Board Paper of Class 12-Commerce 2019 Economics Delhi(Set 3) - Solutions
General Instructions :
(ii) Marks for questions are indicated against each question.
(iv) Question Nos. 5 - 6 and 17 - 18 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
(vi) Question Nos. 10 - 12 and 22 - 24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
- Question 1
The average product curve in the input-output plane, will be __________. (Choose the correct alternative)(a) an 'S' shaped curve
(b) an inverse 'S' shaped curve
(c) a 'U' shaped curve
(d) an inverse 'U' shaped curve VIEW SOLUTION
- Question 2
If the market supply of a commodity X changes due to improvement in technology, the market supply curve will ________. (Fill up the blank)
If the market supply of a commodity X changes due to rise in price of a factor input, the market supply curve will ________. (Fill up the blank)VIEW SOLUTION
- Question 3
In the given figure, the movement on the production possibility curve from point A to point B shows ________. (Choose the correct alternative)
(a) Growth of all the resources in the economy.
(b) Underutilisation of resources.
(c) Production of more units of Good X and less units of Good Y.
(d) Production of more units of Good Y and less units of Good X. VIEW SOLUTION
- Question 4
Average fixed cost curve ____. (Choose the correct alternative)
(a) is a straight line parallel to X-axis.
(b) is straight line parallel to Y-axis.
(c) falls, as more units are produced
(d) rises, as more units are produced
ORWhich of the following formula is correct for calculating marginal cost?(Choose the correct alternative)
(a) MCN = TFCn – TFCN – 1
(b) MCN = ACN – ACN – 1
(c) MCN = AVCN – AVCn – 1
(d) MCN = TCn – TCN – 1 VIEW SOLUTION
- Question 5
Good X and Good Y are complementary goods. If price of Good X increases, discuss briefly its likely impact on the demand for Good Y.OR
If the income of a consumer increases, discuss briefly its likely impact on the demand for a normal good, Good X.VIEW SOLUTION
- Question 6
Identify and discuss the nature of the following newspaper reports in terms of positive or normative economic analysis :VIEW SOLUTION
(i) "India jumped 23 points in the World Bank's ease of doing business index to 77th place, highest in 2 years." – The Economic Times
(ii) "Government should further liberalise the business rules." – The Economic Times
- Question 7
Explain the law of equi-marginal utility.
ORState and discuss the conditions of consumer's equilibrium under ordinal approach. VIEW SOLUTION
- Question 8
Complete the following cost schedule :
Quantity (in Units) 0 1 2 3 4 Total cost (in ₹) 200 ....... ....... ....... ....... Total variable cost (in ₹) 0 ....... 180 ....... ....... Average variable cost (in ₹) – 100 ....... 80 .......
- Question 9
In the given diagram, OP is the market determined price and OP1 is the price fixed by the government.(a) Identify if the diagram represents, price ceiling or price flooring.
(b) Discuss the likely behaviour of the market in the given condition.
Suppose the demand and supply equations of a commodity X in a perfectly competitive market are given by :
Qd = 1700 – 2PQs = 1300 + 3P
Calculate the value of equilibrium price and equilibrium quantity of the commodity X.VIEW SOLUTION
- Question 10
Elaborate three main features of monopolistic competition form of market.
Distinguish between perfect competition and monopolistic competition on the basis of the following:(a) Number of sellers
(b) Nature of product(c) Selling costVIEW SOLUTION
- Question 11
(a) Define price elasticity of demand.
(b) If the price of a commodity rises by 40% and its quantity demanded falls from150 units to 120 units, calculate coefficient of price elasticity of demand for the commodity.VIEW SOLUTION
- Question 12
What is meant by "diminishing returns to a factor" ? Discuss any two reasons for the operation of diminishing returns to a factor. VIEW SOLUTION
- Question 13
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be __________. (Choose the correct alternative)VIEW SOLUTION
- Question 14
What is meant by primary deficit ?
What is meant by fiscal deficit ?VIEW SOLUTION
- Question 15
Give any two examples of flow concept. VIEW SOLUTION
- Question 16
Define the term 'tax'. VIEW SOLUTION
- Question 17
Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.
"Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country. "Defend or refute the given statement with valid reason
- Question 18
If in an economy :
Change in initial Investment (∆I) = ₹ 1,200 crores
Marginal Propensity to Save (MPS) = 0.2VIEW SOLUTION
Find the values of :
(a) Investment Multiplier (k),
(b) Change in final income (∆Y)
- Question 19
State and discuss the components of Aggregate Demand in a two sector economy.
ORIn the given figure, what does the gap 'KT' represent? State any two fiscal measures to correct the situation.
- Question 20
Discuss the working of the adjustment mechanism in the following situations:
(a) Aggregate demand is greater than Aggregate supply.
(b) Ex Ante Investments are lesser than Ex Ante Savings. VIEW SOLUTION
- Question 21
(a) How are tax receipts different from non-tax receipts? Discuss briefly.
(b) State any two items of revenue expenditure in a Government budget? VIEW SOLUTION
- Question 22
Given the following data, find the missing values of 'Gross Domestic Capital Formation' and 'Wages and Salaries'.
S.No. Particulars Amount
(in Cr. ₹)
(i) Mixed Income of Self Employed 3,500 (ii) Net Indirect Taxes 300 (iii) Wages & Salaries ? (iv) Government Final Consumption Expenditure 14,000 (v) Net Exports 3,000 (vi) Consumption of Fixed Capital 300 (vii) Net Factor Income from Abroad 700 (viii) Operating Surplus 12,000 (ix) National Income 30,000 (x) Profits 500 (xi) Gross Domestic Capital Formation ? (xii) Private Final Consumption Expenditure 11,000
- Question 23
(a) State any two components of M1 measure of money supply.
(b) Elaborate any two instruments of Credit Control, as exercised by the Reserve Bank of India.
Define Credit Multiplier. What role does it play in determining the credit creation power of the banking system ? Use a numerical illustration to explain. VIEW SOLUTION
- Question 24
(a) Define "Trade surplus". How is it different from "Current account surplus" ?
(b) "Indian Rupee (₹) plunged to all time low of ₹ 74.48 against the US Dollar ($)".
−The Economic Times
In the light of the above report, discuss the impact of the situation on Indian Imports.VIEW SOLUTION