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Question Paper Solutions - Economics 2015 - 2016-CBSE 12th-Class 12 CBSE (Central Board of Secondary Education)

Alternate Sets

         

Marks: 100
[1]1

Differentiated products is a characteristic of: (Choose the correct alternative):

(a) Monopolistic competition only

(b) Oligopoly only

(c) Both monopolistic competition and oligopoly

(d) Monopoly

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms
[1]2

Demand curve of a firm is perfectly elastic under: (Choose the correct alternative)

(a) Perfect competition

(b) Monopoly

(c) Monopolistic competition

(d) Oligopoly

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms
[1]3

What happens to the difference between Total Cost and Total Variable Cost as output is increased?

Chapter: [1.03] Producer Behaviour and Supply
Concept: Cost - Total Cost
[1]4

A firm is able to sell any quantity of a good at a given price. The firm's marginal revenue will be : (Choose the correct alternative):

(a) Greater than Average Revenue

(b) Less than Average Revenue

(c) Equal to Average Revenue

(d) Zero

Chapter: [1.06] Cost and Revenue
Concept: Total, Average and Marginal Revenue
[1]5

When does 'shift' in supply curve take place?

Chapter: [1.03] Producer Behaviour and Supply
Concept: Movements Along and Shifts in Supply Curve
[3]6

What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is (a) Zero, (b)-1, (c)-2.

Chapter: [1.03] Analysis of Demand and Elasticity of Demand
Concept: Elasticity of Demand
[3]7 | Attempt Any One
[3]7.1

What is minimum price ceiling? Explain its implications.

Chapter: [1.04] Forms of Market and Price Determination
Concept: Price Ceiling
[3]7.2

If the prevailing market price is above the equilibrium price, explain its chain of effects.

Chapter: [1.04] Forms of Market and Price Determination
Concept: Equilibrium Price
[3]8

A consumer consumes only two goods X and Y. The marginal utilities of X and of Y is 3. Prices of X and Y are Rs 2 and Rs 1 respectively. Is consumer in equilibrium? What will be further reaction of the consumer?

Give reasons.

Chapter: [1.01] Demand
Concept: Conditions of Consumer's Equilibrium Using Marginal Utility Analysis
[4]9 | Attempt Any One
[4]9.1

Define fixed cost. Give an example.

Chapter: [1.03] Producer Behaviour and Supply
Concept: Cost - Fixed Cost

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

Chapter: [1.03] Producer Behaviour and Supply
Concept: Cost - Average Fixed Cost
[4]9.2

Define marginal product.

Chapter: [1.03] Producer Behaviour and Supply
Concept: Marginal Product

State the behaviour of marginal product when only one input is increased and other inputs are hold constant.

Chapter: [1.03] Producer Behaviour and Supply
Concept: Marginal Product
[4]10

When price of a good rises from Rs 8 per unit to Rs 10 per unit, producer supplies 40 units more. Price elasticity of supply is 2. What is the quantity supplied before the price change? Calculate

Chapter: [1.03] Supply
Concept: Concept of Supply
[4]11

Define demand. Name the factors affecting market demand.

Chapter: [2] Theory of Income and Employment
Concept: Demand

Distinguish between individuals demand and market demand.

Chapter: [1.01] Demand
Concept: Demand Curve and Its Slope
[6]12

Explain the three properties of the indifference curves.

Chapter: [1.02] Consumer Equilibrium and Demand
Concept: Indifference Curve
[6]13 | Attempt Any One
[6]13.1

Explain the implications of the following in a perfectly competitive market :

Large number of sellers

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms

Explain the implications of the following in a perfectly competitive market :

Homogeneous products.

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms
[6]13.2

Explain the implications of the following in an oligopoly market: Barriers to entry of new firms

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms

Explain the implications of the following in an oligopoly market: A few or a few big sellers

Chapter: [1.07] Main Market Forms
Concept: Main Market Forms
[6]14

Why do central problems of an economy arise?

Chapter: [1.01] Introduction
Concept: Central Problems of an Economy

Explain the central problem for whom to produce.

Chapter: [1.01] Introduction
Concept: Central Problems of an Economy
[6]15

Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.

