IMPORTANT
QUESTIONS FOR CBSE EXAMINATION CHAPTERWISE.
From
2013 to 2015
PART – A
1. Introduction
& Central Problems: -
3 Marks
Questions
i)
Define PPC and state
its properties.
ii)
Why a PPC concave?
Explain.
iii)
Why does the problem
of ‘How to Produce arise’? Explain.
iv)
Explain the meaning
of opportunity cost with the help of PPC schedule.
v)
With suitable
example explain the problem of ‘ For Whom to produce?
vi)
Giving reasons
comment on the shape of production possibility curve based on the following
schedule:
|
Good X ( Units)
|
Good Y (Units)
|
|
0
|
30
|
|
1
|
27
|
|
2
|
21
|
|
3
|
12
|
|
4
|
0
|
vii)
What is likely to be
the impact of ‘ Make in India’ , appeal to
the foreign investors by the Prime Minister of India., on the Production possibilities Frontier of
India.
viii)
What is likely to be
the impact of effects towards reducing unemployment on the production
potentials of the economy? Explain.
ix)
Giving reasons
comment on the shape of PPC based on the following schedule:
|
Good X (
Units)
|
Good Y
(Units)
|
|
0
|
16
|
|
1
|
12
|
|
2
|
8
|
|
3
|
4
|
|
4
|
0
|
i)
Giving reasons
comment on the shape of PPC based on the following schedule:
|
Good X (
Units)
|
Good Y
(Units)
|
|
0
|
10
|
|
1
|
9
|
|
2
|
7
|
|
3
|
4
|
|
4
|
0
|
ii)
Describe the Problem
of ‘ What to produce’
iii)
Govt. established a
large number of Institutes of science & technology, how will it affect the
PPC? Explain.
iv)
Describe problem of ‘How
to Produce’?
v)
Describe the problem
of ‘For whom to produce?
2. Consumer’s
Equilibrium
2014: -
i)
Define indifferent
curve.
ii)
What is meant by
monotonic preference?
2015: i) Define indifferent curve.
Ii) If Marginal Rate of Substation is increasing throughout, IC will
be: -
a) Down ward sloping
convex b) Downward sloping concave
c) Downward sloping straight
line. d)
Upward sloping concave
iii)
Define budget line
iv)
Define indifference
map.
3 Marks Questions: -
2013:
1.
Explain the meaning
of diminishing MRS with the help of numerical problems.
2.
What is budget line
why it is downward sloping?
3.
Explain the
condition of consumer’s equilibrium under Utility Analysis.
4.
What is the Law of
diminishing marginal utility? Give a numerical example.
4 Marks: -
I ) A
consumer consumes only two goods
X and Y and is in equilibrium. Show that if the price of good x is rise,
it will lead to fall in demand of X.
ii) A consumer consumes only two goods X and Y
and is in equilibrium. Show that if the price of good Y falls, it will lead to rise
in demand of Y.
iv)
A consumer consumes
only two goods X and Y and is in equilibrium. Show that if the price of good x
is rise, the consumer buy less of X. Use utility analysis.
v)
Given the price of a
good, how will a consumer decide as to how much quantity of that good to buy?
Use utility analysis.
2014 March.
i)
Explain distinction
between the equation of budget line and budget constraint.
2015 Jul. i) Explain with the help of
a numerical example, the meaning of Diminishing
Marginal Rate of substitution.
ii)
Explain the Law of
diminishing marginal utility with example.
iii)
6 Marks Questions: -
2013 March.
i)
Explain three
properties of Indifference Curve.
ii)
Explain the
condition of consumer equilibrium under IC
approach.
2013 Jul.
i)
Explain the meaning
of ‘Monotonic preference’ and also
explain why IC (i) Downward sloping (ii) Convex to the origin.
ii)
Explain the concept
MRS and its behavior in the IC analysis. Use a schedule.
2014:
March.
i)
Explain Why an IC
curve downward sloping (ii) convex.
ii)
Explain the concept
of ‘MRS’ with the help of numerical example. Also explain its behavior along
with IC.
2014: July
i)
Explain the
characteristics of IC.
ii)
Explain the
condition of consumer’s equilibrium using utility analysis.
2015:
March.
i)
Consumer consumes
only two goods X and Y, both priced at Rs. 2 per unit, If the consumer choose a
combination of two goods with MRS equal to 2, is consumer in equilibrium? Why
or Why not ? What will a rational consumer do in this situation ? Explain.
ii)
Consumer consumes
only two goods X and Y, Whose prices are
Rs. 5/- and Rs.4 /-at Rs. 2 per unit
respectively. , If the consumer choose a combination of two goods with MU of X
equal to 4 and Y equal to Rs.2, is the consumer in equilibrium? Why or Why not?
