INTERNATIONAL INDIAN SCHOOL RIYADH XI XII BOYS SECTION SUBJECT: ECONOMICS WORKSHEET

Size: px

Start display at page:

Download "INTERNATIONAL INDIAN SCHOOL RIYADH XI XII BOYS SECTION SUBJECT: ECONOMICS WORKSHEET"

Cecily Hudson
5 years ago
Views:

1 INTERNATIONAL INDIAN SCHOOL RIYADH XI XII BOYS SECTION SUBJECT: ECONOMICS WORKSHEET CLASS: XII UNIT-1 INTRODUCTION 1. Maruti Udyog Ltd. Fixes the price of its cars. Is it a study of Macro economics? Why? 2. Scarcity and Choice go all together. Defend or Refute. 3. Only scarce goods attract price. Comment. 4. A lot of people died and many factories were destroyed in an earthquake. How will it affect the PPC of the economy. 5. A countrys resources are fully and efficiently employed. The problem of scarcity exists. What advice would be given to raise the efficiency level of the human resource to fight against scarcity? 6. As water resources are limited in our country how can we economise the water resources so that it could not cause any future problem> give two 7. Although water is useful yet it is cheap. On the contrary diamond is not much of use still it is expensive. Give one economic reason for this paradox. 8. Large number of technical training institutions have been started by the government. State its economic value in the context of PPC. 9. Name the economic value achievable when attempts are made to increase resources in the country.\ 10. There are various sources of income a teacher has such as i. He can earn Rs from teaching in a school. ii. He can earn Rs by tution/ coaching. iii. He earns Rs by writing book guides. What is the opportunity cost of his teaching in school?why should he choose teaching profession? 11. Why is PP curve also called Opportunity cost curve? 12. A doctor has a private clinic in New Delhi and his annual earnings are Rs. 10 lakh.if he works in a government hospital in New Delhi his annual earnings will be Rs. 8 lakh. What is the opportunity cost of having a clinic in New Delhi? 13. Giving reason comment on the shape of PPC based on the following schedule. Good X ( Units) Good Y ( Units)

2 UNIT- II Consumer s Equilibrium and Demand. 1. How would you comment on the elasticity of demand when 8% decrease in price of a commodity causes 2% increase in expenditure of the commodity.? 2. If demand curve is found to be positively sloped what it could be due to? Give your answer in terms of nature of the commodity. 3. Do you agree with the view that law of demand need not necessarily fall in case of inferior goods? 4. Diagrammatically illustrate 2 conditions of consumer equilibrium in the context of IC analysis. 5. Given Ed= (-) 0.2 and percentage increase in price is 20% find change in expenditure on the commodity. 6. When the price of exportables falls in the domestic market and exports tend to rise our export receipts fail to show a rise. Why? 7. What awareness can be brought about in the society to reduce the demand for essential commodity like petrol whose price is increasing day by day. 8. A consumer increases his demand for a commodity from 80 units to 100 units when its price falls by 10%. Calculate its price elasticity of demand. 9. Distinguish between shift in demand and movement along the demand curve. 10. Explain the effect of fall in price of substitute good upon the equilibrium price and quantity. Use diagram. 11. Explain 2 properties of IC. 12. State any 4 sources of leftward shift of demand curve. 13. Explain the difference between Law of Demand and Price Elasticity of Demand. 14. A good is inferior to one consumer and at the same time normal for another consumer. Do you agree? Give example. 15. Raymond management decided to declare Big Sale to increase their revenue. Do you think it will be a success? 16. What is meant by Budget Set, Budget Line, and Budget constraint. 17. Define MRS and MRT with numerical examples. 18. Define market demand. Explain 2 additional factors affecting market demand other than the factors affecting Individual Demand. 19. Price of a good rises from Rs. 8 per unit to Rs. 10 per unit but its demand remains unchanged. Calculate price elasticity of demand. 20. How do the following factors affect elasticity of demand?

