Important Questions for CBSE Class 9 Social Science Chapter 6 Population

IMPORTANT QUESTIONS

Very Short Answer Type Questions (1 Mark each)

Question.1. Name the organisation which provide us with information regarding the population of our country.
Answer. The Census of India.

Question.2. State the position of India in terms of population size.
Answer. Second.

Question.3. State the total population of India according to the 2011 census.
Answer. Around 1210.2 million.

Question.4. Which is the (i) most populous state of India?
(ii) The least populous state of India?
Answer. (i) Most populous – Uttar Pradesh
(ii) Least populous – Sikkim.

Question.5. State the total percentage which India accounts to the total population of the world?
Answer. About 16.7 per cent.

Question.6. What is India’s share in the-total area of the world ?
Answer. Around 2.4 per cent.

Question.7. What is the annual growth rate of population of India?
Answer. Approximately 1.58 per cent.

Question.8. Which is the most densely populated country of the world ?[C.B.S.E 1985]
Answer. India, about 382 persons per sq km.

Question.9. Which is the most populated country, in terms of population size?
Answer. China.

Question.10. How would you define the term ‘density of population’ ?
Answer. Number of persons living per unit of area (per sq km).

Question.11. What is the growth of population ?
Answer. It refers to the change in the number of inhabitants of a country/territory during a specific period of time.

Question.12. ‘Growth of population is expressed in two ways.’ Mention.
Answer. (i) Absolute number.
(ii) Percentage change.

Question.13. Define the annual growth rate of population.
Answer. It is the rate of increase of population in the base population.

Question.14. Name the state having the highest and the lowest density of population.
Answer. The state having the highest density of population is Bihar (1102 persons per square km) and the lowest is Arunachal Pradesh (17 persons per square km). Both these are approximate figures.

Question.15. State two factors which affect the distribution of the density of population.
Answer. (i) Climate
(ii) Natural resources

Question.16. State any two implications of the high density of population.
Answer. (i) Poverty
(ii) Unemployment

Question.17. Give two reasons responsible for unfavourable sex-ratio.
Answer. (i) Women are often done to death by dowry seekers.
(ii) Lack of education and orthodox customs also go against women folk.

Question.18. What do you understand by the growth rate ?
Answer. The‘growth rate’is the annual percentage increase in the population of a country.

Question.19. Why is the North India, plain thickly populated ? Give two reasons.[CBSE2014]
Answer. (i) The soil of the region is fertile.
(ii) There are large number of factories in this area which provide employment opportunities.

Question.20. Why is there less population in Rajasthan ?
Answer. (i) The soil in Rajasthan is less fertile.
(ii) The climate of the region is of extreme type.

Question.21. Define the term ‘birth rate.’
Answer. The ‘birth rate’ is the proportion of the number of births in a place in particular duration to the total population, usually expressed as a quantity per thousand people per year.

Question.22. What is death rate ?
Answer. The number of deaths per thousand persons in a year is called as the ‘death rate’.

Question.23. What is migration ?
Answer. It is the movement of people across regions and territories.

Question.24. What is internal migration ?
Answer. The movement of people within the country.

Question.25. What is external migration ?
Answer. The movement of people across the countries.

Question.26. What is the dependent ratio of population ?
Answer. Dependent ratio is the ratio between the economically working population and the dependent population.

Question.27. The sex ratio in rural areas is some what higher than in urban areas. Give one possible cause for it.
Answer. Migration of male members to the cities in search of jobs.

Question.28. Migration is an important determinant of population change. Give reason.
Answer. Migration changes not only the population size but also the population composition of urban and rural populations in terms of age and sex composition.

Question.29. What is age composition ?
Answer. It refers to the number of people in different age groups in a country.

Question.30. What is sex ratio ? [CBSE 2015]
Answer. The number of females per 1,000 males in the population.

Question.31. Who is literate ?
Answer. According to the Census of2001, a person aged 7 years and above who can read and write with understanding in any language, is treated as literate.

Question.32. What is occupational structure?
Answer. The distribution of the population according to different types of occupation is referred as the occupational structure.

Question.33. What is census ?
Answer. The census is a count of population of a country. In India, it takes place after every ten years. The last census in India was held in 2011. It is an enquiry based on questionnaire.

Question.34. Give two reasons for the migration of people from the rural to urban areas in India.
Answer. (i) Rising population in rural areas.
(ii) Lack of demand for labour in agriculture.

Question.35. Name any two states with high density of population ?
Answer. (i) Bihar
(ii) West Bengal

Question.36. Name any four states with low density of population ?
Answer. (i) Mizoram
(ii) Jammu and Kashmir
(iii) Nagaland
(iv) Manipur.

Question.37. What is the sex ratio in India ?
Answer. According to 2011 Census, the sex ratio in India is 940.

Question.38. What is the literacy level in India?
Answer. 74.04 per cent (2011 Census).
Male-82.14 Female – 65.46

Question.39. What is life expectancy in India?
Answer. Around 65.48 years.

Short Answer Type Questions (3 Marks)

Question.1. “The people are important to develop the economy and society .”Explain.
Or
What .is the importance of studying population ?
Answer. (i) The people make and use resources and are themselves resources with varying quality.
(ii) It is the point of reference from which all other elements are observed and from which they derive significance and meaning.
(iii) “Resources’, ‘calamities and ‘disasters’ are all meaningful only in relation to human beings. Their numbers,
distribution, growth and characteristics or qualities provide the basic background for understanding and appreciating all aspects of the environment.
(iv) Human beings are producers and consumers of earth’s resources.
Therefore, it is important to know how many people are there in a country, where do they five, how and why their numbers are increasing and what are their characteristics.

Question.2. “Assam and most of the Penin-sular states have moderate population densities.” Give three reasons.
Answer. (i) The region has hilly,dissected and rocky terrain.
(ii) The region receives moderate to low rainfall.
(iii) The region has shallow and less fertile soil.

Question.3. Mention the process of change of population.
Answer. (i) Birthrate (ii) Death rate
(iii) Migration

Question. 4. What are the major factors responsible for internal migration ?
Answer. In India, most migrations have been from the rural to the urban areas because of the “push” factor in rural areas. These are adverse conditions of poverty and unemployment in the rural areas and the “pull” of the city in terms of increased employment opportunities are better living conditions.

Question. 5. What is occupational structure ? Explain. [CBSE2011-2013]
Answer. Occupational structure refers to the distribution of work force among different occupations. Different occupations can be classified into three groups :
(i) Primary occupations
(ii) Secondary occupations
(iii) Tertiary occupations
(i) Primary Producers or Occupations : Those who grow natural products like crops, etc. and are mainly engaged in agriculture and allied activities.
(ii) Secondary Occupations : Those who are producing products with the help of machines like textiles, construction, etc.
(iii) Tertiary Occupations : Those who provide services like education, health services, banking, insurance, etc.
About 64 per cent population of India is still engaged in primary sector.

Question.6. Write short notes on the age composition of population and dependency.
Or
Categorize the population of a nation into three broad categories
on the basis of age composition and explain it. [CBSE March 2011]
Or
What is the relationship between age composition and dependency ratio ? Explain. [CBSE March 2011]
Or
What is the age composition of population? Into how many age groups is the population of a nation grouped ? Explain.
[CBSE March2012,2013]
Answer. The age composition of population refers to the number of people in different age groups in a country. It is one of the most basic characteristics of a population.
The age composition of population is expressed in three broad categories.
(i) Children below the working age (below 15 yrs) : They are economically unproductive, and need to be provided with food, clothing, education and medical care.
(ii) Persons in the working age (15 to 59 yrs): They are economically productive and biologically reproductive. They comprise the work population.
(iii) Old persons above the working age (above 59 yrs) : They can be economically productive, but need care.
Anyone, who is engaged in work and has the ability to do so is the part of the working population. The dependent population is either in the age group of below 15 years or in the age group of over 59 years.

Question.7. What is the difference between internal and external (international) migration ? [CBSE 2014]
Answer.

Question. 8. What is sex ratio ? Give two reasons responsible for an unfavourable sex ratio in India.
Answer. The number of females per thousand of males is called the sex ratio.
In 1901, the ratio was 1000 : 972 but it dropped to 1.000:940 in 2011. Main causes of the change of ratio are :
(i) Low social, economic and political status of women.
(ii) Dowry system is also responsible for this.
(iii) Parents also feel insecure if a girl child is bom.

Question. 9. What are the significant features of the National Population Policy 2000? [CBSE 2011,13,14]
Answer. (i) National Population Policy is a policy adopted by the Government of India in 2000.
(ii) It aims at stabilising the population by 2045.
(iii) It also lays emphasis on the economic growth, social development and environment protection.
The Policy states that it will achieve this goal by raising the age of marriage, making school education free and compulsory upto the age of 14 years and reducing dropouts at the primary and the secondary levels.

Long Answer Type Questions (5 Marks)

Question.1. What is the main cause of the rapid population growth in India?
[CBSE 2015]
Answer. (i) High Birth Rate and Low Death Rate: From 1921 to 2001, the death rate has fallen from 42.6 to 8.7 per thousand while the birth rate fell from 49.2 to 26.1 per thousand.
(ii) Poverty: Poor people have to spend little on the upbringing of their offsprings. Besides, the children supplement the family income.
(iii) Child Marriage: Early marriage is a common feature in India. About 90 per cent of girls are married in the age group of 15-20 years.
(iv) Low status of women; In India women have a low social status. They are treated merely as child producing machines.
(v) Illiteracy: Rate of illiteracy of 35 per cent is pretty high in India. Illiterate persons fail to understand the significance of family planning.

Question.2. Explain the process of population change.
Answer. There are three main processes of change of population: birth rates, death rates and migration. The natural increase of population is the difference between birth rates and death rates.
(i) Birth rate: Birth rate is the number of live births per thousand persons in a year. It is a major component of growth because in India, birth rates have always been higher than death rates.
(ii) Death rate : Death rate is the number of deaths per thousand persons in a year. The main cause of the rate of growth of the Indian population has been the rapid decline in death rates. Till 1980, high birth rates and declining death rates led to a large difference between birth rates and death rates resulting in higher rates of population growth. Since 1981, birth rates have also starred declining gradually, resulting in a gradual decline in the rate of population growth.
(iii) Migration – The third component of population growth is migration. Migration is the movement of people across regions and territories. Migration can be internal (within the country) or international (between the countries). Internal migration does not change the size of the : population, but influences the distribution of population within the nation. Migration plays a very significant role in changing the composition and distribution of population.

Question.3. Write an essay on the population distribution in India pointing out the geographical factors influencing the same.
Or
“Distribution of population in India is uneven.” Prove this statement with examples.[CBSE March 2012,13,15 ]
Answer. Distribution of population : The average density of population in India according to 2011 Census was about 382 persons per sq. km.
(i) Low density: The states of Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Aruna-chal Pradesh, Nagaland, Manipur, Tripura, Meghalaya, Rajasthan and Madhya Pradesh have very low to low population density. Rugged terrain and unfavourable climatic conditions are mainly responsible for the sparse population in these areas.
(ii) Moderate density: The bulk of the peninsular blocks and Assam have a moderate density of population. Distribution of population is influenced here by the rocky nature of the terrain, low to moderate rain, and shallow and less fertile soil.
(iii) High density: The Northern Plains, Tamil Nadu and Kerala have high to very high density of population because of the plain terrain, rich and fertile soil, abundant rainfall and moderate climate.

Higher Drder Thinking Skills (Hots) Questions/Application Based Questions

Question.1.Study the given figure carefully, and answer the following questions :

(i) Which state has the highest share in population ?
(ii) Which state has’the lowest share in population ?
(iii) What is the share of Bihar in the India’s population ?
Answer. (i) Uttar Pradesh
(ii) Andhra Pradesh
(iii) 8.02%

Question.2. Study the above data carefully and answer the following questions :

The magnitude and rate of India’s population growth
(i) What was India’s population in 1951 ?
(ii) What was India’s population in 2011 ?
(iii) What was absolute increase in India’s Population from 2001 to 2011 ?
(iv) Which decade has lowest annual growth rate ?
Answer. (i) 361 million
(ii) 1210.1 million
(iii) 1210.1 – 1028.7 = 181.4 million
(iv) 1951

Question.3. Study the given figure carefully and answer the following questions:
(i) Which age group has the maximum share in the population ?
(ii) What do you mean by the working population ?
(iii) What is India’s working population ?

Answer. (i) 15-59 years age group, i.e., 58.7per cent.
(ii) Anyone who is engaged in productive work and has the ability to do so is a part of the working population.
(iii) 58.7%

Question.4.

(i) What is sex ratio ?
(ii) What is India’s sex ratio in 2011 ?
(iii) Is sex ratio in the country favourable to females ?
(iv) Give one reason for unfavourable sex ratio in India.
Answer. (i) Number of females per 1,000 males in the population.
(ii) 940 females per 1000 males.
(iii) No, it is unfavourable to females.
(iv) Illiteracy.

Value Based Questions

Question.1. Kerala has a sex ratio of 1084. Which moral value this data provides us?
Answer. There is gender equality.

Question.2. The literacy rate in India is 74.40,82.14 for males and 65.46 for females. What does this indicates?
Answer. Gender inequality

Question.3. Mention any two ways to improve the status of women in India ?
Answer. (i) Reservation of seats in the Parliament for women. .
(ii) Improve literacy rate.

Question.4. Suggest any three ways to control the rapid growth of population in India?
Answer. (i) Spread of education (ii) Late marriage (iii) New population policy

Question.5. Who is treated as literate in India ? What is importance of literacy ?
Answer. According to the census of 2011, a person aged 7 years and above who can read and write with understanding in any language, is treated as literate.
Importance
(i) Only an informed and educated citizen can make intelligent choice and undertake research and development projects.
(ii) Literate citizens become human resource.

Question.6. “The percentage of population that is economically active is an important index of development.”Explain.
Answer. (i) Economic growth is directly dependent on human resources.
(ii) In countries like a very high percentage of population is economically active so these countries have achieved a very high economic growth rate.
(iii) In most of the developing nations the dependency ratio is very high so economic growth rate remains low.

Question.7. “Health situation in India is still a cause for serious concern”. Give reasons.
Answer. (i) Public health facilities only for
few: At present, less than 20 per cent of the population utilises public health facilities. One study has pointed out that only 38 per cent of the PHCs have the required number of doctors and only 30 per cent of the PHCs have sufficient stock of medicines.
(ii) Poor health facilities in rural India: Though 70 per cent of India’s population lives in rural areas, only one-fifth of its hospitals are located in rural areas. Rural India has only about half the number of dispensaries.
(iii) Poor health status for women :
More than 50 percent of married women between the age group of 15 and 49 have anaemia and nutritional anaemia caused by iron deficiency, which has contributed to 19 percent of maternal deaths.

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Important  Questions for CBSE Class 9 Social Science Electoral Politics

Important Questions

Very Short Answer Type Duestinns (l Mark each)

Question.1. What are elections? [CBSE 2014,15]
Answer. It is a mechanism by which people can choose their representatives at regular intervals, and change them if they wish to do so.

Question.2. “Elections are considered essential for any representative democracy.” Why?
Answer. (i) In a representative democracy, people rule through their representatives.
(ii) It gives an opportunity to the people to decide, who will make laws for them.

Question.3. What is a constituency ?[CBSE 2014,15]
Answer. For elections, the entire country is divided into fixed electoral areas with a body of registred voters. These areas are called constituencies.

Question.4. Mention any two disadvan-tages of having political competition.
Answer. (i) It creates a sense of disunity and factionalism.
(ii) Parties and candidates often use dirty tricks to win elections.

Question.5. What is the importance of electoral competition ?
Answer. (i) Regular electoral competition provides incentives to political
parties and leaders. They know that if they raise issues that people want to be raised, their popularity and chances of victory will increase in the next elections. But if they fail to satisfy the voters with their work, they will not be able to win again.
(ii) If a political party is motivated only by desire to be in power, even then, it will be forced to serve the people.

Question.6. What is an Electoral Roll or Voter’s List ? What is its importance ?
Answer. It is a list which carries the names of the persons who are eligible to vote.
It is important because a voter can caste his/her vote if his/her name is in the voter’s list.

Question.7. What is Universal Adult Franchise ?
Answer. Every citizen of India who is 18 years of age or above has the right to vote without any discrimination of caste, creed, colour, sex, religion etc.

Question.8. What kind of people can he denied to vote in India ?
Answer. Some criminals and persons with unsound mind.

Question.9. Mention any two points relating to the Model Code of Conduct for election campaigns.
Answer. (i) No candidate can use any place of worship for election propaganda.
(ii) No party can use government vehicle for elections.

Question.10. What is the difference between a voter and a candidate ?
Answer. Voter : A person who elects the candidates is a voter. All the citizens, who attain the age of 18 years become voters.
Candidate : A person who contests the election is known as a candidate. In order to be a candidate, the minimum age is 25 years.

Question.11. What is an EVM ? [CBSE 2014]
Answer. It is an Electronic Voting Machine (EVM) which is used to record votes. The machine shows the names of the candidates and the symbols.

Question.12. What is the importance of elections in a democracy?
Answer. (i) Elections are the axis of democracy.
(ii) If the government is not working according to the wishes of the people, the voters can change it through elections.

Question.13. Define Election Commission.
Answer. The entire process of elections in our country is conducted, controlled and supervised by an independent body called the Election Commission.

Question.14. Mention two functions of the Election Commission.
Answer. (i) It grants recognition to political parties.
(ii) It allots symbols to candidates and political parties.

Question.15. Who appoints the Chief Election Commissioner ?
Answer. The President of India.

Question.16. Mention any two provisions which ensure the independency of the Election Commission.
Answer. (i) The Chief Election Commissioner (CEC) is appointed by the President of India. But once appointed, he/she is not answerable to the President or the Government.
(ii) It has a fixed tenure of five years.

Question.17. What is ballot paper ? Name the machine by which these papers have been replaced.
Answer. A ballot paper is a sheet of paper on which the names of the contesting candidates along with the party name and symbols are fisted. These are being replaced by the electronic voting machines.

Question.18. Why are the candidates required to give a detailed statement of their property and other details?
Answer. (i) This provides an opportunity to the voters to make their decisions and to choose the right candidate.
(ii) The candidates also provide details of the assets and liabilities. Through this, the voters can judge how much the candidate has earned from one election to another.

Question.19. When government officers work in election duty, are they under the control of the Election Commission or the Government ? Give reason.
Answer. They work under the control of Election Commission. This is done to conduct free and fair elections, so that the party in power is not in a position to misuse the government machinery.

Short Answer Type Questions (3 Marks)

Question. 1. (i) What are elections?
(ii) “Elections are considered essential for any represen¬tative demo cracy.” Why ?
(iii) What is a constituency ?
Answer. (i) It is a mechanism by which people can choose their representatives at regular intervals and change them if they wish to do so.
(ii) (a) In a representative democracy, people rule through their representatives. ,
(b) It gives an opportunity to the people to decide who will make laws for them.
(iii) For elections, the entire country is divided into fixed electoral areas with a body of registered voters. These areas are called constituencies.

Question. 2. What makes elections in India democratic ? Explain.[CBSE 2013,14,15]
Answer. (i) An Independent Election
Commission : In our country, elections are conducted by an independent and a very powerful Election Commission (EC). It enjoys the same kind of independence that the judiciary enjoys. The Chief Election Commissioner (CEC) is appointed by the President Of India. But once appointed, the Chief Election Commissioner (CEC) is not answerable to the President or the government. Even if the ruling party or the government does not like what the Commission does, it is virtually impossible for it to remove the CEC.
(ii) Popular Participation: In India, the poor, illiterate and underprivileged people vote in larger proportion as compared to the rich and the privileged sections. This is in contrast to western democracies. For example, in the United States of America, poor people, African-Americans and Hispanics vote much less than the rich and the white people.
(iii) Acceptance of election outcome: The outcome of India’s elections speaks for itself. The ruling parties routinely lose elections in India, both at the national and the state levels. In fact, in every two out of the three, elections held in the last fifteen years, the ruling party lost the power.

Question.3. Mention any three provisions which makes Election Commis-sion an independent body.
Answer. (i) The Chief Election Commis-sioner
(CEC) is appointed by the President of India.
But once appointed, the Chief Election Commissioner is not answerable to the President or the government.
(ii) During the election period, the EC can order the government to follow some guidelines, to prevent use and misuse of governmental power to enhance its chances to win elections, or to transfer some govem-ment officials.
(iii) When on election duty, government officers work under the control of the EC and not the government.

Long Answer Type Questions (5 Marks)

Question. 1. Explain the role of the Election Commission in free and fair elections. [CBSE 2013]
Answer. Functions of the Election Commission of India:
(i) Allotment of Election Symbols :
The political parties of national standing are allotted permanent election symbols. These symbols help even an ordinary man to recognise the different parties instantly.
(ii) Preparation of Electoral Rolls :
Electoral Rolls are prepared in which the name, father’s name, age and sex of the voters are clearly mentioned.
(iii) Delimitation of Constituencies : The whole area where elections are held, is divided into so many clear-cut constituencies, so that flections are held in an organised way.
(iv) Fixing the Election Dates : The
Election date is announced so that the voters could easily cast their votes on that particular date.
(v) Scrutiny (careful examination) of Nomination Papers : The
candidates willing to contest the elections have to file the nominations up to a particular date. Then the Election Commission scrutinizes their papers and accepts or rejects the nomination papers as the case : may be.
(vi) Checking Undue Interfer-ence of the Party-in-Power:
Important duty of the Election
Commission is to see that the party in power does in no way take an advantage over other parties or individuals.

Question. 2. What is an election ? Discuss the importance of elections in a democracy.
Answer. An election is a contest between different political parties in order to get people’s support. Elections are exceptionally important in a democracy because of the following reasons:
(i) Without the elections, a democratic government cannot be set up. It has been rightly said, “ No election, no democracy.”
(ii) Through elections alone, the people can get rid of their cruel and unpopular government, and in its place, they can elect a new popular government.
(iii) It is through elections alone that an effective control can be maintained on the executive.
All the citizens in a modern democracy cannot run the administration. Only their representatives can do it for them. In order to choose such represen¬tatives, the elections are a must.

Question.3. Explain any five conditions for free and fair elections. [CBSE 2014,15]
Answer. (i) One vote one value : Everyone should be able to choose. This means that everyone should have one vote and every vote should have equal value.
(ii) Multiple choices : There should be something to choose from. Parties and candidates should be free to contest elections and should offer some real choice to the voters.
(iii) Choice at regular interval: The choice should be offered at regular intervals. Elections must be held regularly after every few years.
(iv) All should have equal chance
of winning : The candidate preferred by the people should get elected.
(v) Free and fair elections : Elections should be conducted in a free and fair manner where people can choose as they really wish.

Higher Order Thinking Skills (Hots) Questions/Application Based Questions

Question.1. What is election campaign? What is its importance?
Answer. A political campaign or election campaign is an organized effort by political parties to win the trust of voters.
(i) Election campaign provide an opportunity to the voters to know about political parties, their main agenda and policies.
(ii) It provides opportunity to the political parties to make a direct contact with the voters.
(iii). During this period the candidates contact their voters, political leaders address election meetings and political parties mobilise their supporters. This is also the period when newspapers and television news are full of election related stories and debates.

Question.2. How does our Election Law regulate campaigns 1[CBSE March2011,2012]
Answer. It is necessary to regulate campaign to ensure that every political party and candidate gets a fair and equal chance to compete. According to our election law, no party or candidate can :
(a) Bribe or threaten voters.
(b) Appeal to them in the name of caste or religion.
(c) Use government resources for election campaigns.
(d) Spend more than Rs. 25 lakhs in a constituency for a LokSabha election or Rs. 10 lakhs in a constituency in an Assembly election.

Question.3. What is model code of conduct for election campaign? Mention any three provisions of model code of conduct. [CBSE 2014]
Answer. These are some set of norms which each and every political party is expected to follow during election campaigns.
According to this, no party or candidate can:
(i) Use any place of worship for election propaganda;
(ii) Use government vehicles, aircrafts and officials for elections; and
(iii) Once elections are announced, Ministers shall not lay foundation stones of any projects, take any big policy decisions or make any promises of providing public facilities.

Value Based Questions

Question.1. What is a reserved consti-tuency ? Why is there need for a reserved constituency ? [CBSE 2014]
Answer. These are the constituencies which are reserved for people who belong to the Scheduled Castes [SC] and Scheduled Tribes [ST]. In a SC reserved constituency only someone who belongs to the Scheduled Castes can contest elections. Similarly only those belonging to the Scheduled Tribes can contest an election from a constituency reserved for ST.
Importance of reserved constituencies-
(i) Political equality for weaker sections: Our Constitution entitles every citizen to elect her/his representative and to be elected as a representative. The Constitution makers, however, were worried that in an open electoral competition, certain weaker sections may not stand a good chance to get elected to the Lok Sabha and the state Legislative Assemblies. They may not have the required resources, education and contacts to contest and win elections against others. Those who are influential and resourceful may prevent them from winning elections. If that happens, our Parliament and Assemblies would be deprived of the voice of a significant section of our population. That would make our democracy : less representative and less
democratic. So, the makers of our Constitution thought of a special system of reserved constituencies for the weaker sections.
(ii) Gender equality: Indian society is a male dominating society. So to provide them equal representation one-third of the seats are reserved in rural and urban local bodies for women candidates.

Question.2. What is principle of universal adult franchise ? What is its importance ?
Answer. According to universal adult franchise every citizen of India who is 18 years of age or above has the right to vote irrespective of his caste, colour, sex, gender etc.
Importance-
(i) It provides political equality.
(ii) Through universal adult franchise all are included in decision making. Different citizens differ from one another in many ways: some are rich, some are poor; some are highly educated, some are not so educated or not educated at all; some are kind, others are not so kind. But all of them are human beings with their own needs and views. That is why all of them deserve to have an equal say in decisions that affect them.

Question.3. Which moral value is reflected by the universal adult franchise?
Answer. Equality.

Question.4. “Sanjay Kumar, a citizen of India was not allowed to caste his vote as he was not having an Election Photo Identity Card (EPIC).” What is the purpose of an EPIC and what were the options available to Sanjay Kumar ?
Answer. The purpose of an Election Photo Identity Card (EPIC) is to make it sure that no one votes for someone else. Sanjay Kumar could have shown any other valid proof like ration card or the driving licence.

Question.5. When government officials work in election duty, are they under the control of the Election Commission or the Government ? Give reason.
Answer. They work under the control of Election Commision. This is done to conduct free and fair elections, so that the party in power is not a position to misuse the government machinery.

Question.6. Mention any three provisions of a Model Code of Conduct for election campaigns.
Answer. According to this-
(i) No party or candidate can use any place of worship for election propaganda.
(ii) Use government vehicles, aircrafts and officials for elections; and
(iii) Once elections are announced, Ministers shall not lay foundation stones of any projects, take any big policy decisions or make any promises of providing public facilities.

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CBSE Sample Papers for Class 12 Economics Delhi -2014

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
*Question.1 Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.
Answer. Due to measures taken by the government, Unemployment is reduced enabling the economy to shift from a point inside the PPF (Production Possibility Frontier) to a point close to or on the PPF, indicating optimum utilisation of resources, leaving the PPF itself unchanged.

Question.2 Define budget set.
Answer. Budget set refers to the set of all possible combinations of the two goods that the consumer can afford to buy from his income at given prices.

Question.3 What is meant by revenue in microeconomics?
Answer. Revenue means market value of output or money receivable from the sale of output.

Question.4 Give meaning of ‘returns to a factor
Answer. By returns to a factor we mean a change in the physical output of a good when only the . quantity of one input is increased keeping other inputs constant.

Question.5 What is perfect oligopoly?
Answer. If in an oligopoly market the firms produce homogeneous products, it is called perfect oligopoly, e.g., steel industry.

Question.6 Explain the central problem ‘for whom to produce.
Answer. This problem is concerned with the distribution of goods and services in the economy. Goods are produced for those people, who have the capacity to buy which depends upon their level of income. It means that this problem is concerned with the distribution of income among the factors of production in the form of rent, wages, interest and profit. The guiding principle is to fulfill the urgent wants of each factor of production to the maximum possible extent.

Question.7 A consumer buys 18 units of a good at a price of Rs 9 per unit. The price elasticity of demand for the good is (-) 1. How many units the consumer will buy at a price Rs 10 per unit? Calculate.
Solution.

Question.8 State the relation between marginal revenue and average revenue.
Answer.

Or
State the relation between total cost and marginal cost
Answer.
Relation between TC and MC:

1.  Wheii’TC ftotal cost) rises at a diminishing rate, MC (marginal cost) decreases.
2.  When rate of increase in TC stops diminishing, MC is at its minimum point,
3.  When TC rises at an increasing rate, MC increases.
4.  MC is calculated from TC as under
   MC= ΔTC/ΔQ     Or   MC_n=TC_n-TC_n-1

Question.9 What is the behaviour of average fixed cost as output is increased? Why is it so?
Answer. Average fixed cost (AFC) is, (he total fixed cost divided by the total output produced.
As TFC is constant in the short run, AFC fells continuously with every increase in output. Therefore, AEC curve becomes a rectangular hyperbola curve. It means that the rectangles formed below all the points on the AFC curve have the same area.

Question.10 Why are the firms said to be interdependent in an oligopoly market? Explain.
Answer. In an oligopoly market, a few firms dominate the market, a change in price and output by any individual firm is likely to influence the profits and output of the rival firms. This may invite reactions from the rival firms. Therefore, an individual firm must take into account the probable reactions of its rivals before setting his price and output. This makes the firms mutually dependent or interdependent on each other for taking price and output decisions.

Question.11 A consumer consumes only two goods. Explain consumer’s equilibrium with the help of utility analysis.
Answer. See Q. 14(Or) (ii), 2009 (I Delhi).
Or
A consumer consumes only two goods A and B and is in equilibrium. Show that when price of good B falls, demand for B rises. Answer this question with the help of utility analysis.

Answer.

It means that, after a fall in price of good B, MU (marginal utility) of last rupee spent on good B becomes greater than the MU of last rupee spent on good A, This induces the consumer to buy more of good B by transferring expenditure from good A to good B. This shows that when price of a good falls (PB in this case) its demand rises.

Question.12 What happens to the demand of a good when consumer’s income changes? Explain.
Answer.

Question.13 State the behaviour of marginal product in the law of variable proportions. Explain the causes of this behaviour.
Answer.

Increasingly unsuitable for production. Beyond a point increasing variable inputs puts pressure on fixed inputs leading to inefficiency.
Phase III. MB falls and becomes negative. This happens because the quantity of fixed input now becomes too small to accommodate the continuously rising variable input.

Question.14 Explain the conditions of consumer’s equilibrium with the help of the indifference curve analysis.
Answer. See Q. 14, 2010 (I Delhi).
Or
Explain the three properties of the indifference curves.
Answer. See Q. 15, 2011 (I Delhi).

Question.15 From the following information about a firm, find the firm’s equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also find profit at this output.

Answer.

The producer is in equilibrium at the 4th unit of output.
Reason: At the 3rd and the 4th unit of output level, the difference between TR and TC (i.e., profit) is the same. But the producer will be in equilibrium at the 4th unit because it is at this unit of output that bothihe equilibrium conditions are being satisfied, i.e.,
(i) MC = MR .
(ii)MC > MR after MC = MR output level.

Question.16 Market of a commodity is in equilibrium. Demand for the commodity “increases.” Explain the chain of effects of this change till the market reaches equilibrium again. Use diagram.

Answer. Market equilibrium is achieved when quantity demanded is equal to quantity supplied in the market.
Chain of effects. See Q. 16, 2011 (I Delhi).
Note: The following question is for the Blind, Candidates only in lieu of Q. No. 16.
Market of a commodity is in equilibrium. Demand for
the commodity “increases.” Explain the chain of effects of this change till the market reaches equilibrium again. Compare the prices at the old and new equilibrium
Ans. See Q. 16, 2011 (I Delhi).

SECTION B
Question.17 What are demand deposits?
Answer. A demand deposit is any deposit account which is payable on demand through cheque or otherwise.

Question.18 What is involuntary unemployment?
Answer. Involuntary unemployment means that part of the labour force of the Country which is willing to work but is not able to find jobs at the given wage rate.

Question.19 Define marginal propensity to consume.
Answer. MPC is the proportion of change in consumption expenditure to ‘change in income’
MPC=ΔC/ΔY

Question.20 Define government budget. 
Answer. A government budget is a financial statement showing item-wise estimated receipts and expenditure of the government under various heads during a given year.

Question.21 Give meaning of balance of trade.
Answer. Balance of trade shows the balance of imports and exports of visible goods during a given year.

Question.22 Define externalities. Give an example of negative externality. What is its impact on welfare?
Answer. Externalities refer to the benefits or harms of an activity caused by a firm or an individual for which they are not paid or penalised. Activities resulting in harm to others are called negative externalities.
For example, factories produce goods but at the same time pollute environment which harms people. Production of goods increases welfare but creating pollution reduces welfare, which is not indicated by GDP.

Question.23 Explain the significance of ‘store of value’ function of money.
Answer. See Q. 23, 2012 (I Delhi).
Or
Explain the significance of ‘medium of exchange’ function of money.
Money as a medium of exchange means money as a means of payment for exchange of goods and services. This function of money solves the problem of double coincidence of wants inherent in the barter system of trade. Money is essential for conducting transactions in a market economy.

Question.24 Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

1.  Expenditure on collection of taxes.
2.  Expenditure on purchasing computers.

Answer.

1.  Expenditure on collection of taxes. It is a revenue expenditure as it neither creates any asset nor reduces any  liability of the government.
2. Expenditure on purchasing computers! It is a capital expenditure as it results in
   Creation of assets.

Question.25 Explain the meaning of balance of payments deficit.
Answer. The transactions recorded in BOP (Balance of Payments) accounts are classified as autonomous transactions and accommodating transactions. Autonomous transactions take place due to some economic consideration such as profit. When the total inflows on account of autonomous transactions are less than the total outflows on account of such transactions, there is a deficit in BOP account.

Question.26 Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Answer.

Question.27 Define money supply and explain its components.
Answer. Money supply refers to the stock of money in the country on a particular day. It is the total amount of coins and currency outside of banks and the total amount in withdrawable (by cheque) deposits.
Symbolically: M (Money Supply) = C (Currency with Public) + DD (Demand Deposits)

1.  Currency with public. Currency includes coins and currency notes which is held outside the banks by the public. It does not include currency held by the banks.
2. Demand Deposits. A demand deposit is any deposit on which a cheque can be written. Such deposits are payable on demand. Therefore, these are treated as equal – to currency held and are included in money supply.
   Or

Explain the “‘lender of last resort function of central bank.
Answer. Lender of the last resort. See Q. 28, 2012 (I Outside Delhi).

Question.28 Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1,000
Marginal propensity to save = 0.25
Autonomous consumption expenditure = 200
Solution.

*Question.29 Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.
Answer. The government, by raising its expenditure on producing public goods, tries to ensure economic and social welfare of the people by controlling depressionary tendencies in the economy and bringing economic stability. Economic stability means absence of fluctuations in prices. Such fluctuations Create uncertainties in the economy. Government can exercise control over these fluctuations by managing its expenditure.
For e.g., the government can counter deflationary trends in the economy by increasing its spending on public goods and welfare activities and thus accelerate the speed of economic development. As the public goods cannot be provided by the private sector through, market mechanism the government fulfils the needs of people by providing such goods.

Question.30 Calculate National Income and Gross National Disposable Income from the following:
                                                                                                                                                                   


Answer.

Question.31 Giving reason explain how should the following be treated in, estimating gross domestic product at market price?

1.  Fees to a mechanic paid by a firm.
2.  Interest paid by an individual on a car loan taken from a bank.
3. Expenditure on purchasing a car for use by a firm.

Answer.

1. Fees to a mechanic paid by a firm. It will be considered as intermediate expenditure of the firm and hence will not be included in GDP,MP
2. Interest paid by an individual on car loan taken from a bank. It will not be included .because the loan is taken to meet consumption expenditure. The interest is paid on
   loan for consumption purposes.
3. Expenditure on purchasing a car for use by a firm. It will be included as it is a final investment expenditure.

Question.32 Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also explain the changes that take place in an economy when the economy is not in equilibrium.
Answer.

Situation, inventories start falling and come below the desired level. To bring back the inventories to the desired level, the producers expand production. This raises the income level, which keeps on rising till AD and AS are equal again.
(ii) What happens when AD < AS. It means that the buyers are planning to buy less than what the producers are planning to produce. As a result, inventories start rising and move above the desired level. So the producers cut back on production and lay off workers. This reduces the income level, i.e., AS. This downward trend continues till AD and AS once again become equal.
Or
Outline the steps required to be taken in deriving saving curve from the given consumption curve. Use diagram.
Answer. Saving function refers to the functional relationship between saving and income.
Consumption and saving curves are complementary curves as they together make up

Note: The following question is for the Blind Candidates only in lieu of Q. No. 32.
Define aggregate demand. Explain national income equilibrium through aggregate demand and aggregate supply. Also explain the changes that take place in an economy when the economy is not in equilibrium.
Answer. Please read the above answer to Q. 32.
Or
What is saving function? How is if derived from the consumption function? Explain.
Ans. Please read the above answer to Q. 32(Or).

SET II

Note: Except for the following questions, all the remaining questions have been asked in Set-I.
SECTION A
Question.3 Define budget line.
Answer. A budget line is the locus of points, each point representing a bundle of the two goods which cost the consumer exactly his income.

Question.5 What is meant by cost in economics?
Answer. Cost is the sum of total actual money expenditure on inputs (explicit cost) and the estimated value of the inputs provided by the owners (implicit cost).

Question.8 Price elasticity of demand of a good is (-)1. When its price per unit falls by one rupee, its demand rises from 16 to 18 units. Calculate the price before change.
Solution . E_d = (-)1     P = ?    ΔP = -(1) Q = 16 unitsΔQ = 18 – 16 = 2

Question.13 Explain the change in demand of a good on account of change in prices of related goods.
Answer. Related goods could be substitute goods or complementary goods:

1.  Effect of .change in price of a substitute good. There is a positive relation between the price of a substitute and the demand for the given good.
   For example, with the fall in price of a substitute (coffee) the demand for the given good (tea) falls or vice versa.
2.  Effect of change, in price of a complementary good. There is an inverse relation between the price of a complementary good and demand for the given good.
   For example, a rise in the price of a complementary good (milk) leads to fall in demand for the given good (tea) or vice versa.

Question.14 Market for a product is in equilibrium. Demand for the product “decreases.” Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.
Answer.

Note: The following question is for the Blind Candidates only in lieu of Q. No. 14.
Market of a commodity is in equilibrium. Demand for the commodity “decreases.” Explain the chain of effects of this change till the market reaches equilibrium again. Compare the prices at the old and new equilibrium.
Answer. Please read the above answer to Q. 14.

SECTIONS B
Question.18 What is ‘current account deficit’ in the balance of payments?
Answer. When foreign exchange receipts in the current account fall short of foreign exchange payments, it is called current account deficit.

Question.20 Give meaning of full employment.
Answer. Full employment refers to a situation in which all able bodied persons who are willing to work at the prevailing rate of wages are, in fact, employed.

Question.24 Visits to foreign countries for sight-seeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?
Answer.

Question.29 Calculate autonomous consumption expenditure from the following data about an economy which is in equilibrium.
National income = 1,200
Marginal propensity to save = 0.20 Investment expenditure = 100
Solution.

Question.31 Calculate ‘Net National Product at factor cost’ and ‘Private Income’ from the following:                                                                                                                                                                                         

Solution. 

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set-I and Set-II.
SECTION A
Question.1 Define marginal revenue.
Answer. Marginal Revenue (MR) is defined as addition to the total revenue (TR) from selling an additional unit of output.

Question.5 Define indifference map.
Answer.The set of all the possible indifference curves that a consumer has, is called Indifference

Question.10 Map. A consumer buys 30 units of a good at a price of Rs 10 per unit. Price elasticity of demand for the good is (-)1. How many units the consumer will buy at a price of Rs 9 per unit? Calculate.
Solution.

Question.11 What is market demand for a good? Name the factors determining market demand.
Answer. Market demand for a good is the sum of quantities which all the individual buyers of the good are willing to buy at a given price during a period of time.
The determining factors are:

1.  Own price of the good.
2. Prices of related goods.
3. Income of the consumers.
4. Tastes and preferences of the consumers,
5.  Number of consumers.
6. Distribution of income.

Question.15 Market for a product is in equilibrium. Supply of the product “decreases.” Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.
Answer.

Note: the following question is for the Blind Candidates only in lieu of Q. No. 15.
Commodity is in equilibrium. Supply of the commodity “decreases”. Explain the chain of effects of this change till the market again reaches equilibrium. Compare the prices at the old and new equilibriums.
Answer. Decrease in supply will result in excess demand at given equilibrium price. This will result in competition among buyers. The price will rise. Demand will fall and supply will rise. These changes will continue till price tails to a level at which demand and supply are equal. The new equilibrium price will be higher than the old equilibrium price.

SECTION B
Question.17 Define aggregate supply.
Answer. Aggregate supply means the value of final goods and services planned to be produced by all the production units in the economy taken together during a period.

Question.19 What is ‘devaluation’?
Answer. The deliberate raising of the price of foreign currency in terms of domestic currency by the government is termed as devaluation of domestic currency.

Question.23 How does giving incentives for exports influence foreign exchange rate? Explain.
Answer.

Question.27 Calculate marginal propensity to consume from the following data about an economy which is in equilibrium.
National income =1,500
Autonomous consumption expenditure = 300 Investment expenditure = 300
Solution.

Question.32 Calculate ‘Net Domestic Product at factor cost’ and ‘Net National Disposable Income’ from the following:                                                                                                                  4+2=6

Solution.

The post CBSE Sample Papers for Class 12 Economics Delhi -2014 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Compartment Delhi -2012

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1. Give the meaning of opportunity cost.
Answer. Opportunity cost is defined as the value of..the benefit that is foregone by choosing one alternative rather than the other. .

Question.2. In economics what is an inferior good?
Answer. An inferior good is one whose demand falls with a rise in the income of the consumer, i.e., it has a negative income effect.

Question.3. When is the demand for a good said to be inelastic?
Answer. When the proportionate change in quantity demanded is less than the proportionate change in price, the demand for a commodity is said to be inelastic.

Question.4. Define market supply.
Answer. The total supply of a good by all the sellers (producers) at a given price and during a given period is market supply.

Question.5. When does a supply curve shift?
Answer. If the supply curve of a good changes due to a factor other than its own price it is termed as a shift in supply curve. For example, technological changes, change in price of factor input etc.

Question.6. Define an economy. Why does it face the problem of ‘what to produce’?
Answer. An economy is a system which provides people with a means to work and earn their living. It faces the problem of ‘What to produce?’ because resources are scarce and they have alternate uses. This is the problem of what goods should be produced and in what quantities. We have to see whether we have to produce consumer goods or producer goods or defense goods or all the goods in some quantity combination.

Question.7. Give three causes of a leftward shift in demand curve.
Answer. There can be a leftward shift in demand curve when the demand for a good falls because of the following reasons:

1. In the case of a normal good, the income of a consumer may fall thereby reducing the demand for a good.
2. There may be a fall in the price of substitute goods, leading to a fall in the demand for the good.
3. There may be increase in the price of complementary good thereby reducing the demand of the particular good.

Or
State three properties of indifference curves.
Answer. See Q. 15, 2011 (I Delhi).

Question.8. The price elasticity of demand of X is (-) 1.25. Its price falls from ? 10 to ? 8 per unit. Calculate the percentage change in its demand.
Answer.

Question.9. Explain the relationship between marginal product and average product.
Answer. Average product CAP). It is per unit product of a variable factor.
Marginal product (MP). It is an addition to the total product when an additional unit of a variable factor is employed.
The relationship between marginal product and average product is as follows:

1. When MP is greater than AP, AP increases.
2. When MP is equal to AP, AP is constant and maximum.
3. When MP is less than AP, AP falls/
4. MP can be zero and negative but AP is never zero.

Question.10. When the price of a commodity rises by 10 percent, its supply rises by 40 units. Its elasticity of supply is 1. Calculate its supply at the original price.
Answer.

Question.11. Define a budget line. Explain why is it a straight line.
Answer. A budget line graphically shows all the bundles of two goods (i.e., all possible combinations of two goods) that can be bought by spending the entire income (M) at the prevailing prices. is the money spent on good and is the money spent on good . Thus the total money spent is which is equal to the income M.
By joining,, different points representing various combinations of two goods, we get a straight line. It is a straight lin$ because each point on it shows ratio of prices which, is Constant.

Question.12. Complete the following table:

Answer.

Or
Explain the conditions of producer’s equilibrium with the help of a marginal cost and marginal revenue schedule.
Answer. According to the marginal cost and marginal revenue approach, the producer’s equilibrium will take place.at a point\where marginal cost = marginal revenue. Marginal cost is the cost of producing ah additional unit and marginal revenue is the revenue available from the sale of an addition^l unit.
In this case Ute following two conditions should be fulfilled:

1. A producer will go on producing as long as MR > MC, but stops at a point where MC and MR are equal. If he goes beyond that point, MC exceeds MR, a position which cannot be sustained.
2. Secondly, if MC cuts MR (MC = MR), the point of equilibrium will be only where MC curve cuts rising MR curve, i.e., where MC cuts MR from below. We can explain the phenomenon of producer’s equilibrium with the help of a cost revenue schedule:
   
   Producer is in equilibrium at 5 units of output. At this output MC = MR. Beyond this output MC > MR and producer will incur losses.

Question.13. How is equilibrium price of a commodity determined under perfect competition? Explain with the help of a numerical example.
Answer. Under perfect competition, equilibrium price of a commodity is determined at a point where supply and ‘demand of the commodity are equal. If any price is fixed other than this equilibrium price, either there will be a situation of excess demand or a situation of excess supply. This can be explained with the help of a demand-supply schedule.

The equilibrium price, according to the schedule is Rs 6. If Rs 5 is fixed as price, demand will be more than supply. On the other hand, if the price is fixed at Rs 7, supply will be more than demand. Therefore, the price will be Rs 6 only, where demand and supply are equal.

Question.14. Explain any three causes of “Increase” in supply of a commodity.
Answer. Supply of a commodity may increase due to the following factors:

1. Fall in the price of other goods. If there is no change in the price Of the commodity
   concerned and the prices of other Competing commodities fall, tire demand of the commodity concerned will fall because those who are using this commodity will switch over to the use of other commodities, thereby increasing its supply.
2. Fall in the prices of inputs. Fall in the prices of factors of production leads to a fall in the cost of production which positively affects the supply of a commodity, e.g., when the prices of inputs fall, cost of production also falls, with the result the supply of a commodity will be more at a given price.
3. Reduction in taxes etc. Government levies tax on every unit of commodity sold or bought. Due to levy of tax, cost of production increases and by reduction in the value of tax, cost of production declines. Therefore, if taxes are reduced Cost of production falls and this leads to an increase in the supply of the commodity at the same price.

Or
Explain the law of variable proportions with the help of a total product schedule.
Answer. See Q. 15, 2008 (I Delhi).

Question.15. Explain the conditions of consumer’s equilibrium using marginal utility analysis.
Answer. See Q. 14(0), 2009 (I Delhi).

Question.16. Giving reasons, state whether the following statements are true or false.
(i) A monopolist can fix both, the price of his product and the quantity to be sold at that price.
(ii) Excess supply of a commodity exists when its market price is greater than its equilibrium price.
(iii) Under monopolistic competition, a firm faces a perfectly elastic demand curve.
Answer. (i) The statement is false. A monopolist pan fix either the price of the commodity or the quantity of the commodity he wants to sell. If he wants to sell more he can do so only by lowering its price.
(ii) The statement is true. If market price is greater than the equilibrium price, supply will be more than the demand.
(iii) The statement is false. Under monopolistic competition, a firm faces downward- sloping demand curve as it can sell more only by lowering the price of the product.

SECTION B
Question.17. What is bank rate?
Answer. Bank rate is the interest rate at which Central bank lends to commercial banks.

Question.18. What is included in money supply?
Answer. Currency with public and demand deposits with commercial banks are included in money supply.

Question.19. What can be the minimum value of investment multiplier?
Answer. The minimum value of investment multiplier is 1.

Question.20. How is the value of marginal propensity to save calculated?
Answer. Marginal Propensity to Save is the ratio of change in saving to change in income. It is calculated by dividing change in saving; with the corresponding change in income.
Marginal Propensity to Save (MPS) = .
Where =Change in Saving , =Change in Income.

Question.21. What is primary deficit?
Answer. It refers to the difference between fiscal deficit of the current year and interest payments on the previous borrowings.
Primary deficit = Fiscal deficit minus Interest payments.

Question.22. Explain the circular flow of income.
Answer. In a simple economy, money flows from production units to households in lieu of factor services provided by the households to the production units and then money flows from households to production units in the form of payments for goods and services. This flow of . money is known as circular flow of income.

Or
Why are net exports included in national income? Explain.
Answer. Net exports are made out of domestic product. This means net exports are part of domestic product. In national income, value of domestic product produced by the residents is included. The^fore net exports are included in national income.

Question.23. In an economy a 20 per cent increase in investment results in a 100 per cent increase in income.
Answer.

Question.24. Explain the meaning of deflationary gap With the help of a diagram.
Answer. When equilibrium takes place before the stage of full employment level of output, at this level aggregate demand is less then aggregate supply. This is known as deflationary gap. This happens when aggregate demand in the economy is not sufficient to ensure that level of output which can give employment to all those who are willing to work. In other words, this is called deficiency in demand. Because of this given resources of an economy are not full utilized.
The concept of deflationary gap can be explained with the help of a diagram. In the diagram given, the equilibrium level of output is OQ but the full employment level of output is OZ. At this level aggregate demand falls short of aggregate supply = EF. This the deflationary gap.

Note: The following question is for the Blind Candidates only, in lieu of Q1 No. 24.
Explain the meaning of deflationary gap. State any one way of correcting it.
Answer. Meaning of deflationary gap. See Q- 24 (above).
One way of correcting it In such a situation, bank rate should be reduced so that interest rate falls and demand increases. In this way aggregate demand and aggregate supply will be equal at full employment level.

Question.25. How can government budget be helpful’ in altering the income distribution? Explain.
Answer. Through the budget the government may affect the pattern of redistribution of income. The government can change income distribution through fiscal measures such as taxation, subsidies, public expenditure etc. The government can levy more taxes on higher income group people thereby reducing their income and spending the same for the welfare activities relating to poor people. This will reduce income of the rich and raise the standard of living of the poor.

Question.26. Distinguish between balance of trade and balance on current account.
Answer. See Q. 24, 2008 (I Outside Delhi).

Question.27. Complete the following table:

Answer.

Question.28. Classify the following into capital receipts and revenue receipted Give reasons for your answer.
(i) Recovery of loans
(ii) Interest received on loans
Answer. (i) Recovery of loans is a capital receipt as it leads to a reduction in assets.
(ii) Interest received on loans is a revenue receipt because it is an income, it neither creates a liability nor reduces any asset.
Or
Explain the distinction between direct tax and indirect tax. Give one example of each.
Answer. Direct tax: A tax whose liability to. pay the tax and the incident of the tax is on the same person is a direct tax. Its examples are income tax, wealth tax etc.
Indirect tax: A tax whose liability to pay the tax and incidence of the tax are on different persons is an indirect tax.Its examples are: sales tax, excise duty etc.

Question.29. Explain the effect of a fall in the price of foreign currency on exports.
Answer. If there is a fall in the price of foreign currency, it has a negative effect on exports of the home country. This means when the price of a foreign currency falls, foreign buyers will have to pay more foreign currency for buying the same goods from home country. Therefore, the foreigners will buy less and exports of home country will reduce.

Question.30. Giving reasons, state whether the following statements are true or false.
(i) Real gross domestic product can be equal to nominal gross domestic product.
(ii) Savings are a stock.
(iii) Butter is only a final product.
Answer. (i) The statement is true. Real gross domestic product and nominal gross domestic product will be equal if price level remains constant.
(ii) The statement is false. Savings are always with reference to a time period. In other words, saving is a flow.
(iii) The statement is false. Butter is only a final product when purchased by households for consumption. Butter purchased by bakeries for making cakes and pastries is not a final product. Butter for them is an intermediate good as it is used as raw material for further production.

Question.31. Explain any two functions of central bank.
Answer. Two functions of central bank. See Q. 25, 2009 (III Outside Delhi).
Or
Explain any two functions of money.
Answer. Two functions of money. See Q. 28, 2009 (II Delhi).

Question.32. Calculate Gross National Product at Factor Cost by (i) income method, and (ii) expenditure method, from the following data:

Answer.

SET II

Note : Except for the following questions, all the remaining questions have been asked in Set-1.
SECTION A
Question.1. What is micro-economics?
Answer. Micro-economics is the study of behaviour of individual economic units such as a household, a firm etc.

Question.2. When is a good called a normal good?
Answer. When as a result of increasing income, the demand for a good also increases, such a good is a normal good.

Question.3. What is ‘change in supply’?
Answer. When supply of a good changes not because of change in its price but due to other factors, it is called change in supply. It results in an increase or decrease in supply.

Question.13. Explain the chain of effects of excess supply on equilibrium price.
Answer. If market price is more than the equilibrium price, this results into a situation of excess supply. In this situation there will be competition among the sellers. This competition will reduce the price. At the reduced price, the demand will increase and supply will fall. These changes will continue till the price falls to the one where demand and supply are equal. This can be explained with the help of a diagram.

In the diagram, equilibrium price is OP and market price is OP1 where there is an excess of supply. In this situation because of competition among the sellers, price is reduced to OP, where demand and supply are equal.

Question.16.Explain the conditions of consumers equilibrium under indifference curve analysis.
Answer. See Q. 14, 2010 (I Delhi).

SECTION B
Question.20. Define average propensity to consume.
Answer. The ratio of total consumption expenditure (C) to total income (Y) is called Average Propensity to Consumer (APC). In short,

Question. 21.What is fiscal deficit?
Answer. The excess of total budget expenditure over total budget receipts excluding borrowing requirements during a fiscal year is called fiscal deficit.
Fiscal deficit = Total budget expenditure – Total budget receipts excluding borrowings

Question. 23. In an economy, a 40 per cent increase in investment results in a 40 per cent increase in income. Calculate the marginal propensity to consume.
Answer.

Question.25. How can a government budget help in reallocation of resources? Explain.
Answer. An important objective of the government budget is to allocate resources for accomplishing socioeconomic objectives of the government. Government budget can reallocate the resources through its taxation policy. Government through its budget may reduce taxes on goods whose production it wants to encourage and levy taxes on the goods whose production it wants to discourage, e.g., Government may reduce taxes on mass consumption goods and levy taxes on luxury goods. Resources may be allocated for increasing investment, reducing income inequalities, providing better health care and education facilities.

Question.27. Complete the following table:

Answer.

Question.29. Explain the effect of a rise in the price of foreign currency on exports.
Answer. When price of foreign currency increases exports of home country increase.
For example, when the price of US $ increases against Indian ?, i.e., from Rs 50 it becomes Rs 55, the US citizen can buy more (Rs 55) with one US $ than he was able to buy earlier (Rs 50), Since the Indian goods have become cheaper for him, he would like to buy more goods from India and hence, Indian exports will increase.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set-I and Set-II.
SECTION A
Question.4. Define supply.
Answer. Supply is that part of stock of a commodity which is offered for sale at a given price during a given period of time.

Question.6. Explain the problem of ‘how to produce’.
Answer. It is a problem of the choice of technique of production. There are number of techniques available, for example, labour intensive or capital intensive techniques. This problem arises due to scarcity of resources which can be put to alternate uses. The decision of how goods should be produced depends on the price of factor inputs. For example, in India, labour intensive technology is adopted whereas in a country like Japan, capital intensive technique is used.

Question.9. Explain the relationship between marginal revenue and average revenue.
Answer. Average Revenue (AR) is the revenue per unit of the product sold.
Marginal Revenue (MR) is the addition to the total revenue from sale of an additional unit of a commodity.
Relationship between MR and AR:

1. AR increases as long as MR is higher than AR, i.e., when MR > AR, AR increases.
2. AR is maximum and constant when MR is equal to AR, i.e., MR = AR, AR is constant,
3. AR falls when MR is less than AR, i.e., when MR < AR, AR falls Point (ii) relates to the relationship between MR and AR in perfect competition whereas point (iii) relates to monopoly and monopolistic competition.

Question.10. The price of a commodity falls by 15 per cent and its supply falls from 200 units to 155 units. Calculate its elasticity of supply.
Answer.

Question.13. Explain the chain of effects of excess demand on equilibrium price.
Answer. Equilibrium price of a commodity is determined where quantity demanded and supplied are equal. If market price is fixed below the equilibrium price, it creates a situation of excess demand. In such a case, there is competition among buyers which results in more demand than the supply of goods. This will increase the price of goods and bring it back to the equilibrium price where the demand and supply are equal the situation of equilibrium price. This can be explained with the help of a diagram.

In the diagram, equilibrium price is OP, where demand and supply are equal. If market price is fixed at OP1 there will be excess demand equal to FG. In such a case, because of the competition among the buyers, the price will increase bringing it equal to OP, where the demand and supply are equal.

Question.15. Giving numerical examples, explain the following:
(i) Budget set
(ii) Marginal rate of substitution .
Answer. (i) Budget set. The set of bundles of two goods that are available to the consumer given his income at prevailing market prices is called the budget set. Using M as income, P, as price of good X and P2 as price of good Y, a consumer can buy any bundle which he can get by spending M (income) on good X and good Y in the following manner:

(ii) Marginal rate of substitution. Each bundle is different from other bundle so far the quantities of goods (X and Y) are concerned. The consumer substitutes one good for another. But the question is how much of good Y the consumer is willing to give up for getting an extra unit of good X. The rate at which the consumer can substitute good X for good Y is called the marginal rate of substitution. In other words, marginal rate of , substitution measures the consumer’s willingness to give up good X to get an additional unit of good Y without affecting total utility. Marginal rate of substitution is always declining. It can be measured in the following manner:

SECTION B
Question.20. Give the meaning of aggregate demand.
Answer. Aggregate demand is the value of total expected demand for all goods and services in the economy during a given period of time.

Question.21. What is a tax?
Answer. Tax is a payment, charged by the Government, which is to be paid legally by the people.

Question.27. Complete the following table:

Answer.

Question.29. Explain the effect of a fall in the price of foreign currency on imports.
Answer. When price of foreign currency falls, imports become cheaper. As a result a citizen of home Country, say India, will get more goods from a foreign country for the same amount of Indian This will result in increase in imports.
For example, if the price of American dollar falls, home buyers will import more from America because their goods have become cheaper.

The post CBSE Sample Papers for Class 12 Economics Compartment Delhi -2012 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2012

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1. Define production possibility curve.
Answer. Production possibility curve is the locus of points that indicates such combinations of the two
goods which can be produced by full and efficient utilization of given, resources.

Question.2. Define marginal utility.
Answer. Marginal Utility (MU) is the change that takes place in the total utility when one more unit . of a good is consumed.

Question.3. What is market demand?
Answer. Market demand is the sum of the demand of all the buyers of a commodity at a given price dining a given period of time.

Question.4. Why does average fixed cost fall with increase in output?
Answer. Total fixed cost remains constant and Average fixed cost = Total Fixed Cost/Output
Therefore when output increases -average fixed cost falls.

Question.5. Give the meaning of price elasticity of supply.
Answer. Price elasticity of supply is the measure of degree of responsiveness of supply of a good to a change in its price.

Question.6. Define an economy. Why does it face the problem of ‘how to produce’?
Answer. An economy is a system by which people earn their living. The problem of ‘how to produce’ is the problem of choosing the method or technique of production. This problem arises due to scarce resources and their alternate uses. The problem is whether to use capital intensive technique in which more of capital goods like machines, etc. are used, or to use labour intensive technique in which more of labour is used. This depends on the availability of the factors of production.

Question.7. Explain the distinction between “change in quantity demanded” and “change in demand”.
Answer.


Or
Explain any two factors that affect price elasticity of demand.
Answer. Two factors that affect price elasticity of demand:

1. Nature of the good. Generally, the demand for necessaries of life is inelastic because these must be bought even when their prices goes up. Whereas the demand for comforts and luxury goods is elastic.
2.  Availability of close substitutes. The demand for a commodity will be very elastic if some other substitutes are available. A small rise in the price of such a commodity will induce consumers to use its substitutes. On the other hand, the demand of such commodities is inelastic which have no substitutes.

Question.8. The demand for a good doubles due to a 25 per cent fall in its price. Calculate its price elasticity of demand.
Answer.

Question.9. Explain the relationship between marginal cost and average variable cost.
Answer. Both Marginal Cost (MC) and Average Variable Cost (AVC) are derived from total variable cost. In the short run, only variable costs change with change in level of output. Thus marginal costs are due to changes in variable costs.
Relationship between MC and AVC can be seen below:

1. When AVC is rising, MC is more than AVC, i.e., MC >AVC.
2. When MC = AVC? AVC remains constant and is minimum.
3. When AVC is falling, MC is less than AVC, i.e., MC < AVC.
   All these three points become distinct looking at the given diagram.
   

Question.10. Price elasticity of supply of a commodity is 1. Its price rises from ‘ 20 to ‘ 24 unit and its supply rises by 300 units. Calculate its supply at the original price of ‘ 20 per units.
Answer.

Question.11. Define an indifference curve. State its three properties.
Answer. An indifference curve is a locus of points which represents such combinations or bundles of two goods which give equal satisfaction to the consumer.
Properties of indifference curves. See Q. 15, 2011 (I Delhi).

Question.12. Complete the following table:

Answer.

Or
Explain the conditions of producer’s equilibrium with the help of a numerical example.
Answer. Producer’s equilibrium will take place at a point where marginal cost and marginal revenue are equal. Given below is a schedule of marginal cost and marginal revenue. According to the schedule, at 5 units of output, MR and MC are equal. Therefore it is the point of producer’s equilibrium. Beyond this point MC is greater than MR and hence this cannot be the point of equilibrium.

Question.13. Distinguish between behaviour of average revenue of a firm under monopolistic competition and perfect competition. Use diagram.
Answer. Under monopolistic competition, more units of a product can be sold by reducing price. This means AR falls when output increases, In short, AR slopes downwards as shown in diagram (i).

Under perfect competition, any amount of a commodity can be sold at the price fixed by the industry. This means AR is constant when output increases. This means AR will remain constant at all levels of output. As such AR curve will be a horizontal straight line parallel to Y axis as shown in diagram (ii).

Note: The following question is for the Blind Candidates only, in lieu of Q. No. 13.
Distinguish between behaviour of average revenue of a firm under monopolistic competition and perfect competition using numerical examples. 
Answer. AR of a firm under monopolistic competition falls as output increases, for example, if a firm sells 50, units of a good at a price of Rs 5 per unit, the firm will be able to sell more than 50 units only by reducing the price.
AR of a firm under perfect competition is constant as output increases, for example, if a firm sells 50 units of a good at Rs 5 per unit, the firm will be able to sell more than 50-units at the same price of Rs 5 per unit.

Question.14. Giving reasons, state whether the following statements are true or false.
(i) The demand for a good increases with the increase in the income of its buyer.
(ii) If the goods X and Y are substitutes, a rise in price of X will result in a rightward shift in demand curve of Y.
(iii) A budget set is a collection of such bundles of goods that give same satisfaction.
Answer. (i) The statement is false. The demand for only normal goods increases with the increase in income. The demand of inferior goods will decline with the increase in income.
(ii) The statement is true. A rise in the price of X will increase the demand for Y as Y becomes relatively cheaper than X.
(iii) The statement is false. A budget set is collection of such bundles of goods on which the total expenditure is the same and is equal to total income.

Question.15. Explain any two causes of “decrease” in supply of a good.
Answer.

1. The supply of a commodity will decrease when prices of inputs increase. This leads to an increase in cost of product. In this case, producer will be able to produce less number of goods with a given amount of capital.
2. The supply of a commodity will decrease if there is a increase in the prices of other goods. Because in such a case, firms will start producing more of the other good whose price has increased.
3. Taxation policy of the government also affects the supply of a good. Increase in excise ’ duty on a particular good, will lead to an increase in its marginal cost thereby leading to a decrease In its supply.

Or
Explain the law of variable proportions with the help of a total and marginal product schedule. .
Answer. See Q. 15, 2008 (I Delhi).

Question.16. Explain the changes that take place when market price is greater than equilibrium price. Use diagram.
Answer. The equilibrium price is fixed at a point where demand and supply are equal. When market price is greater than equilibrium, there will be excess supply.
As shown in the diagram, equilibrium price is OP. If OP1 is fixed as the market price there will be excess supply equal to FG. This will lead to competition among the sellers. As a result of which price will start falling. Demand will start rising and supply will start falling. Thus, these changes in supply and demand will continue till the price falls to OP at which demand and supply are equal.

Note: The following question is for the Blind Candidates only, in lieu of Q. No. 16.
Explain the changes that take place when market price is greater than equilibrium price with the help of a numerical example.
Answer. Suppose, the equilibrium price of a commodity is ? 6. At this price demand and supply are equal. Suppose, the price goes up to Rs 7. At this price, supply will increase as producers will like to sell more units and die supply will be more than the demand which will decline further. In other words, there will be excess supply. This will lead to competition among the sellers and the price will come down. As a result, demand will start rising and supply will start falling. These changes will continue till the price falls to ? 6 at which demand and supply are equal.

SECTION B
Question.17. What are demand deposits?
Answer. As the name suggests, these: are the deposits which can be withdrawn from the bank on demand.

Question.18. Define money.
Answer. Money is anything that serves as a medium of exchange and is universally acceptable.

Question.19. Give the meaning of inflationary gap.
Answer. The excess of aggregate demand over aggregate supply at the full employment level, is inflationary gap.

Question.20. If the value of marginal propensity to save is 0.4, what will be the value of investment multiplier?
Answer.

Question.21. What is a government budget?
Answer. A Government budget is a statement of expected receipts and expected expenditure of the government during a financial year.

Question.22. Distinguish between intermediate goods and final goods. Also give examples.
Answer.

Question.23. What changes will take place in the economy when aggregate demand is less than aggregate supply? Explain.
Answer. At equilibrium level in an economy, aggregate demand will be equal to aggregate supply. However, when aggregate demand is less than aggregate supply, this will leMTto increase in inventories and as a result of this, producers will produce less and aggregate supply will fall. These changes will continue till the aggregate demand and aggregate supply are equal. In other Words, aggregate demand and aggregate supply have to be equal.

Question.24. In an economy 20 per cent fall in investment results in 40 per cent fall in income. Calculate the value of the marginal propensity to consumer.
Answer.

Question.25. Distinguish between revenue deficit and fiscal deficit.
Answer. Revenue deficit refers to the excess of total revenue expenditure over total revenue receipts. On the other hand, fiscal deficit refers to the excess of total expenditure over total receipts excluding borrowings during a fiscal year.
Revenue deficit ==Total revenue expenditure – Total revenue receipts
Fiscal deficit = Total budget expenditure – Total budget receipts excluding borrowings
Or
Fiscal deficit = Total budget expenditure – (Revenue receipts + Non-debt capital receipts)
Or
Distinguish between direct tax and indirect tax. Give one example of each.
Answer. See Q. 28, 2012 (Comptt I Delhi).

Question.26. List the items included as invisibles in the balance of payments account.
Answer. The following items are included as invisibles in the balance of payments account:

1. Export and import of services.
2. Transfers from and to abroad.
3. Income from and to abroad.

Question.27. Complete the following table:

Answer.

Question.28. Explain the ‘price stability’ function of a government budget.
Answer. An important function of the government budget is bringing about price stability. Price stability signifies that there should not be fluctuations or variations in the prices. The : Government can check price fluctuations through its expenditure and taxation policy. During inflation, it tries to reduce aggregate demand by reducing government expenditure and raising taxes. During period of falling prices, it tries to increase aggregate demand.

Question.29. Explain why there is an inverse relationship between price of foreign currency and its demand.
Answer. When price of foreign currency increases, imports from that country become costlier, for example, when the price of US $ increases, home buyers (say, Indians) have to pay more for buying the same volume of goods from America. As such home buyers will import less foreign goods. This means the demand for imports falls and this leads to a fall in the demand for foreign currency.
Similarly, when price of a foreign currency falls, imports from that country become cheaper. So imports increase and demand for foreign currency rises.
Or
Explain the effect of rise in price of foreign currency on exports.
Answer.When price of a foreign currency rises, foreigners can buy more goods from the home country by spending the same amount of their currency. For example, If the price of US $ increases, Americans get more goods from India by paying the same amount of their currency. In other words, exports become cheaper and hence exports increase.

Question.30. How will you treat the following in the calculation of Gross Domestic Product of India? Give reasons for your answer.
(i) Profits earned by a branch of foreign bank in India.
(ii) Salaries of Indian employees working in embassy of Japan in India.
(iii) Salary of residents of Japan working in Indian embassy in Japan.
Answer.(i) Profits earned by a branch of foreign bank in India will be included in the domestic product of India as the foreign bank is located within the domestic territory of India,
(ii) Salaries of Indian employees working in embassy of Japan in India is not a part of domestic product of India because Embassy of Japan in India is not a part of domestic territory of India.
(iii) Indian Embassy in Japan is a part of domestic territory of India, therefore salaries paid to the residents of Japan working in Indian Embassy is a part of domestic product of India .

Question.31. Explain any two functions of central bank.
Answer. See Q. 25, 2009 (III Outside Delhi).
Or
Explain any two functions of money.
Answer. See Q. 27(Or), 2009 (I Outside Delhi).

Question.32. From the following data calculate Gross National Product at Factor Cost by (i) income method, and (ii) expenditure method.

Answer.

SET II

Note : Except for the following questions, all the remaining questions have been asked in Set-I.
SECTION A
Question.8. When the price of a good falls by 10 percent, its demand rises from 200 units to 220 units. Calculate its price elasticity of demand.
Answer.

Question.9. Explain the relationship between marginal cost and average cost.
Answer. Average Cost (AC) and Marginal Cost (MC) are both derived from total cost. MC bring about changes in AC. When MC falls, it pulls down AC and when MC rises, it pulls AC up.
This becomes clear by looking at the following points:

1. When MC is less than AC, AC falls.
2. When MC = AC, AC is constant arid at its minimum.
3. When MC is more than AC, AC rises.
   These points become evident looking at the diagram.
   

Question.10. At a price of Rs 10 per unit, the supply of a commodity is 300 unite. Its elasticity of supply is 1.5. Its price increases by 20 percent. Calculate its supply at the increased price.
Answer.

SECTION B
Question.24. Marginal propensity to consume is zero, Calculate the change in income if investment falls by Rs 1,000 crores.
Answer.

Question.27. Complete the following table:

Answer.

Question.28. Explain the basis of classifying government expenditure into revenue and capital expenditures.
Answer. The basis of classifying government expenditure into revenue expenditure and capital expenditure is the fact as to:

• whether an expenditure either creates an asset or reduces a liability. If it does, it is a capital expenditure;
• whether an expenditure neither creates an asset nor reduces a liability. If an expenditure neither creates an asset nor reduces a liability, it is clarified as revenue expenditure.

Question.29. Explain why there is an increase in supply of foreign currency when its price rises.
Answer. When the price of foreign currency, say, US $ has increased in terms of domestic currency, say, Indian Rs , i.e., from 1 dollar = Rs 54 to 1 dollar = Rs 56, this makes home country’s goods cheaper to the Americans because 1 dollar can now purchase Indian goods worth Rs 56 instead of Rs 54. This would induce America to import goods from India. Indian exports will increase, as a result/ supply of foreign exchange, i.e., US dollar will rise. Thus a rise in the price of foreign currency leads to an increase in its supply.
Or
Explain why there is an increase in demand for foreign currency when its price falls.
Answer. There is an inverse relation between price of foreign exchange and the demand for foreign exchange (say US $) in terms of domestic currency (say Indian Rs ). This means lower the price of foreign exchange, the higher is the demand for it. When price of foreign currency falls, imports from that country become cheaper. Imports increase and therefore demand for that currency increases. It can be explained further taking a concrete example. Suppose the present price of US dollar is Rs 55. This means for buying goods worth 1 US dollar from America, India has to part with Rs 55. Suppose the price of US dollar falls to Rs 50 a dollar, now India will part with Rs 50 to buy goods of the value of one US dollar. Thus, Indians will import more from America and will demand more US dollars.

Question.32. Calculate National Income by (i) income method and (ii) expenditure method from the following data:

Answer.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set-I and Set-II.
SECTION A
Question.10. As a result of 20 percent fall in the price of X, its supply falls from 500 units to 450 units. Calculate its price elasticity of supply.
Answer.

Question.13. Explain the implications of the following:
(i) Large number of sellers and buyers under perfect competition.
(ii) Interdependence of firms under oligopoly.
Answer. (i) Under perfect competition, the number of sellers and buyers is very large. The number of sellers is so large that output by an individual seller is an insignificant proportion of the total output of the industry. Hence an individual seller cannot influence the price of the commodity on its own.
The number of buyers is so large that an individual buyer’s share in the total purchase is so negligible that no buyer can influence the price on its own.
(ii) Under oligopoly, there is interdependence of firms in case of price-output decisions as ‘ no firm can take such a decision independently. Interdependence implies that each firm takes into consideration the likely reactions of the rival firms before taking any decision – . about the change in the price and output.

Question.16. Explain the changes that take place when market price is less than equilibrium price. Use diagram.
Answer. The equilibrium pricey of a commodity is fixed at a point where its demand and supply are equal. If market price is less than, the equilibrium price, it creates a situation of excess demand. This means at this price, demand will be more than the supply. As shown in the diagram, if the price OP (equilibrium price) becomes OP1 (less), there will be excess demand equal to FG, the gap between demand and supply. This will lead to competition between the buyers. As a result price will start rising. Because of the increase in price demand will start falling and supply will start rising. These changes will continue till price becomes equal to OP at which demand and supply are equal.

Note: The following question is for the Blind Candidates only, in lieu of Q. No. 16.
Explain the changes that take place when market price is less than equilibrium price, with the help of a numerical example.
Answer. Read the above answer and add:
Suppose the equilibrium price is Rs 5 at which demand equals supply. Further suppose that market price falls to Rs 4. This will lead to excess demand and competition between the buyers. As a result demand will start falling and supply will start increasing. The changes will continue till price rises to Rs 5 per unit at which demand equals supply.

SECTION B
Question.21. Give two examples of capital receipts in a government budget.
Answer. (i) Loans raised by the government from public, from RBI and from abroad.
(ii) Funds raised by way of disinvestment, i.e., assets sold to private enterprises.

Question.22. Explain the circular flow of income.
Answer. See Q. 22, 2012 (Comptt. I Delhi).

Question.24. In an economy, income increases from Rs 5,000 crore to Rs 6,000 crore as a result of 20 percent increase in investment. Calculate the value of investment multiplier.
Answer.

Question.27. Complete the following table:

Answer.

Question.32. Calculate National Income by (t) income method and (ii) expenditure method from the following data:

Answer.

The post CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2012 appeared first on Learn CBSE.

Important  Questions for CBSE Class 9 Social Science Working Of Institutions

IMPORTANT QUESTIONS

Very Short Answer Type Questions (1 Mark each)

Question.1. Name the three organs of the Government.
Answer. (i) Executive
(ii) Legislative
(iii) Judiciary

Question.2. Who is the head of the state and the head of the government ?
Answer. The President is the head of the state whereas Prime Minister is the head of the government.

Question.3. What is a Parliament ? Name the two houses of the Parliament.
Answer. It is the supreme law making body of India. It has two Houses :
(i) Lok Sabha
(ii) Rajya Sabha.

Question.4. What are institutions ?
Answer. The arrangements which are made in modern democracies to run the government.

Question.5. Name any three institutions responsible to run the democratic government in India.
Answer. (i) The Prime Minister and the Cabinet.
(ii) The Civil Servant.
(iii) The Supreme Court.

Question.6. Name the institution where disputes between citizens and the government are finally settled.
Answer. The Supreme Court.

Question.7. Why democratic governments insist on institutions ? Give two reasons.
Answer. (i) Institutions involve rules and regulations.
(ii) Institutions bind the hands of the rulers as these involve meetings, committees and routines.

Question.8. Which House has more power regarding the money bill ? Give reason.
Answer. The Lok Sabha exercises more powers in money matters. Once the Lok Sabha passes the budget of any other money related law, the Rajya Sabha cannot reject it. The Rajya Sabha can only delay it by 14 days or suggest changes, in it. The Lok Sabha may or may not accept these changes.

Question.9. Explain No Confidence Motion.
Answer. Only a person who enjoys the support of the majority of the members of the Lok Sabha is appointed as the Prime Minister. If a no confidence motion is moved in the Lok Sabha, and passed, then,the Government has to resign.

Question.10. With reference to the Rajya Sabha answer the following questions:
(i) What is its power relating to money bill ?
(ii) Can it pass a No-Confidence Motion ?
Answer.(i) A Money bill can originate only in the Lok Sabha. When it is sent to the Rajya Sabha, it cannot reject it. The Rajya Sabha can delay it for 14 days.
(ii) No, Rajya Sabha cannot pass the No-confidence Motion.

Question.11.Define Executive. [CBSE 2015]
Answer.At different levels of any government we find functionaries who take day-to-day decisions, but do not exercise the supreme power on behalf of the people. All those functionaries are collectively known as the executive.

Question.12.Who appoints the Prime Minister ?
Answer.The Prime Minister is appointed by the President.

Question.13.What is the tenure of the Prime Minister ?
Answer.The Prime Minister does not have a fixed tenure. Normally a Prime Minister is elected for 5 years, but remains in power till he enjoys the majority support.

Question.14.Who are Cabinet Ministers ?[CBSE 2013, 14]
Answer.They are usually the top level leaders of the ruling party or parties, who are in charge of the major ministries like Defence, Railway, Foreign Affairs etc. Normally, all the major decisions are taken by these ministers.

Question.15.What is judiciary ? [CBSE 2015]
Answer.All the courts at different levels in a country are called the judiciary.

Question.16.Which is the highest court of India ?
Answer.The Supreme Court.

Question.17. “The Constitution of India has made necessary provisions for ensuring independence of judiciary.” Justify your answer by giving two reasons.
Answer. (a) The judges are appointed by the executive on the basis of the prescribed qualifications, and according to a well established procedure.
(b) The Judges cannot be removed at the whims of the executive.

Question.18. Who appoints the Chief Justice of India and the other judges ?
Answer. The President of India appoints the Chief Justice of India. The President consults other Judges of the Supreme Court and the High Courts while making appointments of other judges.

Question.19. State any two powers of the Supreme Court of India.
Answer. (i) The Supreme Court acts as the guardian of fundamental rights.
(ii) It acts as a guardian of the Constitution.

Question.20. What is the composition of Indian judiciary ?
Answer. (i) The Supreme Court.
(ii) The High Court.
(iii) The District Court.

Short Answer Type Questions (3 Marks)

Question.1.Why is there a need for political institutions ? [CBSE 2014,15]
Answer.(i) To take decisions : Countries need political institutions to take decisions regarding the welfare of the people. Institutions formulate various policies and programmes.
(ii) Implementation : The decisions which have been taken are to be implemented. So countries need institutions to implement the decisions.
(iii) To solve the disputes :
Institutions are also needed to solve the disputes between various institutions.
(iv) To take right decisions :
Institutions help the governments to take the right decisions.

Question. 2. Distinguish between political executive and permanent executive.
Answer.

Question.13.Compare the power, tenure and working of both the Houses of the Indian Parliament. [CBSE March 2011]
Or
The Lok Sabha is more powerful than the Rajya Sabha. Explain by giving three reasons. [CBSE March 2012,13]
Or
Which house of the Parliament is more powerful in India? Give reasons.[CBSE March 2011,2012]
Or
Our Constitution does give the Rsgya Sabha some special powers over the states, but Lok Sabha exercises supreme power. How? Explain. [CBSE March 2012]
Answer.

Question.4. Why do the political executives have more power than the permanent executives ? [CBSE March 2014]
Answer. (i) In a democracy, the will of the
people is supreme, and the political executive is elected by the people.
(ii) All the political executives are answerable to the people. The people can change them if they don’t work according to the wishes of the people.
(iii) The non-political executives are the experts in their field but political executives have to see the welfare of all.
(iv) The experts can tell the route, but the political executives have a larger view so they decide the destination.

Long Answer Type Questions (5 Marks)

Question.l. Explain the major powers and
functions of the Prime Minister.
Answer. (i) Link : The Prime Minister is the link between the Cabinet and the President. The decisions of the Cabinet are conveyed to the President through the Prime Minister. It is he who keeps him informed on all matters of government.
(ii) Formation of the Cabinet: The Prime Minister prepares the list of his Council of Ministers and sends it to the President. He can reshuffle hi? Council of Ministers whenever he likes. He can also ask any minister to resign if he is not satisfied with his working.
(iii) Leader of the Lok Sabha : The Prime Minister presides over the meetings of the Cabinet. He maintains co-ordination between different departments of the government.
(iv) Foreign Affairs : The Prime Minister plays an important role in the management of foreign affairs. He formulates the internal and external policies of the country.
(v) Leader of the Party: The Prime Minister has the main say in framing the policy of his party.
(vi ) Leader of the Nation: The Prime Minister is the most important leader of the nation. People always eagerly hear his views. His views related to any internal or external policy are heard more carefully.

Question. 2. Explain the major powers and
functions of the Parliament.
Answer. (i) Legislative Powers : The Parliament can make laws on all those subjects which have been given in the Union List and the Concurrent List. Under certain cases, it can also make laws on those subjects which have been given in the State List.
(ii) Control over Finance : The annual budget of the Central Government is passed by Parliament. Without Parliament’s approval, the government cannot impose any tax or incur any expenditure.
(iii) Control over the Executive: The Parliament can seek information regarding administration. It can pass a resolution of no confidence against the ministry and ask it to resign. Question hours are also quite effective in keeping the government and its ministers under control.
(iv) Amendment or New Law : No
amendment can be made in the Constitution without the approval of the Parliament.
(v) Functions related to Elections :
The Parliament elects the President, the Vice-President, Speaker of the Lok Sabha and the Deputy Speaker. Members of the Rajya Sabha elect the Vice-Chairman.

Question. 3. Explain briefly the powers and functions of the Supreme Court.
Answer. (i) Original Jurisdiction : The original jurisdiction extends to those cases which the Supreme Court has the authority to hear and decide in the first instance.
(a) Between citizens of the country;
(b) Between citizens and government;
(c) Between two or more state governments; and
(d) Between governments at the union and state level.
(ii) Appellate Jurisdiction: It is the highest court of appeal in civil and criminal cases. It can hear appeals against the decisions of the High Courts.
(iii) Advisory Jurisdiction : As the highest court in the country, the Supreme Court gives legal advice to the President of India on any legal or constitutional matter referred to it. However, the advice is not binding on the Supreme Court.
(iv) Guardian of the Constitution:
The Supreme Court acts as the guardian and final interpreter of the Constitution. If the government passes any law or issues any order which is in violation of the Constitution, the Supreme Court has the power to declare the law or order unconstitutional.
(v) Guardian of Fundamental Rights: The Supreme Court also acts as a guardian of the fundamental rights of the citizens. When a fundamental right of any citizen is violated by the government or any individual he can seek the protection of the Supreme Court.

Higher Order Thinking Skills (Hots) Questions/Application Based Questions

Question.1. Explain the composition of the Council of Ministers.[CBSE March 2011,12,13,15]
Or
What is meant by council of Ministers ? Explain the different categories of ministers.[CBSE March 2013]
Answer. The Council of Ministers is a large body, it consists all the three ranks of ministers. The Council of Ministers comprises of the three categories of ministers. These are:
(i) Cabinet Ministers : Constitute the inner ring of the council of ministers. These are the top-level leaders of the ruling party / parties who are incharge of the important ministries. They usually meet to take decisions in the name of the council of ministers.
(ii) Ministers of State with Independent Charge : They are usually in charge of smaller ministries. They participate in the cabinet meetings only when they are invited.
(iii) Ministers of State : They are attached to and are required to assist the Cabinet ministers.

Question.2. Give any three functions (or responsibilities) of the government.[CBSE March 2011,12,13]
Answer. (i) Government collects taxes and uses it for administration, defence and development programmes.
(ii) Government ensures security to the citizens and provides facilities for education and health.
(iii) It formulates and implements several welfare schemes.

Question.3. What is public interest litigation? What is its importance ?[CBSE March 2011]
Answer. Any one can approach the courts if public interest is hurt by the actions of government. This is called the public interest litigation. The courts intervene to prevent the misuse of the government’s power to make decisions. They check the malpractices on the part of public officials.

Question.4. What is job reservation? What is its importance?
Answer. Under job reservation policy some percentage of total government job vacancies are reserved for people and communities who are economically or socially backward. Job reservation policy give a fair opportunity to those communities who so far had not adequately been represented in government employment.

Value Based Questions

Question.1. Mention the ethical values which are reflected by the coalition governmen ?
Answer. (i) Accommodating different groups and factions
(ii) Alliance
(iii) Interdependence
(iv) Cooperation

Question.2. Under what circumstances does the President exercise his discretion in the appointment of the Prime Minister. [CBSE March 2014]
Or
Explain the discretionary powers of the President.
Answer. With no single party getting a clear majority, a coalition of parties stake their claim to form the government. The President has to use his individual judgement and invite such a leader to head the government as Prime Minister, who can provide a stable government to the country.

Question.3. Why is there a need for political institutions? [CBSE 2015]
Or
Why are political institutions important? Give any three points.[CBSE March 2011]
Answer. (i) To take decisions : Countries need political institutions to take decisions regarding the welfare of the people. Institutions formulate various policies and programmes.
(ii) Implementation : The decisions which have been taken are to be implemented. So countries need institutions to implement the decisions.
(iii) To solve the disputes :
Institutions are also needed to solve the disputes between various institutions.
(iv) To take right decisions :
Institutions help the governments to take the right decisions.
(v) To avoid bad decisions :
Institutions follow a proper procedure to take decisions. Institutions make it difficult to have a good decision taken very quickly but they also make it equally difficult to rush through a bad decision.

The post Important Questions for CBSE Class 9 Social Science Working Of Institutions appeared first on Learn CBSE.

Important Questions for CBSE Class 9 Social Science Chapter 6 Democratic Rights

IMPORTANT QUESTIONS

Very Short Answer Type Questions (I Mark each)

Question.l. What are rights ?
Answer. Rights are reasonable claims of persons over other fellow beings over the society, and over the government recognised by society and sanctioned by law.

Question.2. Define Fundamental Rights.
Answer. The Fundamental Rights are those basic conditions which are considered essential for the overall development of a person. These are guaranteed under the Constitution.

Question.3. ‘Some rights need to be placed higher than the government’. Give reason.
Answer. Thought it is the duty of each democratic government to protect the citizen’s rights but sometimes elected governments may not protect or may even attack the rights of their own citizens. That is why some rights need to be placed higher than the government, so that the government cannot violate these.

Question.4. Define the rule of law. Do you think the rule of law prevails in India?
Answer. It means that the laws apply in the same manner to all, regardless of a person’s status.
Yes, the rule of law prevails in India. All are equal in the eyes of law.

Question.5. Mention any one exception to the Right to Equality as a Fundamental Right. Give reasons also.
Answer. The State may make any special provision for women and children.
It is necessary to give special treatment to some weaker sections of the society in order to ensure equal opportunity.

Question.6.Mention any two freedoms provided under Right to Freedom.
Answer.(i) Freedom of speech and expression.
(ii) Assembly in a peaceful manner.

Question.7. What is a secular state ?[CBSE2014]
Answer. A secular state is one that does not establish any one religion as official religion.

Question.8. What is Public Interest Litigation?[CBSE 2015]
Answer. Under the PIL, any citizen or group of citizens can approach the Supreme Court or a High Court for the protection of public interest against a particular law or action of the government. One can write to the judges even on a postcard. The court will take up the matter if the judges find it in public interest.

Question.9. What are Human Rights ?
Answer. Human Rights are those rights, which are inherent in our nature. Without these rights, we cannot live as human beings. Human rights allow us to fully develop and use our human qualities, intelligence, talents and conscience. They allow us to satisfy our spiritual and other needs.

Question.10. Mention any other two rights of the Indian citizens except the Fundamental Rights.
Answer. (i) Right to freedom of press.
(ii) Right to information.

Question.11. Mention any two rights which the Constitution of South Africa guarantees to its citizens.
Answer. (i) Right to privacy, so that citizens or their home cannot be searched,their phones cannot be tapped, their communication cannot be opened.
(ii) Right to an environment that is not harmful to their health or well-being.

Question.12. Mention any two exceptions to the Right to Equality.
Answer. (i) The State may make any special provision for women and children.
(ii) The State may reserve some posts for members of backward class.

Question.13. Mention any two limitations of freedom of speech and expression.
Answer. (i) No one can use this freedom to instigate violence against others.
(ii) No one can use it to incite people
to rebel against government.

Question.14. Mention the three evils which have been declared illegal under Right Against Exploitation.
Answer. (i) Traffic in human beings.
(ii) Forced labour or begar in any form.
(iii) Child labour.

Question.15. ‘India is a secular state’. Justify by giving examples.
Answer. (i) People of India are free to follow any religion.
(ii) India doesn’t have any official religion.
(iii) Every religious group or sect is free to manage its religious affairs.
Short Answer Type Questions (3 Marks)

Question. 1. Write any four features of the Right to Equality as a Fundamental Right.
Answer. (i) According to this law, the government shall not deny to any person in India equality before the law or the equal protection of the laws.
(ii) The government shall not discriminate against any citizen on the grounds of religion, caste, ethnicity, sex or place of birth.
(iii) All citizens shall have equality of opportunity in matters relating to any position in the government.
(iv) The principle of non-discrimination extends to social life as well.

Question. 2. Write a short note on the following fundamental rights:
(а) Right to Freedom of Religion.
(b) Cultural and Educational Rights.
Answer. (a) Right to Freedom of Religion :
Right to freedom of religion provides religious freedom to all the citizens of India. All religions are equal before the state and no religion will be given preference over the other. Citizens are free to practise their respective religions. Foremost objective of this right is to sustain the principle of secularism in the country. No state-run institution can give religious education. Religious communities can set up charitable institutions of their own.
(b) Cultural and Educational Rights: India is multi-religious, multi-lingual and multi-cultural, each having its own identity and characteristics. To preserve these diversities, it is natural to grant the following Cultural and Educational Rights to the minorities and other communities.
(i) Right to Conserve the Language, Script and Culture Under this Right minorities have the right to conserve their distinct language, script or culture and to join state-owned or state-aided institutions without discriminations.
(ii) Right to Establish Educational Institutions : Under this each minority group has a right to establish and administer educational institutions of its choice. The State shall not discriminate between minorities, while granting aid to their educational institutions.

Question. 3. “Right to Constitutional Remedies is a very special right”. What is so special about this right ?
Or
Dr Ambedkar called the Right to Constitutional Remedies, “the heart and soul of our constitution”. Give reason.
Answer. (i) It is through this Right that all other Fundamental Rights are safeguarded and arbitrary action of the state is checked.
(ii) Under this Right, a citizen is entitled to move the Supreme Court or any High Court or any other courts so authorised, if his/ her Fundamental Right (or Rights) is encroached upon, abridged or snatched away by the State, an individual or a body of persons. The courts are empowered to issue orders, directions and writs to the concerned to protect the rights of the complainant.

Question.4. Mention three major Constitutional provisions for the protection of women and children in India.
Or
Write three Constitutional provisions for the protection of women and children in India.
[CBSE March 2011]
Answer. (i) The Right to Equality : Under this the State can make special provisions for women and children.
(ii) Right Against Exploitation :
Under this traffic in human beings, especially women and children, shall be an offence punishable in accordance with the law.
(iii) Right Against Exploita-tion :
Under this no child below the age of 14 years shall be employed to work in any factory or mine or engaged in any other hazardous employment.

Long Answer Type Questions (5 Marks)

Question. 1. ‘The Right to Freedom is actually a cluster of several rights.’ Discuss.[CBSE 2015]
Answer. (i) Freedom to live in any part of India : All citizens are free to live in any part of India but State can put restrictions keeping in mind the welfare of local people.
(ii) Freedom to practice any profession or occupation: All citizens have the right to practice any profession or to carry on any occupation, trade or business.
(iii) Right to Free Movement: Every citizen of India has been granted freedom to move throughout the Indian territory.
(iv) Freedom to Assemble Peace¬fully: Indian citizens have been given the right to assemble without arms.
(v) Freedom of Speech and Expression : Democracy is a government by citizens. Freedom of speech and expression works as a barometer of public opinion.
(vi) Right to Form Associations or Unions : The Constitution guarantees the right to form associations and unions to every citizen of India.

Question.2. What was the Amnesty International’s report regarding the prisoners in Guantanamo Bay ? State the condition of prisoners according to the report of Amnesty International in Guantanamo Bay.[CBSE March 2013]
Answer. Amensty International which is an international human rights organisation, collected information in Guantanamo Bay and reported:
(i) Families of prisoners, media or even UN representatives were not allowed to meet these prisoners. The US army arrested them, interrogated them and decided whether to keep them there or not.
(ii) There was no trial before any magistrate in the US. Nor could these prisoners approach courts in their own country.
(iii) The prisoners were being tortured in ways that violated United States Laws.
(iv) They were being denied the treatment that even prisoners of war must get as per international treaties.
(v) Prisoners were not released even after they were officially declared not guilty.
Higher Order Thinking Skills (Hots) Questinos/Application Based Questions

Question.1. “Saudi Arabia is not a democratic country”. Justify. Mention any two rights which are enjoyed by the Indian citizens but not by citizens of Saudi Arabia.
Or
Compare the situation of India and Saudi Arabia in terms of right to freedom in both the countries.
Answer. (i) The country is ruled by a hereditary king and the people : have no role in electing or changing
their rulers.
(ii) The king selects the legislature as well as the executive. He appoints the judges and can change any of their decisions.
(iii) Citizens cannot form political parties or any political organisations.
Rights enjoyed by Indians but not by Saudi Arabians-
(i) There is no freedom of religion. Every citizen is required to be Muslim. Non-Muslim residents can follow their religion in private, but not in public.
(ii) Women are subjected to many public restrictions. The testimony of one man is considered equal to that of two women.

Question.2. State any three rights guaranteed by the Constitution of South Africa.[CBSE 2014 March]
Answer. (i) Right to privacy, so that citizens or their home cannot be searched, their phones cannot be tapped, their communication cannot be opened.
(ii) Right to an environment that is not harmful to their health or well being.
(iii) Right to have access to adequate housing.

Question.3. Which fundamental right is being violated under the following circumstances.
(a) A student belonging to SC category is not being allowed to use a public park.
(b) Citizens are not being allowed to hold a meeting.
(c) A women was sold to a rich landlord.
(d) You are being denied admission to a government college on the basis of your religion.
Answer. (a) Right to Equality.
(b) Right to Freedom.
(c) Right against Exploitation
(d) Cultural and Educational Right

Value Based Questions

Question.l. Why do we need rights in a democracy ? [CBSE March 2011,13,15]
Answer. (i) Fundamental Rights provide the conditions which are essential for the development of the inherent qualities in man and to secure his all round growth.
(ii) These are necessary to preserve human dignity and promote social progress in an atmosphere of freedom.
(iii) These provide civil liberties, without which democracy cannot be even conceived.
(iv) These are a significant check on the arbitrary use of power by the government.
(v) Rights protect minorities from the oppression of majority.

Question.2. Explain the Right against Exploitation.[CBSE March 2011,12,15] Or
Mention the provisions of Fundamental Right against exploitation. [CBSE March 2011 ]
Answer. (i) Prohibition of Traffic in Human Beings and Forced Labour : Under this traffic in human beings and “begar” or any other form of forced labour is prohibited. This means that sale and purchase of women, men and children and making a person work against their will without payment is banned.
(ii) Prohibition of Employ-ment of Children in Factories: No child below the age of 14 years shall be employed in a factory or mine and in other hazardous work. Thus child labour is banned, because this is considered as an exploitation, and as such it is illegal.

Question.3. Mention any three rights of a detained person. [CBSE March 2011 ]
Answer. (i) To be informed of the reason of arrest and detention.
(ii) To be produced before the nearest magistrate within 24 hours of arrest.
(iii) Right to consult a lawyer or engage a lawyer for his defence.

Question.4. Mention the restrictions that can be imposed on various forms of freedoms granted by the Constitution. [CBSE March 2011 ]
Answer. (i) Freedom of speech and expression — reasonable restrictions can be imposed on this freedom.
(ii) Restriction on freedom to hold meetings, processions, rallies and demonstrations and reasonable restriction in the interest of public order.
(iii) Restrictions on freedom to form associations and unions in the interest of public order, morality of sovereignty or integrity of India.

The post Important Questions for CBSE Class 9 Social Science Democratic Rights appeared first on Learn CBSE.

Important Questions for CBSE Class 9 Social Science Chapter 3 Poverty as a Challenge

IMPORTANT QUESTIONS

Very Short Answer Type Questions (1 Mark Each)

Question.1. What is poverty ? [CBSE 2015]
Answer. Poverty is a situation in which a person is unable to get the minimum basic necessities of life, i.e., food, clothing and shelter for his or her sustenance.

Question.2. What is mass poverty ?
Answer. Mass poverty is a situation in which a large section of people in economy are deprived of the basic necessities.

Question.3. What is BPL ?
Or
What is Poverty Line ?
Answer. In India, the concept of Poverty line is used as a measure of absolute poverty. So BPL (Below Poverty Line) is a line which demarcate the people, who are living below the poverty from those, who are living above the poverty line.

Question.4. Mention any two indicators of poverty.
Answer. (i) Level of income.
(ii) Level of consumption.

Question.5. Name any two poverty and unemployment alleviation
programmes which have been initiated by the government to remove poverty and unemployment in rural areas.
Answer. (i) The Rural Landless Employment Guarantee Programme.
(ii) Integrated Rural Development Programmer of IRDP.

Question.6. What is the accepted average calorie requirement in India
(i) In rural areas
(ii) In urban areas
(iii) Why calorie requirement is higher in the rural areas ?
Answer.(i) 2400 calories
(ii) 2100 calories
(iii) Since people living in rural areas engage themselves in more physical work, so calorie requirement in rural areas is higher than in the urban areas.

Question.7. How is the poverty line estimated periodically ? Name an organisation which is responsible for estimating poverty. [CBSE 2015]
Answer. The poverty line is estimated periodically by conducting sample surveys.
These surveys are carried out by the
National Sample Survey Organisation. (NSSO).

Question.8. Name any four poverty ridden states.
Answer. Odisha, Bihar, Assam and Tripura.

Question.9. Define poverty with contest to World Bank. Name any four countries which have high percentage of population living below poverty.
Answer. All those persons who live on less than $1.25 per day are considered living below poverty line.
(i) Nigeria
(ii) Bangladesh
(iii) India
(iv) Pakistan

Question.10. ‘The current anti- poverty strategy of the government is based broadly on two planks’. Name the two planks.
Answer. (i) Promotion of economic growth.
(ii) Targeted anti-poverty programmes.

Question.11. Name a poverty alleviation programme for rural areas with its objectives.
Answer. Rural Employment Generation Programme.
(i) The aim of the programme is to create self-employment
opportunities in rural areas and small towns.
(ii) A target for creating 25 lakhs new jobs has been set for the programme under the Tenth Five Year plan.

Question.12. Name any two social groups which are most vulnerable to poverty.
Answer. Scheduled Caste(SC) and Scheduled Tribe(ST).

Question.13. Mention any one historical reason for poverty.
Answer. Low level of economic development under the British.

Question.14. Name the Act through which a poor person can get 100 days assured employment.
Answer. National Rural Employment Guarantee Act.

Question.15. Name a scheme which was launched to create self-employment opportunities for the educated youth in the rural areas.
Answer. The Prime Minister Rozgar Yojana.

Short Answer Type Questions (3 Marks)

Question.1. ‘One historical reason is the low level of economic development under the British colonial administration.’ Explain.
Answer. (i) The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles.
(ii) The low rate of growth persisted until the nineteen eighties. This resulted in less job opportunities and low growth rate of incomes.
(iii) This was accompanied by a high growth rate of population. The two combined to make the growth rate of per capita income very low. The failure at both the fronts: promotion of economic growth and population control perpetuated the cycle of poverty.

Question.2. Discuss the major reasons for poverty in India.
Answer. (i) Lack of industrialisation: India is very backward from the industrial point of view. Hardly 3 per cent of the total working population is engaged in the large- scale industry.
(ii) Over dependence on agri-culture: Even after more than 60 years of independence more than 60 per cent of our total population still depends on agriculture for its livelihood. Due to shortage of inputs, our agriculture is backward.
(iii) Inflationary pressure : Upward trend in prices adversely affects the poor sections of the society.
(iv) Unemployment : Due to lack of job opportunities, more than 90 lakhs of our total working force is unemployed.

Question.3. What are the major objectives of the Prime Minister Rozgar Yojana ?
Answer. (i) The Yojana was launched in 1993.
(ii) The aim of the programme is to create self-employment
opportunities for educated unemployed youth in rural areas and small towns.
(iii) Under this unemployed are helped in setting up small business and industries.

Question.4. Which of the main factor responsible for the reduction of poverty in the following states:
(i) Punjab
(ii) Kerala
(iii) West Bengal
(iv) Tamil Nadu
Answer. (i) Punjab : Povety has been reduced due to high agricultural growth rate.
(ii) Kerala: Poverty has been reduced through human resource development.
(iii) West Bengal : Poverty has been . reduced through land reform measures.
(iv) Tamil Nadu : Poverty has been reduced through proper public distribution system.

Question.5. Give an account of the inter-state disparities in poverty in India.[CBSE2014]
Answer. (i) States with poverty ratio more than the national average :
Orissa, Bihar, Assam, Tripura and Uttar Pradesh are the most poverty ridden states of India. The poverty ratio in these states is much higher than the national average. Orissa and Bihar are the poorest states with poverty ratio of 47 and 43 respectively. Most of these states are facing rural as well as urban poverty.
(ii) States with poverty ratio less than the national average :
Recent studies show that in 20 states and union territories, the poverty ratio is less than the national average. There has been a significant decline in poverty ratio in Kerala, Andhra Pradesh, Tamil Nadu, Gujarat and West Bengal.
(iii) States with low poverty ratio :
States like Punjab, Haryana, Goa, Himachal Pradesh and Jammu Kashmir have very low percentage of population living below the poverty line.

Question.6. Answer the following questions briefly :
(i) What do you understand by human poverty ?
(ii) Who are the poorest of the poor ?
(iii) What are the main features of the National Rural Employ¬ment Guarantee Act, 2005 ?
Answer. (i) Human poverty is a broader concept of poverty. Along with food it also includes other necessities of life like education, shelter, health care, job, security, social equality, etc.
(ii) Apart from the social groups, there is also inequality of incomes within a family. In poor families, all suffer, but some suffer more than others. Women, elderly people and female infants are systematically denied equal access to resources available to the family. Therefore, women, children (especially the girl child) and old people are the poorest of the poor.
(iii) 1. The National Rural Employment Guarantee Act (NREGA) 2005 was passed in September 2005.
2. The act provides 100 days assured employment to every rural household in 200 districts.
3. Later, the scheme will be extended to 600 districts. One- third of the proposed jobs would be reserved for women.
4. The central government will also establish National Employment Guarantee Funds.
5. Similarly, state governments will establish State Employment Guarantee Funds for implementation of the scheme.
6. Under the programme, if an applicant is not provided employment within fifteen days, he/she will be entitled to a daily unemployment allowance.

Question.7.”There is a strong link between economic growth and poverty reduction.” Explain.
Answer.(i) Over a period of thirty years lasting up to the early eighties, there were little per capita income growth and not much reduction in poverty. Official poverty estimates which were about 45 per cent in the early 1950s remained the same even in the early eighties.
(ii) Since the eighties, India’s economic growth has been one of the fastest in the world. The growth rate jumped from the average of about 3.5% a year in the 1970s to about 6 % cent during the 1980s and 1990s. The higher growth rates have helped significantly in the reduction of poverty.
(iii) Economic growth widens opportunities and provides the resources needed to invest in human development.

Question.8. ‘The results of poverty alleviation programmes have been mixed.’ Give any four reasons.
Answer. (i) One of the major reason for less effectiveness is the lack of proper implementation and right targeting.
(ii) There has been a lot of overlapping of schemes.
(iii) Overpopulation
(iv) Corruption

Long Answer Type Questions (5 Marks)

Question.1. What are the major features of poverty ? Explain.
Answer. (i) It also is a situation in which
parents are not able to send their children to school or a situation where sick people cannot afford treatment.
(ii) Poverty also means lack of clean water and sanitation facilities.
(iii) It also means lack of regular job at a minimum decent level. Above all it means living with a sense of helplessness.
(iv) Poor people are in a situation in which they are ill-treated at almost every place, in farms, factories, government offices, hospitals, railway stations etc.
(v) Poverty when looked through other social indicators
like illiteracy level, lack of general resistance due to malnutrition, lack of access to healthcare, lack of job opportunities, lack of access to safe drinking water, sanitation etc.

Question.2. Describe the poverty trends in India since 1973. [CBSE March 2011,12]
Answer. (i) There has been a substantial decline in poverty ratios in India from about 55 per cent in 1973 to 30 per cent in 2009-10.
(ii) More than 56% of rural population was living below poverty in 1973 which has come down to 34%.
(iii) Around about 50 % of urban population was living below poverty in 1973 which has come down to 27%.
(iv) Although the percentage of people living under poverty declined in the earlier two decades (1973-1993), the number of poor remained stable around 320 million for a fairly long period.
(a) If the trend continues, people below poverty line may come down to less than 20 per cent in the next few years.

Question.3. Identify the various groups vulnerable to poverty. [CBSE 2014] Or
“The proportion of people below poverty line is also not same for all social groups and economic categories in India.” Explain.
Answer. (i) Social Groups: The social groups which are most vulnerable to poverty are scheduled caste and scheduled tribe households. Although the average for people below poverty line for all groups in India is 30, 48 out of 100 people belonging to scheduled tribes in rural areas are not able to meet their basic needs.
(ii) Economic groups : Similarly among the economic groups, the most vulnerable groups are the rural agricultural labour households and the urban casual labour households.
(iii) Inequality with in family :
Apart from these social groups, there is also inequality of incomes within a family. In poor families all suffer, but some suffer more than others. Women, elderly people and female infants are systematically denied equal access to resources available to the family.
Therefore women, children (especially the girl child) and old people are poorest of the poor.

Question.4. Explain some measures which have been taken by the government to remove poverty. [CBSE 2015]
Or
Describe the current government strategy to remove poverty in India.
Answer. To remove poverty government has adopted two approaches:
(1) Indirect approach : This covers achieving high economic growth rate, promotion of small scale industry, promotion of agriculture. This approach is also referred as trickle down effect. It was assumed that the development of industry and agriculture would create employment opportunities and income, which would lead to rapid economic development.
(2) Direct approach : Under direct approach government has launched various poverty alleviation programmes and food schemes to target the poor directly.
The government has launched various poverty alleviation schemes to control poverty.
(i) National Rural Employ-ment Guarantee Act (NREGA) 2005: It
was passed in September 2005. The Act provides 100 days assured employment every year to every rural household in 200 districts. Later, the scheme will be extended to 600 districts. One-third of the proposed jobs would be reserved for women. The central government will also establish National Employment Guarantee Funds. Similarly, state governments will establish State Employment Guarantee Funds for the implementation of the scheme. Under the programme, if an applicant is not provided employment within fifteen days, he/she will be entitled to a daily unemployment allowance.
(ii) National Food for Work Programme (NFWP) : It was
launched in 2004 in 150 most backward districts of the country. The programme is open to all rural poor, who are in need of wage employment, and desire to do manual unskilled work. It is implemented as a 100 per cent centrally sponsored scheme, and food grains are provided free of cost to the states. Once the NREGA is in force, the NFWP will be subsumed within this programme.
(iii) The Prime Minister Rozgar Yojana (PMRY) : It was started in 1993. The aim of the programme is to create self-employment opport¬unities for the educated unemployed youth in rural areas and small towns. They are helped in setting up small business and industries.
(iv) Rural Employment Generation Programme (REGP) : It was launched in 1995. The aim of the programme is to create self-employment opportunities in rural areas and small towns. A target for creating 25 lakh new jobs has been set for the programme under the Tenth Five Year Plan.
(v) Swamajayanti Gram Swarozgar Yojana (SGSY) : It was launched in 1999. The programme aims at bringing the assisted poor families
above the poverty line by organising them into self-help groups through a j mix of bank credit and government subsidy.
(vi) Pradhan Mantri Gramodaya Yojana (PMGY) : It was launched in 2000, additional central assistance is given to states for basic services such as primary health, primary education, rural shelter, rural drinking water and rural electrification.

Question.5. Explain any three major reasons for a widespread poverty in India.
Or
Discuss the major reasons for poverty in India. [CBSE 2015]
Answer. (i) British Rule : Britishers ruled India more than 100 years. Prior to the British rule, traditional industries, for instance, textiles, flourished in India. During the British rule, the government adopted policies to discourage such industries. This left millions of weavers poor. Even after fifty years of independent India, we can find a major section of the people engaged handicraft industries as , downtrodden.
(ii) Lack of industrialisation : India is very backward from the industrial point of view. Hardly 3 per cent of the total working population is engaged in the large- scale industry.
(iii) Over dependence on agriculture Even after more than 60 years of independence more than 60 per cent of our total population still depends on agriculture for its livelihood. Due to shortage of inputs, our agriculture is backward.
(iv) Inflationary pressure : Upward trend in prices adversely affects the poor sections of the society.
(v) Unemployment : Due to lack of job opportunities, more than 90 lakhs of our total working force is unemployed.

Higher Order Thinking Skills (Hots) Questions/Application Based Questions

Question.l. Study the given bar graph carefully, and answer the following questions :

Source : Economic Survey 2001-02, Ministry of Finance, Government of India.
(i) Identify the three states where the poverty ratio is the highest.
(ii) Identify the three states where poverty ratio is the lowest.
(iii) Why the states named by you in part (i) have a high poverty ratio ?
(iv) Why the states named by you in part (ii) have a low poverty ratio ? Mention one reason.
Answer. (i) Odisha, Bihar and Chattisgarh.
(ii) Himachal Pradesh, Punjab and Kerala.
(iii) Due to lack of job opportunities and high density of population.
(iv) Due to availability of work.

Question.2. Study the given figure carefully, and answer the following questions :
(i) Which area/country of the world had the largest concentration of poor in 1981 ?
(ii) Name the regions/countries where poverty has decreased (any two).
(iii) Whether the poverty in South Asia is increasing or decreasing. Give reason.
Answer. (i) China.
(ii) China, East Asia and the Pacific.
(iii) Poverty in South Asia is decreasing. In 1981 more than 50 per cent of the population
was living below the poverty line, but in 2001, it was approximately 30 per cent.

Question.3. Study the given bar graph carefully, and answer the following questions :
(i) Name any two social groups are highly vulnerable to poverty.
(ii) What is an average Indian poverty ratio ?
(iii) Name any two economic groups which are highly vulnerable to poverty.
Answer. (i) Scheduled tribes arid Scheduled castes.
(ii) 30 per cent.
(iii) Rural agricultural labourer households and the urban casual labour households.

Value Based Questions

Question.l. Suggest any four ways to reduce poverty in India. [CBSE 2015]
Answer. (i) There is need to invest in agriculture and industrial sector. The investment in both these sectors will lead to higher economic growth. The higher economic growth rate is expected to provide to more economic opportunities.
(ii) Increasing stress on universal free elementary education will help in the formation of human capital.
(iii) There is need to check high birth rate. The high birth rate leads to a mismatch between resources and population.
(iv) There is need for to empower women and economically weaker sections of society.

Question.2. What is the basic aim of following poverty alleviation programmes ?
(i) Prime Minister Rozgar Yozana (PMRY).
(ii) Rural Employment Gener¬ation Programme (REGP).
Answer. (i) The scheme which was started in 1993. The aim of the programme is to create self-employment opportunities for educated unemployed youth in rural areas and small towns. They are helped in setting up small business and industries.
(ii) Rural Employment Generation Programme (REGP)
The aim of the programme is to create self employment opportunities in rural areas and small towns and to develop entrepreneurial skill and attitude among rural unemployed youth.

Question.3. Mention any two causes of poverty in India.
Answer. (i) High growth rate of population.
(ii) Lack of job opportunities in the secondary sector.

Question.4. How can poverty be reduced in future in India ? Suggest any two points.
Answer. (i) Better Economic growth.
(ii) Increasing stress on universal free elementary education.

Question.5. “Poverty is a curse upon humanity.” Explain by giving two examples.[CBSE 2015]
Answer. (i) Poverty is a curse because most of the poor people live with a sense of helplessnes.
(ii) Poor people are debarred from the basic necessity if life, i.e. good health, drinking water etc.

The post Important Questions for CBSE Class 9 Social Science Poverty as a Challenge appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Outside Delhi -2014 

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1 The government has started promoting foreign capital. What is its economic value in – the context of Production Possibilities Frontier?
Answer. Promotion of foreign capital by the government will lead to an increase in resources as fresh investment into the country will increase leading to a rightward shift in PPF (Production Possibility Frontier).

Question.2 Define indifference curve.
Answer. An indifference curve is a curve which shows all those combinations (bundles) of two goods that give same level of (equal) satisfaction to the consumer.

Question.3 Define marginal product.
Answer. Marginal product refers to addition to the total product (output) when an additional unit of a variable factor (e.g., labour) is employed.

Question.4 What is market supply of a product?
Answer. Market supply of a product is the total quantity of a commodity supplied by all the producers at a given price, during a given period.

Question.5 What is imperfect oligopoly?
Answer. If in an oligopoly market, the firms produce differentiated products, it is called imperfect oligopoly e.g., Automobile industry.

Question.6 Why is Production Possibilities Curve concave? Explain.
Answer. The PP curve is concave because marginal rate of transformation, which is also its slope, increases continuously as more and more of one good is produced by reducing the quantity of the other good. It means that to produce more and more units of one good, each time the quantity of the other good is sacrificed at an increasing rate. MRT increases because no resource is equally efficient in production of all goods.

Question.7 When the price of a good falls from 710 to ?8 per unit, its demand rises from 20 units to 24 units. What can you say about price elasticity of demand of the good through the . ‘expenditure approach’?
Answer.

According to expenditure approach:
When price of a good falls and the total expenditure on the good also falls, the demand for that good is said to be inelastic, i.e., E_p<1. Here price and total expenditure both move in same direction, i.e., total expenditure is falling with a decrease in the price of the commodity, therefore elasticity of demand is less than unity.

Question.8 Explain how technological progress is a determinant of supply of a good by a firm.
Answer. Technological advancement is a continuous process on account of research and innovation constantly taking place in a society. Generally, advancement in technology raises productivity and thus reduces per unit cost. This makes production of the good using advanced technology more profitable. This induces the producer to produce more.
Or
Explain how input prices are a determinant of supply of a good by a firm.
Answer. Change in the price of raw material and remuneration of factors (rent, wages, interest, etc.)
influence the cost of production of a commodity and thereby the supply is affected.
For example, When prices of inputs fall then cost also falls leading to a rise in profit and increase in supply, shifting the supply curve to the right.

Question.9 Why is Average Revenue always equal to price ?
Answer. Average Revenue is the same thing as price. TR (Total Revenue) equals price multiplied by number of units sold and AR (Average Revenue) equals TR divided by number of units sold. Thus, price equals AR as proved in the following equation:

Question.10 Why is the number of firms small in oligopoly? Explain.
Answer. The main cause of a limited number of firms in oligopoly is the barriers in the form of patent rights, large capital, critical raw materials, etc.
For example, A new firm may find it extremely difficult to make a large capital investment or the patent holder may give licence only to a few firms to produce the product.

Question.11 A consumer consumes only two goods X and Y and is in equilibrium. Show that when the price of good X rises, the consumer buys less of good X. Use utility analysis.
Answer. The basic condition of consumer’s equilibrium in the case of two commodities according to utility analysis is:

As such, if the price of good X rises, the per rupee marginal utility of good Y will become more than that of good X. This will induce the consumer to buy more of good Y and less of good X by transferring expenditure from good X to good Y. This shows that when price of a good rises, its demand falls (the consumer will go on buying more of good Y till he reaches equilibrium again).
Or
Given the price of a good, how will a consumer decide as to how much quantity of that
good to buy? Use utility analysis.
Answer. Consumer’s equilibrium, according to utility analysis is established at a point where marginal utility in money terms is equal to the price of the commodity. Marginal utility goes on declining but price remains the same. Therefore, in such a situation a consumer shall go on consuming a commodity till he reaches a point where MU is equal to price. Consumer’s equilibrium in purchase of a single good is attained when:

Question.12 Give the meaning of “inferior” good and explain the same with the help of an example.
Answer. A good whose demand by a consumer falls with the rise in income of that consumer is called an inferior good, e.g., if a consumer reduces the consumption of toned milk when his income rises then toned milk is an inferior good for the consumer.
It is the income level of the individual consumer that makes a good normal or inferior for
him.

Question.13 Giving reasons, explain the ‘Law of Variable Proportions’.
Answer. The law of Variable Proportions states that “as we increase the quantity of only one input, keeping other inputs fixed, the total product increases at an increasing rate in the beginning, then increases at a decreasing rate after a level of output and ultimately falls.”
According to the law, the change in TP and MP are classified into three phases:
Phase I. TP increases at increasing rate and MP also increases. In the beginning the quantity of the variable input is so small that fixed inputs cannot be effectively utilised. As the quantity of variable input, e.g., labour increases, more effective utilisation of fixed inputs takes placejraising the marginal product of the variable input.
Phase II. TP increases at decreasing rate and MP decreases but remains positive. With increase in the quantity of variable input, a pressure is now being felt on the fixed inputs. The amount of fixed input looks smaller than actually required to engage the increasing variable input. This reduces MP of the variable factor, which however remains positive. Phase III. TP falls and MP becomes negative. This happens because the quantity of the variable input becomes too big in relation to the quantity of fixed inputs reducing the efficiency of the variable input.

Question.14 Explain why is an indifference curve (a) downward sloping and (b) convex.
Answer. An indifference curve is a curve which shows all the combinations of two goods that give the same level of satisfaction to the consumers.
(a) An indifference curve is downward sloping to the right. It means that if the quantity consumed of one good is decreased then the quantity consumed of the other good has
to be increased to compensate the consumer so that his level of satisfaction remains unchanged.
(b) Indifference curves are convex to the origin because of decreasing marginal utility. This is due to the fact that”as the consumer has more and more of good X, its marginal utility to him declines and that of the other commodity, i.e., good Y goes up. He is then willing to give up less and less of good Y for an increment of good X. So, due to law of diminishing marginal utility, MRS is decreasing making the indifference curve convex to the origin.
Or
Explain the concept of ‘Marginal Rate of Substitution’ with the help of a numerical example. Also explain its behaviour along an indifference curve.
Answer. The slope of an indifference curve is measured with the help of marginal rate of substitution, i.e., MRS. It is the rate at which die consumer is willing to sacrifice one good (Y) to obtain one more unit of the other good (X):
MSR = ΔY/ΔX
This can be explained with the help of a schedule and a diagram.
The indifference schedule of a consumer.

Question.15 From the following information about a firm, find the firm’s equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also find profit at this output.

Solution.

Reason. At the 3rd and the 4th units of output, revenue and total cost, profit is maximum which is equal to 1 in both the cases. But the producer will be in equilibrium at the 4th unit only because it is only at this level of output that both the equilibrium conditions are being satisfied, i.e.,
(i) MC = MR= Rs 6
(ii)MC > MR (8 > 6) after the MC = MR output level.

Question.16 Market of a commodity is change till the market again reaches equilibrium. Use diagram.
Answer. See Q. 14, 2014 (II Delhi).

SECTION B
Question.17 What are time deposits?
Answer. Time deposits are the deposits in a bank which cannot be withdrawn before the expiry of the stipulated time for which deposits have been made. Fixed deposits are time deposits.

Question.18 Define inflationary gap.
Answer. Inflationary gap refers to the gap by which actual aggregate demand exceeds the aggregate supply required to establish full employment equilibrium.

Question.19 What is full employment?
Answer. Full employment refers to a situation in which all those people, who are willing and able to work at the existing wage rate, get work without any difficulty.

Question.20 Define fiscal deficit.
Answer. Fiscal deficit refers to the excess of total expenditure over the total receipts (excluding . borrowings) during the given fiscal year.
Fiscal Deficit = Total Budget Expenditure – Revenue Receipts + Capital Receipts excluding borrowings

Question.21 Define foreign exchange rate. 
Answer. Foreign exchange rate refers to the rate at which One currency is exchanged for another currency.

Question.22 What are externalities? Give an example of a positive externality and its impact on welfare of the people.
Answer. Externalities refer to the benefits of harms of an activity caused by a firm or an individual for which they are not paid or penalised. Activities resulting in benefits to others are called positive externalities.
Example, Construction of a flyover or a highway reduces transport cost and journey time of its users. Expenditure on construction is included in GDP but not the positive externalities which increase welfare. This implies that the welfare is much more than indicated by GDP.

Question.23 Explain the significance of the ‘Unit of Account* function of money.
Answer. The unit of account function of money is also called the measure of value function. Money as a unit of account means a standard unit for quoting prices. It makes money a powerful medium of comparing prices of goods and services. By reducing the value of all the goods and services to a single unit, we have a common denominator in terms of money and then it becomes very easy to find out the exchange ratios between them.
Or
Explain the significance of the ‘Standard of Deferred Payment’ function of money.
Answer. Money as a standard of deferred payment means standard of payment contracted to be made at some future date. This is possible because value of money remains more or less
Constant and has the merit of general acceptability. This function of money has facilitated borrowing and lending activities. It has also led to the creation of financial institutions. Which are the lifeline of modem business.

Question.24 Is the following a revenue receipt or a capital receipt in the context of government budget and why?
(i) Tax receipts (ii) Disinvestment
Answer.

1.  Tax receipts. These are revenue receipts as they neither create any liability nor lead to any reduction in the value of assets.
2. Disinvestment. This is a capital receipt as it leads to reduction in assets.

Question.25 Distinguish between ‘autonomous’ and ‘accommodating’ Balance of Payments transactions.
Answer. See Q. 29, 2013 (Comptt.I Delhi).

Question.26 Foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?
Answer. A rise in foreign exchange rate makes the domestic goods cheaper to foreigners. As a result foreign demand for domestic goods increases leading to increase in exports. Example, if price of 1 US dollar rises from       Rs 50 to Rs 55, then exports to USA will increase as Indian goods will become relatively cheaper. This will also raise supply of foreign exchange.

Question.27. Explain ‘Banker to the Government’ function of the central bank.
Answer. As banker to the government (both Central as well as State Governments), central bank provides all those services and facilities to the Government which public gets from commercial banks. The central bank accepts Government’s deposits and undertakes inter¬bank transfers. It also gives loans to the Government.
As an agent, it manages public debt and undertakes payment of interest on this debt.
As an advisor, it gives advice to the Government regarding money market, capital market and on economic policy matters.
Or
Explain ‘Bankers’ Bank’ function of the central bank.
Answer. Being the apex bank, the central bank acts as the banker to other banks in three capacities.

1. It is the custodian of their cash reserves. Banks of the country are required to keep a certain percentage of their deposits with the central bank (known as Cash Reserve Ratio). In this way, central bank acts as a custodian of cash reserves of commercial banks.
2. As lender of the last resort, the central bank extends loans to commercial banks when all other sources of raising funds are practically closed.
3. It acts as a bank of central clearance, settlements and transfers. As all commercial banks have their accounts with the central bank, it can easily settle claims of various commercial banks against each other by making debit and credit entries in their accounts. As a supervisor, the central bank regulates and controls the commercial banks by taking care of their licensing, branch expansion, etc.

Question.28 Calculate Marginal Propensity to Consume from the following data about an economy which is in equilibrium.
National income = 2,000
Autonomous consumption expenditure = 200
Investment expenditure = 100
Solution.

*Question.29. Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.
Answer. Economic inequality is an inherent part of every economic system. Government aims to influence distribution of income by imposing taxes on the rich and spending more on the welfare of the poor. Increase in tax rates will reduce income of the rich. The amount so collected will be spent -for the welfare of poor and will raise their standard of living, thereby reducing inequalities in the distribution of income.

Question.30 Calculate ‘Net National Product at factor cost’ and ‘Gross National Disposable Income’ from the following:

Answer.

Question.31 How should the following be treated in estimating national income of a country? You must give reason for you answer.

1.  Taking care of aged parents
2.  Payment of corporate tax
3.  Expenditure on providing police services by the government.

Answer.

1.  Taking care of aged parents. It is a non-economic activity as love and affection cannot be measured in terms of money and hence should not be included while estimating national income.
2.  Payment of corporate tax. It is a part of profit which is already included in national income. So it will not be included in national income separately.
   national income as it is a part of government final consumption expenditure.

Question.32 When is an economy in equilibrium? Explain with the help of saving and Investment functions. Also explain the changes that take place in an economy when the economy is not in equilibrium. Use diagram.
Answer. According to the saving and Investment approach, the national income in an economy is in equilibrium when planned savings are equal to planned investment. Savings are the excess of income over consumption expenditure whereas investment refers to the expenditure incurred on creation of new capital assets.
We can understand this with the help of a schedule and -diagram:

As per the diagram, Investment curve (I) being autonomous in nature, is parallel to the X-axis. The Saving curve (S) slopes upwards showing a positive relationship between savings and income. The income is in equilibrium at point E where ex-ante saving is equal to ex-ante investment.
If there is any deviation from the equilibrium level of income, then a process of readjustments will start which will bring the economy back to the equilibrium level.

