Economics Delhi Set 1 2013-2014 Science (English Medium) Class 12 Question Paper Solution

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

Define budget set.

What is meant by revenue in microeconomics?

Give the meaning of returns to a factor.

What is perfect oligopoly?

Answer the following question.
Explain the central problem for whom to produce.

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.

State the relation between marginal revenue and average revenue.

State the relation between total cost and marginal cost.

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

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

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

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

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

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

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

Explain the three properties of the indifference curves.

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

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.

What are demand deposits?

What is involuntary unemployment?

Define marginal propensity to consume

What is government budget?

Give meaning of balance of trade.

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

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

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

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

Expenditure on a collection of taxes.

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

Expenditure on purchasing computers

Explain the meaning of balance of payments deficit.

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

Define money supply

Explain money supply components.

Answer the following question.
Explain the 'lender of last resort' function of central bank.

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

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

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

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

Fees to a mechanic paid by a firm.

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

Interest paid by an individual on a car loan taken from a bank.

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

Expenditure on purchasing a car for use by a firm.

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

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