HSC Economics March 2018 Solution

FOR BOARD QUESTION PAPER 2018 CLICK HERE.

HSC Economics March 2018 Solution

Q. 1. A. Answers

(1) Ragner Frisch

(2) Autonomous

(3) Deficit

(4) Inelastic

(5) Accept deposits

Q. 1. B. Answers.

Group ‘A’	Group ‘B’
(a) Demand and Price	(5) Inverse relation
(b) Perfectly elastic supply	(4) Horizontal supply
(c) Land	(6) Rent
(d) Unemployment allowance	(3) Transfer income
(e) Reserve Bank of India	(7) 1935

Q. 1. C. Answers

(1) True

(2) True

(3) True

(4) True

(5) False

(6) False

Q. 2. A. Define or Explain the following concepts (Any Three):

(1) Individual economic unit

Ans. It is the smallest part of an economy such as individual household, firm etc. Micro Economics studies individual unit.

(2) Marginal utility:

Ans. Marginal utility refers to the addition made to total utility by the consumption of one more unit of a commodity.

Marginal Utility = TUn units - TUn - 1 units

For eg. 10 = 110 - 100

3. Elasticity of Demand:

It refers to the degree of responsiveness of change in quantity demanded with given change in the price of a commodity assuming that except price all other conditions of demand remain same.

4. National income:

Ans. National income is the money value of all final goods and service produced in a country during a year counted without duplication.

It is the aggregate income of a nation for the period of a year.

5. Effective Demand:

Ans. The concept of effective demand is given by J.M. Keynes. In Economics, effective demand is determined at the point where aggregate demand is equal to aggregate supply.

Effective demand = ADD = ASS

6. Budget

Ans. The word Budget is derived from the French word 'Baguette' which means bad or wallet containing the financial proposals.

"A Budget is a statement of the state's estimated income and expenditure for the next financial year.

Q. 2. B. Give reasons or explain the following statements. (AnyThree)

1. The supply of agriculture commodities is relatively inelastic:

Ans. It is because supply of agriculture commodities depends up on monsoon, weather and natural conditions therefore it cannot be increased or decreased with human efforts. Thus, supply of agriculture commodities is relatively inelastic.

2. A monopolist can control the supply of goods.

Ans. It is because in monopoly there is single seller in the market, so he has complete control on supply of goods. He does not face any competition.

3. The supply of land is inelastic:

Ans. It is because land is a free gift of nature. Its total supply on the globe is fixed and it cannot be increased or decreased with human efforts.

4. Macroeconomics is different from micro economics:

Ans. It is because, Macroeconomics studies aggregate economy as a whole while Microeconomics studies individual Economics unit. Macroeconomics uses general equilibrium approach while Microeconomics uses partial equilibrium approach.

5. As banker for the government the central bank transfers government fund:

Ans. It is because central bank is banker of the government therefore it accept money on behalf of the government as well as helps to transfer government fund from central to state and local government and also among different departments of the government.

6. Microeconomics is also known as price theory.

Ans. It is because Microeconomics, is primarily concerned with price determination of goods and services as well as rewards of factors of productions i.e. land, labour, capital and entrepreneur in the form of rent, wages, interest and profit respectively.

Q. 3. A. Distinguish between the following (Any Three)

1. Desire and Demand.

2. Slicing Method and Lumping Method.

3. Paper money and Metallic Money.

4. Quantitative credit control and Qualitative credit control measures.

5. Output method and income method of measuring national income.

6. Average Revenue and Average Cost.

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

1. Subject matter of Microeconomics.

2. Geometric Method of measuring price elasticity of demand.

3. Price determination under perfect competition.

4. Features of labour.

Q. 4. Answer the following questions. (Any Three)

1. Explain the relationship between Total Utility and Marginal utility.

2. What are the features of monopolistic competition?

3. What are the features of Macroeconomics?

4. Explain the types of investment expenditure.

5. What are the different types of loans provided by the Commercial Bank?

6. Explain Development and Non Development Expenditure of the Government.

Q. 5. State With reasons whether you 'agree' or 'disagree' with the following statements. (Any Three)

1. Law of diminishing marginal utility depends up on various assumptions.

2. There are many types of demand.

3. There are no exceptions to the law of supply.

4. Barter system had many difficulties.

5. Central bank has the sole power of issuing currency notes.

6. Overdraft facility is not provided to the current account holders.

Q. 6. Write Explanatory answer. (Any Two)

1. State and explain the law of demand with its assumptions and exceptions.

2. What is price elasticity of demand? Explain the types of price elasticity of demand.

3. State and explain Keynesian 'Psychological Law of Consumption'.

4. Explain the output method of measuring national income.