2nd - Kopykitab
16
Transcript of 2nd - Kopykitab
GENERAL INSTRUCTIONS:-
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions no 1-5 and 16-20 are very short answer type questions carrying 1
mark each.
4. Questions no 6-8 and 21-23 are short answer type questions carrying 3
marks each. Answers to them should normally not exceed 60 words each.
5. Questions no 9-11 and 24-26 are also short answer questions carrying 4
marks each. Answers to them should normally not exceed 70 words each.
6. Questions no 12-15 and 27-30 are long answer questions carrying 6 marks
each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limit should
be adhered to as far as possible.
S E C T I O N – A
1.Micro economics studies the economic behavior of 1M
a. Economy as a whole
b. Individual economic units
d. World economy
a.
b.
c.
d.
2 .Say true or false 1 M
The problem of “how to produce “involves the choice between consumer goods and capital goods.
3. When all the inputs used in production of a good are increased simultaneously in the same proportion , that production function is known as 1 M a. Law of Variable proportions
b. Law of returns to scale
c. Law of returns to a factor
d. Its not a production function
)
)
)
)
4. Shantha Bio Tech Company came out with a new vaccination to prevent “Ebola Virus”. The company alone enjoys an exclusive right to produce the vaccination. This right is known as 1 M
a. Fundamental right
b. Human right
c. Patent right
d. RTI
)
3
a The maximum price fixed above the equilibrium price
b Minimum price fixed below the equilibrium price
c Equal to the equilibrium price
d None
)
)
)
)
6. When the price of a commodity falls by 80%, the quantity demanded of it increases by 100 %. Find out its price elasticity of demand. 3M
80%, 100 %.
7. A consumer consumes only two goods X & Y and is in equilibrium. Show that when the price of good X falls, the consumer buys more of good X. Use utility ]analysis. 3 M
x y x
x .
OR
Given the price of a good how will a consumer decide as to how much quantity of that good to buy? Use utility analysis.
? 8. From the following table calculate Average revenue at each level of output. 3 M
Output 1 2 3 4
Marginal revenue 6 4 2 0
4
1 2 3 4
6 4 2 0
9. Distinguish between change in quantity demanded and change in demand. Which of these causes a shift of the demand curve ? 4 M
Or
Explain the inverse relationship between price and the quantity demanded of a commodity.
?
10. Draw a PPC and show the following situations. 4 M a. All the land resources are used.
b. Government started promoting foreign capital.
c. Some of the labor force remaining unemployed.
d. Destruction of resources in the recent natural calamity.
)
)
)
)
11. To what extent can a firm influence the price under a) Perfect competition b) Monopolistic competition
C) Monopoly d) Oligopoly 4 M
OR
5
i) Non price competition
ii) Few firms
?
) )
) )
-
i)
ii)
12. Define market supply. What is the effect on the supply of a good?
a) When the government imposes a tax on the production of that good
b) When the government gives a subsidy. Explain using a diagram. 6 M
)
) ? 13. Explain why is an indifference curve
a) Downward sloping b) Convex to the origin 6 M
OR
Explain the concept of MRS with the help of a numerical example. Also explain its behavior along an indifference curve.
)
)
6
14. What is producers equilibrium? Explain the conditions of producers equilibrium through MC-MR approach when price remains the same at all levels of output. Use a diagram. 6 M
?,
15. If equilibrium price of a good is less than its market price, explain all the changes that will take place in the market. Use a diagram. 6 M
, ?
S E C T I O N - B
16. If MPC =1 the value of the multiplier is 1 M
a) 0 b) 1 c) between 0 and 1 d) All of the above
= ,
) 0 ) 1 ) 0 1 )
17. APC = 1 when 1M
a) C > Y b) C=Y c) C < Y d) C = 0
=1 „
) C > Y ) C=Y ) C < Y ) C = 0
18. which of the following is not an indirect tax 1 M
a) Corporate tax b) VAT c) service tax d) excise duty
) ) ) )
19. Disinvestment is a 1 M
a) capital receipt b) revenue expenditure
c) budget expenditure d) direct tax
7
) ) ) ) 20. Say true or false. 1 M
Appreciation of Indian rupee will occur when Rs 66 have to be paid to exchange one US dollar instead of Rs 40.
