CBSE Past Year Paper - 2018 (Set - 3) | Economics for Grade 12 PDF Download

 Page 1


  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
     
 
CBSE 
Class XII Economics 
All India Board Paper Set 3 – 2018 
 
Time: 3 hrs. Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 11 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 24 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,` the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions No. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark 
each. They are required to be answered in one sentence. 
(iv) Questions No. 5 – 6 and 17 – 18 are short answer questions carrying 3 marks each. 
Answers to them should normally not exceed 60 words each. 
(v) Questions No. 7 – 9 and 19 – 21 are also short answer questions carrying 4 marks 
each. Answers to them should normally not exceed 70 words each. 
(vi) Question number 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks 
each. Answers to them should normally not exceed 100 words each.  
(vii)  Answers should be brief and to the point and the above word limits should be adhered 
to as far as possible. 
 
SECTION A 
 
1. When the total fixed cost of producing 100 units is ` 30and the average variable cost 
`3, total cost is : (Choose the correct alternative)   (1) 
(a) ` 3 
(b) ` 30 
(c) ` 270 
(d) ` 330  
 
 
 
Page 2


  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
     
 
CBSE 
Class XII Economics 
All India Board Paper Set 3 – 2018 
 
Time: 3 hrs. Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 11 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 24 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,` the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions No. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark 
each. They are required to be answered in one sentence. 
(iv) Questions No. 5 – 6 and 17 – 18 are short answer questions carrying 3 marks each. 
Answers to them should normally not exceed 60 words each. 
(v) Questions No. 7 – 9 and 19 – 21 are also short answer questions carrying 4 marks 
each. Answers to them should normally not exceed 70 words each. 
(vi) Question number 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks 
each. Answers to them should normally not exceed 100 words each.  
(vii)  Answers should be brief and to the point and the above word limits should be adhered 
to as far as possible. 
 
SECTION A 
 
1. When the total fixed cost of producing 100 units is ` 30and the average variable cost 
`3, total cost is : (Choose the correct alternative)   (1) 
(a) ` 3 
(b) ` 30 
(c) ` 270 
(d) ` 330  
 
 
 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    2 
 
2. When the Average Product (AP) is maximum, the Marginal Product (MP) is:  
(Choose the correct alternative) (1) 
(a) Equal to AP 
(b) Less than AP 
(c) More than AP  
(d) Can be any one of the above  
 
3. State one example of positive economics. (1) 
 
4. Define fixed cost. (1) 
 
5. Explain the central problem of “choice of technique”. (3) 
OR 
Explain the central problem of “for whom to produce”. 
 
6. What is meant by inelastic demand? Compare it with perfectly inelastic demand. (3) 
 
7. When the price of a commodity changes from `4 per unit to `5 per unit, its market 
supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is 
supply elastic? Given reason. (4) 
 
8. What is meant by price ceiling? Explain its implications. (4) 
 
9. Given the price of a good, how will a consumer decide as to how much quantity to buy 
of that good? Explain. (4) 
OR 
What is Indifference Curve? State three properties of indifference curves. 
 
10. State three characteristics of monopolistic competition. Which of the characteristics 
separates it from perfect competition and why? (6) 
OR 
Explain the implications of the following: 
(a) Freedom of entry and exit of firms under perfect competition 
(b) Non-price  competition under oligopoly 
 
11. Explain the conditions of consumer’s equilibrium using Indifference Curve Analysis. (6) 
 
12. Explain the conditions of producer’s equilibrium in terms of marginal revenue and 
marginal cost.  (6)  
 
 
 
 
Page 3


  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
     
 
CBSE 
Class XII Economics 
All India Board Paper Set 3 – 2018 
 
Time: 3 hrs. Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 11 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 24 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,` the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions No. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark 
each. They are required to be answered in one sentence. 
(iv) Questions No. 5 – 6 and 17 – 18 are short answer questions carrying 3 marks each. 
Answers to them should normally not exceed 60 words each. 
(v) Questions No. 7 – 9 and 19 – 21 are also short answer questions carrying 4 marks 
each. Answers to them should normally not exceed 70 words each. 
(vi) Question number 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks 
each. Answers to them should normally not exceed 100 words each.  
(vii)  Answers should be brief and to the point and the above word limits should be adhered 
to as far as possible. 
 
