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12th ECONOMICS BOARD PAPER MARCH 2015

Economics March 2015 Board Question Paper & Important Questions

Economics March 2015 Board Question Paper

Name Page No. 1 Name Page No. 2

Q1. A. Fill in the blanks with appropriate alternatives given in brackets below the questions: (5)

1.
The terms ‘micro’ and ‘macro’ economics were first used by Ragnar Frisch
(Marshall / Ragnar Frisch / Robbins / Adam Smith)
2.
The objective of a seller in monopoly market is Profit maximization.
(Loss / Profit / negative profit / zero profit)
3.
Marginal propensity to consume + Marginal propensity to save is equal to one
(zero / one / less / more)
4.
Method of withdrawing money without going to the bank is by ATM
(cheque / demand draft / ATM / mail transfer)
5.
The term ‘budget’ is derived from the French word ‘bougette’.
(Greek / German / French / Latin)

Economics Board Questions with Solution

B. Match the following Group ‘A’ with Group ‘B’

Study the groups below and try to match them before checking the solution.

Group ‘A’ Group ‘B’
1. Pen and ink a. Quantity price
2. Revenue b. Accident
3. Insurable risk c. Transfer income
4. Unemployment allowance d. Short period
5. Reverse repo rate e. Long period
f. Change in demand
g. Joint demand
h. Quantity × Price
Solution: Correct Matches
1. Pen and ink — Joint demand (g)
2. Revenue — Quantity × Price (h)
3. Insurable risk — Accident (b)
4. Unemployment allowance — Transfer income (c)
5. Reverse repo rate — Change in demand (f)

C. State whether the following statements are True or False. (6)

1.
Demand for perishable goods is inelastic. (True)
2.
Total cost is the total expenditure incurred by firm. (True)
3.
The seller is a price maker in the perfect competition. (False)
4.
Cheque is an optional money. (True)
5.
A bank is an institution which deals in money and credit. (True)
6.
The RBI was nationalised in the year 1935. (False)

Q2. (A) Define or explain the following concepts (Any Three) (6)

1. Resource allocation
2. Elasticity of supply
3. Market
4. Labour
5. Macro economics
6. Central bank

(B) Give reasons or explain the following (Any Three) (6)

1. Micro economics studies individual economic unit.
2. Change in the price of substitute goods affects the demand for another goods.
3. In order to avoid double counting, value added approach is used.
4. Effective demand is also called macro economics equilibrium.
5. The Central Bank may take direct action against the defaulting commercial banks.
6. Unpaid services are not included in national income.

Q3. A. Distinguish between (Any Three) (6)

1. Place utility and Time utility.
2. Demand curve and supply curve
3. Individual supply and Market supply
4. Slicing method and Lumping method.
5. Convertible paper money and inconvertible paper money.
6. Revenue expenditure and Capital Expenditure.

B. Write short notes (Any Two) (6)

1. Microscopic study.
2. Income elasticity of demand.
3. Determination of equilibrium price under perfect competition.
4. Functions of an Entrepreneur.

Q4. Write short answers for the following questions (Any Three) (12)

1. Explain the law of diminishing marginal utility.
2. Explain the features of monopoly.
3. Explain the features of macroeconomics.
4. Explain various types of investment expenditure.
5. Explain the secondary function of money.
6. Explain different types of loans and advances provided by commercial banks.

Q5. Explain with reasons whether you ‘agree’ or ‘disagree’ with the following statements (Any Three) (12)

1. The law of equi – marginal utility is based on certain assumptions.
2. Population is the only determinant factor of demand.
3. There are no exceptions to the law of supply.
4. Providing safe deposits vault facility is the only general functions of commercial banks.
5. There is no difference between the Central bank and a commercial bank.
6. During the period of inflation surplus budget is advisable.

Q6. Write explanatory answers. (Any Two) : (16)

1. Explain in detail ‘saving function’ with schedule and diagram.
2. What is ‘elasticity of demand’? Explain the factors determining elasticity of demand.
3. What is ‘national income’ ? Explain the theoretical difficulties involved in the measurement of national income.

ECONOMICS HSC IMPORTANT QUESTIONS FOR BOARD EXAM 2018

ALMOST 99.99% SURE QUESTIONS.

