BA 2nd Sem History Model Question Paper 1 with Answers

BA 2nd Sem History Model Question Paper 1 with Answers

Time: 3 Hours
Max. Marks: 100

SECTION-A

Answer any one of the following (1×10=10)

Question 1.
Mark on the outline map provided the Mughal architecture centres write a note on the’ architectural contributions of Shahjahan.
BA 2nd Sem History Model Question Paper 1 with Answers Img 1
Shahjahan was the greatest builder among the Mughals. He made liberal use of white marble & replaced many sandstone structures of his predecessors in the forts of Agra, Lahore & other places. Some of his famous buildings are the Moti Masjid or Pearl Mosque the Taj Mahal at Agra, Red Fort &Jama Masjid at Delhi, royal buildings in Kashmir, Palaces & mosques at Kabul & other edifices at Ajmer, Ahmedabad & Lahore.

The most remarkable building is the Tajmahal at Agra. It is regarded as 1 of the wonders of the world. It is a marble Mausoleum built by Shahjahan in memory of his beloved queen, Mumtaz Mahal Initially a model of the Taj was prepared in wood & the artisans worked on the building, according to it. It took 22 years to complete & estimated to have cost about 3 crores. It was designed by Ustad Isa & many Hindu craftsmen were employed for its decoration. The construction was started in 1630 A.D.

The Moti Masjid at Agra is another elegant building. The Jama Masjid in Delhi outshines all other buildings of its kind. The Red fort at Delhi was also built by Shahjahan.

Question 2.
Mark on the outline map provided the following places and write their historical importance.
Mathura, Khandesh, Surat, Ahmadnagar, Rameshwaram
Answer:
Mathura: is in In Uttar Pradesh. It is famous for the Mathura School of Art.
Khandesh: is in Maharashtra. It was ruled by the Faruqi dynasty. It became the province of the Mughal empire. It was conquered by the Marathas in the early 18 century.
Surat: is in Gujarat. It was a famous trade centre. Shivaji had made onslaughts on it.
Ahmadnagar: in Maharashtra. It was the capital of Nizami Shahis. During the rule of Akbar, Ahmadnagar was annexed to the Mughal empire.
BA 2nd Sem History Model Question Paper 1 with Answers Img 2
Rameshwaram: is in Tamil Nadu. Malik Kafur invaded it and destroyed the famous temple here and built a mosque there in the name of Ala-Ud-dinKhilji.

SECTION-B

Answer any three of the following (3×15=45)

Question 1.
Explain the literary sources for the study of medieval Indian history.
Answer:
To reconstruct Medieval Indian history, abundant sources are available. The Muslims had a great interest in writing history & so have written a number of works. Hindu literature also flourished. There are several indigenous works that throw light on Medieval Indian history from 1206-1761 A.D. These works were written by Turks & Afghans in Persian & Arabic languages. They wrote about the victories of Muslim rulers & also reflected on the various aspects of Muslim culture that evolved in India.

The Tabaqat-i-Nasiri, written by Minhas-us-Siraj gives us first-hand information about the conquest of India by Ghori & also the history of the Delhi Sultanate up to 1260. It is a . contemporary work & was completed in 1260.

The Tarikh-i-Muhammadi by Muhammed Bihailiad Khani contains the history of Delhi Sultans, Timur, the life of Prophet Muhammed & other Saints.

The Tarikh-i-Firoz Shahi by Zia-ud-din Barani was a contemporary writer of Ghiyas-ud-din Tughlaq, Muhammed- bin-Tughlaq & Firoz Tughlaq. He gives a useful account of the # slave, Khalji & Tughlaq dynasties. He brings the story from Balban to Firoz Tughlaq. Though Barani knew the duties of a historian, he was not free from prejudice.

Tarikh-i-Firoz Shahi of Shams-i-Siraj Afif deals with the history of the reign of Firoz Tughlaq. He was a member in Firoz’s court & no doubt his work is considered to be a first rate authority on the subject.

Taj-ul-Maasir by Hasan Nizami deals with the career & reign of Qutb-ud-din Aibek & the early years of Iltutmish reign, h Being a contemporary account, it can be regarded as a first-rate authority on the subject.

Tarikh-i-Sindh / Tarikh-i-Ma.sumi was written by Mir ‘ Muhammad Masum. It deals with: the history of Sindhu from the time of its conquest by Arabs to Akbar.

Tahqiq – Hind by Alberuni gives an account of the literature, religion & sciences of the Hindus at the time of his visit to India. He was a contemporary of Muhammed of Ghazni & gives a lot of information about the condition of India at the time of Ghazni’s invasion. He was a great Persian & Arabic scholar. He stayed in India for many years & learnt Sanskrit. He also translated many Sanskrit works to Arabic & Persian.

Tfrrikh-i-Yamini by Utbi deals about Mohammed of Ghazni upto 1020 A.D.

Khazain-ul-Futuh, written by Amir Khusrav was a contemporary of the rulers of Delhi from Jalal-ud-din Khalji to Muhammed Tughlaq. He praises his master Ala-ud-din Khalji & omits his faults.

The Tarikh-i-Mubarak Shahi written by Yahya-bin-Ahmad Sarhindi gives valuable account of the rulers of Sayyid dynasty. He was an exact narrator of events.

The Fatawah-i-Jahandari was written by Barani. He gives his own views about the secular & religious policy of the Government. Tarikh-i-Shershahi of Akbarshahi is useful for the study of the Lodi dynasty.

Futuh-us-Salatin, written by Isami is an important source to study Bahamanis. Taba Taba wrote Burhan-i-Nasir which gives information about 5 Bahamani kingdoms. To know the Mughal history, a number of works have been written. The Mughal rulers were themselves great scholars. They also maintained court chroniclers & historians.

Abul FazI wrote Akbar Nama & Ain-i-Akbari. He was the greatest writer of Akbar’s reign. Abdul Hamid Lahori wrote Padshah Nama under the patronage of Shah Jahan. Alamgir Nama by Muhammed Kasim gives information about the first decade of Aurangzeb’s period. But when Aurangzeb banned the writing of official history Kasim stopped writing. Humayun Nama by Gulbadan Begum throws light on the reign of Humayun. Khafi Khan’s Muntakhab-ul-Labab & ‘Tawarikh-i- Shahjahani’ of Muhammed Sadiq were ‘non-official histories. Tabaqat Akbari of Nizam-ud-din Ahmed speaks about Akbar’s reign.

Babur himself was a top scholar who has written his autobiography Tuzuk-i-Babari. Jahangir wrote his autobiography Tuzuk-i-Jahangir.

To study, Vijayanagara history, a number of works, chronicles, official records were written. Gangadevi’s Madura Vijayam describes the Madurai expedition of Kampana. Amuktamalyada, Jambavati Parinaya, Madalasa Charita of Krishnadevaraya, Dhurjati’s Krishnarajavijayam, Manu Charitamu of Allasani Peddanna are other useful works. Vidyaranya Kalajnana, Vidyaranyavrittanta describe the circumstances leading to the establishment of the Vijayanagara empire.

Chikkadevaraja Binnapam, Bharata, Gita Gopala of Chikkadeveraja Wodeyar describes about his period.

To study the history of Shivaji, sources in Marathi, Sanskrit, Hindi, Persian, English have been useful. The chronicles & correspondence letters are also important sources on the history of Shivaji. Govinda Vaidya’s Kantirava Narasaraja Vijayam & Keladi Nripavijayam of Linganna also give information about Shahji, Shivaji & his successors. Khafi Khan’s work also supply information about Maratha history.

Foreign Account: The Persian, Arabic and European writings are the main source to re-construct the history of medieval India. Alberuni, the Arab Writer Wrote Tarikh-i-Hind in Arabic and throws light on invasions of Mohammad Ghazni. Ibn- Batuta, the Moorish traveller stayed in India between 1333 to . 1342 appointed as Qazi in Delhi under Tughlaq. After returning to his country Ibn-Batuta wrote an account on his journey called Kitab-ur-Rahla, Batuta also describes the expansion of Harihara’s authority as far as Quilon and other kingdoms of the west coast.

Abdur Razaak was the Persian ambarrador sent by Shah Ruk to the court of Zamorin of Calicut. He visited Vijayanagar in 1442.

Marcopolo is regarded as the Prince of medieval travellers. He was the first and most interesting European who visited India. He described the populous cities and prosperous industries of India.

Nicolo Conti, an Italian traveller started sail from Damascus, passed through Persia and sailed along the coast of Malabar. Russian traveller Niketin visited Deccan region in 1470 and described the social life of people in Bahamani rule. The chronicles of Domingo Paes and Nuniz throws light on the history of Vijayanagar.

A number of foreign travellers and Merchants visited the Mughal Empire and have left account a source to reconstruct the history of medieval India.

Question 2.
Describe the conquests of Ala – ud – din khilji.
Answer:
ALA-UD-DIN-KHILJI – (1293 – 1316) was the greatest of the Delhi Sultans. He was also an important ruler of the Khilji dynasty. Ala – ud – din was the nephew of Sultan Jala! – ud – din Khilji. He married the daughter of the Jalal – ud – din. He was appointed as the Governor of Kara & Avadh. He was very ambitious. He became the ruler of Delhi by murdering the Sultan.

Sometimes he dreamt of emulating the example of Alexander & conquering the whole world. He set before him a grand scheme of subduing the independent Hindu states outside the borders of the Sultanate of Delhi. He did not want to leave any independent Hindu chief in the country.

His policy of conquests may be divided into 2 parts

  1. Conquest of Northern India.
  2. Conquest of South India.

1. CONQUEST OF THE NORTH INDIA

(a) GUJARAT:
In 1299 he sent an army under Ulugh khan & Nusrat khan for the conquest of Gujarat. Though it was raided many a times it could not be subdued. It was ruled by the Baghela ruler Karan. The Delhi army attacked Anhilwara, the capital of Gujarat & captured it. Karan’s wife Kamala Devi fell into the hands of the invaders. But Karam escaped with his daughter & took shelter with Ramachandra of Devagiri. The entire kingdom was occupied. Nusrat Khan found at Cambay a Hindu eunuch named Kafur whom he sent with rich booty to Delhi. This kafur rose to a prominent position in Delhi politics.

(b) RANTHAMBHOR:
Ala – ud – din wanted to capture the fort of Ranthambhor as it had been a part of Delhi Sultanate, during the rule of Aibek & Iltutmish . It was ruled by Hamvira. He had given shelter to some of the new Muslims who were the enemies of Ala – ud – din. Ala – ud – din decided to punish him & sent Ulugh & Nusrat Khan . They suffered heavy losses and also Nusrat Khan was killed. So Ala – ud – din himself came to capture it. When he also failed he resorted to treachery . He secured the help of Ran Mai the Prime Minister of Hamvira & his General. By their help, the Muslim forces climbed the walls of the fort & occupied it. Hamvira and his family were put to death. Ranmal & the General were also killed.

(c) MEWAR:
The next expedition was against Mewar. According to tradition Ala- ud din’s motive was to secure Rani Padmini, the wife ofRatan Singh. But many historians reject this story. The fact is that the conquest of Mewar was essential in Ala-ud- din’s design for territorial conquest. He surrounded the fort. But all his attempts to capture it failed. Nearly for about 5. months the brave Rajputs put up a stiff resistance and defended the fort, when further resistance became impossible, Rana Ratan Singh ” surrendered in 1303 August 26. The women performed jauhar to save their honour. Ala – ud – din gave orders for slaughtering the Rajputs.

Amir Khusrau, who was an eyewitness said that 30,000 Rajputs were killed in 1 day. The sultan appointed his eldest son Khizr Khan as the Governor of Chittor. Chittor was also named as Khizrabad, after the name of Khizr Khan.

But in 1311 Khizr Khan was forced to leave Chittor on account of the pressure of Rajputs. In his place, the sultan appointed Maldeva. But after Ala – ud – din’s death Chittor was recovered by the Rajputs under Hamir & it once again became the capital of Mewar.

STORY OF PADMINI:
Though Ala – ud – din besieged Chittor he could not occupy it because of the stiff ‘ resistance of the Rajputs. In that critical situation he offered to go away without capturing Chittor if he was shown the face of Padmini through a mirror. Ratan Singh agreed & the face of Padmini was shown in the mirror.

After seeing her through the mirror, the desire to possess her became even more stronger for him. He captured Ratan Singh & made him a prisoner. He sent a message to Padmini that her husband would be released if she agreed to come to his harem. Padmini sent the reply that she would come with her attendants. 700 palanquins were sent along with Padmini. But instead of the queen’s attendants, the palanquins were carrying the brave Rajput soldiers.

These soldiers made a sudden attack & rescued Ratan Singh. Ala-ud-din became furious and attacked Chittor. Though the Rajputs resisted the invaders they could not stand against the Delhi army for long. Thus Chittor was captured . Ala – ud – din entered the fort but he saw ashes lying everywhere. Padmini and many women of royal family had committed . Jauhar. This story has been described in Padmavat written by Malik Mohammad Jayasi. However, many scholars have rejected this story as unhistorical.

(d) MALWA:
In 1305 , Ala – ud – din sent an army under Ain-ul -Mulk Multani to invade Malwa. But the Malwa ruler Rai Mahlak Deva was defeated. This victory helped the Muslims to occupy Ujjain & Mandu, Dhar & Chanderi. Ain – ul – Mulk was appointed as the Governor of Malwa.

(e) JALOR :
Raja Kanera Deva of Jalor had also accepted the sovereignty of Ala – ud – din. Inspite of this submission, he boasted that he was prepared to meet Ala – ud – din in the battle field at anytime. When this fact was brought to the notice of Ala – ud – din, he got annoyed & sent an army. Kanera Deva was defeated & Jalor was annexed.

(f) SIWANA:
In 1308 , Ala – ud – din himself led a large army to attack Siwana in Rajputana. Its ruler Sitaldeva put up a stiff resistance. But he was defeated & captured as they cut off the water supply to the fort. The women performed Jauhar. By the end of 1305, Ala-ud-din thus became the ruler of the whole of Northern India.

2. Conquest of The Deccan : OR Conquest of South India.
After the conquest of northern India, Ala – ud – din turned his attention towards the conquest of the Deccan. He was the first Sultan of Delhi to cross the Vindhya mountains & to attempt to subjugate the south. There were 4 kingdoms in Southern India at that time. They were –

  • TheYadavas ofDevagiri
  • The Kakatiya Kingdom ofTelengana with Warrangal as its capital.
  • The Hoysalas of Dwarasamudra.
  • ThePandyas of Madura.

There were other minor rulers also. The Hindu rulers of the south were fighting among themselves. Thus, the political condition was also favourable to him.

Like his policy in northern India, he did not want to annex & rule South India directly. He realized that it was impossible to establish his direct rule. He only desired that the rulers of South India accept his sovereignty and send him annual tributes. Thus, his main object was to get as much wealth as possible so that he could pay the expenses of huge army which he was maintaining. The wealth of the Deccan was too tempting for the sultan. He wanted to leave their empire on the condition of they becoming his vassals.

(a) CONQUEST OF DEVAGIRI:
Ala – ud – din had already reduced the kingdom of Devagiri in 1294 & compelled its ruler to become his vassal. In 1307 , Ala- ud-din sent an expedition under Malik kafur against Ram Chandra of DeVagiri as he had not sent the tribute for the last 3 yrs. Ram Chandra had also given refuge to Karan Deva, the ruler of Gujarat .& his daughter. They had escaped at the time of the conquest of Gujarat. Malik Kafur was asked to bring Deval Devi, the daughter of Karan Deva. It is said that Karan Deva had made arrangements to marry Deval Devi to the eldest son of Rama Chandra of Devagiri (named Shankar).

When she was being escorted towards Devagiri, she fell into the hands of Alp Khan, the Governor of Gujarat who was going to join Malik Kafur in his expedition against Devagiri. Deval Devi was sent to Delhi & was married to Khizr Khan, the eldest son of Ala-ud-din Khilji. Malik Kafur destroyed Devagiri & captured a lot of booty. Rama Chandra submitted. He was sent to Delhi & made valuable presents to the sultan. He Was treated kindly by Ala-ud-din. He was sent back as a vassal ruler. He also received the title of Rai-i-Rayan from Ala-ud-din. Ram Chandra Deva continued to rule as a vassal of Ala-ud- din.

(b) TELENGANA :
An attempt was made to capture Warrangal in 1303 but had failed. Ala – ud – din in 1308 sent Malik Kafur to force its ruler to accept his sovereignty & to loot the wealth of the kingdom. The Delhi army marched through Devagiri & Rama Chandra , the ruler of Devagiri helped them. Though Pratapa Rudra Deva, the ruler of Telengana put up stiff resistance, the fort of Warrangal was besieged. Pratapa Rudra sued for peace & gave 100 Elephants, 7,000 horses & large quantities of jewels & money. He also agreed to pay tribute every year. Malik Kafur took this booty on 1000 camels.

(c) DWARASAMUDRA:
The next expedition was against Ballala-III, the Hoysala ruler in 1310. Vera Ballala was away from the capital when Malik Kafur attacked Dwarasamudra. He was busy interfering in the Chola politics. Ballala was taken by surprise & defeated. His capital was occupied. Malik Kafur plundered the rich temples of the town & got a lot of gold, silver, jewels & pearls. Ballala paid a heavy war indemnity & the Hoysalas also became the vassals of Delhi.

(d) PANDYA KINGDOM:
From Dwarasamudra, Kafur marched to the Pandya kingdom. At that time, there was a struggle for succession to the throne, between the 2 brothers Sundara Pandya and Vira Pandya. Sundara Pandya was defeated by Vira Pandya. Sundara Pandya then went to Delhi & asked for the help of Ala – ud – din. Malik Kafur reached Madurai. Vira Pandya abandoned the kingdom. Kafur plundered Madurai & destroyed its temples. He then reached Rameshwaram & destroyed the great temple there & built a mosque & named it after Ala-ud- din. In 1311 he came back to Delhi with rich booty which included 312 elephants, 20,000 horses, 2750 pounds of gold equal to the value of 10 crores of tankas & chests of jewels. No such booty had ever before been brought to Delhi. Pandyas also became a dependency of the Delhi Sultanate.

(e) DEVAGIRI:
After Malik Kafur’s return to Delhi, Shankar Deva of Devagiri did not pay the tribute. The sultan sent Malik Kafur once again in 1313 & Shankara Deva was defeated & killed. Most of the towns of his kingdom were plundered & looted. In this way the whole of Southern India was brought under the control of Delhi But it was not annexed.

THE MONGOL INVASIONS : Ala-ud-din’s reign was greatly disturbed by a series of Mongol invasions. The first Mongol invasion took place at the end of 1296. Ala – ud – din sent Zafar Khan who defeated the Mongols near Jalandar. The second invasion took place in 1297. The Mongols captured the fort of Siri near Delhi. But Zafar Khan defeated the Mongols & recaptured the fort. The Mongol leader with 1,700 followers including their wives & children were captured & brought to Delhi.

The third invasion took place in 1299 under their leader, Qutlugh Khwaja. He had an army of 2 lakh Mongols. Under his command the Mongols had come to India this time not to plunder but to conquer. They marched to Delhi and prepared to besiege it. Ala-ud-din consulted the kotwal who advised him to come to terms with Mongols. But he rejected the advice & attacked Mongols. The advance guard of the army was led by Zafar Khan who defeated the Mongols. But he was surrounded & killed by Mongols. After some time, the Mongols lost heart & retreated.