Chapter: [1.03] Producer Behaviour and Supply
Concept: Supply Curve and Schedule
[1]16

Primary deficit equals : (Choose the correct alternative)

(a) Borrowings

(b) Interest payments

(c) Borrowings less interest payments

(d) Borrowings and interest payments both

Chapter: [5.02] Government Budget
Concept: Deficit Budget - Primary Deficit
[1]17

Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called : (Choose the correct alternative)

(a) Current transactions

(b) Capital transactions

(c) Autonomous transactions

(d) Accommodating transactions

Chapter: [4.01] Balance of Payment
Concept: Concept of Balance of Payments Account
[1]18

Define flows.

Chapter: [2.01] National Income and Related Aggregates
Concept: Basic Concepts - Stocks and Flows
[1]19

National income is the sum of factor incomes accruing to : (Choose the correct alternative)

(a) Nationals

(b) Economic territory

(c) Residents

(d) Both residents and non-residents

Chapter: [2.01] National Income and Related Aggregates
Concept: Concept of National Income
[1]20

What are capital receipts in a government budget

Chapter: [2.04] Government Budget and the Economy
Concept: Classification of Receipts
[3]21 | Attempt Any One
[3]21.1

What is aggregate demand?

Chapter: [2.03] Determinants of Aggregates
Concept: Concept of Aggregate Demand and Aggregate Supply

State components of Aggregate demand ?

Chapter: [2.03] Determinants of Aggregates
Concept: Concept of Aggregate Demand and Aggregate Supply
[3]21.2

Explain how controlling money supply is helpful in reducing excess demand.

Chapter: [3.02] Banks
Concept: Cash Reserve Ratio (CRR)
[3]22

An economy is in equilibrium. Find investment expenditure: 

National Income =1,000

Autonomous Consumption =100

Marginal propensity to consume =0.8

Chapter: [2.03] Determination of Income and Employment
Concept: Consumption Function and Propensity to Save
[3]23

If real income is Rs 400 and price index is 105, calculate nominal income.

Chapter: [2.01] National Income and Related Aggregates
Concept: Concept of National Income
[4]24 | Attempt Any One
[4]24.1

Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?

Chapter: [2.04] Money
Concept: Function of Money - Primary Function
[4]24.2

Explain the 'standard of deferred payment' function of money. How has it solved the related problem created by barter?

Chapter: [2.02] Money and Banking
Concept: Standard of Deferred Payment
[4]25

Explain how 'Repo Rate' can be helpful in controlling credit creation.

Chapter: [2.02] Money and Banking
Concept: Repo Rate and Reverse Repo Rate
[4]26

Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

Chapter: [2.01] National Income and Related Aggregates
Concept: GDP and Welfare
[6]27

Indian investors lend abroad. Answer the following questions :

(a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons.

(b) Explain the impact of the lending on market exchange rate.

Chapter: [4.01] Balance of Payment
Concept: Concept of Balance of Payments Account
[6]28 | Attempt Any One
[6]28.1

Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.

Chapter: [2.04] Government Budget and the Economy
Concept: Classification of Expenditure

Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?

Chapter: [2.04] Government Budget and the Economy
Concept: Classification of Expenditure
[6]28.2

What is the difference between direct tax and indirect tax?

Chapter: [2.04] Government Budget and the Economy
Concept: Direct and Indirect Tax

Explain the role of government budget in influencing allocation of resources.

Chapter: [2.04] Government Budget and the Economy
Concept: Government Budget - Allocation of Resources
[6]29

Calculate National Income and Personal Disposable Income:

    (Rs crore)
(i) Corporate tax 100
(ii) Private final consumption expenditure 900
(iii) Personal Income tax 120
(iv) Government final consumption expenditure 200
(v) Undistributed profits 50
(vi) Change in stocks (-)20
(vii) Net domestic fixed capital formation 120
(viii) Net imports 10
(ix) Net indirect tax 150
(x) Net factor income from abroad (-)10
(xi) Private income 1000
Chapter: [6.02] Concepts and Definition
Concept: Aggregates Related to National Income - Personal Disposable Income
[6]30

Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

Chapter: [1.03] Producer Behaviour and Supply
Concept: Supply Curve and Schedule
S