HSC Science (Computer Science) 12th Standard Board Exam - Maharashtra State Board Question Bank Solutions for Economics

PASSAGE

Mona visits a shopping mall near her residence. She shops for monthly groceries which include rice, wheat, sugar, cooking oil and pulses. She purchases additional quantities of sugar much more than her monthly requirement anticipating that prices may rise in the coming days due to festivities.

She observes two different qualities of tur dal out of which one quality is inferior and the other is superior. She does not purchase the low quality tur dal even though its price is comparatively lower. Instead she prefers to buy superior quality tur dal.

1. Identify the exception to the law of demand in the given passage with reference to purchase of additional quantities of sugar much more than monthly requirement anticipating that prices may rise in the coming days due to festivities (1mark)
2. Identify the kind of good with reference to low quality tur dal (1mark)
3. Express your personal opinion based on the above information. (2 marks)

• Assertion (A): The money market economizes the use of cash.
• Reasoning (R): The money market deals with financial instruments that are close substitutes for money.

Assertion (A): Money market economizes use of cash.

Reasoning (R): Money market deals with financial instruments that are close substitutes of money.

State with reason whether you agree or disagree with the following statement:

When price of Giffen goods fall, the demand for it increases.

Identify and explain the concept from the given illustration:

John purchased wheat flour for his bakery from the flour mill.

State with reasons whether you agree or disagree with the following statement:

Money market plays an important role in India.

State with reasons whether you agree or disagree with the following statement:

There is a direct relationship between the price of Giffen goods and its demand.

State with reason whether you agree or disagree with the following statement.

When price of Giffen goods fall, the demand for it increases.

State with reason whether you agree or disagree with the following statement:

When price of Giffen goods fall, the demand for it increases.

Distinguish between:

Expansion of demand and Contraction of demand.

Explain the diagram:

1. The diagram represents _______ in demand.
2. In the diagram, A movement of the demand curve is in ______ direction.

Explain the diagram:

1. The diagram represents ______ in demand.
2. In the diagram, the movement of the demand curve is in ______ direction.

The money market faces a shortage of funds due to ______.

Explain the problems faced by the money market in India.

Give economic terms:

A situation where more quantity is demanded at a lower price.

Policy that deals with public expenditure, public revenue and public debt –

Distinguish between revenue expenditure and capital expenditure. 

Explain the concepts of variation and changes in demand with the help of diagrams.

Distinguish between:

Expansion of demand and Contraction of demand

Give an economic term:

Other factors remain constant, demand falls due to a rise in price.