3 i) Proportion of income spent on a good by consumer. ii) Number of close substitute of the good available iii) Habit of a consumer 21. Explain hoe the demand for a good is affected by a rise in price of supplementary good. 22. A 10% rise in price of a good leads to a 20% fall in demand of a good. Calculate price elasticity of demand. UNIT-III PRODUCER BEHAVIOUR AND SUPPLY (MICRO) 1. Explain the likely behaviour of TP &MP when for increasing production only one input is increased while all other inputs are kept constant. 2. Explain the relationship between AP & MP with the help of diagram. 3. Differentiate between short period and long period in production. 4. A farmer in Punjab transports wheat from the farm to a flour mill. Is this activity considered as production? Why/ 5. What are total fixed cost and total variable cost and TC of a firm, How are they related. 6. Explain the relation between AC & MC 7. Why is the Short run MC is U shaped 8. Differentiate between Explicit Costs& Implicit Costs. 9. The fixed cost of a firm is Rs. 120 Its marginal cost at different levels of output is given below. Calculate TC and AVC OUTPUT MC Given below is the cost schedule of a firm. The AFC is Rs. 20 when it produces 3 units. Calculate its MC and ATC at each level\ OUTPUT AVC Why does difference between ATC and AVC decrease with increase in output? Explain with diagram. 12. How does technological progress affect the supply curve of a firm. 13. How does imposition of a unit tax affect the supply of a firm 14. The co-efficient of elasticity of supply is 3. A seller supplies 30 units of the commodity at a price of Rs. 10 per unit. How much quantity of it will he supply when its price rises by 12% 15. Distinguish between Change in supply and change in quantity supplied

4 16. Explain geometric method of measuring price elasticity of supply. 17. Firm A produces both Pants and shirts. How will an increase in price of pants affect the supply of shirts? 18. Complete the following table Output AR MR TR UNIT IV- Forms of Market and price Determination under Perfect Market 19. When is price different from MR? 20. Show AR curve and demand curve are the same. 21. Can there be a positive level of output that a profit maximizing firm produces in perfect competitive market at which market price is not equal to MR. Give an explanation. 22. Explain the implications of the following i) homogeneous product b) product differentiation iii) Large number of sellers and buyers 23. The rising portion of the MC curve is the supply curve of a competitive firm. Explain 24. Explain the effect on equilibrium price due to simultaneous increase in demand and supply. 25. What will be the impact on price and quantity when the price of substitute good rises. ECONOMICS (MACRO) Unit.5. National Income And Related Aggregates 1. Give two examples of Macro Economic variables. 2. What is the difference between Micro Economics and Macro Economics? 3. Distinguish between real flow and money flow. Give examples. 4. Distinguish between Gross Domestic Product at market price (GDP@Mp) and Net Domestic Product at factor cost (NDP@Fc) 5. Distinguish between Domestic Income and National Income. 6. Define (i) Nominal GNP (ii) Real GNP. 7. Explain the concepts of stock and flows.

5 8. Explain the circular flow of income in a two sector economy. 9. Explain the concepts of leakages and injections in the circular flow of income. 10. From the following data estimate (a) Personal Income, (b) Private Income and (c) Personal Disposable Income : (i)national Income (ii)corporate profits tax (iii)national Debt Interest (iv)direct personal taxes (v) Savings of the private corporate sector (vi)income from property and entrepreneurship Accruing to govt. administrative departments (vii) Current transfers from govt. administrative dept. (viii)saving of non-departmental public enterprises (ix) Current transfers from rest of the world 2,500 cr 25 cr 30 cr 75 cr 50 cr 75 cr 70 cr 10 cr 30 cr 11. Calculate (i)gnp@fc and (ii) NNDI From following data: (i)net Indirect tax 800cr (ii)net domestic fixed capital formation 500cr (iii)consumption of fixed capital 100cr (iv)private final consumption expenditure 5,000cr (v)govt. final consumption expenditure 2,000cr (vi)net Factor income to abroad 50cr (vii)net exports (-)50cr (viii)change in stock (-)30cr (ix)current transfers from rest of the world 70cr (x)compensation of employees 2,500cr (xi)current transfers to rest of the world 40cr 12. If the NDP@Fc is Rs.1,000 crores, and NFIA is Rs.(-)5 crores, how much will be national income ( NNP@Fc)? 13. What should be added to NNP@Fc (NI) to get net national disposable income? 14. Suppose the GDP at market price of a country in a particular year was Rs.1,100 crores. Net Factor Income from Abroad was Rs.100 crores. The value of Indirect Taxes Subsidies was Rs.150 crores and National Income Rs.850 crores. Calculate the aggregate value of depreciation. 15. Show how the sum of value added is equal to the sum of factor income. 16. Explain the problem of double counting in the estimation of national income with the help of an example. State one method of avoiding it. 17. Distinguish between a factor payment and a transfer payment.

