# Solved papers for 12th Class Economics Solved Paper - Economics Re-Examination 2018

### done Solved Paper - Economics Re-Examination 2018

 Which of the following measures of price elasticity shows elastic supply? (Choose the correct alternative) (a) 0 (b) 0.5 (c) 1.0 (d) 1.5

• question_answer3) At what level of production is total cost equal to total fixed cost?

 Which of the following does not cause shift of supply curve of a good? (Choose the correct alternative) (a) Price of input (b) Price of the good (c) Goods and services tax (d) Subsidy

• question_answer5) A consumer buys 200 units of a good at a price of Rs. 20 per unit. Price elasticity of demand is$(-)\,2$. At what price will he be willing to purchase 300 units? Calculate.

 Explain the central problem of 'What is produced and in what quantities'. Or In what circumstances may the production possibility frontier shift away from the origin? Explain.

• question_answer7) Explain the implications of "Freedom of entry and exit of firms" under perfect competition.

 Write a budget line equation of a consumer if the two goods purchased by the consumer Good X and Good Y are priced at Rs. 10 and Rs. 5 respectively and the consumer's income is Rs. 100. Or Define marginal rate of substitution. Explain its behaviour along an indifference curve.

• question_answer9) Explain the conditions of producer's equilibrium under perfect competition.

• question_answer10) Draw Average Variable Cost (AVC)/ Average Total. Cost (ATC) and Marginal Cost (MC) curves in a single diagram. State the relation between MC curve and AVC & ATC curves.

 Define price floor. Explain the implications of price floor. Or Market of a good is in equilibrium. Demand for the good 'decreases'. Explain the chain of effects of this change.

• question_answer12) A consumer consumes only two goods X and Y. Explain the conditions of consumer's equilibrium using Utility Analysis.

• question_answer14) State the two components of ${{M}_{1}}$ measure of Money Supply.

 Credit creation by commercial banks is determined by (Choose the correct alternative) (a) Cash Reserve Ratio (CRR) (b) Statutory Liquidity Ratio (SLR) (c) Initial Deposits (d) All the above

• question_answer16) Give one example of negative externalities.

• question_answer17) Define investment multiplier. How is it related to marginal propensity to consume?

 Distinguish between stock and flow variables with suitable examples. Or What are capital goods? How are they different from consumption goods?

• question_answer19) What is ex-Ante consumption? Distinguish between autonomous consumption and induced consumption.

• question_answer20) What is monetary policy? State any three instruments of monetary policy.

 Define full employment in an economy. Discuss the situation when aggregate demand is more than aggregate supply at full employment income level. Or What are two alternative ways of determining equilibrium level of income? How are these related?

 Discuss briefly the meanings of: (i) Fixed Exchange Rate (ii) Flexible Exchange Rate (iii) Managed Floating Exchange Rate

 What is government budget? Explain its major components. Or Explain (a) allocation of resources and (b) economic stability as objectives of government budget.

 Calculate (a) Operating Surplus, and (b) Domestic Income: (Rs in crores) (i) Compensation of employees 2,000 (ii) Rent and interest 800 (iii) Indirect taxes 120 (iv) Corporation tax 460 (v) Consumption of fixed capital 100 (vi) Subsidies 20 (vii) Dividend 940 (viii) Undistributed profits 300 (ix) Net factor income to abroad 150 (x) Mixed income 200