40 66
21. Explain how “distribution of GDP “is limitation in taking GDP as an index of welfare.
3 M
„ „
22. Which transaction determine the BOT? When is BOT in surplus? 3 M
? ?
23. When the price of a foreign currency rises, its demand falls. Explain why? 3M
OR
When the price of a foreign currency rises its supply also rises. Explain why?
24. A farmer wants to exchange his wheat for cricket bats. What problems he may face in this transaction, and how can he overcome them? 4 M
- ?
25. In an economy the MPC = 0.75. Investment expenditure in the economy increases by Rs 75 Crores. Calculate the total increase in national income. 4 M
8
OR
Define Investment multiplier and explain its working with a help of table
0.75 . 75 .
26. What is excess demand? Explain the role of Repo rate in removing it. 4M
?
27 Explain the re-allocation of resources objective of Government budget.
Tax rates on higher income groups have been increasing. Which economic value does it reflect? Explain using examples. 6 M
?
28. When is an economy in equilibrium? Explain with the help of saving and
investment functions. Also explain the changes that takes place in an economy when
economy is not in equilibrium. Use diagram or a table. 6 M
? „ ?
29. How will you treat the following while estimating national income of India? Give reasons for your answer. 6 M
I) Dividend received by a foreigner from investment in share of an Indian company.
II) Profits earned by a branch of an Indian bank in Canada.
III) Scholarship given to Indian students, studying in India by a foreign company.
OR
9
Explain the problem of double counting in estimating the national income with help of an example. Also explain two alternative ways of avoiding the problem.
?
)
)
)
30. Calculate GNP at MP from the following data. 6 M
( In crores)
(ii) Interest 500
(iii) Rent 700
(iv) Profit 800
(vi) Dividends 300
(vii) CFC 100
(ix) Net export 70
(xi) Mixed income of self-employed 1500
10
( )
(ii) 500
(iii) 700
(iv) 800
(v) 200
(vi) 300
(vii) 100
(viii) 250
(ix) 70
150
(x) - 1500
1
% change in the quantity demanded / % chage in price= ( -) 1.25
In the case of two goods , X and Y , a consumer will be in equilibrium when Mux/Px =MUy/Py -- 1 M When the price of X falls, then rupee worth satisfaction from X will be more than Y. i.e., Mux/Px > MUy/Py ---- 1 M Therefore he will buy more of X and less of Y.This will lead to a fall in the MUx and a rise in MUy. This will continue till Mux/Px = MUy/Py -- 1 M
OR
Based on the principle of MU = P with explanation --- 3 M
Calculation of TR -- 1.5 M Calculation of AR -- 1.5 M
TR AR
6 6
Change in quantity demanded Change in demand
Due to change in price Due to change in factors other than price
Movement along the curve Shift of the curve
Expansion and contraction Increase and decrease
diagram diagram
OR
Due to law of DMU Due to substitution effect Due to price effect Due to income effect -- 1x 4 with explanation
1. Fuller utilization of resources … 1 M 2. Economic growth ... 1M 3. Decrease in resources ... 1 M 4. Under utilization of resources ... 1 M
The above situations to be shown in the PPC with proper labeling and explanation.
a. Uniform price as each firm is a price taker. b. Firm has partial control over price due to product differentiation. c. Firm is a price maker . so price discrimination is possible. d. Price rigidity due to fear of price war. 1 x 4 = 4
or
Collusive oligopoly Non collusive oligopoly
Collusive oligopoly is one in which the firms co- operate with each other. Price rigidity is observed.
Non collusive oligopoly is one in which firms compete with each other.
……………………… …………..2m
price competition : The firms are afraid of competition through lowering the price because it may start price war. Therefore they compete the non price factors like advertising, after sale service etc.
