EDUCATING FOR GROSS NATIONAL HAPPINESS
PUNAKHA HIGHER SECONDARY SCHOOL
TRIAL EXAMINATION-2015
SUBJECT: ECONOMICS
FULL MARK: 100
CLASS: XII
TIME: 3 HOURS
Answer QUESTION 1 (COMPULSORY) from PART I and SEVEN questions from PART II.
The intended marks for questions are given in the BRACKETS ( )
--------------------------------------------------------------------------------------------------------------------PART I
QUESTION 1
(ALL THE QUESTIONS ARE COMPULSORY)
i.
What is the subject matter of micro and macro economics?
ii.
What will happen to the demand for a particular commodity if an income of a consumer increases?
Explain in brief with diagram.
(2)
(2)
iii.
How is indifference curve analysis superior to marginal utility analysis? Explain any two reasons. (2)
iv.
Draw a supply curve for each of the following:
(a) When elasticity of supply = α
(b) When elasticity of supply = 0
v.
(2)
What will happen to;
(a)
TP when MP = 0
(b) TP when MP is Negative
(2)
vi.
What is price discrimination and in which market forms price discrimination is possible?
(2)
vii.
VMP is equal to MRP under perfect competition. Is it the same case under imperfect market?, justify.(2)
viii.
What is collective bargaining?
ix.
Complete the following equations;
(2)
(a) GDPmp = NDPfc…………………………………………………………………………………………………………………..
(b) GNPfc= NDPmp…………………………………………………………………………………………………………………..
(2)
x.
Why do different countries trade with one another?
(2)
xi.
Mention and describe the components of balance of payment.
(2)
xii.
What is VAT? Mention one objective of MODVAT.
(2)
xiii.
List down the methods of deficit financing.
(2)
xiv.
Differentiate between IMPACT and INCIDENCE of tax.
(2)
xv.
What is public debt? Mention any two methods of debt redemption.
(2)
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EDUCATING FOR GROSS NATIONAL HAPPINESS
PART II (ANSWER ANY SEVEN QUESTION)
QUESTION: 2
a.
Explain any five significances of Gross National Happiness.
b.
Find out operating surplus from the following data.
i.
Compensation of the employee------------------------------- Nu 100
ii.
Net Indirect taxes------------------------------------------------- Nu 30
(5)
Gross Value added at market price--------------------------- Nu 330
iii.
Consumption of fixed capital----------------------------------- Nu 30
iv.
Mixed Income------------------------------------------------------ Nu 40
(5)
QUESTION: 3
a.
Discuss absolute cost advantage theory of international trade.
(5)
b.
Look at the diagram and answer the following questions.
(5)
MC
AC
25
20
Price
AR
12
MR
Output
Find: ( a) Total Output. (b) Average Cost (C) Average Revenue (d) Average Loss (e) Total Loss
QUESTION: 4
a.
b.
If you are one of the policy makers in our country, what measures will you adopt to rectify the negative
balance of payment of our country?
(5)
What are the factors determining market forms? Describe any five of them.
(5)
QUESTION: 5
a.
Differentiate between progressive and proportional taxes.
b.
Draw an appropriate diagram for TR, AR and MR under imperfect competition and state the relationships
between TR and MR
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(5)
(5)
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EDUCATING FOR GROSS NATIONAL HAPPINESS
QUESTION: 6
a.
b.
“Public expenditure in our country has been raising high in the recent times.” Explain any five reasons for
rise in public expenditure in recent times in Bhutan.
(5)
Briefly explain law of variable proportions with an appropriate diagram.
(5)
QUESTION: 7
a.
Explain three positive effects of deficit financing and two negative effects of public debt. (5)
b.
Explain the reasons why supply curve sloes positively.
(5)
QUESTION: 8
a.
“Fiscal policy is the way through which our government fulfills various objectives. Discuss how fiscal policy
can maintain equality in income and wealth distribution in our country.
b.
(5)
Does demand change or not with the change in price depends on some determinants. Explain any five
such determinants.
(5)
QUESTION: 9
a.
Describe how budget can be important to a country like Bhutan.
(5)
b.
Explain the properties of an indifference curve.
(5)
QUESTION: 10
a.
b.
Elabourate on the following terms.
(i)
Vent for surplus
(ii)
Public debt
(iii)
Budget
(iv)
Dislodging of domestic industries
(v)
Deficit financing.
Why does demand curve slopes downward from left to right.
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(5)
(5)
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