Board Paper of Class 12-Commerce 2012 Economics (SET 1) - Solutions
(i) All questions in both the sections are compulsory.
(ii) Marks for questions are indicated against each.
(iii) Questions Nos. 1-5 and 17-21 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each
(iv) Questions Nos. 6-10 and 22-26 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
(v) Questions Nos. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
(vi) Questions Nos. 14-16 and 30-32 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.
- Question 1
Give meaning of an Economy.VIEW SOLUTION
- Question 2
What is market Demand?VIEW SOLUTION
- Question 3
What is the behaviour of average fixed cost as output increases?VIEW SOLUTION
- Question 4
What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?VIEW SOLUTION
- Question 5
What is a price taker firm?VIEW SOLUTION
- Question 6
What is opportunity cost? Explain with the help of a numerical example.VIEW SOLUTION
- Question 7
Given price of a goods, how does a consumer decide as to how much of the good to buy?VIEW SOLUTION
- Question 8
Draw Average Variable Cost, Average Total Cost ad Marginal Cost curves in a single diagram.VIEW SOLUTION
- Question 9
An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain.VIEW SOLUTION
- Question 10
Explain the implication of large number of buyers in a perfectly competitive market.
Explain why firms are mutually interdependent in an oligopoly market.VIEW SOLUTION
- Question 11
Define an indifference curve. Explain why an indifference curve is downward sloping from left to right.VIEW SOLUTION
- Question 12
When price of good is Rs 7 per unit a consumer buys 12 units. When price falls to Rs6 per unit he spends Rs 72 on the good. Calculate price elasticity of demand by using the percentage method. Comment on the likely shape of demand curve based on this measure of elasticity.VIEW SOLUTION
- Question 13
What does the Law of variable Proportions show? State the behaviour of total product according to this law.
Explain how changes in prices of other products influence the supply of a given product.VIEW SOLUTION
- Question 14
Explain how do the following influence demand for a good:
(i) Rise in income of the consumer.
(ii) Fall in prices of the related goods.VIEW SOLUTION
- Question 15
Explain the conditions of a producer’s equilibrium in terms of marginal cost and marginal revenue. Use diagram.VIEW SOLUTION
- Question 16
Market for a good is in equilibrium. There is simultaneous “increase” both in demand and supply of the good. Explain its effect on market price.
Market for a good is in equilibrium. There is simultaneous “decrease” both in demand and supply of the good. Explain its effect on market price.VIEW SOLUTION
- Question 17
Define stock variable.VIEW SOLUTION
- Question 18
Define capital goods.VIEW SOLUTION
- Question 19
What are demand deposits?VIEW SOLUTION
- Question 20
Define a Tax.VIEW SOLUTION
- Question 21
Give meaning of managed floating exchange rate.VIEW SOLUTION
- Question 22
Calculate Gross Value Added at Factor Cost:
Units of output sold (units)
Price per unit of output (Rs.)
Intermediate cost (Rs.)
Closing stock (Rs.)
Opening stock (Rs.)
Sales tax (Rs.)
- Question 23
Explain the significance of the ‘Store of Value’ function of money.VIEW SOLUTION
- Question 24
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.VIEW SOLUTION
- Question 25
Find national income from the following:
= Rs. 100
Marginal propensity to consume
= Rs 50
- Question 26
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples.
Explain the role of Government budget in allocation of resources.VIEW SOLUTION
- Question 27
Giving reason explain how should the following be treated in estimating national income:
(i) Expenditure on fertilizers by a farmer.
(ii) Purchase of tractor by a farmer.VIEW SOLUTION
- Question 28
Explain the components of Legal reserve Ratio.
Explain ‘bankers’ bank, function of Central bank.VIEW SOLUTION
- Question 29
Explain ‘Revenue Deficit’ in a Government budget? What does it indicate?VIEW SOLUTION
- Question 30
Find out (a) national income and (b) net national disposable income:
Factor income from abroad
Private final consumption expenditure
Consumption of fixed capital
Government final consumption expenditure
Net current transfers to abroad
Net domestic fixed capital formation
Net factor income to abroad
Net indirect tax
Change in stocks
- Question 31
Explain the concept of ‘excess demand’ in macroeconomics. Also explain the role of ‘open market operation’ in correcting it.
Explain the concept of ‘deficient demand’ in macroeconomics. Also explain the role of Bank Rate in correcting it.VIEW SOLUTION
- Question 32
Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments ‘deficit’ in this context.VIEW SOLUTION