Goa Board Class 12 Question Paper June 2019 Economics

2019 VI 13 1430 Seat No.

Time : 2½ Hours ECONOMICS

Subject Code

H 6 5 2

Total No. Of Questions : 32 (Printed Pages : 10) Maximum Marks : 80

INSTRUCTIONS : (i) All questions in both sections are compulsory.

(ii) Marks for each question are indicated against each to
the right.

(iii) Question Nos. 1-5 and 17-21 are objective type questions
carrying 1 mark each.

(iv) Question Nos. 6-9 and 22-25 are short answer type
questions carrying 2 marks each. Answers to them
should normally not exceed 40 words each.

(v) Question Nos. 10-13 and 26-29 are also short answer
type questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.

(vi) Question Nos. 14-16 and 30-32 are long answer type
questions carrying 5 marks each. Answers to them
should normally not exceed 100 words each.

(vii) Answers should be brief and to the point and the above
word limits should be adhered to as far as possible.

(viii) Internal choice to be exercised in question Nos. 13, 16,
29 and 32.

(ix) Use of non-scientific calculators is not allowed.

(x) All diagrams should be drawn in Black lead pencil only.

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Section A

1. The problem of scarcity arises because our resources are ................... . 1

• Sufficient

• Unlimited

• Limited

• Vast

2. If a 40% fall in price is accompanied by a 20% extension in demand, the

elasticity of demand is ...................... . 1

• 2

• 0.5

• 0.2

• 5

3. When a larger quantity of the commodity is supplied at the same price, it

is called ..................... . 1

• Increase in supply

• Decrease in supply

• Extension of supply

• Contraction of supply

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4. If the proportionate change in factor output is less than the proportionate

change in factor input, it is called .................... . 1

• Positive returns to scale

• Increasing returns to scale

• Constant returns to scale

• Decreasing returns to scale

5. The form of market in which a large number of sellers sell a homogeneous

product at an uniform price is ..................... . 1

• Oligopoly

• Perfect competition

• Monopoly

• Monopolistic competition

6. A consumer with a budget of ` 20 wants to buy two goods that are equally

priced at ` 5 per unit. 2

List 4 examples of consumption bundles that the consumer can buy.

7. The table given below, shows the expenditure incurred by firm A on production

in the current year. Calculate the following : 2

(i) Variable cost of the firm

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(ii) Total cost of the firm.

Items Expenditure (in `)

Payment towards daily wages 1,50,000

Payment for purchasing rawmaterial 3,00,000

Cost of machinery 5,00,000

8. Identify the market structure for the following : 2

(i) Railway transport in India

(ii) Auto industry in India

9. Explain two features of monopolistic competition. 2

10. Define the following concepts : 3

(i) Giffen goods

(ii) Demand curve

(iii) Perfectly inelastic demand

11. Identify the nature of the goods in the following situations : 3

(i) When the price of good ‘A’ increases the demand for good ‘B’ also

increases.

(ii) When the income of the consumer decreases, the demand for commodity

‘X’ also decreases.

(iii) When there is an increase in the price of cars, the demand for petrol

decreases.

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12. What is meant by the following : 3

(i) Production function

(ii) Marginal revenue

(iii) Average product

13. State and explain the law of variable proportions with the help of a neat,

labelled diagram. 3

Or

State and explain the law of supply with the help of a neat, labelled

diagram.

14. State and explain the law of Diminishing Marginal Utility with the help of

a schedule and a neat labelled diagram. 5

15. Explain expansion and contraction of demand with the help of neat labelled

diagrams. 5

16. State and explain with the help of neat labelled diagrams the effect on the

equilibrium price when : 5

(i) Demand increases and supply remains constant

(ii) Demand decreases and supply remains constant

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Or

State and explain with the help of neat labelled diagrams the effect on the

equilibrium price when :

(i) Supply increases and demand remains constant

(ii) Supply decreases and demand remains constant

Section B

17. If the income is ` 100 lakhs and if consumption is ` 60 lakhs, then APC

will be .................. . 1

• 0.6

• 6

• 1.6

• 0.8

18. The expenditure incurred by households on the purchase of goods and services

at different levels of income during a year is called ................. . 1

• Private consumption expenditure

• Private investment expenditure

• Net export expenditure

• Government expenditure

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19. The annual statement of the estimated receipts and expenditure of the

Government of the financial year is known as .................... . 1

• Expenditure

• Account

• Income estimates

• Budget

20. The price of one currency in terms of another is known as .................. . 1

• Balance of payment

• Foreign exchange rate

• Devaluation

• Interest rate

21. The function of the foreign exchange market that protects buyers and

sellers in the International trade from variations in the exchange rate is

called .................... . 1

• The transfer function

• The credit function

• The hedging function

• The borrowing function

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22. In an economy investment increases by ` 1,000 crores as a result income

increases by ` 4,000 crores. What is the value of multiplier ? 2

23. If the following changes are introduced by the Reserve Bank of India state

how it will affect the money supply in the economy.

(i) Rise in CRR.

(ii) Purchase of securities by the RBI in the open market.

(iii) Increase in the margin requirement from 40% to 60%.

(iv) A reduction in the statutory liquidity ratio.

24. From the information given below calculate primary deficit ................... . 2

(i) Fiscal deficit ` 10,000

(ii) Interest payment ` 2,000

(iii) Revenue receipt ` 5,000

25. Define the following : 2

(i) Direct Tax

(ii) Escheat

26. What is meant by the following : 3

(i) Personal disposable income

(ii) Gross domestic product at factor cost

(iii) Externalities

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27. Classify the following transactions into current account or capital account : 3

(i) Services exported

(ii) Foreign direct investment

(iii) Unilateral transfers

(iv) Long term loan

(v) The sale and purchase of gold

(vi) The import of goods

28. Define the following concepts : 3

(i) Transactions motive

(ii) Precautionary motive

(iii) Speculative motive

29. State and explain the savings function with the hlep of a neat labelled

diagram. 3

Or

State and explain the consumption function with the help of a neat labelled

diagram.

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30. What is meant by excess and deficient demand ? Explain any four fiscal

measures to correct excess and deficient demand. 5

31. Explain any five functions of the Central Bank. 5

32. Explain the Income Method of Estimating National Income. 5

Or

Explain the expenditure method of estimating National Income.

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