Define / Explain the following concepts. (Any Three)

Autonomous consumption
Average revenue
Bank Rate
Central bank
Clearing House.
Cross Elasticity of demand.
Disposable income
Effective Demand
Elasticity of supply
Entrepreneur
General equilibrium
Government budget.
Individual Economic unit.
Individual demand
Induced Consumption Expenditure
Labour
Land
Macroeconomic variables
Macroeconomics
Market
Market Demand
Microeconomics
Monopoly
National income
Price discrimination.
Pure competition
Relatively elastic supply
Repo rate
Resource allocation
Reverse Repo Rate
Selling Cost
Service utility
Slicing method
Stock
Token coins
Total output
Unitary elastic demand.

Give reasons or explain the following (Any Three) (6)

A deficit budget may prove useful during the period of depression.
Agricultural goods are exceptions to the law of supply.
All desires are not demand.
An entrepreneur is called a leader of the organization.
Autonomous investment is not directly linked with profit.
Cash reserve ratio (CRR) affects the lending capacity of banks.
Central Bank has the sole power of issuing currency notes.
Central bank acts as a lender of the last resort of commercial banks.
Change in the price of substitute goods affects the demand for another goods.
Demand for habitual goods is normally inelastic.
Demand for the commodity having multiple uses has elastic demand.
Effective demand is also called macroeconomics equilibrium.
In order to avoid double counting, value added approach is used.
Labour cannot be stored.
Macroeconomic is also known as income and employment theory.
Macroeconomics is concerned with macro economic variables.
Macroeconomics is the study of aggregates.
Micro economic theories are based on certain assumptions.
Microeconomics deals with allocation of resources.
Microeconomics is useful to the government.
Microeconomics studies behaviours of individual economic unit.
Microeconomics studies individual economic unit.
Old age pension is transfer income.
Paid services are included in national income.
Perfectly inelastic demand curve is parallel to OY axis.
Price discrimination is possible under monopoly.
Rate of Interest on fixed deposits is high.
Services of housewives are excluded from national income.
Supply is directly related to price.
Supply of land is perfectly inelastic.
The Central Bank may take direct action against the defaulting commercial banks.
The propensity to save depends upon the level of income.
Theories of micro economics are based on certain assumptions.
There are many subjective factors that determine consumption function.
Unpaid services are not included in national income.
Utility has no ethical consideration.
Utility is a relative concept.
Utility is ethically neutral.
With the increase in income, both consumption and savings increase.

Distinguish between (Any Three) (6)

Average Revenue and Average cost
Central Bank and Commercial Bank.
Convertible paper money and Inconvertible paper money.
Demand curve and supply curve
Desire and demand
Direct Tax and Indirect Tax.
Direct demand and Indirect demand.
Expansion of demand and Increase in demand.
Extension of supply and contraction of supply.
Form Utility and Time Utility.
Gross National Product and Net National Product
Gross domestic products at market price and Gross domestic product at factor cost.
Increase in demand and Decrease in Demand.
Increase in supply and Decrease in supply.
Individual demand and Market demand
Individual supply and Market supply
Land and Capital
Legal tender money and Non – legal tender money.
Metallic money and paper money
Microeconomics and Macroeconomics.
Paper Money and Metallic Coins.
Partial equilibrium and General equilibrium.
Percentage method of measuring elasticity of supply and Geometric method of measuring elasticity of supply.
Personal income and National Income
Place utility and Time utility.
Relatively more elastic demand and relatively less elastic demand.
Revenue budget and Capital budget.
Revenue expenditure and Capital Expenditure.
Slicing method and Lumping method.
Standard coins and Token Coins.
Stock and Supply.
Surplus Budget and Deficit Budget.
Total Cost and Total Revenue.

Write short notes (Any Two) (6)

Credit creation.
Determination of equilibrium price under perfect competition.
Difficulties in Barter system.
Factors determining elasticity of demand.
Feature of Micro Economic.
Features of Land.
Features of Monopolistic Competition.
Features of monopoly.
Functions of an Entrepreneur.
Giffen’s paradox.
Historical review of microeconomics.
Importance of micro economics.
Importance of the law of diminishing marginal utility.
Income elasticity of demand.
Microscopic study.
Price determination under perfect competition.
Proportional method of measuring elasticity of demand.
Qualities of an Entrepreneur.
Ratio method of measuring price elasticity of demand.
Revenue Receipts.
Risk and uncertainty bearing function of an entrepreneur.
Significance of price elasticity of demand.
Subject matter of microeconomics.
Total expenditure method of measuring Elasticity of Demand.
Types of Monopoly.
Types of capital.
Types of loans of commercial bank.