The fourth invasion took place in 1303 when the sultan was busy with the siege of Chittor. A Mongol army 12,000 strong under their leader Targhi reached Delhi. Their movements were so quick that the Governors from the ’provinces were.not able to send their contingents to Delhi. Ala – ud – din took shelter in the fort of Siri, which was besieged for 2 months. The Mongols plundered the surrounding territory & also Delhi. Neither of the party gained any victory. The patience of Targhi was exhausted as he had come prepared for a victory. So they withdrew after 3 months of stay.

Ala – ud – din now took effective measures to protect the frontier from Mongols. The old forts in Punjab, Sindh were repaired & new ones were built. The forts were garrisoned with troops and an additional army was created to guard the frontier. A special Governor known as the Warden of the Marches was appointed to protect the frontier. Inspite of these measures, a Mongol army under Ali Beg invaded Punjab & appeared in the neighbourhood / of Amroha. They plundered & burnt the territory on the way.

Malik Kafur & Ghazi Malik were sent against them. They overtook the Mongols when they were going back with their plunder. The Mongols were defeated their leaders were made prisoners. The 2 top most Mongol chiefs were trampled to death by elephants. Other prisoners were put to death & their heads were ‘ built into the walls of the fortofSiri. The. Mongols appeared again in 1306. They crossed Indus & proceeded towards the Himalayas. Ghazi Malik who had been appointed as the Governor of Punjab in 1305 attacked & killed many Mongols including their leaders.

The last invasion took place in 1307 – 8 under. Iqbalmand. v He crossed the Indus but could not proceed further. He was defeated & killed. Many were taken as prisoners to Delhi & were put to death. The Mongols did not attack .. after 1308 & Ala – ud – din was able to rule peacefully. These were the conquests of Ala-ud-din Khilji.

Question 3.
Describe the Rajput policy of Akbar. How far did it help in the consolidation of Mughal empire ?
Answer:
Akbar was one of the greatest ruler of the Mughals. He was not only a great warrior but also was the real builder of the Mughal empire in India. Akbar was convinced that, in order to consolidate the Mughal empire, he had to win the confidence of Hindus especially Rajputs who formed the majority. The Rajputs were greatest enemies of the Mughal empire & they had violently resisted them. Akbar realised the need to secure, their co-operation & hence followed the policy of friendship towards them.

Babur, the founder of the Mughal empire fought a number of battles against Rajputs. These battles were fought due to political causes & not for any religious objective. As he died soon he could not lay down a definite policy towards Rajputs. Humayun spent all through his life come back to power & hence did not fight any to battle against Rajputs nor he came in contact with them. It was only during Akbar’s rule that the Mughals came in contact with the Rajputs.

CAUSES FOR THE DEVELOPMENT OF AKBAR’S RAJPUT POLICY:
Akbar put aside the Muslim king’s harsh & suppressive policy towards Rajputs. Instead he adopted a policy of sympathy & friendliness He carried out certain useful activities to make it adequate & perfect. But those Rajputs who refused to accept his authority were forced to do so by the royal power & the strength of arms . When such Rajputs were brought under his court & accepted him, they were given friendly & kind treatment by Akbar.

[1] Akbar clearly understood that in order to consolidate the foundation of his dynasty in India strongly, he should combine with him the Hindus especially their military section who formed majority. He realised that the Khilji’s & Tughlaq’s failed to establish their dynasties firmly in India because they ignored the Hindus & always persecuted them.

[2] Akbar not only wanted to win their hearts, he also needed trust worthy people. Akbar’s relatives & his co-religionists i.e. Muslims were treacherous & were hatching’plots & revolts against him. He thought of taking his relatives & other Muslims help to establish a vast empire. When he came to know about them that they were not trust worthy, he diverted his attention to some other direction.

[3] Akbar’s own position was not so strong. He faced the greatest danger from the Afghans who were trying hard to recover their lost empire. Therefore Akbar, needed faithful helpers to resist them as he had already understood that the Muslims were not dependable for this purpose.

[4] Akbar could get faithful companions & brave fighters from among the Hindus, especially Rajputs their military class. Akbar used all his resources to make friends with them.

MEASURES ADOPTED TO CREATE FRIENDLY RELATIONS WITH THE RAJPUTS:
Akbar took the following measures to integrate them with him.

[1] Equality of Status : Many Muslim kings like Ala-ud-din Khilji, Firoz Tughlaq had never treated the Hindus & Rajputs as equal to the Muslims. But Akbar granted them equal rights & thus rendered them worthy of trust. Though he conquered few Rajput states, he did nothing to injure the feelings of the Rajputs. By such equal treatment, the Rajputs won the confidence of Akbar.

[2] Matrimonial Alliance : Akbar made Rajputs not only his friends but also his relatives. He married the daughters of Raja Bihari Mai, the Raja of Amber in 1562. She later gave birth to Salim (Jahangir) who succeeded Akbar. Akbar also married the princesses of Jaisalmer & Bikaner. Jahangir too was married to the daughter of Raja Bhagwandas. By these matrimonial alliances, Akbar made most of the Rajputs faithful to him.

[3] High Jobs : Taking into consideration the merit of the Rajputs, Akbar appointed them on high posts. Example ‘ Raja Bihari Mai, his son Bhagawandas were appointed on – high military posts. Raja Man Singh, Todar Mai & Birbal were given-high posts. More than half the soldiers & many generals of Akbar were Rajputs.

[4] Aggressive Policy towards Unbending Rajput rulers : Akbar used aggressive policy towards those Rajputs who refused to accept his sovereignty. He sent the army against the Rajput rulers of Mewar, Gondwana, Ranthambor, Kalinjar etc. Except Mewar he vangiushed other kingdoms. Though he carried on continuous war with Mewar he did not deviate from his policy. As he was an imperialistic ruler, he could not tolerate any kingdom refusing to come under his rule.

[5] Religious Toleration : Akbar also gave them entire religious freedom. The interference of the Government in the rituals & ceremonies was stopped. They were free to worship in their own way quite independently. They could build new temples & repair the old ones when ever they liked. Man Singh got two temples built at Benaras & Brindavan. It is said that Akbar himself put up a golden umbrella over the Jwalamukhi temple. Even the Jains, Christians & followers of other religions were quite free to built their places of worship. Perfect freedom to celebrate their religious festivals were granted to them. Akbar himself began to celebrate many Hindu festivals like Dasara, Holi, Diwali. He even ordered to stop the killing of the animals on a few special days.

[6] Abolition of Jaziya, Pilgrimage & other taxes : Akbar could not tolerate that some people should be taxed for their religious beliefs. He could not bear the idea of Hindus & other non-Muslims should pay a tax because of their religion. Therefore he abolished the piligrimage tax in 1563 on Hindus. The most important step that he took was the abolition of Jaziya or religious tax collected from Hindus & other non-Muslims in 1564. Though these taxes brought about lakhs of rupees as income to the Royal treasury, still he abolished it.

[7] Social Reforms :He also introduced Social reforms which . had harassed the Hindus particularly Rajputs. He tried his best to stop the social evils like Sati system, Child marriage, etc. and encouraged widow – marriage.

RESULTS:

[1] The most important result of this policy was that the Rajputs gave up opposing the Mughal empire. The Rajputs who were the greatest enemies of the Mughals gave up their resistance as a result of friendliness & religious toleration.
[2] Akbar won the loyalty of the Rajputs because of this policy. They supported him instead of opposing him. They began to serve the Mughal empire sincerely & whole heartedly. They became the pillars of the Mughal empire. They co-operated with Akbar fully in consolidating his empire.
[3] Akbar succeeded in suppressing the revolt & eatablishing peace & order in the empire.
[4] The Rajputs also helped Akbar in many wars & also in expanding his empire. The Rajputs infact became the sword & the shield of the Mughal empire. It was the bravery and the help of the Rajputs that helped in the Mughal conquests.
[5] Akbar also succeeded in creating close relations of association & mixing together between Hindus & Muslims by his policy of equal status for all.
[6] Trade & Commerce also made great progress & the economic condition of the country improved considerably.
[7] The Rajputs possessed greater efficiency in administering capability. They co-operated with Akbar in the advancement & development of his administrative system.
[8] It was because of this policy that Akbar succeeded in consolidating his empire in India firmly.

In this way, a seedling of new nationality was born & began to grow rapidly. This policy of Akbar was continued during the reigns of Jahangir & Shahjahan & the Mughal empire went on making progress. But when Aurangzeb came to power, he gave up this policy of Akbar & the Hindus particularly Rajputs turned hostile to the Mughal empire once again. They brought down the tree to decay which they had watered themselves once to grow.

Question 4.
Explain the life and teachings of Kabir and Gurunanak.
Answer:
KABIR – was the greatest of the religious reformers. He made Bhakti movement more meaningful & responsive to the needs of the people. He rendered great service to the spread of Bhakti movement in northern India. He was probably the most cosmopolitan of the saints of the medieval India.

There is nothing sure about his date of birth & his parentage. It is said that he was born to a Brahmin widow of Banaras who left him near a tank from where he was picked up by a Muslim weaver. He lived towards the close of the 15 cen. From his early life, he was inclined towards spiritualistic life. He is said to have become a disciple of Ramananda.

There is a controversy whether Kabir was a Hindu / a Muslim religious teacher. As he believed in the unity of God, some Muslim writers view that he must be considered a Muslim saint. This view does not seem to be correct. The fact is that he stood for a compromise between Hinduism & Islam. Kabir did not make any distinction between Hinduism & Islam. He said “Kabir is the child of Allah & Ram.” He also said “If you say that I am a Hindu, then it is not true, nor am I a Mussalman. Mecca has become Kashi & Ram has become Rahim”.

Kabir believed in equality of all men & preached a religion of love which aimed at promoting a sense of unity & brotherhood between the Hindus & Muslims. He did not show preference for the teachings of either of these 2 religions & admired what was good in the 2 cults.

Kabir believed in one God. According to him, there is only one supreme being, although God is called by different names such as ‘Ram, Rahim, Allah, Hari, Khuda, Govind’. He said that ‘ Allah & Rama were names of 1 & the same God’. God is the supreme object of love. A devotee does not require a temple / mosque / idols / Pandits / Ulema to reach him. The love of a devotee for God is enough. Salvation can be achieved through Bhakti.

Kabir rejected both the Vedas & the Quran & the supremacy Of the Brahmins & Muslims. He was opposed to caste system &,idol worship. He emphasized the path of love, devotion & Bhakti and unity of God. Like his Guru Ramanand, he preached in Hindi. His poems particularly Dohas had a great appeal for the common people. The most important of his works are the Bijak, Sabads, Sakhis , Mangal, Holi etc.

Kabir did not start any new religious sect. His disciples : included both Hindus & Muslims. After his death, differences arose amongst his disciples regarding the disposal of his last ” remains. While the Muslims wanted to bury him, the Hindus demanded that he should be burnt. It is said that when the sheet covering the dead body was removed, his dead body was found missing & only heap of flowers lay there. These flowers were distributed between the Hindus & Muslims. His followers came to be called as Kabir Panthis.

GURUNANAK (1469 – 1538) was another important Saint of the Bhakti movement. He was greatly influenced by the teachings of Kabir.

He was born on 26 November 1469 at Talwandi in Sheikhupura district of Punjab (now in Pakistan). His parents were Mehta Kaluchand & Tripta. He received his early education in the local school. He was not interested in studies & liked the company of religious men. His father forced him to study Persian so that he could become an Accountant. He was married at an early age but he was not interested in family affairs. He spent his time discussing with Sadhus & composing songs in praise of God.

He met Kabir when he was about 27 yrs of age & learnt much from him. When he was about 30 yrs, he gave up his home & job & became a sanyasi. He travelled widely. He died in 1538 at the age of 70. Gum Nanak’s Janam Sakhis say that the first words uttered by him after his revelation were “there is no Hindu, there is no Musalman”. He was determined to keep himself above the religious differences of the Hindus & Muslims.

Guru Nanak stressed on the oneness / unity of God. His concept of God was Nirguna (attributeless) & Nirankar (formless) . He used the names of Hari, Ram, Allah & Khuda for God. He preached the principles of truth, brotherhood of man, righteous living, dignity of labour & importance of charity. He believed in the Karma theory. According to it, each person will reap the fruits of his action, either good / bad. Guru Nanak said “man shall be saved by his works alone, God will not ask a man his tribe or sect, but what he has done”

Guru Nanak said that man could attain salvation by doing 4 things-fearing God, doing the right, trusting in the mercy of his name & taking a guide to direct him upon the path which leads to the goal. Guru Nanak preached in Punjabi language, which was easily understood by the common people. His disciples included both Hindus & Muslims. He condemned Idol worship, going to pilgrimages & caste system.

In his teachings, morality , humility, honesty, charity, truth & mercy had a prominent place. Alms giving , repeating the name of Hari (God) & absolute obedience to the Guru were the main duties of the Sikhs. Loving devotion to God was a necessity for them.

The teachings of Guru Nanak have been collected in a book form & later on published as Adi Granth . Guru Nanak did not intend to start any seperate religion but gradually his followers evolved a new religion known as ‘Sikhism’. His followers came to be known as ‘Sikhs’.

Question 5.
Sketch the career & achievement of Shivaji.
Answer:
Shivaji (1627-80) – Shivaji was born in 1627 at Shivaneri, a hill fort near Poona. His father was Shahji Bhonsle & mother Jijabai. Shahji was in the service of the Bijapur Sultan held a jagir around Poona. Jijabai exercised tremendous influence on her son. She narrated stories of heroes & warriors from epics. She also inculcated the idea of protecting Hindu traditions & customs as an important duty in Shivaji. Dadaji Kondadeva who administered the estates of Shahji loved him & trained him in the art of warfare. Shivaji did not receive any formal education. Saint Ramdas also influenced Shivaji’s outlook.

Conquests:
Shivaji’s first acquisition was the fort of Torna by taking , opportunity of the illness of Mohammad Adil Shah. He found 2 lakhs of hun in this fort & utilised in raising an army & built a new fort of Raigarh. He captured the forts of Purandar & Kondana. He even occupied Kalyana. This infuriated Bijapur Sulthan who arrested Shahji. Shahji was released when he handed over the forts of B’lore & Kondana.

For a few years Shivaji kept quiet & devoted himself in consolidating his power & re-organising, his admini-stration. In 1656 he captured Javli which was under Chandra Rao More. Chandra Rao was murdered by a hired assassin. This conquest opened door for fresh conquests south & west.

When Muhammad Adil Shah died in 1656, Aurangzeb the viceroy of Deccan invaded Bijapur. Shivaji offered to help on certain conditions. He wanted to secure recognition of the Bijapur forts & the territory which he had conquered. Aurangzeb sent a diplomatic reply. Shivaji attacked the Mughals & raided & plundered Junnar & even advanced to the gates of Ahmednagar. Aurangzeb sent an army to drive the Maratha raiders. Shivaji submitted but Aurangzeb did not foigivehim.

When Aurangzeb left to northern India to fight for the throne, Shivaji got an opportunity to extend his empire. He invaded Konkan & captured the town of Kalyana. The Bijapur government which had lost territory & forts to Shivaji, appointed Afzal Khan, one of the ablest generals to bring Shivaji dead / alive. As Shivaji had taken his stand in Javli, Afzal gaveup direct attack & encamped at Pratapgarh & began negotiations with Shivaji through Krishnaji Bhaskar, a Maratha Brahmin. Shivaji came to know from Krishnaji & his secret agent that he had arranged an interview to arrest Shivaji. Afzal khan-met Shivaji at the foot of Pratapgarh in a Shamiana errected for this purpose.

Afzal khan embraced Shivaji & took his sword & struck a blow. Shivaji escaped injury as he had worn an armour. Shivaji tore open Afzal Khan’s bowels with tiger claws (bagh nakh) & stabbed him with his dagger (bichhwa). Afzal Khan cried in pain. The Maratha troops fell on the Bijapur army & defeated them.

Shivaji captured the fort of Panhala from the Bijapur Sultan. He also captured some places southward of Panhala. Aurangzeb established himself on the throne of Delhi & sent his maternal uncle Shaista Khan as the Governor of Deccan to destroy the maratha power. He marched towards Poona & captured some forts. He also captured Chakan & Kalyana. Shaista Khan decided to spend the rainy season in Poona & took residence in the house where Shivaji had spent his childhood. In April 1663, Shivaji with a few followers entered the house where Shaista Khan was staying. Shaista khan escaped in the dark loosing his 3 fingers of his right hand.

His son was killed. Autangzeb called Shaistakhan from the Deccan & appointed him as the governor of Bengal. Shivaji attacked Surat in 1664, the richest port on -the Westcoast & carried a rich booty. Aurangzeb now appointed his bravest general Mirza Raja JaiSingh of Amber to put down Shivaji. He captured as many as 23 forts before he laid siege to Purandhar. Even Rajgarh & Raigarh were threatened. On Jai Singh’s advice, Shivaji agreed to sign the treaty of Purandhar by which he surrendered 23 forts & 12 remained under him. His son Sambhaji was enrolled as panjhazari Mansabdar. Shivaji agreed to render military help to the Emperor in his Deccan wars. Shivaji was exempted from attending the Mughal Court.

Jai Singh persuaded Shivaji to visit the court of Aurangzeb. Shivaji was aware of the risks in his visit. When Shivaji & his son Sambaji went to the darbar, he was not respected as a king. He was made to stand & wait in a row of ordinary mansabdars. Shivaji became furious & came out of the Darbar. Aurangzeb imprisoned him in a house. Shivaji hit upon a plan to escape. He pretended to be very sick & secured permission to send baskets of sweets to be distributed among the poor. Shivaji & his son hid in two baskets & escaped. They reached Raigarh after 9 months. Aurangzeb suspected Jai Singh & even recalled him from Deccan. The Marathas felt pride about the news of Shivaji’s escape.

Aurangzeb now deputed Jaswant Singh to Deccan. Aurangzeb was busy with the wars in the north west. He accepted the new 1 Deccan governor Muzzam’s recomendation for a peace & granted the title of Raja to Shivaji. Sambhaji was given a mansab of Panj Hazari. But in 1670 the war between Mughals & Marathas became inevitable as he captured many forts. He raided Surat for the second time. He invaded Khandesh, plundered Hubli.

Thus, he carved out an extensive empire. He was coro-nated on 16 June 1674 at Raigarh. He also conquered Jinji, Vellore & other places in Southern region. The last days of Shivaji was filled with anxiety as Sambhaji, his eldest son did not prove to be worthy. He had great doubts about the future of his kingdom which he had strongly built.

ASHTA PRADIIANS:
Shivagi was not only a great ruler but also provided an excellent system of administration. The king was the head of the administration He enjoyed extensive powers. Shivaji studied the ancient works on Hindu polity & also borrowed some of the features of contemporary Muslim states of the Deccan. Shivaji as Chatrapati directed all the activities of the state. He was assisted by a council of ministers known as Ashta Pradhan. The king was not bound by the advice of his Ministers. The function of the ministers was purely advisory. He appointed & dismissed them at will.

The Ashtapradhans consisted of the following 8 ministers.

(1) PESHWA:
or the chief minister, was officially known as Mukhya Pradhan. He was responsible for the general administration & welfare of the kingdom. He was not in charge of any department & supervised the working of all the departments: It was his responsibility to bring about coordination in the working of various departments & promote harmony among the ministers. He represented the king in his absence. He put his seal on all royal letters just below the signature of the king.

(2) AMATYA:
or Majumdar was the finance minister. His duty was to check all the accounts of income & r expenditure. He had to countersign all statements of public accounts, of the kingdom as a whole / of the particular districts.

