THE BISHOP'S SCHOOL, PUNE
RRST PRELL\UNARY EXAMINATIOS (1024-25)
SUBJECT- ECONOMICS
CLASS-11 MARKS:80
DATE: 19/11/2024 TIME:3 HRS
hutnldiom to Candidates:
You are allowed additional fifteen minutes for only reading the question paper.
► You must NOT start writing during reading time.
► This question paper bas 6 printed pages.
► There are 13 questions in the paper. All questions arc compulsory.
► It is divided into thrtt sections: A. 8 and C.
► Sectio■ A bas sateen subparts which arc very short answer questions. Each question carries 1
mark.
► While anempting Multiple Choice Questions in Section A. you arc required to write only ONE
option as the ~ r .
► Section B bas eight questions which are short answer questions. Each question carries 4 marks.
► Semo■ C bas four questions which are long answer questions. Each question carries 8 marks.
► lntcmal choices have been provided in two questions in Section B and in one question in Section
C.
► The intended marks for questions arc given in brackets ( I•
SECTION-A 16 MARKS
QUESTION!
i)Which of the following statements regarding ordinal utility is true? (I}
(a) Utility cannot be measured, but can (b) Utility can be measured, but cannot
be ranked in order of preferences. be ranked in order of preferences.
(c) Utility can neither be measured nor (d) Utility can be measured and can also can be
ranked in order of preferences be ranked in order of preferences.
ii)ldentify the nature of the product with the help of the diagram given below. (11
l
Ep•O
,, ···-······'··
01
1=-=1
P,
·-···-···".
0 0 a...,
Flg.U.:~.,..._o.-111
a)Comfort good b) Luxury good
c)Necessary good d) Giffen goods
iii)ln the figure given below, the demand is :- (I)
,. (••
y -,....,
"· \. rY.1.
•;..'· r·
• - "...,,. .. 1 1
; 'A • . •
D
't t I 1
B
L---~-----:~~-x
0 . , , Demand
(a)Pcrfectly elastic at A unit elastic at 8 and relatively inelastic at E.
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(b)Relatively elastic at D perfectly elastic at C nnd unit elastic a~ E.
(c)Unit elastic at C, relatively inelastic at E ond perfectly lnelas~1c at B
(d)Tclativcly inelastic at 8, unity elastic at C and perfectly elastic at B
iv)As per the data presented in the Union Budget 2023-24, the total receipts of the government othe~ than
borrowings and the total expenditure ure estimated at, 27.2 lokh crore and t 45 lokh crore rcspechvely.
The value of the _ _ _ deficit would be t 17.8 lnkh crore. II (
a) revenue b) fiscal
c) budgetary d) primary
v) As per the Reserve Bank of India (RBI) press report, dated _2~th ?ecember, 2022: "Net cxterna~
commercial borrowings to Ind in recorded nn outflow of USS 0.4 b1lhon m the second quarter (2022-23) 1
(1)
The above transaction will be recorded in the _ _ _ account on ___ side of Balance of payments
account of India.
(Choose the correct alternative to fill up the blanks)
a) current. credit b) current. debit
c) capital, credit d) capital, debit
vi) Given an economy with a Consumption Function ofC • 750 + 0.5Y, where C represents Consumption
Expenditure, Y represents National Income nnd an Investment Expenditure of2,300, what would be the
Consumption Expenditure at the equilibrium level? (1)
a)Rs 1400
b)Rs 6100
c)Rs 303S
d)Rs3800
vii)Rcad the following news report carefully: (1)
Central bank has imposed fine on Hisar Urban Cooperative Bank Ltd. and Andaman and Nicobar State
Cooperative Bank Ltd. for violation of banking norms. According to the given report. identify the
function of the central bank.
a)Issue of currency
b)Banker to the public
c)Banker to the Government
d)Bankers bank
viii)Given below are two statements marked as Assertion and Reason. Read the statements carefully
and choose the correct option. 111
Assertion(A): when MR is positive, TR tends to increase.
Reasoning(R): as under monopoly more of the commodity can be sold by lowering down the price of
the commodity. Hence AR curve is downward sloping from left to right .
(a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.
(b) Both Assertion and Reason arc true but Reason is not the correct explanation of Assertion.
(c)Assertion is true and Reason is false.
(d) Both Assertion and Reason are false.
ix)Why slope ofBudget line is represented by Price Ratio? Ill
x)Proportional taxation system is uniform in nature in nature. Justify. Ill
xi)Full employment means zero unemployment. Defend or refute. (11
xii)ln the monopoly market there is restriction on entry and exit of firms. What is the reason for this
feature of monopoly? 11)
xiii) Explain the implication of perfect knowledge about the market of the goods in a perfectly
competitive market. Ill
xiv) State the impact of"Make in India" programme on the balance of payment account. Ill
(xv) In an economy, how much additional investment should be generated in the private sector to raise
the national income by ,450 Crore while MPC is 0.6? 111
(xvi)How is deflationary gap generated in the economy. Ill
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,
SECTION B (32 MARKS)
QUESTIONl
(i)Surplus fossil fuel supplies would likely lead to lower prices ond could enoble countries to dedicote(ll
more resources to clean energy, moving the world into on "ogc of electricity," Olrol sold on the behalf of
international energy agency.
(source: the economic times: 16th oct 2024)
Explain the behaviour of supply of electricity in the given !iituotlon . Jllustrutc the sume in u
diagram.
(ii)A consumer buys 8 units of commodity when its price is ,4 per unit. He purchn~s 6 units when
it's price incrensed by 25%, calculate the price elnsticity of the demand. Mention the degree of price
elasticity of demand. 121
QUESTION 3
From the information given in the diagram, categorize the items into revenue receipts nnd capitol receipts,
stating valid reasons. (41
WHERE INDIA GETS ITS MONEY FROM?
Wffr.Rlt INDIA OICTII ITII MONltY ntOM7
l'or onry, I that ,tho Oovt. .,.m,
Corporelion tu ReMvtry of loan
II palN llpalN
Non-tu revoftut"
Oom,wln11 t palllO
and othur liAbililioe
IOpalN
GSTaod
othrr t.llXN
It palee
Cuotoma
4pa1N lnrome tllJl
UlpalN
Kx<ioe dutiN. II palN
QUESTION4
(i)With increase in level of output, average fixed cost goes on falling till it reaches Zero. Is it true? Give
reason for your answer. (21
(ii)The Following table shows the MC at different levels of output by a firm. Its TFC is Rs. 120. Find
ATC and AVC at each level of output. (21
I o:~ut I 4~ 320 ;6
OR
(i)Why is the short run average cost curve u-shaped? (2)
(ii)Study the data given below and identify the laws followed in the production of A and B depicted in
the Table J and Table 11. Justify your answer with o reason for each. (21
TABLE I TABLE II
UNITS OF UNITS OF OUTPUT UNITS OF UNITS OF OUTPUT
LAOOR MACHINE (IN LABOUR MACHINE (IN
UNITS) UNITS)
I I 10 2 l 50
2 I 22 4 2 lOQ
3 I 36 6 3 150
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Qll~S '
(i\,\t ,.y ~ of output profits "'1ll be ma.umiscd. i\19'l c:\plAin thc nik uf producers ~,
\'
cqwltbnum ,nth rc.termc:c 10 \he taHe Ji,'Ctl belo~
oatput II
ntta Rnea. .
l 10
2 8 8
3 8 7
----
4 8 8
5 8 9
Ql!ESTION6
\i} Under pcrf«t competition, a furn "'ill enjoy nonnal PfOlit in thc long run ("\'ffl if II enJofslll
supcmonnal profit in the ,hon run. Explain.
(ii)What are the effects ot price tloor (minimum price ceiling I on the mane1 of a good i I21
U1e diagram
QUESTION7
(i}Oivc any 2 difTcrcnca bctw~n Cunent account and O1pital account of Ba.lance of 121
Payment Account.
(ii) India has been opcrati111 on a managed Oooting exchange rale rcgimc s1nu March I Q91.Explsin the
statemcnl (2J
QUESTIONS
ii)Giving reason e"plain how will )OU trcal the following in estima11011 of narional income (2(
(a) Pa)1ncnt of electricity bill by a factory.
(b) Monthly allowance received by o student from home.
lii) ~ln a simple two sector model of circular flow of income, someone's expend11urc is the or.tx-r·s
income·•. Justify lhe statement. Ill
01{
(i)Wilh the help ofa reason, explain why the follo\loing \loill be included or not l.!I
in the national income accounting. Give one reason for each.
(a)lnt.crest paid on a loan taken to buy co119umer durable goods.
(b)Food grain grown by a farmer for selt~ consumption.
(ii)Distinguish between real GDP w1d nominal GDP. Which uf1hese ts a better Ill
indicator of economic welfare and why?
QUESTION 9 (~I
Determine the output and equilibriwn level of income wilh the help of saving and invcstmcnl approach
)
SECTION ('(32 MARKS)
QUESTION 10
(i)E,iplain with the help of11 dla~am 1he relationship between total produc1 161
and marginal product. .
(ii)Negative returns cause losses 10 o !inn. Whal nre the causes fm Negative n-tums, (2(
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♦
'• ,rstTION 11 .
~ \,.111 )'OU defend or refute the case depicted in the following diagram? Provide a rationale in support of
jl •
'<l'Jf ,,ew
Ill
(ii)A consumer can attain a stable equilibrium only when the marginal utility obtained from a commodity
can be equated with the price of the commodity explain this phenomenon with the help of a diagram.
16)
QUESTION 12
(i)Explain the steps involved in calculation of national income by expenditure method. 121
(ii)Find out NNP at MP and GDP at FC 161
Items <' In crorn)
(i) Rent and Interest 12000
(ii) Wages and Salaries 3600
(iii) Net Indirect Taxes 200
(iv) Corporation Tax 240
(v) Net Factor Income From Abroad 140
(vi) Mixed Income 2000
(vii) Social Security Contribution by employers 400
(viii) Depreciation I 00
(ix) Dividend 160
(x) Undistributed Profit 800
(xi) Subsidies 40
OR
(i)Explain any four precautions to be taken while calculating national income by 121
income method.
(ii) Find out National Income and Domestic Income. f6f
Componrnts (' in crora)
(i) Mixed Income of Self Employed 30,000
(ii) Dividend 400
(iii) Interest 800
(iv) Profit 2000
(v) Depreciation 800
(vi) Compensation of Employees 14,000
(vii) Net Factor Income To Abroad 200
(viii) Exports 200
(ix) Imports 400
(x) Indirect Taxes 1600
(xi) Rent 1000
QUESTION 13
Read the passage given below and answer the questions that follow.
The RBI may sto.rt interest rate cuts begiMing December 2024, with further reductions in early 2025,
based on inflation trends and global economic conditions. Analysts note that demand has softened. nnJ
¥1obal central banks, including the US Federal Reserve, arc casing policies. which supports potential rate
cuts in India.
• M December MPC approaches. the growth slowdown in India will become apparent, as inflation aligns
itsclf lO the Wo target. We expect rcpo rate cuts of I OObp by December 202S. begiMing December 2024.
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