AHSEC Class 12 Economics Question Paper 2019

The figures in the margin indicate full marks for the questions

(b) What is opportunity cost?         1

(c) If marginal utility of a commodity is higher than the price, then the consumer will buy more of the commodity. (Write true or false)      1

(d) What will be the effect of price change on supply of a commodity with perfectly inelastic supply? 1

(e) How will an increase in the price of inputs shift the supply curve?  1

(f) What is shut-down price?  1

2. Why the production possibility curve slopes downward from left to right? 2

3. Give two reasons of a leftward shift in the demand curve.  2

4. The price elasticity of demand of a commodity is 4 and the percentage change in price is 8. Find the percentage change in the quantity demanded.  2

5. What is fixed factor? Give one example.          1+1=2

6. What is meant by inelastic supply? Draw a inelastic supply curve.          1+1=2

7. Mention two differences between monopoly and perfectly competitive market.  2

8. Distinguish between change in quantity demanded and change in demand.    4

9. Mention the relationship between total utility and marginal utility.      4

10. What is variable cost? Why the average variable cost (AVC) curve becomes U shaped?            1+3=4

11. The production function of a firm is Q=2L^1/2 K². Find the amount required of factor K is the firm wants to produce 200 units with available 16 units of factor L.

(Q=Output, K=Capital, L=Labour)             

12. Mention the effects of the following on the supply of a commodity.                2+2=4

13. Explain the Law of Variable Proportion with diagram.  6

Or

The total fixed cost of a firm is Rs. 200. Fill in the blanks of the following table.

14. Explain the process of Long-run Equilibrium Price determination of perfectly competitive industry with diagram.       6

Or

Show the effects of change in demand of a commodity on equilibrium price, if   3+3=6

PART – B

15. (a) In what circumstances, the GDP of an economy can be equal to GNP?      1

(b) What is transfer payment?             1

(c) What is voluntary unemployment?             1

(d) What is Break-Even Income?     1

(e) What is the full form of GST?         1

(f) What is zero primary deficit?          1

16. Mention two subject matters of Macroeconomics.      2

17. Mention any two types of leakages found in the Circular Flow of Income.      2

18. What is investment multiplier? Write the relationship between investment multiplier and MPC.   1+1=2

19. Mention the two primary functions of money.            2

20. Mention two differences between revenue receipts and capital receipts.     2

21. State two sources of supply of foreign currency.                        1+1=2

22. The value of MPC of an economy is 0.4. What amount of new investment is required to generate new income of Rs. 500 crore in the economy?  4

23. Explain any two fiscal measures to solve the problems of excess demand in an economy.      2+2=4

24. Mention four factors causing disequilibrium in Balance of Payment of a country.        4

25. Write down four differences between Direct Tax and Indirect Tax.    4

26. What is Budget Deficit? What are the three types of Budgetary Deficit?          1+3=4

27. Describe the Circular Flow of Income in a Three Sector Economy.       6

Or

Explain the Expenditure Method of calculating Gross Domestic Product (GDP).            6

28. Explain the process of credit creation by commercial banks. 6

Or

Describe the Quantitative method of adopted by the Central Bank to control credit created by commercial banks.  6

-000-