Write short answers for the following questions (Any Three) (12)

Explain different types of loans and advances provided by commercial banks.
Explain features of National Income.
Explain features of utility.
Explain qualitative measures of credit control adopted by the Central Bank.
Explain the Law of Demand.
Explain the agency function of Commercial Bank.
Explain the budget expenditure of the government.
Explain the circular flow of National Income.
Explain the components of government budget.
Explain the determinants of aggregate demand.
Explain the features of monopolistic competition.
Explain the features of monopoly.
Explain the features of perfect competition.
Explain the importance of elasticity of demand.
Explain the importance of the law of Diminishing Marginal Utility.
Explain the increase in supply and decrease in supply.
Explain the law of diminishing marginal utility.
Explain the relationship between Total utility and Marginal utility.
Explain the secondary function of money.
Explain the subject matter of Microeconomics.
Explain the subject matter of macroeconomics.
Explain the types of government budget.
Explain the types of utility.
Explain various types of Bank Deposits.
Explain various types of investment expenditure.
State the determinants of aggregate demand.
What are the characteristics of utility?
What are the determinants of aggregate supply?
What are the features of Macro Economics?
What are the features of ‘microeconomics’?
What are the features of ‘pure competition’?
What are the main components of budget?
What are the primary functions of commercial bank?
What are the types of budget?
What is the importance of the study of Microeconomics?

Q5. Explain with reasons whether you ‘agree’ or ‘disagree’ with the following statements (Any Three) (12)

Aggregate demand depends only on the consumption expenditure.
Aggregate supply is influenced only by availability of natural resources.
Barter system did not have any difficulty.
Bank rate is a quantitative measure of credit control.
Cash reserve ratio is a quantitative measure of credit control.
Central Bank do not adopt quantitative measures of credit control.
Central Bank does not work as a banker to the government.
Central Bank is a profit making institution.
Central bank is called the bankers’ bank.
Commercial Bank provides many general utility services.
Commercial bank can create credit on the basis of primary deposits.
Commercial banks cannot create credit money.
Commercial banks perform agency functions to earn profit.
Commercial banks provide many general utility services.
During the period of inflation surplus budget is advisable.
General acceptability is the only quality of good money.
Good money has many qualities.
Law of Diminishing Marginal utility is important in practice.
Money also performs certain contingent functions.
Money performs various functions.
Population is the only determinant factor of demand.
Price elasticity of demand can not be measured by using geometric method.
Price is the only determinant of demand.
Price is the only determinant of supply.
Price is the only factor that affects demand of a commodity.
Providing safe deposits vault facility is the only general functions of commercial banks.
Supply curve of labour bends backwards.
Supply curve slopes upward from left to right.
The law of diminishing marginal utility can be explained with the help of schedule and diagram.
The law of equi – marginal utility is based on certain assumptions.
The law of ‘diminishing marginal utility’ is important in practice.
There are many features of labour.
There are no exceptions to the law of demand.
There are no exceptions to the law of supply.
There is difference between Micro Economics and Macro Economics.
There is difference between stock and supply.
There is direct relationship between price and quantity supplied.
There is no difference between the Central bank and a commercial bank.
There is no relationship between marginal utility and total utility.
Various factors influence Elasticity of Demand.
Various factors influence the demand for a commodity.

HSC ECONOMICS IMPORTANT EXPLANATORY ANSWERS FOR BOARD EXAM 2018

Explain any ‘two methods’ of measuring price elasticity of demand.
Explain the practical difficulties involved in the measurement of national income.
State and explain the law of demand with assumptions.
What is elasticity of demand? Explain the types of price elasticity of demand.
Explain Keynesian psychological law of consumption.
Explain in detail ‘saving function’ with schedule and diagram.
What is ‘elasticity of demand’? Explain the factors determining elasticity of demand.
What is ‘national income’ ? Explain the theoretical difficulties involved in the measurement of national income.
Explain the various methods of measuring national income.
What is aggregate supply? Explain the determinants of aggregate supply.
State and explain in detail the Law of Diminishing Marginal Utility.
Assumption to the Law of Diminishing Marginal Utility.
Exception to the Law of Diminishing Marginal Utility.
Define perfect competition and explain price determination under perfect competition.
What is Aggregate demand? Explain the determinants of Aggregate demand.
Exception to the Law of Demand.
What is perfect competition? Explain price determination under perfect competition.
What is national income. Explain how national income is measured by output method.
Explain Ratio method and Geometric method of measuring price elasticity of demand.
Explain the subjective and objective factors determining consumption function.
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