(3) MANTRI – / CHRONICLER / WAQIA – NAWIS:
He kept a record of the daily doings of the kings activities & record every thing that happened at the court. He was responsible for the security of the king. He checked the food to be served to the king & also kept a watch on all the persons who paid visit to the kings so as to guard s against plots. He was in charge of the intelligence department. It was his responsibility to keep the king informed about the important happenings in the different parts of his empire.

(4) SACHIV:
or Home secretary / Shuru Nawis – His duty was to see that all royal letters & dispatches were drafted in the proper style. He had to revise the letters and dispatches & placed them before the king for his r signature. He also put his seal on the various letters. The accounts of the market & the paraganas were also looked after by him.

(5) SAMANT – or Foreign secretary/ Dabir- His duty was to advise the king on matters relating to foreign states / on questions of war & peace. He also received & despatched ambassadors & envoys with the consent of the king. He also kept the king informed about the important developments in the foreign Countries.

(6) PANDIT RAO:
or Danadhyaksha. He was the royal Priest. His main duties were to fix dates for religious ceremonies, to punish heresy & decided religious disputes in the kingdom. He made grants to Brahmins & other needy people from the money set apart by the king for charity. He also looked after the various religious institutions present in the state. He was the judge of Canon law & Censor of public morals.

(7) SENAPATI:
or the commander – in – chief / sar – i Naubat. He was the commander – in – chief of the forces of shivaji. He was also responsible for the recruitment, organization & discipline of the army. During the war he arranged for the disposition of the troops at the battle field.

(8) NYAYADISH/Chief Justice:
was incharge of the judicial system of the state. He was the highest judge in the kingdom. He tried both civil & criminal cases. All the minister except Pandit Rao & Nyayadish were required to command armies & had to participate in the wars.

SECTION-C

Answer any three of the following (3×10=30)

Question 1.
Briefly describe the reforms of Balban.
Answer:
Balban belonged to the family of Hbari tribe of Turkestan. In his youth, he was captured by Mongols. He was purchased by Khwaja Jamal-ud-din. Khwaja brought him to Delhi in 1232 A.D, where Sultan Iltutmish purchased Balban. Thus, Balban joined to the Turkish slaves of Iltutmish known as ‘the forty’ (Chahelgan)

By his intelligence & hard work he rose to great positions. In 1246 when Nasir-ud-din Mohammad became the sultan, all the administrative powers were given to Balban. Balban gave his daughter in marriage to sultan. In 1266 when Nasir died, Balban succeded him.

Reforms:
Balban organised an efficient spy system. The spies enjoyed good freedom & were well- paid. In all departments, spies were appointed to keep a close watch on all the activities of officers, governors, nobles, military & civil officers & even his sons. The spies had to give correct report to the sultan. If they failed in their duty they were severely punished. This helped in checking conspiracy against him. This system strengthened his position as a sultan.

Balban’s main strength lay in his army. So he reorganised the army. The army was placed under the charge of Imad-ul-mulk who was responsible for the recruitment & salary of the army. He tried to change the old practice of granting lands to the soldiers who had rendered military service. He found that many of them had become old & were incapable of military service & some of them had died. So he ordered that the lands should be taken from them & instead they mighl.be paid in cash. This led to protests & Balban had to withraw his orders.

Balban’s theory of Kingship:
His theory of kingship was very much instrumental in consolidating the power & position of the Delhi sultan. He was a follower of Divine Right theory of kingship. He believed that the sultan was the representative of God on earth. Kingship was divine institution. He declared that he was of a Royal . descent & circumstances had made him to become a slave. He made the nobels believe that he got the crown of kingship through-the mercy of God. In his theory of kingship he adopted the policy of ‘Blood & Iron’. He created an idea about the superiority of the sultan, he assumed the title ‘Zilli Allah’ / ‘Shadow of God’. He followed strict discipline in the court. No one was allowed to laugh / even smile in his Darbar. On his accession he gave up drinking wine.

He maintained distance & refused to speak to common people. He appointed tall & ‘ fearsome body guards, who were to stand round the king’s person with their swords drawn & dazzling in the sun. He -introduced the practices of Sijda (prostration) & Paibos (kissing the-monarchs feet) in the court. He prohibited drinking of wine among the officials & courtiers. He prescribed for them a special dress. He would not meet & talk to smaller nobles. He was extremely cruel to those who opposed him. He remodeled his court after the Persian model & introduced Persian ceremonies & ettiquet. When he heard the news of the death of his eldest son Muhammad, he remained firm & went as usual through the daily routine of administration, though he wept in his private appartment.

He destroyed the group of Forty nobles. These nobles had become king makers & exercised immense influence on the king. They had reduced the position of the sultan to a mere figure head. In order to raise the prestige of the sultan, he decided to destroy it. He appointed Junior Turks to important positions & placed them on an equal footing with the forty Turkish Nobles. Balban punished them severely for slight faults. He suppressed the rebellion in Doab region & the revolt of Tughril khan, the Governor of Bengal. He also strengthened the north-west frontiers from the Mongols by building a chain of forts & guarded by able bodied Afghan troops. In administering justice, Balban was no respecter of persons.

The internal administration was also put on a from basis. The Governors could not act independently even if they were to be j his own sons. They’had to act according to instructions from the sultan. He also checked the roads from thiefs & robbers. They were severely punished. As a person, he was not good looking. He was cruel, ugly & hard in behaviour. But in individual life he was kind & generous. As a ruler he increased the prestige of monarchy. He occupies an important place in the history of Muslim rule in India.

Question 2.
Critically examine the administrative measures of Mohammed-bin-Tughlaq.
Answer:
After the death of Ghiyas-ud-din Tughlaq, his son Jauna Khan sat on the throne under the title of Mohammed-bin-Tughlaq. He is one of the most interesting & controversial characters in medieval history. In spite of being a scholar in many branches of arts & learning, an able warrior & a gifted Sultan with many ideas of reforms, a good poet, Mohammad-bin-Tughlaq proved to be an unsuccessful ruler. All his plans ended in failure. He was called “the wonder of creation”, because of k his versatile genius, intellect, wonderful memory & poetic talent.

Some scholars described his character as a mixture of opposites’. His actions were so strange that it gave room for suspicion that he was sufferring from mental derangement. He lacked practical judgement & common sense. He implemented theoretical experiments without any foresight about the consequences.

[a] Revenue Reforms (1326-27) – A.D.
Soon after his accession to the throne, he issued a series of ordinances to improve the collection of revenue. He ordered that a register be kept of the revenue & expenditure of the provinces of his kingdom. He directed the governors of the provinces to send all relevant records , & other materials to the capital for its compilation. This was done by him to introduce a uniform system of land revenue,

[b] Taxation in the Doab:
He thought of improving the finances of the state by increasing the taxes in the Doab. Probably he wanted to raise the revenue by 5 to 10%. The new taxes included the house tax & the grazing tax. In order to realise these taxes, the houses of the people in the rural areas were numbered & their cattles were branded. He attempted to realise the land revenue & the newly imposed taxes strictly. When these new taxes were enforced there occured a famine due to the failure of rains. It became difficult for the peasants to pay the taxes. The people resisted. But the revenue officers continued to collect the taxes without showing any consideration to the famine-stricken people.

The peasants gave up farming & took to highway robbery. Mohammed-bm-Tughlaq made, an attempt to help the cultivators by giving them loans to buy seeds, bullocks etc. & making arrangements for the digging of wells for irrigation. But the policy failed because the grant of loans came too late. As people had nothing to eat, they utilised the loans for different purposes than for which it was given.

Ala-Ud-Din Khilji also had introduced the house & grazing taxes. But it became unpopular in his period also. So, Ala- Ud-Din’s successors did not continue these 2 taxes. But when it was revived by Mohammed-bin-Tughlaq it was resented by people. The Sultan got no extra revenue. Even he could not get the usual revenue from the Doab. Worst of all was that the Sultan himself became unpopular with his subjects.

[c] Creation of Agriculture Department:
Mohammad-bin-Tughlaq’s next experiment was the creation of Agricultural Department called ‘Diwan-i-Kohi’. The main object of this department was to bring the uncultivated land under cultivation by giving direct financial support from the state treasury. A large tract of land, 60 miles square in area was first chosen. The land was cultivated & different crops in rotation were sown. The government spent over 70 lakhs on the scheme in 2 years’ time. The land was distributed among those who were in need of it & a large staff of officers & guards was appointed to look after it.

But the experiment failed for several reasons. There was a huge loss to the treasury as the land selected for this [ purpose was not fertile. The money was misappropriated by the officials & the time limit of 3 years was not sufficient for such a project.

[d] Transfer of capital:
An important political experiment of Mohammad-bin-Tughalaq was the transfer of capital from Delhi to Devagiri which was renamed as Daulatabad. The Sultan had certain valid reasons for transferring his capital. He wanted to have a capital which should not only be situated at a strategic place but should also be the centre of his fart flung kingdom. Barani says that Mohammad-bin-Tughlaq was impressed by its geographical location. Delhi was too near to the north-western frontier which was constantly threatened by Mongol raids.

The Sultan wanted the new capital to be at a safe distance from the invaders from the north-west. The northern India had been conquered & with Daulatabad as his capital the south could be effectively subdued & managed. He must have felt that South India was so rich & that he would be able to utilise its resources by ah intimate contact with it.

Mohammad-bin-Tughlaq ordered the transfer of the capital & also the people of Delhi, men, women & children to Daulatabad with all their belongings. The people refused to leave Delhi due to their sentiments attached to their place. Mohammad-bin-Tugalaq tried to force people to migrate & it is even said that he got the city searched to track down the people who defied his orders. A blind man & a cripple were found in the city who were unwilling to leave. It is said that the cripple was put to death & the blind man was dragged to Daulatabad.

The sultan had made adequate arrangements for the comfort of the people during their journey from Delhi to Daulatabad. Temporary huts were set up along the 700 mile road & free food & drink were supplied. Shady trees were planted. Though all comforts was made, the distant region caused extreme hardship to the people. Many died on their way. Those who reached Daulatabad, found it difficult to live in an unfamiliar environment. Mohammad-bin-Tughlaq realised that in the event of future disturbances, it will be impossible to protect the north-western frontier of his kingdom from his distant capital in the Deccan.

So he ordered to .return to Delhi. Delhi did not recover its old prosperity. It was only partially re-populated. Daulatabad became a deserted town. The Sultan should have only moved the officials of the state to the new capital without touching the rest of the population.

[e] The introduction of token currency:
The reign of Mohammad-bin-Tughlaq is an important landmark in the history of Indian coinage. He has been called ‘a Prince* of moneyer’s. He reformed the entire system of coinage. His-most notable experiment in the field was the introduction of token currency. He issued brass & copper coinage because he wanted-to increase money in the treasury which had been drained by wars & rebellions & taxation policy in the Doab.

The Sultan was anxioys to conquer distant places in India & some foreign countries. Mohammad-bin-Tughlaq was found of experimentation & wanted to open a new chapter in the history of coinage in India. He was encouraged by the examples of Chinese & Persian rulers who had.introduced the token currency in their countries in the 13 Cen.

Mohammad promulgated an order making copper coins the legal tender & putting those coins on par (in value) with gold & silver coins. He ordered that the people should use these coins in all transactions just like gold & silver coins. But he took no steps to make the mint the monopoly of the state. Private persons began manufacturing copper coins and there houses became mints. People hoarded gold & silver & made payments in forged coins. Foreign merchants purchased Indian commodities with the token currency but refused to accept it for selling their product. Trade came to a stand still. Business was hampered. Gold & silver became scarce. The Sultan saw the failure of his scheme.

He withdrew the copper coins from circulation & ordered people to exchange from the treasury gold & silver for copper coins. Token coins were brought in leaps. Though Mohammad-bin-Tughlaq was the most learned ruler, all his experiments in the administration failed as they were not derived from actual experience in life. They were sound on paper but in practice, they failed. Thus his reign was a complete failure.

Question 3.
Describe the Deccan policy of Aurangzeb.
Answer:
Aurangzeb adopted the policy of his ancestors to conquer different parts of the Deccan & annex them to the Empire. The Deccan policy of Akbar & Jahangir were inspired by political reasons, the policy of Aurangzeb was inspired by both political & religious causes. While Akbar, Jahangir & ShahJahan attached to the Deccan as much importance as they could keeping in view, the other problems of the .empire. But Aurangzeb stayed in Deccan for about 25 years .from 1682 onwards as if he had no other duty to perform. The Mughals during the reign of Shahjahan had occupied Bidar, Berar & Ahmednagar of the 5 Deccan kingdoms. Aurangzeb- being ambitious could not tolerate the independence of Bijapur & Golkonda which were unconquered.

Aurangzeb being a staunch Sunni Muslim could not bear the existence of the Shia kingdoms of the Deccan. These kingdoms at first had recognised the sovereignty of Mughals but later declared their independence, when . Aurangzeb left for north to participate in the war of succession. These kingdoms were rich & prosperous & had stopped paying tribute to the Mughals. These kings has agreed to pay Chauth & other taxes to Marathas which Aurangzeb did not like. He wanted to bring down the power of Marathas in the Deccan. Lastly his son Akbar had joined Sambhaji, Shivaji’s son. He wanted to capture his son & teach him a good lesson.

(1) Conquest of Bijapur Aurangzeb had attempted to conquer Bijapur during his father’s reign in 1656-57. Though he did not completely conquer this kingdom, yet he got Bidar, Kalyani & Parenda. After becoming the sultan, Aurangzeb, once again turned his attention to Bijapur. A huge army was sent under the leadership of Raja Jai Singh, against Shivaji in 1665. He was instructed that army should also try to conquer Bijapur. After concluding a treaty with Shivaji, Jai Singh invaded Bijapur in 1665 A.D. At that time the sultan Adil Shah – II was a capable ruler. He took 40,000 foot soldiers and 12,000 cavalry from Golkonda ruler & resisted the Mughals firmly.

Though the battle continued for sometime the Mughul forces had to retreat for want of provisions. In this way the first attempt of Aurangzeb to conquer Bijapur failed. Aurangzeb sent another general Diler Khan in 1679 to conquer Bijapur. Diler Khan devastated most of the territory but could not conquer it. His own army revolted against him. Aurangzeb recalled him as he also failed to conquer it.

After finishing the wars against Rajputs, Aurangzeb himself came to Ahmednagar in 1683 to supervise the arrangement for the conquest. He sent his 2 sons Azam & Muazzam but they could not achieve any success. Therefore Aurangzeb himself led the army and attacked Bijapur in 1685. By this time Adil Shah had died & his son Sikander Shah fought the battle. Though he was not capable like his father yet he took help from the Golkonda ruler & the Maratha ruler Shambhaji.

The siege , continued for a year but Bijapur thought of .surrendering due to lack of provisions & gun powder. In 1686 Bijapur was annexed to the Mughal empire, Sikandar Shah was given an annual pension of 1 lakh Rs. but later he was confined in Daulatabad fort where he died.

(2) Conquest of Golkonda :
Aurangzeb could have finished Golkonda during his fathers reign. But his father prevented him. Even then he snatched Rangir & large amount of money. When he became the Sultan he wished to complete the half done work of conquest of Golkonda. Abul Hasan was the ruler of Golkonda. He was lazy & -luxurious & gave the administration to 2 Hindu brothers Madana & Akkanna. Aurangzeb being Muslim could not tolerate it. Abul Hasan had helped Shambhaji & Sikandar Shah, the Bijapur Prince against Moghuls. He had also not paid tributes to Moghuls. All this made Aurangzeb to invade Golkonda.

When the Golkonda ruler refused to remove his Hindu ministers & accept other conditions of the Mughals, the MusHm army under Prince Muazzam marched to Golkonda in July 1685 to possess Hyderabad. The Golkonda army fought bravely. But after about 4 months, the chief of the Golkonda army joined the enemy and Hyderabad was occupied by Mughals. The Golkonda ruler had to pay 1 crore & 30 lakh Rs. and give Maklhed, etc to them. He also had to give a promise to remove his 2 Hindu ministers. The Golkonda ruler agreed to all these & the mughals vacated his kingdom.

However Aurangzeb could not tolerate the existence of an independent Shia state. Golkonda fort was besieged on 7 Feb, 1687. It is said that Prince Muazzam had received valuable presents from the Golkonda Sultan & tried his ‘ best to seek the Emperor’s forgiveness for him. When Aurangzeb came to know of it, he snatched the property of the prince & put him in jail. Then Aurangzeb personally attempted to take possession of the fort but failed due to heavy rain & shortage of food. Though certain officers were taken as prisoners by Golkonda soldiers, Aurangzeb continued to fight. He tried to explode the fort twice but both times they aimed wrongly & many of his men were killed.

Now Aurangzeb took to evil methods to capture the fort. He bribed a servant of Abul Hasan, who opened the eastern gate to the Mughals. Though the mughal armies entered the fort, a Sardar named Abdur Razzak fought till the end. But the Mughals occupied the fort & the sultan was taken as prisoner. They plundered the city & took diamonds jewels, gold, silver, gems and about 7 crore Rs.

(3) Aurangzeb & the Marathas :
Aurangzeb had to fight with another power Marathas who had become strong under Shivaji. To curb their power, he sent his generals Shayista Khan, Raja Jai Singh. Shayista was the maternal uncle of Aurangzeb, established his authority over Poona in 1663 but in the night attack of Shivaji he lost his son & his fingers. There after Aurangzeb sent his famous General Raja Jai Singh Shivaji signed a treaty by accepting the subjection of the Moghuls & also agreed to come to Agra. But at Agra he was disgraced & also imprisoned. However be escaped in 1666 in a basket & from then he became a sworn enemy of Mughals. He did not let them rest for a moment till his death in 1680.

Even after Shivajis death, the Marathas continued to fight. But in 1689 Shambhaji, Shivaji’s son, who was a pleasure loving king was caught & later killed by Mughals. They also captured his son Sahu along with his family. Aurangzeb thought that his conquest of Deccan was completed but the Marathas continued to fight under Shivaji’s son Raja Ram. Though he lost some forts he continued to fight till his death. After Raja Ram’s death in 1700, the Marathas fought under the leadership of his wife Tarabai. The Mughal territories like Malwa, Gujarat were plundered by them. The provisions in the Mughal camp ran short & they lost courage & Aurangzeb had to return to the north. But on his way back he died in 1707. It is said that ‘the Deccan ulcer ended Aurangzeb’s life’.

Results:

  1. It led to worsening the administration of the country . Aurangzeb lived in the Deccan for about 25 yrs. The provincial governors & other officers became fearless as there was none to supervise their work. The Rajputs, Sikhs became strong in the north and later caused the break up of the Mughal empire.
  2. Money was spent like water in the Deccan wars, which led to exhaustion in the royal treasury.
  3. Aurangzeb had already inherited a vast empire which extended from Kashmir in the north to Godavari in the south and Chittagong in the east to Kabul in the west. He made a blunder mistake of expanding the vast empire vaster. During those days when there was no good means of communication it becomes difficult to administer , efficiently.
  4. The mughal soldiers were tired of continuous Deccan wars & wanted to return home. Many were killed & some died due to starvation. So the army deteriorated.
  5. Aurangzeb’s Deccan policy proved ruinous not only to him but also to the Mughal empire. It led to the weakening of their power.

Question 4.
Explain the society and economy under Mughals.
Answer:
The history of the people in Mughal India specially pertaining to the Social life interests many writers and historians.

(a) Structure of Society :
During the Mughal period society in India possessed of feudal’ character. The king was the head of administrative system. Nextonly to him were the nobles in rank and status. The king was Fountain head of all honors. He was the supreme authority in the land.

(b) The Middle and the Lower Classes :
The Middle class of people were wealthy merchants and petty Mansabdars. They did not indulge in ostentations “expenditure” but maintained a certain standard the according to their profession. The merchants tried to conceal their wealth as they are afraid that the local Governors would forcibly take it away from them.

(c) Food and Dress :
The food habits of the people in India was different from one place to another. There was no uniformity in diet and mode of living Sir. Thomas Roe throws light on the sumptuous dinners and Pulaos and Biryanis that were cooked in plently. The use of Almond pudding, chicken fry, Lamb roast and other meat , preparations were common. The Hindus were usually vegetarians and Brahmans were pure vegetarians who consumed milk, ghee, fruits, vegetables and rice preparations made out of ghee and milk.

(d) Social practices and customs :
There were many differences between the customs and traditions of the Hindus and Muslims. However these two communities co-existed sometimes peacefully and at time in grave tension. Both the Hindus and Muslims had formulated certain maxims and predictions of the science and astrology. The people belonging to both the communities were seeping in superstitious.

(e) Social Degradation :
During the rule of Akbar he h ied to uphold the virtues preached in all the religion. By the time Shahjahan come to power peace and prosperity ha&been established throughout the empire. Gradually the condition of the peasants began to deteriorate due to the extravagant expeditions and large amount to money spent in the construction of monuments.

Economy:
The accounts of the European travellers and Abul Fazl’s Ain-i- Akbari ’ helps us in knowing the economic condition of India under Mughals. The economic condition during the rime of Babur and Humayan is little known. The ‘Tuzuk-i-Baburi’ and ‘Humayan Nama’ stated that things were sold at very cheap rates.

However, Akbar was the first monarch who took important steps towards improving the economic condition of the country by establishing peace and order and encouraged agriculture. But during Aurangzeb’s period, the money was spent on war? suppressing revolts etc., which led to the deterioration of the economy.

Agriculture was the main occupation of the people during the Mughal period. Akbar tried to improve the conditions of peasants by his revenue system. Canals were dug, tanks were constructed to provide irrigational facilities to the people. Wheat, gram, barley, rice, millets, maize, sugarcane, pulses, indigo, fruits, vegetables, etc., were grown.

The condition of the peasants could not be improved as they used old implements and they were subjected to famines on and off during the Mughal period. Besides these, epidemics also spread out from time to time and a large number of people died by Plague and Cholera. No doubt, the emperors did provide relief to the affected people but it reached very few people as the means of transport and communication were not very fast, nor were there enough medicines to save the lives of the affected people.

The peasants also had to suffer due to wild animals which used to destroy the standing crops. Crops were also destroyed by the movement of armies as wars and rebellions frequently occurred during this period. However, the total produce was satisfactory. Besides, agriculture, industries also flourished during the Mughal period. The cloth industry of India was most popular and different varieties were produced like Cotton, Silk and Wollen cloth including the muslin of Dacca. Big factories of cotton textiles were spread over the whole of India, but Bengal, Bihar, Gujarat and Khandesh were their special centres where the manufacture aiid of production were the largest. Dyeing of different colours, printing, painting, manufacture of cutlery.

wooden articles, leather works and weapons for war and defence. Carpet industry flourished in Agra and Fatepur Sikri. Shawls and warm cioths were manufactured in- Kashmir. Bengal, Gujarat and Punjab were the centres of Sugar industry. Iron industry was popularly known: Delhi was famous for copper industry and Banaras for brass industry. Ornaments were made of gold,silver, ivory and diamonds wefe taken from themines of G6lko and ChotaN’agpur.

The world famous Kohinoor Diamond diamond was also found from a Golkonda mine. The Mughal rulers also.established state factories at Lahore, Agra, Fatehpur. Sikri and Ahmedabad where most superior goods for the royal household were manufactured. The trade both internal and external trade highly developed. The internal trade was carried on by road and rivers.

The external was carried on-by both land and sea routes. India had established close commercial relations with Europe and Asia. Lahore and Multan were two chief centred of trade.conducted on land routes. The sea well-known sea ports were Surat, Broach, Cambay, Bassein,Goa, Calicut, Cochin, Nagapttam, Masulipattam,-Chittagong, etc.

India exported cotton and silk textiles, spices, Indigo, Shawls, etc. while she imported gold, silver, raw silk, diamonds, precious stones, ivory, perfumery, medical drugs etc. The Mughal rulers charged very little import export duty of 3\(\frac { 1 }{ 2 }\)%. The Mughals paid particular attention to the construction and repairs of roads with the object of encouraging trade. Trees were planted on roads and serais were built. So that travellers and traders might not experience any difficulty at night times. It was due to this trade that different industries were developed which led to increase in the state revenue.

The increasing industries and trade also contributed to the growth of big and prosperous cities in India. Lahore, Agra, 7 Ahmdabad, Fatehpur Sikri, etc, were some importance cities. Thus, India was a prosperous country during the Mughal period. Hence the Persian invaders like Nadir Shah and Ahmed Shah . Abdali invaded and plundered the wealth of India.

However, the economic condition of India began to deteriorate during the last days of Aurangzeb. The chief cause of it was disturbances, conflicts’and revolts in the empire which affected agriculture trade and industries adversely. Consequently it led to the deterioration of the economic condition of the country. After his death, the economic condition went form bad to worse. The wars of succession, the Maratha attacks all led to the deterioration of the economic condition of the Mughal empire.

Question 5.
What were the factors responsible for the rise of the Marathas.
Answer:
A number of factors contributed to the rise of Marathas:

(a) Physical features of the country :
The country ofthe Marathas possessed certain distinct features which gready contributed to the development of military and moral qualities for which they are known. The unproductive soil and scanty rains made the people hard and helped in the development of qualities like courage and self-reliance. The mountainous territory gave security to the Marathas from outside invaders. It also made them hard soldiers who were not afraid of difficulties and hardships. The mountainous nature helped them to develop guerilla tactics of warfare.

It was primarily because of the mountaineous nature of the country and guerilla warfare adopted by the Marathas, that the Moghuls despite their enormous resources could not crush them. The difficulties of finding livelihood, made them to work hard. Without these qualities they would have faced death from starvation.

(b) Bhakti movement:
Bhakti movement of the 16th and 17th cen’s in Maharashtra also played an important role in forging a spirit of unity and equality among the Marathas. The spread of the Bhakti movement inculcated the spirit of Oneness among the Marathas. The religious reformers of Maharashtra, like the reformers in other parts of the country, severely condemned the various superstitions, rituals. Caste system, etc., The main teachings of the leaders were Bhakti or devotion to god and equality of all men before God without any distinction of class or birth. The Bhakti movement united the people of Maharashtra in a common love of man and faith in One God. It created unity among the various sections of society.

Some of the prominent Bhakti leaders were Tukaram, Ram Das, Yaman Pandit and Eknath Shivaji considered Ramdas as his Guru. He exercised a tremendous influence on Shivaji and his country men. In his book called ‘Dasa Bodhi’, Ramdas taught the philosophy of Karma or action. He was not only a religious preacher but also a nation builder.

(c) Influence of literature and language :
The literature of language of Marathas also acted as a unifying force. The hymns of Tukaram were sung by all the classes and v they served as a bond of unity among people who belonged to different sections of society. The different religious preachers preached through Marathi language which was understood by all the sections of society. The writers of this period successfully roused a sense of pride in the common cultural heritage.

(d) Administrative and Military training :
Even before the appearance of Shivaji on the scene, the Marathas had acquired training in the art of administration and also in the field of military. For nearly 3 cens, some of the Maratha leaders served the Muslim states of Ahmednagar, Bijapur and Golkonda and thus gained sufficient experience. Some of the Maratha leaders were assigned very important positions in these states like Murari Rao and Madan Pandit worked as Minister and Diwan, respectively in Golkonda. The Maratha solders were employed first in Bahamani kingdom and later on in the 5 states into which it was broken up. The training this acquired in arms and civil administration brought to the Marathas education, power and wealth.

The rise of Marathas was therefore not a sudden or an isolated phenomenon. It was the natural result of about 200 years preparation under the stress of a religious and social movement which called forth the latest energy of the people and gave them a new lease of life and hope.

SECTION-D

Answer any three of the following questions. (3×5=15)

Question 1.
Prithviraj Chauhan:
Answer:
The first Rajput ruler who felt the pressure from the invading Mohammad Ghor’s army was Prithviraj, the Chauhan prince of Ajmer. He ruled from Ajmer to Delhi & defended the north-western frontier. He had fortified important towns on this frontier upto Bhatinda to safeguard any invasion from the north west to India.

Mohammed Ghor made his first attack on the fort of Bhatinda & besieged it in 1189 A.D. Prithviraj seems to have not been ready. Probably it was a surprise attack. They were defeated & had to surrender. Mohommad Ghori stationed his men in the fort under Zia-ud-din, a commander. When Mohommad Ghori was about to return, Prithviraj appeared to recover the fort. Mohommad Ghori had to turn to Prithviraj to face Chauhan & a battle was fought near Tarain, situated near Bhatinda in 1191 A.D.

Prithviraj’s troops attacked the sultan & inflicted a terrible defeat to him. Mohommad Ghori was seriously wounded & was taken away from the field by 1 of his officers. Prithviraj took 13 months to recover the fort of Bhatinda from Zia-ud- din.

The defeat caused great humilitaiton to Mohammad Ghori, Mohammad Ghori wanted to take revenge of his defeat & made great preparations. When the preparations were complete, with 1,20,000 cavalry, Mohammad Ghori marched to India. On reaching Lahore, an ambassador was sent to Prithviraj to surrender. This was done to gain time to complete his preparations.

Prithviraj rushed towards Bhatinda & appealed to some of the Rajput rulers to help him. 150 Rajputs came to his help with a combined army of 5 lakhs of horse & 3,000 elephants, according to Ferishta (which must be exaggerated), Prithviraj met Mohammad Ghori on the same field of Tarain. The Rajputs fought bravely but Mohommad Ghori’s tactics proved great for them. Prithviraj’s chief Lieutenant Govind Raj who had been responsible for defeating & wounding Mohommad Ghori in 1191 was killed. Prithviraj became dejected & escaped from the field. But he was captured near the town of Sirsa & Mohommad Ghori won.

There is more than 1 version about the time & manner of Pfithviraj’s. death, Minhaj-us-Siraj says that he was captured and ‘Sent to Hell’. Nizami tells that he was taken to Ajmer & was put to death sometime after as he was found guilty of treason. This view seems to be correct. There are in existence some of the coins of Prithviraj which bear the Sanskrit superscription ‘Hamira’, indicating that he had accepted Muhammed’s Suzerainty & had lived-for some time after the II battle of Tarain. Chand Bardai’s version that he was taken to Ghazni & put to death.

Question 2.
The First Battle of Panipat.
Answer:
The First Battle of Panipat was fought in 1526 between Babur & Ibrahim Lodi, This battle is important because it brought about the end of Delhi Sultanate & it laid the foundation of Moghul Dynasty.

Causes:
[1] The weak Political condition of India tempted Babur to attack. Ibrahim Lodi was weak & unpopular. He had alienated his nobles & Chiefs. The Governments of Punjab; Sindh, Multan, Bengal were practically become independent from Ibrahim Lodi.The Rajputs states were under Rana Sanga of Mewar. In the Deccan, the Bahamani kingdom had split into 5 branches. Thus, India was divided into numerous independent states. A strong ruler was absent to hold them together.

[2] The wealth of India attracted Babur. Babur was a great conqueror. He had insufficient income which made him to caputure India & establish a strong empire in India.

[3] Babur was highly ambitious. He tried to create an extensive empire in central Asia & to conquer Samarkhand. But he failed to capture it. So he turned his attention to India t0 fulfil his ambition of founding an empire. He was invited by several Indian nobles & rulers to attack India. Alam khan Lodi an uncle of Ibrahim Lodi claimed the .throne of Delhi & invited Babur to attack India, Daulat khan, the governor of Punjab also invited him to attack India so that he can,rule over punjab independently. Even Rana Sangha of Mewar also invited him so that he could capture Delhi after he returns home.

Babur made elaborate preparations & invaded Punjab. Daulatkhan surrendered. From there he proceeded to Delhi & met the. army of Ibrahim Lodi at Panipat. Babur in his autobiography ‘Babur Nama’ says that with 12,000 soldiers he defeated Ibrahim Lodi whose army consisted of one lakh soldiers. For 8 days both the armies faced each other and never fought. The real battle started on the morning of April 21, 1526 A.D. & by noon it was over. Ibrahim Lodi was killed in the battle & people welcomed Babur. He gave presents to all in Delhi.

Results:
The victory of Babur led to the establishment of the Mughal rule in India. From 1526 they ruled for more than 250 years. At the same time it led to the end of Lodi dynasty. Babur’s general ship & efficient army made him to win. Ibrahim Lodi was weak & inexperienced. He was unpopular among his nobles & had lost the loyalty of his subjects.

Thus, the I battle of Panipat placed the empire of Delhi in the hands of Babur.

Question 3.
Bairam Khan.
Answer:
Bairam Khan was a native of Badakshan & a follower of the Shia faith. He served Humayun & Akbar faithfully. He remained with Humayun even when Humayun was wandering as a refugee in search of shelter. It was because of Bairam Khan that the ruler of Persia gave military help to Humayun, as Bairam Khan was a Shia. With that help, Humayun successfully reconquered Kabul, Kandhar & India.

In reconquering India, Bairam Khan greatly helped Humayun. Humayun owed his victory in the battle of Sirhind entirely to the bravery of Bairam Khan. Humayun appointed him as the Governor of Sirhind & adorned him as ‘Khankhana’. As Humayun considered him as a trustworthy follower, he appointed Bairam Khan as the tutor for his son Akbar.

In Punjab when Sikandar Suri & other supporters of Suri dynasty revolted in 1555 A.D. Humayun sent Akbar with Bairam Khan to suppress it. They had not even put down the rising completely, when they received the news of Humayun’s death.

On 14 February, 1556, he crowned Akbar as the king at KalaUaur. He served Akbar too faithfully like his father. At the time of Akbar’s coronation, he was not the master of any territory. Hemu, the minister of Adil Shah, had occupied Delhi & Agra, which made Akbar’s position all the more worst. Some of the Akbar’s soldiers advised him to return to Kabul as it was difficult to resist Hemu. But it was only Bairam Khan who stressed the need to go forward to check Hemu.

Thus, the credit for Akbar’s victory in the second Battle of Panipat entirely goes to Bairam Khan as Akbar then was only a child. Bairam Khan killed Tardi Beg, the Mughal Governor of Delhi at the right time & thus crushed the spirit of rebellion among the Sardars.

It was due to his efforts that the foundations of Mughal empire was laid again in India when he recaptured Delhi & Agra. Thus, it was he who conquered the Indian empire for Humayun firstly & for Akbar, the second time.

Bairam Khan continued to be the regent of Akbar 1556-60. During this time he not only suppressed the revolt of the Sardars but also conquered many terrtories for Akbar. It was because of him that Sikandar Suri accepted Akbar’s sovereignty. He also conquered Gwalior, Jaunpur, Ajmer for Akbar.

But Bairam Khan could not maintain his position for a long time & his fall commenced from 1560. Owing to his sudden rise to power, he became arrogant & began to neglect the other Sardars & nobles. So they became jealous of him & began to conspire against him. As he was a Shia, he appointed Shias on high posts. This made Sunnis turn hostile against him. He began to award harsh punishments to his enemies & also began-to appoint his friends and relatives to all high posts. This could not be tolerated by other chiefs.

Not only that Akbar had grown up by then & wished to rule independently. He did not like to depend on his regent for everything. In doing this he was encouraged by his mother, Hamida Banu, his foster mother Maham Anaga, her son Adham Khan & Shahab-ud-din, the Governor of Delhi, encouraged Akbar to remove Bairam Khan from Akbar. Maham Anaga sent for Akbar from Agra on pretence that his mother was ill. When he came to Delhi, she began to poison his ears against Bairam Khan. A rumour also began to spread that Bairam Khan was trying to place Abdul Qasim, Kamran’s son on the throne of Delhi.

Akbar was nowfirmly determined to assume all power & sent orders to Bairam Khan to proceed to Mecca after handing over the charge of state affairs. Akbar also assured him that a suitable jagir would be given to him for his maintenance. Bairam Khan did not revolt & agreed to proceed to Mecca. However, he was highly offended when Pir Muhammad his rival was sent to pursue him to hasten his departure for Mecca. At the instance of his supporters he revolted against Akbar.

Akbar sent an army against Bairam Khan who was defeated & taken as a prisoner. He was presented before Akbar who forgave him in recognition of his past services & advised him to proceed to Mecca. When he was on his way to Mecca, near Gujarat, he was murdered by an Afghan in 1561. Akbar was distressed when he received the news of the death of his regent. In 1584, he bestowed on Bairam Khan’s son Abdur Rahim, his father’s title of ‘Khankhana’.

Question 4.
Sufism.
Answer:
There is a controversly among scholars regarding the origin of sufism. According to Dr. A.L. Srivastava, Sufism was profoundly influenced by Hindu thought, beliefs & practices. The very concept of loving God & the relations between God & soul as one of the beloved & the lover are peculiar to Hinduism & were adopted by the Sufi’s in India. The Pacifism & non-violence which were imbibed by the Sufis in India were peculiar to Hinduism, Buddhism & Jainism. Some of the ascetic practices involving starvation & torturing of the body were borrowed from the Hindu & Buddhist practices.

Prof. Arberry describes sufism as “the attempt of individual Muslims to realise in their personal experience the living presence of Allah”.

There is also a difference of opinion among scholars regarding the origin of the word ‘Sufi’. One view is that the word Sufi was derived from the word ‘Safa’ which means ‘Pure’. Those saints who advocated a life of purity & renunciation were called Sufis. Another view is that the word Sufi is taken from the Greek word ‘Sophia’ meaning knowledge. Another view is that those»persons who took shelter outside the Mosque constructed by Prophet Mohammad at Madina & got devoted to God were called Sufis.

Sufism entered India in the 12 century A.D. with the Muslim invaders & became popular in the 13 Century.

Sufism sprang from the doctrine of Wahdat-ul-wujud / the unity of Being. It means God is the unity behind all plurality & the ‘Reality’. It emphasises that there is nothing in existence except God to achieve their union with God, the Sufis had to pgss through 10 stages of sprititual development in which there was. excessive love for God. As a lover longs for his beloved, similarly a Sufi was inspired to unite in God & forget everything else.

The Sufis renounced the materialistic pursuits. They did not have contact with the rulers & adminisrators & refused Government service. They taught love for humanity & believed in Poverty, non-violence & vegeterian diet. Their main goal was union with God & service to humanity.

Sufi derived their inspiration from Isalm. But they did not belive in observance of rituals & morals like the orthodox Muslims. They believed in inner purity & were spiritualistic in their outlook. They stressed in observing simple life. They did not believe in Caste System & preached in Urdu, Arabic & Persian, etc.

The Sufis in India converted a large number of Hindus to Islam.

They spread the message of equality of Islam to the low caste Hindus. They learnt the language, religion & practices of the Hindus & to win over them, Sufis tried to look like Hindu Sadhus. They adopted some of the practices of Hindus to ‘ remove suspicion from their minds.

Abul Fazl mentions 14 orders / Silsilahs of the Sufis in India. The Chishti, Suhrawardi, Naqshabandi, Qadri, were important. The ‘most famous Sufi order of India was the Chisthi order. It was founded by Khwaja Abdul Chishti in Herat & was brought to India by Khwaja Moin-ud-din Chisthi. He was the founder of Chisthi order in India. He arrived at Lahore in 1161 A.D. & settelled at Ajmer. He worked among the low caste people & served the helpless & down-trodden. His view was that the greatest form of devotion to God was in service to humanity. He earned great popularity. His tomb at Ajmer attracts people every year.

