Board Paper of Class 12-Commerce 2011 Economics (SET 1) - Solutions
General Instructions
1) This question paper contains two sections: A and B.
2) There are 9 questions in total.
Section A
i. This section contains 1 question with fifteen sub-parts.
ii. Question No. 1 is compulsory.
iii. Attempt all the sub-parts of 2 marks each.
iv. This section is of 30 marks in total.
Section B
i. This section consists of 8 questions of 14 marks each.
ii. Attempt any 5 questions from question nos. 2 to 9.
iv. This whole section is of 70 marks in total.
- Question 1
Answer briefly each of the questions (i) to (xv) : [15 × 2] = [30 Marks] (i) State any two assumption of Law of the Diminishing Marginal Utility. (ii) What is meant by macro economics ? (iii) If demand increases by 50% due to an increase in income by 75%, calculate the income elasticity of demand. (iv) Draw the supply curve of a perishable commodity. Give a reason for the shape of the supply curve. (v) What is meant by increasing returns to a variable factor ? (vi) What would be the elasticity of demand of a commodity when : (a) Price and total expenditure move in the same direction ? (b) Price and total expenditure move in the opposite direction ? (vii) Identify the type of market which has a characteristic of perfect substitutes. Give one reason for your answer. (viii) What is meant by super normal profit ? (ix) How is personal income calculated from private income ? (x) What is variable cost ? Give two examples. (xi) Differentiate between economic and non-economic services. (xii) Is deficit financing inflationary ? Justify your answer. (xiii) What is a trade union ?** (xiv) How can an increase in public expenditure create more employment in the country ?** (xv) What is meant by unfavourable balance of payment ?.