SMT.

CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE, ULHASNAGAR-3

XII Arts & Commerce (Aided/Unaided)
Important questions for HSC ABT exam
Subject-Economics

Q1] Choose the Correct Option:

1) The term ‘micro’ is derived from the Greek word, ______________.
a) Makros
b) Maikros
c) Mikros
d) Mikrosoft

2) The term Micro and Macro economics were first coined by______________.
a) Adam Smith
b) Raganr Frisch
c) Dr. Marshall
d) Prof. Ricardo

3) Want satisfying power of a commodity is called as______________.

a) Usefulness
b) Satisfaction
c) Happiness
d) Utility

4) MU of commodity becomes negative, when TU of a commodity is______________.

a) rising
b) constant
c) falling
d) zero

5) The Law of Demand was introduced by ______________.

a) Alfred Marshall
b) Adam smith
c) Ragnar Frisch
d) Samuelson

6) Homogeneous product is a feature of______________ market.

a) Monopoly
b) Monopolistic Competition
c) Perfect Competition
d) None of these

7) Equilibrium price is that level of price where______________.

a) market demand is more than market supply
b) market demand is equal to market supply
c) market demand is less than market supply
d) none of these

8) Revenue per unit of output sold is ______________.

a) total revenue
b) marginal revenue
c) average revenue
d) marginal expenditure

9) In modern times the most commonly implemented policy of any government is

______________.
a) Deficit budget
b) surplus budget
c) balance budget
d) Financial budget

10) Sale of goods and services by one country to another country is called
______________.
a) Import trade
b) Export trade
c) Entrepot trade
d) Home trade

Q2 Find the Odd word :

1) Capital, land, labour, Employment

2) Sunlight, Gold, water, Air

3) Teacher, Dentist, Doctor, Table

4) Medicines ,Cold drinks, Sweets, Fruits

5) Land, labour, cosmetics, capital

6) Total cost, Marginal cost,Average cost, Total Revenue

7) Perfect compition, Oligopoly, Monopoly, National Market

8) Single seller, homogeneous product, perfect knowledge, single price

9) Balanced budget, Surplus budget, Revenue budget , Deficit budget

 10) Import trade , Internal trade, Export trade, Entrepot trade

Q3] Complete the correlation:

1) Slicing method : Micro Economics:: Lumping method : Macro Economics

2) General equilibrium: Macro Economics :: Partial Equilibrium : Micro Economics

3) TU: Highest :: MU : Zero

4) Perfectly elastic Demand : Ed = ∞ :: Perfectly Inelastic Demand: Ed = 0

5) Price rises : Expansion of supply :: Price falls : contraction of Supply

6) Demand curve : Downward :Supply curve : Upward

7) Perfect competition Market : free entry and free exit :: Monopoly : Barriers to entry

8) Obligatory function : Maintaining internal law and order :: Optional function :

Provision of welfare measures

9) Domestic currency: Internal debt:: Foreign currency : External debt.

10) Home trade : internal trade :: Foreign trade: External/international trade

Q4] Give Economic term:

1) A type of equilibrium that explain the equilibrium of the entire economy.

General equilibrium

2) Deposits withdrawable on demand.

Demand deposits

3) Utility created due to change in the structure of given material.

Form utility

4) Additional utility derived by a consumer from an additional unit of a commodity

consumed.
Marginal utility

5) Two or more goods are demanded at a time to satisfy one want.

 Joint demand

6) Desire + willingness to purchase + Ability to pay.

Demand

7) Graphical representation of demand schedule.

Demand curve

8) Cost incurred on fixed factor.

Fixed cost

9) The cost incurred by the firm to promote sales.

Selling cost

10) Tax which is paid by tax payer on his income and property.
Direct Tax

Q 5] Study the following situations and express your opinion:

Case 1

According to Keynes, individual’s nature compels them not to spend their entire income.
Hence, they save part of their income. Following are the motive which induce people to
save and hence influence consumption levels
a) Motive of precaution - Generally people save a large part of their income as a
precaution against future unforeseen contingencies thus, to that extent the current
consumption is reduced.
b) Motive of foresight - Individual has to provide for the future needs like higher education
of children, maintenance of dependents during old age etc. Hence Individual is likely to
reduce his or her present consumption in order to save more,
c) Motive of calculation - In order to earn income people invest in shares, debentures or
other income earning assets. This is likely to reduce their present consumption. Investment
decisions depend on future expected trends in the price of income earning assets.

Questions:

(i) What are the different types of motive?

Ans: There are 3 types of motive i.e motive of foresight and motive of calculation and
motive of precaution

(ii) Each and every individual has, it is necessary to reduce present consumption? Give
your opinion.
Ans: Yes it is necessary to reduce consumption and save part of their income.

Case 2

In modern period, due to development in science and technology, means of transport and
communication, it is observed that international trade among different countries has
increased.
There are two side of international trade. Such as (i) Import (ii) Export.
Import refers to purchase of goods and services. Capital as well as consumer goods by a
country from different countries in the world.
Export Refers to selling of capital as well as consumer goods and services by a country to
another countries.
Questions:

(i) What type of trade has increased?

Ans: International trade has increased.

(ii) How many sides does international trade have?

Ans: There are 2 sides of international trade.

(iii) What do your mean by export?

Ans: Export refers to selling of capital and consumer goods and services by a country to
another country.

(iv) Give your opinion about foreign exchange earning?

Ans: In international trade as increase export we can earn foreign exchange.

Case 3

Entrepreneurs are motivated by internal factors educational background technical

knowledge and be Independent along with external factor such as assistance from
government availability of resources. will help to the development of an entrepreneurs.
Questions:
(i) By which factors entrepreneurs are motivated ?
Ans: Entrepreneurs are motivated by internal and external factors.

(ii) Is motivation an important factor in the development of an entrepreneurs ? Support

your answer with proper reasoning.
Ans.:Yes, motivation is an important factor in the development of an entrepreneur. It
gives direction to achieve goal. It induces him to continue the course of action.

Case 4

My mother purchased a two wheeler vehicle to me this helped to fulfill my travel needs.
At the same time my father also utilized his provident fund amount to set up my classes.
Questions:
(i) Name the type of utility
Ans: Time and place utility.

(ii) Explain the meaning of utility

Ans: Utility is want satisfying power of commodity.

(iii) What are the basic needs

Ans: Food, clothing, shelter, health and education.

(iv) Give your opinion about advantages and disadvantages of provident fund.
Ans: PF is the provident fund it is the amount invested by the employer and employee
and at the time retirement amount received to employer, and he can use for his personal
purpose .Its main advantage is we can use this money as capital for setup and
disadvantage is that there is limit on the withdrawal

Case 5

Table shows India's import for 2 years observe and answer the question given below
India’s imports in %
Commodities 2015-16 2016-17
(a) Electric goods 21.8 22.6
(b) Fertilizers 2.1 1.3
(c) Food grains 0.1 0.4

Questions:

(i) Which commodity have minimum import in the year 2015?

Ans. Food grains have minimum imports in 2015.

(ii) Give your opinion about reducing our import.

Ans: We have to reduce import and increase export so there by there will be economic
development of country. For reducing import to use the commodities available in our
country do not import from other country and as far as possible increase in production of
goods required in our country it may be food grain or fertilizer.