1.  When saving is more than Investment. If planned saving is more than planned investment, i.e., after point E (in the diagram), it means that households are not consuming as much as the firms expect them to. Hence, inventory rises above the desired level. As a result, firms would plan to reduce production till saving and investment become equal again.
2.  When saving is less than Investment. This means that households are consuming more and saving less than what the firms expect them to. As a result, inventory falls below the desired level. Therefore, the firms increase production till saving again becomes equal to investment.

                                                                                                    Or
Outline the steps required to be taken in deriving the Consumption Curve from the given Saving Curve. Use diagram.

Answer. Consumption and saving curves are complementary curves. This means that if one of the functions is known then the other can be easily obtained. Consumption function refers to the functional relationship between consumption and national income.
As shown in the diagram, a straight line saving curve is plotted showing saving function at different levels of income.

1.  First we draw a 45° income line from the origin.
2.  At zero level of income, autonomous consumption expenditure will be shown equal to OC (same as dissaving equal to OS). This is the starting point C of the Consumption curve.
3.  At income level OR saving is zero implying that consumption expenditure must be equal to income? Therefore, by drawing a perpendicular from point R which intersects the 45° line, we obtain point B.
   (w) By joining points C and B and extending it further, we derive the Consumption curve. Note: The following question is for the Blind Candidates only in lieu of Q. No. 32.

Define Investment. Explain national income equilibrium through saving and Investment function. Also explain the changes that take place in an economy when the economy is not in equilibrium.
Answer. Please read the above answer to Q. 32.
Or
What is Consumption Function? How can it be derived from the Saving Function? Explain.
Answer. Please read the above answer to Q. 32(Or).

SET II

Note: Except for the following questions, all the remaining questions have been asked in Set-1.
SECTION A
Question.3 Give the meaning of ‘inelastic demand’.
Answer. When the percentage change in demand is less than the percentage change in price demand is said to be less elastic or inelastic.

Question.5 Define marginal revenue.
Answer. Marginal revenue is defined as addition to the total revenue from producing one more unit of output.

Question.8 When the price of a good rises from Rs10 to Rs 12 per unit, its demand falls from 25 units to 20 units. What can you say about price elasticity of demand of the good through the ‘expenditure approach’?
Solution.

According to expenditure method, if price and expenditure are inversely related, demanc is considered elastic. Here price is increasing and total expenditure is decreasing. Therefore, E_p is greater than one, i.e.,  E_p > 1.

Question.13 How does change in price of a substitute good affect the demand of the given good?
Explain with the help of an example.
Answer. Two goods are said to be substitutes if one can be used in place of the other. There is a positive relation between the price of a substitute and the demand for the given good. Example, In case of tea and coffee, if price of coffee falls then the demand for tea is also likely to fall as it has now become relatively expensive in comparison to coffee. As such, with the fall in price of a substitute (coffee) the demand for the given good (tea) falls.

Question.14 Market of a commodity is in equilibrium. Demand for the commodity ^increases’. Explain the chain of effects of this change till the market again reaches equilibrium. Use, diagram.
Answer. Market equilibrium is achieved when quantity demanded is equal to quantity supplied in the market.
Chain of effects. See Q. 16, 2011 (I Delhi).

SECTION B
Question.18 What is floating exchange rate?
Answer. If the market forces determine the conversion rate of currencies, it is called floating exchange rate.

Question.20 Define deflationary gap.
Answer. Deflationary gap is the gap by which actual aggregate demand falls short of aggregate supply required to establish full employment equilibrium.

Question.24 When foreign exchange rate in a country is on the rise, what impact is it likely to have on imports and how?
Answer. A rise in foreign exchange rate would make foreign goods more expensive for the domestic buyers. This simply means that for imports buyers shall have to pay more. This would reduce their demand and hence lead to a decline in domestic country’s imports.

Question.29 Calculate investment expenditure from the following data about an economy which is in equilibrium:
National income = 1,000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100
Solution.

Question.31 Calculate ‘National Income’ and ‘Net National Disposable Income’ from the following:


Answer.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set-I and Set-11.
SECTION A
Question.1 Define variable cost.
Answer. Variable costs are the costs which change with the change i,n level of output of a good.

Question.5 What is meant by monotonic preferences?
Answer. Monotonic preferences means that a consumer always prefers more of a good as it offers him a higher level of satisfaction.

Question.10 A consumer buys 27 units of a good at a price of ?10 per unit. When the price falls to ?9 per unit, the demand rises to 30 units. What can you say about price elasticity of demand of the good through the ‘expenditure approach’?
Solution.

If a fall or rise in price leaves the total expenditure unaffected, elasticity of demand is unitary elastic. Therefore, in this case  E_p = 1, as despite a decrease in price, total expenditure has remained the same.

Question.11 How does change in price of a complementary good affect the demand of the given good? Explain with the help of an example.
Answer. Complementary goods are a pair of goods which are used together to satisfy a given want. A fall in the price of one commodity leads to rise in the demand of the other commodity also, e.g., car and petrol. If price of petrol falls, demand for its complementary good, say, car will increase.

SECTION B
Question.17 What is ‘excess demand’ in macroeconomics?
Answer.The excess of aggregate demand over aggregate supply at full employment level of output is called ‘excess demand’ in macroeconomics.

Question.19 What is ‘managed floating exchange rate’?
Answer. The managed floating exchange rate refers to a system in which foreign exchange rate is determined by market forces and the central bank stabilizes the value of currency in case of extreme appreciation or depreciation.

Question.23 Explain the effect of appreciation of domestic currency on exports.
Answer. Appreciation of domestic currency means a rise in the price of domestic currency in terms of foreign currency. After the appreciation of domestic currency, less of the domestic currency is required to buy the foreign currency. This means that the domestic goods become more expensive for the foreign buyers leading to a decline in their demand. Hence exports would decline.

Question.27 Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium:
National income = 500
Marginal propensity to save = 0.30 Investment expenditure = 100
Solution.

Question.32 Calculate ‘Net National Product at Market Price’ and ‘Gross National Disposable Income’ from the following:

Solution.

The post CBSE Sample Papers for Class 12 Economics Outside Delhi -2014 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics  Delhi -2013

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1. Give two examples of fixed costs.
Answer. Rent of the building and Salary of the manager.

Question.2. Define marginal cost.
Answer. Marginal cost may be defined as the change in total cost that takes place by producing an additional unit.

Question.3. When is the demand for a good said to be inelastic?
Answer. When the percentage change in the demand of a product is less than the percentage change in its price, the demand is said to be inelastic.

Question.4. Give the meaning of market demand.
Answer. Market demand is the sum total demand of all the buyers of a good at a point of time at a given price.

Question.5. Under which market form a firm s marginal revenue is always equal to price?
Answer. Under perfect competition marginal revenue is always equal to price.

Question.6. Explain the difference between an inferior good and a normal good.
Answer. See Q. 7, 2009 (I Delhi).

Question.7. Explain the law of diminishing marginal utility with the help of a total utility schedule.
Answer. See Q. 11,2011 (HI Outside Delhi).
Or
Explain the conditions of consumer’s equilibrium with the help of utility analysis.
Answer. Consumer’s equilibrium will be attained at a point where marginal utility of a commodity is equal to its price. However, MU is expressed in terms of utils and price is expressed in money form. Therefore, equality of MU it utils and price cannot be the basis of consumer’s equilibrium. Hence, marginal utility also needs to be expressed in money form.
Marginal utility in money form can be obtained by dividing it (MU) by marginal utility of one rupe6T’ Marginal utility of ?1 is the extra utility when an additional rupee is spent on other available goods in general. Suppose that for an additional rupee we get two units of some other commodity, then marginal utility of rupee is 2 (utils). Knowing marginal utility (MU) of a commodity and marginal utility of a rupee, we can find out marginal utility of a commodity in money terms in the following way:
Marginal Utility in Money terms =

Question.8. When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the revenue of the firm producing this good rises from Rs 100 to Rs 300. Calculate the price elasticity of supply.
Answer.

Question.9. Complete/the following table:

Answer.

Question.10. Explain “large number of buyers and sellers” feature of a perfectly competitive market.
Answer. Under perfect competition, the number of buyers is very large. The number is so large that no individual buyer can influence the market price. Every buyer buys only a fraction out of the total sale of the product. .
It is an important characteristic of perfect competition because of which every buyer, like a firm, has to accept the price which is fixed by the supply and demand of the whole industry. At this price a buyer can buy any quantity of the product.

Question.11. Production in an economy is below its,potential due to unemployment. Government starts employment generation schemes. Explain its effect using production possibilities curve.
Answer. In the given case because of the unemployment in the economy, the given resources are not being fully utilized. To reduce unemployment, demand should be generated. For solving this problem government starts such schemes which generate employment. As a result of which the point of actual operation will move to or move nearer to the situation where there is no unemployment. This situation , can be explained with the help of a production possibility curve. As shown in the diagram the point of operation due to unemployment will be P. When new employment generation schemes are introduced, the point of operation will move on to the right side of production possibility curve, where there is no unemployment. In short, the point of operation shifts from point P to point M or T or any other point on the Production Possibility curve AB.

Note: The following question is for the blind candidates only in lieu of Q. No. 11.
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effects using production possibilities schedule.
Answer. Due to lack of demand given resources are not being fully employed.This means there is unemployment of resources. For solving this problem government starts many employment generating schemes. As a result of this, given resources are better of fully utilized. We can explain this with the help of a production possibility schedule. Two tables are being given below. Table-I indicates the production possibilities which can be sought by fully utilizing the given resources. In Table-II, the production possibilities which are actually available, are indicated; these possibilities show unemployment of resources. Therefore, government can start employment generating schemes with the help of which we can move from Table- II to Table-I.

Question.12. Explain the conditions of producer’s equilibrium with the help of a numerical example.
Answer. Producer’s equilibrium refers to a combination of price and quantity of output which yields the producer the maximum profit. For achieving this combination two conditions need to be fulfilled:
(i) The difference between total cost and total revenue must be the maximum.
(ii) At the point where the difference between TC and TR is maximum MR and MC and should also be equal, Any departure from this position will not ensure maximum profit.
In the Table, the difference between TR and TC is maximum at 3 unity as well as at 4 units but the point of equilibrium is 4 units because at this point MC = MR. These two conditions can be explained with the help of a table given below:

The above position can be graphically shown in the diagram given below:

Question.13. The price elasticity of demand for a good is -0.4. If its price increases by 5 per cent, by what percentage will its demand fall? Calculate.
Answer.

Or
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Answer. See Q. 7,2009 (III Outside Delhi).

Question.14. Giving reasons, state whether the following statements are true or false:
(i) A monopolist can sell any quantity he likes at a price.
(ii) When equilibrium price of a good is less than its market price, there will be competition among the sellers.
Answer. (i) The statement is false. The price is fixed at a point where marginal cost is equal to marginal revenue. If a monopolist fixes a price less or more than the price fixed at equilibrium point, the quantity will be more or less than the equilibrium quantity but not the quantity that a monopolist would like to sell.
(ii) The statement is true. In this situation, market price is higher than the equilibrium price. As a result of which supply will be more “than demand. As such there will be competition among the sellers. In other words, sellers would like to sell their entire . quantity to meet the demand which (supply) is much more than the demand.

Question.15. Explain the Law of Variable Proportions with the help of total product and marginal product curves. “
Answer. See Q, 15-2608 (I Delhi).
Note: The following question is for Blind Candidates only in lieu of Q. No. 15.
Explain the Law of Variable Proportions with the help of total product and marginal product schedule.
Answer. See Q. 15, 2008 (I Delhi).

Question.16. Explain consumer’s equilibrium with the help of Indifference Curve Analysis.
Answer. Consumer’s equilibrium refers to the optimum combination of the two goods which a consumer can afford (given his income and price of two commodities) and this combinations gives him maximum satisfaction that he possibly can get.
According to indifference curve analysis, consumer’s equilibrium is established at a point where budget line is tangent to the highest attainable indifference curve. At this point the

Or
Explain the relationship between .
(i) Prices of other goods and demand for the given good.
(ii) Income of the buyers and demand for a good.
Answer. (i) Prices of other goods and demand for the given good. Prices of other goods may also affect the demand for a commodity. The other goods may be substitute goods or complimentary goods.

• Prices of substitute goods. Substitute goods are those goods which can be used in • , place of one another, such as tea and coffee, ff the price of tea goes up the demand
  for coffee will increase because it now becomes relatively cheaper in comparison to tea. On the other hand, when the price of tea falls, its demand will increase because it is now relatively cheaper in.comparison to coffee.
• Prices of complementary goods. Complementary goods are those goods which
  cannot be used without one another, such as car and petrol. If the price of car goes up, its demand will fall and this would lead to a fall in the demand for petrol also. The reverse will happen when the price of car falls. V

(ii) Income of the buyers and demand for-a good. Income of the consumer also affects the demand for a commodity. Generally with the increase in income, the demand for a commodity goes up and vice -versa. However, the effect of increase in income is not uniform on the demand of all the commodities. As a result of increase in income, the demand for normal goods goes up and that for inferior goods goes down. The reverse of it happens when income falls.

SECTION B
Question.17, How can increase in foreign direct investment affect the price of foreign exchange?
Answer. Increase in foreign direct investment will increase the supply’ of ‘foreign exchange and therefore it will reduce the price of foreign exchange.

Question.18. What are demand deposits?
Answer. Demand deposits are those deposits which a depositor can withdraw at any given time by writing a cheque.

Question.19. Give one example of “externality” which reduces welfare of the people.
Answer. Smoke emitted by factories is an example of an externality which is negative and reduces welfare of the people.

Question.20. Give two examples of indirect taxes.
Answer. Excise duty and Sales tax.

Question.21. What is a Government Budget?
Answer. A Government Budget is a statement of estimated public receipts and estimated public expenditure during a fiscal year.

Question.22. Explain the problem of double coincidence of wants faced under barter system. How has money solved it?
Answer. Under barter system goods were exchanged for goods. In other words, barter economy signifies the exchange of goods through the medium of goods. However, this system created many difficulties. The most important difficulty is the lack of double coincidence of wants. This means barter transactions can only be possible when two persons desiring exchange of commodities should have such commodities which are mutually needed by each other. For example, if Ram wants cloth, which Shyam has, then Ram should have such a commodity that Shyam wants. In the absence of such coincidence of wants, there will be no exchange. However, it is very difficult to find such a person where there is coincidence of wants.
Money acts as a medium of exchange and the consumer can exchange it for purchase of any goods or services which he needs.

Question.23. Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each.
Answer. Revenue expenditure. An expenditure which does not result in the creation of assets or reduction of liability is called revenue expenditure. Expenditure incurred on payments of salaries, pensions etc. are die examples of revenue expenditure.
Capital expenditure. An expenditure which results in the creation of assets or reduction in liabilities is capital expenditure. Expenditure incurred on construction of buildings, roads, bridges etc. and buying land are the examples, of capital expenditure.
Or
Distinguish between revenue deficit and fiscal deficit.
Answer. Revenue deficit is equal to the excess of total revenue expenditure over the total revenue receipts. On the other hand, fiscal deficit is equal to the excess of total expenditure over the sum of revenue and capital receipts excluding borrowings. Thus, as is clear from the above statement, revenue deficit relates to total revenue receipts and total revenue expenditure, whereas, fiscal deficit relates to the difference in total expenditure (revenue and capital) and total receipts (revenue and capital) excluding borrowings.

Question.24. Explain any one objective of Government Budget.
Answer. An important objective of government budget is to maintain economic stability. Economy of a country is affected by economic fluctuations such as conditions of boom and depression.
Such changes benefit some and harm others. In such a situation appropriate policy measures are required by the government to affect the levels of aggregate demand. Such measures are called stabilization measures. These measures aim at avoiding the situations of inflation and unemployment.

Question.25. Explain the effect of appreciation of domestic currency on imports.
Answer. Increase in the external value of domestic currency in the foreign exchange market is called appreciation of the domestic currency. As a result of the appreciation of the domestic currency, imports relatively become cheaper and hence they increase. On the other hand, as a result of appreciation exports decline.

Question.26. Distinguish between balance of trade and balance on current account.
Answer. Balance of trade is confined to the difference between Export of Goods and Import of Goods. On the other hand, the Balance on current account of a country includes payments and receipts relating to visible trade (export and import of goods), invisible (services) and unilateral transfers. Thus, Balance of trade is a restricted term in comparison to Current account balance.

Question.27. Calculate “Sales” from the following data:

Answer.

Question.28. Giving reasons categorise the following into stock and flow:
(i) Capital (ii) Saving
(iii) Gross domestic product (iv) Wealth
Answer. (i) Capital is a stock. Tins is so because Capital is measured at a point of time.
(ii) Saving is a flow. This is so because it relates to a period of time.
(iii) Gross domestic product is a flow-because it relates to a time period which is generally one fiscal year.
(iv) Wealth is a stock because it is measured at a point of time.
Or
Explain the circular flow of income.
Answer. See Q. 25,2009 (I Delhi).

Question.29. Explain “Banker to the Government” function of the central bank.
Answer. Banker to the Government. Central bank is the banker, agent and financial advisor to the government. As a banker to the government, it carries out all banking businesses of the government. The government keeps its cash balance in Current Account with the central bank.
As an agent to the government, it buys and sells securities on behalf of the government. As a financial advisor, the central bank advises the government from time to time on economic, financial and monetary matters.

Question.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure is 1100. Calculate
(i) Equilibrium level of National Income.
(ii) Consumption expenditure at equilibrium level of National Income.
Answer.

Question.31. Complete the following table:

Answer.

Question.32. Calculate National Income from the following data:

Answer. National Income
= Private final consumption expenditure + Government final consumption expenditure +
Gross domestic capital formation + Net factor income from abroad fixed capital – Net imports – Net indirect taxes
= (i) + (iii) + (v) + (vii) – (viii) – (ix) – (iv)
= 900 + 400 + 250 + (-40) – 20 – 30 – 100 = Rs 1,360 Crores
Or
Calculate net national disposable income from the following data:

Answer.

SET II

Note: Except for the following questions, all the remaining questions have been asked in Set I.
SECTION A
Question.1. Give two examples of variable costs.
Answer. (i) Cost of raw materials and (ii) Wages of labourers working on daily-wage rate.

Question.8. A firm’s revenue rises from Rs 400 to Rs 500 when the price of its product rises from Rs 20 per unit to Rs 25 per unit. Calculate the price elasticity of supply.
Answer.

Question.9. Complete the following table:

Answer.

Question.10. Explain any two features of monopoly market.
Answer. (i) Single seller. A monopoly market has a single seller of the commodity. This single person has complete control on the output of the commodity. In that sense it is also the price-maker.
(ii) No close substitutes. All the units of a commodity are similar and there are no close substitutes of that commodity.

Question.12. The demand for a good rises by 20 per cent as a result of fall in its price. Its price elasticity of demand is (-) 0.8. Calculate the percentage fall in price.
Answer.


Therefore percentage fall in the price will be 25%.
Or
How is price elasticity of demand affected by:
(i) Number of substitutes available for the good. (ii) Nature of the good.
Answer. (i) Number of substitutes available for the good. The demand for a commodity will be very elastic if some other commodities can be used for it. A small rise in the price of such a commodity will induce consumers to use its substitutes.
For example, gas, kerosene oil, coal etc. will be used more as fuel if the price of wood increases. On the other hand, the demand of such commodities is inelastic which have no substitutes such as salt.
(ii) Nature of the good. Generally, the demand for necessities is inelastic and that for comforts and luxuries of life, is elastic. This is so because certain goods, which are essential to life, will be demanded at any price, whereas goods meant for luxuries and comforts can be dispensed with easily, if they appear to be costly.

SECTION B
Question.28. How do commercial banks create deposits? Explain.
Answer. See Q. 31,2010 (Comptt. I Outside Delhi).

Question.30. In an economy, S = – 100 + 0.6 Y is the saving function, where S is Saving and Y is National Income. If investment expenditure is 1100, calculate:
(i) Equilibrium level of National Income
(ii) Consumption expenditure at equilibrium level of National Income.
Answer.

Question.32. Complete the following table:

Answer.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set I and SetII
SECTION A
Question.1. Give an example each of fixed cost and variable cost.
Answer. Example of fixed cost: Rent of a building
Example of Variable cost: Cost of raw materials

Question.8.The price elasticity of supply of a good is 0.8. Its price rises by 50 per cent. Calculate the percentage increase in its supply.
Answer.

Question.9. Complete the following table:

Answer.

Question.10. Explain “freedom of entry and exit to firms in industry” feature of monopolistic competition.
Answer. Freedom of exit and entry of the firm. Under monopolistic competition, old firms have the freedom to leave the competition and new firms have freedom to enter the industry. Because of this aspect of monopolistic competition a firm in the long run gets only normal profits, i.e., AR = AC. If a firm is getting abnormal profits, other firms enter the industry and the same disappear. Hence, the position of a firm under monopolistic competition in the long run with regard to profits is like that of a competitive firm and unlike that of a monopoly firm.

Question.12. Give the meaning of producer’s equilibrium. A producer produces that quantity of his product at which marginal cost and marginal revenue are equal. Is he earning maximum profits? Give reasons for your answer.
Answer. According to the MC and MR equality approach, the producer’s equilibrium is established at a point where MC = MR. Any deviation from this position will either reduce the profit of a firm or increase the losses.
By MC, we mean the change that takes place in the TC by producing an additional unit. MR (Marginal Revenue) means the change in TR (Total Revenue) that takes place by selling an additional unit. As long as the cost of production of an additional unit is less than the additional revenue available from its sale, the firm shall go on increasing its output. However, with the increase in the output MC keeps on increasing. With the result, the gap between MR and MC declines and a point comes where they are equal. This is the point of equilibrium. If a firm increases its output beyond this point, MC will be greater than MR resulting in decline in profit. Therefore, as shown in the diagram, the equilibrium output is OQ, where MR = MC (MR relates to perfect competition).

SECTION B
Question.27. Calculate “sales” from the following data:

Answer. Sales
= Net values added at factor cost + Intermediate costs + Consumption of fixed capital – Subsidy – Change in stock
= (v) + (i) + (ii) – (iv) – (iii) = 1,300 + 700 + 80 – 60 – (-50) = Rs 2,070 Lakhs

Question.31. C = 50 + 0.5 Y is the consumption function where C is consumption expenditure and Y is National Income and investment expenditure is 2,000 in an economy. Calculate:
(i) Equilibrium level of (national) income
(ii) Consumption expenditure at equilibrium level of (national) income.
Answer.

Question.32. Complete the following table:

Answer.

The post CBSE Sample Papers for Class 12 Economics Delhi -2013 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Compartment Delhi -2014

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SETI

SECTION A
Question.1 Name the economic value achieved through the spread of education in the context of production potential.
Answer. In the context of production potential through the spread of education, the economic value achieved would be better quality and more output along with increase in income and standard of living.

Question.2 Give the meaning of utility.
Answer. Utility means actual or expected satisfaction to a consumer from the consumption of a good.

Question.3 Give two examples of implicit costs.
Answer.Two examples of implicit costs:

1. Estimated salary of the owners.
2.  Estimated rent of the building owned by the owner of business.

Question.4 When is supply of a good said to be price inelastic?
Answer. When the percentage change in quantity supplied is less than the percentage change in price, then the supply for such a commodity is said to be price inelastic.

Question.5 Why does average fixed cost fall With increase in output?
Answer. As total fixed cost is constant in the short run, the average fixed cost falls with every increase in output.

Question.6 Why does the problem of ‘what to produce’ arise? Explain.
Answer. See Q. 11, 2010 (I Delhi). [Page 60

Question.7 A and B are substitute goods. Explain,the effect of rise in price of A on the demand for B.

Answer. Substitute goods are a pair of goods which can be used in place of each other. Demand for a given commodity is affected if the price of its substitute falls or rises. For example, Demand for commodity B will increase (its price remaining the same) if price of its substitute, commodity A rises, because then commodity B will become relatively cheaper. Thus, a rise in the price of substitute good A will increase the consumer’s demand for the given substitute good B.
or
Explain any two causes of “increase” in demand.
Answer. When demand rises due to change in factors other than price, it is called increase in demand. Causes of increase in demand are:

1. Rise in price of substitute goods In case of substitutes, an increase in the price of one substitute will increase the demand for the other substitute. For example, a rise in the price of tea will lead to a.fise.in the demand of coffee.
2. Fall in price of complementaryrgoods. The demand for a good and price of its complementary good are negatively related. A decrease in price of a complementary good increases the demand for the rommodity in question. For exampleT a fall in the  price of petrol causes an increase in the demand for cars.

Question.8 Calculate marginal cost at each level of output:

Answer.

Question.9 At a price of  Rs 10 per unit the supply of a good is 80 units. When its price rises to Rs 12 per unit, its supply rases by 20 per cent. Calculate price elasticity of supply.
Answer.

Question.10 Explain any two causes of a rightward shift in supply curve.
Answer. The supply Curve can shift rightwards because of the following two reasons:

1. Upgradation of technology. Adv&need and improved technology reduces the cost of
   production and raises the profit margin leading to a rightward shift in the supply curve.
2. Decrease in price of factors of production. When price of factors of production falls,
   cost of production falls and profit margin rises. It increases the supply shifting the supply curve rightwards

Question.11 A consumer consumes only two goods and is in equilibrium. Show that price and . M demand for a good, are inversely related. Explain using utility analysis.
Answer.

Question.12 The quantity demanded of a good is 150O units at the price of Rs 10 per unit. Its price elasticity of demand is (-)1.5. Calculate its quantity demanded, when its price falls to Rs 8 per unit.
Answer.

Or
Explain the geometric method of calculating price elasticity ofdemand.
Answer. See Q. 7, 2009 (I Outside Delhi).

Question.13 State the main features of a perfectly competitive market.
Answer. Perfect competition refers to a market situation where there are very large number of buyers and sellers dealing in a homogeneous product at a price fixed by the industry. The various features of Perfect Contention are:

1.  Very large number of buyers and sellers. This implies that the share of each seller. and each buyer in the total supply and demand respectively is so insignificant that
   they cannot influence the market price.
2. Homogeneous product. This mean’s that all the firms in the market produce the same products. This ensures uniform price in the market.
3.  Freedom of entry and exit. It ensures absence of abnormal Profit and losses in the long run. When there will be abnormal profits, new firms will enter and abnormal profits will vanish and vice-versa
4.  Perfect knowledge about market and technology. This implies that no consumer is prepared to pay a higher price and that each producer incurs the same per unit cost for the product.

Question.14 Explain consumer’s equilibrium with the help of indifference curve analysis.
Answer. Consumer’s equilibrium refers to a situation in which a costumer defines the maximum satisfaction. The equilibrium will be at a point where consumer’s (satisfaction is maximum subject to-limited money bundle of goods from those available in the budget set.
He would be in equilibrium only at such point which is common between the budget line and the highest attainable indifference curve.
equilibrium Conditions are:


Or
A consumer consumes only two goods. Explain consumer’s equilibrium with the help of utility analysis.
Answer. A consumer in consumption of two commodities will be in equilibrium when he spends his limited income in such a way that the ratios of marginal utilities of the two commodities and their respective prices are equal arid MU falls as consumption increases.. Therefore, the two necessary conditions to attain consumer’s equilibrium in case of two commodities are:

Question.15 Explain the conditions of producer’s equilibrium with the help of a numerical example. Use marginal cost and marginal revenue approach.
Answer. Producer’s equilibrium means that Combination of price and output which yields the producer maximum profit, and the profit declines as more is produced.
According to MR-MC approach, Producer’s equilibrium refers to the stage of that output level at which:
MC = MR
Every producer aims to maximize the total profits. For this, a firm compares its MR with its MC. Profits will increase as long as MR exceeds MC and profits will fall if MR is less than MC. So, equilibrium is not achieved when MC < MR as it is possible to add to profits by producing more. The producer is also not in equilibrium when MC>MR because benefit is less than the cost. It means, the firm will be at equilibrium only when MC = MR. Output beyond this level will reduce profits.

In the above table, the producer will be in equilibrium when he produces 5 units of output as at this level his profits are maximum and both the conditions of equilibrium are satisfied.

Question.16 Explain the meaning of excess supply of a commodity and its chain of effects on price, demand and supply of the commodity, (use diagram)
Answer.

Note: Explain the meaning of ‘excess supply of a commodity and its chain of effects on price, demand and supply of the commodity, (use a schedule)
Answer.Please read the answer above and add:

In the above table, equilibrium price is Rs 3 per unit and equilibrium quantity is 30 units. But suppose the market price is Rs 4 at which market supply is greater than the market demand. Competition among the sellers will lead to a decline in the price which will increase the demand and decrease supply to 30 units which is the equilibrium quantity.

SECTION B
Question.17 Define national income.
Answer. It refers to net money value of all the final goods and services produced by the normal residents of a country during a period of one year.

Question.18 Give the meaning of capital goods.
Answer. Capital goods are those final goods which help in production of other goods and services, for example, plant and machinery, equipments etc.

Question.19 What are time deposits.
Answer. Time deposits are fixed deposits and refer to those non-withdrawable (by cheques) deposits, in which an amount is deposited with the bank for a fixed period of time at a fixed^tSrebf Interest

Question.20 Give two examples of non-tax revenue receipts.
Answer. Interest and Profits are two examples of non-tax revenue receipts

Question.21 What is a government budget?
Answer. A government budget is an annual statement, showing itemwise estimates of receipts and expenditures during a iiscal year.

Question.22 Explain the circular flow of income.
Answer. The flow of production, income generation and Expenditure involving different sectors of the economy is known as circular flow of income. Circular flow of income refers to continuous circular movement of aggregate value of goods and services between households and firms, either as factor payments, or as expenditure on goods and services. In an economy, money keeps on flowing in the form of income and expenditure among the different sectors of the economy. The movement of factor payments from production dnits to households and that of payment for goods and services from households to firms is called money flow as shown by the outer loop in the given diagram.

The flow of factor services from households to firms and flow of goods and services from _ firms to households is called real flow.

Question. 23 Explain the ‘store of value’ function of money.
Answer. See Q. 23,2012 (I Deffii).
Or
Explain the role of central bank as a “Banker to1 the government.”
Answer. See Q 23 2010(II Delhi).

Question.24 Give the* meaning of average propensity to save. What is its relation with average propensity to consume?
Answer. Average propensity to save refers to the ratio of Savings to the corresponding level of Income.

Question.25 Explain the meaning of investment multiplier. What can be its minimum and maximum value?
Answer.

Question.26 Distinguish between current account and capital account of the balance of payments account on the basis of its components.
Answer.

Question. 27 How do commercial banks create credit? Explain with the help of an example.
Answer. Commercial banks accept deposits from the general public known as primary deposits and keeping a percentage of these deposits in reserve (known as Legal Reserve Ratio), advance the balance of the deposits of other customers. While advancing them loans, banks deposit the amount in their accounts and again keeping a percentage of the deposits (Legal Reserve Ratio), further advance the balance amount to others. This process continues and is known as credit creation by banks. In this way banks create credit many times more than the primary deposits. The phenomenon of credit creation can be explained by taking a hypothetical example, where primary deposit is Rs 1,000 and legal reserve ratio (LRR) is 20%. Say, Mr. A deposits?1,000. Keeping Rs 200 (20%) in reserve, the balance of T640 is advanced as loan to C. This process continues and finally total deposits created are Rs 5,000, i.e., 5 times more. So money multiplier is 5. This process becomes clear, looking at the schedule given below:

Or
Explain the meaning of open market operations. How is it used by the central bank to control money supply?
Answer. Open market operations refers to buying and selling of government securities by the central bank from/to the public and the commercial banks.

