Sample Paper of Economics 2014 for class 12, CBSE. Paper No.1

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.

SECTION A

1. What is the relationship between TR, price and quantity sold? (1)
2. How is total utility derived from marginal utility? (1)
3. What is a production function? (1)
4. Under which market form, a firm is a price taker? (1)
5. What do you mean by patent rights? (1)
6. Why does the problem of choice arise? (3)
7. Why is the short run marginal cost curve U shaped? (3)
8. Draw a negatively sloped demand curve joining the two axis. Mark three points on this curve showing price elasticity equal to (i) Zero (ii) Infinity (iii) One.                                                   (3)
9. Why does demand curve slopes downward?

OR

A consumer buys 100 units of good X at Rs. 5 per unit. The price elasticity of demand for the good is 2. At what price will he willing to buy 140 units of the good? Distinguish between the profit maximizing conditions under monopoly and perfect competition.                                              (3)

10. From the following information about a firm, find out– (4)
11. TFC of producing 3 units
12. The least average cost level of output
13. AVC of producing 4 units
14. MC of producing 6th unit

11. What is the nature of revenue curves of perfectly competitive firm? (4)
12. Distinguish between inferior good and normal good. Explain the effect of change in income on each giving suitable example. (4)
13. Explain any four features of monopolistic competition. (4)
14. Explain the effect of change in price of factor input, technical progress and change in number of firms upon supply curve (6)
15. Define consumer’s equilibrium. Explain it with the help of indifference approach.                                                                                (6)

OR

Giving reasons, state whether the following statements are true or false

1. When there is diminishing return to factor, total product decreases.
2. When MR is zero, AR is constant.
3. When MC is rising, AC also rises.
4. Show using diagram the effect upon equilibrium price when there is simultaneous decrease in both demand and supply. (6)

SECTION B

17. Mention two components of government budget. (1)
18. What is deficit financing? (1)
19. What monetary system does India follow? (1)
20. Give^‘ two examples of non-debt capital receipts. (1)
21. What is foreign exchange rate? (1)
22. Briefly describe the social and political cause for dis-equilibrium in the BOP. (3)
23. Explain the inconveniences of Barter Exchange. (3)
24. Differentiate between plan expenditure and non-plan expenditure. (3)
25. ‘Balance of payment always balances’. Elaborate. (3)
26. From the following data calculate national income:           (3)

27. Explain the significance of money. (4)
28. What is the difference between APC and MPC? Does MPC affect the level of income?

OR

• If disposable income is Rs.500 and savings is Rs.100, find APC.
• Calculate change in income when MPC =0.8 and change in investment is Rs.1000                                                                                     (4)

29. Explain the impact of excess demand on output, prices and employment.(4)
30. Explain the circular flow of income in 4 sector economy. (6)
31. Explain the determination of equilibrium level of income using both AD–AS and I–S approach? (6)
32. With the help of following data, calculate: (6)
33. GDP at MP
34. Private income
35. Personal income