ECONOMICS

Class 12th
RCC/3/12/18
Time allowed: 3 hours Maximum Marks=1
!e"eral I"s#ru$#io"s:
(i) All questions in both the sections are compulsory.
(ii) Questions Nos. 1-5 and 17-21 are very short-answer questions and carryin 1
mar!. "hey are required to be answered in one sentence each.
(iii) Questions Nos. 6-10 and 22-26 are short-answer questions and carryin 3
mar!s each. Answer to them should not normally e#ceed 60 words each.
(iv) Questions Nos. 11-13 and 27-29 are also short-answer questions and carryin
4 mar!s each. Answer to them should not normally e#ceed 70 words each.
(v) Questions Nos. 14-16 and 30-32 are lon-answer questions and carryin 6
mar!s each. Answer to them should not normally e#ceed 100 words each.
(vi) Answers should be brie$ and to the point and the above word limit be adhered
to as $ar as possible.
%&C"'(N A- )'C*( &C(N()'C%
Q1. %tate central problems o$ an economy. +hy do they arise,
Q2. +hat is production $unction,
Q-. As the price o$ product decreases by ./0 total e#penditure on it has one up by
-.1/. +hat can we say about the elasticity o$ the product,
Q2. +hat is the slope o$ 3emand Curve under per$ect competition,
Q1.3e$ine )arinal *evenue
Q4. +hy is 5roduction 5ossibility Curve concave in oriin,
Q.. A $irms Averae 6i#ed Cost o$ producin 2 units o$ a ood is *s. 7 and iven below
is its "otal Cost %chedule. Calculate its Averae 8ariable Cost and )arinal Cost $or
each o$ the iven level o$ output9
(utput "otal Cost
1 2-
2 2.
- -:
OR
+hat is the relation between Averae Cost and )arinal Cost,
Q;. <ow does increase in income o$ a consumer a$$ect demand $or a commodity,
OR
+hat is law o$ demand, +hat are the $actors a$$ectin demand $or a commodity,
Q7. &#plain with implications $eatures o$ 5er$ect Competition.
OR
&#plain with implications $eatures o$ )onopolistic Competition.
Q1:. 5rove that the elasticity o$ demand at any point on a straiht line demand curve is
iven by ratio o$ lower sement and upper sement o$ the demand curve at that point.
OR
&#press mathematically the relationship between elasticity0 chane in price in
e#penditure on a ood.
OR
&#plain eometric method o$ measurin price elasticity o$ supply.
Q11. At a price o$ *s. 1: per unit0 the supply o$ a product is 1:: units. +hen its price
$alls by 2:/0 its supply is -1: units. Calculate the price elasticity o$ supply. 's its supply
elastic,
OR
"he price elasticity o$ demand $or a ood is (-) 2. ;: units o$ this ood are brouht at a
price o$ *s. 1 per unit. Calculate the price at which 112 units o$ it will be brouht.
Q12 &#plain the relation between marinal revenue and averae revenue when a $irm is
able to sell more quantity o$ output9
(i) at the same price
(ii) only by lowerin the price
(r
&#plain the e$$ect o$ the $ollowin on the supply o$ a commodity9
(a) 6all in the prices o$ $actor inputs
(b) *ise in the prices o$ other commodity
(r
Q. (n the basis o$ the in$ormation iven below0 determine the level o$ output at which
the producer will be in equilibrium. =se the marinal cost- marinal revenue approach.
>ive reasons $or your answer.
(utput Averae revenue "otal cost (*s.)
1 . .
2 . 11
- . 22
2 . 2;
1 . --
4 . 2:
. . 2;
Q1-. &#plain the process o$ price determination under 5er$ect Competion
OR
&#plain the e$$ect o$ technoloical chanes on the supply o$ a commodity. %how the
same on the diaram.
Q12. <ow does a consumer reach equilibrium position, +hen he is buyin only one
commodity, &#plain with the help o$ )arinal =tility %chedule.
OR
&#plain with the help o$ diarams0 the e$$ect o$ the $ollowin chanes on the demand o$ a
commodity9
(i) A rise in the price o$ complimentary ood
(ii) A rise in the income o$ its buyer.
(iii) A rise in the price o$ substitute ood.
Q11."o increase the proportion o$ a ood0 only one input is increased0 while other inputs
are help constant. &#plain its e$$ect on "otal 5hysical 5roduct. >ive reasons.
Q14. "here is a simultaneous ?decrease@ in demand and supply o$ a commodity. +hen
will it result in9
(a) No chane in equilibrium price.
(b) A $all in equilibrium price ?producer@.
=se diaram
OR
'$ 3emand Curve and %upply Curve o$ a commodity both shi$t rihtwards0 the
equilibrium quantity would certainly increase0 but equilibrium price will increase0
decrease or remain unchaned. Comment
(r
+hy is the consumer in equilibrium when he buys only that combination o$ the two
oods that is shown at the point o$ tanency o$ the budet line with an indi$$erence
curve, &#plain.
(r
Q. &#plain the $ollowin9
(a) +hy is an indi$$erence curve conve# to the oriin,
(b) +hy does a hiher indi$$erence curve represent a hiher level o$ satis$action,
%&C"'(N A- )AC*( &C(N()'C%
Q1.. +hat is minimum and ma#imum value o$ multiplier,
Q1;. +hat is meant by C.*.*. ,
Q17. 3e$ine )acro &conomic with e#ample.
(r
3istinuish between 5ositive and normative economic perspectives in economics.
Q2:. 3e$ine *evenue *eceipts with e#ample.
Q21. +hat is 6orein &#chane *ate,
Q22. Calculate the ross value added at $actor cost $rom the $ollowin data9
(i) %ales 4::
(ii) 5urchase o$ raw material 2::
(iii) 'mport o$ raw material 1::
(iv) 'mport o$ machines 2::
(v) Closin stoc! 2:
(vi) (penin stoc! 1:
(vii) 'ndirect ta#es 4:
(viii) %ubsidies 1:
Q2-. +hat are the implications o$ revenue de$icit,
OR
+hat are the implications o$ $iscal de$icit,
Q22. 3i$$erentiate between9
(i) *evenue *eceipts and Capital *eceipts
(ii) *evenue &#penditure and Capital &#penditure
(iii) 3irect "a# and 'ndirect "a#
OR
>ivin reasons0 cateoriBe the $ollowin into revenue e#penditure and capital
e#penditure9
(i) %ubsidies
(ii) >rants iven to %tate >overnments
(iii) *epayment o$ loans and
(iv) Construction o$ school buildin
Q21. <ow $orein e#chane rate is determined,
OR
3i$$erentiate between Aalance o$ "rade and Aalance o$ 5ayment cateoriBin them into
current accounts and capital accounts.
Q24&#plain any three $unctions o$ commercial ban!.
Q2.. Complete the $ollowin table9
C C % A5C )5C )5% )ultiplier
1::
2::
-::
;:
14:
21:
2:
2:
1:
OR
Q. "he savins $unction o$ an economy is % D - 2:: E :.21C. the economy is in
equilibrium when income is equal to 2:::. Calculate9
(a) 'nvestment e#penditure at equilibrium level o$ income.
(b) Autonomous consumption
(c) 'nvestment multiplier
Q2;. +hat are the drawbac!s o$ Aarter %ystem,
OR
+hat are the $unctions o$ money,
Q27. Can an economy be in state o$ under employment equilibrium, &#plain with the
help o$ a diaram.
OR
&#plain the income method o$ estimation o$ national income.
Q-:. +ill the $ollowin be included or not in domestic $actor income o$ 'ndia, >ive
reasons9
(i) Compensation o$ employees paid by American embassy in 'ndia.
(ii) %alary paid to a non-resident teacher teachin in a school in 'ndia.
(iii) 5ro$its earned by an 'ndian company located in <on Fon.
(iv) %alary paid by 'ndian embassy in 6rance to the residents o$ 6rance wor!in in
it.
OR
+hat are the various steps and precautions o$ calculatin national income by e#penditure
method,
Q-1. &#plain the meanin o$ equilibrium level o$ income and output with the help o$
savin and investment curves. '$ planned e#penditure is less than planned output0 what
chanes will ta!e place in the economy,
OR
Q. &#plain the meanin o$ underemployment equilibrium. %tate two policy measures that
the overnment can ta!e to ma!e the economy reach $ull equilibrium.
Q-2. Calculate >ross National 5roduct at mar!et price and 5ersonal 3isposable income
$rom the $ollowin data9
(i) %ubsidies 2:cr
(ii) Net $actor income $rom abroad (-)4:cr
(iii) Consumption o$ $i#ed capital 1:cr
(iv) 5ersonal ta# 11:cr
(v) %avins o$ pvt. Corporations 2:cr
(vi) 3ividend 2:cr
(vii) 'ndirect ta# 1::cr
(viii) Corporation ta# 7:cr
(i#) Net national disposable income 1:::cr
(#) National debt interest -:cr
(#i) Net current trans$er $rom abroad 2:cr
(#ii) Current trans$er $rom ovt. 1:cr
(#iii) )isc. receipt o$ the ovt. administrative dept. -:cr
(#iv) 5vt. 'ncome .::cr
(#v) 5vt. 6inal consumption e#penditure -;:cr
OR
Calculate $rom the $ollowin data (a) 5rivate 'ncome (b) 5ersonal 3isposable 'ncome (c)
Net National 3isposable 'ncome9
(Rs. in crores)
(i) National income -0:::
(ii) %avins o$ private corporate sector -:
(iii) Corporation ta# ;:
(iv) Current trans$ers $rom overnment administrative departments 4:
(v) 'ncome $orm property and entrepreneurship accruin to the overnment
administrative departments 11:
(vi) Current trans$ers $rom the rest o$ the world 1:
(vii) %avins o$ non-departmental overnment enterprises 2:
(viii) Net indirect ta#es 21:
(i#) 3irect ta#es paid by households 1::
(#) Net $actor income $rom abroad (-)1: