12th Class Economics Sample Paper

done Economics - Sample Paper-13 Total Questions - 24    [Download]

• question_answer1)
  Normative economics is based on
  A)
  ethical consideration.      
  done clear
  B)
    facts and figures.
  done clear
  C)
  what should be. 
  done clear
  D)
    Both [a] and [c]
  done clear
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• question_answer2)
                      Raman has increased his output by increasing three more labourers on his existing machines. The output will be governed by which law?  
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• question_answer3)
  Define Marginal Product (MP).                                                 
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• question_answer4)
  What will be the effect on supply if there is reduction in per unit tax?              
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• question_answer5)
  A farmer is producing two commodities wheat and opium. In order to get more profit if he starts producing more opium than wheat, what will be its impact on production possibility curve and what values are being neglected by the farmer?            
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• question_answer6)
  Draw the demand schedule for a commodity whose elasticity of demand is unitary. Do war goods have elastic demand?                                         Or Price elasticity for a commodity X is -1. The demand for X is 100 units at Rs.4. The rises and as a result its demand falls to 75 units. Find out the new price.         
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• question_answer7)
  Explain the implications of the feature product differentiation under monopolistic competition.                                                                 Or Freedom of entry and exit is a peculiar feature of perfect competition. Explain its implication.                                                                   
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• question_answer8)
  Complete the following table :                                                

  Units of Output	Average Variable Cost  (AVC)(Rs.)	Total Cost (TC)(Rs.)	Marginal Cost    (MC)(Rs)	Total Fixed Cost (TFC)(Rs)
  1	20	-	-	-
  2	15	-	-	20
  3	20	-	-	-
  4	31	-	-	-

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• question_answer9)
  Explain the condition of consumer's equilibrium under utility analysis for one commodity.                                                               
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• question_answer10)
  Explain the behaviour of marginal cost. Show that the rising portion of the Margnial Cost Curve (MCC) is the supply curve of a competitive firm.                    
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• question_answer11)
  How is new equilibrium struck when demand curve tends to shift? Explain the chain effects of increase in income of the consumer leading to new equilibrium price and quantity for a normal good.                                                    Or Using supply and demand curves, show how an increase in price of shoes affects the price of a pair of socks and the number of pairs of socks bought and sold.        
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• question_answer12)
  Explain the concept of shift in demand curve.    
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• question_answer13)
                                         Which of the following measures of meeting deficit in a budget, leads to an increase in money supply in the economy?
  A)
  Disinvestment                
  done clear
  B)
  Loan from World Bank
  done clear
  C)
  Deficit financing 
  done clear
  D)
    All of these                                  Not Available
  done clear
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• question_answer14)
  "The budget reveals the financial performance of the government as well as financial programmes and policies of the government over the past one year." Is the given statement true? Given reason.                                               
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• question_answer15)
  As a part of RBI?s credit control policy, what is the objective of quantitative instruments of of credit control?                                                                    
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• question_answer16)
  What is fiat money?                                                        
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• question_answer17)

  What will happen to an economy if aggregate demand increases 6eyoncf full employment level? Explain using a graph.

  or

  What is meant by full employment and involuntary unemployment? Explain along with the position of demand of labour and supply of labour in these situations.

   
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• question_answer18)
  What is investment multiplier? How is its value determined? What can be its minimum and maximum values?                                                     
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• question_answer19)
  Explain any four precautions of distributed share method of calculating national income.                                                                    
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• question_answer20)

  Legal Reserve Ratio (LRR) consists of two ratios as its components. Explain those components.

  or

  Explain the components of demand deposits.

   
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• question_answer21)
  What is the difference between public goods and private goods? Explain, why public goods must be provided by the government.                                    
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• question_answer22)
  Draw a straight line consumption curve. From it, derive a saving curve explaining the process. Show this on diagram.

  (i) The level of income at which Average Propensity to Consume (APC) is equal to one.

  (ii) A level of income at which Average Propensity to Save (APS) is negative.

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• question_answer23)
  From the following data, calculate\[(GD{{P}_{MP}})\]

  (i) Gross Domestic Product at Market Price

  (ii) Factor Income to Abroad

  S. No.	Items	(Rs.)in crores
  (i)	Compensation of Employees	1,000
  (ii)	Net Exports	(-) 50
  (iii)	Profits	400
  (iv)	Interest	250
  (v)	Rent	150
  (vi)	Gross National Product at Factor Cost	1,850
  (vil)	Gross Domestic Capital Formation	220
  (viii)	Net Fixed Capital Formation	150
  (ix)	Change in Stock	20
  (x)	Factor Income from Abroad	30
  (xi)	Net Indirect Taxes	100

  Which economic value is affected by a positive value of factor income to abroad?    Or State whether the following statements are true or false. Give reasons in support of your answer.

  (i)  Nominal GDP can be less than real GDP.

  (ii) Change in stock is a stock variable.

  (iii) Capital formation is a flow variable.

  (iv) National debt interest is not a transfer payment.

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• question_answer24)
  What is foreign exchange market? Give the functions of foreign exchange market. 
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