+2 / 12th Std / Plus Two : Economics Sample Question Paper www.cbse.nic.in

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Document Described : Economics Question Paper, CBSE Question Paper

Sample Question Paper – I
Economics
Class – XII
Time – 3 Hours. Maximum Marks – 100
Instructions :
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Question Nos. 1-5 and 17-21 are very short-answer questions carrying 1 mark each.They are required to be answered in one sentence each.

http://www.cbse.nic.in/curric~1/sample2012.htm
http://www.cbse.nic.in/curric~1/sqp2012/SQP-XII%20%28HPGE-2011%29.pdf

4. Question Nos. 6-10 and 22-26 are short-answer questions carrying 3 marks each.
Answer to them should not normally exceed 60 words each.
5. Question Nos. 11-13 and 27-29 are also short-answer questions carrying 4 marks each.
Answer to them should not normally exceed 70 words each.
6. Question Nos. 14-16 and 30-32 are long-answer questions carrying 6 marks each.
Answer to them should not normally exceed 100 words each.
7. Answer should be brief and to the point and the above word limit be adhered to as far
as possible.

Section A :
1. State two features of resources that give rise to an economic problem. (1)
2. What happens to total expenditure on a commodity when its price falls and its demand is price elastic?(1)
3. What happens to equilibrium price of a commodity if there is an ‘increase’ in its demand and ‘decrease’ in its supply?(1)
4. Give the meaning of equilibrium price. (1)
5. What is meant by cost in economics? (1)
6. State any three factors that cause an ‘increase’ in demand of a commodity. (3)
7. What will be the price elasticity of supply at a point on a positively sloped, straight line supply curve?(3)
8. Explain the shape of a production possibility frontier.
OR
Explain the Central problem “how to produce.”(3)
9. How does the nature of a commodity influence its price elasticity of
demand?(3)
10. Explain the changes that will take place in the market for a commodity if the prevailing market price is less than the equilibrium price.(3)
11. Calculate the price elasticity of demand for a commodity when its price
increases by 25% and quantity demanded falls from 150 units to 120 units.(4)
12. Explain the relation between marginal revenue and average revenue when a firm is able to sell more quantity of output
(i) at the same price.
(ii) only by lowering the price.
OR
Explain the effect of the following on the supply of a commodity:
(a) Fall in the prices of factor inputs.
(b) Rise in the prices of other commodities.(4)
14. Why does the difference between Average Total Cost and Average Variable Cost decrease with an increase in the level of output? Can these two be equal at some level of output? Explain.(6)
15. Explain the implications of the following features of perfect competition:
(a) large number of buyers and sellers
(b) freedom of entry and exit of firms(6)
16. For a consumer to be in equilibrium why must marginal rate of substitution be equal to the ratio of prices of the two goods?
OR
Why is the consumer in equilibrium when he buys only that combination of
the two goods that is shown at the point of tangency of the budget line with an indifference curve? Explain.
For Blind Candidates in lieu of choice question of question No. 16
Explain how a consumer consuming two commodities X and Y attains
equilibrium under the utility approach.(6)

Section B :
17. Give the meaning of involuntary unemployment. (1)
18. What is the relationship between marginal propensity to save and marginal propensity to consume?(1)
19. The price of 1 US Dollar has fallen from Rs 50 to Rs 48. Has the Indian
currency appreciated or depreciated? (1)
20. State the two components of money supply. (1)
21. What is meant by cash reserve ratio? (1)
22. From the following data relating to a firm, calculate its net value added at factor cost : (Rs in Lacs)
(i) Subsidy 40
(ii) Sales 800
(iii) Depreciation 30
(iv) Exports 100
(v) Closing stock 20
(vi) Opening stock 50
(vii) Intermediate purchases 500
(viii) Purchase of machinery for own use 200
(ix) Import of raw material 60 (3)
23. Give the meaning of Nominal GDP and Real GDP. Which of these is the
indicator of economic welfare? (3)
24. ‘Machine’ purchased is always a final good.’ Do you agree? Give reasons for your answer. (3)
25. Explain the effect of depreciation of domestic currency on exports.
OR
Explain the effect of appreciation of domestic currency on imports. (3)
26. Distinguish between the current account and capital account of balance of payments account. Is import of machinery recorded in current account or capital account? Give reasons for your answer. (3)
27. What is a government budget? Give the meaning of:
a) Revenue deficit
b) Fiscal deficit(4)
28. Categories the following government receipts into revenue and capital
receipts. Give reasons for your answer.
(a) Receipts from sale of shares of a public sector undertaking.
(b) Borrowings from public.
(c) Profits of public sector undertakings.
(d) Income tax received by government. (4)
29. Explain the meaning of equilibrium level of income and output using
savings and investment approach. Use a diagram.
OR
Complete the following table :
Income Saving Marginal Propensity Average Propensity
to Consume to Consume
0 -20 - -
50 - 10 _______ _________
100 0 _______ _________
150 30 _______ _________
200 60 _______ _________

For Blind Candidates in lieu of Question 29
Explain the meaning of equilibrium level of income and output using
savings and investment approach.
(4)
30. Explain the process of money creation by commercial banks. (6)
31. Draw a straight line consumption curve. From it derive a savings curve
explaining the process. Show on this diagram:
(a) the level of income at which Average Propensity to Consume is equal to one.
(b) a level of income at which Average Propensity to Save is negative.

For Blind Candidates in lieu of Question 31
Explain the meaning of underemployment equilibrium. State two policy
measures that the government can take to make the economy reach full
employment equilibrium. (6)
32. From the following data calculate National Income by Income and
Expenditure methods :
(Rs crores)
(i) Government final consumption expenditure 100
(ii) Subsidies 10
(iii) Rent 200
(iv) Wages and salaries 600
(v) Indirect taxes 60
(vi) Private final consumption expenditure 800
(vii) Gross domestic capital formation 120
(viii) Social security contributions by employers’ 55
(ix) Royalty 25
(x) Net factor income paid to abroad 30
(xi) Interest 20
(xii) Consumption of fixed capital 10
(xiii) Profit 130
(xiv) Net exports 70
(xv) Change in stock 50
OR
Calculate Gross National Disposable Income and Personal Income from the
given data:
(Rs crores)
(i) Personal tax 120
(ii) Net indirect tax 100
(iii) Corporation tax 90
(iv) National income 1000
(v) Net factor income from abroad 5
(vi) Consumption of fixed capital 50
(vii) National debt interest 70
(viii) Retained earnings of private corporate sector 40
(ix) Net current transfers to the rest of the world (-)20
(x) Current transfers from government 30
(xi) Share of government in national income 80

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