Board Paper of Class 12-Commerce 2020 Economics Delhi(Set 2) - Solutions

• Question 1
  _________ deficit includes interest payment by the Government on the past loans.

  (Fill up the blanks with correct answer.

  VIEW SOLUTION

• Question 2
  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 3
  State, whether the following statement is true or false:
  ‘Purchase of machinery by a producer is an intermediate good.' VIEW SOLUTION

• Question 4
  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 5
  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 6
  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 7
  State, whether the following statement is true or false : ‘All financial Institutions are banking institutions.' VIEW SOLUTION

• Question 8
  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 9
  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 10
  Which of the following statement is incorrect ?
  (a) Gross Domestic Product (GDP) at Market price = GDP at factor cost plus Net Indirect taxes.
  (b) Net National product (NNP) at Market price = (NNP) at factor cost.
  (c) Gross National Product (GNP) at Market price = GDP at Market price Plus Net factor income from abroad.
  (d) Net National Product (NNP) at factor cost = National Income.
  

  OR

  
  If the Real Gross Domestic Product (GDP) in an economy is ₹ 520 crores and Nominal Gross Domestic Product (GDP) is ₹ 650 crores, calculate the price Index. 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 Net Value Added at factor cost from the following data :
   

  	Particulars	(₹ in lakh)
  (i)	Durable producer goods (with a life span of 10 years)	10
  (ii)	Single use producer goods	5
  (iii)	Sales	20
  (iv)	Unsold Goods (Stock)	2
  (v)	Goods & Services Tax (GST)	1

  VIEW SOLUTION

• Question 13
  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 14
  'Taxation is an effective tool to reduce the inequalities of income.' Justify the given statement with valid reasons. VIEW SOLUTION

• Question 15
  Explain the 'bank of note issue' function of Central Bank. VIEW SOLUTION

• Question 16
  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 17
  (a) 'Recently Indian Rupee (₹) has depreciated significantly. This has lead to distress for Indian importers.' Defend or refute the given statement with valid reasons.
  (b) Distinguish between 'trade deficit' and 'current account deficit'. VIEW SOLUTION