HIGHER ORDER THINKING SKILLS EXAMPLARY QUESTIONS XII ECONOMICS

Question 1 (1 Marks)
What happens to equilibrium price of a commodity if there is ‘decrease’ in its demand and ‘increase’ in its supply?

Question 2 (1)
Define marginal revenue. State the relation between marginal revenue and average revenue when a firm “
(i) is able to sell more quantity of output at the same price.
(ii) is able to sell more quantity of output only by lowering the price

Question 3 (3)
A consumer buys 100 units of a good at a price of Rs.5 per unit. When price changes he buys 140 units. What is the new price if price elasticity of demand is – 2?

Question 4 (4)
Why are exports included in the estimation of domestic product by the expenditure method? Can gross domestic product be greater than gross national product? Explain

Question 5 (1)
What is the price elasticity of supply of a commodity whose straight line supply curve passes through the origin forming an angle of 75?

Question 6 (6)
All the inputs used in production of a good are increased simultaneously and in the same proportion. What are its possible effects on Total Product? Explain with the help of a numerical example.

Question 7 (1)
If MPC and MPS are equal, what is the value of the multiplier?

Question 8 (6)
How will you treat the following while estimating domestic product of India?
(i) Rent received by a resident Indian from his property in Singapore.
(ii) Salaries to Indians working in Japanies Embassy in India.
(iii) Profits earned by a branch of an American Bank in India.
(iv) Salaries paid to Koreans working in Indian embassy in Korea.