Download Economics Holiday Homework - Kendriya Vidyalaya No.1 Devlali

Kendriya vidyalaya No1 Devlali
Subject: ECONOMICS
Class XII
Home Assignment
1 MARK QUES TIONS
1X6= 6
1. What is a market economy?
2. Define a budget line.
3. Define an economy.
4. Define microeconomics
5. Define market demand.
.
6. What is ‘opportunity cost’?
3 MARKS QUESTIONS
3X4 = 12
7. Why is a production possibilities curve concave? Explain.
8. Explain the central economy problem ‘How to produce’?
9. Explain the relation between total utility and marginal utility
10. What is ‘marginal utility’? Explain the law of diminishing marginal utility with the help
of a utility schedule
4 MARKS QUESTIONS
4X5 = 20
11. A consumer consumes only two goods X and Y. State and explains the conditions of
consumer’s equilibrium with the help of utility analysis.
12. Explain how the demand for a good is affected by the prices of its related goods. Give
examples.
13. Derive the law of demand from the single commodity equilibrium condition “marginal
utility =price”.
Or
Derive the inverse relation between price of a good and its demand from the single
commodity equilibrium condition ‘Marginal utility = Price
14. Explain how rise in income of a consumer affects the demand of a good. Give example
15. Explain the indifference curves and the concepts of marginal rate of substitution.
6 MARKS QUESTIONS
6X2 = 12
16. What are monotonic preferences? Explain why is an indifference curve (i) downward
sloping from left to right and (ii) convex.
17. Explain the conditions of consumer’s equilibrium with the help of the indifference curve