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2 QUESTION BANK WITH COMPLETE SOLUTIONS INCLUDING PREVIOUS YEARS' QUESTIONS II PUC ECONOMICS For MARCH 2017 Exam Published by : OSWAAL BOOKS Oswaal House 1/11, Sahitya Kunj, M.G. Road, AGRA Ph.: , , Fax : , contact@oswaalbooks.com, website :

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4 CONTENT PART - A Latest Syllabus and Blueprint 5 8 II PUC Solved Examination Paper - July II PUC Solved Examination Paper - March Topper s Answers - March Chapter 1. Introduction to Economics l Concept and Basic Problems of an Economy, Organisation of Economic Activities, Positive and Normative Economics Deductive and Inductive Methods of Economics. l Micro and Macro - Economics. Chapter 2. Theory of Consumer Behaviour l Consumer's Equilibrium and Utility Analysis l Indifference Curve Analysis Chapter 3. Demand Analysis l Demand and Law of Demand l Elasticity of Demand Chapter 4. Production and Cost l Production Function : Returns to a Factor and Returns to Scale l Cost of Production Chapter 5. The Theory of the Firm and Perfect Competition l Perfect Competitive Market and Revenue l Supply and Equilibrium Under Perfect Competition Chapter 6. Imperfect competitive Markets (Non - Competitive Markets) l Monopoly : Meaning Features and Equilibrium l Monopolistic : Meaning Features and Equilibrium l Oligopoly and Duopoly PART - A Chapter 7. Introduction to Macro Economics Chapter 8. National Income Accounting l Basic Concept of Macro-economics and Circular Flow of Income l National Income and Its Related Concept l Methods of Calculating National Income Chapter 9. Money and Banking l Money : Meaning and functions of Money l Demand and Supply of Money l Commercial Banks : Meaning, Functions and Credit Creation. l Central Bank - Meaning, Functions, Monetary Policy Objectives and Instruments Chapter 10. Consumption and Investment Function l Consumption funtion l Investment Function and Multiplier Chapter 11. Government Budget and the Economy Chapter 12. Open Economy ( 3 )

5 PREFACE Malcolm Forbes said Education's purpose is to replace an empty mind with an open one and this is something which is always followed by Diretorate of Pre-University Education whether through their education system framework or regular enhancement in curriculum. The aim of the Curriculum is not just to let learners obtain basic knowledge but to make them life-long learners. The purpose of this book is to nurture individuality and thus enhance one's innate potentials which help in increasing the self-study mode for students. This book strengthens knowledge and attitude related to subject. This book is designed in such a way that students can set their own goals and can improve their problem solving and thinking skills. This book is strictly as per the latest blueprint & syllabus for II PUC examination. It contains variety of questions from textbooks. It contains all types of questions necessary for exam oriented preparation. A synopsis is given for every chapter which contains important points from that chapter. Each chapter has high quality figures wherever required for better, fast and clear understanding. OSWAAL II PUC Question Bank is different and better in terms of High Quality Questions which are developed by 'OSWAAL Expert Panel' which ensures success in examination. The Question Bank is arranged Topic-Wise where each topic from every chapter is explained in detail. SCHEME OF VALUATION answer are highlighted to develop student understanding of Marking scheme. It also adheres to the blueprint which enables exam oriented preparation. Through OSWAAL Books students are taught how to think, not what to think. We at OSWAAL Books try to use quality content, standard language, creativity and high quality figures, which makes readers to enjoy it because we believe if our readers don't enjoy reading our book then there is no use in reading it at all. This is one of the reasons that the scope of this book extends from students to teachers. Teachers can use this book as a perfect teaching guide and students can use this book for good learning and practice. At last we would like to thank our authors, editors, reviewers and specially students whom we request to send suggestions regularly which will help in continuous improvement of this book and will make this book One of the Best. Wish you all Happy Learning. Publisher Why Topic Wise Question Banks Are A Better Choice than Previous Year s Papers? Question Bank 1. Chapter-wise and Topic wise resentation in Question Banks facilitates systematic study. 2. Question Banks can be referred to by the students throughout the year as well as at the completion of each chapter in school. 3. Question Banks, take into account any changes in syllabus or layout and hence are fully updated and aligned as per the latest specifications by the Board. Previous Years' Paper 1. Year Wise presentation restricts methodical flow of learning. 2. These can be referred to only after the completion of the full syllabus in school. 3. Previous Years' questions cannot be changed and hence fail to be adept with the latest Board specifications ( 4 )

