12th Class Economics Sample Paper

done Economics - Sample Paper-2 Total Questions - 24    [Download]

• question_answer1)
  State the fundamental problem of an economy that resulted in the emergence of central problem.
  View Answer play_arrow

• question_answer2)
  Average revenue of a monopolist firm is
  A)
  always more than the marginal revenue   
  done clear
  B)
      always less than the marginal revenue
  done clear
  C)
  equal to marginal revenue                    
  done clear
  D)
  None of these
  done clear
  View Answer play_arrow

• question_answer3)
  Total Revenue (TR) - Total Variable Cost (TVC) is equal to
  A)
  gross profit                    
  done clear
  B)
  net profit
  done clear
  C)
  normal profit                 
  done clear
  D)
  abnormal profit
  done clear
  View Answer play_arrow

• question_answer4)
  How is total variable cost derived from marginal cost?
  View Answer play_arrow

• question_answer5)
  Suppose there are 20 consumers for a good and they have identical demand functions.\[d(p)\]\[=50-{{6}_{p}}\]for any price less than or equal to \[\frac{20}{6}\]and d(p) = 0 at any price greater 10/3. What is the market demand function? Or Consider the demand curve d (p)=\[10-{{3}_{p}}\]. What is the elasticity at price\[\frac{5}{3}\]?
  View Answer play_arrow

• question_answer6)
  What will be the impact on India's PPC, if latest technology is imported from abroad?
  View Answer play_arrow

• question_answer7)
  Draw a diagram indicating the following situations:

  (i) \[xy>\frac{Px}{Py}\]

  (ii)\[xy=\frac{Px}{Py}\]

  (iii)\[xy<\frac{Px}{Py}\]

  Where,\[xy\]=Marginal Rate of Substitution of Good \[x\]for Good y  \[{{P}_{x}}\]= Price of Good\[X\], \[{{P}_{y}}\]= Price of Good \[y\]                                                     Which of the three indicates highest level of consumer's satisfaction? A consumer consumes only two goods X and Y. State and explain the conditions of consumer's equilibrium with the help of utility analysis,                                        
  View Answer play_arrow

• question_answer8)
                                                               Explain the 'law of variable proportions'. Use schedule.                          
  View Answer play_arrow

• question_answer9)
                                                                  What do you understand by oligopoly market? Explain any three of its features.  
  View Answer play_arrow

• question_answer10)
  Define demand. Explain the factors influencing individual household demand for a commodity in the market.                                                 
  View Answer play_arrow

• question_answer11)

  (i) Can Marginal Revenue (MR) be negative? Explain your answer with the help of example.

  (ii) Total Revenue (TR) of a firm, dealing in a particular commodity, initially was Rs.15,000. It reduces to Rs.13,500. Also, AR increases from Rs. 150 to Rs. 270. Find the change in market demand for that commodity.

  Or

  State whether the following statements are true or false. Give reasons for your answer.

  (i) When Marginal Revenue (MR) is constant and not equal to zero, then Total Revenue (TR) will also be constant,

  (ii) As soon as Marginal Cost (MC) starts rising, Average Variable Cost (AVC) also starts rising.

  (iii) Total Product (TP) always increases whether there is increasing returns or diminishing returns to a factor.

                                                                                                     
  View Answer play_arrow

• question_answer12)
                                           Explain profit and loss situation under perfect competition, during the short- run Which economic value is affected if the firm is incurring abormal losses?
  View Answer play_arrow

• question_answer13)
    What are the sources of borrowings for government other than the general public?
  View Answer play_arrow

• question_answer14)
                                                                          The currency notes do not carry as much value as denominated on it. Do you agree?
  View Answer play_arrow

• question_answer15)
                       What do you mean by public goods?
  View Answer play_arrow

• question_answer16)
                      The difference between narrow money and broad money is
  A)
  coins and currency         
  done clear
  B)
  only currency
  done clear
  C)
  saving deposits of banks       
  done clear
  D)
  time deposits with banks
  done clear
  View Answer play_arrow

• question_answer17)
  The saving function of an economy is\[S=-200+0.25Y.\]The economy is in equilibrium when income is equal to Rs.2,000.Calculate the following :

  (i) Investment expenditure at equilibrium level of income

  (ii) Autonomous consumption

  Or It is given that MPC is 1/3rd of MPS, while consumption at zero level of income is given as Rs.100crore. Derive the consumption and savings functions.
  View Answer play_arrow

• question_answer18)
  Inflationary gap and deflationary gap both are caused due to the displacement aggregate demand from the full employment equilibrium level and both are harm: for a country. In spite of these similarities, there exist many differences between the two. Explain any three of those differences.
  View Answer play_arrow

• question_answer19)
  How will you treat the following while estimating national income of India? (i) Dividend received by an Indian from his investment in shares of a foreign company. (ii) Money received by a family in India from relatives working abroad. (iii) Interest received on loans given to a friend for purchasing a car. (iv) Dividend received by a foreigner from investment in shares of an Indian company.     
  View Answer play_arrow

• question_answer20)
  Giving a numerical example, explain the process of money creation by the commercial banks. Or Government of India has launched 'Jan-Dhan Yojana' aimed at every household to have at least one bank account due to which credit creation capacity of banks have seen expansion manifolds. Comment.
  View Answer play_arrow

• question_answer21)
                                                                                   Explain the role of government budget in fighting inflationary and deflationary tendencies.
  View Answer play_arrow

• question_answer22)
                                                                            From the following information, calculate Gross National Product at Market Price  by

  (i) Income method

  (ii) Expenditure method

  S, No	Items	(Rs.) In crores
  (i)	Factor Income from Abroad	100
  (ii)	Wages of Employees	1,500
  (iii)	Net Domestic Capital Formation	500
  (iv)	Private Final Consumption Expenditure	2,200
  (v)	Factor Income to Abroad	150
  (vi)	Change in Stock	150
  (vii)	Consumption of Fixed Capital	150
  (viii)	Interest	400
  (ix)	Exports	200
  (x)	Imports	250
  (xi)	Indirect Taxes	300
  (xii)	Rent	400
  (xiii)	Subsidies	100
  (xiv)	Government Final Consumption Expenditure	850
  (xv)	Profit	1,000

  Explain briefly the steps taken in estimating national income by the value added method. Also, explain any two precautions required to be taken in this method.    
  View Answer play_arrow

• question_answer23)
                                                  What do you mean by Multiplier (K)? Explain the relationship between Marginal Propensity to Consume (MPC) and Multiplier (K).
  View Answer play_arrow

• question_answer24)
                                     Explain the three major functions of foreign exchange market.
  View Answer play_arrow