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

### done Solved Paper - Economics 2016 Outside Delhi Set-I

• question_answer1) What is the relation between Average Variable Cost and Average Total Cost, If Total Fixed Cost is zero?

 A firm is able to sell any quantity of a good at a given price. The firm?s marginal revenue will be: [1] (Choose the correct alternative) (a) Greater than Average Revenue (b) Less than Average Revenue (c) Equal to Average Revenue (d) Zero

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

 Differentiated products is a characteristic of (choose correct answer): (a) Monopolistic competition only (b) Oligopoly only (c) Both monopolistic competition and oligopoly (d) Monopoly

 Demand curve of a firm is perfectly elastic under: (choose the correct alternative) (a) Perfect competition (b) Monopoly (c) Monopolistic Competition (d) Oligopoly

• question_answer6) A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 3 and 4 respectively. Prices of X and Y are Rs 4 per unit each. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons.

• question_answer7) What will be the effect of 10 percent rise in price of a goods on its demand if price elasticity of demand is (a) Zero, (b) $\mathbf{1}$, (c) $\mathbf{2}$.

 What is minimum price ceiling? Explain its implications. Or If the prevailing market price is above the equilibrium price, explain its chain of effects.

• question_answer9) Define demand. Name the factors affecting market demand.

 Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed cost as output is increased. Or Define marginal product. State the behaviour of margin product when only one input is increased and other inputs are held constant.

• question_answer11) When price of a commodity falls from Rs. 12 per unit to Rs. 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply.

• question_answer12) Why do central problems of an economy arise? Explain the central problem of ?for whom to produce??

• question_answer13) Explain three properties of indifference curves.

 Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams. For blind candidates in lieu of Q. No. 14. Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X on supply of a good. Use schedule.

 Explain the implications of the following in a perfectly competitive market: (a) Large number of sellers (b) Homogeneous products. Or (a) Barriers to entry of new firms (b) A few or a few big sellers

• question_answer16) Define flows.

 National income is the sum of factor incomes accuring to: (Choose the correct alternative) (a) Nationals (b) Economic territory (c) Residents (d) Both residents and non-residents

• question_answer18) What are revenue receipts in a government budget?

 Primary deficit equals: (Choose the correct alternative) (a) Borrowings (b) Interest payments (c) Borrowings less interest payments (d) Borrowings and interest payments both

 Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called: (Choose the correct alternative) (a) Current transactions (b) Capital transactions (c) Autonomous transactions (d) Accommodating transactions

• question_answer21) Assuming real income to be Rs. 200 crore and price index to be 135, calculated nominal income.

 What is aggregate demand? State its components. Or Explain how controlling money supply is helpful in reducing excess demand.

 An economy is in equilibrium. Calculate Marginal Propensity to consume: National income = 1000 Autonomous consumption expenditure = 200 Investment expenditure = 100

• question_answer24) Sale of petrol and diesal cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

• question_answer25) Explain how 'Repo Rate' can be helpful in controlling credit creation.

 What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence distribution of income in the society. Or What is the difference between direct tax and indirect tax? Explain the role of government budget in influencing allocation of resources.

• question_answer27) Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

 Indian investors lend abroad. Answer the following questions: (a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons. (b) Explain the impact of this lending on market exchange rate.

 Find Gross National Product at Market Price: (Rs. Crore) (i) Private final consumption expenditure 800 (ii) Net current transfers to abroad 20 (iii) Net factor income to abroad $()10$ (iv) Government final consumption expenditure 300 (v) Net indirect tax 150 (vi) Net domestic capital formation 200 (vii) Current transfers from government 40 (viii) Depreciation 100 (ix) Net imports 30 (x) Income accruing to government 90 (xi) National debt interest 50

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