6 1. CHAPTER - 1 INTRODUCTION TO ECONOMICS PART - A MICRO-ECONOMICS 10 Hours 1.1 Introduction The Concept of an Economy Basic Problems of an Economy Organisation of Economic Activities 1 Centrally Planned Economy Market Economy Mixed Economy Positive and Normative Economics Deductive and Inductive Methods of Economics Concepts of Micro and Macro-economics Uses of Microeconomics Limitations of Micro economics 1 2. CHAPTER 2 THEORY OF CONSUMER BEHAVIOUR 12 Hours 2.1 Introduction Utility Analysis Cardinal and Ordinal Approach Concepts of Utility Concept of Consumer Behaviour Budget Line and Budget Set Indifference Curve Analysis Meaning of Indifference Curve Map and Properties Optimal Choice of the Consumer 1 3. CHAPTER 3 DEMAND ANALYSIS 10 Hours 3.1 Introduction Demand Meaning and its determinants Demand Function Law of Demand Normal and Inferior goods, Substitutes and Complementaries Shifts in Demand curve Elasticity of Demand Concepts of Elasticity Price Elasticity, Income Elasticity, Cross Elasticity 3 4. CHAPTER 4 PRODUCTION AND COST 12 Hours 4.1 Introduction Concept of production function Isoquants, Marginal Rate of Technical Substitution Concept of Total Product, Average Product and Marginal Product Short Run and Long Run analysis of production The Law of Variable proportion Returns to scale Production Cost Concept of Cost Classification of Short run cost Long run cost 4 Other types of costs LATEST SYLLABUS (Issued by Department of PUE, Karnataka) ( 5 )

7 ...Cont. 5. CHAPTER - 5 THE THEORY OF THE FIRM AND PERFECT COMPETITION 12 Hours 5.1 Introduction Meaning of Market, Firm and Industry Market Structure Meaning and Features of Perfect Competitive Market Revenue Total Revenue, Average Revenue, Marginal Revenue The Relationship between Total Revenue, Average Revenue and Marginal Revenue under Perfect Competition Supply Short run and Long run supply curve of a firm Determinants of supply Law of Supply Price Elasticity of Supply Equilibrium under Perfect Competition 2 6. CHAPTER 6 IMPERFECT COMPETITIVE MARKETS (NON-COMPETITIVE MARKETS) 13 Hours 6.1 Introduction Monopoly Features, Total Revenue (TR), Average Revenue (AR) and Marginal Revenue 6 (MR) Short-run and Long-run Equilibrium 6.3 Monopolistic Competition Meaning, Features, Short-run equilibrium Oligopoly Characteristics Duopoly Meaning 1 PART B MACRO-ECONOMICS 7. CHAPTER 7 INTRODUCTION 07 Hours 7.1 The Concept of Macro-economics Emergence of Macro-economics Nature and Scope of Macro-economics Limitations of Macro-economics Differences between Micro and Macro-economics 1 8. CHAPTER 8 NATIONAL INCOME ACCOUNTING 09 Hours 8.1 Introduction Basic Concepts of National Income Circular flow of Income Some Macro-economic Identities Gross Domestic Product (GDP), Net Domestic Product (NDP), Gross National Product (GNP), Net National Product (NNP), Personal Income (PI), Personal Disposable Income (PDI), Nominal National Income, Real National Income and Per Capita Income Measurement of National Income Income method, Expenditure method and Product or Value Added method Difficulties in Measuring National Income National Income and Welfare 1 ( 6 )

