CBSE Class 12 Economics VBQs for Micro Economics

CBSE Class 12 Economics Value Based Questions (VBQs) for Micro Economics. Prepared exclusively for CBSE examinations. Based on CBSE and CCE guidelines. The students should practice these Question Papers to gain perfection which will help him to get more marks in CBSE examination. Please refer to more CBSE Class 12 question papers in other links. The CBSE Question papers are prepared based on trend in past examinations and expected questions in CBSE exams. Its always recommended by CBSE to practice the papers released by CBSE to get better exams in CBSE exams. CBSE Last Year Question Papers for class 12 for final/ term/ SA1/ SA2 Examinations conducted by Central Board of Secondary Education for all CBSE affiliated schools in India and abroad. Please refer to more CBSE Class XII sample papers, question papers, HOTs etc in other links.

MICRO ECONOMICS

Q1.Massive unemployment will shift the PPF to the left. Defend or refute.

Ans. The given statement is refuted .Massive unemployment does not decrease the capacity of economy to produce. So, there will be no shift of PPF. However, economy will operate at some point inside the PPF, due to unutilisation of human resources.

Q2.What is the opportunity cost of an input which has no alternative use?

Ans. The opportunity cost of such input is zero.

Q3.Utility is directly linked with the usefulness of a commodity. Is it true or false?Give reason.

Ans. False. A commodity may not be useful, yet it may have utility for a particular person. For example, chewing tobacco is harmful for health ,yet many people derive high degree of utility from it.

Q4.In order to encourage tourism in Goa, Indian Airlines reduces the air fare to Goa.How will it affect market demand curve for air travel to Goa ?

Ans. There will be a downward movement along the same market demand curve for air travel to Goa. It happens because of decrease in the air fare.

Q5. At certain level of output ,the marginal cost of a firm is above its marginal revenue .Can this be its equilibrium output ?

Ans.No,it can not be its equilibrium output because the marginal cost exceeds the marginal revenue. The firm is running at a loss.

Q6. Trendz produces both jeans and shirts .How will an increase in the price of jeans affect the supply curve of shirts ?

Ans. An increase in the price of jeans will make the production of jeans more attractive . As a result ,Trendz will shift its resources from shirts to jeans.It will shift the supply curve of shirts towards left.

Q7. A severe drought results in a drastic fall in the output of wheat. Analyze how it will affect the market price of wheat.

Ans. Market price of wheat will increase(due to decrease in supply).

Q8.What will be the effect on equilibrium price and equilibrium quantity of telephone instruments ,if China exports a large number of telephone instruments to India.

Ans. Equilibrium price will fall and equilibrium quantity will rise(due to increase in supply).

Q9. ‘Both , microeconomics and macroeconomics have same degree of aggregation’.Defend or refute.

Ans. The given statement is refuted.

●Micro economics involves limited degree of aggregation.For example, market demand (micro concept)is derived by aggregating individual demands of all the buyers in particular market.

●On the other hand , macro economics involves the highest degree of aggregation. For example,aggregate demand(macro concept)is derived for the entire economy. It means ,micro economics and macro economics differ in degree of aggregation.

 

Please refer to attached file for CBSE Class 12 Economics VBQs for Micro Economics

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