Assignment

Sub.:- Economics Class:- 12th(D)

Q.1. (A) Complete the following statements:
1. The branch of economics that deals with the allocation of resources is known as _______.
(a) Micro economics (b) Macro economics (c) Econometrics (d) Agricultural economics
2. Net addition made to the total revenue by selling an extra unit of a commodity is _______.
(a) total revenue (b) marginal revenue (c) average revenue (d) marginal cost
3. Symbolically, the functional relationship between Demand and Price can be expressed as _______.
(a) Dx = f(Px) (b) Dx = f(Pz) (c) Dx = f(y) (d) Dx = f(T)
4. In India, National Income Committee establishment year is _______.
(a) 1952 (b) 1949 (c) 1947 (d) 1950
5. Marginal Utility of the commodity becomes negative when Total Utility of a commodity is _______.
(a) rising (b) constant (c) falling (d) zero
6. Micro Economics is also called as _______.
(a) Income theory (b) Price theory (c) Growth theory (d) Employment theory
7. Money market faces shortage of funds due to _______. (a) Inadequate savings
(b) Growing demand for cash (c) Unorganized sector (d) Financial mismanagement
8. Public expenditure of any government shows _______.
(a) constant trend (b) increasing trend (c) decreasing trend (d) fluctuating demand
9. The relationship between income and demand for inferior goods is _______.
(a) direct (b) inverse (c) no effect (d) can be direct and inverse
10. Whole Economy is studied in _______.
(a) Micro Economics (b) Macro Economics (c) Econometrics (d) Natural Sciences
11. When percentage change in quantity demanded is less than percentage change in price, the demand
curve is _______. (a) Flatter (b) Steeper (c) Rectangular hyperbola (d) Horizontal
12. The cost incurred by the firm to promote sales _______.
(a) Total cost (b) Average cost (c) Marginal cost (d) Selling cost
13. Budget that consists of revenue receipts and revenue expenditure _______.
(a) Capital budget (b) Government budget (c) Revenue budget (d) Family budget
14. Purchase of goods and services from one country and selling them to another country is _______.
(a) Entrepot trade (b) Import trade (c) Export trade (d) National trade

Q.2. (A) Choose the correct option:

1. The branch of economics that deals with the allocation of resources: (a) Micro economics (b) Macro
economics (c) Econometrics (d) Monetary economics
Options: (1) a, b, c (2) a, b (3) only ‘a’ (4) None of these
2. Classification of markets is done on the basis of place: (a) Local market, National market, International
market (b) Very short period market, Local market, National market (c) Short period market, National
market, International market (d) Local market, National market, Short period market
Options: (1) a, b, c (2) b, c, d (3) Only ‘a’ (4) a, d
3. Statements that are incorrect in relation to index numbers: (a) Index number is a geographical tool. (b)
Index numbers measure changes in the air pressure. (c) Index numbers measure relative changes in an
economic variable. (d) Index numbers are specialized averages.
Options: (1) c, d (2) a, b (3) b, c (4) a, b, c ,d
4. Non-tax sources of revenue: (a) Direct and indirect taxes (b) Direct tax and fees (c) Fees (d) Special levy
Options: (1) b, c (2) a, c (3) a, b, c, d (4) c, d
5. Methods of quantitative credit control: (a) Bank rate (b) Open market operation (c) Cash reserve ratio
(d) Credit rationing Options: (1) a, b, c (2) b, c, d (3) a, b, d (4) a, c, d
6. Two or more goods demanded jointly to satisfy a single want. (a) Direct (b) Indirect
(c) Joint/ Complementary (d) Composite demand Options (1) a, d (2) a, b, c (3) a, c (4) only ‘c’
7. Homogeneous product is a feature of this market. (a) Monopoly (b) Monopolistic competition (c) Perfect
competition (d) Oligopoly options: (1) only ‘c’ (2) a, b, c (3) a, b, d (4) c, d
8. Economist who is of the view that public finance is one of those subjects which are on the borderline
between economics and politics. (a) Adam Smith (b) Alfred Marshall (c) Prof. Hugh Dalton (d) Prof.
Findlay Shirras options: (1) only ‘a’ (2) only ‘b’ (3) only ‘c’ (4) only ‘d’
9. Role of foreign trade. (a) To earn foreign exchange. (b) To encourage investment. (c) Leads to division
of labour. (d) Brings change in composition of exports. options :(1) a, b, c (2) a, b, c, d (3) a, b, d (4)
None of these
10. Method adopted in micro economics analysis. i. Lumping method ii. Aggregative method iii. Slicing
method iv. Inclusive method options :(a) i, iii, iv (b) ii, iii, iv (c) Only iii (d) Only i
11. Factors which are working in unorganised money market. i. Money lenders ii. Commercial bank iii.
Hundi iv. Chit funds options (a) i, ii, iii (b) ii, iii (c) ii, iv (d) i, iii, iv
12. Optional functions of Government. i. Protection from external attack ii. Provision of education and
health services iii. Provision of social security measures iv. Collection of tax
options (a) ii, iii (b) i, ii, iii (c) ii, iii, iv (d) All of the above
13. Statements that highlight the significance of index numbers. i. Index numbers are useful for making
future predictions. ii. Index numbers help in the measurement of inflation. iii. Index numbers help to
frame suitable policies. iv. Index numbers can be misused.
options (a) ii, iii, iv (b) i, ii, iii (c) i, ii, iv (d) i, iii, iv
14. Blood bank is an example of ______. i. Place utility ii. Knowledge utility iii. Service utility iv. Time
utility options (a) i, ii, iii (b) ii, iii, iv (c) i, ii, iv (d) Only iv

