Roll No. No. of Printed Pages 210 No. of Printed Questions . : 30 HALF YEARLY EXAMINATION, 2016-17 ECONOMICS Time : 3 hrs. Class : XII M.M. : 100 General Instructions : (1) All questions in both the sections are compulsory. (2) Marks for questions are indicated against each. (3) Question nos. 1-6 and 23-25 are very short-answer questions _bamying ‘1 mark each. They are required to be answered in one sentence each, (4) Question nos. 7-11 and 2627 are shortanswer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each. (5) Question nos. 12-17 and 28 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each. (6) Question nos. 18-22 and 29-30 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each. GS-42—300/10 [1] PTO.(7) Answers should be brief and to the point and the above word limits should be adhered to as far as possible. (8) Question No. 2 and 26 are value based questions SECTION—a’ (INTRODUCTORY MICRO ECONOMIC THEORY) i In the short run, when the firm produces zero output, its total cost is equal to : 1 (@) Zero (b) Variable cost Joy Fixed cost (4) Marginal cost ce Keeping the weltaré of the masses “in mind,~the govesument_ Should be very considerate in fixing the price of life savings drugs, as their price elasticity of demand is i Ley Zero (b) Less than 1 () More than 1 @a Pa Giagram below shows three supply curves of three commodities. Rank their price elasticity. 1 @) A>B>c SI n= B=c @S-42—300/10 (2)() B>A>c () C>B>A ‘A B Price Ci Quantity Supplied PPC will shift to the right when : 1 (a) When there’s an advancement of technology for the production of commodity X. {b) When there's an advancement of technology for the production of commodity Y. fhere’s an increase in availability of resources with respect to both the commodities. (d) There’s a decrease in availability of resources with respect to both the commodities. Se Why is the study of consumer’s equilibrium a subject matter of micro economics ? 1 oo An attempt to set a minimum price of a good is called :1 er frice floor (b) Price ceiling GS-42—300/10 131 REO.(c)_ Price subsidy (a) Both (a) and < ©) Which of the following statement is true or false ? Give reasons. 3 (i) An economy always produces on but not inside the PP curve. (ii) Massive unemployment shifts the PP curve to the left. (iii) Micro economics is the study of the behavior of the economy as a whole. ceiling. 4A of an example. oR the change in the MU of a commodity. SS Using a numerical example, explain how does TU change with 3 Explain ‘black marketing’ as a direct consequence of price 3 What is Marginal’ rate of Transformation ? Explain with the help oe Give reason and comment on the shape of PPC based on the following schedule : Good X Good ¥ 0 10 1 9 2 7 3 4 4 ° GS-42—300/10 14]ue 12. fa) (b) ee 16. a (a) (b) Do rich countries also face central problems ? Give reasons for your answer. 3 What is the elasticity of the following commodities and why ? Give reasons. 4 Demand for textbooks Demand for a particular brand of lipstick Demand for milk Demand for medicines Explain two sources of restricted entry under monopoly. 4 What are the conditions of consumer’s equilibrium under Hicksian's approach ? What changes will take place if, the conditions are not fulfilled in order to reach the equilibrium ? 4 oR Why is Indifference curve : downward sloping convex to the origin ‘The demand for a good doubles due to a 25 percent fall in price. Calculate its price elasticity of demand. 4 Giving reasons, state whether the following statements are true or false : 4 When there are diminishing returns to a factor, total product always decreases, Total product will increase only when marginal product increases. GS-42—300/10 (sl PTO.{e) (a) fa) (b) oe (b) fa) (b) Increase in total product always indicates that there are increasing returns to a factor. When marginal product falls, average product will also fall. Draw the average revenue curve of a firm under : 4 Monopoly and Perfect Competition Explain the difference in these curves, if any oR Differentiate between collusive and non-collusive oligopoly. Which of the two is more beneficial for the consumer and why ? Explain, the law of demand with the help of a schedule. Se eG Why is the demand curve negatively sloped ? In an Oligopoly market, explain the implications of the following 6 Non price competition Interdependence amongst the firms oR In a Perfectly competitive market, explain the implications of the fSllowing : (a) No barrier on the entry and exit of the firm (b) Firm is a ‘Price - Taker’ @S-42—300/10 16)20 alculate the values of TC, MC and AVC up to 6th level of an produced, using the information given below : 6 (a) TC at the Ist unit of output is Rs. 21. (b) MC at the 2nd unit of output is Rs. 7. (c) AVC at the 3rd and Sth unit of output is Rs. 6 (@) AFC and MC at the 4th unit of output is Rs. 3 and Rs. 4 respectively. (e) TC at the 6th unit of output is Rs. 54. IO Is a producer in equilibrium under the following situations: 6 (a) When MR > MC (o) MR = Mc Give reasons in support of your answer’ using a numerical example. af How will an increase in the income of the buyer of an inferior good, affect its equilibrium price and equilibrium quantity ? Explain the chain of effects with the help of a diagram. 6 OR What happens when the government fixes the support price higher than the market equilibrium price for the commodity ? SECTION—B’ (NATIONAL INCOME ACCOUNTING) a Identify the stock variable from the following : 1 (a) Income GS-42—300/10 t71 PLO.D Discuss the precautions to be taken while estimating national income by expenditure method. Are the following a part of country’s NDP at MP ? Give reasons. 4 (a) Indirect taxes (b) Net exports (©) Consumption of fixed capital (a) Net factor income from abroad ay Find out (a) Gross National Product at Market Price and (b) Net Current Transfers from Abroad : 6 Rs. (in crores) 1 Net indirect taxes 35 2. Private final consumption expenditure 500 3. Net national disposable income 750 4. Closing stock 10 5. Government final consumption expenditure 150 6. Net domestic fixed capital formation 100 7. Net factor income to abroad Gs 8. Net imports 20 9. Opening stock 10 10. Consumption of fixed capital 50 GS-42—300/10 19] Pro.JS eae National Income and Personal Disposable Income: 6 Rs. (in crores) 1. Personal tax 80 2. Private final consumption expenditure 600 3. Undistributed profits 30 4, Private income 650 5. Government final consumption expenditure 100 6. Corporate tax 50 7, Net domestic fixed capital formation 70 8. Net indirect tax 60 9... Depregiation we Smt, 10. Change, in stocks 11. Net imports 12. Net factor income to abroad 10