Download CLASS XI SA-1-2016-17 SUB:ECONOMICS Question

CLASS XI
SA-1-2016-17
SUB:ECONOMICS
Question -1
a.Utility is the want satisfying capacity of a goods. Usefulness is an ethical and empirical in nature
where as utility is psychological in nature. A commodity can be useful but can not have utility like
bitter medicine.
b.Micro economics is that branch of economics in which we study the individual units, for example
the production of a particular firm, the income of a particular household.
c.The two main charecterstics of utility are a) It is subjective in nature b) It is abstract in nature.
d.Marginal utility is the addition to total utility when one more units of commodity is consumed. It is
the utility derived from the last units of consumption. Some body consuming 4 units of commodity
and getting 10 utility from the fourth consumption. Then MU is 10.
e.Economic welfare is the well being derived from material things i.e, a good house, good food etc.
Non economic welfare is the wellbeing derived from non material things like prayer, meditation,
donation etc.
Question-2
a.The demand pull inflation is a condition in which inflation occurs due to more demand in the
economy. The causes of demand pull inflation is a) Due to cheap credit facility, which causes more
aggregate demand. b) Increase in population may be due to influx or other reasons.
b.Per capita income is the per head income, It is calculated by dividing the national income by its
population.
c.Market is a process in which the buyer and the seller contact to each other and exchange
commodities and services. National market includes the market for a commodity within the country
(national news paper :Times of india, Hindustan times etc).
d.The four phases of business trade cycle are : Inflation, deflation, depression, revival.
e.Economic activity is defined as those activities which are related with gain or loss like income,
expenditure, distribution of commodity etc. The teacher teaching children in a govt. school.
Question -3
a. The non-economic activity are the activity which are related profit motive or gain. These are the
activities which are done for the sake of satisfaction, feeling or as a tradition i.e, religious
festivals, donation to poor people.
b. Adam smith is known as the father of Economics. He wrote “An enquiry into the nature and
causes of wealth of nation”.
c. Robbins definition of economics as social science which studies ends and means which have
alternative uses. So it is the science to make choice.
d. The two limitations of wealth definition are a) Too much emphasis on wealth only.
b) ignored the welfare as pect .
e. The scope of micro includes theory of consumers behavior, theory of producers behavior, theory
Of factor pricing etc.
Question-4
a. Capital is anything which is helpful for further production, wealth is a possession which has
exchange value. All capitals are wealth but all wealths are not capital.
b. The two assumptions of PPC is that the technology should be constant and the resources are
fixed in supply.
c. The economic problems arises due to scarcity, which is due to unlimited human wants and
limited resources to satisfy them, the resources have alternate uses, which leads to scarcity.
d. Opportunity cost is the next best alternative cost, it is also known as the second best alternative
cost. For example one person got 3 job offers with having salary 35, 30 and 25( thousand) ,then
30,000 is the opportunity cost.
e. A point out side the PPC indicates that the unattainable point. Our resource is insufficient to
produce at the point.
Section II
Question 5
A. Utility is created by
a. Form utility: By changing the shape and size of the object like chairs from the wood.
B. Place : By changing the place of the product, the utility of the product will change (water
from river to the city).
c. Time utility: With the chaenge of time, the utility of the product will change.
D. service utility: The service of a doctor, engineer will change the utility of the product or
instrument.
B. Production is the creation or addition of utility. The four factors of production are as follows: (a)
Land : The free gifts of nature, on which human has little control.It is a fixed factors of production
and heterogeneous in nature.
(b) labour: It is an active factor of production, it includes the physical and mental effortmakers. It
used land and capital to produce commodities.
(c) Capital: Capital is another factor of production which is fixed in nature and subject to
depreciation. It is helpful for further production.
(d) Entrepreneur: A person who takes risks and uncertainties, and who innovates and coordinates all
other three factors of production.
Question no-6
A. The various components of aggregate demand are :a) Private final consumption Expenditure:
The private final consumption expenditure consist of durable, perishable and semi durable
commodities. The aggregate consumption by all the house holds are included. B)Investment
expenditure: The investment expenditure consist of both private invesstment and government
investment . Investment in the form of real capital and change in stock. C) Government
expenditure: The government expenditure consist of Expenditure in the country and abroad to
operate the govt. mechanism. D) Net export: The net export consist of excess of export over
import. If it is negative then it indicates that there is more import than export.
