12th Economics Paper Solutions Set 1 : CBSE Delhi Previous Year 2009

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.
Q1 :

Give two examples of Microeconomic studies.


Answer :

The following are two examples of Microeconomic studies.

(a) The Theory of Consumer”™s Behaviour and Demand

(b) The Theory of Producer”™s Behaviour and Supply

 

Q2 :

When is the demand of a commodity said to be inelastic?


Answer :

Demand for a commodity is said to be inelastic when the demand is less responsive to changes in the price of the commodity. In such a case, the percentage change in demand is less than the percentage change in the price and |ed| < 1.

Q3 :

Define fixed cost.


Answer :

Fixed cost refers to that cost which is incurred by a firm on the fixed factors of production such as capital.

Q4 :

What causes a downward movement along a supply curve?


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Q5 :

Define monopoly.


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Q6 :

Why does an economic problem arise? Explain.

OR

Explain the problem of “What to produce”™.


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Q7 :

Distinguish between a normal good and an inferior good. Give example in each case.


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Q8 :

How is the price elasticity of demand of a commodity affected by the number of its substitutes? Explain.


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Q9 :

Explain the meaning of “increase in supply”™ and “increase in quantity supplied”™ with the help of a schedule.


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Q10 :

Why is a firm under Perfect Competition a price-taker? Explain.


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Q11 :

Complete the following table:

Output (Units)

Average Variable Cost

(Rs)

Total Cost

 (Rs)

Marginal Cost

(Rs)

1

-

60

20

2

18

-

-

3


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Q12 :

Commodities X and Y have equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 per cent rise in its price. Calculate the percentage fall in supply of Y if its price falls by 9 per cent.


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Q13 :

From the following schedule find out the level of output at which the producer is in equilibrium. Give reasons for your answer.

Output

(Units)

Price

(Rs)

Total Cost

(Rs)

1

24

26

2

24

50

3

24

72

4


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Q14 :

Explain the causes of a rightward shift in demand curve of a commodity of an individual consumer.

OR

Explain the conditions of consumer”™s equilibrium in case of (i) single commodity and (ii) two commodities. Use utility approach.


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Q15 :

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

(i) When there are diminishing returns to a factor, total product always decreases.

(ii) Total product will increase only when marginal product increases.

(iii) When marginal revenue is zero, average revenue will be constant.


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Q16 :

With the help of a diagram explain the effect of “decrease” in demand of a commodity on its equilibrium price and quantity.


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Q17 :

Why is repayment of loan a capital expenditure?


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Q18 :

What is meant by excess demand in Macroeconomics?


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Q19 :

What can be the minimum value of investment multiplier?


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Q20 :

Define bank rate.


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Q21 :

Define involuntary unemployment.


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Q22 :

Complete the following table:

Income

Saving

Marginal Propensity to Consume

Average Propensity to Save

0

– 12

 

 

20

– 6

40

0

&


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Q23 :

State any three points of distinction between Central Bank and Commercial Banks.


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Q24 :

How can a government budget help in reducing inequalities of income? Explain.


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Q25 :

Explain the circular flow of income.

OR

Distinguish between intermediate products and final products. Give examples.


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Q26 :

List the items of the current account of balance of payments account. Also define “balance of trade”™.


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Q27 :

Explain the meaning and two merits of fixed foreign exchange rate.

OR

Explain two sources each of demand and supply of foreign exchange.


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Q28 :

State the four functions of money. Explain any one of them.


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Q29 :

Distinguish between:

(i) Direct tax and indirect tax.

(ii) Revenue deficit and fiscal deficit.


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Q30 :

How will you treat the following while estimating domestic factor income of India? Give reasons for your answer.

(i) Remittances from non-resident Indians to their families in India.

(ii) Rent paid by the embassy of Japan in India to a resident Indian.

(iii) Profits earned by branches of foreign bank in India.


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Q31 :

Give consumption function C = 100 + 0.75 Y (where C = consumption expenditure and Y = national income) and investment expenditure Rs. 1000, calculate.

(i) Equilibrium level of national income.

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

OR

What changes will take place to bring an economy in equilibrium if

(i) Planned savings are greater than planned investment and

(ii) Planned savings are less than planned investment


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Q32 :

Calculate “Gross National Product at factor cost” from the following data by (i) income method, and (ii) expenditure method:

S. No.

Items

(Rs in crore)

(i)

Private final consumption expenditure

1,000

(ii)

Net domestic capital formation

200

(iii)

Profits

400

(iv)

Compensation of employees

800


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12th Economics Paper Solutions Set 3 : CBSE Delhi Previous Year 2013 will be available online in PDF book soon. The solutions are absolutely Free. Soon you will be able to download the solutions.