# Solved papers for 12th Class Economics Solved Paper - Economics 2016 Delhi Set-I

### done Solved Paper - Economics 2016 Delhi Set-I Total Questions - 29

• question_answer1) What is the relation between marginal cost and average variable cost when marginal cost is rising and average variable cost is falling?

• question_answer2)  Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be: (choose the correct alternative). (a) Greater than average revenue (b) Equal to average revenue (c) Less than average revenue (d) Rising

• question_answer3) When does 'increase' in demand take place?

• question_answer4)  'Homogenous products' is a characteristics of: (Choose the correct alternative) (a) Perfect competition only (b) Perfect oligopoly only (c) Both (a) and (b) (d) None of the above

• question_answer5)  There is inverse relation between price and demand for the product of a firm under : (Choose the correct alternative) (a) Monopoly only (b) Monopolistic competition only (c) Both under monopoly and monopolistic competition (d) Perfect competition only

• question_answer6) A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 5 and 4 respectively. The prices of X and Y are Rs. 4 per unit and Rs. 5 per unit respectively. Is the consumer in equilibrium? What will be the further reaction of the consumer? Explain.

• question_answer7) Price elasticity of demand of good X is $\mathbf{2}$ and of good Y is$\mathbf{3}$. Which of the two goods is more price elastic and why?

• question_answer8)  What is maximum price ceiling? Explain its implications. Or Explain the chain effects, if the prevailing market price is below the equilibrium price.

• question_answer9) Explain in effect of change in prices of the related goods on demand for the given good.

• question_answer10)  Define production function. Distinguish between short run and long run production functions. Or Define cost. Distinguish between fixed and variable costs. Give one example of each.

• question_answer11) A producer supplies 80 units of a good at a price of Rs. 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs. 9 per unit?

• question_answer12) Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.

• question_answer13) Explain the condition of consumer's equilibrium using indifference curve analysis.

• question_answer14) Explain the distinction between 'Change in quantity supplied' and 'Change in supply'. Use diagram.

• question_answer15)  Explain the implication of the following in a perfectly competitive market: (a) Large number of buyers (b) Freedom of entry and exit to firms Or Explain the implications of the following in an oligopoly market: (a) Inter?dependence between firms (b) Non?price competition

• question_answer16) Define Stocks.

• question_answer17)  Depreciation of fixed capital assets refers to: (Choose the correct alternative) (a) Normal wear and tear (b) Foreseen obsolescene (c) Normal wear and tear and foreseen obsolescene (d) Unforeseen obsolescence

• question_answer18) What is revenue expenditure?

• question_answer19)  Fiscal deficit equals: (Choose the correct alternative) (a) Interest Payments (b) Borrowings (c) Interest payments less borrowing (d) Borrowings less interest payments

• question_answer20)  Foreign exchange transactions dependent on other foreign exchange transactions are called: (choose the correct alternative) (a) Current account transactons (b) Capital account transactions (c) Autonomous transactions (d) Accomodating transaction

• question_answer21)  Find net value added at factor cost: (Rs. Lakh) (i) Durable use producer goods with a life span of 10 years 10 (ii) Single use producer goods 5 (iii) Sales 20 (iv) Unsold output produced during the year 2 (v) Taxes on production 1

• question_answer22)  Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example. Or Explain the role of taxation in reducing excess demand.

• question_answer23) In an economy investment is increased by Rs. 300 crore. I marginal propensity to consume is 2/3, calculate increase in national income.

• question_answer24) Government incurs expenditure to popularize yoga among the masses. Analyse its impact on gross domestic product and welfare of the people.

• question_answer25) Explain how open market operations are helpful in controlling credit creation.

• question_answer26) What is government budget? Explain how taxes and subsidies can be used to influence allocation of resources.

• question_answer27) Given Consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

• question_answer28)  (a) In which sub 'account and on which side of balance of payments account will foreign investments in Indian be recorded' Give reasons. (b) What will be the effect of foreign investment in India on exchange rate? Explain.