UNISON WORLD SCHOOL, DEHRADUN

1st Unit Test (2020 -2021) SUBJECT:

Economics
Grade – XII Section
Time: 60 Minutes Max Marks: 25
General Instructions:
• Read the question paper carefully.
• Attempt all the questions.

Q1. Choose the correct option:

(a) If a good is free, when will a consumer stop wanting to buy the good? [1]
(i) Once the total utility equals zero
(ii) At the quantity where marginal utility is at its maximum
(iii) Once the marginal utility equals zero
(iv) When marginal utility is negative
(b) A change in quantity demanded is shown: [1]
(i) at various points on the demand curve
(ii) with a new demand curve drawn above or below the original demand
curve
(iii) with a vertical line
(c) Of the factors given below, which factor does not influence change in demand: [1]
(i) Changes in the price of the goods
(ii) Income
(iii) Taste and preference
(iv) Advertisement
(d) People come to expect that the price of a gallon of gasoline will rise next week. As a [1]
result,

(i) next week's supply of gasoline decreases.

(ii) the price of a gallon of gasoline falls today.
(iii) today's supply of gasoline increases.
(iv) today's demand for gasoline increases.
Q2. (a) How is contraction different from decrease in demand for a commodity? [3]
(b) ‘Indifference curve shows combination of two goods giving same level of satisfaction [3]
to the consumer.’ In the light of the above statement explain the properties of IC
depicting the above statement.
 (c) [3]

Explain the cases where the demand curve can be shaped as shown above.

Q3. (a) [6]

Explain the concept of consumer’s equilibrium given by the economist shown above.

(b) Throw light on the factors of demand function. [6]