8 ...Cont. 9. CHAPTER 9 MONEY AND BANKING 12 Hours 9.1 Introduction Definition and Functions of Money Demand for Money Transactionary motive, Precautionary motive and Speculative motive Supply of Money Measures of Money supply Commercial Banks Meaning and functions of Commercial Banks Credit creation by Commercial Banks Central Bank Meaning and Functions of RBI Monetary Policy of RBI Objectives and Instruments CHAPTER 10 CONSUMPTION AND INVESTMENT FUNCTION 8 Hours 10.1 Introduction Concepts of Consumption, Income, Savings and Investment Keynes Consumption Function Average Propensity to Consume (APC), Marginal Propensity to Consume (MPC) Importance and determinants of Consumption function Investment Function Meaning, types and determinants of Investments Multiplier CHAPTER 11 GOVERNMENT BUDGET AND THE ECONOMY 08 Hours 11.1 Introduction Budget Meaning, types and components Fiscal Policy Meaning, Objectivities Instruments of Fiscal Policy Public Expenditure Public Revenue Public Debt Deficit Financing Budget Deficits Meaning and types CHAPTER - 12 OPEN ECONOMY 07 Hours 12.1 Introduction Meaning of Closed and Open Economies Basic Concepts of Trade Unilateral, Bi-Lateral and Multilateral Trade Balance of Trade (BOT) and Balance of Payments (BOP) Foreign Exchange Market Meaning, Determination of exchange rate, Exchange rate systems 2 TOTAL 120 Hours ( 7 )

9 BLUEPRINT Chapter 1. Introduction to Micro Economics 2. Theory of Consumer Behaviour Latest Blue Print (Strictly based on the Latest II PUC Examination March 2016 ) Part A (VSA) (One Mark Question) Part B (SA-I) (Two Marks Question) Part C (SA-II) (Five Marks Question) Part D (LA-I) (Ten Marks Question) Part E (LA-II) (Five Marks Question) Total Marks Demand Analysis Production and Cost The Theory of the Firm and Perfect Competition 6. Imperfect competitive markets (Non-Competitive markets) 7. Introduction to Macro Economics 8. National Income Accounting Money and Banking Cosumption and Investment Function 11. Government Budget and the Economy Open Economy Total No. of Question 10 (10 1 = 10) 12 (12 2 = 24) 12 (12 5 = 60) 4 (4 10 = 40) 3 (3 5 = 15) 149 Questions to Attempt 10 (10 1 = 10) 10 (10 2 = 20) 8 (8 5 = 40) 1 (2 10 = 20) 2 (2 5 = 10) 100 Abbreviation - VSA - Very Short Answer Type, SA-I Short Answer Type - I SA-II Short Answer type - II, LA-I Short Answer Type - I LA-II Long Answer type - II ( 8 )

10 SOLVED PAPER II-PUC July-2016 Economics Sub. Code : 22(N/S) Time : 3:15 hrs Max. Marks : 100 General Instructions : 1. Write the question numbers legibly in the margin. 2. Answer for a question should be continuous. PART - A I. Answer the following questions in one sentence each : 10 1 = What is monotonic preference? 2. Qd = f (p) is the demand function. Identify the independent variable in it. 3. What is production function? 4. Who is a price taker in perfect competition? 5. What is duopoly? 6. Give the meaning of Macro economics. 7. What is deducted from GDP to arrive at NDP? 8. Who is the present Governor of the RBI? 9. What is consumption according to Keynes? 10. Give the meaning of Foreign Exchange Rate. PART - B II. Answer any ten of the following questions in four sentences each : 10 2 = Give the meaning of positive economics and normative economics. 12. Why an indifference curve slopes downward from left to right? 13. Name the factors of production. 14. Write any two differences between firm and industry. 15. Give four examples of monopolistic competitive industry. 16. Who is pioneer of macro economics? Name the book written by him. 17. Distinguish between final goods and intermediate goods. Give examples. 18. Name the various types of deposits of commercial banks. 19. What is the relationship between multiplier and marginal propensity to consume? 20. Mention the objectives of Government Budget. 21. Name the types of deficit budget. 22. Give the meaning of closed economy and open economy. PART - C III. Answer any eight of the following questions in fifteen sentences each : 8 5 = Briefly explain the centrally planned economy. 24. Explain the various limitations of micro economics. 25. Discuss the law of demand with the help of individual demand schedule and demand curve. 26. Examine the factors determining price elasticity of demand. 27. Explain the law of variable proportion with the help of table.

11 Oswaal Karnataka II PUC Question Bank With Complete Solutions For Economics For March 2017 Exams 51% OFF Publisher : Oswaal Books ISBN : Author : Panel Of Experts Type the URL : Get this ebook

Procedure to Answer 2 Marks Questions. Note

Procedure to Answer 2 Marks Questions 1. Give example wherever possible. 2. If a simple abbreviation is asked, like what is MC? expand and write a short paragraph about it. 3. Don t spend too much time