SECTION A 
 
1. When the total fixed cost of producing 100 units is ` 30and the average variable cost 
`3, total cost is : (Choose the correct alternative)   (1) 
(a) ` 3 
(b) ` 30 
(c) ` 270 
(d) ` 330  
 
 
 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    2 
 
2. When the Average Product (AP) is maximum, the Marginal Product (MP) is:  
(Choose the correct alternative) (1) 
(a) Equal to AP 
(b) Less than AP 
(c) More than AP  
(d) Can be any one of the above  
 
3. State one example of positive economics. (1) 
 
4. Define fixed cost. (1) 
 
5. Explain the central problem of “choice of technique”. (3) 
OR 
Explain the central problem of “for whom to produce”. 
 
6. What is meant by inelastic demand? Compare it with perfectly inelastic demand. (3) 
 
7. When the price of a commodity changes from `4 per unit to `5 per unit, its market 
supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is 
supply elastic? Given reason. (4) 
 
8. What is meant by price ceiling? Explain its implications. (4) 
 
9. Given the price of a good, how will a consumer decide as to how much quantity to buy 
of that good? Explain. (4) 
OR 
What is Indifference Curve? State three properties of indifference curves. 
 
10. State three characteristics of monopolistic competition. Which of the characteristics 
separates it from perfect competition and why? (6) 
OR 
Explain the implications of the following: 
(a) Freedom of entry and exit of firms under perfect competition 
(b) Non-price  competition under oligopoly 
 
11. Explain the conditions of consumer’s equilibrium using Indifference Curve Analysis. (6) 
 
12. Explain the conditions of producer’s equilibrium in terms of marginal revenue and 
marginal cost.  (6)  
 
 
 
 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    3 
 
SECTION B 
 
13. Define money supply. (1) 
 
14. Which of the following affects national income? (Choose the correct alternative) (1) 
(a) Goods and Service tax 
(b) Corporation tax 
(c) Subsidies  
(d) None of the above 
 
15. Why does consumption curve not start from the origin? (1) 
 
16.  The central bank can increase availability of credit by: (Choose the correct alternative)(1) 
(a) Raising repo rate 
(b) Raising reverse repo rate  
(c) Buying government securities 
(d) Selling government securities  
  
17. Given normal income, how can we find real income? Explain. (3) 
OR 
Which among the following are final goods and which are intermediate goods? Give 
reasons. 
(a) Milk purchased by a tea stall  
(b) Bus purchased by a school  
(c) Juice purchased by a student from the school canteen 
 
18. Define multiplier. What is the relation between marginal propensity to consume and 
multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4. (3) 
 
19. What is meant by inflationary gap? State three measures to reduce this gap. (4) 
OR 
What is meant by aggregate demand? State its components. 
 
20. The value of marginal propensity to consume is 0.6 and initial income in the economy 
is `100 crores. Prepare a schedule showing Income, Consumption and Saving. Also 
show the equilibrium level of income by assuming autonomous investment of ` 80 
crores. (4) 
 
21. Explain the role of the Reserve Bank of India as the “lender of last resort”. (4) 
 
22. (a) Explain the impact of rise in exchange rate on national income. (6) 
 
(b) Explain the concept of ‘deficit’ in balance of payments. 
Page 4


  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
     
 
CBSE 
Class XII Economics 
All India Board Paper Set 3 – 2018 
 
Time: 3 hrs. Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 11 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 24 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,` the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions No. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark 
each. They are required to be answered in one sentence. 
(iv) Questions No. 5 – 6 and 17 – 18 are short answer questions carrying 3 marks each. 
Answers to them should normally not exceed 60 words each. 
(v) Questions No. 7 – 9 and 19 – 21 are also short answer questions carrying 4 marks 
each. Answers to them should normally not exceed 70 words each. 
(vi) Question number 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks 
each. Answers to them should normally not exceed 100 words each.  
(vii)  Answers should be brief and to the point and the above word limits should be adhered 
to as far as possible. 
 
