# Solved papers for 12th Class Economics Solved Paper - Economics 2017 Delhi Set-I

### done Solved Paper - Economics 2017 Delhi Set-I

 The demand of commodity when measured through the expenditure approach is inelastic. A fall in its price will result in: (Choose the correct alternative) (a) no change in expenditure on it. (b) increase in expenditure on it. (c) decrease in expenditure on it. (d) any one of the above.

 As we move along a downward sloping straight line demand curve from left to right, price elasticity of demand: (Choose the correct alternative) (a) remain unchanged (b) goes on falling (c) goes on rising (d) falls initially then rises

 Average revenue and price are always equal under: (choose the correct alternative) (a) perfect competition only (b) monopolistic competition only (c) monopoly only (d) all market forms

• question_answer5) State any one feature of oligopoly.

• question_answer6) Distinguish between microeconomics and macroeconomics.

• question_answer7) State the meaning and properties of production possibilities frontier.

 Show that demand of a commodity is inversely related to its price. Explain with the help of utility analysis. Or Why an indifference curve is negatively sloped? Explain.

• question_answer9) Explain the conditions of consumer's equilibrium under indifference curve approach.

 State different phases of the law of variable proportions on the basis of total product. Use diagram. Or Explain the geometric method of measuring price elasticity of supply. Use diagram.

• question_answer11) Explain the 'free entry and exit of firms' feature of monopolistic competition.

• question_answer12) When price of a commodity X falls by 10 percent, its demand rises from 150 units to 180 units. Calculate its price elasticity of demand. How much should be the percentage fall in its price so that its demand rises from 150 to 210 units?

 Complete the following table: Output units Total cost Rs. Average variable cost Rs. Marginal cost Rs. Average fixed cost Rs. 0 30 1 ... ... 20 ... 2 68 ... ... ... 3 84 18 ... ... 4 ... ... 18 ... 5 125 19 ... 6

 Good Y is a substitute of good X. The price of Y falls Explain the chain of effects of this change in the market of X. Or Explain the chain of effects of excess supply of a good on its equilibrium price.

 Given below is the cost schedule of a product produced by a firm. The market price per unit of the product at all levels of output is Rs 12. Using marginal cost and marginal revenue approach, find out the level of equilibrium output. Give reasons for your answer: Output (Units) 1 2 3 4 5 6 Average (Cost) (Rs) 12 11 10 10 10.4 11

 The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is called, (choose the correct alternative) (a) Statutory liquidity ratio (b) Deposit ratio (c) Cash reserve ratio (d) Legal reserve ratio

 Aggregate demand can be increased by: (choose the correct alternative) (a) Increasing bank rate (b) Selling government securities by Reserve Bank of India (c) Increasing cash reserve ratio (d) None of the above

• question_answer18) Give the meaning of involuntary unemployment

 Primary deficit indicate the amount of borrowings requinal by the government to meet the expenditure other than trtrest payment. Primary deficit = Fiscal deficit  trterest payment

• question_answer20) Give the meaning of balance of payments.

• question_answer21) Distinguish between final goods and intermediate goods, Give an example of each.

• question_answer22) State the meaning and components of money supply.

• question_answer23) Explain the basis of classifying taxes into direct and indirect tax. Give examples.

 Explain 'banker to the government' function of the central bank. Or Explain the role of reverse repo rate in controlling money supply.

• question_answer25) Explain how government badger can be used to influence distribution of income?

 An economy is in equilibrium. From the following data about an economy calculate autonomous consumption. (a) Income = 5000 (b) Marginal propensity to save = 0.2 (c) Investment expenditure = 800

• question_answer27) Why does the demand for foreign currency fall and supply rises when its price rises? Explain.

 Explain 'non-monetary exchanges' as a limitation of using gross domestic product as an index of welfare of a country. Or How will you treat the following while estimating domestic product of a country? Give reasons for your answer: (a) Profits earned by branches of country's bank in other countries (b) Gifts given by an employer to his employees on Independence Day (c) Purchase of goods by foreign tourists

 Calculate (a) net domestic product at factor cost Rs. in crore (i) Private final Consumption Expenditure 5000 (ii) Government final Consumption Expenditure 1000 (iii) Exports 70 (iv) Imports 120 (v) Consumption of fixed capital 60 (vi) Gross domestic fixed capital formation 500 (vii) Change in stock 100 (viii) Factor income to abroad 40 (ix) Factor income from abroad 90 (x) Indirect taxes 700 (xi) Subsidies 50 (xii) Net current transfer to abroad (?) 30

• question_answer30) Assuming that increase in investment is Rs. 1000 crore and marginal property to consume is 0.9. Explain the working of multiplier.