Few firms: There are few sellers of the commodity and each seller sells a substantial portion of the output of the industry. The number of firms is so small that each seller knows that he can
3
12
13
influence the price by his own action and that he can provoke rival firms to react. ……………………………………………..2m
Market supply refers to quantity of commodity that the firms are willing to offer for sale at a given price during given period of time. ………………1m Rise in taxes increases the cost of production and reduces the profit margin. As a result supply falls from OQ to OQ1 at the same price OP. It leads to a leftward shift in the supply curve from SS to S1S1
a) Slopes downwards :- It means that an IC has a negative slope. It is because if the consumer wants to have more units of one good he will have to sacrifice the consumption of number of units of another good in order to maintain the same level of satisfaction. 3 b) It is convex to the origin because of diminishing MRS or slope of IC. In order to gain an additional unit of good 1 , the consumer is prepared to give up less and less units of good 2. in good2
MRSxy =
in good 1 3
Or MRS means the rate at which a consumer will sacrifice one good to get another good so as to maintain the same level of satisfaction. 1
bundles good1 good2 MRS
4
14
15
explanation 2m .A producer is said to be in equilibrium when he produces that level of output at which his profits are maximum 1m Producer’s equilibrium is determined at OM level of output , as at this point i) MC= MR ii) MC > MR after MC = MR output. III) MC cuts MR from below. 3m Diagram wih explanation. 2m
1. OP * is the equilibrium price and OP 2 is the market price. At OP2 price there is excess supply .
2. Excess supply is that supply of that commodity, which is greater than that the consumers are willing to demand at a given price. In the above diagram
OQ s (quantity supplied) > OQ d (quantity demanded)
3. This will result in competition among the sellers to clear of their stock and the price falls.
4. This process continues till the price reaches OP * from OP 2 Diagram 2 M + Explanation 4 M
CBSE Pre Board Set-II Solved Question Paper Class XII Economics
Publisher : Faculty Notes Author : Panel Of Experts
Type the URL : http://www.kopykitab.com/product/9723
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions no 1-5 and 16-20 are very short answer type questions carrying 1
mark each.
4. Questions no 6-8 and 21-23 are short answer type questions carrying 3
marks each. Answers to them should normally not exceed 60 words each.
5. Questions no 9-11 and 24-26 are also short answer questions carrying 4
marks each. Answers to them should normally not exceed 70 words each.
6. Questions no 12-15 and 27-30 are long answer questions carrying 6 marks
each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limit should
be adhered to as far as possible.
S E C T I O N – A
1.Micro economics studies the economic behavior of 1M
a. Economy as a whole
b. Individual economic units
d. World economy
a.
b.
c.
d.
2 .Say true or false 1 M
The problem of “how to produce “involves the choice between consumer goods and capital goods.
3. When all the inputs used in production of a good are increased simultaneously in the same proportion , that production function is known as 1 M a. Law of Variable proportions
b. Law of returns to scale
c. Law of returns to a factor
d. Its not a production function
)
)
)
)
4. Shantha Bio Tech Company came out with a new vaccination to prevent “Ebola Virus”. The company alone enjoys an exclusive right to produce the vaccination. This right is known as 1 M
a. Fundamental right
b. Human right
c. Patent right
d. RTI
)
3
a The maximum price fixed above the equilibrium price
b Minimum price fixed below the equilibrium price
c Equal to the equilibrium price
d None
)
)
)
)
6. When the price of a commodity falls by 80%, the quantity demanded of it increases by 100 %. Find out its price elasticity of demand. 3M
80%, 100 %.
7. A consumer consumes only two goods X & Y and is in equilibrium. Show that when the price of good X falls, the consumer buys more of good X. Use utility ]analysis. 3 M
x y x
x .
OR
Given the price of a good how will a consumer decide as to how much quantity of that good to buy? Use utility analysis.
