Board Paper of Class 12-Commerce 2020 Economics Delhi(Set 1) - Solutions

• Question 1
  To reduce credit availability in the economy, the Centrla Bank may ________.

  (Choose the correct alternative)

  (a) buy securities in the open market.
  (b) sell securities in the open market.
  (c) reduce reserve ratio.
  (d) reduce repo rate.

  VIEW SOLUTION

• Question 2
  _________ deficit includes interest payment by the Government on the past loans.

  (Fill up the blanks with correct answer.

  VIEW SOLUTION

• Question 3
  State, whether the following statement is true or false:
  'Inventory is a stock variable.' VIEW SOLUTION

• Question 4
  Which of the following is not a 'factor payment?

  (Choose the correct alternative)

  (a) Free uniform to defence personnel.
  (b) Salaries to the Members of Parliament.
  (c) Rent paid to the owner of a building.
  (d) Scholarship given to the students. VIEW SOLUTION

• Question 5
  In case of an underemployment equilibrium, which of the following alternative is not true?

  (Choose the correct alternative)

  (a) Aggregate demand is equal to Aggregate supply.
  (b) There exist excess production capacity in the economy.
  (c) Resources are not fully and efficiently utilised.
  (d) Resources are fully and efficiently utilised. VIEW SOLUTION

• Question 6
  State, whether the following statement is true or false : ‘All financial Institutions are banking institutions.' VIEW SOLUTION

• Question 7
  Combined factor income, which can't be separated into various factor income components is known as ____________.

  (Fill up the blanks with correct answer).

  VIEW SOLUTION

• Question 8
  If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ₹ 250 crores, then the final change in income would be ___________.

  (Choose the correct alternative)

  (a) ₹ 1,000 crores
  (b) ₹ 1,200 crores
  (c) ₹ 500 crores
  (d) ₹ 3,500 crores VIEW SOLUTION

• Question 9
  Define the term 'Public Goods'. VIEW SOLUTION

• Question 10
  Net Domestic Fixed Capital Formation + Change in Stock = ________.

  (Fill up the blank with correct answer)

  
  

  OR

  
  When Nominal Gross Domestic Product (GDP) is ₹ 840 crores and price Index is 120, then the Real Gross Domestic Product (GDP) will be __________.

  (Fill up the blank with correct alternative)

  (a) ₹ 700 crores
  (b) ₹ 900 crores
  (c) ₹ 800 crores
  (d) ₹ 500 crores VIEW SOLUTION

• Question 11
  'Subsidies to the producers should be treated as transfer payments.' Defend or refute the given statement with valid reason.
  

  OR

  
  Explain circular flow of income in a two sector economy. VIEW SOLUTION

• Question 12
  Calculate Gross Value Added at Market Price:
   

  S. No.	Particulars	(₹ in lakh)
  (i)	Depreciation	20
  (ii)	Domestic Sales	200
  (iii)	Change in Stocks	(–)10
  (iv)	Exports	10
  (v)	Single use producer goods	120

  VIEW SOLUTION

• Question 13
  'Taxation is an effective tool to reduce the inequalities of income.' Justify the given statement with valid reasons. VIEW SOLUTION

• Question 14
  In the given figure, what does the gap 'KT' represent ? State any two fiscal measures to correct the situation.
  
  
  

  OR

  
  Explain how the 'Reverse Repo Rate' helps in correcting excess demand. VIEW SOLUTION

• Question 15
  Discuss the function of Central bank as 'Banker, Agent and Advisor' to the Government. VIEW SOLUTION

• Question 16
  (a) Differentiate between the concepts of 'demand of domestic goods and services' and 'domestic demand for goods and services'.

  (b) Distinguish between 'Current Account Deficit' and 'Current Account Surplus'.

  VIEW SOLUTION

• Question 17
  Answer the following questions based on the data given below :

  (i) Planned Investments = ₹ 100 crore.
  (ii) C = 50 + 0.50 Y

  (a) Determine the equilibrium level of income.
  (b) Calculate the value of Savings at equilibrium level of National Income.
  (c) Calculate the value of Investment Multiplier.
  

  OR

  
  Discuss the working of the adjustment mechanism in the following situations :
  (a) If Aggregate demand is greater than Aggregate supply.
  (b) If Ex-Ante Investments are less than Ex-Ante Savings. VIEW SOLUTION

• Question 34
  Critically examine the results of Poverty Alleviation Programmes implemented in India since Independence.
  

  OR

  
  (a) “Ujjawala Yojana has been a game changer for rural India.” State any three conventional fuels being targeted under the Ujjawala Yojana.
  (b). “Economists believe that India should spend atleast 6% of its GDP on Education for achieving desired results."
  Justify the statement with valid reasons. VIEW SOLUTION