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## Sunday, December 03, 2017

### AHSEC - Class 12 Question Papers: Economics' 2012

H.S. 2nd Year, 2012
ECONOMICS
Full Marks: 100 Time: 3 hour
1. (a) Opportunity cost is also called the ____ cost. 1
(b) In economics, it is generally assumed that the consumer is an individual. 1
(c) What is an inferior good? 1
(d) Total Cost (TC) = ____ + Total Variable (TVC) 1
(e) State two main features of a perfectly competitive market. 1
2. Mention three basic problems of an economy. 3
3. Draw a vertical demand curve and state the nature of price elasticity on it. 3
4. The total money income of a consumer is M and he spends his entire money income on the consumption of two commodities, viz X and Y. The prices of X and Y are PX and PY respectively. State the budget equation. 3

5. If the total product with 5 units of a variable factor is 56, calculate the average product. If the variable factor is increased by 1 more unit as a result of which the total product becomes 57, what will be the marginal product? 3

6. State the conditions needed for a firm to maximize profits by producing positive output in a competitive market. 3
7. Suppose there are two consumers in a market. The demand function of the first consumer is –
And
The demand function of the second consumer is –
And
Find out the market demand function. 4
8. Explain the relationship between average product and marginal product with the help of diagram. 4
9. The production function of a firm is given as. Calculate the level of output when it employs 25 units of labour and 16 units of capital. 4
10. State and explain the law of demand. 6
11. The short run total cost (TC) function of a production unit is given below. Find out the total variable cost (TVC), average fixed cost (AFC), average variable cost (AVC) and average cost (AC) schedule. 6
Or
Show with the help of diagram that total cost is the vertical sum of total fixed cost and total variable cost. 6
12. Show how a monopolist earns profit by using total cost curve and total revenue curve. 6
Or
Explain the relation among the TR, AR and MR of a monopoly firm with the help of an imaginary table and diagram. 6

13. (a) In a modern economy, people hold money broadly for two motives. One is transaction motive, what is the other. 1

(b) Name the monetary authority that issues currency notes in India. 1
(c) What is aggregate demand? 1
(d) Given the marginal propensity to save is 0.3, find out the income multiplier. 1
(e) Y = C + I + G + NX – In this equation what does NX refer to? 1
14. Explain how to calculate gross national product from gross domestic product. 3
15. Distinguish between gross investment and net investment. 3
16. What is net national product at factor cost? 3
17. What is devaluation of currency? 3
18. What is gold standard? 3
19. Explain the concept of ex-ante consumption. 4
20. What are the sources of government revenue? 4
21. When does a government incur budget deficit? Suppose the total government spending G = 150 and tax revenue T = 0.20Y. Now if the level of national income (Y) is 20000, what is the condition of government budget? 1+3
22. Explain the circular flow of income in a simplified economy with two sectors – households and firms. 6
Or
Explain the income method of calculating gross domestic product (GDP). 6
23. Explain the transaction demand for money. 6
Or
What are the instruments of monetary policy used by RBI? Explain any two of them. 6
24. Explain the relationship between investment multiplier and marginal propensity to consume. 6