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Board Paper of Class 12-Science 2009 Economics (SET 1) - Solutions

General Instructions:
(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 2

    What is meant by inferior good in economics?

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  • Question 4

    Give one reason for a rightward shift in supply curve.

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  • Question 5

    Why is Average Total Cost greater than average variable cost?

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  • Question 6

    State the law of demand and show it with the help of a schedule.

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  • Question 7

    Explain the geometric method of measuring price elasticity of demand.

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  • Question 8

    Why do problems related to allocation of resources in an economy arise? Explain.

    OR

    Explain the problem of ‘for whom to produce’.

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  • Question 9

    Complete the following table:

    Output (Units)

    Total Revenue

     (Rs)

    Marginal Revenue

    (Rs)

    Average Revenue

    (Rs)

    1

    8

    2

    4

    3

    12

    4

    8

    2

     

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  • Question 10

    Explain the effect of fall in prices of other goods on the supply of given good.

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  • Question 11

    Explain two points of distinction between monopoly and monopolistic competition.

    OR

    Explain any two main features of perfect competition.

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  • Question 12

    The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 per cent rise in the price X results in a 40 per cent rise in its supply. If the price of Y falls by 8 per cent, calculate the percentage fall in its supply.

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  • Question 13

    Given below is a cost and revenue schedule of a produce. At what level of output is the producer in equilibrium? Give reasons for your answer.

    Output

    (Units)

    Price

    (Rs)

    Total Cost

    (Rs)

    1

    10

    13

    2

    10

    22

    3

    10

    30

    4

    10

    38

    5

    10

    47

    6

    10

    57

    7

    10

    71

     

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  • Question 14

    With the help of a demand and supply schedule, explain the meaning of excess demand and its effect on price of a commodity.

    OR

    Define equilibrium price of a commodity. How is it determined? Explain with the help of a schedule.

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  • Question 15

    Giving reasons, state whether the following statements are true or false:

    (i) Average cost falls only when marginal cost falls.

    (ii) The difference between average total cost and average variable cost is constant.

    (iii) When total revenue is maximum, marginal revenue is also maximum.

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  • Question 16

    Explain the effect of the following on the market demand of a commodity:

    (i) Change in price of related goods

    (ii) Change in the number of its buyers

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  • Question 18

    Why are taxes received by the government not capital receipts?

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  • Question 19

    Give the meaning of excess demand in an economy.

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  • Question 22

    Complete the following table:

    Income

    Marginal Propensity to Consume

    Saving

    Average Propensity to save

    0

     

    – 90

     

    100

    0.6

    200

    0.6

    300

    0.6

     

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  • Question 23

    Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

    OR

    Distinguish between domestic product and national product. When can domestic product be more than national product?

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  • Question 24

    Distinguish between balance on trade account and balance on current account.

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  • Question 25

    State the main functions of commercial bank. Explain any one of them.

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  • Question 26

    Give the meaning of revenue deficit, fiscal deficit and primary deficit.

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  • Question 27

    Describe the evolution of money.

    OR

    Explain any two functions of money.

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  • Question 28

    Explain any two objectives of a government budget.

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  • Question 29

    Explain two merits each of flexible foreign exchange rate and fixed foreign exchange rate.

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  • Question 30

    While estimating national income, how will you treat the following? Give reasons for your answer.

    (i) Imputed rent of self occupied houses.

    (ii) Interest received on debentures.

    (iii) Financial help received by flood victims.

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  • Question 31

    In an economy S = − 50 + 0.5 Y is the saving function (where, S = saving and Y = national income) and investment expenditure is 7000. Calculate:

    (i) Equilibrium level of national income.

    (ii) Consumption expenditure at equilibrium level of national income.

    OR

    Consumption function: C = 200 + 0.9 Y

    (where, C = consumption expenditure and Y = national income)

    Investment expenditure: I = 3000

    Calculate:

    (i) Equilibrium level of national income.

    (ii) Consumption expenditure at equilibrium level of national income

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  • Question 32

    From the following data, calculate “national income” by (a) income method and (b) expenditure method:

    S. No.

    Items

    (Rs. in crore)

    (i)

    Interest

    150

    (ii)

    Rent

    250

    (iii)

    Government final consumption expenditure

    600

    (iv)

    Private final consumption expenditure

    1200

    (v)

    Profits

    640

    (vi)

    Compensation of employees

    1000

    (vii)

    Net factor income to abroad

    30

    (viii)

    Net indirect taxes

    60

    (ix)

    Net exports

    (–) 40

    (x)

    Consumption of fixed capital

    50

    (xi)

    Net domestic capital formation

    340

     

    VIEW SOLUTION
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