Class XII (Economics)

Holiday Home work
Sub.: Economics
Class XII

I
1. With the help an hypothetical table draw a production possibility curve and show the following situations
a) Full utilization of resources
b) Economic growth
c) Decrease in resources
d) Underutilization of resources

2. What is impact of the following on the demand curve for good X? Give reasons
A) Consumer income rises and good X is a normal good.
B) Consumer income falls and good X is an inferior good.
C) Price of complementary good Y rises.

3. Make demand curves showing
a) Perfectly elastic demand
b) Perfectly in elastic demand
c) Unitary elastic demand What is the significance of unitary elastic demand

4. Given the market price of a good, how does a consumer decide as to how many units of that good to buy? Explain.

5. Explain why MRS must equal MRE when a consumer is in equilibrium.

6. Define budget line and slope of the budget line.

7. A consumer spends Rs. 80 on a commodity at a price of Rs 1 per unit and Rs. 100 at a price of Rs. 2 per unit. What is the price elasticity of demand.

8. When price of a good falls from Rs. 5 to Rs. 3 per unit, its demand rises by 40%calculate its price elasticity of demand.

9. What is the price elasticity of supply of a commodity whose straight line supply curve passes through the origin forming an angle of 750?

10. Explain the effects of a fall in prices of other goods on a commodity’s equilibrium price and equilibrium quantity. Use diagram.

II

In a group of four, students will prepare an e-project (Power Point, flash, photostory or any other software) on the current Global Financial Crisis with emphasis on the following:

1. The great depression of 1929

2. The current economic recession:

Definition and causes

3. Impact of US recession in India.

4. Fiscal stimulus Package and sops for exporters announced by the government (such as sharp cut in excise duties, service tax, increased plan spending) and monetary policy measures (such as interest rate cuts by the central bank) to tide over the ripple of recession.

· Visit industries / companies and find out the effect of the economic slowdown on:
a) Sales and their selling tactics for difficult times.
b) Consumers’ demand
c) Job market

· Find out about the measures adopted by different sectors to fight the economic down turn and the right amount of innovation needed to revive growth in the economy.

· The Project will be evaluated on the basis of appropriate content/ information, relevance and presentation.

· Mention sources of information such as newspapers, magazines, encyclopedia, books, websites.