Sample Paper of Economics 2014 for class 12, CBSE. Paper No.3

Sample Paper – 2010

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 consumer goods.
2. Define Average Cost.
3. State law of demand.
4. Draw a supply curve with price elasticity more than one.
5. Why TC curve and TVC curve are parallel?
6. State any three factors that can cause shift in a demand curve.

OR

Why does the demand curve slopes negatively downwards.

1. Distinguish between change in supply and change in quantity supplied.
2.  “Massive unemployment shifts the PPC to the left.” Defend or Refute.
3. Complete the following

Output             TC       MC      AC

0                  100        –        ∞

5                  ___      40        ___

8                  ___      ___      48

5                  600      ___      ___

1. What is the elasticity of following demand curves

1. straight line parallel to y–axis.
2. On the midpoint of the straight line moving left to right
3. straight line parallel to x–axis

1. What will be the impact on equilibrium price and equilibrium quantity, when

1. There is a rightward shift on supply curve
2. The demand is perfectly inelastic and supply curve shifts.

1. Explain producer’s equilibrium with TR–TC 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 its various degrees.

OR

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

1. Explain any six factors affecting elasticity of 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 Government budget?
3. Define money supply.
4. What is value of multiplier, if MPC is  four times MPS
5. Why the value of MPS not be greater than one.
6. If C=200 + 0.8Y, Y = 2500 and I = 200, state whether the economy is in equilibrium or not.
7. Differentiate between Private Income and National Income
8. How exchange rate is determined under flexible exchange rate system?
9. Explain briefly any 2 qualitative measures of monetary policy?

OR

Explain the lender of last resort function of central bank?

1. What do you mean by revenue receipts? What are its main components?
2. How does the use of money overcome the drawbacks of barter system.
3. What do you mean by budget receipts? Explain its two types.
4. Describe the components of capital a/c of balance of payment.

OR

• Differentiate between balance of trade and balance of payments

1. Calculate (a) GNP at MP        (b) National disposable income

Or

1. What is deficient 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 deflationary gap on a diagram. Can this gap exist at equilibrium level of income? Explain.

1. Calculate value added by firm A

1. Find out personal disposable income from following data

Paper Submitted by: Vikas bhatia

Email : vikasbhatia_ls@yahoo.co.in

Mob No. : 9837685866