What will a rational consumer do in this situation? Use Utility analysis.
3. Demand
& Elasticity of demand.
2013 March.
How is demand of a good affected by rise in the price of other’s good? Explain.
2014.Jul.
3 & 4 Marks
i) A and B
are complementary goods. Explain the effect of change in price of A on demand
of B.
II) Give the meaning of inferior good. Explain
the same with example.
III) How does change in price of substitute goods affecting
the demand of the given good? Example with example.
i)
How does change in
price of a complementary good affect the demand of the given good? Explain with
the help of an example.
2015 Jul. Explain the
differences between ‘ change in Dd and change in Qty. Dd.
ii)
Explain the
significance of ‘minus sign’ attached to the measure of price elasticity of demand
in case of a normal good , as compared to the ‘ Plus sign’ attached to the
measure of price elasticity of supply.
4. Law of Variable proportion.
2013: 3 Marks and 4 marks
i)
State the phases in
the behavior of total product. Use diagram.
ii)
State the relation
between MP and AP. Use diagram.
iii)
Giving reasons ,
state following statement are true or not:
a)
Average product will
increase only when MP increases.
b)
Under diminishing
returns to a factor, TP continue to increase till MP product reaches zero.
2014- Mar. i) Giving reasons
explain the Law of variable proportion.
2015 Jul.: -
i)
Explain the take
place in TP and MP under diminishing returns to change a factor.
ii)
Sate with the help
of MP schedule the different phases of the Law of variable proportion.
6 Marks: -
i) What are
the different phases in the Law of Variable proportion in terms of MP? Giving
reasons behind each phase. Use diagram.
5. Supply
& Elasticity of Supply
2013 July
i)
Explain the
geometric methods for measuring price elasticity of supply. Use diagram.
2014 March.
i)Explain how technological progress is a determinate of supply of a good
by a firm.
2014 Jul.
i) Explain any two causes of a ‘decrease in supply of a good by a firm.
ii)
Explain any two
causes of rightward shift of supply curve.
2015 Jul.
i)
Giving reasons,
state whether the following statement is true or false?
i)
The supply curve of
a good shift to right when prices of other goods rise.
6. Cost
: -
2012: - July: -
1.
Explain the
relationship between AC and AVC.
2.
Define variable
cost. Explain the relationship between MC and AC.
2015 July:
1.
Giving reasons ,
state whether the following statement is true or false:
i)
The difference
between AC and AVC always constant?
2015 Mar.
i.
What is the behavior
of (i) AFC (ii) AVC as more and more unit of a good are produce?
ii.
2015 Jul.
State the relationship between: -
i)
I) MC and AVC
ii)
TC and MC.
Numerical: -
1)
The AFC of at unit 4
of output is Rs. 20. AVC at 5 units of output is Rs.40. AC of producing unit is
(choose the correct alternative)
2)
Calculate MC at each
level of output: -
|
Output
|
1
|
2
|
3
|
4
|
5
|
6
|
|
AVC
|
12
|
11
|
10
|
9
|
9
|
10
|
Calculate AVC : -
|
Output
|
1
|
2
|
3
|
4
|
5
|
6
|
|
MC
|
24
|
20
|
16
|
12
|
18
|
30
|
7. Revenue:
-
2014 Mar.
i)
Why AR always equal to Price?
2015.
i) Why is AR
curve of a firm parallel to X-axis under perfect competition? Explain.
ii) Why is average
revenue of a firm negative sloped under monopolistic competition? Explain.
ii)
Define AR. Show that
AR and Price are same.
8. Producer’s
Equilibrium: -
2012: -
i)
Explain the
producer’s equilibrium with the help of a numerical example.
2013: - From the table find out at the level of output at which producer
will be in equilibrium. Give reasons for your answer.
|
Output
|
Marginal Revenue
|
Marginal Cost
|
|
1
|
8
|
10
|
|
2
|
8
|
8
|
|
3
|
8
|
7
|
|
4
|
8
|
8
|
|
5
|
8
|
9
|
2013: - giving the reasons identity the equilibrium level of output and
find profit at this output using , MC and MR ‘ approach from the following: -
|
Output
|
1
|
2
|
3
|
4
|
5
|
|
TC
|
7
|
13
|
20
|
28
|
37
|
|
TR
|
7
|
14
|
21
|
28
|
35
|
2014: - The following information about a firm, find the firm’s
equilibrium output in the term of MC and MR. Give reasons. Also find profit at
this output.
|
Output
|
T R
|
TC
|
|
1
|
6
|
7
|
|
2
|
12
|
13
|
|
3
|
18
|
17
|
|
4
|
24
|
23
|
|
5
|
30
|
31
|
2015: -
i)
Explain why will a
producer not be in equilibrium if conditions of equilibrium are not met?
