Economics March 2017 12th standard board paper solution

ECONOMICS BOARD QUESTION PAPER : MARCH 2017

Note:

(1) All questions are compulsory.

(2) Draw tables/diagrams, wherever necessary.

(3) Figures to the right indicate full marks.

(4) Write answers of every new question on a new page.

Q. 1. A. Fill in the blanks using proper alternatives given in the brackets:  (5)

1.        Market demand is a total demand of all buyers.

2.         Perfectly inelastic demand curve is vertical straight line parallel to ‘OY’ axis.

3.         Other factors remaining constant, when price of a commodity raises there is extension of supply.

4.         National income is flow concept.

5.         Central bank is the apex body of the monetary and banking system of the nation’s economy.

Q1. B. Match the following:  [5]

a.                          Adam Smith - (2) Father of economics.

b.                          Railway  - (3) Public monopoly

c.                          Legal tender money - (7) Fiat money

d.                          D-mat account  - (5) Buying and selling of shares.

e.                          Bank rate  - (6) Quantitative tool of credit control.

Q. 1. C. State whether the following statements are True or False: (6)

1.         Total Revenue = Total quantiry x Price - True.

2.         Demand for necessary goods is inelastic - True.

3.         Capital is a natural factor of production - False.

4.         Consumption expenditure is the only component of aggregate demand - False.

5.         Credit money is created by the central bank of a country. - False

6.         Budget is a monthly statement - False.

Q. 2. (A) Define or explain the following concepts (Any THREE): (6)

1.  Microeconomics.

2.  Service utility

3.  Unitary elastic demand.

4.  Disposable income

5.  Autonomous consumption

6.  Bank Rate

Q. 2. B. Give reasons or explain the following (Any THREE): [6 Marks]

1. Supply is directly related to price.

2. Price discrimination is possbile under monopoly.

3. Labour cannot be stored.

4. Macro economics is the study of aggregates.

5. Cash reserve ratio (CRR) affects the lending capacity of banks.

6. Microeconomics deals with allocation of resources.

Q. 3. A. Distinguish between (Any THREE): (6)

1. Increase in demand and decrease in demand.

2. Partial equilibrium and General equilibrium.

3. Personal income and National Income

4. Standard coins and Token Coins.

5. Direct Tax and Indirect Tax.

6. Extension of supply and contraction of supply.    

Q.3. B. Write short notes on (Any Two) (6)

(1) Importance of microeconomics.

(2) Factors determining elasticity of demand.

(3) Features of monopoly.

(4) Types of capital.

Q4. Write short answers for the following questions (Any Three) (12)

(1) What are the characteristics of utility?

(2) What are the features of ‘pure competition’?

(3) What are the features of ‘microeconomics’?

(4) What are the primary functions of commercial bank?

(5) What are the types of budget?

(6) What are the determinants of aggregate demand?

Q. 5. State with reasons. Whether you ‘agree’ or ‘disagree’ with the following statements (Any Three) [12]

(1) There are no exceptions to the law of demand.

(2) Commercial bank can create credit on the basis of primary deposits.

(3) Central bank is called the bankers’ bank

(4) There is no difference between stock and supply.

(5) General acceptability is the only quality of good money.

(6) Law of Diminishing Marginal utility is important in practice.

Q. 6. Write explanatory answers: (Any two)  [16]

(1) State and explain law of demand with assumptions.

(2) Explain Ratio method and Geometric method of measuring price elasticity of demand.

(3) What is National Income? Explain theoretical or conceptual difficulties of measuring National Income.

(4) Explain the subjective and objective factors determining consumption function.