Economic - Choithram School

CHOITHRAM SCHOOL MANIKBAGH INDORE
Summer Assignment 2015-16
ECONOMICS ( XII)
S. No.
Content of the Question
1
Which of the following illustrates a decrease in unemployment using thePPC?
1. A movement down along the PPC.
2. A rightward shift in PPC.
3.A movement from a point on the PPC to a point inside PPC.
4. A movement from a point inside a PPC to a point on the PPC.
2
The central problem what to produce? Relates to the
1. Distribution of National income among different national inputs.
2. Choice between labor intensive & capital intensive techniques of production.
3. Choice between land & technology to add to the production capacity in the economy.
4. Problem of resource allocation between different alternative uses.
3
Economic resources are considered to be scarce because they
1. Cannot be increased in the quantity.
2.Do not exist in adequate quantity to satisfy social requirements.
3. Are of primary importance in satisfying social requirements.
4.Are limited to man made goods.
Negative utility means that
1. Consumer does not expect to get any satisfaction from the consumption of this unit.
2. The consumer expects to get some lower level of satisfaction from the consumption of this unit.
3. The consumer will consume this unit of commodity only if he has not to pay any price for this
commodity.
4. The consumer would not like to consume this unit of commodity even if he has not to pay any
price for this commodity.
Point of satiety is referred to a situation in which
1. The TU is rising
2. The TU is falling
3.The MU is zero
4. The MU is negative
Two indifference curves cannot cut each other because
1. They slope downwards.
2. They are convex towards origin.
3. They represent those combinations of two goods that give the same level of satisfaction.
4. Each indifference curve represents a different level of satisfaction.
What results in contraction of demand?
Write a factor which will not cause a decrease in demand?
A lot of people die & many factories are destroyed because of severe earthquake in a country. How
will it affect the country’s PPC?
Giving reasons, state whether following statements are true or false.
1. An economy always manages to meet all the needs of people living in the country.
2. In the context of economy when we talk about scarcity, we refer to short supply of money.
3. A PPF is always represented as a downward sloping curve.
4. Government should rise taxes on industries that causes pollution.
“Massive introduction of technology shifts PPC it right. Giving reasons defend or refute.
Calculate MOC from the information given below.
Combination
Consumer goods
Capital goods
A
0
25
B
1
23
C
2
20
D
3
15
E
4
9
F
5
0
How many units of commodities will you consume if you are not to payany price for the
commodity?
You have to consume only one commodity. How many units of this commodity will you purchase
if you have to pay a price for the same?
How does the budget line change if the price of good 2 decreases by a rupee but the price of good
4
5
6
7
8
9
10
11
12
13
14
15
Page 1 of 2
16
17
18
19
20
1 & consumer’s equilibrium remains same.
Giving reasons state why the following two conditions must be satisfied when a consumer is in
equilibrium?
1. A budget line must be tangent to an indifference curve.
2. MRS must be diminishing.
Determine how the following changes or shifts will affect market demand curve for a product?
1. A new steel plant comes in Mysore. Many people who were previously unemployed in the area
are now employed. How will this affect the demand curve for color TVs & black & white TVs in
the region?
2. In order to encourage tourism in Kanyakumari, the Air India reduces the air fare to
kanyakumari. How will this affect the market demand curve for air travel to Kanyakumari?
3. There are train & air services between Delhi &Bangalore. Suppose the airfares between the two
destinations comes down. How will this affect the demand curve for the train travel between Delhi
&Bangalore]?
Substitute products A & B are produced by different firms. Give a reason why a change in the
price of product A will bring about the change in the quantity demanded of product B?
State the impact of following on the demand curve of a commodity.
1. Increase in individual income.
2. A rise in the price of the commodity.
3. Increase in the supply of substitute goods.
4. Increase in the price of complimentary goods
Explain Law of demand.
Page 2 of 2