# Solved papers for 12th Class Economics Solved Paper - Economics 2012 Delhi Set-I

### done Solved Paper - Economics 2012 Delhi Set-I

• question_answer1) Give meaning of an Economy.

• question_answer2) What is market demand?

• question_answer3) What is behaviour of average fixed cost as output increases?

• question_answer4) What is the behaviour of average revenue in a market in which a firm can sell more only by lowering the price?

• question_answer5) What is a price taker firm?

• question_answer6) Given price of a goods, how does a consumer decide as to how much of the good to buy?

• question_answer7) Draw Average Variable Cost, Average Total Cost and Marginal Cost curves in a single diagram.

• question_answer8) An individual is both the owner and the manager of a shop taken on rent. Identify implicit cost and explicit cost from this information. Explain.

 Explain the implication of large number of sellers in a perfectly competitive market. Or Explain why firms are mutually interdependent in an oligopoly market.

• question_answer10) Define an indifference curve. Explain why an indifference curve is downward sloping from left to right.

• question_answer11) When price of good is Rs. 7 per unit a consumer buys 12 units. When price falls to Rs. 6 per unit he spends Rs. 72 on the good. Calculate price elasticity of demand by using the percentage method. Comment on the likely shape of demand curve based on this measure of elasticity.

 What does the Law of variable Proportions show? State the behaviour of total product according to this law. Or Explain how changes in prices of other products influence the supply of a given product.

 Explain how do the following influence demand for a good: (i) Rise in income of the consumer. (ii) Fall in prices of the related goods.

• question_answer14) Explain the conditions of a producer's equilibrium in terms of marginal cost and marginal revenue. Use diagram.

 Market for a good is in equilibrium. There is simultaneous 'increase' both in demand and supply of the good. Explain its effect on market price. Or Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply of the good. Explain its effect on market price.

• question_answer18) What are demand deposits?

• question_answer20) Give meaning of managed floating exchange rate.

 Calculate Gross Value Added at Factor Cost: (i) Units of output sold (units) 1,000 (ii) Price per unit of output (Rs.) 30 (iii) Depreciation (Rs.) 1,000 (iv) Intermediate cost (Rs.) 12,000 (v) Closing stock (Rs.) 3,000 (vi) Opening stock (Rs.) 2,000 (vii) Excise (Rs.) 2,500 (viii) Sales tax (Rs.) 3,500

• question_answer22) Outline the steps taken in deriving saving curve from the consumption curve. Use diagram.

 Find national income from the following: Autonomous consumption =Rs 100 Marginal propensity to consume =0.80 Investment =Rs. 50

 Distinguish between Revenue Expenditure and Capital Expenditure in a government budget. Give examples. Or Explain the role of Government budget in allocation of resources.

 Giving reason explain how should the following be treated in estimating national income: (i) Expenditure on fertilizers by a farmer. (ii) Purchase a tractor by a farmer.

 Explain the components of Legal Reverse Ratio. Or Explain 'bankers' banks function of Central bank.

• question_answer27) Explain 'revenue deficit in a Government budget? What does it indicate?

 Find out (a) National income: (Rs. crores) (i) Factor income from abroadt 15 (ii) Private Final Consumption Expenditure 600 (iii) Consumption of fixed capital 50 (iv) Government Final Consumption 200 (v) Net current transfers to abroad (-) 5 (vi) Net domestic fixed capital formation 110 (vii) Net factor income to abroad 10 (viii) Net imports (-) 20 (ix) Net indirect tax 70 (x) Change in stocks (-) 10

 Explain the concept of excess demand? in macroeconomics. Also explain the role of open market operations in correcting it. Or Explain the concept of 'deficient demand' in macroeconomics. Also explain the role of bank Rate in correction it.

• question_answer30) Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments 'deficit' in this context.

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