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Page 1
Date: Class: XII
Economics (030)
Time: 3 Hrs M. M: 100
General Instructions:
1. Answer all the questions carefully.
2. Questions carrying 1 mark are multiple choice questions
3. Questions carrying 3 marks should be answered in 40-60 words.
4. Questions carrying 4 marks should be answered in 60-80 words.
5. Questions carrying 6 marks should be answered in 80-100 words.
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
a) Resources are employed optimally
b) The best resources are employed
c) The total number of produced goods is the greatest
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
a) Luxuries b) Normal Goods
c) Necessities d) Essentials
1
3. If price is above the equilibrium price there is:
a) excess demand b) excess supply
c) price ceiling d) price floor
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will be the value of AFC at 4 units
of output?
a) 60 b) 30 c) 40 d) 20
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute? Give reasons.
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
3
8 What is meant by returns to a factor? Explain the causes behind increasing returns to a factor.
3
Page 2
Date: Class: XII
Economics (030)
Time: 3 Hrs M. M: 100
General Instructions:
1. Answer all the questions carefully.
2. Questions carrying 1 mark are multiple choice questions
3. Questions carrying 3 marks should be answered in 40-60 words.
4. Questions carrying 4 marks should be answered in 60-80 words.
5. Questions carrying 6 marks should be answered in 80-100 words.
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
a) Resources are employed optimally
b) The best resources are employed
c) The total number of produced goods is the greatest
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
a) Luxuries b) Normal Goods
c) Necessities d) Essentials
1
3. If price is above the equilibrium price there is:
a) excess demand b) excess supply
c) price ceiling d) price floor
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will be the value of AFC at 4 units
of output?
a) 60 b) 30 c) 40 d) 20
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute? Give reasons.
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
3
8 What is meant by returns to a factor? Explain the causes behind increasing returns to a factor.
3
9 Complete the following table:
Output AVC TC MC
1 __ 80 20
2 18 __ __
3 __ __ 18
4 20 140 __
5 24 __ __
3
10 Explain the relationship between Average revenue and Marginal revenue when a firm is able to
sell more quantity of output
a) at same price
b) only by lowering the price
3
11 What conditions must hold if a profit maximizing firm produces positive output in a competitive
market?
3
12 Why there are few firms under Oligopoly?
OR
Why the demand curve facing monopolist is more elastic than under monopoly?
3
13 A consumer consumes only two goods A and B and is in equilibrium. Show that when price of
good B falls, demand for B rises. Answer this question with the help of utility analysis.
4
14 Why a consumer buys more at same price?
OR
Consider the demand curve Q = 10 – 3P. What will be the elasticity at price 5/3?
4
15 What may be the consequences of price ceiling and floor price? Give examples.
4
16 a) Explain the central problem of whom to produce.
b) PPF could be a straight line and convex to the origin under what conditions?
6
17. Consumer attains equilibrium when budget line is tangent to indifference curve. Why not any
other point is equilibrium? Use diagram.
6
18. How the following will affect the supply of a commodity:
a) Government policy
b) increase in the price of substitute goods
c) increase in the price of inputs
6
19. Explain the implication of the following features:
a) Price discrimination under Monopoly
b) P = d = AR under Perfect Competition
c) Product differentiation under Monopolistic Competition
3+3
= 6
20. There is simultaneous decrease in demand and supply curves of a commodity. When it will result
in:
a) no change in equilibrium price
b) rise in equilibrium price
OR
Market for a good is in equilibrium. Income of the consumer increases in case of normal good.
Explain the chain reactions with diagrams.
6
Page 3
Date: Class: XII
Economics (030)
Time: 3 Hrs M. M: 100
General Instructions:
1. Answer all the questions carefully.
2. Questions carrying 1 mark are multiple choice questions
3. Questions carrying 3 marks should be answered in 40-60 words.
4. Questions carrying 4 marks should be answered in 60-80 words.
5. Questions carrying 6 marks should be answered in 80-100 words.
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
a) Resources are employed optimally
b) The best resources are employed
c) The total number of produced goods is the greatest
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
a) Luxuries b) Normal Goods
c) Necessities d) Essentials
1
3. If price is above the equilibrium price there is:
a) excess demand b) excess supply
c) price ceiling d) price floor
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will be the value of AFC at 4 units
of output?
a) 60 b) 30 c) 40 d) 20
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute? Give reasons.
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
3
8 What is meant by returns to a factor? Explain the causes behind increasing returns to a factor.
3
9 Complete the following table:
Output AVC TC MC
1 __ 80 20
2 18 __ __
3 __ __ 18
4 20 140 __
5 24 __ __
3
10 Explain the relationship between Average revenue and Marginal revenue when a firm is able to
sell more quantity of output
a) at same price
b) only by lowering the price
3
11 What conditions must hold if a profit maximizing firm produces positive output in a competitive
market?
