Economics All India Set 1 2016-2017 Commerce (English Medium) Class 12 Question Paper Solution

Any statement above demand for a good is considered complete only when the following is/are mentioned in it. ( choose the correct alternative)

a) Price of the good

b) Quantity of good

c) Period of time

d) All of the above

Demand for a good is termed inelastic through the expenditure approach when if (choose the correct alternative)

a) Price of good falls, expenditure on it rises

b) Price of the good falls, expenditure in it falls

c) Price of the good falls, expenditure on it remains unchanged

d) Price of the good rises, expenditure in it falls

Define an indifference curve.

A seller cannot influence the market price under (choose the correct alternative)

a) Perfect competition

b) Monopoly

c) Monopolistic competition

d) All of the above 

Features of Monopolistic Competition.

Give the meaning and characteristics of production possibility frontier.

Explain the problem of how to produce.

Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.

Explain the meaning of Budget set 

Explain the meaning of  Budget line.

Explain the meaning of diminishing marginal rate of substitution with the help of an example.

Define market supply.

Explain the factor Input prices that can cause a change in supply.

Give the behaviour of marginal product and total product as more and more units of only one input are employed while keeping other inputs as constant.

Explain Perfect knowledge about the markets feature of perfect competition.

When the price of good rise from Rs 10 per unit to Rs 12 per unit, its quantity demanded falls by 20 percent. Calculate its price elasticity of demand. How much would be the percentage change in its quantity demanded, if the price rises from Rs 10 per unit to Rs 13 per unit?

Complete the following table:

From the following total cost and total revenue schedule of a firm, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be is equilibrium. Give reasons for your answer.

Distinguish between perfect oligopoly and imperfect oligopoly. Also, explain the interdependence between the firms' feature of oligopoly.

Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.

Demand deposits include (choose the correct alternative)

(a) Saving account deposits and fixed deposits

(b) Saving account deposits and current account deposits

(c) Current account deposits and fixed deposits

(d) All types of deposits

Define marginal propensity to consume

If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative)

(a) greater than 2

(b) less than 2

(c) equal to 2

(d) equal to 5

What is government budget?

What is meant by the depreciation of domestic currency?

Distinguish between final goods and intermediate goods. Give an example of each.

Explain difficulty in storing wealth problem faced in the barter system of exchange

Explain the significance of 'medium of exchange' function of money

Distinguish between direct taxes and indirect taxes. Give an example of each

Explain bankers bank function of a Central bank.

Explain the process of credit creation by commercial banks.

An economy is in equilibrium. From the following data, calculate the marginal propensity to save:

1) Income = 10,000

2) Autonomous consumption = 500

3) Consumption expenditure = 8,000

Explain how government budget can be helpful in bringing economic stabilization in the economy.

Distinguish between current account and capital account

Distinguish between an autonomous transaction and accommodating transactions of the balance of payments account.

Explain the precautions that should be taken while estimating national income by expenditure method.

Will the following be included in the domestic product of India? Give reasons for your answer.

Profit earned by foreign companies in India

Will the following be included in the domestic product of India? Give reasons for your answer.

Salaries of Indians working in the Russian Embassy in India

Will the following be included in the domestic product of India? Give reasons for your answer.

Profit earned by a branch of State Bank of India in Japan

Calculate (a) National Income, and (b) Net National Disposable Income:

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