The Chisti order was patronised by Mughals. Akbar believed in Sheikh Salim Chishti of Fatehpur Sikri. Abul Fazl & Faiz were also Sufi Saints.

During the time of Sheikh Nizamuddin Auliya, the Chisti order reached its peak.

Question 5.
Mira Bai (1498-1546) – A.D.:
Answer:
was a great saint of the Bhakti movement. She was born at the village of Kudka in Rajasthan in or about 1498 A.D. She was the daughter of Rana Ratan Singh of Me war and the wife of Bhoj Raj, the eldest son & heir apparent of Rana Sangha of Mewar. Bhoj Raj died in the life time of his father leaving Meera, a widow in her youth. She was highly religious from her childhood & a follower of Lord Krishna. After her husband’s death, she dedicated herself up completely to a life of devotion.

When she lost her father also, she went to reside with her uncle Biram Deva.

Rana Vikramaditya tried to get rid of her by poison but failed. She remained engrossed in spiritual meditation & religious music & dance. She also continued having Kirtan in the company of religous men & women of Mathura & Brindavan. The central theme of Mira’s Bhajans was Giridhar Gopal (Lord Krishna).

The message of Mira was that none by means of birth, poverty, age or sex can be debarred from His divine presence. The only way is that of Bhakti.

Mira Bai was not a reformer / preacher like Kabir. She accepted all the tenets of Bhakti & followed them unwaveringly all her life. Like most devotees her ultimate goal was the release from the cycle of birth & re-birth & to be united with the Supreme Being, who for her was symbolised in human, personal, & joyous form of Krishna. She died in 1546 A.D. Her Bhajans are sung all over India with devotion even to this day.

BA 2nd Sem Economics Model Question Paper 1 with Answers

BA 2nd Sem Economics Model Question Paper 1 with Answers

Time: 3 Hours
Max. Marks: 100

PART – A

1. Answer any ten of the following sub questions. Each question carries two marks: (2 x 10 = 20)

Question (a)
What do you mean by a firm?
Answer:
A firm is an organization which produces and supplies goods that are demanded by the people.

Question (b)
Distinguish between Firm and Industry. (Nov./Dec. 2006)
Answer:
Firm is a single unit engaged in production of goods and services. Industry is a group of several firms which are engaged in production of same kind of goods or services.

Question (c)
What is meant by Break-Even point.
Answer:
The break-even point may be defined as that level of sales in which total revenues equal total costs and net income is equal to zero.

Question (d)
State the meaning of‘monopoly’.
Answer:
Monopoly is that market form in which a single producer eonrtrols the whole supply of a single commodity which has no close substitutes. This sole seller in the market is called “monopolist”.

Question (e)
What is ‘administered pricing’?
Answer:
Administered prices are the prices of commodities fixed by the government to prevent price escalation, black-marketing and shortages in supply. The objective of administering the price of some essential commodities is to prevent any sudden rise in their prices and to ensure reasonable prices to the users.

Question (f)
What is Kinked demand curve?
Answer:
The term ‘kink’ refers to a short backward twist to cause obstructions. A kinked demand curve is said to occur when there is a sudden change in the slope of the demand curve. This gives rise to a kink, that is, a sharp corner in the demand curve. This arises when it is assumed that competitors will lower their prices when %, the oligopolist lowers his own price but will not raise their prices when oligopolist raises his price.

Question (g)
State the meaning of product differentiation.
Answer:
Product differentiation is an important characteristic of monopolistic competition. The products of various sellers are fairly similar and serve as a close substitute to each other. Product differ-entiation means that the products are different in some ways, but not totally. The differentiation is done in such a way that each one has a monopoly of his own product. For example toothpaste, brush, soap etc.

Question (h)
What is super profit?
Answer:
The surplus profit earned over and above the normal profit is known as super profit. In market period (i.e., very short period) the firm earns super profit. As the demand is more than supply, the prices of the commodities increases at this period.

Question (i)
Give the meaning of duopoly.
Answer:
Duopoly is a market with two sellers exercising control over the supply of commodities. It is a two firm industry. The action by one will have reaction from the other.

Question (j)
What is full-cost pricing?
Answer:
Full-cost pricing is the method of pricing adopted by manufacturers, wholesalers and retailers. Under this type of pricing, firstly the cost of goods manufactured.or purchased for resale is ascertained and then a percentage of profit is added to this to ascertain the selling price.

Question (k)
What is trade cycle or Business cycle?
Answer:
A business cycle refers to wave like fluctuations in aggregate economic activity particularly in national income, employment and A output. A business cycle is a very complex economic phenomenon and it is associated with alternating period of prosperity and depression.

Question (l)
Give the meaning of devaluation.
Answer:
Devaluation is a deliberate reduction in the external value of a country’s currency in relation to the currencies of all countries or selected countries. This is done by an official edict or announcement by the government when all other regular measures fail to correct disequilibrium in BOP.

PART-B

Answer any four of the following. (4 x 5 = 20)

Question 2.
State the assumption of Break even analysis.
Answer:
The break even analysis is based on the following set of assumption.

  1. The total cost may be classified into fixed and variable cost, it ignores semi variable cost.
  2. The cost and revenue functions remain linear.
  3. The price of the product is’ assumed to be constant.
  4. The volume of sales and volume of production are equal.
  5. The fixed cost remain constant over the volume under consideration.
  6. It assumes constant rate of increase in variable cost.
  7. The price of the product is assumed to be constant.
  8. It assumes constant technology and no improvement in labour efficiency.
  9. The factor price remains unaltered.
  10. Charges in input prices are ruled out.
  11. In the case of multi product firm the product mix is stable.

Question 3.
What is dumping? Is it economically advisable? Discuss.
Answer:
Dumping means charging a higher price in the domestic market and a lower price in the foreign market for the same product. Under dumping, it is assumed that perfect competition exists in the foreign market, while the monopolist enjoys monopoly power in the domestic market. In other words, in the foreign market the elasticity, of demand for the monopolist’s product is elastic, but in the home market elasticity of demand for his product is inelastic.

The monopolist may resort to dumping for a variety of reasons such as to get rid of surplus production, with the intention to secure monopoly power by driving competitors away in the foreign market. Again in the absence of dumping, the output in the home market will be less. So, naturally the cost of production will also be higher Thus dumping may be used to realise economies of production, and also to develop new trade connections.

Question 4.
Explain briefly about:
(a) Cost-plus pricing
(b) Target-rate pricing.
Answer:
The actual pricing of products depends upon various factors and considerations. The various pricing methods adopted in ascertaining the price for a product are as follows:
(a) Full-cost pricing or cost plus pricing method:
Under this method a firm computes the price of its product by adding certain percentage to the average total cost of the product. The percentage added to costs are called as margin or mark-ups. Hence, this method is also called as margin – pricing and mark – up pricing.
Cost + Pricing = Cost + Fair profit
This method envisages to cover the total costs incurred in producing and selling a commodity. In this case business men do not seek super normal profit. Under this method, the consumers accept a price rise when costs rise. They do not feel that they are exploited. Hence, this method helps the businessmen in maintaining demand for their products. This method is considered to be more safer as it retains , stability in prices. This method is considered to be the best method for the firms producing new products because the firms can realise their normal profits under this method and it also protects them from price-wars or competition.

(b) Rate of return pricing or target pricing:
Rate of return pricing is the method of pricing, where the price is determined based on the pre-determined target rate of return on capital invested by the manufacturer. Under this method, the price is determined by the planned rate of return on investment which is expected to be converted into a percentage of the mark up. The profit margin is determined on the basis of the rate of production and the total cost of a years normal production. Then, the capital turnover is computed by taking the ratio of invested capital to the annual standard cost. Then the mark up percentage of profit is obtained by multiplying capital turnover by the goal rate of return. Percentage Mark-up = capital turnover x desired rate of return.

Question 5.
What is monopolistic competition? State its features.
Answer:
In the words of Left-witch, ‘Monopolistic competition is a market situation in which there are many sellers of a particular product; but the product of each seller is, in some way differentiated in the minds of consumers from the product of every other seller.”
The main features of monopolistic competition are:
(1) Large number of firms: Under monopolistic competition there are many firms producing the products, but not as many firms as in perfect competition. Each firm contributes only a small portion of the total output and has a limited control over the price of the product.

(2) Independent price policy: The firms are producing differentiated products, which are close substitutes, and as such, each determines the price taking into consideration only his cost of production and demand.

(3) Free entry and exit of firms: Each firm produces a very close substitute for the existing brands of a product. Thus, differentiation provides ample opportunity for a firm to enter with the group or industry. On the contrary, if the firm faces the problem of product obsolescence, it may be forced to go out of the industry.

(4) Element of monopoly and competition: Every firms enjoys some sort of monopoly power. But it is neither absolute nor complete because each product faces competition from rival sellers selling different brands of the product.

(5) Similar products but not identical: Under monopolistic competition, the firms produce commodities, which are similar to one another, but not identical or homogeneous. Example – toothpastes, blades, etc.

(6) Non-price competition: In this market, there will be competition among ‘ ’mini monopolists” for their products and not for the price of the product. Thus, there is ‘’product competition” rather than ‘’price – competition”.

(7) Definite preference, of the consumers: Consumers will have a definite preference for a particular variety or ‘brand loyalty’, owing to the special features of a product produced by a particular firm.

(8) Product differentiation: The most outstanding feature of monopoliStic competition is product differentiation. The producers adopt different techniques to differentiate their products from one another.

(9) Selling costs: It is also an important feature of monopo-listic competition. The expenses incurred for advertisements and other selling mediums are called selling costs. Most important form of selling cost is advertisement cost. This is undertaken by the firm in order to popularize his brand in the market.

(10) Market is characterized by imperfections Both the buyers and sellers do not have perfect knowledge of the market. As there are large no. of products, each being close substitute of the other, the consumer may not be able to choose the right product. Similarly, the seller does not know the exact preference of the buyers and hence he cannot get any added advantage out of the situation.

(11) Have more elastic demand curve Product differentiation makes the demand curve of the firm much more elastic. It implies that a slight reduction in the price of one product assuming the price of all other products remaining constant leads to a large increase in the demand for the given product.

Question 6.
Bring out the features of oligopoly.
Answer:
“Pollein” means to sell. Oligopoly refers to that market situation in which there are a few sellers of identical product or differentiated products.
The main characteristics of Oligopoly are:
(1) Few sellers : The important features of oligopoly situation is that the number of sellers are limited.

(2) Interdependence: Under oligopoly, a firm has to take into consideration the actions and reactions of other firms while determining the price and the level of output. The cross-elasticity of demand for their products is very high because of the availability of close substitutes. This i s the reason that no firm would like to change its existing price. Only in some abnormal cases they may dare to take independent decisions.

(3) Presence of Monopoly power: As the number of firms in oligopoly market is very small, collusion among them is possible. Under collusion, the firms act as monopoly and they may charge’higher prices for their products.

(4) Price Rigidity : In oligopoly, situation, each firm has to stick to its price. If any firm tries to reduce its price, the rival, firms will also reduce their price even further. This leads to price war which benefits none of them. Again, if any firm increases its price with an intention to increase its profits, the other rival firms will not follow the same. Hence, no firm would like to reduce the price or to increase the price. The price rigidity will take place.

(5) Huge Advertisement Expenditure: As the firms under oligopoly produce close substitutes and they are interdependent, no firm can change its price. In order to increase the sales, the firm has to spend a lot on advertisement and improve the quality of the product. Under oligopoly, the products of various firms can be differentiated effectively only by advertising.

Question 7.
What are the objectives of a pricing policy?
Answer:
The main aim of every business is to maximise profit, to have long survival and greater share in the market. All these objectives can be achieved through its pricing policy. Thus the main objectives of pricing policy are as follows:
(1) Maximising profit in short term : If a firm wishes to maximise its profit and make more money, it can set its price at a higher rate.

(2) Long survival: In case the company wishes to stay in the same line of business for a long time, it can resort to a pricing policy wherein it gets continuous business. Generally to attract customers and create demand for its commodity a firm may fix a lower price. In such a case, a firm is ready to forgo some portion of profit.

(3) Larger share in the market: To capture a larger share in the market, a firm may adopt a pricing policy to dominate the market. This type of pricing policy is usually adopted in oligopoly types of market structure.

(4) To avoid competition : The firms may prevent new entry through its pricing policy. For instance, a monopolist may charge low price, so that a new firm cannot charge such a low price. If at all it does, it has to face severe loss at the initial stage itself and ultimately may discontinue such business.

(5) Service oriented: If the firm’s objective is service oriented and not profit motive, it may resort to lower price in order to serve the society.

(6) Regular flow of income : In order to maintain regular flow of income, a firm may adopt a pricing policy accordingly.

(7) Growth and Expansion: A firm may set a pricing policy which facilitates fast growth and expansion of the business.

(8) To stabilise prices : By stabilising prices and profits, the firm ensures a regular flow of Income. Stable prices win customer’s confidence and increases the reputation of a firm.

PART – C

Answer any four of the following. (15 x 4 = 60)

Question 8.
What is perfect competition? Illustrate with significant time element equilibrium price and output situation in perfect competition.
Answer:
Perfect competition is defined as a market form where all sellers are selling homogeneous product at a uniform price. Perfect competition is said to prevail ‘when there are large number of firms producing and selling the homogenous product, the buyers and sellers know the price of the product and the firms enjoy perfect ‘ freedom whether to produce the product or not.

The role of time in determining price and output:
Prof. Marshall has introduced the concept of time element in the theory of value to show the relative influence exerted by demand and supply. Value or price of a product varies with the period of time under consideration. On the basis of time, Marshall has classified price determination under four heads.

They are as follows:

  • Very short period or market period.
  • Short period
  • Long period
  • Secular period or very long period.

(1) Market period: The market period is a very short period. During this period, the supply of a product is fixed or limited to existing stock. Thus, supply of the commodity tends to be perfectly inelastic.
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 1
As shown in the above diagram, though there is increase in demand from DD to D1 D1, since the supply being constant (vertical straight line), the price increases from OP to OP1. The quantity supplied remains the same at OM.

(2) Short period: The short period refers to that period during which the supply of the commodity can be changed to some extent though the scale of production remains un-changed. Unlike the market period supply curve, in the short period supply curve will be elastic to some extent.
 BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 2
It is clear from the above diagram that supply can be adjusted to certain extent when there is an increase in demand. When the demand increases from DD to D1 D1, the price also increases from OP to OP1 resulting in increase in supply from OM to OM1.

(3) Long Period: It is a period in which there is plenty of time for the firms to change the size of their plants or build new plants. New firms may also start producing this commodity by installing more modem plants. As a result of expansion of the firms, the output rises considerably. The long period supply curve will be more elastic and the supply curve will lie flat.
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 3
The long period equilibrium price is determined at the point of intersection between long period supply curve and the new demand curve. In the long period, a larger output is supplied and sold at lower prices. In the above figure it is clear that, when the demand in-creases from DD to D1D1, the price also increases from OP to OP1. But at the same time supply also increases from OM to OM1. The increase in supply is greater than the increase in price in the long run.

(4) Secular price: It refers to very long period. It includes all . those changes in demand and supply which require a very long period of time such as size of population, supply of raw materials, supply of capital, etc.

Question 9.
What is Pricing Policy? Elucidate the methods of Pricing Policy.
Answer:
The actual pricing of products depends upon various factors and considerations. The various pricing methods adopted in ascertaining the price of a product are as follows:
(1) Full-cost pricing or cost plus pricing method:
Under this method, a firm computes the price of its product by adding certain percentage to the average total cost of the product. The percentage added to costs are called as margin or mark-ups. Hence, this method is also called as margin-pricing and mark-up pricing.
Cost + Pricing = Cost + Fair profit.
This method envisages to cover the total costs incurred in producing and sellin g a commodity. In this case businessmen do not seek super normal profit. Under this method, the consumers accept a price rise when costs rise. They do not feel that they are exploited. Hence, this method helps the businessmen in maintaining demand for their products. This method is considered to be more safer as it retains stability in prices. This method is considered to be the best method for the firms producing new products because the firms can realise their normal profits under this method.

(2) Rate of return pricing or target pricing:
Rate of return pricing is the method of pricing, where the price is determined based on the pre-determined target rate of return on capital invested by the manufacturer. Under this method, the price is determined by the planned rate of return on investment which is expected to be converted into a percentage of the mark up.

The profit margin is determined on the basis of the rate of production and the total cost of a year’s normal production. Then, the capital turnover is computed by taking the ratio of invested capital to the annual standard cost. Then the mark up percentage of profit is obtained by multiplying capital turnover by the goal rate of return. That is, % Mark-up = Capital turnover × desired rate of return.

(3) Marginal cost pricing:
Marginal cost pricing refers to the method of determining the price on the basis of marginal or variable cost. Under this method, fixed costs are ignored and pricing is determined on the basis of marginal costs. The price so determined must cover the marginal cost and the total cost will have to be covered in the long ran.

This method of pricing permits a producer to resort to aggressive price policy than is possible under full cost pricing. This type of pricing is very much useful over the life cycle of a product. Under the conditions of change, marginal cost is the most suitable method of short run pricing. The only difficulty in marginal cost pricing is ignorance of the marginal cost techniques.

(4) Going rate pricing:
The going rate policy means, adjusting its own price policy to the general price structure in the industry. This type of pricing is opposite of full cost or cost- plus pricing. This method is adopted when it is not possible to measure costs. This type of pricing is adopted when the price leadership is very well established. This method is very easy as there is no need to ascertain cost under this type of pricing. It is also called as acceptance pricing. It is economical and avoids competition. But it is not possible to find out going rate price for new products. It is not suitable for products whose market is diminishing.

(5) Administered prices:
Administered prices are the prices of commodities fixed by the govt, to prevent price escalation,black marketing and shortage in supply. The main objective of this method is to prevent sudden rise in prices. For commodities such as cement, steel, fertilizers, etc., this type of pricing is adopted in order to stabilise the prices at a reasonable level.

This method is useful to both the consumers and the producers. It protects the interests of the weaker sections of the. society by discouraging and encouraging the consumption of certain commodities. On the other hand it helps producers by ensuring efficient allocation of scarce resources. However if any changes need to be introduced in this method, it can be done so when there is change in cost of production.

Question 10.
What is monopoly? State its features. Illustrate the equilibrium Price and output determination in monopoly.
Answer:
Monopoly is that market form in which a single producer controls the whole supply of a single commodity which has no close substitutes.

The features of Monopoly are –

  • There will be a single seller in the market. And the buyers will be large in number.
  • There is no close substitute for a product produced by monopoly and so buyers have no alternative or choice.
  • There is complete absence of competition.
  • Monopolist is a price-maker. He fixes the price for his product as he wishes. He may also charge different prices to different customers.
  • Only one firm constitutes the industry. Therefore there is no difference between firm and industry.
  • Entry of new firms restricted, either due to natural or artificial barriers.
  • He can fix both price and quantity to be sold in the market.
  • Super normal profits will be gained as market price is much greater than cost of production.

Price Output Determination in the short period:
Fixed factors of production remain same. Variable factors are changed to change the supply. Plant capacity cannot be changed. The volume of production can be changed only with the help of existing plants and machines.

The Monopolist can fix his price equal to, above or less than the short period average cost of the product and thus earn normal profits, super-normal profits or incur losses. He compares MR and MC. If MR exceeds MC, he can increase profit by increasing production. If MC exceeds MR, he can minimize his losses by reducing production. So the point of Price -output determination is where MR = MC.