? 8. From the following table calculate Average revenue at each level of output. 3 M
Output 1 2 3 4
Marginal revenue 6 4 2 0
4
1 2 3 4
6 4 2 0
9. Distinguish between change in quantity demanded and change in demand. Which of these causes a shift of the demand curve ? 4 M
Or
Explain the inverse relationship between price and the quantity demanded of a commodity.
?
10. Draw a PPC and show the following situations. 4 M a. All the land resources are used.
b. Government started promoting foreign capital.
c. Some of the labor force remaining unemployed.
d. Destruction of resources in the recent natural calamity.
)
)
)
)
11. To what extent can a firm influence the price under a) Perfect competition b) Monopolistic competition
C) Monopoly d) Oligopoly 4 M
OR
5
i) Non price competition
ii) Few firms
?
) )
) )
-
i)
ii)
12. Define market supply. What is the effect on the supply of a good?
a) When the government imposes a tax on the production of that good
b) When the government gives a subsidy. Explain using a diagram. 6 M
)
) ? 13. Explain why is an indifference curve
a) Downward sloping b) Convex to the origin 6 M
OR
Explain the concept of MRS with the help of a numerical example. Also explain its behavior along an indifference curve.
)
)
6
14. What is producers equilibrium? Explain the conditions of producers equilibrium through MC-MR approach when price remains the same at all levels of output. Use a diagram. 6 M
?,
15. If equilibrium price of a good is less than its market price, explain all the changes that will take place in the market. Use a diagram. 6 M
, ?
S E C T I O N - B
16. If MPC =1 the value of the multiplier is 1 M
a) 0 b) 1 c) between 0 and 1 d) All of the above
= ,
) 0 ) 1 ) 0 1 )
17. APC = 1 when 1M
a) C > Y b) C=Y c) C < Y d) C = 0
=1 „
) C > Y ) C=Y ) C < Y ) C = 0
18. which of the following is not an indirect tax 1 M
a) Corporate tax b) VAT c) service tax d) excise duty
) ) ) )
19. Disinvestment is a 1 M
a) capital receipt b) revenue expenditure
c) budget expenditure d) direct tax
7
) ) ) ) 20. Say true or false. 1 M
Appreciation of Indian rupee will occur when Rs 66 have to be paid to exchange one US dollar instead of Rs 40.
40 66
21. Explain how “distribution of GDP “is limitation in taking GDP as an index of welfare.
3 M
„ „
22. Which transaction determine the BOT? When is BOT in surplus? 3 M
? ?
23. When the price of a foreign currency rises, its demand falls. Explain why? 3M
OR
When the price of a foreign currency rises its supply also rises. Explain why?
24. A farmer wants to exchange his wheat for cricket bats. What problems he may face in this transaction, and how can he overcome them? 4 M
- ?
25. In an economy the MPC = 0.75. Investment expenditure in the economy increases by Rs 75 Crores. Calculate the total increase in national income. 4 M
8
OR
Define Investment multiplier and explain its working with a help of table
0.75 . 75 .
26. What is excess demand? Explain the role of Repo rate in removing it. 4M
?
27 Explain the re-allocation of resources objective of Government budget.
Tax rates on higher income groups have been increasing. Which economic value does it reflect? Explain using examples. 6 M
?
28. When is an economy in equilibrium? Explain with the help of saving and
investment functions. Also explain the changes that takes place in an economy when
economy is not in equilibrium. Use diagram or a table. 6 M
? „ ?
29. How will you treat the following while estimating national income of India? Give reasons for your answer. 6 M
I) Dividend received by a foreigner from investment in share of an Indian company.
II) Profits earned by a branch of an Indian bank in Canada.
III) Scholarship given to Indian students, studying in India by a foreign company.
OR
9
Explain the problem of double counting in estimating the national income with help of an example. Also explain two alternative ways of avoiding the problem.
?
