AHSEC Class 12 Economics Question Paper 2020

The figures in the margin indicate full marks for the questions

PART – A

1. (a) What does a Production Possibility Curve indicate?                 1

(b) If an increase in the price of good X increases the demand for good Y, then how the two goods are related?            1

(c) Total Variable Cost (TVC) will be _______, when total product is zero. (Fill in the blank)        1

(d) A firm earns normal profit when –              1

(e) In a centrally planned economy, which of the following takes all economic decisions?      1

(f) What are the shapes of AR and MR curve for a firm under non-competitive market structure?  1

2. Mention two reasons that give rise to economic problems.                     2

3. What is a budget line? Why does it slop downward?                   1+1=2

4. If a unit tax is imposed, how does it impact the short-run supply curve a firm? Show with the help of diagram.                        2

5. What is ‘break-even point’ of a firm? At which point of the AC curve, a firm under perfect competition breaks-even? 1+1=2

6. What does price elasticity of supply mean? Briefly explain.              2

7. What is a monopolistic competitive market?                   2

8. Discuss four features of indifference curve.                    4

9. Define and draw average cost and average variable cost curve. Why these two curves can’t touch each other?                3+1=4

Or

The Total Cost (TC) scheduled of a production unit is given below. Find out TFC, TVC, AC and MC.

10. Mention four differences between perfect competition and monopoly.               4

11. The demand and supply functions of a commodity is given by

Or

Explain with the help of a diagram, how shifting of the supply curve of a commodity affects its equilibrium price and output.              4

12. What do you understand by returns to a scale? Write the meaning of constant, increasing and decreasing returns to scale.             1+3=4

Or

State the reasons behind the working of the law of diminishing marginal product.                    4

13. State and explain the law of demand with the help of an imaginary scheduled and diagram.  6

Or

Calculate price elasticity of demand by expenditure method:

14. Define:

Explain the relation between AP and MP with the help of suitable diagram.         1+1+1+3=6

Or

PART – B

15. (a) What is the relation between MPC and MPS?                       1

(b) What is investment?                       1

(c) What do you mean by ‘velocity of circulation’ of money?                       1

(d) Who is known as the ‘lender of last resort’?                         1

(e) What is government budget?                      1

(f) In which year GST came into effect in India?                  1

16. Define intermediate good. How intermediate goods are different from capital goods?                           1+1=2

17. What is investment multiplier? If Rs. 200 crore increases in investment increases income by Rs. 800 crore, then what will be the value of investment multiplier?                  1+1=2

18. Write the differences between ex-ante investment and ex-post investment.                 2

19. Mention two points of superiority of Selective Credit Measures over Quantitative Credit Control Measures.                 2

20. Write two differences between revenue expenditure and capital expenditure.                2

21. What do you mean by devaluation of currency? How does it affect the import of a country?    1+1=2

22. Define GDP, Can GDP be used as an index of welfare of a country? Justify your answer.    1+3=4

23. How does the central bank use its quantitative credit control measures to control inflationary situation of an economy?                     4

Or

Write a note on ‘demonetization’.                   4

24. What is a Deficit Budget? Why is deficit budget is considered beneficial than a surplus budget for a developing economy?                   1+3=4

25. Mention four differences between Direct taxes and Indirect taxes.                  4

26. (1) What is balance of payment?                        1

(2) What are the two main components of balance of payment?                       1

(3) Write two differences between balance of payment and balance of trade.           2

Or

Write briefly about:                    2+2=4

27. Explain the procedure of calculating National Income by value-added method.             6

Or

From the data given below calculated:

28. Explain the process of equilibrium income determination of an economy with the use of aggregate demand and aggregate supply curves.         6

Or

What is aggregate demand? Discuss the components of aggregate demand.          1+5=6