# Question Paper - Economics 2013 - 2014-CBSE 12th-Class 12 CBSE (Central Board of Secondary Education) (CBSE)

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SubjectEconomics
Year2013 - 2014 (March)

Marks: 100
Q: 1[1]

Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.

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Q: 2[1]

Define budget set.

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Q: 3[1]

What is meant by revenue in microeconomics?

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Q: 4[1]

Give meaning of 'returns to a factor.

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Q: 5[1]

What is perfect oligopoly?

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Q: 6[3]

Explain the central problem 'for whom to produce.

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Q: 7[3]

A consumer buys 18 units of a good at a price of Rs 9 per unit. The price elasticity of demand for the good is (–) 1. How many units the consumer will buy at a price of Rs 10 per unit? Calculate.

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Q: 8 | Attempt Any One[3]
Q: 8.1[3]

State the relation between marginal revenue and average revenue.

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Q: 8.2[3]

State the relation between total cost and marginal cost.

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Q: 9[3]

What is the behaviour of average fixed cost as output is increased? Why is it so?

Explain with reason the behaviour of Average Fixed Cost as output is increased.

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Q: 10[3]

Why are the firms said to be interdependent in an oligopoly market? Explain.

Explain why firms are mutually interdependent in an oligopoly market

Explain the implications of the following:

Interdependence between firms in oligopoly.

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Q: 11 | Attempt Any One[4]
Q: 11.1[4]

A consumer consumes only two goods. Explain consumer's equilibrium with the help of utility analysis.

A consumer consumes only two goods X and Y. Explain the conditions of consumer’s equilibrium using Marginal Utility Analysis.

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Q: 11.2[4]

A consumer consumes only two goods A and B and is in equilibrium. Show that when price of good B falls, demand for B rises. Answer this question with the help of utility analysis

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Q: 12[4]

What happens to the demand of a good when consumer's income changes? Explain

Explain the effect of change in income of a consumer on demand of a good.

Explain the effects of change in income on demand for a good.

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Q: 13[4]

State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour

Explain the Law of Variables Proportions with the help of total product and marginal product curves.

What does the Law of variable Proportions show? State the behaviour of total product
according to this law

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Q: 14 | Attempt Any One[6]
Q: 14.1[6]

Explain the conditions of consumer’s equilibrium using indifference curve analysis.

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Q: 14.2[6]

Explain the three properties of the indifference curves.

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Q: 15[6]

From the following information about a firm, find the firms equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also find profit at this output

 Output (units) Total Revenue (Rs) Total Cost (Rs) 1 7 8 2 14 15 3 21 21 4 28 28 5 35 36

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Q: 16[6]

Market of a commodity is in equilibrium. Demand for the commodity "increases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.

Explain the chain of effects of ‘increase’ in demand of a good.

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Q: 17[1]

What are demand deposits?

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Q: 18[1]

What is involuntary unemployment?

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Q: 19[1]

Define marginal propensity to consume

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Q: 20[1]

What is government budget?

Define government budget.

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Q: 21[1]

Give meaning of balance of trade.

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Q: 22[3]

Define externalities. Give an example of negative externality. What is its impact on welfare?

Give one example of '-externality' which reduces welfare of the people.

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Q: 23 | Attempt Any One[3]
Q: 23.1[3]

Explain the ‘store of value’ function of money. How has solved the related problem created by barter?

Explain the significance of 'store of value' function of money

Explain the 'store of value' function of money. Flow has it solved the related problem created by barter?

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Q: 23.2[3]

Explain the significance of 'medium of exchange' function of money

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Q: 24[3]

Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

i. Expenditure on collection of taxes.

ii. Expenditure on purchasing computers

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Q: 25[3]

Explain the meaning of balance of payments deficit.

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Q: 26[3]

Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?

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Q: 27 | Attempt Any one[4]
Q: 27.1[4]

Define money supply and explain its components.

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Q: 27.2[4]

Explain the 'lender of last resort' function of central bank.

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Q: 28[4]

Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200

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Q: 29[4]

Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

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Q: 30[6]

Calculate national income and gross national disposable income from the following:

(Rs Arab)

i. Net current transfers to abroad                                                       (-) 15
ii. Private final consumption expenditure                                               600
iii. Subsidies                                                                                        20
iv. Government final consumption expenditure                                       100
v. Indirect tax                                                                                     120
vi. Net imports                                                                                     20
vii. Consumption of fixed capital                                                            35
viii. Net change in stocks                                                                    (-)10
ix. Net factor income to abroad                                                              5
x. Net domestic capital formation                                                          110

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Q: 31[6]

Giving reason explain how should the following be treated in estimating gross domestic product at market price?

i. Fees to a mechanic paid by a firm.
ii. Interest paid by an individual on a car loan taken from a bank.
iii. Expenditure on purchasing a car for use by a firm.

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Q: 32 | Attempt Any One[6]
Q: 32.1[6]

Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium

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Q: 32.2[6]

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

Outline the steps required to be taken in deriving saving curve from the given consumption curve. Use diagram

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#### Other Solutions

NCERT Chemistry Textbook for Class 12 Part 1
NCERT Chemistry Textbook for Class 12 Part 2
NCERT Mathematics Textbook for Class 12 Part 1
NCERT Physics Textbook for Class 12 Part 1
NCERT Physics Textbook for Class 12 Part 2
R.D. Sharma Mathematics Vol. 1 & 2 Class - 12
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