9. Forms of
Market: -
1.
Why can a firm not
earn abnormal profit in a long run? Explain.
2.
Why is the demand
curve of a firm under monopolistic competition more elastic than under
monopoly?
2014: -
i)
Why is the number of
firms small under Oligopoly? Explain.
2015: -March
i)
In a perfect
competitive market buyers treat a product of a firm is homogenous. Explain the
significance of this feature.
ii)
Explain the
implication of Non – price competition in Oligopoly market.
iii)
Distinguish between
Cooperative and non – cooperative oligopoly.
2015 July:
i)
Explain the
significance of ‘barriers to entry’ feature of monopoly.
ii)
Explain the product
differentiate features of monopolist competition.
iii)
Explain the inter
dependence of firm’ feature of oligopoly.
iv)
Explain the
significance of ‘homogeneous product ‘features of perfect competition.
10. Price
determination under Perfect competition
2013:- Mar.
1.
Equilibrium price of
an essentials medicine is too high. Explain what possible steps can be taken to
bring down the equilibrium price, but only through the normal market forces?
Also explain the series of changes that will occur in the market. (4)
2.
Market of essential
items of consumption is in equilibrium, but equilibrium price is too high for
the common man. What can the govt. do to bring down its market price but only
due to normal market forces? Explain the chain effect of the govt. action. (4)
3.
Equilibrium price of
a good is greater than its market price. Explain all the changes that will take
place in the market. Use diagram.
4.
Mkt. of a commodity
is in equilibrium, demand for the commodity’ decreases’. Explain the chain
effect of this change till the market again reaches equilibrium. Use diagram.
5.
Mkt. of a commodity
is in equilibrium, demand for the commodity ‘increases’. Explain the chain
effect of this change till the market again reaches equilibrium. Use diagram.
6.
Explain the changes
that can take place in the mkt. when the market price of good is less than its
equilibrium price. Use diagram.
7.
Explain the changes
that can take place in the mkt. when the market price of good is more than its
equilibrium price. Use diagram.
8.
Explain the meaning
of excess supply. Explain its chain effect on the price of a good is greater
than its equilibrium price. Use diagram.
2015 Mar.
9.
Market of the good
is equilibrium. The supply of a good is ‘decreases’. Explain the chain effect
of this change.
10.
Market of the good
is equilibrium. The supply of a good is ‘increases’. Explain the chain effect
of this change.
2015 Jul.
1.
Explain with the
help of a diagram the chain effect of a rightward shift in demand curve of a
good on its equilibrium price , quantity demanded and supplied.
5.
Basic Concepts of
Macro Economics and Circular Flow of Income: -
2013: -
I ) Define final goods.
ii)
Give example of
intermediate goods.
iii)
What are
intermediate goods?
iv)
Distinguish between
stock and flows. Give an example of each.
v)
Explain the circular
flow of income.
vi)
Define intermediate
goods and final goods. Can milk be an intermediate good? Give reasons for your
answer.
6. National Income
and its determination : -
i)
What are
externalities? Gives an example of a positives externalities and its impact on
welfare of the people.
ii)
Distinguish between real
and nominal gross domestic product.
iii)
Distinguish ‘real’
GDP and Nominal ‘GDP’. Which is better index of the economics welfare of the
iv)
people? Give two
reasons for your answer.
Chapter:
Measurement of National Income
v)
What precautions
under taken while calculating national income by expenditure method.
vi)
What are the four
precautions under taken while calculating national income by income method?
vii)
What are the four
precautions under taken while calculating national income by product method?
viii)
Explain the
following: -
i)
Why does import
deducted while calculating domestic income by expenditure method?
ii)
Why are free
facilities given to the employees including in National Income?
iii)
Distinguish between
real income and nominal income .Explain why cannot be treated as a true index
of welfare?
7.