•  Sale of securities by the central bank reduces the reserves of the commercial banks. It adversely affects the commercial banks’ ability to create credit and therefore decreases the money supply in the economy.
•  Purchase of securities by the central bank increases the reserves and raises the commercial banks’ ability to give credit. This increases the money supply in the economy.

Question.28 Calculate “Net value added at factor cost” from the following data:

Solution.

Question. 29 The central bank takes steps to control rise in the price of foreign exchange. Explain the economic values it involves as far as the common man is concerned.
Answer. In a managed floating system the foreign exchange rate is determined by the market forces. However, the central bank needs to intervene in this system in order to restrict the fluctuations in the exchange rate within certain limits. A rise in the exchange rate adversely affects imports and the developmental process of the country. Inability to import might lead to inflation in the economy which would adversely affect the common man eroding his purchasing power.

Question.30 Calculate “Personal Disposable Income”:

Answer.

Answer.

Question.31 (a) Distinguish between autonomous investment and induced investment. (b) On the basis of the following information about an economy, calculate its equilibrium level of income:
(i) Autonomous consumption                                                                                                                          100
(ii)Marginal propensity to consume                                                                                                             0.75
(iii) Investment                                                                                                                                                    5000
Answer.

Question.32 Distinguish between the following.. Also give an example of each.
(a) Direct tax and Indirect tax
(b) Revenue expenditure and Capital expenditure
Answer.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set I.
SECTION A
Question.2 Define marginal utility.
Answer. It is the additional utility derived from the consumption of one more unit of the given commodity.

Question.3 Give two examples of fixed costs.
Answer. Examples of fixed cost: (i) Salary of Permanent Staff and (ii) Insurance Premium.

Question.4 Give one reason for “decrease” in supply of a good.
Answer. One reason for decrease in supply of a good—Increase in the price of inputs.

Question.8 Calculate average variable cost at each level of output:

Answer.

Question.9 10 per cent increase in the price of a good raises its supply from 150 units to 180 units.
Calculate its price elasticity of supply.
Answer.

Question.15 At what level of output will the producer be in equilibrium? Give reasons for your’ answer. (Use marginal cost and marginal revenue approach)

Answer.

The producer is in equilibrium at the 4th unit of output because at this level of output both the equilibrium conditions are being satisfied, i.e.,
(i) MC = MR
(ii)MC > MR after MC = MR output level.

SECTION B
Question.17 Define national product.
Answer. National product refers to the net money value of all the final goods and services produced by the normal residents of a country during a period of one year.

Question.18 Define consumption goods.
Answer. Consumption goods refer to those goods which satisfy the wants of the consumers directly.

Question.20 Give two examples of indirect taxes.
Answer. Examples of indirect taxes: (i) Sales tax and (ii) Excise duty.

Question.31 (a) Distinguish between autonomous consumption and induced consumption. 6 (b) From the following data about an economy, calculate its equilibrium level of income:

1.  Marginal propensity to consume 0.5
2.  Autonomous consumption 300
3.  Investment 6000

Answer. (a) Autonomous Consumption. Even when income (Y) is zero, there is some minimum . consumption, known as autonomous consumption which is always positive. It is denoted as C.
Induced consumption. When income increases consumption also increases. But, the rate of increase in consumption is less than the rate of increase in income (Keynesian Psychological Law of Consumption). This portion of increased consumption is termed as induced consumption.
Consumption function is represented as:

Question.32 Distinguish between the following:
(a) Revenue receipts and Capital receipts
(b) Revenue deficit and Fiscal deficit
Answer.
(a) Revenue receipts and Capital receipts. See Q. 23, 2013 (I Outside Delhi).
(b) Revenue deficit and Fiscal deficit. See Q. 23(Or), 2013 (I Delhi).

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set I and Set II.
SECTION A
Question.2 Define demand for a good.
Answer. Demand is the quantity of a commodity that a consumer is willing and able to buy at each possible price of that commodity during a given period of time.

Question.3 Give two examples of variable costs.
Answer. Examples of variable costs;

1.  Wages of casual labour and
2.  Payment for raw material.

Question.4 When is supply of a good said to be perfectly elastic?
Answer. When there is an infinite supply at a particular price and the supply becomes zero with a slight fall in price, then the supply of such a commodity is said to be perfectly elastic.

Question.8 Calculate marginal cost at each level of output:

Answer.

Question.9 Supply of a good rises from 200 units to 240 units as a result of 20 percent rise in its price. Calculate its price elasticity of supply.
Solution.

Question.15 Giving reasons find out the level of output at which producer will be in equilibrium. Use marginal cost and marginal revenue approach)

Answer.

SECTION B
Question.17 Give two examples of intermediate goods.
Answer. Examples of intermediate goods:

1.  Milk used in a dairy shop for resale and
2.  Coal used in a factory for further production.

Question.18 Define investment.
Answer. Investment or Capital formation refers to addition to the capital stock of anjconomy.

Question.20. What is a direct tax? 
Answer. Taxes that are imposed on property and income of individuals and companies which are paid directly by them to the government are called direct taxes.

Question.31
(a) Distinguish between Aggregate Demand and Aggregate Supply.
(b) From the following data about an economy, calculate its equilibrium level of income:
(i) Marginal propensity to consume 0.8
(ii)Investment 5000
(iii) Autonomous Consumption 500
Answer.
(a) Aggregate Demand (AD) refers to the total value of final goods and services which” all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year.
Even though AD has four components, we assume that AD is a function of only consumption expenditure and investment expenditure i.e., AD = C + I
AD curve has a positive slope indicating that as the income increases, aggregate expenditure also increases.
Aggregate Supply (AS) refers to money value of goods and services that all the producers are willing to supply in an economy in the given period.
Since aggregate supply is equal to national income and income is either consumed or ‘ ‘ saved, therefore,
AS = C + S
Aggregate supply curve is a 45° line drawn from the origin indicating that every point on this line is equidistant from X and Y axis.

Question.32 Explain the objectives of resource allocation and income distribution in a government budget.
Answer. Objective of resource allocation. Through the budgetary policy, government aims to reallocate resources in accordance with the economic (profit maximisation) and social (public welfare) priorities of the country. The government can influence the allocation of resources by encouraging the private sector through tax concessions, subsidies etc. to undertake certain production in public interest. If private sector does not take interest, government can directly undertake production. Objective of income distribution. Economic inequality is an inherent part of every economic system. The Government aims to reduce such inequalities through its budgetary policy by imposing taxes on the rich and spending more on the welfare/of the poor. Increased taxes will reduce the income of the rich and government spending will raise the standard of living of the poor thus reducing inequalities in the distribution of income.

The post CBSE Sample Papers for Class 12 Economics Compartment Delhi -2014 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics  Outside Delhi -2013

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1. Define marginal revenue.
Answer. Marginal revenue may be defined as the change in total revenue which takes place by selling an additional unit.

Question.2. What does a rightward shift of demand curve indicate?
Answer. A rightward shift of demand curve indicates increase in demand.

Question.3. Under which market form is a firm a price taker?
Answer. A firm is a price taker under perfect competition.

Question.4. When is the demand for a good said to be perfectly inelastic?
Answer. The demand of a good is said to be perfectly inelastic when quantity demanded does not change with the change in price, in other words, when demand remains constant at all prices.

Question.5. Give one reason for an “increase” in supply of a commodity.
Answer. Increase in supply of a commodity will take place as a result of decline in the prices of inputs.

Question.6. How is the demand for a good affected by a rise in the prices of other goods? Explain.
Answer. Price of other (related) goods. Prices of other goods may also affect the demand for a commodity. The other goods may be substitute goods or complimentary goods. Also See Q.16 (Or)(i), 2013 (I Delhi).

Question.7. A firm supplies 10 units of a good at a price of 75 per unit. Price elasticity of supply is 1.25. What quantity will the firm supply at a price of 77 per unit?
Answer.

Question.8. Explain the meaning of diminishing marginal rate of substitution with the help of a numerical example.
Answer. The rate at which the consumer can substitute good x for good y is called marginal rate of substitution. In other words, marginal rate of substitution measures consumer’s willingness to substitute one good for the other good. Marginal rate of substitution is always declining. The fact that MRS is declining becomes evident from the schedule given below:

Question.9. From the following table, find out the level of output at which the producer will be in equilibrium. Give reasons for your answer.

Answer.

The producer will be at equilibrium at the level of output of 4 units, where marginal revenue and marginal cost are equal and the difference between the total revenue and the total cost, i.e., profits are maximum; or the losses are minimum.
At output of 4 units, MR = MC and TR – TC = -1 (=> loss)
At output of 2 units, MR = MC but TR – TC = -2 (=> loss is more)

Question.10. Why can a firm not earn abnormal profits under perfect competition in the long run? Explain.
Answer. Under perfect competition in the long run a firm does not earn abnormal profits, it earns only normal profits. This means price AR is equal to AC and AR is not greater than AC. This is so because if a firm is earning abnormal profits then AR will be greater than AC. But in that case new firms will enter the competition and AR will fall down to the level of AC. This means under perfect competition in the long run AR is equal to AC and not greater than AC. Therefore, a firm earns only normal profits and not abnormal profits.
Or
Why is the demand curve of a firm under monopolistic competition more elastic than under monopoly? Explain.
Answer. A monopoly firm can sell more only by lowering the price of its product. In other, words, the demand for the monopoly product is less elastic. As such the demand curve (AR curve) will have a negative slope. Under monopolistic competition the demand curve will also have a negative slope curve like that of a monopoly firm. However, it (Demand curve) will be less steeper in comparison to that of a monopoly firm. This is due to the fact that there are close substitutes available in case of monopolistic competition, while in monopoly there is no close substitute available for the product.

Question.11. Equilibrium price of an essential medicine is too high. Explain what possible steps can . be taken to bring down the equilibrium price but only through the market forces. Also explain the series of changes that will occur in the market.
Answer. Essential medicine is a must for the people. If its price is very high, necessary steps should be taken through market forces to bring down its price. The first step is to increase the supply of the medicine by giving licence to more firms for manufacturing this drug. This will lead to an increase in supply as a result of which equilibrium price of the medicine will be brought down. Since medicine is essential, its demand cannot be reduced. Only supply needs to be increased.

Question.12. Explain the meaning of opportunity cost with the help of production possibility schedule.
Answer. Opportunity cost is the value of an activity that we forgo in case we undertake another activity. This can be explained with the help of an illustration.
Say, on a given piece of land, Only one crop either rice or wheat pan be grown. If rice is grown, its yield will be 10 tonnes. On the other hand, if wheat is grown, its yield will be 8 tonnes. In the given example, opportunity cost of producing 10 tonnes of rice is 8 tonnes of wheat and opportunity cost of producing 8 tonnes of wheat is 10 tonnes of rice.
If we keep on producing one commodity, what we forgo for producing another commodity is its opportunity cost. The rate at which we forgo the other good for producing an additional unit of a commodity is the marginal opportunity cost of producing a commodity.
The idea of marginal opportunity cost becomes clear looking at the given schedule.

Or
With the help of suitable example explain the problem of ‘for whom to produce’
Answer. See Q.8, 2009 (Outside Delhi I).

Question.13. A 5 per cent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand.
Answer.

Question.14. Explain three properties of indifference curves.
Answer. See Q. 15, 2011 (I Delhi).
Or
Explain the conditions of consumer’s equilibrium under indifference curve approach.
Answer. See Q. 14,2010 (I Delhi).

Question.15. If equilibrium price of a good is greater than its market price, explain all the changes that will take place in the market. Use diagram.
Answer. The equilibrium price of a product is determined at a point where its supply and demand are equal. If the equilibrium price is higher than market price, supply of the product will fall and it will result into increase in its demand. With the result there will be excess demand and therefore, for bringing equality in demand and supply, supply needs to be increased and demand decreased. This is possible only when market price is brought to the level of equilibrium price.
The entire process can be explained with the help of a diagram. In the diagram, equilibrium price is OP. If the price decreases to OP1. (lower than the equilibrium price), supply will fall to OQ1 and demand will increase to OQ2.
Therefore, there will be excess of demand = Q1Q2. This position can be rectified by coming to equilibrium price, i.e., OP.

Note: The following question is for the Blind Candidates only, in lieu of Q. No. 15.
If equilibrium price of a good is greater than its market price, explain all the changes that will take place in the market. Use a schedule.
Answer. The equilibrium price of a product is determined at a point where supply and demand of the product are equal. If equilibrium price is higher than the market price, demand will increase and supply will decrease, with the result that there will be excess demand and therefore, for bringing equality in demand and supply, supply needs to be increased and demand decreased. This is possible only when market price is brought to the level of equilibrium price.
The entire process can be explained with the help of a schedule given below:

According to the schedule, equilibrium price is Rs 8, because at this price demand and supply are equal. However, when the market price is Rs 7, lower than the equilibrium price, demand will be more than supply. In such a case market price needs to be increased so that demand and supply become equal.

Question.16. Giving reasons, state whether the following statements are true or false:
(i) Average product will increase only when marginal product increases.
(ii) With increase in level of output, average fixed cost goes on falling till it reaches zero.
(iii) Under diminishing returns to a factor, total. product continues to increase till marginal product reaches zero.
Answer. (i) The statement is false. Near the point where MP and AP are equal (where MP cuts AP), MP decreases and AP increases. This is so because AP takes into view MP of earlier units where it is increasing. This is shown in the diagram.

(ii) The statement is false because with the increase in the level of output AFC falls but it never becomes zero. This is shown in the diagram.

(iii)The statement is true. Total product continues to rise till marginal product reaches zero. Beyond that point when marginal product becomes negative, Total Product starts declining. This is shown in the diagram.

SECTION B
Question.17. Give two examples of intermediate goods.
Answer. Raw materials and fuel.

Question.18. State the components of supply of money.
Answer. The components of money supply are currency with the public and demand deposits of banks at a given point of time.

Question.19. What one step can be taken through market to reduce the consumption of a product harmful for health?
Answer. The consumption of a product, which is harmful for health should be reduced by imposition of a high tax on the product by the government.

Question.20. How can Reserve Bank of India help in bringing down the foreign exchange rate which is very high?
Answer. Reserve Bank of India should devalue Indian rupee for bringing down the high rate of exchange. RBI can increase the supply of foreign exchange by selling foreign exchange from its reserves to bring down its value.

Question.21. What is revenue deficit?
Answer. Revenue deficit is equal to the excess of total revenue expenditure over the total revenue receipts.

Question.22. Explain the ‘medium of exchange’ function of money.
Answer. Medium of exchange. Right from the beginning, money has beenperformingthe important function of medium of exchange in the society. Money facilitates transactions of goods and services as a medium of exchange. Producers sell their goods to the wholesalers in exchange of money. Wholesalers sell the same goods to the retailers and the retailers sell these goods to the consumers in exchange for money. In the same way, all sections of society sell their services in exchange for money and with that money buy goods and services which they need. Money, .working as a medium of exchange, has eliminated inconvenience which was faced in barter transactions.
Or
Explain the ‘lender of last resort’ function of central bank.
Answer. Lender of the last resort. Central bank works as lender of the last resort for commercial banks because in the times of need it provides them financial assistance and accommodation. Whenever a commercial bank faces financial crisis, central bank as lender of toe last resort comes to its rescue by advancing loans and the bank is saved from being failed. Central bank helps commercial banks by discounting their bills and securities also.

Question.23.Distinguish between revenue receipts and capital receipts. Give an example of each.
Answer. Revenue receipts are those receipts which do hot create any liability or which do not reduce assets , such as tax revenue.capital receipts are those receipts which are created either by incurring a liability or by disposing off assets such as public debt, disinvestment, etc.

Question.24. How can budgetary policy be used to reduce inequalities of income?
Answer. Government can use budgetary policy for reducing inequalities of income. For achieving this government should suitably formulate its fiscal policy. The fiscal policy should aim at taxing the rich and spending for the schemes which benefit the poor, the most. Government should levy more direct taxes because they are paid by rich people only. On the other hand, schemes like providing for health and education to the poor should be encouraged.

Question.25. Explain the effect of depreciation of domestic currency on exports.
Answer. When the value of domestic currency depreciates, it results in increased exports and decreased imports. This is so because in such a case, with given amount of foreign’ currency, more goods can be bought in the domestic market.
Fer example, one American dollar will now get more goods in toe domestic market. Thus it is clear that when depreciation of domestic currency of a country takes place its exports increase.

Question.26. How is exchange rate determined in toe foreign exchange market? Explain.
Answer. The foreign exchange rate is determined with toe help of forces of demand for and supply of toe foreign exchange in toe market. In other words, demand supply theory ‘ applies with regard to the determination of exchange rate. There is mi inverse relationship between foreign . currency nrte and demand for foreign exchange. On the other hand, the relation between rate of currency and supply of foreign currency is direct. As such toe demand curve for foreign currency will have a negative slope and toe supply curve for foreign currency will have a positive slope. The foreign exchange rate will be determined at a point where demand and supply curves intersect each other. This is shown in the diagram.

Question.27.Calculate ‘Sales’ from the following data:

Answer.

= 2,000 + 700 + 3,000 – (600 – 100) – 200 = Rs 5,000 Lakhs

Question.28. Distinguish between “real” gross domestic product and “nominal” gross domestic product Which of these is a better index of welfare of the people and why?
Answer. Real gross domestic product (real gross domestic income) is measured at constant prices or at some given price for all the years. On the other hand, nominal gross domestic product (nominal gross domestic income) is measured at current prices.
Therefore, real gross domestic income is a better index at welfare of the people. This is so because nominal domestic income may increase because of increase in prices whereas real domestic income will increase only due to increase in the volume of goods mid services and not in the prices. Therefore, real gross domestic product is a better index of the welfare of the people.
Or
Distinguish between stocks and flows. Give two examples of each.
Answer. Difference between Stocks and Flows:

Question.29. Explain the credit creation role of commercial banks with the help of a numerical example.
Answer. An important function of commercial banks is credit creation. Banks are not like a cloakroom at the railway station where one deposits one’s luggage and gets the same back after paying some charges. What banks do is that they keep a part of deposits to meet the demand of the depositors and the rest is advanced as loans to others. Again banks keep advancing loans keeping a part of the depots of those to whom loans have been advanced. In this way credit is created many times mote than the primary deposits.
For example, If primary deposits are Rs 1,000, Cash Reserve Ratio (the percentage of the deposits which is kept in cash for meeting the demand of depositors) being 10%, the total deposits or credit created will be Rs 10,000. The reciprocal of Cash Reserve ratio is called the Credit Multiplier. This Credit Multiplier = 1/0.10=10
The total amount of Credit Creation = Credit Multiplier times Primal Deposits
=10 x Rs 1,000 =Rs 10,000
In this way, banks play an important role by meeting the demand for credit in an economy. We all know that credit, as a component of money supply, plays an important role in every economy.

Question.30. From the data given below about an economy, calculate (a) investment expenditure and (b) consumption expenditure.
(i) Equilibrium level of income 5,000
(ii) Autonomous consumption 500
(iii) Marginal propensity to consume – 0.4
Answer.

(b) Investment expenditure, I = 5,000 – 2,500 = 2,500

Question.31. Explain the meaning of under-employment equilibrium. Explain two measures by which ‘ full-employment equilibrium can be reached.
Answer. Under-employment equilibrium is a situation where the equilibrium level of income is established before the full-employment level. As such in this case demand is not adequate to ensure the level of output at the full-employment level. In other words, at the level of equilibrium, aggregate demand is less than aggregate supply. Therefore, for obtaining the situation of fuff-employment level, the level of aggregate demand should be increased.
There are a number of measures which can be used for increasing the level of aggregate demand. These are:
(i) Bank rate is tire rate of interest which the central bank charges from commercial banks for giving them credit. However, the relationship between rate of interest and demand for credit is inverse. Thus, in case of deficient demand, bank rate should be lowered. This will lead to a fall in the rate of interest, leading to an increase in the demand for credit. This will raise aggregate demand.
(ii) Open market operations refer to the sale and purchase of securities by the central bank. In a situation of.deficient demand, central bank buys securities in the open market and the people can borrow more. This will raise aggregate demand.

Question.32. Calculate “Gross National Product at Market Price” from the following data:

Answer.

Or
Calculate “Gross National Disposable Income” from the following data:

Answer.

SET II

Note: Except for the following questions, all the remaining questions have been asked in Set I.
SECTION A
Question.5. Give one reason for “decrease” in supply of a commodity.
Answer. Increase in the prices of input.

Question.7. The price elasticity of supply of a commodity is 2.0. A firm supplies 200 units of it at a price of Rs 8 per unit. At what price will it supply 250 units?
Answer.

Question.8. What is budget line? Why is it downward sloping?
Answer. See Q. 10, 2011 (Comptt. I Delhi).

Question.13. When the price of a commodity falls by 20 per cent, its demand rises from 400 units to 500 units. Calculate its price elasticity of demand.
Answer.

SECTION B
Question.23. Distinguish between revenue expenditure and capital expenditure in government budget Give an example of each.
Answer. See Q. 26, 2008 (I Outside Delhi).

Question.29. How does central bank control credit creation by commercial banks through open market operations? Explain.
Answer. “Open market operations mean the sale and purchase of all kinds of bills and securities by the central bank in the open market.” In narrow terms, this method signifies sale and purchase of government securities by the central bank in the open market. In short, according to this method, central bank controls the volume of credit by increasing or decreasing the quantity of money in the economy through sale and purchase of securities in the money market. The functioning of this method is like this: When central bank of the country wants to increase the volume of credit, it starts purchasing securities from the market. These securities are generally bought at a higher price than the market price. As such, banks start selling them, as a result of which their cash reserves increase, i.e., their liquid assets increase. This means that banks now can create more credit. On the contrary, when central bank wants to control the volume of credit, it starts selling securities in the market which are bought by the commercial banks. With the result, their cash reserves are reduced and this adversely affects their power of creating credit. In short, “for expanding the volume of credit central bank purchases securities and for reducing the volume of credit, it sells securities in the open market. In this way, according to this method, the volume of credit is controlled and regulated by controlling and regulating the cash reserves and credit creating power of commercial banks.”

Question.31. Distinguish between inflationary gap and deflationary gap. these can be corrected.
Answer.

• Inflationary gap relates to a situation when equilibrium level takes place after the stage of full employment level. The gap between aggregate demand and aggregate supply at the full employment level is inflationary gap. In this case output cannot be increased and hence price increases. In diagram

1. RN is inflationary gap.

• Deflationary gap is a situation that relates to the
  equilibrium which takes place before the stage of full employment. In this case aggregate demand falls short of aggregate supply at the full employment ‘ level. The deficiency in aggregate demand in comparison to aggregate supply at full employment level is deflationary gap. In diagram (ii) RF is deflation are gap.
• For correcting the situations of deflationary and inflationary gaps, volume of credit should be regulated and controlled. For doing this the following
  two methods can be adopted for controlling the volume of credit.

1. Bank rate. For controlling deflationary gap, bank rate should be reduced . This will lead to a decline in the rate of interest and finally volume of credit will increase. In the case of inflationary gap bank rate should be increased so that rate of interest goes up and the demand for credit declines. This will adversely affect aggregate demand.
2. Open market operations. Central bank of the country should buy securities in the open market from commercial banks. This will increase credit paying capacity of these banks and the aggregate demand will increase. On the other hand, for controlling the situation of deflationary gap, central bank of the country should sell securities in the open market which will be bought by the commercial bards. This will reduce their credit paying capacity and hence reduce the level of aggregate demand.

Question.32. lit an economy C = 200 + 0.75Y is the consumption function where G is consumption expenditure and Y is national income. Investment expenditure is 4,000. Calculate equilibrium level of income and consumption expenditure.
Answer.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set I and Set II.
SECTION A
Question.5. Give the meaning of market supply.
Answer. Market supply means the total quantity of a commodity supplied by all the firms at a time at a price.

Question.7. A 15 per cent rise in the price of a commodity raises its supply from 300 units to 345 units. Calculate its price elasticity of supply.
Answer.

Question.8. Explain the conditions of consumer’s equilibrium under utility analysis.
Answer. Conditions for consumer’s equilibrium are:

Question.13. Price elasticity of demand of a good is – 0.75. Calculate the percentage fall in its price that will result in 15 per cent rise in its demand.
Answer.

SECTION B
Question.23. State three sources each of revenue receipts and capital receipts in government budget.
Answer. Sources of revenue receipts. (i) Direct tax, (ii) Indirect tax and (iii) Commercial revenue.
Sources of capital receipts, (i) Recovery of loan, (ii) Borrowings and (iii) Funds raised through-disinvestment.

Question.29. Explain any two methods of credit control used by central hank.
Answer. The two methods which central bank can use for controlling the volume of credit are: (i) Bank rate and (ii) Open market operations.
Bank rate is the rate of interest which central bank charges from commercial banks for giving them loans. Thus, when volume of credit is to be reduced in the economy, bank rate is increased. On the other hand, when volume of credit is to be increased, bank rate is reduced. Open market operations refer to the purchase and sale of government securities in the open market (i.e., to the banks and public) by the central bank.
When the central bank of the country wants to increase the volume of credit, it starts purchasing securities from the market. These securities are generally bought at a higher price than the market price. As such, banks start selling them, as a result of which their cash reserves increase, i.e., their liquid assets increase. As a result of this, banks now can create more credit. On the contrary, when central bank wants to control the volume of credit, it starts selling securities in the market which are bought by the commercial banks. With the result, their cash reserves are reduced and this adversely affects their power of creating credit.

Question.30. From the following data about an economy, calculate (a) equilibrium level of national income and (b) total consumption expenditure at equilibrium level of national income. (i) C = 200 + 0.5 Y is the consumption function where C is consumption expenditure and Y is national income.
(ii) Investment expenditure is 1,500.
Answer.

Question.32. Explain all the changes that will take place in an economy when aggregate demand is not equal to aggregate supply.
Answer. It is not necessary that equilibrium level in an economy always takes place at the full employment level. It may take place before the stage of full employment and also it may take place after the stage of full employment.
If equilibrium level takes place before the full employment level, it is a case of deficient demand. This signifies that deficiency of aggregate demand « does not lead to the full use of given resources at the full employment level. In this case involuntary unemployment exists. Therefore, for reaching the stage of full employment where all the given resources are fully utilized, efforts should be made to increase the level of aggregate demand. In Diagram (i) OZ is full employment level and OY is the actual of output level, where AD equals AS.

If equilibrium takes place after the stage of full employment, it is a case of excess demand. In this case the level of aggregate demand at the level of equilibrium is higher and hence cannot be met by full use of given resources. Therefore, in this case output does not increase and only price increases. Therefore/for achieving the stage of full employment necessary methods should be used for reducing the level of aggregate demand. In this case OZ is the full employment level and OY is the actual level of employment at equilibrium, where AD equals AS.

The post CBSE Sample Papers for Class 12 Economics Outside Delhi -2013 appeared first on Learn CBSE.

Important Questions for CBSE Class 9 Social Science Chapter 4 Food Security In India

IMPORTANT QUESTIONS

Very Short Answer Type Questions (I Mark each)

Question.1. What is food security ?
Answer. Food security means availability, accessibility and affordability of food to all people at all times.

Question.2. Name any two factors on which the food security depends upon.
Answer. (i) Buffer stock.
(ii) Public Distribution System (PDS).
(iii) Vigilancy of the government at the time of natural calamity.
(iv) Food production.

Question.3. Name the two dimensions of hunger.
Answer. Chronic : It is a consequence of diets persistently inadequate in terms of quantity and/or quality.
Seasonal: It is related to the cycles of food growing and harvesting.

Question.4. Mention any two factors responsible for seasonal hunger.
Answer. (i) Seasonal hunger is related to the cycle of food growing and harvesting. This is prevalent in rural areas because of the seasonal nature of agricultural activities.
(ii) Seasonal hunger is prevalent in urban areas due to lack of job opportunities.

Question.5. What is chronic hunger ? Name any one factor responsible for chronic hunger.
Answer. It is a consequence of diets persistently inadequate in terms of quantity and/or quality. Very low income is one of the basic cause of chronic hunger.

Question.6.Define Green Revolution.[CBSE 2015]
Answer.The Green Revolution implies large increase in agricultural production due to use of high yielding varieties of seeds and other inputs such as manure, fertilizers, etc.

Question.7. What is buffer stock ?
Answer. Buffer stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI).

Question.8. What is minimum support price ?[CBSE 2015]
Answer. The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price. The MSP is before the sowing season to provide incentives to the farmers for raising the production of these crops declared by the government every year.

Question.9. What is issue price ? [CBSE 2015]
Answer. It is a price at which foodgrains are distributed in the deficit areas and among the poorer strata of society at a price lower than the market price.

Question.10. What are the functions of the FCI ? Mention any two.
Answer. (i) The Food Cooperation of India or FCI purchases wheat and rice from the farmers in the states, where there is surplus production.
(ii) It also builds the buffer stock.

Question.11. What is Public Distribution System (PDS) ?
Answer. Under public distribution system or the PDS, the Government has opened more than 4.6 lakh ration shops all over the country to distribute foodgrains and other essential goods to the poor people at reasonable rates.

Question.12. What is the Targeted Public Distribution System ?
Answer. In order to ensure availability of minimum quantity of food grains to the families living below the poverty line, the Government launched the TPDS or the Targeted Public Distribution System in June 1997. It was intended to benefit about six crore poor families in the country for whom a quantum of 72 lakh tonnes of foodgrains was earmar- ked annually at the rate of 10kg per family per month.
It was introduced to adopt the principle of targeting the ‘poor in all areas’.

Question.13. Name any two Yojanas introduced with one objective of each for food security.
Answer. (i) National Food for Work Programme : Under this, foodgrains are provided to the states free of cost.
(ii) Antyodaya Anna Yojana: Under this 25 kg of food- grains were made available to each eligible family at a subsidised price.

Question.14. Mention any two limitations of the Public Distribution System (PDS).
Answer. (i) Resorting of PDS dealers to malpractices.
(ii) Irregular opening of shops.

Question.15. What are cooperative societies?
Answer. The cooperative societies are the societies which are run by the local people, who are democratically elected by the people. These cooperative societies provide people the basic necessities of life like foodgrains, milk, vegetables, etc. at reasonable rates.

Question.16. Mention the names of any four cooperative societies working in different states of India.
Answer. (i) Mother Dairy- Delhi
(ii) Amul-Gujarat
(iii) Verka-Punjab
(iv) Academy of Development Science- Maharashtra

Question.17. What is a subsidy ?
Answer. A subsidy is a payment that a government makes to a producer to supplement the market price of a commodity. Subsidies can keep consumer prices low while maintaining a higher income for domestic producers.

Short Answer Type Questions (3 Marks)

Question. 1. Explain the major dimensions of food security.
Answer. Food security has the following dimensions:

1. Availability of food: It means food production within the country, food imports and the previous years stock stored in government granaries.
2. Accessibility : It means food is within reach of every person.
3. Affordability : It implies that an individual has enough money to buy sufficient, safe and nutritious food to meet one’s dietary needs.

Question. 2. Mention the major features of Public Distribution system of India.
Answer.

1. The PDS has proved to be the most effective instrument of government policy over the years in stabilising prices and making food available to consumers at affordable prices.
2. It has been instrumental in averting widespread hunger and famine by supplying food from surplus regions of the country to the deficit ones.
3.  The system, including the minimum support price and procurement has contributed to an increase in foodgrain production and provided income security to farmers in certain regions.
4.  It has minimized hoarding and black marketing.

Question. 3. What are the limitations of the public distribution system ?[CBSE 2015]
Answer.

