MP Board Class 12 Question Paper 2020 for Business Economics

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E-827 Roll No.

Higher Secondary Examination (Regular) - 2020

alltit11 ct) 3.1APIM
BUSINESS ECONOMICS
(Hindi & English Versions)

Total Total Printed Time : Maximum
Questions : 26 Pages : 8 3 Hours Marks : 100

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ions :
All questions are compulsory to solve.
Question Nos. 1 to 5 are objective type questions which contain - Choose the
correct answer, Fill in the blanks, Match the columns, True/False and Give answer
in one word / sentence. Each question is allotted 5 marks.
Question Nos. 6 to 10 are very short answer type questions, each carries 2 marks,
the word limit is 30 words.
Question Nos. 11 to 14 are short answer type questions, each carries 3 marks,
the word limit is 75 words.
Question Nos. 15 to 21 are long answer type questions, each carries 4 marks,
the word limit is 120 words.
Question Nos. 22 to 26 are very long answer type questions, each carries 5 marks,
the word limit is 150 words.

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Choose and write the correct options :
Macro economics focuses on all of the following except :
(a) Unemployment problem (b) Money inflation in Economy
(c) Aggregate Demand (d) Jute Industry
Consumption of every additional unit of commodity brings utility -
(a) Diminishing (b) Increasing
(c) Remains constant (d) Zero
The ratio of exchange between two goods in indifference curve analysis
is shown by -
(a) The price line (b) The indifference curve
(c) The indifference map (d) All of the above
Which of the following is an example of complementary goods ?
(a) Tea and Coffee (b) Coke and Pepsi
(c) Rice and Wheat (d) None of these
Expansion in demand occurs due to -
(a) Rise in price of the given commodity
(b) Fall in price of the given commodity
(c) Rise in price of substitute goods
(d) Fall in price of complementary goods

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11 in the blanks :
There are means of production.
) Average revenue is also called as of commodity.
i) Supply of a commodity is a part of its
) The law of supply does not apply to commodities.
) The price of a commodity is fixed at a point where demand for a
commodity is to supply of a commodity.

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atch the columns :
A
) Relationship of demand for a (i) 1935
commodity
) Relationship of supply of (ii) Banking Act, 1949
a commodity
) The Reserve Bank of India (iii) Commercial Banks
started
) Banks are regulated by (iv) By cost of commodity
(t) Accepting public deposits (v) By law of demand

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Write True/False :
(i) The increase in population does not at all affect the per ccoita
income.
(ii) Net national product is called aggregate supply. r
(iii) Autonomous investment has no relation with national incme.
(iv) The ' theory of employment of Keynes is also called ciaand
deficiency theory.
(v) Full employment never means zero unemployment.

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Answer the following questions in one word/sentence : CO
(i) Who presents the government budget ?
(ii) What do you call the price of country's currency in terms of the price
of other country's currency ?
(iii) Of which is balance of trade a part ?
(iv) What is meant by deflation ?
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(v) Why is exchange control policy adopted ?

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What is budget line ?
3TzT-4T / OR
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What do you mean by a normal good ?

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When do we say there is excess demand for a commodity in the market ?
Explain.
.3Tarm / OR
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When do we say there is excess supplyfor a commodity in the market ?
Explain. co
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What is meant by monopolistic competition ?
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am-4i / OR
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What do you mean by perfect compelition ?

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What is meant by National Income 7--1
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zizi4T / OR
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- What is meant by Gross Domestic Product ?

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I State characteristics of the Budget. EN-)
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zitrm / OR
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What is meant by Deficit Budget ?

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• What do you mean by complements t?'' Give examples of two goods
I which are complements of each other.
zierm / OR
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What do you mean by "Monotonic preferences" ?

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What is inferior goods ? Give examples. (any three)
ziemi / OR
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Explain the consumer's Budget.

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Explain the relationship betWeen the marginal products and the
total product of an input.
aiam / OR
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What is the law 'of diminishing marginal product ?

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What is a barter system ? What are its drawbacks ?
WRi / OR
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Explain the functions of a commercial bank.

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What do you understand by normative economic analysis ?
Zro-T4T / OR
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Distinguish between a centrally planned economy and a market
economy.

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What is the supply curve of a firm in the short run ?
/ OR
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What are the characteristics of a perfectly competitive market ?

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What are the four factors of production and what are the remunerations
to each of these called ?
arT4T / OR
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Write down some of the limitations of using GDP as an index of welfare
of a country.

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18 t I •cbi I %? ft-41 tiR mr wrurT2rI 4
What are the functions of money ? Explain any four.
Gi4-4( / OR
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What is transaction demand for money ? How is it related to the value
of transactions over a specified period of time ?

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What is marginal propensity to consume ? How is it related to marginal
propensity to save ?
/ OR
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Explain 'Paradox' of thrift.

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Distinguish between revenue expenditure and capital expenditure.
A'atqi / OR
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Why public goods must be provided by the government ? Explain.

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Distinguish between the nominal exchange rate and the real' exchange
rate. If you were to decide whether to buy domestic goods or foreign
goods, which rate would be more relevant ? Explain.
aTelAT / OR
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Discuss some of the exchange rate arrangements that countries have
entered into to bring about stability in their external accounts.

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Why the budget line is downward sloping ? Explain.
at*: / OR
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Explain factors determining thrice elasticity of demand.

23 3-6[1: i *its Mt k 6 t cbltul W-14-114 I 5
Explain causes of the operatioFpf Law of Diminishing Returns.
aft / OR
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What does the average fixed cat curve look like ? Why does it look so ?

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Explain market equilibrium. tN)
/ OR
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If the price of a substitute (Y) g,good (X) increases what impact does
it have on the equilibrium pri&-' and quantity of good X ?

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Explain the significance of National Income.
Atm / OR
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Explain the causes of slow grth of National Income in India.
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Ekplain merits of a good money material.
arar41 / OR
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Explain — Evils of Money.

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