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# Sample Paper of Economics 2014 for class 12, CBSE. Paper No.4

Sample Paper – 2014

Class – XII

Subject – Economics

Time : 3 hrs                                                                                                                M. Marks. 100

General instructions

1. All questions in both the sections are compulsory.
2. All parts of question should be answered in one place.
3. Q1–5 and 17–21 are to be answered in one sentence only.
4. Q6–10 and 12–26 are to be answered in 60 words each.
5. Q11–13 and 27–29 are to be answered in 70 words each.
6. Q14–16 and 30–32 are to be answered in 100 words each.

PART A

1. Define planned economy.
2. Define Average Variable Cost.
3. Which of the following demand curve will have more elasticity
4. Draw a supply curve with price elasticity less than one.
5. Why TC curve and TVC curve are parallel?
6.  Distinguish between change in demand and change in quantity demanded.

OR

Explain any three exceptions to law of demand.

1. What is the elasticity of following demand curves
1. straight line parallel to x–axis
2. straight line parallel to y–axis.
3. On the midpoint of the straight line moving left to right
1. “An economy always produces on, but not inside a PPC.” Defend or Refute.
2. Complete the following

Output             TC       MC      AC

0                  50          –        ∞

5                  150      ___      ___

8                  ___      14        ___

5                  ___      ___      25

1. State any three factors that can cause shift in a supply curve.
2. What will be the impact on equilibrium price and equilibrium quantity, when
1. There is a rightward shift on demand curve
2. The demand is perfectly elastic and supply curve shifts.
1. Explain producer’s equilibrium with MR–MC approach with suitable schedule.
2. A consumer buys 100 units of a good X at a price of Rs.10 per unit. The price elasticity of demand for this good is 2. Price falls by Rs.2 per unit. How many good X will be now buy at this price?
3. Define elasticity of supply? Explain the methods of measuring it.

OR

Explain the relationship between TR and MR when one output is increased and remaining are unchanged

1. Explain any six factors affecting demand of the commodity?
2. Explain how in long run with free entry and exit, firms under perfect competition earn normal profits.

PART B

1. Define full employment equilibrium?
2. What do you mean by tax?
3. Define money.
4. What is value of multiplier, if MPC is  three times MPS
5. Why the value of MPC not be greater than one.
6. If C=200 + 0.8Y, Y = 2000 and I = 200, state whether the economy is in equilibrium or not.
7. Explain the flow of income in three sector economy.
8. How exchange rate is determined under flexible exchange rate system?
9. Explain briefly any 2 quantitative measures of monetary policy?

OR

Explain the clearing house function of central bank?

1. What do you mean by Capital receipts? What are its main components?
2. How does the use of money overcome the drawbacks of barter system.

OR

Classify money.

1. Distinguish between direct tax and Indirect tax?
2. Describe the components of current a/c of balance of payment.
3. Calculate (a) GNP at MP        (b) National disposable income
 Rs. crores Private final consumption expenditure 2000 Net Exports –30 Rent 100 Net domestic capital formation 770 Change in stock 30 Government final consumption expenditure 1100 Consumption of fixed capital 130 Net factor income to abroad 20 Current transfers from rest of the world 50

Or

1. Calculate value added by firm B
 Purchase by firm B from Firm A 30 Sales by Firm B to Firm C 25 Sales by Firm B to household 35 Opening stock of Firm B 5 Opening stock of Firm C 10 Closing stock of Firm B 10 Purchase of firm B from Firm D 15 Exports by Firm B 20

1. Find out personal disposable income from following data

 (Rs. in crores) National Income 1300 Corporate profit tax 15 National debt interest 10 Direct personal tax 40 Savings of the private corporate sector 25 Income from property and entrepreneurship accruing to government administrative departments 35 Current transfers from rest of the world 15 Savings of non-departmental public enterprises 5 Current transfers from government administrative departments 30

1. What is excess demand? What is its impact on output, employment and prices? Give any one monetary and one fiscal measure to combat it.

OR

Distinguish between inflationary and deflationary gap? Show inflationary gap on a diagram. Can this gap exist at equilibrium level of income? Explain.

Paper Submitted by: Vikas bhatia

Email : vikasbhatia_ls@yahoo.co.in

Mob No. : 9837685866