# 2019 H.S. 2nd Year ECONOMICS Question Paper 2019
ECONOMICS
Full Marks: 100
Pass Marks: 30
Time: Three hours
The figures in the margin indicate full marks for the questions.

PART – A
Q. No. 1 (a-f) carries mark each                 1 X 6 = 6
Q. No. 2-7 carries 2 marks each                  2 X 6 = 12
Q. No. 8-12 carries 4 marks each                4 X 5 = 20
Q. No. 13 & 14 carries 6 marks each          6 X 2 = 12
Total = 50

PART – B
Q. No. 15 (a-f) carries 1 mark each            1 X 6 = 6
Q. No. 16-21 carries 2 marks each             2 X 6 = 12
Q. No. 22-26 carries 4 marks each             4 X 5 = 20
Q. No. 27 & 28 carries 6 marks each          6 X 2 = 12
Total = 50

Total (Part A & B ): 50 + 50 = 100

PART – A

1.(a) Define the term scarcity as used in economics. 1
(b) What is opportunity cost? 1
(c)  If marginal utility of a commodity is higher than the price, then the consumer will buy more of the commodity? (Write True or False) 1
(d) What will be the effect of price change on supply of a commodity with perfectly inelastic supply? 1
(e) How will an increase in the price of inputs shift the supply curve? 1
(f) What is shut down price? 1

2. Why the production possibility curve slopes downward from left to right? 2

3. Give two reasons of a leftward shift in the demand curve. 2

4. The price elasticity of demand of a commodity is 4 and the percentage change in price is 8. Find the percentage change in the quantity demanded.  2

5. What is fixed factor? Give one example.  1+1 = 2

6. What is meant by inelastic supply? Draw an inelastic supply curve.  1+1 = 2

7. Mention two differences between monopoly and perfectly competitive market.  2

8. Distinguish between change in quantity demanded and change in demand.  4

9. Mention the relationship between total utility and marginal utility. 4

10. What is variable cost? Why the Average Variable Cost (AVC) curve becomes U shaped? 1+3=4

11. The production function of a firm is Q=2L¹/².K²
Find the amount required of factor K if the firm wants to produce 200 units with available 16 units of factor L.
(Q = Output, K = Capital, L = Labour) 4

12. Mention the effect of the following on the supply of a commodity. 2+2 = 4
(i) Fall in the price of factors.
(ii) Rise in the per unit tax.

13. Explain law of variable proportion with diagram. 6

Or

The total fixed cost of a firm is Rs. 200. Fill in the blanks of the following table. 6 14. Explain the process of Long-run Equilibrium Price determination of perfectly competitive industry with diagram.   6

Or

Show the effects of changes in demand of a commodity on equilibrium price, if
(i) The supply of the commodity is perfectly elastic
(ii) The supply of the commodity is perfectly inelastic.   3+3=6

PART – B

15. (a) In what circumstances, the GDP of an economy can be equal to GNP? 1
(b) What is transfer payment?   1
(c) What is voluntary unemployment?   1
(d) What is Break-Even income?  1
(e) What is the full form of GST?  1
(f) What is zero primary deficit? 1

16. Mention two subject matter of Macroeconomics.     2

17. Mention any two types of leakages found in the Circular Flow of income. 2

18. What is investment multiplier? Write the relationship between investment multiplier and MPC? 2

19. Mention the two primary functions of money. 2

20. Mention two differences between revenue receipts and capital receipts. 2

21. State two sources of supply of foreign currency. 2

22. The value MPC of an economy is 0.4. What amount of new investment is required to generate new income of Rs. 500 crore in the economy? 4

23. Explain any two fiscal measures to solve the problem of excess demand in an economy. 2+2=4

24. Mention two factors causing disequilibrium in Balance of Payment of a country. 4

25. Write down four differences between Direct Tax and Indirect tax.    4

26. What is Budget Deficit? What are three types of Budgetary Deficit? 1+3=4

27. Describe the Circular Flow of Income in a Three Sector Economy. 6

Or

Explain the Expenditure Method of calculating Gross Domestic product (GDP). 6

28. Explain the process of credit creation by commercial banks. 6

Or

Describe the Quantitative methods adopted by the Central Bank to control credit created by commercial banks. 6

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