The 3 cases of monopoly equilibrium can be shown through the following figures.
AR > AC
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 4
AR = AC
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 5
AR < AC
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 5a

Price output Determination in the long run:
Supply can be adjusted to demand conditions because both fixed and variable factors can be changed. So total amount of profit in the long run depends on the cost conditions under which the monopolist operates production and the demand curve he has to face.

The demand curve slopes downwards from left to right as price gets reduced. MR is less than AR and so MR curve lies below AR curve. The monopoly firm continues operations till it reaches the equilibrium point where long run MR equals long run. MC.
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 6
In the diagram, monopoly firm reaches equilibrium at E. Here MR= MC and MC curve cuts MR curve from below. The monopolist will stop his output before AC reaches its minimum point. He restricts his output to maximize profits. OQ is the output. The price charged is OR(PQ) that is equal to AR. The total profits is NRPM. Monopoly price is generally higher than competitive price and so detrimental to the interests of the society.

Question 11.
Describe the phases of a business cycle. What are the measures adopted to control their evil effects?
Answer:
A business cycle refers to wave like fluctuations in aggregate economic activity particularly in national income, employment and output. A business cycle is a very complex’ economic phenomenon and it is associated with alternating period of prosperity and depression.
The various phases of a trade cycle are:
BA 2nd Sem Economics Model Question Paper 1 with Answers IMG 7
(1) Depression, contraction or downswing:
It is the first phase of a trade cycle. During this period, the level of economic activity is extremely low. There will be fall in production, increase in unemployment, falling prices, falling profits, low wages, contraction of credit by the banks and other financial institutions and a high rate of business failures.

During this phase, the capital goods industries suffer more than consumer goods industries. Prices of agricultural goods fall rapidly than industrial goods. It is a period of great suffering and hardship to the people. Thus it is the worst phase of the business cycle.

(2) Recovery or revival:
It refers to the lower turning point at which the economy under goes changes from depression to prosperity. The recovery helps to restore the confidence of the business people and create a favourable climate for business ventures. The low wages, interest rates, cost of production, recovery in marginal efficiency of capital, etc., induce the business people to under take new ventures. Repairs, renewals and replacement of plants takes place. Construction activity receives an impetus. As a result, the level of employment, output, income, wages, prices, profits, start rising.

(3) Prosperity or full employment:
Prosperity phase refers to a state where the economy attains maximum growth with full employment and the movement of the economy is beyond full employment. The period of prosperity is also called as period of expansion or upswing in the business cycle.

During the period of prosperity, an economy experiences a high level of output and trade, effective demand, high level of employment and income, marginal efficiency of capital, price inflation, rise in interest rate and large expansion in bank credit.

(4) Boom or over full employment or inflation:
Boom is a final stage of a business cycle where the business activity expands very rapidly. Economy rises to new heights. During this phase, prices, wages, interest, profit move in the upward direction. Business people borrow more and invest. There is higher output, income and employment. There is higher purchasing power and the level of effective demand will reach new heights. There is an atmosphere of “over optimism’’ all round which results in over investment. The boom carries with it the gens of its own destruction.

(5) Recession:
It is a turning point from boom condition where prosperity ends and recession begins. Recession refers to a situation where there is a decline in overall business activity. During this phase there is a fall in the level of income and output. Unemployment starts increasing. The bank credit decrease. Pessimism start prevailing among investors.

The study of various phases of business cycle is of par-mount importance to a business enterprise. It helps in demand forecasting, sales forecasting, capital budgeting, etc. The measures adopted by business firms to reduce ill effect of the business cycle can be classified into 2 categories.

  • Preventive measures and
  • Relief measures.

(i) Preventive measures:
Preventive measures refers to those measures which would s be adopted particularly during the period of expansion for the purpose of regulating business and to avoid unwise experience in the future.
The following are the preventive measures to be taken by the business man to avoid adverse effects during the period of expansion.

  • Avoid undue increase in investment made in plant and equipments.
  • Avoid decrease in production, increase in overhead costs and it should maintain steady employment throughout the year.
  • The firm should not stock excess inventories
  • Avoid purchase commitments in excess of financial resources.
  • Avoid excessive booking of orders which results in concellation at later stages.
  • Avoid borrowing on a large scale during expansion.

(ii) Relief measures:
Relief measures refer to those measures which are formulated to help in the recovery of a firm during the period of contraction.

The various relief measures which can be adopted by the business firm to overcome the evil effects during the contraction phase are:

  • The business firms can reduce the cost of production.
  • To improve the quality of goods and enhance their demand.
  • To reduce stock of inventories
  • Suitable selling method should be devised
  • Profits earned in good times can be utilised for making payment during slack season.
  • Innovation in the product design can.be introduced.
  • The firms should give importance to and plan for its future development
  • The firms can resort to launching of new business lines during slack periods.
  • The management can transfer employees from one department to another where there is need for labour force.
  • Also adopt cyclical pricing policy, so that it can overcome the problems faced during cyclical fluctuations.

Thus, a businessman can overcome the ill-effects during expansion and contraction phases, if he follows and adopt v correct measures.

Question 12.
Explain main characteristic features of monopolistic competition.
Answer:
Monopolistic competition refers to a market situation in which there are either many producers producing goods, which are close substitutes to one another, or the product is differentiated. Monopolistic competition exhibits the characteristics of both competition and monopoly. It is a market situation where a large number of small sellers sell differentiated products that are close, but not perfect substitutes for one another. The important features are individual firm can influence the market price.

  • Existence of a large number of firms – The number of firms producing a product is large. No individual firm can influence the market price.
  • Imperfections in the Market – This may be due to advertisements, differences in transport cost, ignorance about availability of different brands of products etc.
  • Free entry and exit of firms – Each firm produces a very close substitute for existing brands of a product. So there is ample opportunity for a firm to enter the industry.
  • Similar products but not identical – products are similar but not homogeneous. Example – Toothpastes, shoes, etc.
  • Non-price competition – There will be competition for their products and not for the price.
  • Definite preference of the consumers – Consumers will have definite preference for a particular variety of products or ‘brand loyalty’ because of the special features of a product of a particular firm.
  • Element of monopoly and competition – Every firm enjoys some sort of monopoly power over the product it produces. But it is not absolute or complete because each product faces competition from rival sellers selling different brands of the product.

Question 13.
What is discriminating monopoly? Discuss the methods to control monopoly power.
Answer:
Discriminating Monopoly:
Price discrimination implies the act of selling the output of the same product at different prices in different markets or to different buyers. For example, if a cabinet maker charges Rs. 1000 for a cabinet to one buyer andRs. 1200 for a similar cabinet to another, he makes discrimination in price between the two buyers.

For methods to control monopoly:
Monopoly means single seller, there is no competition at all. Under monopoly type of market, the price for the product is fixed by the sole person, that is by the monopolist. In order to make more profit, he may charge an exhorbitant price as there is no control under this type of market. Sometimes he may also not take any interest in improving the quality of product. And so, there is a need for domestic measures by the government to curb such evils of monopoly. The measures taken by the government to control the power of monopoly are as follows:

(1) Encourage Competition:
In order to eliminate monopoly power the government must create and encourage the competition to compete with monopolists, so that it prevents the monopolist from fixing higher prices.

(2) Price fixation by Government:
Sometimes, government fixes standard price of the product price set by the government. This kind of government regulation is to protect the customers from exploitation by monopolist.

(3) Ownership taken over by the government:
In order to protect the interests of the customers, and eliminate the competition among the firms, the government can run the monopoly by itself.

(4) Imposing higher rate of tax:
To discourage the monopolist from charging high price, heavy taxes are levied and collected from them. So to avoid tax the monopolist may sell at lower price.

(5) Through co-operative movement:
By establishing and promoting the government co-opera- five societies, it can eliminate exploitation and can control monopoly power.

(6) Awareness programme:
By organising consumer awareness programme either by government or by consumers themselves through Buyer’s Associations, consumers can be educated regarding market conditions and can encourage competition among the firms.

(7) Legal Action:
The Government can take strict measures to prevent the emergence of monopolies. It can enact laws and enforce them properly to see that no single producer gains exclusive control over the production and marketing of any particular product or service. The government can encourage competition by punishing those producers who try to take advantage of different circumstances and resort to cut-throat competition, thus emerging as monopolies.

(8) Publicity Drive:
People should be made aware of the monopoly practices in the market and try to stop it. When people start demanding substitute products of smaller firms also, the monopoly will fall. Adverse publicity and people’s reaction against monopoly will harm the interests of the monopoly and encourage other players in the field.

BA 2nd Sem History Model Question Papers with Answers

BA 2nd Sem History Model Question Papers with Answers

BA 2nd Sem History Syllabus

Unit I: Introduction
Source material, Coming of Islam, Arab Invasion of Sindh, Founding of the Sultanate, Illtumish, Razia Begum, State Policy, Balban, Theory of Kingship, Turkish Nobility, and the Ulema.

Unit II: Successor Dynasties
The Khilji Revolution, Allauddin Khilji, Theory of Kingship, Military and Fiscal Measures, Market Control, Southern Campaigns, The Tughluqs Muhammad Bin Tuglhuq, Administrative and Economic Reforms, Deccan Policy, Assessment of Muhammad Bin Tughluq

Unit III: Aspects of Mughals Rule
Foundation, Sur Interlude, Akbar, Consolidation of the Empire, Rajput Policy, Religious Policy, Debate, Administrative Structure, Jagirdari and Mansabdari, Aurangzeb, Mughal occupation of Deccan.

Unit IV: Society, Economy, Culture
The emergence of New Social Classes, Women – Debate over Nature of Mughal Economy, Emergence of Composite Culture, Bhakti Movement, Sufi orders, Evolution of Mughal Architecture

Unit V: The Maratha Moment
Shivaji Administration

Maps: Extent of the Empire of

  • Mughal Architectural Centers
  • Trade and commercial centers
  • The extent of Shivaji’s Empire

Places of Historical Importance:
Delhi, Devagiri, Ajmer, Dwarasamudra, Agra, Surat, Panipat, Rameshwararfi, Shivaner, Poona, Ahmednagar, Fatehpur Sikri, Chittor, Sassaram, Amritsar, Khandesh, Mathura, Ranthambore, Bijapur, Jinjee

BA 2nd Sem Economics Model Question Papers with Answers

BA 2nd Sem Economics Model Question Papers with Answers

BA 2nd Sem Economics Syllabus

Unit 1: Nature and Scope of Managerial Economics, Features, and Objectives of the Finn, Profit Theories – Profit Planning, Profit Policies, Break Even Analysis – Meaning, Assumption and Uses, Determination of BEP in terms of Physical, units and monetary term, BEP Chart

Unit 2: Price determination under different markets, Perfect Competition, Monopoly, Price, Price discrimination, dumping, Monopolistic and Oligopoly

Unit 3:
Pricing Policy – Meaning, Objectives, factors and General considerations involved in pricing policy, Methods of pricing – Marginal and full cost pricing, Cost plus, rate of return method, administered price

Unit 4:
Business Cycles: Nature & Phases of a business cycle, Theories of Business Cycle – Haw trey’s Theory, Keynesian Theory

BA 2nd Sem Sociology Model Question Papers with Answers

BA 2nd Sem Sociology Model Question Papers with Answers

BA 2nd Sem Sociology Syllabus

Social Institutions Syllabus

Unit I: Marriage
Hindu Marriage as a sacrament, Muslim Marriage as a contract, Christian Marriage – Practice in Christian Marriage Changing Trends in Marriages, Problems, Issues – Inter-caste, Inter-religious, Marital dispute: Causes, Desertion, Divorce, Live-in Relationship Gay-marriage (12 hours)

Unit II: Family
Meaning, Types – Nuclear Family, Joint Family, (Authority, Decent & Residence) Issues & Challenges of Modern family system – single parent, the elderly & working women. (8 hours)

Unit III: Issues & Challenges of Marginalised Groups
Meaning & Importance of the study of Marginalization: Role of Ideology on Marginalisation; Scheduled Castes and Scheduled Tribes, Views of Jyothi Rao Phule, Pheriyar, Narayana Guru, Dr. B.R. Ambedkar, Mahatma Gandhi; Protective Discrimination: Sahu Maharaj & Nalwadi Krishna Raja Wodeyar Constitutional Provisions (15 hours)

Unit IV: Constitutionally Recognized Minorities
a) Religious Minorities – Muslims, Christians, Buddhists, Jains, Parsis &Anglo-Indians: Problems of Minorities, Constitutional Provision for the Minorities.
b) Linguistic Minorities: Problems & Constitutional Provisions. (15 hours)

Unit V: Education
Education: Meaning & Definition, Types of Education: Formal & Informal Problems & Prospects of Higher Education (10 hours)

BA 2nd Sem Economics Question Paper May 2017 with Answers

BA 2nd Sem Economics Question Paper May 2017 with Answers

Time : 3 Hrs.
Max. Marks: 100

PART – A

(Objective Type)

1. Answer any 10 of the following in not less than 2 to 3 sentences each. Each question carries 2 marks: (2 x 10 = 20)

Question (a)
What is Managerial Economics?
Answer:
Managerial Economics is thus constituted of that part of economic knowledge, logic, theories and analysied tools that are used for rational business decision making.

Question (b)
State any four characteristics of Managerial Economics.
Answer:

  • It is a new discipline and recent origin
  • It is a highly specifized and sperate branch of economies
  • It is micro in nature
  • It is mainly a normative science. It is a goal oriented and prescriptive science.

Question (c)
What is depreciation cost?
Answer:
Depreciation cost is the cost of an asset minus its accumulated depreciation. Another term for this concept is net book value. Depreciation costs original asset price – accumulated depreciation.

Question (d)
What is market period?
Answer:
Market period is a very short period. During this period the supply of a product is fixed or limited to existing stock this supply of a commodity tends to be perfectly inelastic, demand increases prices also increases. ‘

Question (e)
What is Dumping?

Question (f)
What is product differentiation?

Question (g)
State any four characteristics of Oligopoly.
Answer:

  • Small number of sellers
  • Inter dependence of decision making
  • Bafiers to entry
  • In derminate price and output.

Question (h)
What is retention prices?
Answer:
The Retention Pricing scheme was introduced in Nov. 1977 in the wake of the increase in crude oil prices in the early seventies. The selling prices of the fertilizer are fixed by the govt, and so are the retention prices for the producers.

Question (i)
What are the factors to be considered for formulating the price policy?
Answer:

  • Cost of production
  • Demand for the product
  • Consumer psychology
  • Competition

Question (j)
Give the meaning of Business Cycle.

Question (k)
What is full employment level?
Answer:
During the stage of full employment unutilized capacity gradually disappears. Idle resources are fully employed.

Question (l)
State the important book of Keynes and year of publication. Keynes important book General theory employment, Interest and money published in 1936.

PART – B

(ANALYTICAL)

Answer any 4 of the following in 15-20 sentences, each question carries 5 marks. (4 x 5 = 20)

Question 2.
Briefly explain the functional areas of business.
Answer:
Business in the last few decades all over the world has changed dramatically. There is rapid growth, development and expansion. The total volume value, composition and direction of business have changed considerably. Mass production of standardized products has became the order of the day. information technology has brought revolution in the nature of business. Business environment has undergone tremendous change in recent years. Modem business is highly dynamic and hence change has become the rule.

Large scale production has become the order of the day. there is wide spread diversification in business. Business has extended its reach to almost all fields of our life. Today business is highly organised and well managed activity. Business includes industry, trade and commerce. Business is an economic activity and a business unit is an economic unit. Its a producing unit which converts inputs into outputs. It deals with the supply of different goods and services. Business fulfilly the material needs of people.

Profit making is a basic objective of a business unit. The success or failure of a business unit is measured in terms of its capacity to earn profit. In order to expand and develop business, new business, principles tools, concepts, strategies, equality, organizatined methods management technique and strategies have been developed all over the world. Side by side the business word has become increasingly complex, complicated, competitive and challenging in recent years. The govt, intervention in business has created a variety of new problems. Globalization, liberalization, privatization and marketization have added a new dimension to business management.

Question 3.
Write a note on profit maximization policy.
Answer:
Profit making is one of the most traditional basic and major objectives of a firm. Profit making is an essential and acceptable objective of business. Profit maximization was regarded as the most basic objective of a business unit since time immemorial. It was the sole objective of a firm.

In the early stages the owner entrepreneur himself was the manager of individual and partnership business concerns case generally all business policies including price output polices was decided by him with the sole objective of maximize total profits. Self interest and personal gains were the guiding principles in those days to
maximize profits. Later on attention was shifted towards maximization of output and minimization of costs.

The few of variable proportions ISO – Quant’s and laws of returns to scale were advocated to minimize output with minimum resources. With the emergence of a new form of business organization called as joint stock companies also called as corporate business units, one can witness the separation of ownership and management. Now the share holders are the owners while the hired managers manage these business organizations share holder enjoy the profits in the form of dividends and hired managers as employees get their regular wages or salaries.

Profit maximisation goal has been criticized on several grounds. First of all it is ambiguous in nature and it laks preciseness. There are different kinds of profit like gross of net profit, short run or long fun profit, accounting or economic profit, total amount of profit or rate of profit etc. and the theory does hot specify which
profit one has to maximize.

Again there are difficulties in assessing cost and revenues for different time periods an so the amounts of profits. This is because investments are made for both short term and long term purpose and on fixed and variable assets. In order to make profit analysis a much broad – based one and to incorporate new ideas and thinking, economists have developed the goal of wealth or value maximizations as the primary objective of business firms.

Question 4.
Explain types of price discrimination.
Answer:
Prof. A.C. Pigou speaks of three kinds of price discrimination.
(a) Discrimination of the first degree: Under discrimination of the degree, the producer exploits the customers to the maximum possible extent by asking him to pay the maximum price he is prepared to pay rather then go without that commodity. This type of price discrimination is called perfect discrimination.

(b) Discrimination of the second degree: Incase of discrimination of second degree the monopolist charges different prices for different units of the same commodity but not a maximum possible rate but at a lower rate the monopolist will lease a certain amount of consumer’s surplus with the customers.

(c) Discrimination of the third degree: In this case the markets are divided into many sub markets or sub groups. The price charged in each case roughly depends on the ability to pay of different sub groups in the market. This is the most common type of discrimination followed by a monopolist.

Question 5.
Explain the difference between market price and normal price.
Answer:
The price prevailing in the market is called the market pure which changes with the nature of the commodity many times within a day or a week or a month. Marshall explained the market price thus the market value is often influenced by passing events and causes whose action is fitful and short lived than by those which work persistently. Market price is that price which is determined by the forces of demand and supply in the market at a point of time.

Difference between market price and Normal price –
(a) Market price is that price which prevails in a market on a single day or on very few days. On the other hand normal price is that price which tends to prevail in the long run. It is a price which has a tendency to prevail over a period of time.

(b) In the determination of market price, demand plays on a active role which supply is passive. The market price rises or falls with the rise of fall in demand while supply is fixed. On the other hand supply is more active in the determination of normal price it itends to adjust itself fully to any change in demand.

(c) Market price is influenced by temporary events. A sudden rainfall on a hot day may bring down the demand for rice and hence lower its price. Normal price on the other hand is the out came of permanent forces which bring about changes in demand and supply.

(d) Market price can the above or below the average cost of production. Hence firms can earn super normal profits or incur tosses. On the other land normal price is always equal to the long run average.

(e) An commodity whether reproducible or non reproducible have market price but only reproducible commodities have normal price. If a commodity is non reproducible its supply cannot be increased in the long run when its demand increases.

(f) Market price is the real price which prevails in the market at any time. On the other hand normal price is hypothetic price. It is an abstraction, a myth something unreal and imaginary. It is like a mirage.