Que.3 Give economic term:

1. The cost incurred by the firm to promote sales.
2. The tax which is paid by the taxpayer on his income and property.
3. The capacity of a commodity to satisfy human wants.
4. Wear and tear of capital assets, due to their use in the process of production.
5. A desire which is backed by willingness to purchase and ability to pay.
6. The volume of commodities and services turned out during a given period counted without duplication.
7. Degree of responsiveness of a change of quantity demanded of a good to a change in its price.
8. Very realistic competition in nature.
9. Swati purchased raincoat for her father in rainy season.
10. Additional utility derived by a consumer from an additional unit consumed.
11. Price being constant, demand falls due to unfavorable change in other factors.
12. Revenue per unit of output sold.
13. Period in which all factors of production are variable.
14. The gross market value of all final goods and services produced within the domestic territory of a
country during a period of a year.
15. Utility of a commodity increases with a change in its time of utilization.
16. The demand for a commodity which can be put to several uses.
17. The market where there are a few sellers.
18. Financial statement showing the expected receipts and proposed expenditure of the government in the
coming financial year.
19. Deposits withdrawable on demand.
20. More quantity is demanded due to changes in the favourable factors determining demand other than
price.
21. Charging different prices to different consumers for the same product or services.
22. Net addition made to total cost by producing one more unit of output.
23. Degree of responsiveness of quantity demanded to change in income only.

Que.4 Complete the correlation:

1. Pen and ink:____________ : : Tea and coffee : substitute goods
2. Micro economics: Tree : : Macro economics : . ___________
3. ______________: Base year prices : : P1 : Current year prices
4. Demand curve :_______________ : : Supply curve : Upward
5. Theoretical difficulty : Transfer payments : : : Valuation of inventories.
6. Price and demand for normal good : Inverse relationship : : Giffen goods : __________
7. Perfect competition :___________ : : Monopoly : Single seller
8. Total revenue :_______________ : : Average revenue : Total Revenue /Total Quantity
9. Output method :____________ : : Income method : Factor cost method
10. Macro Economics : : : Micro Economics : Price theory
11. Direct demand : Food and Mobiles : : : Land and Labour.
12. Perfectly elastic demand : Ed =  : :________________: Ed = 1.
13. Output method : Product method : :____________ : Factor cost method.
14. Personal income tax :__________ : : Goods and service tax (GST) : Indirect tax.
15. Micro Economics : Tree : : Macro Economics :
16. Single consumer : Individual demand : : Many consumers :
17. ______________: Downward sloping curve : : Supply curve : Upward sloping curve.
18. Price index : Inflation : :______________ : Agricultural production.
19. ____________: Central bank : : State Bank of India : Commercial bank.
20. General equilibrium : Macro Economics : : __________________: Micro Economics.
21. Form utility : Furniture : : _______________: Doctor
22. Perfectly elastic demand : Ed =  : :_______________ : Ed = 0
23. ____________ : Change in supply : : Other factors constant : Variation of supply.

