Economics Class - XII 1998 (CBSE)
You are on questions 19 to 35 of Set I

SECTION B

Q 19 Define normal profits. (1mark)


Q 20 When will the transfer earnings of a factor of production be zero?
(1 mark)


Q 21 Define marginal revenue. (1 mark)



Q 22 What is meant by involuntary unemployment? (1 mark)


Q 23 Explain the problem of full utilisation of resources in an economy.
(2 marks)


Q 24 How is the supply of a commodity affected by the prices of other commodities. (2 marks)


Q 25 State the economic problems relating to the allocation of resources.
(3 marks)


Q 26 How do changes in the income of the buyer of a commodity affect his demand for that commodity. (1+2 marks)


Q 27 The Coefficient of price elasticity of demand of a commodity is 0.5. When its price is Rs. 10 per unit, its quantity demanded is 40 units. If the price falls to Rs. 5 per unit, how much will be its quantity demanded?

Price Quantity

Initial 10 40
Later 5 x. (2+1 marks)


Q 28 Changes in both demand and supply may or may not affect its equilibrium price. Explain. (3 marks)


Q 29 Explain the relationship between marginal cost and average variable cost with the hlep of a diagram. (3 marks)


Q 30 How do changes in maeginal revenue affect total revenue? (2+1 marks)


Q 31 Define monopolistic competition. Can a seller in such a market influence the price? Explain. ( 2+1 marks)


Q 32 What affects the demand for a factor of production by a firm under conditions of perfect competition? (3 marks)


Q 33 State and explain the law of variable proportion with the help of a diagram. (3 marks)


Q 34. Briefly explain the main features of Ricardian theory of rent. How is the modern approach to rent different from it? (2+3 marks)


Q 35. Explain the various monetary measures by which excess demand in an economy can be checked. (4+1 marks)