B. Inflation is defined as an increase in the price level of the commodities for a period of time. It is
also the fall in the value of the money. The various causes of inflation are as follows: a) Excess
demand in the economy due to more money supply by the government due to deficit financing.
B) Better banking facility and cheap credit facility: People demand more as they are getting more
credit facility. The credit facility will increase the aggregate demand in the economy which will
cause inflation. C) Excess export is also discussed as one of the cause of inflation as the
commodity for the domestic consumption will be scarce. D) Wage hike: the change in the wage
rate also increases the cost of production high which causes inflation in the economy.
Question no-7
A. The wealth definition of economics is given by Adam smith in his book “wealth of nation”.
The definition has the following features: a) Economic man: He discussed about the
economic man, rational rather than the saints in the jungles. The economic man should have
eagerness to earn. B)Causes of wealth: The various causes or sources of wealth , it
emphasized on the sources rather the implementation. C) nature of economics: Adam smith
emphasized that economics is a positive science rather than normative.
It is criticized on the ground that a) Too much emphasis on wealth b) Neglected welfare
B. Lionnel robbins definition of economics is known as scarcity and choice definition of
economics. He defined” Economics is a social science which studies relationship between
unlimited ends and scarce means , which has alternate uses.
The features of this definition are A) we have scarce means(limited resource) B)Unlimited
wants: Our wants are limitless in nature. C) resources have alternate uses
The various merits of this definition are a) It is scientific: It is scientific in the sence, where
there is the scarcity there is the study of economics. B) It is analytical in nature: It is positive
and analytical in nature with cause and effect relationship.
Question no-8
A. It is an open question( u can take any definition and prove how it is better than the
other)
B. The central problem of an economy consist of a) allocation of resources b) full
employment of resources. C) Growth of resources
The allocation of resources consist of i )how to produce ii)what to produce and iii) For
whom to produce
b) The full employment of resource is related with the full employment of all the
productive resource in the economy. There should not be any unemployment.
c) The growth of resource is related with the development of new source of energy and
raw material for the rapid growth of the economy.
CLASS- IX
SA-1-2016-17
SUB:ECONOMICS
Question-1
(a) The two features of human wants are a) human wants are unlimited b) wants vary with
intensity.
(b) Goods m eans commodities and services.
(c) Economic activity is defined as those activities which are related with gain or loss like income,
expenditure, distribution of commodity etc. The teacher teaching children in a govt. school.
(d) Adam smith is known as the father of Economics. He wrote “An enquiry into the nature and
causes of wealth of nation”.
(e) Economics is the study of Material welfare, which means related with use of material
commodities.
Question no-2
(a) Robbins definition of economics indicates that human wants are unlimited and we have limited
resources(means to satisfy human wants).
(b) .Micro economics is that branch of economics in which we study the individual units, for
example the production of a particular firm, the income of a particular household.
(c) Marginal utility is the addition to total utility when one more units of commodity is consumed. It
is the utility derived from the last units of consumption. Some body consuming 4 units of
commodity and getting 10 utility from the fourth consumption. Then MU is 10.
(d) Utility is the want satisfying capacity of a goods. Usefulness is an ethical and empirical in nature
where as utility is psychological in nature. A commodity can be useful but can not have utility
like bitter medicine.
(e) Wealth is scarce in supply and it is transferable from person to person.
Question no-3
(a) Two examples of national wealth are multi purpose projects, Solar projects.
(b) Two examples of fixed capital are building, machine.
(c) Variable capital is the capital which changes with the change in the level of output. Sugar cane in
sugar cane industry, wheat in bakery.
(d) Production is defined as the creation or generation of utility.
(e) The factors of production are land, labour, capital and entrepreneur.
Question no-4
(a) Labour is defined as a person works partially or wholly, mentally or physically , t5o earn money
rather than entertainment.
(b) Micro Economic studies: Income of a person, Profit of a firm.
(c) Capital is mobile and capital is a passive man made factors of production.
(d) Land and capital are passive as they can not work their own self. They depends on labour to be
used.
(e) Some of the human wants are urgent, some are very urgent and some are less urgent. Medicine
for a patient is more urgent than to see a movie.
Question no-5
A. The non-economic activity are the activity which are related profit motive or gain. These are the
activities which are done for the sake of satisfaction, feeling or as a tradition i.e, religious
festivals, donation to poor people.The various types of non economic activities are a) leisure
activities- To go to see movies, to go to different clubs etc. b)Religious activities-Offer prayer
and to visit holy places. C) Social activities- Marriage, funeral and other activities as birthday
celebration. D) Philanthropic activities: The act of charity , donation etc.
B. The wealth definition of economics is given by Adam smith in his book “wealth of nation”. The
definition has the following features: a) Economic man: He discussed about the economic man,
rational rather than the saints in the jungles. The economic man should have eagerness to earn.
B)Causes of wealth: The various causes or sources of wealth , it emphasized on the sources
rather the implementation. C) nature of economics: Adam smith emphasized that economics is
a positive science rather than normative.
It is criticized on the ground that a) Too much emphasis on wealth b) Neglected welfare
Question -6
Growth definition of economics is given by P.A.Samuelson who told that economics is all about
individual or economy as a whole in which we have to use the resources for rapid economic growth.
The features are:a ) Resources. This definition describe about the economic resources which are
used to satisfy human wants. These resources are getting by payment of some price. B) Allocation
of Resources. Choice is the main problem of economics. Effective allocation of resources is helpful in
full utilization of resources. C) Full utilization of Resources. This definition described about the
economic growth is not increase till the resources are not fully utilized. D) Improvement in
Resources. There are some resources which can be increased by us. By increasing or improving these
resources we improve our economic growth.
A. Utility is the want satisfying power of a commodity. The various ways to to form utility are as
follows: a) Form utility: By changing the forms of the commodity, utility can be formed. A chair
from the wood. B) Place utility: By changing the place of the product, the utility can be
increased. For example the water in the river can be transported to the city nearby. C)Time
utility: The utility of a product changes with the change in the time. Winter garment has more
utility in the winter rather than in summer. D) service utility: The utility of a product changes due
to better service provided. Emirates air lines has more utility than air Arabia.
Question no-7
A. Wealth is Defined any possession which has exchange value. The various features of wealth are
as follows: a) Scarcity: It is scarce in its supply. Always the supply is less than the demand. b)
Transferability: The ownership can be transferred from person to person, or from organization
to organization. C) Tangible: The wealth can be seen and touch. It is not psychological in nature.
D) Acquired or inherited: Wealth is either inherited or acquired.
B. The basic units of an economy are house hold, firm,Government and rest of the world. The inter
relationship can be discussed as follows: a) House hold and firm: The house hold is the owner of
all the factors of production, It will supply the factors of production and will receive factor
remuneration from the firm. The house hold will consume commodities and services and in its
return will pay money as price. B) House and govt: The govt. works as a producer as well as a
consumer. The house hold will provide all the factors of production and receives remuneration
from govt. The house hold pays tax and receives transfer payments from govt.The house hold
purchase commodities from govt and pay for it. C)House hold and rest of the world: The house
hold is the owner of all the factors of production, It will supply the factors of production and will
receive factor remuneration from the ROW. The house hold will consume commodities and
services and in its return will pay to the Row.d)Firm and Govt.: The firm will purchase few things
and services from the govt, the govt also purchase commodities from the firm. The firm pays tax
and receives transfer receipts as subcidies from the govt.
Question no-8
A. Barter system is defined as a system in which goods are exchanged against goods. Money is
defined as anything which is generally accepted and legally supported as a medium of
exchange. The two features of money are a) Generally accepted means that each and
everybody will accept as a medium of exchange. B) Legally supported: The currency is
supported by the govt of the land.
B. The various causes of economic problems are : a) Human wants are unlimited: There are
limitless human wants. If one want is satisfied then other want will arise. b) Limited
resource: We have limited means to satisfy human wants. The means can be time, money
and man power. C) Means have alternate uses: All the means can be used to satisfy many
wants.
Question no-9
A. The central problem of an economy consist of a) allocation of resources b) full
employment of resources. C) Growth of resources
The allocation of resources consist of i )how to produce ii)what to produce and iii) For
whom to produce . i) how to produce : It is related with the technology i.e, labour
intensive and capital intensive method of technology. Ii) what to produce is related with
what commodity and in what quantity it should be produced. It is related with the
present and future of the nation. iii) For whom to produce: The production should is
related with income, so it is related with distribution between rich and poor.
B. The various features of land are as follows: i) land is a passive factors of Production ii)
Land is immobile in nature ,it can not move from place iii) It is heterogeneous in nature:
. the lands differ in their composition, productivity and other qualities. Iv) Land is
transferable: unlike labour land can be transferred from one owner to other.