011-40705070  or
Select Board & Class
• Select Board
• Select Class
General Instructions:
(i) All questions in both sections are compulsory. However, there is internal choice in some questions.
(ii) Marks for questions are indicated against each question.
(iii) Question No.1-3 and 15-19 are very short answer questions carrying 1 mark each. They are required to be answered in one sentence.
(iv) Question No.4-8 and 20-22 are short answer questions carrying 3 marks each. Answers to them should not normally exceed 60 words each.
(v) Question No.9-10 and 23-25 are also short answer questions carrying 4 marks each. Answers to them should not normally exceed 70 words each.
(vi) Question No.11-14 and 26-29 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100 words each.
(vii) Answers should be brief and to the point and the above word limit be adhered to as far as possible.
Question 1
• Q1

What are monotonic preferences ?

VIEW SOLUTION

• Q2

If with the rise in price of good Y, demand for good X rises, the two goods are : (Choose the correct alternative)
(a) Substitutes
(b) Complements
(c) Not related
(d) Jointly demanded

VIEW SOLUTION

• Q3

Define budget line.

VIEW SOLUTION

• Q4

Giving reason, comment on the shape of Production Possibilities Curve based on the following table :

 Good X (units) Good Y (units) 0 4 1 3 2 2 3 1 4 0

VIEW SOLUTION

• Q5

What will be the impact of "Education for All campaign" (Sarv Shiksha Abhiyan) on the Production Possibilities Curve of the Indian economy and why ?

OR

What will likely be the impact of large scale inflow of foreign capital in India on Production Possibilities Curve and why ?

VIEW SOLUTION

• Q6

Why is minus sign attached to the measure of price elasticity of demand of a normal good in comparison to the plus sign attached to the measure of price elasticity of supply ? Explain.

VIEW SOLUTION

• Q7

There are no barriers in the way of firms leaving or joining industry in a perfectly competitive market. Explain the significance of this feature.

VIEW SOLUTION

• Q8

What is maximum price ceiling ? On what type of goods is it normally imposed ? Use diagram.

VIEW SOLUTION

• Q9

A consumer spends Rs 400 on a good priced at Rs 4 per unit. When the price rises by 25 percent, the consumer continues to spend Rs 400. Calculate the price elasticity of demand by percentage method.

VIEW SOLUTION

• Q10

What is supply ? Explain the effect of technological progress on supply of a good.

OR

What is 'change in supply' ? Explain the effect of tax imposed on a good on the supply of the good.

VIEW SOLUTION

• Q11

A consumer consumes only two goods, each priced at Rupee one per unit. If the consumer chooses a combination of the two goods with Marginal Rate of Substitution equal to 2, is the consumer in equilibrium ? Give reasons. Explain what will a rational consumer do in this situation.

OR

A consumer consumes only two goods X and Y whose prices are Rs 2 and Rs 1 per unit respectively. It the consumer chooses a combination of the two goods with marginal utility of X being 4 and that of Y also being 4, is the consumer in equilibrium ? Give reasons. Explain what will a rational consumer do in this situation. Use Marginal Utility Analysis.

VIEW SOLUTION

• Q12

What are the different phases in the Law of Variable Proportions in terms of Total Product ? Give reasons behind each phase. Use diagram.

VIEW SOLUTION

• Q13

Explain the rationale behind the conditions of equilibrium of a producer.

VIEW SOLUTION

• Q14

Market for a good is in equilibrium. Demand for the good "decreases". Explain the chain of effects of this change.

VIEW SOLUTION

• Q15

Name any two components of 'aggregate demand'.

VIEW SOLUTION

• Q16

If MPC = 0, the value of multiplier is : (Choose the correct alternative)
(a) 0
(b) 1
(c) Between 0 and 1
(d) Infinity

VIEW SOLUTION

• Q17

Primary deficit in a government budget equals : (Choose the correct alternative)
(a) Interest payments
(b) Interest payments less borrowings
(c) Borrowings less interest payments
(d) None of the above

VIEW SOLUTION

• Q18

Which one of these is a revenue expenditure ?
(a) Purchase of shares
(c) Subsidies
(d) Expenditure on acquisition of land

VIEW SOLUTION

• Q19

Other things remaining the same, when foreign currency becomes cheaper, the effect on national income is likely to be : (Choose the correct alternative)
(a) Positive
(b) Negative
(c) Positive and negative both
(d) No effect

VIEW SOLUTION

• Q20

If the Nominal Gross Domestic Product = Rs 4,400 and the Price Index (base = 100) = 110, calculate the Real Gross Domestic Product.

VIEW SOLUTION

• Q21

Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.

OR

Give the meanings of Balance of Trade and Balance on Current Account of Balance of Payments Accounts.

VIEW SOLUTION

• Q22

Giving reasons explain where charity to foreign countries is recorded in the Balance of Payments Accounts.

VIEW SOLUTION

• Q23

Explain 'Government's Bank' function of the central bank.

OR

Explain 'Bankers' Bank' function of the central bank.

VIEW SOLUTION

• Q24

Why do we say that commercial banks create money while we also say that the central bank has the sole right to issue currency ? Explain. What is the likely impact of money creation by the commercial banks on national income ?

VIEW SOLUTION

• Q25

An economy is in equilibrium. Calculate Marginal Propensity to Save from the following :
National Income = 1,000
Autonomous Consumption = 100
Investment Expenditure = 200

VIEW SOLUTION

• Q26

Giving reasons explain how should the following be treated in estimation of national income :
(i) Payment of corporate tax by a firm
(ii) Purchase of machinery by a factory for own use
(iii) Purchase of uniforms for nurses by a hospital

VIEW SOLUTION

• Q27

What is 'inflationary gap' ? Explain the role of Cash Reserve Ratio in removing this gap.

OR

What is 'deficient demand' ? Explain the role of 'Margin Requirements' in removing this gap.

VIEW SOLUTION

• Q28

Explain the role of government budget in fighting inflationary and deflationary tendencies.

VIEW SOLUTION

• Q29

Calculate the Gross National Product at Market Price and Personal Income :

 (Rs crores) (i) Wages and salaries 800 (ii) Personal tax 150 (iii) Operating surplus 200 (iv) Undistributed profits 10 (v) Social security contributions by employers 100 (vi) Corporate tax 50 (vii) Net factor income to abroad (−) 20 (viii) Personal disposable income 1,200 (ix) Net indirect tax 70 (x) Consumption of fixed capital 30 (xi) Mixed income of self-employed 500 (xii) Royalty 9

VIEW SOLUTION

Board Papers 2014, Board Paper Solutions 2014, Sample Papers for CBSE Board, CBSE Boards Previous Years Question Paper, Board Exam Solutions 2014, Board Exams Solutions Maths, Board Exams Solutions English, Board Exams Solutions Hindi, Board Exams Solutions Physics, Board Exams Solutions Chemistry, Board Exams Solutions Biology, Board Exams Solutions Economics, Board Exams Solutions Business Studies, Maths Board Papers Solutions, Science Board Paper Solutions, Economics Board Paper Solutions, English Board Papers Solutions, Physics Board Paper Solutions, Chemistry Board Paper Solutions, Hindi Board Paper Solutions, Political Science Board Paper Solutions, Answers of Previous Year Board Papers, Delhi Board Paper Solutions, All India Board Papers Solutions, Abroad/Foreign Board Paper Solutions, cbse class 12 board papers, Cbse board papers with solutions, CBSE solved Board Papers, ssc board papers.