Economics Fundamentals

• The document is a model question paper for the annual intermediate economics exam of 2024, set by the Jharkhand Council of Educational Research and Training (JCERT), Ranchi.
• The exam is for Class 12, is 3 hours long, and has a total of 80 marks.

General Instructions

• Candidates should answer in their own words as much as possible.
• All questions are compulsory.
• There are a total of 52 questions.
• Questions 1 to 30 are multiple choice questions, each carrying 1 mark.
• Questions 31 to 38 are very short answer questions, carrying 2 marks each, and students must answer any 6 questions.
• Questions 39 to 46 are short answer questions, carrying 3 marks each, and students must answer any 6 questions.
• Questions 47 to 52 are long answer questions, carrying 5 marks each, and students must answer any 4 questions.

Sample Questions

Multiple Choice (1 Mark Each)

• Which curve shows the maximum output combinations of two goods by using optimum allocation of resources? The options are Isoquants, Demand Curve, Total Output Curve, and Production Possibility Curve.
• Which question is related to Microeconomics? The options concern how the price of goods is determined in a market, how resources should be allocated in a country, what a firm's total output level is, and why prices of goods rise in a country.
• In which unit utility can be measured? The options are Kilometres, Litre, Gram, and Rupee.
• If the elasticity of demand of a goods is 2 then the Demand of the goods will be? The options are Perfectly Elastic, Elastic, Zero Elastic, and Unitary Elastic.
• If a consumer's preferences are monotonic, on which of the following bundles of two goods will a consumer be indifferent?
• Which is an example of complementary goods? The options are Tea and Coffee, Pen and Ink, Pen and Shoes, and Rasgulla and Gulab-Jamun.
• What shape is the Average Product curve: A straight Line, 'U' shaped, Hyperbolic, or Inverted 'U' shaped.
• In the Production function showing constant returns to scale, if the factors are increased twice then by how much the output will increase?
• A figure question asking what does the area of rectangle OABC show?
• How many firms there in a perfectly competitive market? The options are: 2, 1, Some, and large number.
• Which of the following are the conditions of equilibrium of a perfectly competitively firm?
• what will be the elasticity if the quantity supplied increased by 15% due to the increase in the price by 10% of goods?
• Correct option about Assertion (A) and Reason (R), related to the imposition of excise duty on commodities and its impact on the supply curve of a firm?
• impact on equilibrium price when the demand of a good increase?
• When will the situation of excess demand arise?
• Correct statement about capitalist economy.
• Unemployment rate: The options are 2%, 10%, 5%, 20%.
• What is the Investment means in the context of Economics?
• Flow of factors' services in a two-sector model of circular flow of income? The options are.
• Government pension part of which of the following aggregates? The options are GDP, GNP, National Income, or Personal Income.
• Universally accepted medium of exchange: The options are Cheque Book, Bond-Paper, Demand Draft, or Money.
• What happens to the demand if the interest rate increase.
• Methods central bank uses to increase the supply of money.
• known as paper tax? The options are Income Tax, Corporation Tax, Wealth Tax, or Custom Duty.
• example of direct tax? The options are Excise Duty, Output Tax, Corporation Tax, or Service Tax.
• Value of MPC, If the consumption expenditure of consumers remains unchanged due to change in income.
• A component of aggregate demand?
• ratio of change in autonomous investment and change in total output?
• What is foreign exchange rate?
• What is the balance of international transactions of goods and services?

Very Short Answer Type Questions (2 Marks Each)

• How opportunity cost affect production possibility curve?
• What does it mean for a 'Consumer's preference is monotonic.'
• A numerical problem in which the price elasticity of demand needs to be calculated when the quantity demanded of a good increases by 8% due to a 5% fall in its price.
• Define Marginal cost and Average cost.
• What are the four sectors of an economy according to macroeconomics?
• Mention any four means of digital transactions at present time.
• Explain: open economy.
• Define government budget.

Short Answer Type Questions (3 Marks Each)

• Define Marginal utility.
• Firm's production Function Q, what should me the production function of labour and captital unit:?
• What do mean by market equilibrium?
• Factors affecting the supply of a good.
• Define gross domestic product.
• Double Coincidence of wants with illustrations.
• Objectives of a government budget.
• Equilibrium in economy.

Long Answer Type Questions (5 Marks Each)

• Define price elasticity of demand.
• Define returns to scale? Give a example of when the production function show constan returns.
• Sum of the supply curve.
• Indicator of welfare.
• Aggregate demand its components.
• How does central bank control over credit in an economy?