3
12 Why there are few firms under Oligopoly?
OR
Why the demand curve facing monopolist is more elastic than under monopoly?
3
13 A consumer consumes only two goods A and B and is in equilibrium. Show that when price of
good B falls, demand for B rises. Answer this question with the help of utility analysis.
4
14 Why a consumer buys more at same price?
OR
Consider the demand curve Q = 10 – 3P. What will be the elasticity at price 5/3?
4
15 What may be the consequences of price ceiling and floor price? Give examples.
4
16 a) Explain the central problem of whom to produce.
b) PPF could be a straight line and convex to the origin under what conditions?
6
17. Consumer attains equilibrium when budget line is tangent to indifference curve. Why not any
other point is equilibrium? Use diagram.
6
18. How the following will affect the supply of a commodity:
a) Government policy
b) increase in the price of substitute goods
c) increase in the price of inputs
6
19. Explain the implication of the following features:
a) Price discrimination under Monopoly
b) P = d = AR under Perfect Competition
c) Product differentiation under Monopolistic Competition
3+3
= 6
20. There is simultaneous decrease in demand and supply curves of a commodity. When it will result
in:
a) no change in equilibrium price
b) rise in equilibrium price
OR
Market for a good is in equilibrium. Income of the consumer increases in case of normal good.
Explain the chain reactions with diagrams.
6
Part B ( Macro – Economics)
21. Mixed income of self employed means
a) gross profits received by proprietors
b) rent, interest and profit of an enterprise
c) combined factor payments that are not distinguishable
d) wages of the family workers
1
22. Which of the following statement is true:
a) If national income rises, per capita income rises
b) if population rises, per capita income falls
c) If national income rises, welfare must rise
d) None of them
1
23. Machine purchased is always a final good. Do you agree? Give reasons in support of your answer.
3
24. What is externality? Explain how negative externality is limitation as an indicator of economic
welfare.
3
25. Calculate ‘sales’ from the following data:
Particulars In Crores
National Income 2000
Factor income to abroad 100
Sales Tax 10
Subsidies 80
Excise Duty 10
Import Duty 10
Wealth tax 20
Change in stock 20
Factor income from abroad 50
Gross domestic fixed capital formation 100
Net domestic capital formation 100
Purchase of raw material 180
Imports 10
Exports 20
3
26. Distinguish between leakages and injections.
OR
Distinguish between factor payments and transfer payments.
3
27. Explain the problem of double counting. How we could avoid it?
OR
Explain the concept of Circular Flow of Income in a 2 sector economy.
4
28. Explain how the following is treated while calculating national income of the country:
a) Dividend received by a foreigner from investment in shares of an Indian company.
b) Fee to a mechanic paid by a firm
c) Expenditure on purchasing a car for use by a firm.
6
29. Calculate GDPfc and subsidies from the following data:
Particulars In crores
Net factor income to abroad -20
Consumption of fixed capital 50
Personal tax 110
6
Page 4
Date: Class: XII
Economics (030)
Time: 3 Hrs M. M: 100
General Instructions:
1. Answer all the questions carefully.
2. Questions carrying 1 mark are multiple choice questions
3. Questions carrying 3 marks should be answered in 40-60 words.
4. Questions carrying 4 marks should be answered in 60-80 words.
5. Questions carrying 6 marks should be answered in 80-100 words.
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
a) Resources are employed optimally
b) The best resources are employed
c) The total number of produced goods is the greatest
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
a) Luxuries b) Normal Goods
c) Necessities d) Essentials
1
3. If price is above the equilibrium price there is:
a) excess demand b) excess supply
c) price ceiling d) price floor
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will be the value of AFC at 4 units
of output?
a) 60 b) 30 c) 40 d) 20
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute? Give reasons.
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
3
8 What is meant by returns to a factor? Explain the causes behind increasing returns to a factor.
3
9 Complete the following table:
Output AVC TC MC
1 __ 80 20
2 18 __ __
3 __ __ 18
4 20 140 __
5 24 __ __
3
10 Explain the relationship between Average revenue and Marginal revenue when a firm is able to
sell more quantity of output
a) at same price
b) only by lowering the price
3
11 What conditions must hold if a profit maximizing firm produces positive output in a competitive
market?
3
12 Why there are few firms under Oligopoly?
OR
Why the demand curve facing monopolist is more elastic than under monopoly?
3
13 A consumer consumes only two goods A and B and is in equilibrium. Show that when price of
good B falls, demand for B rises. Answer this question with the help of utility analysis.