1. Failed to remove hunger : The PDS has been working for many years but still hunger is prevailing in the Indian society.
2.  Overflowing godowns : The FCI godowns are overflowing with foodgrains. In 2012 the stock of wheat and rice was 82.3 million tonnes which was much more than the minimum stock. There is a general consensus that high level of buffer stock of foodgrains is very undesirable and can be wasteful.
3.  Poor foodgrain quality: As most of godowns have more stock than their capacity, this leads to deterioration in grain quality.
4.  Adverse impact on the environment: Due to incentive by the government most of the states are producing only rice and wheat. The intensive utilization of water in the cultivation of rice has led to environmental degradation and fall in the water level, threatening the sustain- ability of the agricultural development in many states.

Question. 4. How is food security ensured in India ?
Answer. Food security in India has two components:
(a) Buffer stock
(b) Public distribution system.
(a) Buffer Stock: Buffer Stock is the stock of foodgrains, namely wheat and rice procured by the government through Food Corporation of India (FCI). The FCI purchases wheat and rice from the farmers in states where there is surplus production.
The purchased foodgrains are stored in granaries. This is done to distribute foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price, also known as Issue Price. This helps in resolving the problem of shortage of food.
(b) Public distribution system : The stored food is distributed to the poor people through ration shops. The items are sold to the poor people at a price lower than the market price.
Other schemes : Over the years, several new programmes have been launched like mid-day meal, Antyodaya Ana Yojana, etc. for food security.

Question. 5. Why is buffer stock created by the Government ?
Answer.

1. Food security: The main objective of the buffer stock is to distribute the foodgrains in the deficit areas and among the poorer strata of society at a price lower than the market price.
2. Disaster or Calamity : The second objective of the buffer stock is to resolve the problem of shortage of food during adverse weather conditions or during the period of calamity.
3. To save the farmers from the ups and downs of the market: The third important objective of the buffer stock is to save the farmers from ups and downs of the market. Under this farmers are paid a preannounced price for their crops. This price is declared by the government before the sowing season to provide incentives to the farmers.
4.  Uninterrupted supply of foodgrains: Buffer stocks are also created by the government to maintain uninterrupted supply of foodgrains throughout India and throughout the year.

Question. 6. Write a note on the role of cooperatives in providing food and related items.
Answer.

1. The cooperatives are also playing an important role in food security in India especially in the southern and western parts of the country.
2.  The cooperative societies set up shops to sell low priced goods to poor people. For example, out of all fair price shops running in Tamil Nadu, around 94 per cent are being run by the cooperatives.
3.  Many milk purchasing cooperatives like Verka, Mother Dairy, Amul, etc. have brought about the White Revolution in the country.
4.  These are a few examples of many more cooperatives running in different parts of the country ensuring food security of different sections of society.

Long Answer Type Questions (5 Marks)

Question.1. Discuss the major reasons for poverty in India/CBSE March 2012]
Or
Explain any three causes for the widespread poverty in India.[CBSE March 2012,13,15]
Answer.

1.  British Rule : Britishers ruled
   India more than 100 years. Prior to the British rule, traditional industries, for instance, textiles, flourished in India. During the British rule, the government adopted policies to discourage such industries. This left millions of weavers poor. Even after fifty years of independent India, we can find a major section of the people engaged handicraft industries as downtrodden.
2. Lack of industrialisation : India is very backward from the industrial point of view. Hardly 3 per cent of the total working population is engaged in the large- scale industry.
3.  Over dependence on agriculture: Even after more than 60 years of independence more than 60 per cent of our total population still depends on agriculture for its livelihood. Due to shortage of inputs, our agriculture is backward.
4.  Inflationary pressure : Upward trend in prices adversely affects the poor sections of the society.
5.  Unemployment : Due to lack of job opportunities, more than 90 lakhs of our total working force is unemployed.

Question.2. Explain the major limitations of Public Distribution System.
Answer.

1. Stock higher than buffer norms : The actual stock has always remained higher than the buffer. There is a general consensus that high level of buffer stocks of food- grains is very undesirable and can be wasteful. The storage of massive food stocks has been responsible for high carrying costs, in addition to wastage and deterioration in grain quality.
2.  High burden on the economy :
   The Minimum Support Price for food grains has risen very sharply in the recent years leading to a very high burden on state exchequer.
3.  Threat to sustainability of agriculture : The intensive utilisation of water in the cultivation of rice has also led to environmental degrada-tion and fall in the water level, threatening the sustainability of the agricultural development in many states.
4. Marked ineffectiveness :
   Another major area of concern is the marked ineffectiveness of PDS, which is apparent from the fact that the average consumption of PDS grain at the all-India level is only 1 kg per person per month. The average consumption figure is as low as less than 300 gm per person per month in the states of Bihar, Orissa and Uttar Pradesh.
5.  Corrupt dealers: PDS dealers are sometimes found resorting to malpractices like diverting the grains to open market to get better margin, selling poor quality grains at ration shops, irregular opening of the shops, etc. It is common to find that ration shops regularly have unsold stocks of poor quality grains left.

Higher Prefer Thinking Skills (Hots) Questions/Application Based Questions

Question.1. Study the graph and answer the following questions:

(i) In which recent year foodgrain stock with the government was maximum ?
(ii) What was the minimum buffer stock norm in 2012 ?
(iii) Why were the FCI granaries overflowing with foodgrains ?
(iv) What is buffer stock ?
(v) Why is there general consensus that high level of buffer stock of foodgrains is very undesirable ?
Answer.

1. July, 2012.
2.  33 million tonnes.
3.  The PDS or the Public Distribution System has failed to distribute foodgrains through the fair price shops.
4.  A stock of foodgrains procured by the government to distribute in deficit areas and among the poor strata of society.
5.  The higher level of buffer stock can be wasteful. The storage of massive food stock has been responsible for high carrying costs in adition to wastage and deterioration in grain quality.

Question.2. Distinguish between chronic and seasonal hunger.
Answer.

Value Based Questions

Question.1. Which are the people who are prone
to food insecurity in India ?
Answer.

1. Food insecure in rural areas :
   Although a large section of people suffer from food and nutrition insecurity in India, the worst affected groups are landless people , with little or no land to depend upon, traditional artisans, providers of traditional services, petty self employed workers and destitutes including beggars.
2. Food insecure in urban areas :
   In the urban areas, the food insecure families are those whose working members are generally employed in ill-paid occupations and casual labour market. These workers are largely engaged in seasonal activities and are paid very low wages that just ensure bare survival.
3. Social composition and food insecurity: The social composition along with the inability to buy food also plays a role in food insecurity. The SCs, STs and some sections of the OBCs (lower castes among them) who have either poor land-base or very low land productivity are prone to food insecurity.
4. Migrants and people affected by natural disasters : The people affected by natural disasters, who have to migrate to other areas in search of work, are also among the most food insecure people.
5. Food insecurity within a family : A high incidence of malnutrition prevails among women. This is a matter of serious concern as it puts even the unborn baby at the risk of malnutrition. A large proportion Of pregnant and nursing mothers and children under the age of 5 years constitute an important segment of the food insecure population.

Question.2. Explain the role of Public Distribution System in food security.
Or
How does PDS ensures food security in India ? (CBSE 2014)
Or
Mention major features of Public Distribution System in India.[CBSE 2012,13]
Answer.

1. Government regulated shops :
   The food procured by the FCI is distributed through government regulated ration shops among the poorer section of the society. This is called the public distribution system (PDS). Ration shops are now present in most localities, villages, towns and cities. There are about 5.5 lakh ration shops all over the country.
2. Food at lower cost: Ration shops also known as Fair Price Shops keep stock of foodgrains, sugar, kerosene oil for cooking. These items are sold to people at a price lower than the market price.
3. Stabilising prices : The PDS has proved to be the most effective instrument of government policy over the years in stabilising prices and making food available to consumers at affordable prices. It has been instrumental in averting widespread hunger and famine by supplying food from surplus regions of the country to the deficit ones.
4. Increase in food production :
   The system, including the minimum support price and procurement has contributed to an increase in foodgrain production and provided income security to farmers in certain regions.

Question.3. Name the place a poor person should go to purchase essential goods at reasonable rates.
Answer. Fair price shop

Question.4. Your family comes under poorest of the poor. Under which of the government scheme you can get cheap ration?
Answer. Antyodaya Anna Yojana.

Question.5. Why is there a need for food security in India ? Suggest any two points.
Answer. (i) Poverty.
(ii) Hoarding and black marke- ting.

Question.6. What are the functions of the FCI ? Mention any two functions.
Answer. (i) To make the foodgrains available to the poor a reasonable price.
(ii) To maintain a price stability of foodgrains.

The post Important Questions for CBSE Class 9 Social Science Food Security In India appeared first on Learn CBSE.

Important  Questions for CBSE Class 9 English Chapter 1 The Man who knew too much

REFERENCE TO CONTEXT QUESTIONS (SOLVED)

Read the given extracts and answer the questions that follow :
Question.1. The Sergeant asked, “You had any training before ?”
The Professor answered with a phrase that was to become familiar to all of us. “No, Sergeant. It’s all a matter of intelligent reading.”
(а) Why did the Sergeant put this question ?
(b) What was the Sergeant’s purpose in putting the Professor so many questions ? (c) Give the meaning of ‘intelligent reading’.
Answers :
(a) The Sergeant put this question because the Professor had answered all the questions put to him by the Sergeant.
(b) The Sergeant put so many questions to belittle the Professor.
(c) It means ‘complete understanding of what is read’.

Question.2. remember the first lesson we had in musketry. We stood in an attentive circle while a Sergeant, a man as dark and sun-dried as raisins, wearing North-West Frontier ribbons, described the mechanism of a service rifle.
(a) What is the meaning of musketry ?
(b) Describe the Sergeant.
(c) What does the phrase ‘North-West Frontier Ribbons’ convey about the person
mentioned? (CBSE 2014)
Answers :
(a) It means the art of using musket, a type of gun.
(b) The Sergeant was a dark-complexioned, experienced soldier.
(c) It means that the Sergeant had won an honour fighting on the North-West
Frontier.

Question.3. When, after a hard morning’s work cleaning out our hut, we listened in silence to the Orderly Officer’s praise, the Professor would break out with a ringing, dutifully beaming, “Thank you, sir!” And how superior, how condescending he was. It was always, “Let me show you, fellow,” or “No, you’ll ruin your rifle, that way, old man.”
(a) Give the meaning of the word ‘condescending’.
(b) Why did Private Quelch behave in this manner with his superiors ?
(c) Which expression tells us that Private Quelch was always cheerful ?[CBSE 2014]
Answers :
(a) The word ‘condescending ‘ means behaving in a polite manner but showing as if one were obliging somebody.
(b) Private Quelch behaved in an over-confident manner because he wanted to show off his knowledge.
(c) The phrase is ‘break out with a ringing, dutifully beaming’.

Question.4. A voice interrupted, ‘Two thousand, four hundred and forty feet per second.’
(а) Who spoke this line and to whom ?
(b) In which context did he speak ?
(c) Give the meaning of the word ‘interrupted’.
Answers :
(а) Private Quelch spoke this line to the Sergeant.
(b) He spoke when the Sergeant was telling about the speed of the bullet.
(c) It means ‘stopped someone to say or do something’.

Question.5. What could a gang of louts like us do with a man like that ?
(а) Who utters these sentiments ?
(b) Which ‘gang of louts’ is referred to here ?
(c) What do you mean by ‘louts’ ?
Answers :
(a) The narrator, one of the trainees, utters these sentiments.
(b) ‘The gang of louts’ refers to the group of trainees who are quite mischievous and aggressive.
(c) ‘those who behave rudely and aggressively’.

Question.6. He was our hero, and we used to tell each other that he was so tough that you could hammer nails into him without his noticing it.
(a) Who is ‘he’ referred to here ?
(b) What kind of person was he ?
(c) What does ‘tough’ mean ?
Answers:
(а) ‘He’ is Corporal Turnbull.
(b) He was a young man, very serious and tough-minded.
(c) ‘mentally strong’.

Question.7. The Corporal said nothing, but his brow tightened. He opened his mouth to resume.
(а) What made the Corporal feel irritated ?
(b) What did he resume ?
(c) Give the meaning of‘resume’.
Answers :
(a) Private Quelch’s interrupting his lecture made him feel irritated.
(b) He was lecturing to new recruits.
(c) ‘begin again’.

Question.8. I met Private Quelch at the training depot. A man is liable in his first week of army life-together with his uniform, rifle and equipment-a nickname.
(a) What was the nickname of Private Quelch ?
(b) Why was he called ‘Professor’ ?
(c) Give the meaning of the word ‘liable’.
Answers :
(a) The nickname of Private Quelch was ‘Professor’.
(b) He was called Professor because of his habit of sermonizing to one and all.
(c) ‘likely to have/get’.

Question.9.“Really. I must protest against this abominably unscientific and unhygienic
method of peeling potatoes. I need to only draw your attention to the sheer waste of vitamin values “
(a) Who is ‘I’ here ?
(b) Where is the speaker ?
(c) What does he want to say ? Why ?
Answers :
(а) T is here Private Quelch.
(b) Private Quelch, the speaker, is in the kitchen.
(c) He is trying to tell his co-workers the best way of peeling potatoes. He wants to show that he has better knowledge about the task than they do.

Question.10.“Thank you, Private Quelch. Fall in with the others now”.
(a) Who thanked Private Quelch ?
(b) What task was entrusted to Private Quelch ?
(c) What does ‘fall in’ mean ?
Answers :
(а) Corporal Turnbull thanked Private Quelch.
(b) Private Quelch was asked to lecture on the characteristics of the grenade.
(c) ‘form lines’.

Question.11. So this was the great moment.
(а) Why was that moment considered the great ?
(b) What duty was assigned to Private Quelch ?
(c) Use another word for ‘moment’.
Answers: 
(а) The ‘moment’ was great as the trainees thought that the Corporal was going to nominate one of them for a big job or for a stripe.
(b) Private Quelch was assigned kitchen duties permanently.
(c) ‘instant’.

Question.12. Of course, it was a joke for days afterwards; a joke and joy to all of us.
(a) What was the ‘joke’ ?
(b) Why were the trainees happy ?
(c) What do you mean by ‘all of us’ here ?
Answers :
(a) The ‘joke’ was the assigning of kitchen duties to Private Quelch quite unexpectedly.
(b) The trainees were happy because Private Quelch would no longer be with them to browbeat them with his superior knowledge.
(c) ‘all trainees including the narrator’.

Question.13. He had brains. He was sure to get a commission, before long. As a first step, he meant to get a stripe.
(a) Who is ‘he’ referred to ?
(b) What made him so confident ?
(c) What do you mean by ‘stripe’ ?
Answers :
(а) ‘He’ is referred to Private Quelch, ‘Professor’, who was one of the trainee soldiers.
(б) His knowledge and intelligence made him confident.
(c) ‘a V-shaped band to indicate the rank of a soldier’.

Question.14. “What about a song, chaps ?” is not greeted politely at the end of thirty miles.
(а) Who would suggest singing a song ?
(b) Why was this suggestion resented by his fellow trainees ?
(c) What do you mean by ‘chaps’ ?
Answers :
(a) Private Quelch would suggest singing a song.
(b) The suggestion was resented because all the trainees, except perhaps Quelch, were dead tired at the end of a long thirty-mile route march.
(c) ‘boys’.

Question.15. We tried to hit back at him with clumsy sarcasms and practical jokes.
(а) Who is ‘him’ referred to here ?
(b) Why was he ‘attacked’ ?
(c) Give the meaning of ‘sarcasms’.
Answers :
(а) ‘Him’ is here referred to Private Quelch.
(b) He was ‘attacked’ for browbeating his fellow trainees with his vast knowledge.
(c) ‘remarks that are intended to hurt someone’.

Question.16. The Professor scarcely noticed; he was too busy working for his stripe.
(а) What did the Professor scarcely notice ?
(b) What impression do you form of him ?
(c) Give the meaning of ‘scarcely’.
Answers :
(а) The Professor scarcely noticed the sarcasm in the remarks of his fellow trainees.
(b) He was simple-minded, though he sounded rude and aggressive.
(c) ‘hardly’.

Question.17. Each time one of us made a mistake the Professor would publicly correct him.
(a) Who was called the Professor ?
(b) What tells you that he was a tactless fellow ?
(c) Give the meaning of ‘publicly’.
Answers :
(a) Private Quelch was called Professor in jest.
(b) His habit of correcting others in public showed that he was tactless.
(c) ‘when other people, especially strangers are present’.

Question.18. “Forty four”.
“What’s that ?” The Corporal looked over his shoulder.
(а) Who spoke ‘forty four’ ? What did he mean ?
(b) What was the Corporal’s reaction ?
(c) What do you mean by ‘looked over’ ?
Answers :
(а) Private Quelch spoke ‘forty four’. He meant to say that a grenade is divided into forty four fragments.
(b) The Corporal was baffled at this sudden, unexpected remark.
(c) ‘inspected/examined’.

Question.19. The Professor was speaking again. “Shouldn’t you have started off with five characteristics of the grenade ? Our instructor at the other camp always used to, you know.’
(а) Who was being addressed to by the Professor ?
(b) What was the most tactless remark he made ?
(c) Give the meaning of ‘characteristics’.
Answers :
(а) The Corporal was being addressed to by the Professor.
(b) The most tactless remark was : “Our instructor at the other camp always used to…”.
(c) ‘features/qualities’.

Question.20. The squad listened in a cowed, horrified kind of silence.
(а) What do you mean by ‘the squad’ here ?
(b) What made them horrified and silent ?
(c) Give the meaning of‘cowed’.
Answers :
(a) A small group of trainee soldiers.
(b) They were horrified and silent at the humiliating comments made by the Professor for the Corporal.
(c) ‘frightened’
SHORT ANSWER QUESTIONS (SOLVED)

Answer each of the following questions in 30-40 words.
Question.l. Who was Private Quelch ? Where did the narrator meet him ?
Answer. Private Quelch was a trainee soldier. He was a bespectacled, lanky person. He was serious-minded person. He looked frowning all the time. He was in the bad habit of sermonising and philosophising. The narrator met him at his training depot as he himself was a trainee there.

Question.2. Why was Private Quelch labelled as the ‘Professor’ ? (CBSE 2014)
Answer. Private Quelch, a trainee soldier, was a bespectacled, serious-type of person. He had a great knowledge in his field. He was in the habit of sermonizing and finding fault with others. Se he was labelled as the Professor by his fellow trainees.

Question.3. Who is an Orderly Officer in lesson ‘The Man Who Knew Too Much’ ? How did the Professor behave in front of him ? (CBSE 2014)
Answer. An Orderly Officer in the lesson is an officer of the day. The Professor wanted to please him. So he cleaned his hut so thoroughly that the officer could not help praising him. In this task he outshone his fellow trainees.

Question.4. Describe Private Quelch. (CBSE 2014)
Answer. Private Quelch was a young trainee soldier. He was lanking, stooping and serious. He wore horn-rimmed spectacles. He had awesome knowledge in his field. Everyone was jealous of him. He earned the label of the Professor.

Question.5. Aircraft recognition was a matter of pride for the narrator and his friends in the lesson “The Man Who Knew Too Much”. How did the Professor humiliate them ? (CBSE 2014)
Answer. One day the trainee fellows of the Professor, among whom was the narrator, heard the sound of an aircraft. The aircraft was not visible in the sun. The Professor at once said on hearing the drone of the plane that it was a North American Harvard Trainer, while no one could recognize the plane. It was something humiliating for the narrator and his friends.

Question.6. How did Private Quelch respond to mistakes made by his colleagues in the army training camp in the lesson ‘The Man Who Knew Much’ ?[CBSE]
Answer. In the army training camp Private Quelch would at once respond to the mistakes made by his colleagues. He would intervene to show how the rifle is handled properly and used to fire a bullet. His habit of correcting others in public was not liked by anyone.

Question.7. What was Private Quelch’s attitude to his juniors ? Give examples to support your answer. (CBSE)
Answer. Private Quelch’s superior attitude to his juniors was resented by one and all. Once he intervened to tell someone to handle the rifle properly. At the end of a long, tiring march he angered others by suggesting, “What about a song, chaps ?”

Question.8. What was Private Quelch’s attitude to his seniors ? Give examples to support your answer. (CBSE 2014)
Answer. Private Quelch’s attitude to his seniors was irritating. He interrupted the Sergeant and told him the exact speed of the bullet. Then he interrupted Corporal Turnbull to tell him that a grenade has exactly forty four fragments.

Question.9. What was Tumbull’s reaction to Private Quelch’s answer ?(CBSE 2014)
Answer. Corporal Turnbull became angry on listening to Private Quelch’s answer. His brow tightened. He asked him to give a lecture on the grenade in place of him. In order to teach him a lesson, he nominated him for permanent cookhouse duties.

Question.10. What was the announcement made by Corporal Turnbull in the lesson The Man Who Knew Too Much’ ? Why did he make the announcement ?(CBSE 2014)
Answer. Corporal Turnbull announced that he was nominating Private Quelch on permanent cookhouse duties. He made this announcement to take revenge on Private Quelch for humiliating and correcting him before others.

Question.11. Why was everybody happy when Private Quelch was shifted to the cookhouse ? (CBSE 2014)
Answer. When Private Quelch was shifted to the cookhouse, everybody was happy. He had become a nuisance for them by finding faults with one and all in the public. Everyone felt that it was a good riddance.

Question.12. What was the Professor teaching his colleagues in the cookhouse ?(CBSE 2014)
Answer. Even in the cookhouse, the Professor did not stop sermonizing. He told his colleagues how to peel potatoes to preserve their hygienic value. He protested against the way they were peeling potatoes.

Question.13. Which characteristics of Private Quelch do you like most ?(CBSE 2014)
Answer. Private Quelch was not a narrow-minded or evil-minded person. We appreciate his simple-mindedness and his desire to be helpful to others. His hard working nature and intelligence are really appreciable.

Question.14. What made Private Quelch unpopular ?
Answer. Private Quelch was in the habit of finding faults with others. He would flaunt his knowledge by correcting even his seniors in the public. This habit of his made him unpopular in the army camp.

Question.15. Narrate in your own words the incident that proved to be a turning point in Private Quelch’s life.
Answer. Private Quelch was hopeful of getting a commission soon. One day, as usual, he corrected his senior, Corporal Turnbull, by telling him the exact number of fragments a grenade has. This infuriated the Corporal who sent him on permanent cookhouse duties as punishment. This barred him from realizing his ambition.

Question.16. What did the Professor mean by “intelligent reading” ?
Answer. By “intelligent reading” the Professor meant thorough understanding of what he read. He did not read anything casually. He made it a point to learn everything by heart.

Question.17. What were the Professor’s ambitions in the army ?
Answer. The Professor’s ambitions were to get a stripe and a commission in the army. He really worked hard for realizing these ambitions. Only his impractical and tactless approach took him away from his goal.

Question.18. Did Private Quelch’s day to day practices take him closer towards his goal ? How can you make out ?
Answer.No, Private Quelch’s day to day practices did not take him closer towards his goal. He had antagonized everyone including his instructors by interrupting and correcting everyone publicly. The Corporal sent him to the kitchen for permanent cookhouse duties.

Question.19. Describe Corporal Turnbull.
Answer. Corporal Turnbull was a strong and sturdy man. He was boastful of his physical toughness. He had come back from Dunkirk. He was tough, serious and even revengeful. He did not take Private Quelch’s interruption lightly and took a sort of revenge on him by sending him to kitchen to do cooking duties.

Question.20. Do you think Private Quelch learnt a lesson when he was chosen for cookhouse duties ? Give reasons for your answer.
Answer. Private Quelch did not learn any lesson. Even in the kitchen he continued with his interruptions and sermons. The author and his friend heard him protesting against the unscientific method of peeling potatoes, which was “a sheer waste of vitamin.

VALUE-BASED LONG ANSWER QUESTIONS (SOLVED)

Answer the following questions in 80-100 words each.
Question.1. “Too much knowledge is also a bane’. Comment on the statement with reference to Private Quelch’s character. (CBSE 2014)
Answer. Having too much knowledge is not a bane. In fact, each one of us should aim at getting as much knowledge as possible. A knowledgeable person, if he is wise also, is respected and honoured everywhere. It is the public show of knowledge which is bad. Sometimes it proves to be harmful, as in the case of Private Quelch. No one can dislike Private Quelch for his extraordinary knowledge. It is his tactless flaundering of knowledge that proves to be harmful to him. He is in the habit of correcting even his superiors in public. He angers the Sergeant for telling him the exact speed of the bullet while he was lecturing to the trainees. He infuriates Corporal Turnbull by correcting him and telling him to improve his lecture. Corporal Turnbull sends him on permanent cookhouse duties, jeopardizing his career.

Question.2. Self-promotion always brings resentment from others. Keeping the above statement in mind, comment on the character of Private Quelch.(CBSE 2014)
Answer. Self-promotion is now an accepted social value. Everyone, from a politician to an actor, is engaged in self-promotion. Watch any TV serial, you will come across examples of brazen self-promotion. But it is a fact that too much self¬promotion often boomrangs. This is what we see in the case of Private Quelch. Private Quelch or the ‘Professor’ has awesome knowledge about his field. He is in a hurry to impress others with his knowledge to realize his aim of getting commission in the army. So he tactlessly makes a show-off of his knowledge. He loses no opportunity to correct even his seniors in public. His fellow trainees begin to resent his attempts at self-promotion. He becomes a butt of their sarcasms and jokes. He tries to impress the Sergeant and the Corporal by interrupting and correcting them before others. Finally, his self¬promotion costs him dearly. He is sent on permanent cookhouse duties. He loses a golden chance to get commission in the army.

Question.3. Private Quelch’s ambition had blinded him. Analyse Corporal’s reaction to his behaviour. (CBSE 2014)
Answer. It is good to have an ambition. There cannot be any progress without having an aim in life. Ho ever, one should never be blinded by ambition. One should never be in a hurry to achieve one’s aim. When one is in a hurry, one becomes tactless and irrational, as Private Quelch becomes. He wants to get commission in the army. He has acquired knowledge which is more than sufficient. He can easily achieve his aim. Yet he jeopardizes his prospects by his tactless behaviour. He annoys Corporal Turnbull by publicly correcting him. The Corporal takes a revenge on him by sending him on permanent cookhouse duties. His reaction is natural. But we feel that it is too severe and negative. He should have given Private Quelch some other less severe punishment.

Question.4. ‘It’s all a matter of intelligent reading’, said Private Quelch. Evaluate the statement on the basis of Professor’s character. (CBSE 2014)
Answer. Private Quelch made this remark when the Sergeant, impressed by his knowledge, asked him, “You had any training before ?” The remark is quite tactless and reveals Professor’s self-pride and his tendency to show off. It, no doubt, annoys his senior. Even his juniors feel that he has crossed the limits by publicly correcting the Sergeant as to what the exact speed of the bullet is. Intelligent reading is good, but the way it is used matters a lot. Private Quelch uses his knowledge for self-promotion and, that too, tactlessly. No wonder, he gets his career jeopardized by infuriating Corporal Turnbull.

Question.5. Although the Professor was knowledgeable and willing to share his knowledge with his mates, they avoided crossing paths with him. Comment with reference to ‘The Man Who Knew Too Much.’(CBSE 2014)
Answer. Knowledgeable persons are sometimes avoided by their friends and associates. It is so because no one wants to be overshadowed all the time by someone. Private Quelch or the Professor has acquired much knowledge about his field. When he begins to outdo his fellow trainees with his superior knowledge they begin to avoid him. One day at the end of a tiring, thirty mile route march he suggested with his horrible heartiness, “What about a song chaps ?” No one greeted the suggestion. Day in and day out he began to lecture to them in his droning, remorseless voice on every aspect of human knowledge. Very soon his peers were in an awe of him. He was made a butt of sarcasms and jokes.

Question.6. What were the negative characteristics of Private Quelch’s character ? Explain any four. (CBSE 2014)
Answer. Private Quelch was a hardworking, simple-minded fellow. But he has some glaring negative personality traits. He was in the bad habit of showing off his knowledge. He would lose no opportunity to do so. Then he was quite tactless. He did not know that it was not good to interrupt one’s seniors in an effort to impress them. He was also ready to correct others in public. He was unaware that one feels embarrassed and humiliated if corrected before strangers. He was also a very condescending person. He would sometimes try to please his seniors by outshining others. All these character traits made him unpopular among both his seniors and juniors.

Question.7. What were the positive characteristics of Private Quelch’s character ? Explain any four. (CBSE 2014)
Answer. Private Quelch was a hardworking fellow. He would spend a lot of time in reading books and manuals. He wanted to acquire as much knowledge as possible. Indeed, he was a highly knowledgeable person. He could recall the minor details of what he had read. Then he was quite helpful. Whenever he found someone doing something wrong, he extended his helping hand willingly. He seemed to be free from ill-will against anyone. He did not pay any attention to his fellow trainees’ sarcasms and jokes. He had no grudge even against Corporal Turnbull. He seemed to be happy and contented with his duties in the cookhouse.

Question.8. “As a punishment Quelch was put on kitchen duties.”
Imagine yourself as the author of the story “The Man Who Knew Too Much”. Write a letter to your friend explaining the reason for giving him such punishment. (CBSE 2012)
Answer. 10 Green House
Mountain Top, MA
3rd March, 20
Dear George Hope you’re fine!
Thank you for reading my story. You have protested against the unjust punishment given to Private Quelch. You will agree with me that showing off one’s knowledge to belittle others in public is not a minor offence. It can infuriate anyone. Corporal Turnbull, if you remember, is a severe, hardy person.
How can he ignore anyone’s snub ? He acts as per his character traits. If he does not punish the Professor he will be acting against his own nature. So he sends him to kitchen so that he dare not cross his path again. Private Quelch, according to me, deserves punishment, and that is the message of the story : don’t cross the limits of decency even if you’re right.
Hope you’ll agree with me. Or we can agree to disagree. What do you say ?
Yours sincerely Alexander

Question.9. ‘Each time one of us made a mistake the Professor would publicly correct him.’
The ‘Professor’ was in the habit of finding faults. He would criticize anyone in public. Do you approve or disapprove his behaviour ? Should we make fun of others in public, even if they are wrong ? What would be the consequences if we do so ?
Answer. Private Quelch, called ‘Professor’ in jest, was in the habit of finding faults, sermonizing and publicly correcting others. He was not tactful, as he berated even his seniors in public, for which he had to suffer. He was sent on an unimportant duty in the kitchen.
We disapprove his behaviour. We should not berate anyone in public even if he is at fault or his knowledge is imperfect. We should particularly be careful while dealing with our superiors. Our superiors who can harm us will not tolerate any public criticism, however fair they may be.
If we persist in criticising and correcting others in public, we are likely to invite trouble. The person thus criticised will feel humiliated and react in some way or the other. He may assault us physically in anger. If in power, he may harm our career in some way. So, we should be tactful and practical. We should show off our knowledge only when it is safe and desirable to do so.

Question.10. You are ‘Professor’. Write a diary entry after your first day at the cookhouse, describing the events that led to this assignment, also express your thoughts and feelings about the events of the day in about 150 words.
Answer. 2nd January, 20 , Wednesday 10 p.m.
I am sad at what happened today. I am peeling potatoes in the cookhouse¬something I had never dreamt of. I know it will be very difficult for me to get the active duties once again. Corporal Turnbull is really angry with me.
I don’t know what possessed me when I could not contain myself and interrupted the Corporal when he was explaining the structure of the grenade. When he asked me to give the lecture in his place, I did not realize its implications. In my zeal to prove myself I spoke on the subject well. My colleagues seemed to be overawed. They were silent and perhaps knew better than me what was in my store. The Corporal got really offended with my approach. He said nothing but sent me to the cookhouse.
I know it is a punishment duty. But what can I do ? Even here when I find people doing something wrong, I fail to check myself and try to correct them. People call it ‘sermonizing’. Whatever it is, it is. I cannot overlook ignorance. Of course, I shall try to be a bit more rational and tactful in future.

