Economics Delhi Set 1 2014-2015 Commerce (English Medium) Class 12 Question Paper Solution

Give the equation of Budget Line.

When the income of the consumer falls the impact on a price-demand curve of an inferior good is: (choose the correct alternative)

a. Shifts to the right.
b. Shifts of the left.
c. There is upward movement along the curve.
d. There is downward movement along the curve

If Marginal Rate of Substitution is constant throughout, the Indifference curve will be :(choose the correct alternative)

a. Parallel to the x-axis.
b. Downward sloping concave.
c. Downward sloping convex.
d. Downward sloping straight line.

Giving reason comment on the shape of Production Possibilities curve based on the following schedule :

What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities curve of the economy and why?

What will likely be the impact of large-scale outflow of foreign capital on Production Possibilities curve of the economy and why?

The measure of price elasticity of demand of a normal good carries minus sign while price elasticity of supply carries plus sign. Explain why?

Explain ‘large number of buyers and sellers' features of a perfectly competitive market.

What is maximum price ceiling? Explain its implications.

A consumer spends Rs 1000 on a good priced at Rs 8 per unit. When price rises by 25 percent, the consumer continues to spend Rs 1000 on the good. Calculate the price elasticity of demand by percentage method.

Define cost.

State the relation between marginal cost and average variable cost.

Define revenue

State the relation between marginal revenue and average revenue.

A consumer consumes only two goods X and Y both priced at Rs 3 per unit. If the consumer chooses a combination of these two goods with Marginal Rate of Substitution equal to 3, is the consumer in equilibrium? Give reasons. What will a rational consumer do in this situation? Explain

A consumer consumes only two goods X and Y whose prices are Rs 4 and Rs 5 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4, is the consumer in equilibrium? Give reason. What will a rational consumer do in this situation? Use utility analysis.

State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour

Why is the equality between marginal cost and marginal revenue necessary for a firm to be in equilibrium? Is it sufficient to ensure equilibrium? Explain.

A market for a good is in equilibrium. The demand for the good 'increases'. Explain the chain of effects of this change.

Define aggregate supply?

The value of the multiplier is: (choose the correct alternative)

a. `1/"MPC"`

b. `1/"MPS"`

c. `1/(1-"MPS")`

d. `1/(MPC- 1)`

Borrowing in government budget is ______.

Revenue deficit

Fiscal deficit

Primary deficit

Deficit in taxes

The non-tax revenue in the following is: (choose the correct alternative)

a. Export duty
b. Import duty
c. Dividends
d. Excise

Other things remaining unchanged, when in a country the price of foreign currency rises, national income is: (choose the correct alternative)

a. Likely to rise
b. Likely to fall
c. Likely to rise and fall both
d. Not affected

If Real GDP is Rs 200 and Price Index (with base = 100) is 110, calculate Nominal GDP

Name the broad categories of transactions recorded in the 'capital account' of the Balance of Payments Account

Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts

Where will the sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.

Explain the ‘bank of issue’ function of central bank.

Explain "Banker to the Government" function of the Central Bank.

A government of India has recently launched 'Jan-Dhan Yojana' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect the national income of the country.

An economy is in equilibrium. Calculate national income from the following :
Autonomous consumption = 100
Marginal propensity to save = 0.2
Investment expenditure = 200

Giving reason explain how should the following be treated in the estimation of national income:

Expenditure by a firm on payment of fees to a chartered accountant

Giving reason explain how should the following be treated in the estimation of national income:

Payment of corporate tax by a firm

Giving reason explain how should the following be treated in the estimation of national income:

Purchase of refrigerator by a firm for own use

What is meant by inflationary gap?

Explain the role of Repo Rate in reducing the Inflationary gap.

Explain the concept of Deflationary Gap

Explain the role of 'Open Market Operations' in reducing Deflationary Gap

Answer the following question.
Explain the role of government budget in influencing the allocation of resources.

Calculation National Income and Personal Disposable Income: