(1) Substitution Effect
EMMANUEL SR. SEC. SCHOOL, TONK (2) Law of diminishing Marginal Utility (4)
SUB – ECONOMICS CLASS - XII 7. (a) What is a budget line? What does the point on it indicate in terms of
Time – 1-1/2 Hours. Maximum marks – prices?
(b) A consumer consumes only two goods X and Y. Her money income
25
is Rs 24 and the prices of Goods X and Y are Rs 4 and Rs 2
1. What causes an upward movement along a demand curve of a
respectively. Answer the following questions:
commodity? (1)
(i) Can the consumer afford a bundle 4X and 5Y? Explain
2. Name the good in which negative income effect is higher than
(ii) What will be the MRSXY when the consumer is in equilibrium?
substitution effect? (1)
Explain. (4)
3. Distinguish between Microeconomics and Macroeconomics. (3)
8. Explain the following:
4. Explain the effect of a rise in the prices of ‘related goods’ on the
(a) Why is an indifference curve convex to the origin?
demand for a good. (3)
(b) Why does a higher indifference curve represent a higher level of
5. Explain the central problem of distribution in an economy.
satisfaction? (6)
(3)
6. Explain the inverse relationship between the price of a commodity and
its demand with the help of following points:
(1) Substitution Effect EMMANUEL SR. SEC. SCHOOL, TONK
(2) Law of diminishing Marginal Utility (4) SUB – ECONOMICS CLASS - XII
7. (a) What is a budget line? What does the point on it indicate in terms of Time – 1-1/2 Hours. Maximum marks –
prices? 25
(b) A consumer consumes only two goods X and Y. Her money income 1. What causes an upward movement along a demand curve of a
is Rs 24 and the prices of Goods X and Y are Rs 4 and Rs 2 commodity? (1)
respectively. Answer the following questions: 2. Name the good in which negative income effect is higher than
(i) Can the consumer afford a bundle 4X and 5Y? Explain substitution effect? (1)
(ii) What will be the MRSXY when the consumer is in equilibrium? 3. Distinguish between Microeconomics and Macroeconomics. (3)
Explain. (4) 4. Explain the effect of a rise in the prices of ‘related goods’ on the
8. Explain the following: demand for a good. (3)
(a) Why is an indifference curve convex to the origin? 5. Explain the central problem of distribution in an economy.
(b) Why does a higher indifference curve represent a higher level of (3)
satisfaction? (6) 6. Explain the inverse relationship between the price of a commodity and
its demand with the help of following points:
(1) Substitution Effect
(2) Law of diminishing Marginal Utility (4)
EMMANUEL SR. SEC. SCHOOL, TONK 7. (a) What is a budget line? What does the point on it indicate in terms of
SUB – ECONOMICS CLASS - XII prices?
Time – 1-1/2 Hours. Maximum marks – (b) A consumer consumes only two goods X and Y. Her money income
25 is Rs 24 and the prices of Goods X and Y are Rs 4 and Rs 2
1. What causes an upward movement along a demand curve of a respectively. Answer the following questions:
commodity? (1) (i) Can the consumer afford a bundle 4X and 5Y? Explain
2. Name the good in which negative income effect is higher than (ii) What will be the MRSXY when the consumer is in equilibrium?
substitution effect? (1) Explain. (4)
3. Distinguish between Microeconomics and Macroeconomics. (3) 8. Explain the following:
4. Explain the effect of a rise in the prices of ‘related goods’ on the (a) Why is an indifference curve convex to the origin?
demand for a good. (3) (b) Why does a higher indifference curve represent a higher level of
5. Explain the central problem of distribution in an economy. satisfaction? (6)
(3)
6. Explain the inverse relationship between the price of a commodity and
its demand with the help of following points:
EMMANUEL SR. SEC. SCHOOL, TONK
SUB – ECONOMICS CLASS - XII
Time – 1-1/2 Hours. Maximum marks –
25
1. What causes an upward movement along a demand curve of a
commodity? (1)
2. Name the good in which negative income effect is higher than
substitution effect? (1)
3. Distinguish between Microeconomics and Macroeconomics. (3)
4. Explain the effect of a rise in the prices of ‘related goods’ on the
demand for a good. (3)
5. Explain the central problem of distribution in an economy.
(3)
6. Explain the inverse relationship between the price of a commodity and
its demand with the help of following points:
(1) Substitution Effect
(2) Law of diminishing Marginal Utility (4)
7. (a) What is a budget line? What does the point on it indicate in terms of
prices?
(b) A consumer consumes only two goods X and Y. Her money income
is Rs 24 and the prices of Goods X and Y are Rs 4 and Rs 2
respectively. Answer the following questions:
(i) Can the consumer afford a bundle 4X and 5Y? Explain
(ii) What will be the MRSXY when the consumer is in equilibrium?
Explain. (4)
8. Explain the following:
(a) Why is an indifference curve convex to the origin?
(b) Why does a higher indifference curve represent a higher level of
satisfaction? (6)