Question 6.
Explain the role of demand factor involved in pricing.
Answer:
The demand for a product is high or strong in the market. It would command a high price and a lower price is charged if the demand is weak. Again elasticity of demand would exert immense influence on the market price of a product. A policy of price increase would prove more profitable if the demand for a product is inelastic. On the contrary a policy price reduction would be much more beneficial if the demand of the product is elastic in the market. The two different pricing strategies can be better understood with the help of the imaginary example.

Question 7.
Briefly explain the Hawtrey theory of business cycle.

PART – C

Answer any four of the following in about 4 pages each. Each question carries 15 marks. (4 x 15 = 60)

Question 8.
What is break even analysis? Explain its importance. From the following data find out the Break-even point.
Answer:
Selling price = Rs. 100
Cost price = Rs. 80
Fixed price = Rs. 8,000
Selling price = Rs. 100
Cost price = Rs. 80
Fixed price = Rs. 8,000
Break – even point = \(\frac{T F C}{P / V \text { Ratio }}\)
P/V Ratio = \(\frac{S P-V C}{S P}=\frac{100-80}{100}=\frac{20}{100}=\frac{1}{5}\) = 5
BEP = \(\frac{8000}{20 / 100}\)
= \(\frac{8000}{100}\) x 20
= 16000 units
Break – even analysis indicates at what level total cost and total revenue are in equilibrium. It is an analystical technique that is used to identity the level of output and sales volume at which the firm break-even i.e. the revenues are sufficient to cover all costs. BEA establishes the relationship among fixed and variable costs . of production volume of production, value of output sales value and profit.

Importance of break even analysist:
(a) Product planning: It helps the firm in product planning based on its estimated revenue and costs. It can decide about adding a new product line or dropping an existing product live.

(b) Activity planning: The firm can plan about the expansion or reduction of its plant capacity based on its BE analysis.

(c) Profit planning: This analysis helps the firm to plan about the profit level to be earned. This estimate is based on the projections, of revenue and cost for the future.

(d) Safety margin: It can be used in defermining the safety margin relation to decline in sales without incurring losser.

(e) Target capacity: It helps the firm in determining its target sales quality in order to benefit from its minimum average variable cost of production.

(f) Price and cost changes: Though this analysis assumes price and costs as constant, yet it can be used in analysis the effect of changes in prices and costs on the profits of a firm.

(g) Price decision: The firm can take decision about the selling price to be fixed based on its expected revenue and costs in order to earn profits.

(h) Promotion decision: It can decide about the best promotion techniques for the product with in the estimated break-even point so as to increase its sales volume.

(i) Distribution decision: Similarly it can take decision about the best possible distribution system which increases its sales. i.e. To have several distributions or a single distribute in a city of reason.

(j) Dividend decision : It is on the basis of the BE point that the form can decide about the payment of dividend to its share holders. It is only when the firm starts earning
profits – beyond the BE point that it divides about the quantum of dividend to be paid to its state holders.

Question 9.
Examine the dynamic and innovation theories of profit.

Question 10.
Discuss the role of time element in price determination.

Question 11.
What is monopolistic competition? Explain price and output determination under monopolistic competition.
Answer:
Monopolistic competition refer to a market situation when there are may firms selling a differentiated product. There is competition which is keen though not perfect among many firms making very similar products. According to Salvafore “Monopolistic competition refers to the market organisation in which there are many firms selling closely related but not ideated commodities.

Price output determination of a firm under Monopolistic Competition:
Short-Run equilibrium:
Assumptions:

  • The number of sellers is large and they act independently of each other.
  • The product each seller is discriminated from the other products.
  • The firm has a determinate demand came which is elastic.
  • The factor – services are in perfectly elastic supply for the production of the product in question.
  • The short run cost curves of each firm differ from each other.
  • No-new firm enter the industry.

Explanation:
BA 2nd Sem Economics Model Question Paper May 2017 IMG 1
Given these assumptions each firm fixes such price and output which maximises its profits. The equilibrium price and output is determined at a point where the short run marginal cost curve cuts the marginal revenue curve from below.

In fig. the short-run MC curve cuts the MR curve at E this equilibrium point establishes the price QA and output OQ. Asa result the firm earns supernormal profits represented by the shaded area PABC. In fig. 2 indicates the same equilibrium point of price and output. But in this case the firm just covers the short-run average unit cost as represented by the tangency of demand carve D and the short run average unit cost curve SAC at A. It earns normal profits.

Fig 3. Shows a situation where the firm is not able to cover in short-run average unit cost and therefore incur losses. Price set by the equality of SMC and MR curves is QA which covers only the average variable cost. The tangency of the demand curve D and the average variable cost curve at A makes its shut down point. It the firm lower the price below QA, it will have to stop further production. However at this price the form will incur losses equal to the area CBAP during the short run in the hope of lowering its Cost in the long run.

It is not essential that during the short run all firms. Charge identical prices and produce the same quality as we have shown above. Since its product has close substitute its price will ‘have to approximate to the prices of the other firms producing a similar product.

Long – Run equilibrium:
In the long run there is entry and exit of firms in a monopolistic Competitive industry as under pure competition the and just next process will ultimately lead to the existence of only normal profits.
BA 2nd Sem Economics Model Question Paper May 2017 IMG 2
In the figure all firms are in long – run equilibrium at point E where LMC = MR and LMC cuts MR. from before and the LAC curve is tangent to the D/’AR curve at point A. Since point QA = LAC at point A each firm is earning normal profits and no firm has the tendency to enter or leave the Industry.

Question 12.
Explain the different pricing methods.

Question 13.
Explain the features and phases of a business cycle.

BA 2nd Sem Political Science Model Question Papers with Answers

BA 2nd Sem Political Science Model Question Papers with Answers

BA 2nd Sem Political Science Syllabus

Understanding Political Theory Syllabus

1. Political Theory: Nature and Scope; Traditions of Political Theory – Liberal, Marxist, Conservative; Approaches to Political Theory – Normative, Historical and Empirical

2. Democracy: Meaning and Kinds; Theories of Democracy – Classical, Pluralist, Marxist, Elitist; Challenges to Democracy in the Contemporary World.

3. Rights and Duties: Meaning and Kinds – Civil, Political, social, Economic and Cultural; Human Rights with special reference to Rights of Children, Women, Minorities and Disadvantaged Sections; Duties towards the State.

4. Justice and Equality: Justice; Meaning, Kinds Social, Economic, Political and Legal; Rawls and Nozick’s concept of Justice; Equality: Meaning, Kinds, and Importance.

5. Imperialism and Neo-Colonialism: Meaning and Types, Neo-Colonialism and its Feature, Dependency Theory, Modernism and Post Modernism.

BA 2nd Sem Economics Question Paper May 2016 with Answers

BA 2nd Sem Economics Question Paper May 2016 with Answers

Time : 3 Hrs.
Max. Marks : 100

PART – A

(Objective Type)

1. Answer any 10 of the following in not less than 2 to 3 sentences each. Each question carries two marks. (2 x 10 = 20)

Question (a)
Define Managerial Economics.
Answer:
According to Prof. Spencer and Seigelman Managerial Economics the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning.

Question (b)
What is profit planning?

Question (c)
What is‘Break-Even Point’?

Question (d)
Give the meaning of market?
Answer:
Market in Economics means, a meeting place of buyers and sellers directly or indirectly.

Question (e)
What is Monopoly Market?

Question (f)
Mention the degrees of price discrimination.

Question (g)
What is “selling cost”?

Question (h)
What is price policy?
Answer:
The policy of setting the prices of products and services by the management, taking into account internal and external factors is known as pricing policy.

Question (i)
What is Dual Prices?
Answer:
Dual Prices refers to the Practice of selling prices at different levels depending on the currency used to make the purchase.

Question (j)
What is business cycle?

Question (k)
What is monetary policy?
Answer:
Monetary policy refers to the. policy of the monetary authority of a country with regard to monetary matters.

Question (l)
Mention the name of the book written by J.M. Keynes. The general theory of Employment, Interest and money.
Answer:

PART – B

(Analytical)

Answer any 4 of the following in 15-20 sentences each. Each question carries 5 marks. (4 x 5 = 20)

Question 2.
Explain the features of Managerial Economics.
Answer:

  • To integrate economic theory with business practice.
  • To apply economic concepts and principles to solve practical business problems in real life.
  • To avoid abstract discussions to get result.
  • To employ the most modern instrument and tools to find solutions to business problems.
  • To make optimum use of scarce resources of a firm to maximize profits.
  • To help in achieving other objectives of a firm like attaining industry leadership, expansion of market share etc.
  • To help in making overall development of a firm.

Question 3.
Write a short-note on Dynamic Theory of profit.

Question 4.
What is Monopoly? Explain the characteristic features of Monopoly market.

Question 5.
Explain the objectives of pricing policy.

Question 6.
What is Administered Prices? Explain the different types of Administered Prices.
Answer:
Administered prices are opposite to free market prices. They have nothing to do with the free play of market forces of demand and supply. On the other hard, these prices directly fixed by the govt. In these days of govt intervention and control, prices of certain commodities and services are determined by govt to confer benefits to the needy people. In India administered prices are described as these prices which are arbitrarily fixed by the govt. They are the results of govt, control and intervention in the market.

Types:
Administered prices are fixed by the govt, on a few carefully selected inputs like steel, coal, aluminum, fertilizers, petroleum, cooking and commercial gas etc., These items are the raw material for other industries and as such there is a great need for establishing and stabilizing the total output and their prices.

The public distribution system is a also subject to administered prices. In this case prices of essential items like rice, wheat, jowar, sugar, kerosene and palm oil etc. are directly fixed by the govt. Administrable prices are normally set on the basis of cost plus a stipulated margin of profit. They represent a pool price where the individual producing units are granted retention prices.

Question 7.
Explain the Keynesian theory of Business Cycles.

PART – C

Answer any four of the following in about 4 pages each. Each question carries 15 marks. (4 x 15 = 60)

Question 8.
Discuss analytically the scope and importance of managerial Economics.

Question 9.
What is perfect competitive market? Explain the features and how the equilibrium price and output determined in Bus market.

Question 10.
What is price discrimination? Explain the different types of price discrimination.
Answer:
Price discrimination refers to the practice of a seller selling the same product at different prices to different buyers.

Types of price discrimination:
There are various forms of price discrimination.
They are –

  • Personal discrimination
  • Local discrimination
  • Discrimination according to use of trade
  • Product
  • Age
  • Sex

(a) Personal: Price discrimination becomes personal when a seller charges different price for different customers. This depends upon the ability of the buyers to pay.

(b) Local discrimination: Then there is local discrimination where different prices charged from different localities or places. Prices in fashionable stops are higher than ordinary shops.

(c) Discrimination According to the user trade: Different prices are charged for a commodity according to be use to which the commodity is put. For ex. Electricity is sold to agricultural at lower prices and to household cities at high prices.

(d) Product: Monopolist introduces product differentiation by means special names, labels, packages etc., giving him a chance to charge different prices for the differentiated products.

(e) Age: Under this type of discriminates the buyers are usually grouped into children and adults. In the case of transport services it is very common to see that children below 12 years of age are charged at half rates.

(f) Sex: Some produces may discriminate between male and female buyers. They may charge low prices to females when company to males.

(g) Size: On the basis of the quality purchased or size of the product different prices may be charge. Usually higher prices are charged for smaller size product than the larger sizes.

(h) Quality variation discrimination .”Different prices may be charged based on the quality differences in the product.

Question 11.
Discuss the method of price determination.

Question 12.
Explain the different phases of a business cycle.

Question 13.
What is Business Cycle? Explain the measures adopted to control the Busienss Cycle.

BA 2nd Sem Economics Question Paper May 2015 with Answers

BA 2nd Sem Economics Question Paper May 2015 with Answers

Time: 3 Hours.
Max. Marks : 100

PART – A

(Objective Type)

1. Answer any 10 of the following in not less than 2 to 3 sentences each. Each question carries 2 marks. (2 x 10 = 20)

Question (a)
What is the meaning of managerial economics?
Answer:
Managerial economics is a science applied to decision making. It bridges the gap between abstract theory and managerial practice. It concentrates more on the method of reasons.

Question (b)
Mention the difference between a firm and an industry.

Question (c)
What is Break-even point of sales?

Question (d)
What are the different types of market?
Answer:
Markets are classified into –

  • Local market
  • National market
  • International market

Question (e)
What is perfect competition?

Question (f)
Write any two features of monopolistic competition.
Answer:

  • Existence of a large number of firms.
  • Imperfections in the market.

Question (g)
What is market period?
Answer:
Market period is a very short period. During this period, the supply of a product is fixed, price increase with increase in the demand.

Question (h)
What is Dumping?

Question (i)
Expand FDI and SEZ.
Answer:

  • FDI – Foreign Direct Investment
  • SEZ – Special Economic Zone.

Question (j)
What is oligopoly?
Answer:
Oligopoly refers to that market situation in which there are a few sellers of identical product or differentiated products.

Question (k)
What is price discrimination?

Question (l)
Name the measures adopted to control business cycles.

PART – B

(Analytical)

Answer any 4 of the following in 15-20 sentences each. Each question carries 5 marks. (4 x 5 = 20)

Question 2.
Briefly discuss the innovation theory of profit.

Question 3.
Write a note on profit planning.

Question 4.
Explain the characteristic features of monopoly.

Question 5.
Explain the objectives of pricing policy.

Question 6.
Write a note on administered prices.

Question 7.
Briefly explain the importance of time element in price determination.

PART – C

Answer any 4 of the following in about 4 pages each. Each question carries 15 marks. (4 x 5 = 60)

Question 8.
What is firm? Explain the objectives of a firm.
Answer:
A firm is an organization which produce and supplier goods that are demanded by the people.
Objectives of the firm:
The various objectives of a modem business firm are –

  • Organizational goals
  • Economic goals
  • Social goals
  • Strategic goals

(a) Organizational goals:
(i) Long run survival: Each business firm is interested to survive in the market for a longer period. Therefore it is the main aim of any business organization.

(ii) Growth maximization: Every firm aspires for a higher rate of growth, steady balanced and stable growth is an indication of progress of a firm.

(iii) Building a business empire: Big business enterprise aim at establishing their business empire in the market. To materialize this objective they try to control and capture the market.

(iv) Market leadership: Each firm successfully makes an attempt to become the leader of the market. Hence effects are made to maintain its name, fame, reputation good will in V order to dominate the entire market.

(v) Market share expansion: Market share refer to the share of a firm’s sales of a particular product in the total sales made by all firms in the market. The economic strength and success of a firm depends on its own market share.

(vi) Satisfactory level goal: A firm is a collocation of different group life shareholders, managers, workers customers and & so on conected with various activities of the firm. All these groups seeks to satisfy all then in a balanced manner.

(vii) Power : A big business unit has vast resources at its command, will such resources, it can really enjoy economic, social and political power.

(viii) Production goal: The form has to avoid under production and over production and maintain a balance between demand and supply.

(ix) Joy of creation: When customers are happy with improved products, the business units enjoy the joy of creating better products.

(x) Facing challenges: Modem business has become highly competitive. It has to take innumerable challenges.

(b) Economic objectives:
(i) Profit making: It is primary measures of success and an acid test of economic ability and performance of an individual firm

(ii) Sales maximization: Prof. Banmol has suggested maximization of sales revenue as an alternative objective of profit maximization. Sales maximization implies obtaining maximum amount revenue has the increased sales of.the company.

(iii) Cost minimization: Each firm makes a successful attempt to maximise its output and minimize production cost.

(iv) Financial soundness: Financial soundness is the basic requirement on which progress and success of any business firm rests in the long run. Finns should be able to mobilize adequate finds to carry on their regular and normal activities without any difficulty.

(v) Economic self sufficient: Each firm makes an attempt to became economically self sufficient. It should have sufficient capain to generate its own intered resources and as for as possible dispense with external assistance which may prove costly.

(vi) Creation of customers: Customers are created only when a firm supplies what they want. Creation and satisfaction of customers is an important objective of business.

(vii) Innovation : Modem economy to highly dynamic and competitive in nature. Hence innovation became in evitable.

(viii) Entry privation and risk avoidance: The motive behind entry prevention may be profit maximization in the long ran securing a constant market share, avoidance of risk caused by the unpredictabic behavibur of the new entrants etc.

(ix) Development and diversification : A firm has to under take various programs for its expansion, development and growth in a planned manner. Apart farm it a firm has to go for diversification programme.

(x) A fair dividend to share holders : It is the primary responsibility of the management to earn handsome profits and declare a fair amount of dividends to the share holders and make them happy about the performance of the company.

(c) Social objective:
(i) Social responsibility of Business: Business units must contribute to the promotion of social and community welfare and the health growth of social because a healthy business cannot exist in a six society.

(ii) Good corporate citizenship: A firm has a moral responsibility follow all kinds of laws of the land in to and spirit Participation in the community development programs organizing the eye operation and blood donation camps. Etc.

(iii) Supply of quality goods : One of the foremost social objective of a firm is to provide regularly the goods and services of proper of quality and quantity to consumer at reasonable prices.

(iv) Avoidance of profiteering and anti- social practices : It is the social obligation of a business unit not to indulge in hoarding, black marketing and adulteration quality deterioration, creation artificial scarcity smuggling and other such anti social activities.

(v) Providing employment: A firm by expanding and diversity in its activities has to create additional jobs and absorb the unemployed person.

(vi) Participation in HRD: HRD has become an important and highly specialesed topic and subject in recent years. Investment on human beings has assumed greater significance all over the world.

(d) Human goals:
(i) Fair deal to employees : A firm has to pay fair wages, salaries and bonus.

(ii) Job satisfaction: It is the obligation of a firm to make the jobs interesting and challenging so that the workers get job satisfaction while perfoming their work.

(iii) Workers participation: Workers will put for the their best efforts only when they are given an opportunity to participate in making decisions which affect them.

(e) National goals :
(i) Ensure social justice : A firm can create ample opportunities for talent of persons. It can provide a fair opportunity for all groups irrespective of the class, caste, creed, community, religion, region language etc.

(ii) Fulfilling national priorties: The business plan preparing by a firm should be in accordance with the national objectives.

(iii) Export promotion: A firm as a part of its business strategy – can engage itself in the production of exportable items on a massive scale and export the same to other nations.

Question 9.
Explain the break-even point analysis with the help of a diagram.

Question 10.
What is price discrimination? Discuss the different types of price discrimination.
Answer:
Discrimination refers to the practice of a seller to charge different prices for different customers for the same commodity. Produced under a single control without corresponding difference in cost. Prf. A.C, Pigan speaks of three kinds of price discrimination.

(a) Discrimination of the first degree:
Under price discrimination of the first degree the producer exploits the consumers to the maximum possible extent by asking him to pay the maximum he is prepared to pay rather than go without the commodity. In this case the monopolist will not allow any consumers surplus to the consumer.

(b) Discrimination of the second degree:
Increase of discrimination of the secured degree the monopolist changes different prices for different units of the same commodity, but not at maximum possible rate but at a lower rate. The monopolist will leave a certain amount of consumers surplus with the consumers.