SECTION A 
 
1. When the total fixed cost of producing 100 units is ` 30and the average variable cost 
`3, total cost is : (Choose the correct alternative)   (1) 
(a) ` 3 
(b) ` 30 
(c) ` 270 
(d) ` 330  
 
 
 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    2 
 
2. When the Average Product (AP) is maximum, the Marginal Product (MP) is:  
(Choose the correct alternative) (1) 
(a) Equal to AP 
(b) Less than AP 
(c) More than AP  
(d) Can be any one of the above  
 
3. State one example of positive economics. (1) 
 
4. Define fixed cost. (1) 
 
5. Explain the central problem of “choice of technique”. (3) 
OR 
Explain the central problem of “for whom to produce”. 
 
6. What is meant by inelastic demand? Compare it with perfectly inelastic demand. (3) 
 
7. When the price of a commodity changes from `4 per unit to `5 per unit, its market 
supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is 
supply elastic? Given reason. (4) 
 
8. What is meant by price ceiling? Explain its implications. (4) 
 
9. Given the price of a good, how will a consumer decide as to how much quantity to buy 
of that good? Explain. (4) 
OR 
What is Indifference Curve? State three properties of indifference curves. 
 
10. State three characteristics of monopolistic competition. Which of the characteristics 
separates it from perfect competition and why? (6) 
OR 
Explain the implications of the following: 
(a) Freedom of entry and exit of firms under perfect competition 
(b) Non-price  competition under oligopoly 
 
11. Explain the conditions of consumer’s equilibrium using Indifference Curve Analysis. (6) 
 
12. Explain the conditions of producer’s equilibrium in terms of marginal revenue and 
marginal cost.  (6)  
 
 
 
 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    3 
 
SECTION B 
 
13. Define money supply. (1) 
 
14. Which of the following affects national income? (Choose the correct alternative) (1) 
(a) Goods and Service tax 
(b) Corporation tax 
(c) Subsidies  
(d) None of the above 
 
15. Why does consumption curve not start from the origin? (1) 
 
16.  The central bank can increase availability of credit by: (Choose the correct alternative)(1) 
(a) Raising repo rate 
(b) Raising reverse repo rate  
(c) Buying government securities 
(d) Selling government securities  
  
17. Given normal income, how can we find real income? Explain. (3) 
OR 
Which among the following are final goods and which are intermediate goods? Give 
reasons. 
(a) Milk purchased by a tea stall  
(b) Bus purchased by a school  
(c) Juice purchased by a student from the school canteen 
 
18. Define multiplier. What is the relation between marginal propensity to consume and 
multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4. (3) 
 
19. What is meant by inflationary gap? State three measures to reduce this gap. (4) 
OR 
What is meant by aggregate demand? State its components. 
 
20. The value of marginal propensity to consume is 0.6 and initial income in the economy 
is `100 crores. Prepare a schedule showing Income, Consumption and Saving. Also 
show the equilibrium level of income by assuming autonomous investment of ` 80 
crores. (4) 
 
21. Explain the role of the Reserve Bank of India as the “lender of last resort”. (4) 
 
22. (a) Explain the impact of rise in exchange rate on national income. (6) 
 
(b) Explain the concept of ‘deficit’ in balance of payments. 
  
 
CBSE XII  | ECONOMICS 
All India Board Paper Set 3 ? 2018 
 
    4 
 
 
23. Calculation (a) Net National Product at market price, and (b) Gross Domestic Product 
at factor cost:  (4+2=6) 
  (` in crores) 
(i) Rent and Interest  6,000 
(ii) Wages and Salaries  1,800 
(iii) Undistributed Profit  400 
(iv) Net indirect taxes  100 
(v) Subsidies  20 
(vi) Corporation tax 120 
(vii) Net factor income to abroad 70 
(viii) Dividends  80 
(ix) Consumption of fixed capital 50 
(x) Social security contribution by employers  200 
(xi) Mixed income 1,000 
 
24. Explain the meaning of the following:  (6) 
(a) Revenue deficit  
(b) Fiscal deficit  
(c) Primary deficit 
OR 
Explain the following objective of government budget: 
(a) Allocation of resources  
(b) Reducing income inequalities