How does the following treated in estimation national
income of a country? You must give reasons for your answer: -
i)
Taking care of aged
parents.
ii)
Payment of
corporation tax
iii)
Expenditure on
providing police services by the following?
iv)
Imputed rent of self
occupied houses.
v)
Interest received on
debenture.
vi)
Financial help
received by flood victims.
vii)
Price won in a
lottery.
viii)
Interest on public
debt.
ix)
Why indirect taxes
deducted while estimating N Y by expenditure method.
x)
Why free facilities
are given to the employee included?
xi)
Taking care of aged
parents.
xii)
Payment of corporate
tax.
xiii)
Expenditure provided
police services by the govt.
xiv)
Payment of interest
by a firm to the bank.
xv)
Expenditure on free
services by a govt. firm.
xvi)
Payment of interest
by an individual to a bank.
xvii)
Expenditure on
education of children by a family.
xviii)
Payment of
electricity bills by a school.
11. Money and Banking
i)
All functions of
Central bank.
ii)
Explain Credit
creation by Commercial banks with an example.
iii)
Explain any two
methods of credit control used by Central bank.
iv)
What is Legal
reserve ratio? Explain with its components.
v)
How bank rate is used
by Central bank in influencing credit creation by Commercial bank.
12. Determination of equilibrium level
I)
Distinguish between
autonomous investment and Induced investment.
II)
Differentiate between Aggregate demand and aggregate supply.
III)
Distinguish between
ex- ante and ex-posts measures.
IV)
Explain the meaning
of APC. What is its relation between APS?
V)
Which of the
following can note have negative value? Give reasons.
i)
APS ii) MPS
VI.
Explain the steps
taken in derivation of the consumption curve from the saving curve. Use
diagram.
VII.
Outline the steps
taken in derivation of the consumption curve from the saving curve. Use
diagram.
VIII.
Explain the changes
that will take place in an economy when AD is not equal to AS.?
IX.
When an economy is
in equilibrium? Explain with the help of saving and investment functions. Also
explain the changes take place in an economy when economy is not in
equilibrium? Use diagram.
X.
In an economy
spending are greater than planned output. Explain all the changes that take
place in an economy? When the economy is not in equilibrium. Use diagram.
2015 : - In an economy spending are greater than
planned output. Explain
all the changes that take
place in the economy.
13. PROBLEMS OF DEFICIT DEMAND AND EXCESS DEMAND
1.
Distinguish between
inflationary and deflationary gap with help of diagram.
2.
Explain the meaning
of deflationary gap with the help of a diagram.
3.
Explain the meaning
of under employment.
4.
What is excess
demand in macro economics? Show the same in the diagram.
5.
Explain the meaning
of under employment equilibrium; explain any two measures by which full
employment can be achieved?
6.
Explain the role of
‘legal reserve’ in reducing inflationary gap.
7.
State the two
measures by which inflationary and deflationary gap can be corrected?
8.
What is deficient
demand? Explain the role of ‘bank rate’
and reverse repo rate to remove it.
14. CHAPTER GOVT BUDGET
1.
Distinguish revenue
receipts and Capital receipts. Gives examples for each.
2.
How can budgetary
policies be used to reduce in equality of income?
3.
Distinguish between
revenue expenditure and capital expenditure. Gives an example of each.
4.
State three sources
each of revenue receipts and capital in the govt. budget. Which receipts are
borrowing by the govt. and why?
5.
Is the following are
revenue receipts and Capital receipts. In context of govt. budget and why: -
i)
Tax receipts and
ii)
Disinvestment.
15. FOREIGN EXCHANGE RATE
iii)
2013
iv)
1. Explain the
effect of depreciation of domestic currency on export.
v)
2. Foreign exchange
rate have risen considerably in a country . What is likely to impact on import of that country and why?
vi)
3. How foreign
exchange rate determined in the foreign exchange market? Explain.
vii)
2014
viii)
1. Foreign exchange
rate in India is rise recently. What impact is it likely to have on export and how?
ix)
2. Where foreign
exchange rate of a country likely to depreciated, What impact will be on import
and export.
x)
3. What are fixed
and flexible exchange?
xi)
4. Explain the rate
of managed floating exchange rate.
xii)
5. Explain any three
sources of demand of flexible exchange rate.
xiii)
6. Give the meaning of devaluation and
depreciation of domestic currency.
xiv)
7. Explain why there is inverse relationship
between price of foreign exchange and demand of foreign exchange.
xv)
8. Explain why there
is an increase in supply of foreign currency , when its price rises.
xvi)
9. . Explain why
there is an increase in demand of foreign currency , when its price decreases.
xvii)
10. Give meaning of
foreign exchange and foreign exchange rates. Giving reasons, Explain the
relationship between foreign exchange rate and demand of foreign exchange rate
COMPLIED BY: RAMESH KUMAR ,
PGT
ECONOMICS
K V NO.1,
BATHINDA CANTT.
........................................................................................................................................................................