6 18. What are the main precautions required to be taken in estimating national income by the income method? 19. Categorise the following into intermediate goods and final goods. You must give reasons for your answer. (i) A new car purchased by a taxi-driver. (ii) Stationery purchased by the Government. (iii)wheat purchased by households. 20. Classify the following into factor income and transfer receipt. Give reasons for your answer. (i)employers contribution to social security schemes (ii) Scholarships given to students by the government. (iii) Old age pension given by the government. (iv) Bonus given to employees by employer. 21. Describe the steps involved in estimating national income by expenditure method. Also point out the necessary precautions that must be taken in this method. 22. Explain the components of factor income. 23. How are the following treated in the estimation of national income? (i)transfer payments. (ii)services of owner occupied houses. (iii) Commission received from sale of second hand goods. (iv) Non- marketable goods. 24. Will the following be included in the national income of a country? Give reasons for your answer. (i) School fees paid by students. (ii)purchase of new shares of a domestic firm. (iii) Gifts received from abroad. (iv)furniture purchased by households. 25. Calculate value added by firm X from the following data: Items Rs. In Lakhs (i)sales 600 (ii)purchase of raw material 200 (iii)import of raw material 100 (iv)import of machines 200 (v)closing stock 40 (vi)opening stock Calculate Net Value Added at Factor Cost from the following: Items (i)purchase of raw materials 30 (ii)depreciation 12 (iii)sales 200 (iv)excise tax 20 (v)opening stock 15 Rs. In Lakhs

7 (vi)intermediate consumption 48 (vii) Closing stock Calculate intermediate consumption from the following data: Items Rs. In Lakhs (i)value of output 200 (ii)net value added at factor cost 80 (iii)sales tax 15 (iv)subsidy 5 (v)depreciation Calculate Sales from the following data: Items Rs. In Lakhs (i)net value added at factor cost 300 (ii)net addition to stocks (-)20 (iii)sales tax 30 (iv)depreciation 10 (v)intermediate consumption 100 (vi)subsidy From the following data calculate the Gross Domestic Product at Factor Cost by (a) Expenditure Method (b) Income Method: Items Rs. In Crores (i)private final consumption expenditure 700 (ii)wages and salaries 700 (iii)employers contribution to social security scheme 100 (iv)gross domestic fixed capital formation 160 (v)profits 10 (vi) Govt. final consumption expenditure 200 (vii)rent 30 (viii)change in stocks 20 (ix)exports 40 (x)interest 40 (xi)imports 20 (xii)net factor income from abroad (-)10 (xiii)mixed income 100 (xiv)depreciation 20 (xv)subsidies 10 (xvi)indirect taxes 20 Unit. 6. Money and Banking 1. Explain briefly any two functions of money. 2. Explain the unit of value function of money.