4
14 Why a consumer buys more at same price?
OR
Consider the demand curve Q = 10 – 3P. What will be the elasticity at price 5/3?
4
15 What may be the consequences of price ceiling and floor price? Give examples.
4
16 a) Explain the central problem of whom to produce.
b) PPF could be a straight line and convex to the origin under what conditions?
6
17. Consumer attains equilibrium when budget line is tangent to indifference curve. Why not any
other point is equilibrium? Use diagram.
6
18. How the following will affect the supply of a commodity:
a) Government policy
b) increase in the price of substitute goods
c) increase in the price of inputs
6
19. Explain the implication of the following features:
a) Price discrimination under Monopoly
b) P = d = AR under Perfect Competition
c) Product differentiation under Monopolistic Competition
3+3
= 6
20. There is simultaneous decrease in demand and supply curves of a commodity. When it will result
in:
a) no change in equilibrium price
b) rise in equilibrium price
OR
Market for a good is in equilibrium. Income of the consumer increases in case of normal good.
Explain the chain reactions with diagrams.
6
Part B ( Macro – Economics)
21. Mixed income of self employed means
a) gross profits received by proprietors
b) rent, interest and profit of an enterprise
c) combined factor payments that are not distinguishable
d) wages of the family workers
1
22. Which of the following statement is true:
a) If national income rises, per capita income rises
b) if population rises, per capita income falls
c) If national income rises, welfare must rise
d) None of them
1
23. Machine purchased is always a final good. Do you agree? Give reasons in support of your answer.
3
24. What is externality? Explain how negative externality is limitation as an indicator of economic
welfare.
3
25. Calculate ‘sales’ from the following data:
Particulars In Crores
National Income 2000
Factor income to abroad 100
Sales Tax 10
Subsidies 80
Excise Duty 10
Import Duty 10
Wealth tax 20
Change in stock 20
Factor income from abroad 50
Gross domestic fixed capital formation 100
Net domestic capital formation 100
Purchase of raw material 180
Imports 10
Exports 20
3
26. Distinguish between leakages and injections.
OR
Distinguish between factor payments and transfer payments.
3
27. Explain the problem of double counting. How we could avoid it?
OR
Explain the concept of Circular Flow of Income in a 2 sector economy.
4
28. Explain how the following is treated while calculating national income of the country:
a) Dividend received by a foreigner from investment in shares of an Indian company.
b) Fee to a mechanic paid by a firm
c) Expenditure on purchasing a car for use by a firm.
6
29. Calculate GDPfc and subsidies from the following data:
Particulars In crores
Net factor income to abroad -20
Consumption of fixed capital 50
Personal tax 110
6
Dividends 20
Savings of private corporate sector 40
Indirect taxes 100
Corporation tax 90
Rent 10
COE in cash 300
Wages and Salaries 110
COE in kind 50
GNPmp 600
OR
Calculate domestic income from the following data:
Particulars In crores
Household savings 300
Profits 100
Misc receipts of govt. administrative
departments
10
Household consumption 100
Savings of corporate sector 10
Dividends 50
Income tax 40
NFIA -10
Current transfers to government 30
National debt interest 20
Current transfers from government 10
Income accruing to govt administrative
departments
70
Page 5
Date: Class: XII
Economics (030)
Time: 3 Hrs M. M: 100
General Instructions:
1. Answer all the questions carefully.
2. Questions carrying 1 mark are multiple choice questions
3. Questions carrying 3 marks should be answered in 40-60 words.
4. Questions carrying 4 marks should be answered in 60-80 words.
5. Questions carrying 6 marks should be answered in 80-100 words.
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
a) Resources are employed optimally
b) The best resources are employed
c) The total number of produced goods is the greatest
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
a) Luxuries b) Normal Goods
c) Necessities d) Essentials
1
3. If price is above the equilibrium price there is:
a) excess demand b) excess supply
c) price ceiling d) price floor
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will be the value of AFC at 4 units
of output?
a) 60 b) 30 c) 40 d) 20
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute? Give reasons.
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
3
8 What is meant by returns to a factor? Explain the causes behind increasing returns to a factor.
3
9 Complete the following table:
Output AVC TC MC
1 __ 80 20
2 18 __ __
3 __ __ 18
4 20 140 __
5 24 __ __
3
10 Explain the relationship between Average revenue and Marginal revenue when a firm is able to
sell more quantity of output
a) at same price
b) only by lowering the price
3
11 What conditions must hold if a profit maximizing firm produces positive output in a competitive
market?
3
12 Why there are few firms under Oligopoly?
OR
Why the demand curve facing monopolist is more elastic than under monopoly?
3
13 A consumer consumes only two goods A and B and is in equilibrium. Show that when price of
good B falls, demand for B rises. Answer this question with the help of utility analysis.