(c) Discrimination of the third degree:
In case of discrimination of the third degree the markets are divided into many sub market or sub groups the price charged in each case roughly depends on the ability to pay of different sub groups in the market. This is the most common type of discrimination followed by a monopolist

Question 11.
Explain the price and output determination under monopolistic competition.
Answer:
Price output determination in short run:
Short period is a period of time where in time is inadequant to make all sorts of changes and adjustment in the productive process.‘The demand and cost conditions may vary substantially forcing the firm either to change a higher or lower price leading to super normal profits or losses. However each firm fixes such price and produce output which maximizing its profit. The equilibrium price and output is determined at the point where short run marginal cost equals marginal revenue thus are condition is required for short run equilibrium MC = MR.
BA 2nd Sem Economics Model Question Paper May 2015 IMG 1
In the diagram price (AR) B greater than AC. PQ is the price per unit.
Total revenue is ORPQ super normal profit – TR – TC.
Hence NRPM is the total profit.

Loss : In this case AC is greater than AR. MQ is revemte per unit total loss = TC – TR = NRPM.
This in the short run.
There will be place for super normal profit or losses.
BA 2nd Sem Economics Model Question Paper May 2015 IMG 2

Question 12.
Discuss the methods of price determination.

Question 13.
Explain he different phases of a business cycle with the help of diagram.

BA 2nd Sem Economics Model Question Paper 3 with Answers

BA 2nd Sem Economics Model Question Paper 3 with Answers

Time : 3 Hrs.
Max. Marks : 100

PART – A

1. Answer any ten of the following sub questions. Each question carries two marks: (2 x 10 = 20)

Question (a)
Name any two objectives of firm.
Answer:
Profit Maximization and Sales maximization are the main two objectives of firm.

Question (b)
What is Break-Even chart?
Answer:
The break even chart consist of concepts like total fixed cost, total variable cost and the total variable cost and the total cost and total revenue.

Question (c)
Mention the types of price discrimination.
Answer:

  • Discrimination of the first degree
  • Discrimination of the second degree
  • Discrimination of die third degree.

Question (d)
What is Marginal Cost Pricing?
Answer:
Under Marginal Cost Pricing fixed cost are ignored and prices are determine on the basic of marginal cost, the firm uses only those costs that are directly attributable to the output of a spectic product.

Question (e)
What do you mean y Dumping?
Answer:
The monopolist may discriminate between home and foreign buyers y selling at a lower price in the foreign market then in the domestic market. This type of discrimination is known as dumpty.

Question (f)
What is pure competition?
Answer:
Pure competition is the kidn of market without any moopoly element. A market having the following features is called pure competitive market. Viz., large number of buyers and sellers, homogeneous products, free entry and exit of firms, lack of checks, lack of selling costs, lack of transportation cost, etc.

Question (g)
State any 2 characteristics of business cycle.
Answer:

  • A business cycle is a wave like movement.
  • It operates periodically at fairly regular intervals of 10 to 12.

Question (h)
Name the types of business cycle.
Answer:

  • Major and Minor cycles
  • Buildings cycles
  • Kondratieff cycles

Question (i)
Name the stages of business cycle.
Answer:

  • Depression
  • Recovery
  • Prosperity
  • Boom
  • recession

Question (j)
What is major business cycle? or Juglar cycles?
Answer:
Major cycles constitute the intervals between successive major downturns of business activity or between major recessions

Question (k)
Sate any 2 measures to control business cycle?
Answer:

  • Monetary policy
  • Fiscal policy

Question (l)
What is depression?
Answer:
Depression is characterized by a sharp reduction of production. Mass unemployment, low employment, falling prices, falling profits, low wages, contraction of credit a high rate of business failure and an atmosphere of all round pessimism and despair.

PART – B

Answer any four of the following: (4 x 5 = 20)

Question 2.
Explain the various causes for emergence of monopoly.
Answer:
A monopoly may emerge due to any of the following reasons –
(a) Raw Materials : A producer may possess raw materials which are beyond the reach of other producers. The means to obtain raw material even if it is highly priced may be possessed by the producer.

(b) Specialised skill: If a producer has an expertise in produring a commodity, then he attains a monopoly position.

(c) Secret methods of production : Using very good production techniques gives the producer an edge over others.

(d) Investment: In certain areas of production where huge amounts of money are required, not all producers can muster the requisite money, so any producer who can invest a lot gains monopoly power.

(e) Patent Rights: If a producer patents hi s product, then no one can make the same kind of product.

(f) Public utilities: Services like water supply and electricity are monopolies everywhere since the Government gives them exclusive rights to run as monopolies.

(g) Impracticable economies of scale : In some industries, economies of scale are not workable and so they cannot compete with the bigger producers.

Question 3.
Bring out the Internal causes of business cycles.
Answer:
Business cycles have become a regular feature of a capitalist system. It is the fluctuations in the overall level of economic activities. The following are some of the important internal causes of business cycles –
(a) Innovations: Inventions and innovations carried out in industrial and commercial organizations cause cyclical fluctuations due to increase in production and better quality of products.

(b) Under – consumption or Over – consumption : If consumers desire to purchase more goods and services, it will lead to boom and if demand becomes less, it will lead to recession.

(c) Changes in money supply : This also leads to cyclical oscillations or alternate phase of boom and depression.

(d) Excess investment: If savings are mobilized and loans are given by banks and other financial institutions, credit ereation will be more leading to more investment, greater production, greater employment etc.

(e) Interest rate: If interest rates are high, investment will be less and there will be a decline in general economic activity.

(f) Mal-adjustment: Any mal adjustment in one part of the economy spreads out in the entire economy since the diflferent parts of the economy are inter-related and inter connected.

(g) Psychological factors: Variations in business confidence, over-optimism and over – pessimism etc. cause cyclical fluctuations.

(h) Non- monetary factors : Factors such as wars, earth-quakes, strikes, crop failures etc., may lead to temporary fluctuations.

Question 4.
What are the objectives of price discrimination?
Answer:

  • To earn maximum profits.
  • To charge different prices for the product to different consumers.
  • To sell maximum amount of goods and services.
  • To expand their share in the market.
  • To provide concessions to female buyers in specific areas.
  • To provide special provisions and concessions to the children and old age group in specific areas.
  • To charge different prices based on the special series or comforts provided ex. Railway.
  • To charge different prices based on the use to which the product is put into. Example – Electricity.
  • To charge different prices according to the ability of the buyers to pay.
  • To produce more output.
  • To reduce income inequalities of the people.

Question 5.
What are Administered Prices? Why is it needed?
Answer:
Administered prices are the prices of commodities fixed by the government to prevent price escalation, black-marketing and shortages in supply. The objective of administering the price of some essential commodities is to prevent any sudden rise in their prices and to ensure reasonable prices to the users.

Need for administrative pricing:

  • To correct market imperfections.
  • To control rise in prices of essential consumption commodities and raw materials wherever they are scarce.
  • To provide stable income to the farmers through stable prices.
  • To avoid exploitation of consumers by the monopolists.
  • To provide essential commodities at low prices to the poor people.

Question 6.
Draw a BEP chart and Explain it.
Answer:
Break even charts are being used in recent years by the managerial economists, company executives and govt, agencies in order to find out the break even point. In the break even charts the concepts like total fixed costs, total variable cost, and the what cost and total revenue are shown separately. The break even chart shows the extent of profits or loss to the firm at different levels of activits.

Diagrammatic represent:
BA 2nd Sem Economics Model Question Paper 3 with Answers 1
In this diagram output is shown on the horizontal axis and costs and revenue on vertical axis. Total revenue (TR) curve is shown as linear as it is assume that the price is constant, irrespective of the output. The TC curve is a straight live originating from the vertical axis because total cost comprises fixed cost plus variable cost which rise linearly. In the figure B is the break even point at OQ level of output.

Question 7.
Explain the uses of Break even analysis.
Answer:
(i) Product planning: It helps the firm in product planning based on its estimated revenue and costs.

(ii) Actual planning: The firm can plan about the expansion or reduction of its plant capacity based on its BE analysis.

(iii) Profit planning: Th is analysis helps the firm to plan about the profit level to be earned. This estimate is based on the projection of revenue and cost for the future.

(iv) Safety margin: It can be used in determining the safety margin relating to dadine in sales without incurring losses.

(v) Target capacity: It helps the firm in determining in target sales quality in order to benefit form it mi run-turn average variable cost of production.

(vi) Price and cost charges: Though this analysis assumes prices and cash as constant yet if can be used in analysis the effect of changes in prices and costs on the profits of a firm.

(vii) Price decision: The firm can take decision about the selling price to be fixed based on its expected revenue and cash in order to earn profits.

(viii) Promotion decision: It can decide about the best promotion technique for the product within the estimated break even point so as to increase its sales volume.

(ix) Distribution Decision: Similarly it can take decision about the best possible distribution system which increase its sales.

(x) Dividend decision: It is on the basis of the BE point that the firm can decide about the payment of dividend to its share holders.

PART – C

Answer any four of the following. (15 x 4 = 60)

Question 8.
Explain any two theories of profit.
Answer:
(a) The Dynamic theory:
Prof. J.B. Clark propounded his dynamic theory of profit in 1900. To him profit is the difference between the price and cost of production of the commodity. But profit is the result of dynamic change. In a dynamic state “five generic change are going on everyone of which reacts on the structure of society. They are –

  • Population is increasing
  • Capital is increasing
  • Methods of production are improving
  • The forms of industrial establishment are changing the less efficient steps etc. are passing from the field and the most efficient are surviving.
  • The wants of consumers are multiplying.

In a static state, competition tends to eliminate these five kinds of changes so that each factor receives what it produces. The selling price and the cost of production are equal and there is no profit. The typical dynamic change is an invention. An invention enables the entrepreneur to produce more and reduce costs. In actually however entrepreneur earn profit because saiets being dynamic changes constantly occur and adjustments always take place.

The innovation theory:
Prof. Schumpeter attributes profits to dynamic changes re-suiting from an innovation. To short with the takes a capitalist closed economy which is in stationary equilibrium. This equilibrium is characterized by what Schumpeter calls a circular.flow which continues to repeat itself forever. In such a static state, there is perfectly competitive equilibrium. The price of each product just equals its cost of production and there is no profit.

Only exogenous factors like weather Conditions can cause change in the circular flow but that too , temporarily and economy would again reach a circular flow position. The role of the entrepreneur is quite distinct from that of the capitalist. The former simply innovates and does not undertake any risk. Risk taking is the function of the capitalist or the banks that pride credit. Even if the entrepreneur is the capitalist himself, he performs two functions which are quail different. Profit therefore accrues to the entrepreneur as a reward for innovating and not as a reward for risk taking.

According to Schumpeter an innovation may consist of –

  • The introduction of a new product.
  • The introduction of a new method of production.
  • The opening up of a new market.
  • The discovery of a new source of raw material and
  • The recognition of an industry.

Question 9.
What is pricing? Explain the consideration involved in formulating the pricing policy.
Answer:
The following consideration involve in formulating the pricing policy –
(a) Competitive situation:
Pricing policy is to be set in the light of competitive situations in the market. In perfect competition, the producers have no control over the price. Pricing policy has special significance only under important competition.

(b) Goal of profit and sales:
The businessmen use the pricing device for the purpose of maximizing profits. They should also stimulate profit able . combination sales.

(c) Long range welfare of the firm:
Generally business men are reluctant to charge a high price for the product because this might result. In real life firms want to prevent the entry of rivals policy should take care of the long run welfare of the company.

(d) Flexibility pricing policy should be flexible enough to meet changes in economic conditions of various customer industries. If a firm is selling its product in a highly competitive market, it will be have little scope for pricing discretion.

(e) Govt, policy:
The govt, may prevent of the firm in forming combination to set high price often the govt, prefers to control the price of essential commodities with a view to prevent the exploitation of the consumes.

(f) Over all goals of business:
Pricing is not an end itself but a means to an end. The fundamental guides to pricing. Therefore are of the broadest of then is survived on a more spastic level. Objectives relats to rate of growth.

(g) Price sensitivity:
The various factors which may generate insensitivity to price changes are variability’s in consumer behavior, variation in the effectiveness of marketing effort, nature of the product, importance of services after sales etc.

Question 10.
Explain the How trey’s theory of Business Cycle.
Answer:
According to Prof. R.G. H0wtrey, “ The trade cycle is a purely monetary phenomenon”. It is changes in the flow of monetary demand on the part of businessmen that lead to prosperity and depression in the economy. He opines that non – monetary factors like strikes, floods, earthquake, droughtr, wars, etc. may at best cause a partial depression, but not a general depression. In actually, cyclical fluctuations are caused by expansion and contraction of bank credit which, in turn, lead to variations in the flow of monetary demand on the part of produces and traders.

Bank credit is the principle means of payment in the present times. Credit is expanded or reduced by the banking system by lowering or raising the rate of interest by purchasing or selling securities to merchants. This increases or decrease the flow of money in the economy and thus brings about prosperity Or depression.

The expanded phase of the trade cycle starts when banks in-crease credit facilities. They are provided by the reducing the lending rate of interest and by purchasing securities. These en-courage borrowings on the part merchants and producers. This is because they are very sensitive to changes in the rate of interest. So when credit become cheap, they borrow from banks in order to increase their stocks or inventories.

For this, they place larger orders with producer who in turn, employs more factors of production to meet the increasing demand. Consequently, money incomes of the owners of factors of production increase thereby increasing expenditure of goods. The merchants find their stocks . being exhausted. They place more order with producers. This leads further increase in productive activity, in income, outsay, demand and a further deprecation of stocks of merchants.

According to Howtrey increased activity means increased demand and increased demand means increased activity. A vicious circle is set up, a cumulative expansion of productive activity. As the cumulative process of expiration continues, produces quote higher and higher prices. Higher prime induce traders to borrow more in order to hold still larger stocks goods so as to earth more profits.

According to How trey, prosperity cannot continue limitlessly. It comes to an end when banks stop credit expansion. Banks refuse to lead. Further because their cash finds are depleted and the money in circulation is absorbed in the form of cash holdings by consumers. Another factor is the export of gold to other countries when imports exceed exports as a result of high prices of domestic goods.

In order to repay the bank loans business men start selling their stocks. This sets the proces of falling prices. They also cancel orders with producers. The latter curtail their productive activities due to fall in demand for factors of production. There is unemployment income fall. Falling demand, prices and incomes are the signals for depression. Unable to repay bank loans, some forms go in to liquidation thus forcing banks to contract credit further. Thus forcing banks to contract credit further. Thus entire process becomes cumulative and the economy is forced in to depression. According to haw trey the process of recovers is very slow and halting.

Question 11.
Explain the nature and scope of managerial economics nature.
Answer:
Managerial economics:
Managerial economics is a science applied to decision making. It bridges the gap between abstract theory and managerial practice. It concentrates more on the method of reasoning.

(a) Decision making:
Managerial economics is supposed to enrich the conceptual. and technical skill of a manager. It is concerned with economic behaviour of the firm. It concentrates on the decision process decision model and decision variables at the firm level. It is the applications of economic analysis to evaluate business decisions.

(b) Scope of managerial economics:
The scope of managerial economics refers to its area of study. Managerial economics has its roots in economic theory. The empirical nature of managerial economics make its scope wider. Managerial economics refers to those aspects of economic theory and application which are directly relevant to the practice of management and the decision making pro¬cess within the enterprise.

(c) Positive versas normative economics:
Most of the managerial economists are of the opinion That managerial economics is fundamentally normative and prescriptive in nature. It is concerned with what decisions ought to be made. The application of managerial economics is inseparable from considerations of values or norms for it is always concerned with the achievement of objectives or the optimization of goals. In managerial economics we are interested in what should happen rather than what does happen. Instead of explaining what a firm is doing, we explain what is should do to make the decision effective.

(d) Positive economics:
A positive science is concerned with what is Robbins regards economics as a pure science of what is which is not concerned with moral or eithical questions. Economics is neutral between ends. The economist has to right to pass judgement on the wisdom of folly of end itself. He is simply concerned with the problem of resources in relation to the ends desired.

(e) Normative economics:
Normative economics is concerned with describing what, should be the things. It is therefore also called prescriptive economics. What price for a product should be fixed, what wage should be paid how income should be distributed and so on full within the purview of normative economics. It should be noted that normative economics involves value judgement.

It refers mostly to what ought to be and cannot be neutral about the ends. The application of managerial economics is inseparable from considerations of value or norms for it is always concerned with the achievement of objectives or the optimization of goals.

Question 12.
Discuss the marginal cost pricing with its merits and de-merits.
Answer:
Marginal cost pricing is one of the promising methods of prices in recent year by many firms. Under this method of policy prices of goods are determined on the basis of marginal cost. While calculation the price of a product, fixed cost will not be taken into account. It has no relation with historical costs but with only expected future costs. It does not require any detailed intimation on supply and demand curves.

Under this method of pricing, fixed cost are ignored and prices are determined on the basis of marginal cost or variable cost. MC represents the change in the total cost due to a unit change in output. Hence price = MC. The firm uses only these costs that are directly attributable to future and as such it should deal solely with the anticipated and estimated revenues, expenses and capital outlays. All post expresses which give rise to fixed cost, historical and sunk are ignored in this case.

Marginal cut pricing implies that the price’of the product is based incremented cost of production. But it is to be noted that marginal cost is associated with production of only one more unit of output. Consequently it is based on additional variable cost only.

Merits:
(a) This method of pricing is used by a firm when it wants to. introduce a new product into the new market. Faces shift competition in the market and has unused or under utilized production capitation etc.

(b) Prices based on marginal cost can be controlled easily in the short run.

(c) It is useful for keeping labour employed during the slack seasons and to prevent shutdowns.

(d) It is an an analatical tool for pricing decisions as it establishes a logical relationship between cost volume and profit.

(e) It gives a better insight to short run price determination.

(f) It is more useful for pricing over the life cycle of a product which requires short term marginal cost and separable fixed, cost date relevant to each particular stage of the cycle.

(g) When a firm has a number of product, product lines this method is useful.

(h) It is used in pricing of public understanding.

(i) It is used when a new product is introduced in the market.

Demerits:

  • Marginal costing may not have relevance to certain industries where over head cost and establishment charges are very high.
  • Many firms may not know the technique of marginal cost and is usage in pricing.
  • This method of pricing may lead to cut throat competition. Because it one firm reduces its price it may induce other firms to do the same.
  • It does not guarantee that the firms will operate at the break even point.
  • In a period of recession, firms uses this method may lower cost and prices in order to maintain sales.
  • In highly capital intensive induction selling a product on marginal cost basis pases another problem as the difference between the marginal cost price and full cost price will be very high.

Question 13.
State the assumption of Break even analysis and Explain how to determine the break even point?
Answer:
The break even analysis is based on the following set of assumption.

  • The total cost may be classified into fixed and variable cost. it ignores semi variable cost.
  • The cost and revenue functions remain linear.
  • The price of the product is assumed to be constant.
  • The volume of sales and volume of production are equal.
  • The fixed cost remain constant over the voluble under consideration.
  • It assumes constant rate of increase in variable cost.
  • The price of the product is assumed to be constant.
  • It assumes constant technology and no improvement in labour efficiency.
  • The factor price remains unaltered.
  • Charges in input prices are ruled out.
  • In the case of multi product firm the product mix is stable.

The formula for calcualtion the break even points
BA 2nd Sem Economics Model Question Paper 3 with Answers 2
Contribution martin per unit can be found out by deduting the averae variable cost from the selling price – So the formula will be
BEP = \(\frac{\text { Total fixed cost }}{\text { Selling price – AVC }}\)
BEP in terms of sales value.
Multi product firms are not in a position to measure the break even point in terms of any common unit of product. They find it convenient to determine the break even point in terms of total rupees sales. The contribution margin however is ex-pressed as a ratio sales. The formula for calculation the break even point is
BEP = \(\frac{\text { Fixed cost }}{\text { Contribution Ratio }}\)
Contribution Ration (CR) =
BA 2nd Sem Economics Model Question Paper 3 with Answers 4