Topics: Consumer theory, Economics, Income Pages: 4 (911 words) Published: August 26, 2013
Holiday Home work ECONOMICS
Name: __________________ Class: XII Sheela Stephens General Instructions: i. All questions in both the sections are compulsory. ii. Marks for questions are indicated against each. iii. Answers should be brief and to the point. iv. All parts of the questions should be answered in one place. v. Questions carrying one mark should be answered in one sentence. vi. Answers to questions carrying 3 Marks should not exceed 60 words. vii. Answers to questions carrying 4 Marks should not exceed 70 words. viii. Answers to questions carrying 6 Marks should not exceed 100 words. ix. Word limit is not applicable to numerical questions. SECTION – A 1) Define price line. 2) Give the meaning of externality in economics. 3) Why does an economic problem arise? 4) What cases an upward movement along the demand curve of a commodity? 5) Define Giffen good. 6) ” If PPC curve will be the straight downward sloping line, marginal opportunity cost is constant” – prove the above statement by explaining with an illustrated schedule and a diagram 7) What do you mean MRS? What happens to MRS when consumer moves downwards along the indifference curve? Give reason 8) Draw the demand curve with a schedule and explain the law of demand. 9) State and explain the properties of indifference curve [3] [3] [3] [3] [1] [1] [1] [1] [1] Max Marks: 100

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10) Explain the law of Diminishing marginal utility with the help of a diagram and a schedule 11) Distinguish between movement along the demand curve and shift in the demand curve OR Distinguish between inferior goods and normal goods with examples. 12) What are monotonic preferences? Explain why is an indifference curve (i) downward sloping from left to right and (ii) Convex 13) Explain the effect of following changes on the demand of a commodity. (i) A rise in the income of a consumer (ii) A fall in the price of the relative goods

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14) What is consumer ‘s equilibrium? Explain the...