Board Paper of Class 12-Commerce 2012 Economics (SET 2) - Solutions
(i) All questions in both the sections are compulsory.
(ii) Marks for questions are indicated against each.
(iii) Questions Nos. 1-5 and 17-21 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each
(iv) Questions Nos. 6-10 and 22-26 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
(v) Questions Nos. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
(vi) Questions Nos. 14-16 and 30-32 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.
- Question 1
What is a price taker firm?VIEW SOLUTION
- Question 2
Give meaning of an Economy.VIEW SOLUTION
- Question 3
What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?VIEW SOLUTION
- Question 4
What is market Demand?VIEW SOLUTION
- Question 5
What is the behaviour of average fixed cost as output increase?VIEW SOLUTION
- Question 6
What is ‘Marginal Rate of Transformation’? Explain with the help of an example.VIEW SOLUTION
- Question 7
Explain the implication of large number of buyers in a perfectly competitive market.
Explain why are firms mutually interdependent in an oligopoly market.VIEW SOLUTION
- Question 8
Given price of a good, how does a consumer decide as to how much of that good to buy?VIEW SOLUTION
- Question 9
A producer borrows money and opens a shop. The shop premise is owned by him. Identify the implicit and explicit costs from this information. Explain.VIEW SOLUTION
- Question 10
Draw Average Variable Cost, Average Total Cost and Marginal Cost Curves in a single diagram.VIEW SOLUTION
- Question 11
Define Marginal Rate of Substitution. Explain why is an indifference curve convex?VIEW SOLUTION
- Question 12
A consumer buys 10 units of a good at a price of Rs 9 per unit. At price of Rs 10 per unit he buys 9 units. What is price elasticity of demand. Use expenditure approach. Comment on the likely shape of demand curve on the basis of this measure of elasticity.VIEW SOLUTION
- Question 13
What does the Law of Variable Proportions show? State the behavior of total product according to this law.
Explain how changes in prices of other products influence the supply of a given product.VIEW SOLUTION
- Question 14
Market for a good is in equilibrium. There in simultaneous “increase” both in demand and supply of the good. Explain its effect on market price.
Marker for a good is in equilibrium. There is simultaneous “decrease” both in demand and supply of the good. Explain its effect on market price.VIEW SOLUTION
- Question 15
Explain how do the following influences demand for a good:
(i) Rise in income of the consumer.
(ii) Fall in prices of the related goods.VIEW SOLUTION
- Question 16
Explain the conditions of a producer’s equilibrium in terms of marginal cost and marginal revenue.VIEW SOLUTION
- Question 17
Given meaning of managed floating exchange rate.VIEW SOLUTION
- Question 18
Define a Tax.VIEW SOLUTION
- Question 19
Define stock variable.VIEW SOLUTION
- Question 20
Define capital goods.VIEW SOLUTION
- Question 21
What are demand deposits?VIEW SOLUTION
- Question 22
Calculate Net Value Added at Factor Cost:
Consumption of fixed capital (Rs)
Import duty (Rs)
Output sold (units)
Price per unit of output (Rs)
Net change in stock (Rs)
Intermediate cost (Rs)
- Question 23
Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give example.
Explain the role of government budget in allocation of resources.VIEW SOLUTION
- Question 24
Explain the significance of the ‘Store of Value’ function of money.VIEW SOLUTION
- Question 25
Find ‘investment’ from the following:
Marginal propensity to consume
- Question 26
Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.VIEW SOLUTION
- Question 27
Giving reason explain how should the following be treated in estimating national income:
(i) Payment of bonus by a firm
(ii) Payment of interest on a loan taken by an employee from the employerVIEW SOLUTION
- Question 28
Explain ‘revenue deficit’ in a Government budget? What does it indicate?VIEW SOLUTION
- Question 29
Explain the components of Legal Reserve Ratio.
Explain ‘bankers’ bank, function of Central bank.VIEW SOLUTION
- Question 30
Find out (a) Net National Product at Market price and (b) Gross National Disposable
Net current transfers from abroad
Wages and Salaries
Net factor income to abroad
Social security contributions by employers
Net Indirect Tax
Consumption of fixed capital
- Question 31
Explain the distinction between autonomous and accommodating transaction in balance of payments. Also explain the concept of balance of payment ‘deficit’ in this context.VIEW SOLUTION
- Question 32
Explain the concept of ‘excess demand’ in macroeconomics. Also explain the role of ‘open market operation’ in correcting it.
Explain the concept of ‘deficient demand’ in macroeconomics. Also explain the role of Bank Rate in correcting it.VIEW SOLUTION