If Marginal Rate of Substitution is increasing throughout, the
Indifference Curve will be : (Choose the correct alternative)
(a) Downward sloping convex
(b) Downward sloping concave
(c) Downward sloping straight line
(d) Upward sloping convex
Answer :
If Marginal Rate of Substitution is increasing throughout, the
Indifference Curve will be
downward sloping concave.
Hence, the correct answer is option (b).
Define budget line.
Answer :
A budget line represents the different combinations of two goods that are affordable and are available to a consumer; while being aware of his/her income-level and market prices of both the goods. The budget line is represented by the following equation.
P1x1 + P2x2 = M
If due to fall in the price of good X, demand for good Y rises,
the two goods are : (Choose the correct alternative)
(a) Substitutes
(b) Complements
(c) Not related
(d) Competitive
Answer :
If due to fall in the price of good X, demand for good Y rises, the
two goods are complements. This is
because demand for a good moves in the opposite direction of the
price of its complementary goods.
Hence, the correct answer is option (b).
Explain the significance of 'minus sign' attached to the measure of price elasticity of demand in case of a normal good, as compared to the 'plus sign' attached to the measure of price elasticity of supply.
Answer :
Giving reason comment on the shape of Production Possibilities
Curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 16 |
| 1 | 12 |
| 2 | 8 |
| 3 | 4 |
| 4 | 0 |
Answer :
Explain why will a producer not be in equilibrium if the conditions of equilibrium are not met.
Answer :
What are the effects of 'price-floor' (minimum price ceiling) on the market of a good? Use diagram.
Answer :
Explain the implication of non-price competition in an oligopoly market.
Answer :
What is the behaviour of (a) Average Fixed Cost and (b) Average Variable Cost as more and more units of a good are produced ?
Answer :
A consumer spends Rs 100 on a good priced at Rs 4 per unit. When its price falls by 25 percent, the consumer spends Rs 75 on the good. Calculate the price elasticity of demand by the Percentage method.
Answer :
Market for a good is in equilibrium. The supply of the good "increases". Explain the chain of effects of this change.
Answer :
Explain why will a producer not be in equilibrium if the conditions of equilibrium are not met.
Answer :
What are the different phases in the Law of Variable Proportions in terms of marginal product ? Give reason behind each phase. Use diagram.
Answer :
A consumer consumes only two goods X and Y, both priced at Rs. 2 per unit. If the consumer chooses a combination of the two goods with Marginal Rate of Substitution equal to 2, is the consumer in equilibrium? Why or why not? What will a rational consumer do in this situation? Explain.
Answer :
Primary deficit in a government budget is : (Choose the correct
alternative)
(a) Revenue expenditure − Revenue receipts
(b) Total expenditure − Total receipts
(c) Revenue deficit − Interest payments
(d) Fiscal deficit − Interest payments
Answer :
What is 'aggregate demand' in macroeconomics?
Answer :
If MPC = 1, the value of multiplier is : (Choose the correct
alternative)
(a) 0
(b) 1
(c) Between 0 and 1
(d) Infinity
Answer :
Other things remaining the same, when in a country the market
price of foreign currency falls, national income is likely :
(Choose the correct alternative)
(a) to rise
(b) to fall
(c) to rise or to fall
(d) to remain unaffected
Answer :
Direct tax is called direct because it is collected directly from
: (Choose the correct alternative)
(a) The producers on goods produced
(b) The sellers on goods sold
(c) The buyers of goods
(d) The income earners
Answer :
Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts ? Give reasons.
Answer :
If the Real GDP is Rs 500 and Price Index (base = 100) is 125, calculate the Nominal GDP.
Answer :
What are fixed and flexible exchange rates ?
Answer :
An economy is in equilibrium. Calculate the Marginal Propensity
to Save from the following :
National Income = 1000
Autonomous Consumption = 100
Investment = 120
Answer :
Explain the "Bankers' Bank function" of the central bank.
Answer :
Currency is issued by the central bank, yet we say that commercial banks create money. Explain. How is this money creation by commercial banks likely to affect the national income ? Explain.
Answer :
Explain how the government can use the budgetary policy in reducing inequalities in incomes.
Answer :
Giving reason explain how the following should be treated in
estimation of national income :
(i) Payment of interest by a firm to a bank
(ii) Payment of interest by a bank to an individual
(iii) Payment of interest by an individual to a bank
Answer :
What is 'deficient demand' ? Explain the role of 'Bank Rate' in removing it.
Answer :
Calculate 'Net National Product at Market Price' and 'Personal
Income'.
|
Rs (crores) |
||
| (i) | Transfer payments by government | 7 |
| (ii) | Government final consumption expenditure | 50 |
| (iii) | Net imports | –10 |
| (iv) | Net domestic fixed capital formation | 60 |
| (v) | Private final consumption expenditure | 300 |
| (vi) | Private income | 280 |
| (vii) | Net factor income to abroad | –5 |
| (viii) | Closing stock | 8 |
| (ix) | Opening stock | 8 |
| (x) | Depreciation | 12 |
| (xi) | Corporate tax | 60 |
| (xii) | Retained earnings of corporations | 20 |
Answer :
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.