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Economics Revision Paper Class XII

Q1. Define an opportunity cost. (1) Q2. Define equilibrium quantity. (1) Q3. Define Selling Cost. (1) Q4. Draw a demand curve under oligopoly. (1) Q5. What will be the Ed. When DD. Curve is horizontal (1) Q6. Define positive economics. (1) Q7. Explain the law of equi. MU with conditions. (3) Q8. Explain any two determinants of price Ed. (3) Q9. Explain why PPC is concave to the origin. (3) Q10. Define PPC. What causes shift in PPC. (3) Q11. Why does the difference between the ATC & AVC fall as output rises? Explain (3) Q12. Explain the implication of product differentiation under monopolistic competition. (3) Q13. Calculate AFC, AVC & MC- (3)

Output

TC

0 10

1 12

2 15

3 20

4 30

5 50

Q14. Explain the relationship between AR & MR. (3) Q15. How does decrease in income affect for a commodity. (3) Q16.
Price 20 15 Total expenditure 8,000 ?

Ed= (-) 2

(4)

Q17. Compare the revenue curve under monopoly & monopolistic competition. (4) Q18. How does the following affect the supply curve (a) rise in price of input? (b) Goal is to maximize profit. (4) Q19. State the law of DD. Why does it operate ? (4) Q19. Differentiate between change in Q.D & change in demand. (4) Q20. Explain the effect on equilibrium price and qty. when (a) SS decrease for a perfectlycomptt. Firm (b) Commodity is in fashion. (6)

Q21. Why consumer equilibrium is achieved at a point where budget line is tangent to I.C. (6) Q22. Explain any 2 properties of I.C. (6) Q23. Explain law of variable proportion. (6) Q24. Define macro economics (1) Q25. Define current transfers. (1) Q26. Define normal resident. (1) Q27. Can GDP> GNP? (1) Q28. GDPfc =10,000 Net indirect taxes= 500 Net factor income from abroad= (-) 250 Net current transfers from ROW= 300 Consumption of fixed capital= 800 National debt interest=2,000 Calculate national disposable income. (3) Q29. Differentiate between final good and intermediate good. (3)

Q30. Differentiate between nominal national income and real national income. (4) Q31. Explain value added method of calculating national income. Explain income method of calculating national income. (4) Q32. GDPfc= Rs. 60,000 Depreciation= Rs. 3,000 NIT= Rs. 3,000 Corporate Tax= Rs. 5,000 Income from property and entrepreneurship accruing to government= Rs. 6,000 Transfer Payments= Rs. 15,000 Undistributed profits= Rs. 2,500 Direct taxes paid by household= Rs. 3,500 Net current transfers from rest of the world= Rs. 6,000 NFIFA= (-) 5,000 Savings of non-departmental enterprise= Rs. 3,000

Calculate Personal disposable income and net NDY. (6) Q33. Differentiate betweena) Consumer goods & Producer goods. b) Factor Payments and transfer payments. c) Domestic product and national product. (6) Q34. In what sense is a monopolist said to be a price maker? (1) Q35. Define an economic problem. (1) Q36. Define marginal physical product. (1) Q37. When an economy is producing on PPC, what does it indicate? (1) Q38. Define perfect competition. (1) Q39. When TP increases at increasing rate, what happens to MP? (1) Q40. What is production function? Q41. What happens to profits/losses in the long run if firms are free to enter the industry? (1) Q42. Explain three factors which determine price elasticity of demand? (3)

Q43. Explain the relationship between total physical product and marginal physical product. (3) Q44. Distinguish between contraction of demand and the decrease of demand. (3) Q45. What are the three central problems of an economy? (3) Q46. What are the central problems of an economy? (3) Q47. Discuss any three features of perfect competition. (3) Q48. Complete the following table- (3)
Units of output 0 1 2
TC TFC TVC MC

100 120 130

Q49. Elasticity of supply of a commodity is 2, when its price falls from Rs 10 to Rs 8 per unit, its quantity supplied falls by 500 units. Calculate quantity supplied at reduced rate. (3)

Q50. Why does demand curve slopes downward towards right? (4) Q51. Differentiate between perfect competition and monopolistic competition. (4) Q52. Explain the effect of supply shift on the equilibrium price and quantity exchanged. (4) Q53. Explain the effect of Demand shift on the equilibrium price and quantity exchanged. (4) Q54. Explain the effect of fall in price of related goods on demand of a commodity. (4) Q55. Give reasons for the following- (4) a) TVC starts from the point of origin. b) TFC is a straight line parallel to the x-axis. c) Why TC does not start from the point of origin? d) Why the gap between TC and TVCs is constant? Q56. Explain the law of returns to a factor. (6) Q57. Explain the geometric method to measure the elasticity of supply. (6)

Q58. Explain the various degrees of price elasticity of demand. (6) Q59. Explain the total expenditure method of measuring elasticity of demand. Q60. a) Complete the following table- (6)
Price (Rs) 4 1 Output (limits) 1 TR (Rs) 6 MR (Rs) 2 (-2)

b) What happens to average revenue when when marginal revenue is-? a) Less than average revenue. b) Equal to average revenue. Q61. Define macro economics. (1) Q62. Give any one point of distinction between a good and a service. (2) Q63. Describe real flows and money flows in a two sector economy. (3) Q64. Distinguish between micro and macro economics. (3)

Q65. Calculate private income- (3) i) ii) iii) iv) v)

(Rs Crore)

National debt interest10 Personal disposable income150 Personal taxes50 Corporate profit tax25 Retained earnings of private corporations5

Q66. Distinguish between factors payments and transfer payments. (3) Q67. Are the following included in the estimation of national income? Give reasonsi) ii) iii) iv) Scholarship paid to the students. Corporate tax Purchase of a second hand car Wind fall gains

Q68. Explain the steps and precautions involved in the expenditure method of calculating national income (6) ------------------------------END-------------------------------------