4
14 Why a consumer buys more at same price?
OR
Consider the demand curve Q = 10 – 3P. What will be the elasticity at price 5/3?
4
15 What may be the consequences of price ceiling and floor price? Give examples.
4
16 a) Explain the central problem of whom to produce.
b) PPF could be a straight line and convex to the origin under what conditions?
6
17. Consumer attains equilibrium when budget line is tangent to indifference curve. Why not any
other point is equilibrium? Use diagram.
6
18. How the following will affect the supply of a commodity:
a) Government policy
b) increase in the price of substitute goods
c) increase in the price of inputs
6
19. Explain the implication of the following features:
a) Price discrimination under Monopoly
b) P = d = AR under Perfect Competition
c) Product differentiation under Monopolistic Competition
3+3
= 6
20. There is simultaneous decrease in demand and supply curves of a commodity. When it will result
in:
a) no change in equilibrium price
b) rise in equilibrium price
OR
Market for a good is in equilibrium. Income of the consumer increases in case of normal good.
Explain the chain reactions with diagrams.
6
Part B ( Macro – Economics)
21. Mixed income of self employed means
a) gross profits received by proprietors
b) rent, interest and profit of an enterprise
c) combined factor payments that are not distinguishable
d) wages of the family workers
1
22. Which of the following statement is true:
a) If national income rises, per capita income rises
b) if population rises, per capita income falls
c) If national income rises, welfare must rise
d) None of them
1
23. Machine purchased is always a final good. Do you agree? Give reasons in support of your answer.
3
24. What is externality? Explain how negative externality is limitation as an indicator of economic
welfare.
3
25. Calculate ‘sales’ from the following data:
Particulars In Crores
National Income 2000
Factor income to abroad 100
Sales Tax 10
Subsidies 80
Excise Duty 10
Import Duty 10
Wealth tax 20
Change in stock 20
Factor income from abroad 50
Gross domestic fixed capital formation 100
Net domestic capital formation 100
Purchase of raw material 180
Imports 10
Exports 20
3
26. Distinguish between leakages and injections.
OR
Distinguish between factor payments and transfer payments.
3
27. Explain the problem of double counting. How we could avoid it?
OR
Explain the concept of Circular Flow of Income in a 2 sector economy.
4
28. Explain how the following is treated while calculating national income of the country:
a) Dividend received by a foreigner from investment in shares of an Indian company.
b) Fee to a mechanic paid by a firm
c) Expenditure on purchasing a car for use by a firm.
6
29. Calculate GDPfc and subsidies from the following data:
Particulars In crores
Net factor income to abroad -20
Consumption of fixed capital 50
Personal tax 110
6
Dividends 20
Savings of private corporate sector 40
Indirect taxes 100
Corporation tax 90
Rent 10
COE in cash 300
Wages and Salaries 110
COE in kind 50
GNPmp 600
OR
Calculate domestic income from the following data:
Particulars In crores
Household savings 300
Profits 100
Misc receipts of govt. administrative
departments
10
Household consumption 100
Savings of corporate sector 10
Dividends 50
Income tax 40
NFIA -10
Current transfers to government 30
National debt interest 20
Current transfers from government 10
Income accruing to govt administrative
departments
70
First Term Answer Key Class XII Economics
Part – A (Micro Economics)
1 An economy achieves “productive efficiency” when
d) Goods and services are produced with least cost and no resources are wasted
1
2 Ed = 0 in case of:
d) Essentials
1
3. If price is above the equilibrium price there is:
b) excess supply
1
4 A firm’s average fixed cost is Rs 20 at 6 units of output. What will it be at 4 units of output?
b) 30
1
5 ‘Scarcity and choices go altogether.’ Defend or Refute?
Defend
Scarcity is the root cause of all economic problems. Explain.
Scarcity means when demand for resources is more than its supply like land. It could be used for
agriculture, warehouses and factory but supply is limited so society chooses that suits best to the
need. If things were available in plenty there would have been no choice problem….3mk
3
6 Differentiate between budget set and budget line. What is the slope of budget line?
Budget set is possible combination of two goods that a consumer can consume given the price of
the two goods and income of the consumer.
Budget line is the graphical presentation of budget set that shows possible combinations of two
goods that can be consumed with the given income and prices of the goods.
Slope of budget line is Px/Py
1mk each
3
7 Derive the law of demand from single commodity equilibrium condition ‘marginal utility =
price.’
If a consumer has more and more of a good its marginal utility to him declines. A consumer is
now not interested in buying more units a5t same price instead he is ready to pay price equal to
its MU. Mu declines in other words a consumer is willing to pay less at ore price. Therefore MU=
price….3mk
Price Price
D
MU Qty Qty
3
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