Economics Foreign Set 3 2014-2015 Commerce (English Medium) Class 12 Question Paper Solution

If with the rise in the price of good Y, demand for good X rises, the two goods are: (Choose the correct alternative)

a. Substitutes
b. Complements
c. Not related
d. Jointly demanded

A consumer consumes only two goods. If the price of one of the goods falls, the indifference curve: (Choose the correct alternative)

a. Shifts upwards
b. Shifts downwards
c. Can shift both upwards or downwards
d. Does not shift

What is 'ordinal' utility?

What will be the impact of "Education for All campaign" (Sarv Shiksha Abhiyan) on the Production Possibilities Curve of the Indian economy and why?

What will likely be the impact of the large-scale inflow of foreign capital in India on Production Possibilities Curve and why?

Explain the cause of the limited number of firms in an oligopoly market.

What is maximum price ceiling? Explain its implications.

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

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

What is supply?

Explain the effect of technological progress on supply of a good.

What is 'change in supply'? Explain the effect of tax imposed on a good on the supply of the good.

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

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

A consumer consumes only two goods, each priced at Rupee one 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? Give reasons. Explain what will a rational consumer do in this situation.

A consumer consumes only two goods X and Y whose prices are Rs 2 and Rs 1 per unit respectively. It the consumer chooses a combination of the two goods with marginal utility of X being 4 and that of Y also being 4, is the consumer in equilibrium ?Give reasons. Explain what will a rational consumer do in this situation. Use Marginal Utility Analysis.

Explain why will a producer not be in equilibrium if the conditions of equilibrium are not met.

Other things remaining the same, when the foreign currency becomes cheaper, the effect on national income is likely to be : (Choose the correct alternative)

a. Positive
b. Negative
c. Positive and negative both
d. No effect

Primary deficit in a government budget equals : (Choose the correct alternative)

a. Interest payments
b. Interest payments less borrowings
c. Borrowings less interest payments
d. None of the above

Which one of these is a revenue expenditure?

Purchase of shares

Loans advanced

Subsidies

Expenditure on acquisition of land

Name any two components of 'aggregate demand'.

If MPC = 0, the value of the multiplier is: (Choose the correct alternative)

a. 0
b. 1
c. Between 0 and 1
d. Infinity

Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.

Give the meanings of Balance of Trade and Balance on Current Account of Balance of Payments Accounts

Giving reasons explain where charity to foreign countries is recorded in the Balance of Payments Accounts

If the Real Gross Domestic Product is Rs 250 and the Price Index (base = 100) is 120, calculate the Nominal Gross Domestic Product.

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

An economy is in equilibrium. Calculate Autonomous Consumption from the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150

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

Explain bankers bank function of a Central bank.

What is meant by inflationary gap?

Explain the role of Cash Reserve Ratio in removing an inflationary gap

Explain the concept of 'deficient demand' in macroeconomics.

Explain the role of 'Margin Requirements' in removing this deficient demand gap.

Explain the role of the government budget infighting inflationary and deflationary tendencies.

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

Payment of corporate tax by a firm

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

Purchase of machinery by a factory for own use

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

Purchase of uniforms for nurses by a hospital

Calculate Net National Product at Market Price and Gross National Disposable Income: