Document Sample
ECO Powered By Docstoc
					                           DRUKGYEL HIGHER SECONDARY SCHOOL
                                   Trial Examnation-2011
                                    ECONOMICS (XII)
                                          (Three hours and a quarter)
  (The first 15 minutes are for reading the paper only. Candidates must NOT start writing during this time).
             Answer Question 19 Compulsory) from Part I and any SEVEN questions from Part II.
                                  The intended marks are given in brackets [ ].

                        PART I- Compulsory [30 marks-2 x 15=30 marks]
Question 1
  i. What do you understand by the term „Micro Economics‟?     [2]
   ii. Explain any two determinants of supply other than the “price of the commodity”. [2]
   iii. “VMP is equal to MRP under perfect competition “. Is this also true in case of imperfect
       competition? Why?                                             [2]
   iv. What do you understand by “Law of Demand”? Illustrate it with a labeled diagram.[2]
   v. Define Oligopoly .Explain one of its characteristics.                         [2]
   vi. How can we avoid „double counting‟ in the calculation of national income? Write two methods.[2]
   vii. Write two differences between the final goods and the intermediate goods.           [2]
   viii. Which of the national income aggregates is technically known as national income? Define it.      [2]
   ix. Is current account same as balance of trade? Give one reason to validate your answer.              [2]
   x. How is balance of trade different from balance of payment?             [2]
   xi. Differentiate between rolling budget and supplementary budget in the context of the Bhutanese
       economy.                                               [2]
   xii. Give one difference between expenditure on urbanization and expenditure on administrative
       machinery.                                   [2]
   xiii. Distinguish between incidence and impact of taxation.               [2]
   xiv. Some of the objectives are seen to be similar in the both Seven Five Year Plan and Eight Five Year
       Plan of our country. Mention two such objectives.                     [2]
   xv. State any two important needs of planning in Bhutan.                         [2]

                                              PART II
                               (Answer any SEVEN questions)[70 Marks]
Question 2
  a. Describe marginal productivity Theory of Distribution using an appropriate diagram.                  [5]
   b. Briefly explain how national income is calculated using income method.                              [5]

   a. With the help of labelled diagrams, explain what would happen to the equilibrium price and quantity
       i.     Demand and supply increases by the same proportion, and
       ii.    Demand increases in larger proportion than the increase in supply.[5]

DHSS/Trial/12Eco/2011                     Page 1                    There are 2 printed pages
   b. Describe the Theory of Absolute Cost as a basis for international trade.                            [5]

Question 4
   a. Define and explain the law of variable proportions using an appropriate diagram.                    [5]
   b. If you are entrusted with the responsibility of correcting the    unfavorable balance of payments
       situation in our economy, mention five methods you would adopt.                           [5]

Question 5
   a. With the help of a diagram, explain the short-run equilibrium of a firm under perfect competition
       earning super-normal profit.                  [5]
   b. How can fiscal policy bring about economic growth and equal distribution of wealth and income in
       an economy?                           [5]

Question 6
   a. State five differences between Utility Approach and Indifference Curve Analysis.                    [5]
   b. Explain circular flow of income and expenditure in the Three sector Model using a diagram.          [5]

Question 7
   a. Public Debt (Public borrowing) and deficit Financing are the two methods of meeting financial needs
       of a country. Briefly explain two positive effects and two negative effects of each.               [5]
   b. From the First five year Plan to Fifth Five Year Plan, identify one most important priority opted by
       the Government from each plan and give reasons for each priority.                                  [5]

Question 8
   a. Write three merits and two demerits of indirect taxes.                       [5]
   b. What are the differences between international trade and internal trade? Write five differences.    [5]

Question 9
   a. Critically examine the Ricardian Theory of Rent.                             [5]
   b. “GNH is a better measure than GDP in promoting the happiness of the people”. Do you agree? Five
       reasons and explain them.                     [5]

Question 10
   a. Discuss the reasons as to why does demand curve slope from left to right upwards.                   [5]
   b. Explain five methods of redemption of public debt.                    [5]

DHSS/Trial/12Eco/2011                     Page 2                   There are 2 printed pages

Shared By: