Economics All India Set 2 2017-2018 Commerce (English Medium) Class 12 Question Paper Solution

When the total fixed cost of producing 100 units is Rs 30and the average variable cost Rs 3, total cost is : (Choose the correct alternative)

(a) Rs 3

(b) Rs 30

(c) Rs 270

(d) Rs 330

State one example of positive economics.

Define fixed cost. Give an example.

When the Average Product (AP) is maximum, the Marginal Product (MP) is: (Choose the correct alternative)

(a) Equal to AP

(b) Less than AP

(c) More than AP

(d) Can be any one of the above

What is meant by inelastic demand?

Compare inelastic demand with perfectly inelastic demand.

Answer the following question.
Explain the central problem for whom to produce.

Explain the central problem of "choice of technique".

What is meant by price ceiling? Explain its implications.

Given the price of a good, how does a consumer decide as to how much of the good to buy?

Define an indifference curve.

Explain the three properties of the indifference curves.

When the price of a commodity changes from Rs 4 per unit to Rs 5 per unit, its market supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is supply elastic? Given reason

Explain the conditions of a producer's equilibrium in terms of marginal cost and marginal revenue. Use diagram.

Features of Monopolistic Competition.

Which of the characteristics separates it from perfect competition and why?

Explain the implications of the following in a perfectly competitive market:

Freedom of entry and exit to firms

Explain the implications of the following in an oligopoly market:

Non-price competition

Explain the conditions of consumer’s equilibrium using indifference curve analysis.

Why does consumption curve not start from the origin?

The central bank can increase availability of credit by: (Choose the correct alternative)

(a) Raising repo rate

(b) Raising reverse repo rate

(c) Buying government securities

(d) Selling government securities

Define money supply

Which of the following affects national income? (Choose the correct alternative)

(a) Goods and Service tax

(b) Corporation tax

(c) Subsidies

(d) None of the above

Define multiplier

What is the relation between marginal propensity to consume and multiplier?

Calculate the marginal propensity to consume if the value of multiplier is 4.

Which among the following are final goods and which are intermediate goods? Give reasons.

1) Milk purchased by a tea stall

2) Bus purchased by a school

3) Juice purchased by a student from the school canteen

Given normal income, how can we find real income? Explain.

The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.

Explain the role of the Reserve Bank of India as the “lender of last resort”.

What is meant by inflationary gap?

State three measures to reduce inflationary gap.

What is aggregate demand?

State components of Aggregate demand ?

Calculation (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:

Explain 'Revenue Deficit in a Government budget? What does it indicate?

Define fiscal deficit

What is primary deficit?

Explain the role of Government budget in allocation of resources.

Explain the following objective of government budget:

Reducing income inequalities

Explain the impact of rise in exchange rate on national income.

Explain the concept of 'deficit' in balance of payments.