)
)
)
30. Calculate GNP at MP from the following data. 6 M
( In crores)
(ii) Interest 500
(iii) Rent 700
(iv) Profit 800
(vi) Dividends 300
(vii) CFC 100
(ix) Net export 70
(xi) Mixed income of self-employed 1500
10
( )
(ii) 500
(iii) 700
(iv) 800
(v) 200
(vi) 300
(vii) 100
(viii) 250
(ix) 70
150
(x) - 1500
1
% change in the quantity demanded / % chage in price= ( -) 1.25
In the case of two goods , X and Y , a consumer will be in equilibrium when Mux/Px =MUy/Py -- 1 M When the price of X falls, then rupee worth satisfaction from X will be more than Y. i.e., Mux/Px > MUy/Py ---- 1 M Therefore he will buy more of X and less of Y.This will lead to a fall in the MUx and a rise in MUy. This will continue till Mux/Px = MUy/Py -- 1 M
OR
Based on the principle of MU = P with explanation --- 3 M
Calculation of TR -- 1.5 M Calculation of AR -- 1.5 M
TR AR
6 6
Change in quantity demanded Change in demand
Due to change in price Due to change in factors other than price
Movement along the curve Shift of the curve
Expansion and contraction Increase and decrease
diagram diagram
OR
Due to law of DMU Due to substitution effect Due to price effect Due to income effect -- 1x 4 with explanation
1. Fuller utilization of resources … 1 M 2. Economic growth ... 1M 3. Decrease in resources ... 1 M 4. Under utilization of resources ... 1 M
The above situations to be shown in the PPC with proper labeling and explanation.
a. Uniform price as each firm is a price taker. b. Firm has partial control over price due to product differentiation. c. Firm is a price maker . so price discrimination is possible. d. Price rigidity due to fear of price war. 1 x 4 = 4
or
Collusive oligopoly Non collusive oligopoly
Collusive oligopoly is one in which the firms co- operate with each other. Price rigidity is observed.
Non collusive oligopoly is one in which firms compete with each other.
……………………… …………..2m
price competition : The firms are afraid of competition through lowering the price because it may start price war. Therefore they compete the non price factors like advertising, after sale service etc.
Few firms: There are few sellers of the commodity and each seller sells a substantial portion of the output of the industry. The number of firms is so small that each seller knows that he can
3
12
13
influence the price by his own action and that he can provoke rival firms to react. ……………………………………………..2m
Market supply refers to quantity of commodity that the firms are willing to offer for sale at a given price during given period of time. ………………1m Rise in taxes increases the cost of production and reduces the profit margin. As a result supply falls from OQ to OQ1 at the same price OP. It leads to a leftward shift in the supply curve from SS to S1S1
a) Slopes downwards :- It means that an IC has a negative slope. It is because if the consumer wants to have more units of one good he will have to sacrifice the consumption of number of units of another good in order to maintain the same level of satisfaction. 3 b) It is convex to the origin because of diminishing MRS or slope of IC. In order to gain an additional unit of good 1 , the consumer is prepared to give up less and less units of good 2. in good2
MRSxy =
in good 1 3
Or MRS means the rate at which a consumer will sacrifice one good to get another good so as to maintain the same level of satisfaction. 1
bundles good1 good2 MRS
4
14
15
explanation 2m .A producer is said to be in equilibrium when he produces that level of output at which his profits are maximum 1m Producer’s equilibrium is determined at OM level of output , as at this point i) MC= MR ii) MC > MR after MC = MR output. III) MC cuts MR from below. 3m Diagram wih explanation. 2m
1. OP * is the equilibrium price and OP 2 is the market price. At OP2 price there is excess supply .
2. Excess supply is that supply of that commodity, which is greater than that the consumers are willing to demand at a given price. In the above diagram
OQ s (quantity supplied) > OQ d (quantity demanded)
3. This will result in competition among the sellers to clear of their stock and the price falls.
4. This process continues till the price reaches OP * from OP 2 Diagram 2 M + Explanation 4 M
CBSE Pre Board Set-II Solved Question Paper Class XII Economics
Publisher : Faculty Notes Author : Panel Of Experts
Type the URL : http://www.kopykitab.com/product/9723