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Algebra Common Core Math Foundation for Algebra Answers Chapter 1

Algebra Common Core Math Foundation for Algebra Homework Help Chapter 1 Answers Key

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CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2014

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1 Name the economic value achievable when attempts are made to increase resources in.
the country.
Answer. Increase in resources in the country would lead to increase in output and ultimately increase in employment opportunities leading to increase in income.

Question.2 Define demand.
Answer. Demand is the quantity of a commodity that a consumer is willing and able to buy, at each possible price during a given period of time.

Question.3 Give two examples of fixed costs.
Answer. Salary of permanent staff and Insurance premium are two examples of fixed costs.

Question.4 Define market supply.
Answer. Market supply refers to the quantity of a commodity that all the firms are willing and able to offer for sale at given price during a given period of time.

Question. 5 When is supply of a good said to be perfectly price inelastic?
Answer. When the supply of a good does not change with the change in its price, then the supply of such a commodity is said to^be perfectly price inelastic.

Question.6 Why does the problem of ‘how to produce’ arise? Explain.
Answer. This problem refers to selection of technique to be used for production of goods and services. This problem arises because resources are limited and have alternate uses. This is why we are forced to make a choice between alternate uses of resources and the commodities to be produced. Generally, techniques are classified as labour intensive and capital intensive. The selection of technique is made with a view to achieve the objective of raising the standard of living of people and to provide employment to everyone using least possible scarce resources.

Question.7 A and B are complementary goods. Explain the effects of change in price of A on demand for B.
Answer. Complementary goods are those goods which are used together to satisfy a particular want like petrol and car. An increase in the price of a complementary good leads to a decrease in the demand for the given commodity and vice-versa. For example, if price of complementary good A increases then demand for the given commodity B will also fall alongwith demand for A, as it will be relatively costlier to use both the goods together.
Similarly, if price of Commodity A decreases then demand for commodity B will increase

Question.8 Calculate marginal cost at each level of output.

Solution.

Question.9 When price of a commodity rises from Rs 5 to Rs 6 per unit, total revenue increases from Rs 1,000 to Rs 1,200. Calculate its price elasticity of supply.
Solution.

Question.10 Explain any two causes of “decrease” in supply of a commodity.
Answer.

Answer.

Question.11 Explain the between the equations of budget line and budget constraint
Solution.

Question.12 The price elasticity df demand of a good is (-) 0.5. At a price of ?20 per unit its demand is 300 units. At what price will its demand increase by 10 per cent.
Solution.

Question.13 Define monopoly. State the main features of monopoly.
Answer. Monopoly refers to a market situation where there is a single seller selling a product which has no close substitutes.
The main features of monopoly are:

1.  A single seller. There is only one producer of a product. It may be due to some
   natural conditions prevailing in the market Or may be due to some legal restrictions in the form of patent, copyright etc.
2.  No close substitutes. A monopoly product has no close substitutes and therefore practically does not face any competition.
3.  Barriers to the entry to new firms. The barriers may be due to legal restrictions created by firms in the form of cartels.

Question.14 From the following data find out the level of output at which the producer is in equilibrium. Give reasons “for your answer. (Use marginal cost, marginal revenue approach)

Solution.

According to MR-MC approach, the producer attains equilibrium where the following conditions are fulfilled:
(i) MR = MC
(ii) MC must be rising after the equilibrium Level of output.
thus, we can say that die producer is in equilibrium at output equal to 4 unite because at this stage both the equilibrium conditions are being satisfied.
At output level of 3 units, MR > MC implying that higher profits can be achieved by increasing the level of output. Also, if the firm produces slightly higher level of output than 4 units, then the firm’s MC > MR making profits negative. Thus producer’s equilibrium will be at 4 utiits of output.

Question.15 Explain the characteristics of indifference curves.
Answer. See Q. 15,2011 (I Delhi)
Or
Explain the conditions of consumer’s equilibrium using utility analysis.
Answer. See Q. 7(0), 2013 (I Delhi).

Question.16 Explain the changes that will take place in the market when market price of a good is less than its equilibrium price. Use diagram.
Answer.

Note: The following Question is for the Blind Candidates only in lieu of Q. No. 16.
Explain the changes that will take place in the market when market price of a good is less than its equilibrium price. Use a schedule.
Answer. Read Answer 16 and add:
Suppose the equilibrium price is ?5 at which demand equals supply. Further suppose that market price falls to ?4. This will lead to excess demand and competition between the buyers. As a result demand will start falling arid supply will start increasing. The changes will continue till prices rises to ?5 per unit at which demand equals supply.

SECTION B
Question.17 Give the meaning of depreciation.
Answer. Depreciation .refers to a fall in the value of fixed assets due to normal wear and tear, passage of time or expected obsolescence.

Question.18 Define domestic product.
Answer. Domestic product means the value of final goods and services produced within the economic territory of a country within a period of one year.

Question.19 What is meant by bank rate?
Answer. Bank rate is the rate of interest at which the central bank of the country lends money to the commercial banks of that country.

Question.20 What is a tax?
Answer. Tax is a legal compulsory payment imposed by the government on income and business profits or on cost of some goods, services and transactions.

Question.21 Give two examples of revenue expenditure.
Answer. Examples of revenue expenditure: Expenditure on Salaries; Pensions etc.

Question.22 Distinguish between real and nominal gross domestic product.
Answer. Nominal GDP or GDP at Current Prices. When GDP of a given year is estimated on the basis of prices of the same (current) year, it is called nominal GDP.
Islominal GDP can increase even without any increase in physical output as it is affected by changes in prices also.
Real GDP or GDP at Constant Prices. When GDP of a given year is estimated on the basis of prices of a base year, it is called real GDP. Real GDP helps in determining the effect of increased production of goods and services as it is affected by change in physical output only.

Question.23 Explain the ‘unit of account’ function of money.
Answer. See Q. 23, 2014 (I Outside Delhi).
Or
Explain the role of central bank as the’Bankers’Bank’
Answer. See Q. 27(Or), 2014 (I Outside Delhi).

Question.24 The value of marginal propensity to consume is double the value of marginal propensity to save. Find the value of multiplier.
Answer.

Question.25 In an economy planned spending is greater than planned output. Explain all the changes that will take place in the economy.
Answer. When planned spending (Aggregate Demand AD) is more than the planned output (Aggregate Supply AS), it implies that the consumers and the firms together would be buying more goods than the firms are willing to produce. As a result, the planned inventory would fall below the desired level. To bring the inventory back to the desired, level, the firms would resort to increase in employment and output until the economy is back at the equilibrium level of income and output, where AD becomes equal to AS and there is no further tendency to change.

Question.26 Distinguish between Balance of trade and Balance on current account of the Balance ofPayments account.
Answer. See Q. 24, 2009 (I Outside Delhi).

Question.27 From the following data, calculate “Net value added at factor cost”.

Answer.

Or
Is gross domestic product a true index of economic welfare of the people? Give two reasons in support of your answer.
Answer. The term welfare refers to the sense of well-being. Welfare is affected by a wide range of factors—both economic and non-economic.
GDP at its best, indicates economic welfare. However, it is not a satisfactory measure of economic welfare due to the following limitations:

1.  Externalities. These are the benefits or harms of an activity caused by a firm or an individual for which they are not paid or penalised. As such since these external effects do not form part of market transactions, GDP does not consider such negative externalities.
2. Non-monetary exchanges. These activities though influence economic welfare are
   not considered while measuring GDP, for example, services of housewives, own account production etc. They are not included in the GDP due to non-availability of data and problem of valuation.

Question.28 How does the central bank control credit creation in the economy through “Bank Rate”? Explain.
Answer. Bank rate is the rate at which the central bank lends money to commercial banks. An increase in bank rate increases the cost of borrowing from the central bank. It forces the commercial banks to increase their lending rates which discourages the borrowers from taking loans. It reduces the ability of commercial banks to create credit.
A decrease in the bank rate, on the contrary will encourage the borrowers to take more loans which will increase the ability of commercial banks to create credit.

Question.29 Government takes measures to restrict autonomous imports of gold. Explain the economic values desired to be achieved from this.
Answer.

Question.30 Calculate national income:

Answer.


Solution.

Question.31 (a) Explain the distinction between ex-ante measures and ex-post measures.
(b) From the following data about an economy, calculate its equilibrium level of income:
(i) Autonomous Consumption = 200
(ii) Marginal propensity to consume = 0.9
(iii) Investment = 1000
Answer. (a) Ex-ante measures mean planned and ex-post mean actual or realised. Both these terms are generally used in the context of savings and investment.
Ex ante savings are the desired savings and ex-ante investment refers to the desired or planned investment during the period of one year.
Whereas ex-post savings and investment are the actual savings and investment in the economy during the period of one year.

Question.32 Distinguish between:
(a) Direct tax and Indirect tax
(b) Primary deficit and Revenue deficit
Answer.

SET II

Note: Expect from the following questions, all the remaaining questions have been asked in set-I
SECTION A
Question.8 Calculate marginal cost at each level of output:

Answer.

Question.9 Ftom the following data calculate price elasticity of supply:

Answer.

Question.12 The price elasticity of demand of a good is (-) 0.5. At a price of Rs 40 per unit its demand is 300 units. At what price will its demand increase by 20 per cent?
Solution.

Question.16 Explain the changes that will take place in the market when market price of a good is greater than its equilibrium price. Use diagram.
Answer.

Note: The following Question is for the Blind Candidates only in lieu of Q. No. 16.
Explain the changes that will take place in the market when market price of a good is greater than its equilibrium price. Use a schedule.
Answer. Please read the answer above and add:

Market DD (Units) Market SS (Units)
In the above table, equilibrium price is Rs 3 per unit and equilibrium quantity is 30 units. But suppose the market price is Rs 4 at which market supply is greater than the market demand. Competition among the sellers will lead to a decline in the price which will increase the demand and decrease supply to 30 units which is the equilibrium quantity.

SECTION B
Question.19 What is meant by cash reserve ratio?
Answer. Cash Reserve Ratio is the fraction of deposits the banks are required to keep with the central bank.

Question.20 Define an indirect tax.
Answer. When the ‘liability to pay’ and ‘incidence’ of a tax lie on different persons, it is called an indirect tax.

Question.31
(a) Define aggregate demand. What are its components?
(b) From the following data about an economy, calculate its equilibrium level of Income:
(i) Marginal propensity to consume = 0.75
(ii) Autonomous Consumption = 200
(iii) Investment = 6000
Answer. (a) Aggregate demand reiers to the total value of final goods and. services that all sectors of the economy taken together are planning to buy at a given level of income during a period oftime. Its various components are as follows:

1.  Private Consumption Expenditure (G). The planned expenditure on final consumer goods and services by the households at a level of income during a given period of time.
2.  Investment Ependiture (I). Planned’expenditure on new capital goods by the producers during a period of time.
3.  Government Expenditure (G). Planned consumption expenditure of general government on providing free services to the people.
4.  Net Exports. Planned netexpenditure by the foreigners on the goods and services produced in the country during a period.

Question.32 Explain the following objectives of government budget:
(a) Allocation of resources
(b) Reduction in inequalities of income
Answer.
(a) Objective of alloeatian ef resources. Through the budgetary policy, government aims to reallocate resources in accordance with the economic (profit maximisation) and social (public welfare) priorities of the country. The government can influence the allocation of resources by encouraging the private sector through tax concessions, subsidies etc. to undertake certainproduction in publicinterest-Ifprivateseetor does not take interest, government can directly undertake production.
(b) Objective of reduction in inequalities of income. Economic inequality is an inherent part of every economic system. The Government aims to reduce such inequalities through its budgetary policy by imposing taxes on the rich and spending more on the welfare of the poor. Increased taxes will reduce the income of the rich and government spending will raise the standard of living oft the poop thus reducing inequalities in the distribution of income.

SET III

Note: Except for the following questions, all the remaining questions have hem asked in Set-I. and Set-II
Question. 8 Calculate average variable cost at each level of output:

Solution.

Question. 9 Calculate price elasticity of supply from the following data:

Solution.

Question.12 The price elasticity of demand of a good is (-)l. At a price of ?10 per unit its demand is 500 units. At what price will its demand increase by 20 per cent?
Answer.

SECTION B
Question.19 What is statutory liquidity ratio?
Answer. Statutory liquidity ratio refers to the minimum percentage of net demand and time deposits which the commercial banks are required to maintain with themselves.

Question.20 Define a government budget.
Answer. A Government budget is an annual statement showing itemwise estimats of reciepts and expenditures during a fiscal year.

Question.25 Distinguish between stocks and flows. Give an example of each
Answer.

Question.26 Explain the meaning of average propensity to consume. What is its relation with average propensity to save?
Answer. Average propensity to consume refers to the ratio of consumption expenditure to the corresponding level of income.

Question.31
(a) Distinguish between autonomous consumption and induced consumption.
(b) From the following data about an economy, calculate its equilibrium level of income:
(i) Autonomous Consumption = 400
(ii) Marginal propensity to consume = 0.5
(iii) Investment = 4000
Answer.

The post CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2014 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2013

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.

SET I

SECTION A
Question.1 How in any one way can an economy increase its production capacity?
Answer. Production capacity can be increased by improvement in production technology.

Question.2 Define indifference curve.
Answer. Indifference curve graphically represents many combinations of two commodities which yield equal satisfaction.

Question.3 What is the relation between price of a good and demand of its complementary good?
Answer. Inverse relation.

Question.4 What is marginal product?
Answer. Marginal product is the change in total product which takes place as a result of employing an additional unit of a variable input.

Question.5 Give two examples of implicit cost.
Answer.

1.  Rental value of the premises owned by the owner of the business organisation.
2. Salary of the manager who is also the owner of the business.

Question.6 Define Production Possibility’Curve and state its properties.
Answer. Production Possibility Curve. In a simple economy various combinations of two commodities (say wheat and guns) can be produced with the full use of given resources. These combinations are called as production possibilities. When these combinations are graphically represented, the curve which is so formed, is called a production possibility curve.
Properties of Production Possibility Curve:

1.  Production Possibility curve is concave to the origin.
2. It is downward sloping. PP curve may be defined as a curve which represents various possible combinations of two commodities that can be produced with full use of given resources in an economy under given technological conditions.

Question.7 What is Law of Diminishing Marginal Utility? Give a numerical example.
Answer. Law of diminishing Marginal utility states that as we consume more and more units of a commodity, the utility derived from each successive unit goes on decreasing. This law holds true under certain assumptions, i.e., a reasonable quantity of the commodity is consumed and that consumption is a continuous process. This law can be explained with the help of the following utility schedule.

The table shows that as the consumer consumes more units of ice cream, the marginal utility obtained from each successive unit goes on declining. Accordingly, MU curve slopes downwards from left to right.

Question.8 Price of a good rises by 25 per cent but there is no effect on demand of the good due to this price rise. Calculate price elasticity of demand.
Solution.

Question.9 State the phases in the behaviour of Total Product as per the Law of Variable Proportions. Use diagram.
Answer. According to Law of variable proportions. In the short run for increasing total product, units of variable inputs are increased. As a result of which total product passes through three phases (stages) as shown in the diagram

1.  In the first phase TP (Total Product) is increasing
   at an increasing rate.
2. In the second phase TP (Total Product) is increasing at a decreasing rate.
3. In the third phase TP (Total Product) declines.
   All these phases have been shown in the diagram.

                                                                                          Or
State the relation between Marginal Product and Average Product. Use diagram.
Answer. Usually, the relation between Marginal Product and Average Product is as shown in the diagram. It passes through three phases:

1.  In the first phase Total product increases at an increasing rate, when marginal product is increasing.
2. In the second phase, Total product increases at a decreasing rate with the result average product is also decreasing but is more than Marginal product, when marginal product is positive but is less than Average product.
3. In the third phase, Total product starts declining.
   This happens when marginal product becomes
   negative Average product also declines but is never negative. Total product is maximum when marginal product is zero.

                                                                            Or
Note: The following question is for the Blind Candidates only in lieu of Q.No. 9.
State the phases in the behaviour of Total Product as per the Law of Variable Proportions.
Give a numerical example.
Answer. There are three phases in the behaviour of Total Product according to Law of Variable proportions. These phases can be easily comprehended looking at the schedule of Total Proudct given below :

                                                                                                                   Or

State the relation between Marginal Product and Average Product. Give a numerical example.
Answer. The usual relation between Marginal Product (MP) and Average Product (AP) is as following:

1.  In the beginning MP increases at increasing rate, hr this phase MP > AP.
2. Later on, in the second phase, MP is positive but declines. In this phase MP < AP.
3.  In the last phase. MP becomes a negative item. MP < AP.
   These phases can be understood looking at the schedule given below:
   

Question.10 Explain the geometric method of measuring price elasticity of supply. Use diagram.
Answer. According to the geometric method, elasticity of supply is measured at a point on the supply curve. To explain this method we draw three straight line supply curves. To measure elasticity of supply at a point, we extend the supply curves so that these meet X-axis at point B. In the first diagram point B is in the negative range, in the second diagram point B is in the positive range and in the third diagram point B is exactly at the point of origin. Elasticity of supply (say) at point A is equal to the horizontal segment BC divided by the quantity supplied at point A. Thus, Es = BC/OC.


Note : The following question is for the Blind Candidates only in lieu of Q. No. 10.
Explain the Law of Supply. Give a numerical example.
Answer. The law of supply states that there is a direct relationship between the price of a commodity and its supply. This means, when price is more supply is more and vice-versa. The other things which are assumed to be constant are—technology, input prices and tax pattern. If these things do hot hold good then the direct relationship between price of a commodity and its supply may not hold good.

Question.11 Market for an essential item of consumption is in equilibrium, but the equilibrium price is too high for the common man. What can the government do to bring down its market price but only through the normal market forces? Explain the chain of effects of the government’s action.
Answer. The essential items of consumption have to be made available to the people even when their prices are high. Now the question arises as to how to tackle the problem of price- rise so that the supply of these items is not reduced. In such a case the government should give subsidies to the manufacturing firms so that the inputs become cheaper or the cost of production comes down so as to reduce the price of such commodities.

Question.12 Explain how do the following influence supply of a good:

1. Taxes on production.
2. Changes in prices of other goods.

Answer.

1.  Taxes on production, Government imposes various types of taxes on production,
   such as Excise duty, Slles tax, Customs duty etc. Imposition of a tax raises the cost of production. This in turn will have an adverse effect on production and may , discourage the producer from.producing these goods and the supply of these goods may decrease.
2. Changes in prices of other (related) goods. If price of a related good increases, supply of that commodity will increase and supply of initial commodity will decrease and vice-versa. For example, If the price of rice increases then a farmer will increase its production and therefore supply of wheat will decline.

Or
Explain how do the following influence supply of a good:

1. Technological changes.
2.  Changes in prices of inputs

Answer.

1. Technological changes. Advancement in technology is a continuous process on account of research activities which constantly take place in an economy. When there is an improvement in technology, cost of production per unit declines, with the result supply increases.
2. Changes in prices of inputs. The increase in the price of factors of production leads
   to an increase in the cost of production which adversely affects the supply of a commodity. .
   For example, when factor prices go up, the cost of production goes up. With the
   result, the supply of a commodity will be less at a given price. Hie reverse will be the case when factor prices decline.

Question.13 A consumer consumes only two goods X and Y and is in equilibrium. Show that if price of good X rises, it will lead to fall in demand for X.
Answer.

Question.14 Explain the meaning of ‘monotonic preferences’. Also explain why an indifference curve is (a) downward sloping and (b) convex to the origin.
Answer. See Q. 15, 2011 (III Delhi).
Or
Explain the CQncept of Marginal Rate of Substitution and its behaviour in the Indifference Curve analysis. Use a schedule.
Answer.
Marginal Rate of Substitution (MRS) may be defined as the amount of Y sacrificed for obtaining an additional unit of X. Say, for obtaining an additional unit of X, 4 units of Y are foregone,

Question.15 Giving reasons identify the equilibrium level of output and find profit at this output using ‘Marginal Cost and Marginal Revenue’ approach from the following:

Solution.

The equilibrium level of output is 3 units because at this level MC = MR. At this level profit is (TR – TC) Rs1. MC and MR are also equal at 1 unit level but the profit there is zero.

Question.16. Explain the implications of the following in an oligopoly market:

1. Interdependence between firms,
2.  Barriers to the entry of new firms

Answer.

1.  Interdependence between firms. Under oligopoly there is interdependence among the firms. This signifies that the seller cannot change the price independently. Though the seller is free to pursue independent price policy, but in practice he does not change the price, because of the fear of retaliation by other sellers.
   This is so because if he increases his price, Others may not increase and his sale will fall. On the other hand, if he lowers the price, Others may also lower their prices and he may not get the benefit of that. Therefore price tends to be rigid under oligopoly.
2.  Barriers to the entry of new firms. New firms can enter the market but practically it is difficult for them due to requirement of huge capital or operating at minimum average cost or artificial barriers due to patent rights which prevent entry of new firms in the industry. Therefore for all practical purposes, new firms cannot enter the market.

SECTION B
Question.17 Define national income.
Answer. National income is the money value of final goods and services produced within the domestic territory of a country in a year plus net factor income earned from abroad.

Question. 18 What is macroeconomics?
Answer. Macroeconomics is the study of behaviour of aggregates of an economic system.

Question.19 Name any one step that the government can take through its budget to check inflation that is causing hardships to the people.
Answer. The Government should reduce public expenditure to check inflation.

Question.20 What are time deposits in banks?
Answer. Time deposits are the deposits which have been made for a prescribed period and earn interest. These can be withdrawn from the bank on demand.

Question.21 Define final goods.
Answer. Final goods are the goods which are used for consumption and investment arid once produced, lie outside the production boundary.

Question.22 Explain the ‘Store of Value’ function of money.
Answer. Store of value. It was virtually impossible to store surplus value under barter economy. The discovery of money has removed this difficulty. With the help of money, people can store surplus purchasing power and use it whenever they want. Saving in the form of money is not only secure but its possibility of being destroyed is very less. Besides, it can be used whenever need be. By facilitating accumulation of money, money has become the only basis of promoting capital formation.
Or
Explain the ‘Unit of Account’ function of money.
Answer. Money as a unit of account. Money measures the value of various goods and services : which are produced in an economy. In other words, money works as unit of value or unit of account/ In a barter economy it was very difficult to decide as to how much volume of goods should be given in exchange of a given quantity of a commodity. Money, by performing the function of common measure of value, has saved the society from this difficulty. Now the value of all goods and services are expressed in terms of money such as Rs 20 per metre, Rs 10 per kilogram etc. In this way, money works as a common measure
of value or account by expressing value of all goods and services in terms of money in the exchange market. By working as a unit of value, money has facilitated modem business and trade.

Question.23 Calculate equilibrium national income from the following:
(i) Consumption expenditure at zero income                                                       Rs 60
(ii) Marginal propensity to consume                                                                        Rs 0.9
(iii)Investment                                                                                                                  Rs 100
Answer.

Question.24 Differentiate between aggregate demand and aggregate supply.
Answer.

Question.25 Explain the basis of classifying government receipts into revenue receipts and capital receipts. Which type of these receipts are borrowings by government and why?
Answer. The basis of classifying receipts into revenue receipts and capital receipts is whether a receipt creates or reduces liability. A receipt which does not either create a liability or lead to reduction in liability is revenue receipt such as tax revenue. On the other hand, a receipt which either creates a liability or leads to reduction in liability is a capital receipt. Borrowing by the government is a capital receipt because borrowing creates a liability for the government.

Question.26 Foreign exchange rates have risen considerably in a country. What is its likely impact on imports of that country and why?
Answer. Foreign exchange rates have increased considerably in Country A. All the goods, which are imported will become more expensive. This simply means that for all its imports Country A shall have to pay more. Naturally, this will adversely affect Country A’s imports. In such a situation all efforts are made to reduce imports.

Question.27 What is Legal Reserve Ratio? Explain its components.
Answer. Legal reserve ratio is the sum of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). CRR is that part of deposits which Commercial Banks have to keep as reserve with the Central Bank of the country. Statutory Liquidity Ratio is that part of deposits which the Commercial Banks have to keep with themselves in Cash and designated assets and securities.

Question.28 Reduction in income inequalities raises welfare of the people. How can government help through government budget, in this regard? Explain.
Answer. Income inequalities adversely affect welfare of the people. This is so because low income group people find it difficult to satisfy even their basic needs. Therefore, for increasing the level of welfare, income inequalities should be reduced. In this regard the government can take appropriate steps through the budget. In order to do that, Government taxes the rich and spends the money for such projects that benefit the poor people, such as providing free education, free health care, minimum wages etc. In India, Government spends a lot on such projects that benefit the poor.

Question.29 Explain the concept of ‘deficit’ in the balance of Payments.
Answer. See Q. 25, 2010 (I Delhi).
Or
Are the following entered

1. on the credit side or the debit side and
2.  in the current account or capital account in the Balance of Payments account? You must give reason for your answer.

(a) Investments from abroad.
(b) Transfer of funds to relatives abroad.
Answer.
(a) Investments from abroad. Investment from abroad is entered on the credit side in the
Capital account because Investments from abroad bring in foreign exchange.
(b) Transfer of funds to relatives abroad. Transfer of funds to relatives abroad are entered on debit side of Current account because they involve outflow of domestic currency.

Question.30 Calculate (a) Private Income and .(b) Gross Domestic Product at Factor Cost.

Solution.

Question.31 Explain the following:

1. Why are imports deducted while calculating domestic product through the expenditure method?
2. Why is ‘indirect tax’ deducted while estimating national income by expenditure method?
3.  Why are free facilities given to employees included in national income?

Answer.

1.  Net exports which is equal to (X – M) is a part of GDP according to the expenditure method. Imports are made from the rest of the world and they are not included in GDP.
2. According to expenditure method national income is calculated at market price. Therefore, for finding out national income (NNP at Fc) indirect taxes are deducted.
3. Free facilities given to employees are productive activities and form part of the salary/remuneration paid to the employees. Therefore these are included in national income, though these services are provided free of cost.

 Or
Distinguish between ‘nominal income’ and ‘real income’. Explain why due to the presence of non-monetary production, real national income on its own cannot be treated as a true index of welfare.
Answer. Income measured at constant prices is real income. Changes in real income take place due to changes in the volume of goods and services and not in prices. Therefore, for the purposes of comparison, real income is used.
Income measured at current prices is nominal income. Changes in nominal income mainly take place on account of changes in the prices. Nominal income cannot be used for the purposes of comparison.
Many activities in an economy are not evaluated in monetary terms. For example, the domestic services women perform at home are not paid for. The exchanges which take place in the informal sector without the help of money are called barter exchanges. In a barter exchange, goods (or services) are directly exchanged against each other. But since money is not being used here, these exchanges are not registered as part of economic activity. In developing countries, where many remote regions are under-developed, these kinds of exchanges do take place. But they are generally not counted in the GDP of these countries. This is a case of under-estimation of GDP. Hence, GDP calculated in the standard manner may not give us a clear indication of the productive activity and well-being of a country.

Question.32 What is ‘excess demand’ in macroeconomics? Show the same in a diagram. Explain the role of ‘open market operations’ in reducing it.
Answer. When equilibrium level of income takes place in an economy before the stage of full employment, it is a situation of deficient demand. In this case, at the full employment level aggregate demand is less than aggregate supply.
When equilibrium level of income takes place after the stage of full employment, it is a
situation of excess demand. In this case, at the level of full employment aggregate demand is more than aggregate supply.
AD and AS are shown below in the diagrams.

Role of Open Market Operations. A number of methods can be used for comprehending the situation of excess demand. Open market operations is one of them. This means sale and purchase of government securities by the Central bank in the open market. Government securities are bought and sold by commercial banks to correct the situation of excess demand and deficient demand. For correcting the situation of excess demand, Central bank should reduce the supply of credit and for that it should sell securities in the open market which will be bought by the commercial banks. This leads to flow of money out of commercial banks and reduces the liquidity position of commercial banks and hence they give less credit. By this decline in the lending capacity of the banks, borrowings decline and their aggregate demand also declines.
Note: The following question is for the Blind Candidates only in lieu of Q.No. 32.
Distinguish between ‘excess demand’ and ‘deficient demand’. Explain the role of ‘open market operations’ in correcting excess demand.
Answer. Please read the above answer to Q. 32.

SET II

Note: Except for the following questions, all the remaining questions have been asked in Set I.
SECTION A

Question.1 What is meant by consumer’s equilibrium?
Answer. Consumer’s equilibrium means the quantity of a commodity which a consumer consumes to maximise his satisfaction, given his income and the price of the commodity.

Question.4 Define Average Prdouct.
Answer.

Question.7 Price elasticity of demand of a good is (-) 4. When price of the good falls, its demand rises by 24 per cent. Calculate percentage change in price.
Solution.

Question.12 A consumer consumes only two goods X and Y and is in equilibrium. Price of good X falls. Show that it will lead to rise in demand for X.
Answer.

Question.14 Giving reasons identify the equilibrium level of output and find profit at this output using ‘Marginal Cost and Marginal Revenue’ approach from the following:

Solution.

SECTION B
Question.32 Calculate Personal Income and National Income:

Solution.

SET III

Note: Except for the following questions, all the remaining questions have been asked in Set I and Set II.
SECTION A
Question.3 Define marginal revenue.
Answer. Marginal revenue is the change in toted revenue that takes place by selling an additional unit. In short,

Question.5 Define budget line.
Answer. The budget line is graphically shown as bundles of goods that can be bought by spending the entire income.

Question.6 Price elasticity of demand of a good is (-) 3. What is the percentage change in demand if the price of the product rises by 3 per cent. Calculate.
Solution.

Question.13 A consumer consumes only two goods X and Y and is in equilibrium. Show that if price of good Y falls, it will lead to rise in demand for, Y.
Answer.

Question.16 Giving reasons identify the equilibrium level of output and find profit at this output using ‘Marginal Cost’ and ‘Marginal Revenue’ approach from the following :

Solution.

SECTION B
Question.26, Calculate Marginal Propensity to Consume from the following:

1.  Consumption expenditure at zero income                                                                  Rs 70
2.  Equilibrium income                                                                                                             Rs 700
3. Investment                                                                                                                                Rs 140

Solution. Here, Equilibrium Income, Y = Rs 700

Question.28 Explain the ‘Banker’s Bank’ function of the central bank.
Answer. Central bank is the bank of all the commercial banks in the country. This signifies that it has the same relationship with the commercial banks in the country which the commercial banks have with their customers. It keeps their required cash in reserve, provides them financial securities, gives them advice and discounts their bills and securities. It also

Question.31 Calculate Private Income and Gross National Product at Market Price:

Solution.

The post CBSE Sample Papers for Class 12 Economics Compartment Outside Delhi -2013 appeared first on Learn CBSE.

CBSE Sample Papers for Class 12 Economics Compartment Delhi -2013

Time allowed : 3  hours                                                                                         Maximum marks 100

GENERAL INSTRUCTIONS

1.  All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Questions No. 1-5 and 17-21 are very short-answer questions carrying 1 nick each. They are required to be answered in one sentence each.
4.  Questions No. 6-10 and 22-26 are? short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5.  Questions No. 11-13 and 27-29 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6.  Questions No. 14-16 and 30-32 are long-answers questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7.  Answers should be brief and to the point and the above word limit should be adhered to as far as possible.