Que.5 Find the odd word out:

1. Types of Elasticity of Demand: Income elasticity, Unitary elasticity, Cross elasticity, Price elasticity.
2. Factors of production: Profit, Labour, Capital, Entrepreneur.
3. Market structure on the basis of competition: Perfect competition, Monopoly, Oligopoly, Very short
period market.
4. Types of Bank Accounts: Saving account, D-mat account, Recurring account, Current account.
5. Classification of Public Expenditure: Revenue expenditure, Capital expenditure, Consumption
expenditure, Developmental expenditure.
6. Revenue concepts: Total Revenue, Average Revenue, Total Cost, Marginal Revenue.
7. Quantitative Tools of credit control: Bank rate, Open market operations, Foreign Exchange rate, Variable
reserve ratio.
8. Scope of Micro Economics: Theory of product pricing, Theory of factor pricing, Theory of Economic
growth and Development, Theory of Economic welfare.
9. Non-tax revenue: Fees, Penalty, Wealth tax, Special levy.
10. Types of Simple Index Number: Laspeyre’s Price Index Number, Price Index Number, Quantity Index
Number, Value Index Number.
11. External debt - Foreign banks, World bank, International monetary fund, Central bank.
12. Organised sector - Money lender, Commercial bank, Co-operative Bank, Reserve Bank of India.
13. Transfer income - Pension, unemployment allowance, wages, gifts.
14. Types of foreign trade - Local trade, Import trade, Export trade, Entrepot trade.
15. Types of demand : Direct demand, Indirect demand, Composite demand, Market demand.
16. Features of National Income : Financial year, Money value, Static concept, Flow concept.
17. Types of budget : Deficit budget, Zero budget, Balanced budget, Surplus budget.
18. Legal monopoly : Patent, OPEC, Copyright, Trade mark.
19. Financial Assets : Bonds, Land, Govt. Securities, Derivatives.

Que. 6 Assertion and reasoning questions:

1. Assertion (A): In perfect competition, price is determined by the forces of demand and supply.
Reasoning (R): The number of buyers and sellers is so large that one person can not influences prices.
Options: 1. (A) is true, but (R) is false. 2. (A) is false, but (R) is true.
3. Both (A) and (R) are True and (R) is the correct explanation of (A).
4. Both (A) and (R) are True and (R) is not the correct explanation of (A).
2. Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other
commodity is cross elasticity.
Reasoning (R): Changes in consumers’ income leads to a change in the quantity demanded.
Options: 1. (A) is true, but (R) is false. 2. (A) is false, but (R) is true.
3. Both (A) and (R) are True and (R) is the correct explanation of (A).
4. Both (A) and (R) are True and (R) is not the correct explanation of (A).
3. Assertion (A): Production for self-consumption is not accounted for in the national income.
 Reasoning (R): The products kept for self consumption do not enter the market. Options: 1. (A) is true,
but (R) is false. 2. (A) is false, but (R) is true.
3. Both (A) and (R) are True and (R) is the correct explanation of (A).
4. Both (A) and (R) are True and (R) is not the correct explanation of (A).
4. Assertion (A): Foreign exchange management and control is undertaken by commercial banks.
Reasoning (R): RBI has to maintain the official rate of exchange of rupee and ensure its stability.
Options: 1. (A) is true, but (R) is false. 2. (A) is false, but (R) is true.
3. Both (A) and (R) are True and (R) is the correct explanation of (A).
4. Both (A) and (R) are True and (R) is not the correct explanation of (A).
5. Assertion (A): Supply is a relative term.
Reasoning (R): Supply is always expressed in relation to price, time and quantity. Options: 1. (A) is
true, but (R) is false. 2. (A) is false, but (R) is true. 3. Both (A) and (R) are True and (R)
is the correct explanation of (A).
4. Both (A) and (R) are True and (R) is not the correct explanation of (A).
6. Assertion (A): Marginal utility (MU) goes on diminishing.
Reasoning (R): Total utility (TU) increases at diminishing rate.
Options: (1) (A) is true but (R) is false. (2) (A) is false but (R) is true.
(3) Both statements A and R are true and R is the correct explanation of A.
(4) Both statements A and R are true and R is not the correct explanation of A.
7. Assertion (A): With rising price, supply of commodity falls.
Reasoning (R): Seller earns more profit at higher price.
Options: 1. (A) is true but (R) is false. 2.(A) is false but (R) is true.
3. Both statements A and R are true and R is the correct explanation of A.
4. Both statements A and R are true and R is not the correct explanation of A.
8. Assertion (A): Index number considers all factors.
Reasoning (R): Index number is based on samples.
Options: 1. (A) is true but (R) is false. 2.(A) is false but (R) is true.
3. Both statements A and R are true and R is the correct explanation of A.
4. Both statements A and R are true and R is not the correct explanation of A.
9. Assertion (A): Money market economises use of cash.
Reasoning (R): Money market does not deal with financial instruments that are close substitutes of
money.
Options: 1. (A) is true but (R) is false. [Link] (A) is false but (R) is true.
[Link] statements A and R are true and R is the correct explanation of A.
[Link] statements A and R are true and R is not the correct explanation of A.
10. Assertion (A): International trade leads to division of labour and specialisation. Reasoning (R): India’s
national trade is not increasing.
Options: 1. (A) is true but (R) is false. 2. (A) is false but (R) is true.
[Link] the statements A and R are true and R is the correct explanation of A.
[Link] the statements A and R are true and R is not the correct explanation of A.

