Board Paper of Class 12-Commerce 2009 Economics (SET 1) - Solutions

Give the meaning of opportunity cost.

What is meant by inferior good in economics?

Define marginal cost.

Give one reason for a rightward shift in supply curve.

Why is Average Total Cost greater than average variable cost?

State the law of demand and show it with the help of a schedule.

Explain the geometric method of measuring price elasticity of demand.

Why do problems related to allocation of resources in an economy arise? Explain.

OR

Explain the problem of ‘for whom to produce’.

Complete the following table:

Explain the effect of fall in prices of other goods on the supply of given good.

Explain two points of distinction between monopoly and monopolistic competition.

OR

Explain any two main features of perfect competition.

The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 per cent rise in the price X results in a 40 per cent rise in its supply. If the price of Y falls by 8 per cent, calculate the percentage fall in its supply.

Given below is a cost and revenue schedule of a produce. At what level of output is the producer in equilibrium? Give reasons for your answer.

With the help of a demand and supply schedule, explain the meaning of excess demand and its effect on price of a commodity.

OR

Define equilibrium price of a commodity. How is it determined? Explain with the help of a schedule.

Giving reasons, state whether the following statements are true or false:

(i) Average cost falls only when marginal cost falls.

(ii) The difference between average total cost and average variable cost is constant.

(iii) When total revenue is maximum, marginal revenue is also maximum.

Explain the effect of the following on the market demand of a commodity:

(i) Change in price of related goods

(ii) Change in the number of its buyers