Economics Delhi Set 2 2015-2016 Commerce (English Medium) Class 12 Question Paper Solution

There is inverse relation between price and demand for the product of a firm under:

(choose the correct alternative)

(a) Monopoly only

(b) Monopolistic competition only

(c) Both under monopoly and monopolistic competition

(d) Perfect competition only

Homogenous product’ is a characteristic of : (choose the correct alternative)

(a) Perfect competition only

(b) Perfect oligopoly only

(c) Both (a) and (b)

(d) None of the above

Suppose total revenue is rising at a constant rate as more units of a commodity are sold, marginal revenue would be:

(a) Greater than average revenue

(b) Equal to average revenue

(c) Less than average revenue

(d) Rising

When does ‘increase’ in supply take place?

What is the relation between marginal cost and average cost when average cost is constant?

What is maximum price ceiling? Explain its implications.

Explain the chain effects, if the prevailing market price is below the equilibrium price.

A consumer consumes only two goods X and Y. If marginal utilities of X and Y are 4 and 5 respectively, and if price of X is Rs 5 per unit and that of Y is Rs 4 per unit is the consumer in equilibrium? What will be further reaction of the consumer? Explain.

Price elasticity of demand of goods X is -2 and goods Y is -3. Which of the two goods is more price elastic and why?

Price elasticity of supply of a good is 2. A producer supplies 100 units of a good at a price of Rs 20 per unit. At what price will he supply 80 units?

What happens to the demand of a good when consumer's income changes? Explain

Define production function.

Distinguish between short run and long run production functions

Define cost.

Distinguish between fixed and variable costs. Give one example of each.

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

Large number of buyers

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:

Inter- dependence between firms

Explain the implications of the following in an oligopoly market:

Non-price competition

Explain the distinction between “change in quantity supplied’ and “change in supply”. Use diagram.

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

Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.

Foreign exchange transactions dependent on other foreign exchange transactions are called ______.

Current account transactions

Capital account transactions

Autonomous transactions

Accommodating transactions

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments

Depreciation of fixed capital assets refers to :

(a) Normal wear and tear

(b) Foreseen obsolescence

(c) Normal wear and tear and foreseen obsolescence

(d) Unforeseen obsolescence.

What are revenue receipts in a government budget?

Define stocks.

Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate.

Find net value added at market price:

Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.

Explain the role of taxation in reducing excess demand.

Explain how ‘bank rate' is helpful in controlling credit creation?

Government insure expenditure to popularize yoga among the masses. Analyses its impact on gross domestic product and welfare of the people.

Explain the ‘store of value’ function of money. How has solved the related problem created by barter?

Explain the ‘unit of accounts’ function of money. How has it solved the related problem created by barter?

Find national income and private income:

(a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Given reasons.

(b)What will be the effect of foreign investments in India on exchange rate? Explain.

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.

What is government budget?

Explain how taxes and subsides can be used to influence allocation of resources.

What are revenue receipts in a government budget?

Explain how government budget can used to bring in price stability in the economy.