question paper and solution EKO 12
- 1. Stani Memorial Public School Phagi Half yearly Examination -2018 Subject: Economics Class 12th Time:3 hours M.M 80 Roll No………………………. Day & Date…………………………….. Inv. Sign…………………… Instructions: 1.All question are compulsory to attempt 2.All question should be answered in appropriate words and languages . 3.If any inappropriateness will bring deduction of marks. Part A -Micro Economics Q.1.Define the GiffinGoods. (1) Q.2The bestundisputedexampleof intermediary goodis (a)VolkswagenCar (b) MilkCream (1) (c)CausticSoda (d) Iron rod Q.3.Whichis not the central economyproblem. (a) What to produce (b)How toproduce (1) (c ) Whomto produce (d) Where to produce. Q.4.Shiftingof PPCto leftmeans: (a) Mis-use of resources (b) Bestuse of labor (1) (c ) Use of besttechnique (d) Smart machinery Q5. “Providingsubsidyisanextraburdentothe governmentexchequer”comment (3) Q.6.Opportuntycostrefersonlytoimplicitcostsof production .Doyou agree ? Give reasonsinsupport of youranswer. (3) Q.7I f anycountry wantsto produce anythingithasto face some basicproblemsfromeconomicspoint of views.Detailoutthese problem. (3) Q.8 “Make inIndia”campaigninitiatedbyPrime ministerMr NarenderModi hasshiftedthe PPCcurve to the right .Doyou supportthe statementif yes,How & Why? (3)
- 2. Q.9 Rahul isstarving,he asksher wife toprepare foodforhim, his wife cooked7(cabbage parathas) Oh! Butwhat I see aftereatingeverynextunithe wasnotas interestedtoeatasit wason the firstone, whatconcept doyou see inthe above situationexplainwithexample anddiagram. (4) Q.10 Explainthe lawof diminishingmarginalutilitywiththe helpof total utilityschedule. (4) Q.11 Income effectispositive butnotalways.Commentwithanillustration. (4) Q.12.ExplainConsumer’sEquilibriumincase of a single commoditywiththe helpof utilityschedule.(6) Q.13 Explainwhyanindifference curve isconvex tothe origin? (6) Part B -Macro Economics Q.14.Demand depositincludes (choose the correctalternative) (1) (a)Savingaccountdepositandfixeddeposit (b)Savingaccountdepositandcurrentaccountdeposit (c )Currentaccountdepositandfixeddeposit (d) all typesof deposit Q.15 Define marginal propensitytoconsume. (1) Q.16 What do youmeanby Inflation.? (1) Q.17Explainwiththe helpof example,the basisof classifyinggoodsintofinal goodsandintermediate goods. (3) Q.18 Explain“difficultyinstoringwealth”inthe bartersystemof exchange. (3) Q.19 Explaindifferencebetweendirectandindirecttaxes.Giveanexample of each. (3) Q.20 An economyisinequilibrium.Fromthe followingdatacalculate the marginal propensitytosave: (a)Income=10000 (3) (b)Autonomousconsumption =500 ( c)Consumptionexpenditure=8000 Q.21.Explainthe creditcreationbycommercial bankswithperfectexample. (3) Q.22 Explainthe precautionthatshouldbe takenwhileestimatingnational income byexpenditure method.
- 3. Q.23 Aneconomyisin equilibrium.Fromthe followingdatacalculate investmentexpenditure.(4) (i)Marginal propensitytoconsume =0.9 (ii)Autonomousconsumption=200 (iii) Levelof Income=10,000 Q.24 Will the followingbe includedinthe domesticproductof India?Give reasonsforyour answer(4) (a) ProfitsearnedbyforeigncompaniesinIndia. (b)Salariesof Indianworkinginthe RussianEmbassyinIndia. Q.25How will “Reverse RepoRate”and“openmarketoperationcontrol excessmoneysupplyinan economy? (4) Q.26 In an economy,consumptionfunctionisgivenasC=100+0.5Y,when C=consumptionandY isthe level of income .Withthe helpof anumerical example prove that: (4) (i)APCfallswithaincrease inincome (ii)MPCremainsconstant. Q.27 (i) Define externality (2) (ii)Findoutnational income fromfollowingusing expendituremethod . (4) (i) Currenttransferfromrestof the world 50 (ii) NetIndirecttaxes 100 (iii) Netexports -25 (iv) Rent 90 (v) Private final consumption expenditure 900 (vi) Netdomesticcapital formation 200 (vii) Compensationof employees 500 (viii) Netfactor income fromabroad -10 (ix) Governmentfinal consumptionexpenditure 400 (x) Profit 220 (xi) Mixedincome of self employed 400 (xii) Interest 230
- 4. Solution eko H.Y 2018-19 1. Giffin goods where demand are not affected by the fluctuation of prices. 2 C 3 D 4 A 5 In fact it is an extra burden because it does not reach to the target group, generally it is given for encouraging people to use new technology etc. https://www.studyrankers.com/2015/04/indian-economy-1950-1990-class-11th-ncert- solutions.html(Q.14 check detailed ans) 6 In microeconomic theory, the opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice in terms of the best alternative while making a decision. A choice needs to be made between several mutually exclusive alternatives; assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would have been had by taking the second best available to the consumer. 7 explain basic problem three of economic 8.certainly it will shift PPC on right it it will provide more employment and generate more revenue and higher GDP. 9 Explanation With Schedule and Diagram: We assume that a man is very hungry. He takes the paratha successively. The marginal utility of the successive paratha decreases, ultimately, he reaches the point of satiety. After this point the marginal utility becomes negative, if he is forced further to take next unit. The behavior of the consumer is indicated in the following schedule: Units of commodity Marginal utility Total utility 1 10 10 2 8 18 3 6 24 4 4 28 5 2 30 6 0 30 7 -2 28 On taking the 1st glass of water, the consumer gets 10 units of utility, because he is very thirsty. When he takes 2nd paratha, his marginal utility goes down to 8 units because his hunger has been partly satisfied. This process continues until the marginal utility drops down to zero which is the saturation point. By taking the seventh parataha r, the marginal utility becomes negative because the hunger of the consumer has already been fully satisfied. The law of diminishing marginal utility can be explained by the following diagram drawn with the help of above schedule: