NEB Class 12 · Past paper
The complete NEB Class 12 2081 exam paper for Economics, all 25 questions with solved model answers.
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What is scarcity?
Scarcity is the central economic problem which means that the resources available to satisfy human wants are limited in supply relative to the unlimited and ever-growing wants of people. A commodity is scarce when its supply is less than...
If total revenue of a firm is 5Q^2-4Q+10 and total cost is 4Q^2-6Q+20, find the total profit.
Given: Total revenue $TR = 5Q^2 - 4Q + 10$ and total cost $TC = 4Q^2 - 6Q + 20$. Formula: Total profit $\pi = TR - TC$. $$ \begin{aligned} \pi &= (5Q^2 - 4Q + 10) - (4Q^2 - 6Q + 20) \ &= 5Q^2 - 4Q + 10 - 4Q^2 + 6Q - 20 \ &= Q^2 + 2Q - ...
What is internal borrowing?
Internal borrowing (internal public debt) is the loan raised by the government from within the country, that is, from its own citizens, banks, financial institutions and organisations, through instruments such as treasury bills and devel...
Write any one difference between balance of trade and balance of payment.
One difference between the balance of trade and the balance of payments is that the balance of trade records only the visible (physical) goods exported and imported, whereas the balance of payments is wider and records all economic trans...
Mention any two measures to reduce poverty.
Two measures to reduce poverty in Nepal are: (i) raising production, productivity and employment by promoting agriculture, labour-intensive industries and self-employment; and (ii) running targeted poverty-reduction and social-security p...
Write any two principles of WTO.
Two important principles of the World Trade Organisation (WTO) are: (i) the Most Favoured Nation (MFN) principle, under which a member country must extend to all other members any trade advantage it grants to one member, ensuring non-dis...
Mention any two advantages of remittance in Nepal.
Two advantages of remittance in Nepal are: (i) it is the largest single source of foreign currency and strongly supports the balance of payments and foreign exchange reserves; and (ii) it raises household income and consumption and helps...
Which goal of sustainable development is related to reduce inequalities?
The sustainable development goal related to reducing inequalities is Goal 10: Reduced Inequalities, which aims to reduce inequality within and among countries.
What is statistics in singular sense?
In the singular sense, statistics is the science (and art) of collecting, organising, presenting, analysing and interpreting numerical data so that valid conclusions can be drawn and sound decisions taken. In this sense it refers to stat...
Why primary data collection is more expensive than secondary data collection? Mention any one reason.
Primary data collection is more expensive than secondary data collection because primary data are collected for the first time, directly from the field for a specific purpose, which requires spending on the design of questionnaires, fiel...
If arithmetic mean = 22 and mode = 25, find the value of median.
Given: Arithmetic mean $= 22$ and mode $= 25$. Formula: By the empirical relation between mean, median and mode, $\text{Mode} = 3,\text{Median} - 2,\text{Mean}$, which gives: $$ \begin{aligned} \text{Median} &= \frac{\text{Mode} + 2,...
What is the economic system adopted by Nepal? Explain any four features. [1+4]
Nepal has adopted a mixed economic system, in which both the private sector and the public sector coexist and the state guides the economy while allowing private enterprise. Its main features are: - Coexistence of public, private and coo...
What is specialization? Explain any four advantages. [1+4] (Or of Q12)
Specialisation means concentrating on a particular task, occupation or product in which a worker, firm or region is most efficient, and is closely linked with the division of labour. Its main advantages are: - Higher productivity and out...
Explain the Ricardian theory of rent. [5]
Rent is the reward paid for the use of land. According to David Ricardo, rent is the payment made for the use of the original and indestructible powers of the soil. Ricardo explained rent as arising from differences in the fertility and ...
Answer based on the given table (units sold with price 35, 30, 25, 20): complete the table for TR, AR and MR, and draw the MR and AR curves. [3+2]
Completing the table: here average revenue equals price, total revenue is $TR = P \times Q$, and marginal revenue is $MR = \dfrac{\Delta TR}{\Delta Q}$. Units sold (Q) Price = AR (Rs) TR = P×Q (Rs) MR (Rs) ------------ 1 35 35 35 2 30 60...
Let cost function (TC) = 100+12Q^2 and demand function (P) = 200-8Q. Find output and price at equilibrium. [5]
Given: $TC = 100 + 12Q^2$ and demand (price) function $P = 200 - 8Q$. Formula: the firm is in equilibrium where marginal cost equals marginal revenue, $MC = MR$. First find TR, MR and MC. $$ \begin{aligned} TR &= P \times Q = (200 - 8Q)Q...
Explain any five roles of banking system in the economic development of the country. [5]
The banking system plays the following roles in the economic development of a country: - Mobilisation of savings: banks collect the scattered small savings of the people through various deposit schemes. - Capital formation: by turning sa...
Write any five suggestions to reduce inequality in Nepal and explain it. [5]
Suggestions to reduce inequality of income in Nepal include: - Progressive taxation: levy higher tax rates on higher incomes and wealth and use the revenue for the poor, so that the gap between rich and poor narrows. - Land and resource ...
Describe any two national objectives and any three national strategies of current plan of Nepal. [2+3]
The current periodic plan of Nepal is the Sixteenth Plan (2024/25 to 2028/29), guided by the vision of good governance, social justice and prosperity. National objectives include: achieving rapid, sustainable and employment-oriented econ...
Solve based on the average wage rates and standard deviation of two similar companies X (mean 40, SD 13) and Y (mean 50, SD 14): (a) Find the coefficient of variation for each company; (b) Which company's wage rate is more consistent and why? [3+2]
Given: Company X has average wage rate $\bar{x} = 40$ and standard deviation $\sigma = 13$; Company Y has $\bar{x} = 50$ and $\sigma = 14$. Formula: coefficient of variation $\text{C.V.} = \dfrac{\sigma}{\bar{x}} \times 100$. For Company...
Find the index number by using Paasche's method from the given data (2020 and 2024) and interpret the result. [4+1] (Or of Q19)
Given: prices and quantities for the base year 2020 ($p_0, q_0$) and the current year 2024 ($p_1, q_1$):
| Commodity | $p_0$ | $q_0$ | $p_1$ | $q_1$ | $p_1 q_1$ | $p_0 q_1$ |
|---|---|---|---|---|---|---|
| A | 8 | 20 | 10 | 25 | 250 | 200 |
| B | 9 | 18 | 12 | 20 | 240 | 180 |
| C | 7 | 15 | 11 | 12 | 132 | 84 |
| D | 6 | 22 | 9 | 30 | 270 | 180 |
| Total | 892 | 644 |
Formula: Paasche's price index uses current-year quantities as weights.
$$ \begin{aligned} P_{01}^{P} &= \frac{\sum p_1 q_1}{\sum p_0 q_1} \times 100 \ P_{01}^{P} &= \frac{892}{644} \times 100 \ &= 138.51 \end{aligned} $$
Answer: the Paasche price index is $138.51$. This means that, on average, the prices of the commodities in 2024 are about $38.51%$ higher than in the base year 2020.
Answer based on the given cost table (TFC = 50, TVC given for output 0 to 8): complete the table (TC, AC, MC) and draw the average and marginal cost curves. [3x2+2]
Given: $TFC = 50$ at every level of output. Using $TC = TFC + TVC$, $AC = \dfrac{TC}{Q}$ and $MC = \dfrac{\Delta TC}{\Delta Q}$ (change in TVC), the completed table is: Output (Q) TFC TVC TC AC MC ------------------ 0 50 0 50 - - 1 50 10...
Explain the classification of government expenditure with reference of Nepal. [8]
In the context of Nepal, government (public) expenditure is broadly classified in the federal budget into three heads: - Recurrent expenditure: spending on the day-to-day running of the government, such as salaries and wages, pensions an...
Examine the major problems of Nepalese foreign trade. [8]
The major problems of Nepalese foreign trade are: - Persistent and widening trade deficit, because the value of imports is many times that of exports. - Over-dependence on a single country (India) for both exports and imports, which make...
Evaluate the advantages and disadvantages of foreign employment of Nepal. [8] (Or of Q22)
Foreign employment means going abroad to work for wages, and it has become one of the most important economic activities of Nepal. Advantages: - Remittance income: it is the largest single source of foreign currency and strongly supports...
Given: Total revenue and total cost . Formula: Total profit . $$ \begin{aligned} \pi &= (5Q^2 - 4Q + 10) - (4Q^2 - 6Q + 20) \ &= 5Q^2 - 4Q + 10 - 4Q^2 + 6Q - 20 \ &= Q^2 + 2Q - ...
Given: Arithmetic mean and mode . Formula: By the empirical relation between mean, median and mode, , which gives: $$ \begin{aligned} \text{Median} &= \frac{\text{Mode} + 2,...
Completing the table: here average revenue equals price, total revenue is , and marginal revenue is . Units sold (Q) Price = AR (Rs) TR = P×Q (Rs) MR (Rs) ------------ 1 35 35 35 2 30 60...
Given: and demand (price) function . Formula: the firm is in equilibrium where marginal cost equals marginal revenue, . First find TR, MR and MC. $$ \begin{aligned} TR &= P \times Q = (200 - 8Q)Q...
Given: Company X has average wage rate and standard deviation ; Company Y has and . Formula: coefficient of variation . For Company...
Given: prices and quantities for the base year 2020 () and the current year 2024 ():
| Commodity | ||||||
|---|---|---|---|---|---|---|
| A | 8 | 20 | 10 | 25 | 250 | 200 |
| B | 9 | 18 | 12 | 20 | 240 | 180 |
| C | 7 | 15 | 11 | 12 | 132 | 84 |
| D | 6 | 22 | 9 | 30 | 270 | 180 |
| Total | 892 | 644 |
Formula: Paasche's price index uses current-year quantities as weights.
Answer: the Paasche price index is . This means that, on average, the prices of the commodities in 2024 are about higher than in the base year 2020.
Given: at every level of output. Using , and (change in TVC), the completed table is: Output (Q) TFC TVC TC AC MC ------------------ 0 50 0 50 - - 1 50 10...