8 3. Distinguish between limited legal tender and unlimited legal tender. 4. Define money supply. Explain different measures of money supply used by RBI in India. 5. Explain any one of the following functions of a central bank : (i)currency authority, and (ii) lender of last resort. 6. Distinguish between a commercial bank and a central bank. 7. What is bank rate? How does lowering and raising of bank rate affect availability of credit? 8. How does a central bank control the availability of credit by open market conditions? Explain. 9. What are margin requirements? How does lowering or raising of margin requirements affect availability of credit? 10. Explain the process of money creation by the commercial banking system with help of suitable example. Unit. 7. Determination of Income and Employment 1. What is the relationship between APC and APS? 2. What is the relationship between MPC and MPS? 3. If the Average Propensity to Consume is 0.75, how much will be the Average Propensity to Save? 4. If the value of multiplier is 4, what will be the effect on income of an economy if investment increases by Rs.100 crores? 5. Explain the components of the equation: C= a +by. 6. Derive the saving function from the consumption function : C= a+by 7. Explain the components of S = -a + (1-b)Y. 8. Distinguish between Average Propensity to Consume and Marginal Propensity to Consume. The value of which of these two can be greater than one and when? 9. Give meanings of : (i) Involuntary unemployment, (ii) Full employment, and (iii) Voluntary unemployment 10. Show with the help of saving and investment curves, the determination of equilibrium level of income.

9 11. Explain determination of National Income based on Aggregate Demand and Aggregate Supply. Use diagram. 12. In an economy, planned savings exceed planned investment. How will equality between the two be achieved? Explain. 13. Calculate the amount of new investment when (i) Size of multiplier =2.5 and (ii) increase in income = Rs Given increase in investment of Rs.100 crores, and Marginal Propensity to Consume equal to 0.8, find out increase in National Income. 15. A Rs. 200 crore increase in investment leads to a rise in national income by Rs.1,000 crores. Find out Marginal Propensity to Consume. 16. From the data given, find out whether the economy is in equilibrium or not? Give reasons for your answer. Autonomous Investment = Rs. 10 crores C = Y Y = Rs. 200 crores 17. Give that MPC = 0.8 and investment at all levels of income is Rs. 40 crores, complete the following table : Income Consumption Saving Investment AD AS If the savings out of an income of Rs.5,000 are Rs.500, what is the Average Propensity to Save? 19. When disposable income rises from Rs.1,000 to Rs.1,100, savings rise by Rs.30. Find out Marginal Propensity to Save and Marginal Propensity to Consume.

10 20. In a two sector economy, the saving and investment functions are: S= Y I = Y What will be the equilibrium level of income? In an economy, the actual level of income is Rs. 500 crores, whereas the full employment level of income is Rs.800 crores. The MPC is Calculate the increase in investment required to achieve full employment income. UNIT VIII- Govt. Budget and the Economy 1. Distinguish between Revenue expenditure and capital expenditure, 2. Distinguish between Revenue receipts and Capital receipts 3. What is a govt. budget? How is it maintain redistribution of income and wealth 4. Define tax. Distinguish between direct tax and indirect tax. 5. Explain the components of non tax revenue of govt. 6. Distinguish between Revenue deficit, Fiscal deficit and Primary deficit 7. Explain how allocation of resources are done by govt. budget 8. Discuss various components of capital receipts of govt. UNIT IX- BALANCE OF PAYMENT 9. Differentiate between BOT and BOP 10. Distinguish between Visible items and invisible items of BOP account 11. Distinguish between accommodating items and autonomous items 12. Differentiate between current account and capital account of BOP 13. State 4 situations for demand and supply of foreign currency by domestic country 14. Why the demand for foreign currency is less when its rate is high? 15. What are the 2 different methods of determining exchange rate? 16. Explain determination of exchange rate in a free/ flexible exchange market 17. What are the merits and demerits of fixed exchange rate? 18. Explain the components of capital account of BOP 19. The supply of foreign exchange is directly related to the rate of foreign exchange. Comment. 20. What are the various sources of supply of foreign currency. Prepared by Pareed Ummer XI XII BOYS SECTION

WORKSHEET. 1. Define micro economics. (1) 2. What do you mean by scarcity of resources? (1) 3. Define MRT. (1) 4. Define opportunity cost.

WORKSHEET. 1. Define micro economics. (1) 2. What do you mean by scarcity of resources? (1) 3. Define MRT. (1) 4. Define opportunity cost. Marks : 30 WORKSHEET 1. Define micro economics. (1) 2. What do you mean by scarcity of resources? (1) 3. Define MRT. (1) 4. Define opportunity cost. (1) 5. Define PPF. (1) 1 [XII Economics] 6. Explain