Class 12th economics important questions

Class 12th Economics Important Questions

Section A: Microeconomics

Question 1: Define Marginal Physical Product.

(1)

Question 2: Define indifference curve.

(1)

Question 3: When is a consumer said to be rational?

(1)

Question 4: State any one assumption for the construction of the curve that shows the possibilities of potential production of two goods in an economy.

(1)

 

Question 5: Discuss the primary reason for ‘indeterminateness of demand curve’ under the oligopoly form of market.

(3)

Question 6: Difference between substitute goods and complementary goods

(3)

Question 7: (a) Arrange the following coefficients of price elasticity of demand in ascending order: ‒ 0.7, ‒ 0.3, ‒ 1.1, ‒ 0.8

(b) Comment upon the degree of elasticity of demand for Good X, using the total outlay method, if the price of X falls from Rs. 18 per unit to Rs. 13 per unit and its quantity demanded rises from 50 units to 100 units.

(4)

Question 8: How is the price of a commodity determined in a perfectly competitive market? Explain with help of a diagram.

(4)

OR

Question 8: Explain how the following factors affect the supply of the commodity (any two)

 (a) Price of factor inputs (b) State of technology (c) Government taxation Policy

(4)

Question 9: Identify which of the following is not true for the Indifference Curves. Give valid reasons for choice of your answer:

(a) Lower indifference curve represents lower level of satisfaction.

(b) Two regular convex to origin indifference curves can intersect each other.

(c) Indifference curve must be convex to origin at the point of tangency with the budget line at the consumer’s equilibrium.

(d) Indifference curves are drawn under the ordinal approach to consumer equilibrium

(4)

Question 10: (a) Why is Total Variable Cost curve inverse S- shaped?

(b) What is Average Fixed Cost of a firm? Why is an Average Fixed Cost Curve a rectangular Hyperbola? Explain with help of a diagram.

(6)

OR

Question 10: Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

Qd = 200 –10p Qs = 50 + 15p

(i) Find the equilibrium price and equilibrium quantity of commodity X.

(ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 100 + 15p

Analyse the new equilibrium price and new equilibrium quantity

(6)

Question 11: (a) Why is Total Variable Cost curve inverse S- shaped?

(b) What is Average Fixed Cost of a firm? Why is an Average Fixed Cost Curve a rectangular Hyperbola? Explain with help of a diagram.

OR

Question 11: (a) A consumer, Mr Aman is in state of equilibrium consuming two goods X and Y, with given prices Px and Py . What will happen if ?

(b) Identify which of the following is not true for the Indifference Curves theory. Give valid reasons for choice of your answer

(6)

Question 12: Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

 Qd = 200 –10p Qs = 50 + 15p

(i) Find the equilibrium price and equilibrium quantity of commodity X.

(ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 100 + 15p

Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

(6)

Section B: Macroeconomics

Question 13: The value of multiplier is: (choose the correct alternative)

(1)

Question 14: What is ‘aggregate demand’ in macroeconomics?

(1)

Question 15: Define the capital receipts of a government

(1)

Question 16: Define nominal flow.

(1)

Question 17: Explain how ‘Depreciation of currency’ promotes exports of a country?

(3)

Question 18: Name the broad categories of transactions recorded in the 'capital account' of the Balance of Payments Accounts.

(3)

Question 19: How will ‘Reverse Repo Rate’ and ‘Open Market Operations’ control excess money supply in an economy? (4)

Question 20: What is ‘deficient demand’? Explain the role of ‘Bank Rate’ in removing it.

(4)

Question 21: How does money fulfill the short comings of Barter system?

(4)

OR

Question 21: Explain any two main functions of money.

(4)

Question 22: Explain the concept of Inflationary Gap. Explain the role of Repo Rate in reducing this gap.

(6)

OR

Question 22: Explain the concept of Deflationary Gap and the role of 'Open Market Operations' in reducing this gap.

(6)

Question 23: Explain the role of government budget in fighting inflationary and deflationary tendencies.

(6)

Question 24: Giving reason explain how the following should be treated in estimation of national income:

(i) Payment of interest by a firm to a bank

(ii) Payment of interest by a bank to an individual

(iii) Payment of interest by an individual to a bank

(6)