasticity of demand. State any one method of measuring it. (2 +1 = 3 marks)

Q26) State any two factors that affect a firm's supply of a commodity. How do they affect it? (2 +1 = 3 marks)

Q27) Complete the following table? (3 marks)

Q28) Explain the affect of an increase in both demand and supply of a commodity on its equilibrium price. (3 marks)

Q29) Briefly explain the modern theory of rent. (3 marks)

Q30) Define monopolistic competition. State its basic features.
(2+1=3 marks)

Q31) Distinguish between gross interest and net interest. (3 marks)

Q32) Explain the relationship between marginal products and average product. (3 marks)

Q33) Explain any two measure by which a central bank can contract bank credit. (3 marks)

Q34) Explain with the help of an illustration, the law of diminishing returns to a factor. (5 marks)

Q35) Why do central problems arises? Explain the problem of allocation of resources. (3 + 2 = 5 marks)

Q36) Explain the determination of equilibrium level of income in an economy with the help of a diagram. (5 marks)