Junior Inter economics Study Material

economic first year
Economic first year






intermediate economics first year important questions prepared by Mr. Harish Sharma



1.       What is Micro and Macro Economics? Distinguish between Micro and Macro economics.

2.       Explain the law of diminishing Marginal utility with the help of table and diagram.

3.       What is consumer’s equilibrium?  Explain the law of equi-marginal utility with the help of diagram.

4.       Explain the law of demand and give some exceptions to law.

5.       What are the methods of measure price elasticity of demand?


6.       Explain the Consumer’s equilibrium with the indifference curves.

7.       Explain the law of diminishing returns / variable proportions with the help of table and diagram.

8.       Explain the law of returns to scale and mention the reasons for different returns.

9.       What is perfect competition? How the price is determined under perfect completion?

10.   What is Monopoly? How does a monopolist fix price for his product?


11.   What is National Income. Explain the various methods of calculating National Income.

12.   Explain the various concepts of National Income.

13.   Explain Keynesian Theory of Employment.

14.   What are the functions of Central bank / RBI?

15.   Explain the long run and short run equilibrium of a film under perfect completion with help of diagram.

5      MARKS:

1.       Robbins Scarcity Definition.

2.       Samuelson Growth Definition

3.       Consumer goods and capital goods.

4.       Charactristic features of wants.

5.       Curcular flow of Income.

6.       Kinds of Utility.

7.       Mehtods of economic investigation (Inductive, Deductive)

8.       Partial equilibrium and General Equilibrium.

9.       Factors determine demand.

10.   Why demand curve slopes downwards from left to right?

11.   Income demand, cross demand.

12.   Kinds in price elasticity of demand

13.   Factors determine elasticity of demand.

14.   Importance of Elasticity of demand.

15.   Properties of Indifference curves.

16.   Large scale economies (Internal, external)

17.   Factors determine supply and explain law of supply.

18.   Fixed costs, variable costs

19.   Relation between average cost and Marginal cost with the help of diagram.

20.   Classification of Market

21.   Importance of Time element in price.

22.   Price discrimination.

23.   Differences between perfect competition and monopoly.

24.   Features of Monopolistic competition.

25.   Oligopoly and methods of Oligopoly.

26.   Classification of Rent

27.   Factors determine Real wage

28.   Marginal productivity theory

29.   Gross Interest, Net Interest

30.   Components of Net Profits

31.   Factors determine National income.

32.   Components of National income.

33.   Wage cut Policy.

34.   ‘Supply creates its own Demand’. Comment on this statement.

35.   Sources of Public Revenue.

36.   Methods of the redemption of public debt.

37.   Difference between Balance of Trade and Balance of payments.

38.   Difficulties of barter system.

39.   Reasons or importance of International trade.

40.   Functions of money

41.   Functions of Commercial Banks

42.   Causes of Inflation


1.       Intermediary goods                                                                                2. Wealth

3.    Value in Exchange                                                                    4. Price

5.    Choice problem                                                                        6. Alternative uses

7.    Cardinal utility                                                                            8. Ordinal utility

9.    Consumers equilibrium                                                         10. Demand function

11. Income and cross elasticity of demand

12. ISO utility curve                                                                         13. Marginal rate of substitution

14. Production function

15. Fixed and variable factor                                                       16. Average and marginal revenue

17. Dis- economies

18. Supply function                                                                         19. Real cost

20. Opportunity cost

21. Average and marginal cost                                                    22. Duopoly

23. Selling cost                                                                                   24. Price Discrimination

25. Contract Rent                                                                             26. Quasi Rent

27. Scarcity rent                                                                                28. Transfer earnings

29. GNP and MNP                                                                            30. Per capital income

31. Disposable income                                                                   32. Laissez faire

33. Market Mechanism                                                                 34. Revenue account

35. Capital account                                                                          36. Deficit budget

37. Fiscal deficit budget                                                                 38. Invisible item

39. Visible items                                                                               40. Liquidity

41. Near Money                                                                               42. Legal tender money

43. Cash credit                                                                                   44. Overdraft

45. Inflation rate                                                                               46. Hyper Inflation

47. Liquidity