1.Explain in detail how we can derive the equation of exchange from the definition of the income velocity of money.

2.Explain the simple quantity theory of money using the equation of exchange.

3.Also illustrate the conclusions of the simple quantity of money in an AD-AS framework.

4.Explain what Monetary Policy is and how it is carried out by the Federal Reserve System.

5.Explain what the Fed should do to remove a recessionary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph.

6.Explain what the Fed should do to remove an inflationary gap. Illustrate the effect of its policy with an AD/SRAS/LRAS graph.

7.Graphically explain the economy's production possibility curve in terms of economic growth.

8. Explain various types of price elasticity of demand with the help of diagrams. 9.Describe the two conditions necessary for attaining equilibrium for a firm in the shortrun.

10. Discuss the conditions of price discrimination under monopoly.

11. Explain the innovation theory of profit.

12. What are the diseconomies of scale? Explain with illustrations

13.If D=100-3p and S=50+2p calculate the equilibrium price and the quantity, When a specific tax of Rs. 3 per unit is levied calculate the new equilibrium price and the quantity. 3. Define the elasticity of the Total cost. Prove that the elasticity of the average cost is equal to the elasticity of the total cost minus one.

15. The long run cost functions of a firm is C=q3 - 4q2+8q. Prove that MC=AC at the minimum point of MC. 5. For the data given below Obtain Mean, Median and Mode. X 10 20 30 40 50 f 5 6 10 8 3 6. For the Time series data given below obtain the trend by using OLS method. Year 1950 1951 1952 1953 1954 Y 50 60 58 65 70

The following are the marks scored by 10 students in Economics and statistics. Obtain Karl Pearson's correlation coefficient. Economics 58 65 72 68 52 55 53 56 87 62 Statistics 50 60 58 68 70 34 56 75 80 65 Part-C (Descriptive) Answer any four questions: 15x3=45 8. a) If u=f(x) and v=g(x) Prove that E(u.v) Ex = Eu Ex + Ev Ex b) Given the demand law for related commodities q1=100 p1 p2 obtain the price the partial cross elasticities and establish that the commodities are compliments.r