Que.7. Identify and explain the following concepts

1. Savita collected the information about individual income in a particular firm.
2. India purchased petroleum from Iran.
3. Prakash receives monthly pension of ` 15,000/- from the State Government.
4. Price of salt increases by ` 20 to ` 50, still there is no change in demand for salt.
5. Meena deposited a lumpsum amount of ` 1,50,000 in the bank, for a period of one year.
6. A table seller sold the table for ` 2,000 per piece. In this way he sold 15 tables and earned ` 30,000.
7. England imported cotton from India, made readymade garments from it and sold them to Malaysia.
8. Ashok paid the tax on his income and property.
9. Raju’s father invests his money in a market for long term funds both equity and debt raised within and
outside the country.
10. A poor person wants to buy a car.
11. Salma purchased sweater for her father in winter season.
12. Sanket’s demand for consumer goods increased by 20% due to an increase in his income by 50%.
13. John produces 5 units of mobile in his factory at ₹ 50,000. When he produced the 6th unit of mobile total
cost was ₹ 58,000.
14. Samir paid wages to workers in his factory and interest on his bank loan.
15. Ramesh’s demand for salt remained unchanged inspite of a 10% rise in its price.
16. Out of 4000 kgs of rice the farmer offered to sale 1000 kgs of rice in the market at ` 40 per kg.
17. Shobha collected data regarding the money value of all final goods and services produced in the country
for the financial year 2019-20.
18. Madhav collected information about monthly expenditure of a family.
19. Pooja satisfied her need of writing an essay by using pen and notebook.
20. There are many firms producing soaps in India.
21. Ramesh prepared share price index number.
22. Fall in price of sugar by 50% results in 50% rise in demand.
23. Due to mandatory use of masks during corona epidemic the demand for mask producing labour has
increased.
24. Maharashtra purchased wheat from Punjab.

Que. 8 Distinguish between

1. Micro Economics and Macro Economics
2. Expansion of demand and Contraction of demand
3. Gross Domestic Product (GDP) and Gross National Product (GNP)
4. Public Finance and Private Finance
5. Simple Index Number and Weighted Index Number
6. Unitary elastic demand and Relatively elastic demand
7. Output method of measuring national income and Income method of measuring national income
8. Demand deposit and Time deposit
9. Stock and Supply
10. Individual demand and Market demand.
11. Slicing method and Lumping method.
12. Direct tax and Indirect tax.
13. Joint/complementary demand and competitive demand.
14. Total revenue and marginal revenue.
15. Price Index Number and Quantity Index Number.
16. Internal debt and External debt.
17. Form Utility and Knowledge Utility.
18. Perfect competition and Monopolistic competition.
19. Partial equilibrium and General equilibrium.
20. Perfectly elastic demand and Perfectly inelastic demand.
21. Recurring deposits and Fixed deposits.
22. Total utility and Marginal utility.

