Solved papers for 12th Class Economics Solved Paper - Economics 2018

done Solved Paper - Economics 2018 Total Questions - 24

• question_answer1) 

  When the total fixed cost of producing 100 units is Rs. 30 and the average variable cost Rs. 3, total cost is: (Choose the correct alternative)

  (a) Rs. 3                                   (b) Rs. 30

  (c) Rs. 270                               (d) Rs. 330

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• question_answer2) 

  When the Average Product (AP) is maximum, the Marginal Product (MP) is: (Choose the correct alternative)

  (a) Equal to AP                        (b) Less than AP

  (c) More than AP                     (d) Can be any one of the above

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• question_answer3) State one example of positive economics.
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• question_answer4) Define fixed cost.
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• question_answer5) 

  Explain the central problem of 'choice of technique'.

  Or

  Explain the central problem of 'for whom to produce'.

   
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• question_answer6) What is meant by inelastic demand? Compare it with perfectly inelastic demand.
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• question_answer7) When the price of a commodity changes from Rs. 4 per unit to Rs. 5 per unit, its market supply rises from 100 units. Calculate the price elasticity of supply elastic? Given reason.
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• question_answer8) What is meant by price ceiling? Explain its implications.
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• question_answer9) 

  Given the price of a good, how will a consumer decide as to how much quantity to buy of that good? Explain.

  Or

  What is Indifference Curve? State three properties of indifference curves.

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• question_answer10) 

  State three characteristics of monopolistic competition. Which of the characteristics separates it from perfect competition and why?

  Or

  Explain the implications of the following:

  (a) Freedom of entry and exit of firms under perfect competition.

  (b) Non-price competition under oligopoly.

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• question_answer11) Explain the conditions of consumer's equilibrium using Indifference Curve Analysis.
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• question_answer12) Explain the conditions of producer's equilibrium in terms of marginal revenue and marginal cost.
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• question_answer13) Define money supply.
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• question_answer14) 

  Which of the following affects national income? (Choose the correct alternative)

  (a) Goods and Services tax                              (b) Corporation tax

  (c) Subsidies                                                    (d) None of the above

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• question_answer15) Why does consumption curve not start from the origin?
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• question_answer16) 

  The central bank can increase availability of credit by: (Choose the correct alternative).

  (a) Raising repo rate

  (b) Raising reverse repo rate

  (c) Buying government securities

  (d) Selling government securities

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• question_answer17) 

  Given nominal income, how can we find real income? Explain.

  Or

  Which among the following are final goods and which are intermediate goods? Given reasons.

  (a) Milk purchased by a tea stall

  (b) Bus purchased by a school

  (c) Juice purchased by a student from the school canteen

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• question_answer18) Define multiplier. What is relation between marginal propensity to consume and multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4.
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• question_answer19)                                                      

  What is meant by inflationary gap? State three measures to reduce this gap.

  Or

  What is meant by aggregate demand? State is I components.

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• question_answer20) The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs. 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.
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• question_answer21) Explain the role of the Reserve Bank of India as the "lender of last resort".
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• question_answer22) 

  (a) Explain the impact of rise in exchange rate on national income.

  (b) Explain the concept of 'deficit' in balance of payments.

   
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• question_answer23) 

  Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:
  (Rs in crores)
  (i)	Rent and interest	6,000
  (ii)	Wages and salaries	1,800
  (iii)	Undistributed profit	400
  (iv)	Net indirect taxes	100
  (v)	Subsidies	20
  (vi)	Corporation tax	120
  (vii)	Net factor income to abroad	70
  (viii)	Dividends	80
  (ix)	Consumption of fixed capital	50
  (x)	Social security contribution by employers	200
  (xi)	Mixed income	1,000

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• question_answer24) 

  Explain the meaning of the following:

  (a) Revenue deficit

  (b) Fiscal deficit

  (c) Primary deficit

  Or

  Explain the following objectives of government budget:

  (a) Allocation of resources

  (b) Reducing income inequalities.

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