ADARSHA PU COLLEGE (AN-0178)
R.T.NAGAR, BENGALURU-560032
II PUC Sub: Economics (22)
Important questions to practice.
Four Marks
1. Write about the centrally planned economy.
2. What are the three central problems of an economy? Explain.
3. How does market economy works?
4. Write the difference between total utility and marginal utility.
5. List out the difference between normal goods and inferior goods with
examples.
6. Briefly explain the budget set with help of a diagram.
7. Consider a market where there are two consumers and their demand for the
goods at different price level is given as follows: Calculate the market demand
for the good.
P D1 D2 Market
Demand
1 9 24
2 8 20
3 7 18
4 6 16
5 5 14
6 4 12
7 3 10
8 2 8
8. Explain Iso-quant with the help of the diagram.
9. The following table gives the total product (TPL) schedule of labour. Find the
corresponding average product (APL) and marginal product (MPL) of labour.
L 0 1 2 3 4 5
TPL 0 15 35 50 60 68
10. Write about returns to scale.
11. The following table gives the TVC schedule of a firm. TFC is Rs.10. Find out
AFC and AVC.
Q 0 1 2 3 4 5
TVC 0 15 26 33 40 55
12. Explain the features of perfect competition.
13. The following table shows the total revenue and total cost schedule of a
competitive firm. Calculate the profit at each output level and determine the
market price of the good.
Quantity TR TC Profit Market
sold (q) (Rs.) (RS.) price
0 0 5
1 5 7
2 10 10
Dr.Harish.N. Ph.D, Lecturer in Economics, Adarsha PU College, R.T.Nagar, Bengaluru-32. M: 9480196752
3 15 12
4 20 15
5 25 23
6 30 33
7 35 40
14. Explain the determinants of a firm’s supply curve.
15. Write a table to show the impact of simultaneous shifts in demand and supply
on equilibrium.
16. What is price ceiling? Explain with a diagram.
17. Discuss the concept of price floor with the help of a diagram.
18. Briefly explain in what way macro economics is different from micro
economics.
19. Discuss emergence of macroeconomics.
20. Write about the concept of final good.
21. Illustrate the circular flow of income of an economy with the help of chart.
22. Write about externalities,
23. Calculate the aggregate value of depreciation by using the following date.
Particulars Values
(Rs. In Crores)
GDP at market price 1100
Net Factor Income from Abroad 100
Net Indirect taxes 150
National Income 850
24. Money acts as s convenient unit of account. Explain this statement with
examples.
25. Briefly explain the functions of Reserve Bank of India.
26. Write about the functions of commercial banks.
27. Write about the legal definitions of money.
28. Explain consumption function with diagram.
29. C=50+0.8Y and I=200 is the information given about a closed economy.
a) Calculate the equilibrium level of income.
b) Suppose I increase by 250, find out the new equilibrium income
30. Write the chart of the Government budget.
31. Explain the three linkages of open economy.
32. Explain the concept of Balance of trade.
33. Current account and capital account chart of balance of payments.
Six Marks
1. Explain the law of diminishing marginal utility with the help of table and diagram.
2. Illustrate the features of indifference curve with diagram.
3. Present the market demand with the help of diagrams.
4. Explain the optimal choice of consumer with the help of diagram.
5. The following table gives the average product schedule of labour (APL). Find the total
product (TPL) and marginal product (MPL) schedule of Labour.
L 1 2 3 4 5 6
APL 2 3 4 5 4 3
Dr.Harish.N. Ph.D, Lecturer in Economics, Adarsha PU College, R.T.Nagar, Bengaluru-32. M: 9480196752
6. Explain various short run costs.
7. A firm’s SMC schedule is shown in the following table. TFC is Rs.100. Find out TVC,
TC, AVC and SAC schedule of the firm.
Q 0 1 2 3 4 5 6
SMC -- 500 300 200 300 500 800
8. Analyse the short run supply curve of a firm with the help of a diagram.
9. Explain the profit maximization of a firm under the following conditions.
a) P = MC b) MC must be non-decreasing at q0
10. Suppose the demand and supply curves of wheat are given by qD = 250 - P and
qS = 150 + P.
a) Find the equilibrium price.
b) Find the equilibrium quantity of demand and supply.
c) Find the new quantity of demand and supply when the price is greater than equilibrium
price.
d) Find the new quantity of demand and supply when the price is less than equilibrium
price.
11. Explain the simultaneous shifts of demand and supply curve in perfect competition with
the help of diagrams.
12. Explain the Macroeconomic identities.
13. Explain the limitations of using GDP as an index of welfare of a country.
14. Suppose the GDPMP of a country in a particular year was Rs.3,000 crores. Net Factor
Income from Abroad (NFIA) was Rs. 500 crores. The depreciation was Rs. 450 crores
and the value of Net Indirect taxes (NIT) was Rs. 300 crores. Complete the following
table.
Identities Values
(Rs. In crores)
GDPMP 3000
GDPFC
NDPMP
NDPFC
GNPMP
GNPFC
NNPMP
15. Suppose the GDPMP of a country in a particular year was Rs. 1000 crores. Net Factor
Income from Abroad (NFIA) was Rs. 100 crores. The depreciation was Rs. 250 crores
and the value of Net Indirect taxes (NIT) was Rs. 200 crores. Answer the following.
a) Find out the NDPMP
b) Find out the GNPMP.
c) Find out the NNPMP.
d) Find out the NNPFC.
e) Which one is called as National Income?
f) Is GNP always greater than National Income?
16. Explain the functions of Money. How does money overcome the short comings of a
Barter system?
17. Write the story of gold smith Lala on the process of deposit and loan (credit) creation by
Commercial banks.
Dr.Harish.N. Ph.D, Lecturer in Economics, Adarsha PU College, R.T.Nagar, Bengaluru-32. M: 9480196752
18. Explain the classification of Receipts in Government budget.
19. Describe the Balance of payments accounts.
20. Briefly explain the foreign exchange market with fixed exchange rates based on a
diagram.
Dr.Harish.N. Ph.D, Lecturer in Economics, Adarsha PU College, R.T.Nagar, Bengaluru-32. M: 9480196752