Que.9. Answer the following

1. Explain any four features of Micro economics.
2. Explain any four types of Utility.
3. Explain the meaning of budget with its types.
4. Explain any four factors influencing elasticity of demand.
5. Explain any four points of importance of Micro economics.
6. Explain the Ratio or percentage method of measuring price elasticity of demand.
7. Explain any four features of national income.
8. Explain any four problems faced by the money market in India.
9. Explain any four exceptions of the law of Diminishing marginal utility.
10. Explain any four points related to the significance of index number.
11. Explain any four features of monopoly.
12. Explain any four points related to the role of money market in India.
13. Explain any four points related to the role of foreign trade.
14. Explain the scope of macro economics.
15. Explain any four features of monopoly.
16. Elaborate any four features of utility.
17. Write any four practical difficulties in national income estimation.
18. Explain any four features of perfect competition.
19. Explain any four sources of non-tax revenue of the government.
20. Explain the function of acceptance of deposits of commercial bank.
21. Explain any four types of demand.
22. Explain any four problems of capital market in India.
23. Explain any four reasons for the growth of public expenditure.
24. Explain any four features of macro economics.
25. Calculate Quantity Index Number from the given data:

Que.10 State with reasons whether you agree or disagree with the following statements
1. The Law of diminishing marginal utility is based on many assumptions.
2. Index numbers are free from limitations.
3. Supply curve slopes downwards from left to right.
4. Foreign trade plays an important role in economic development of country.
5. Fees, fines and penalties are a major source of revenue for the Government.
6. There are no exceptions to the law of supply.
7. Index numbers are very significant / important in economics.
8. There are no theoretical difficulties in the measurement of National Income.
9. Macro economics is different from Micro economics.
10. Every desire of an individual is a demand.
11. There is a direct relationship between price and quantity supplied.
12. Commercial bank performs various functions.
13. Slope of relatively elastic demand curve is steeper.
14. There are no exceptions to the law of diminishing marginal utility.
15. Price under perfect competition is decided by the interaction between demand and supply.
16. Capital market plays an important role in India.
17. The scope of Macro Economics is unlimited.
18. Price Index number is the only type of Index number.
19. Reserve Bank of India performs various functions.
20. Obligatory function is the only function of the government.
21. Price maker is the only feature of monopoly market.
22. There are many sources of non-tax revenue.

Que.11 Study the following table, figure, passage and answer the questions given below it
1. Observe the following table and answer the questions given below it:

Questions: 1. Write the formula for calculation of price index.

2. Find the value of P0 and P1.
3. Find the price index P01.
 2. Observe the given diagram and answer the following questions:

a. Rightward shift in demand curve _______

b. Leftward shift in demand curve _______
c. Price remains _______
d. Increase and decrease in demand comes under _______

3. Observe the following table and answer the questions given below it:

Questions: (1). Complete the above table.

(2). a. When total utility is Maximum, the marginal utility is _______
b. When total utility falls, the marginal utility becomes __________

4. In the following diagram AE is the linear demand curve of a commodity. On the basis of the
given diagram state whether the following statements are True or False:

1. Demand at point ‘C’ is relatively elastic demand.

2. Demand at point ‘B’ is unitary elastic demand.
3. Demand at point ‘D’ is perfectly inelastic demand.
4. Demand at point ‘A’ is perfectly elastic demand.
5.
 6. Following diagram is a linear demand curve. On the basis of the given diagram answer the
following questions:

7.

8. Identify the price elasticity of demand from the following diagrams:

 9.

10. Observe the given diagram and answer the following questions:

11. Observe the following table and answer the questions given below it:
12.

Que.12. Answer the following questions in detail

1. State and explain the law of demand with exceptions.
2. Explain the functions of Reserve Bank of India.
3. Explain the meaning of perfect competition with its features.
4. Explain the meaning of Monopoly with its features.
5. Explain various reasons for the growth of public expenditure.
6. State and explain the law of diminishing marginal utility with exceptions.
7. Explain the concept of National income and explain the features of National Income.
8. Explain the concepts of variation and changes in demand with the help of diagrams.
9. Explain various sources of public revenue.
10. Explain the Law of Demand with its assumptions.
11. Explain the concept of price elasticity of demand and its types.
12. Explain the concept of National income and explain the practical difficulties involved in the
measurement of National income.
13. State and explain the law of supply with assumptions.