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12th Class Economics Sample Paper

Economics - Sample Paper-4 Total Questions - 24 [Download]

1)

State the economic value achieved through the spread of education in the context of production potential.
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2)

Why is fixed cost curve parallel to X-axis?
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3)

The application of fixed factor can be changed during

A)

long period

B)

short period

C)

short as well as long period

D)

None of these

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4)

A businessman invests his savings in a business and employs professionals to manage business. Identify implicit cost here.
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5)

Find out Marginal Opportunity Cost (MOC) of good X in the following schedule and also comment on the probable shape of the production possibility curve.

Production of Goods X (units) Production of Good Y (units)

0 15

1 14

2 12

3 9

4 5

5 0

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6)

Differentiate between normal goods and inferior goods? Or What do you understand by the rightward shift in the demand curve? Explain it with the help of an example and diagram.
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7)

What do you understand by price ceiling? Write its two major implications. Or Explain the impact on equilibrium price and quantity when

(i) Demand is perfectly elastic and supply falls.

(ii) Supply is perfectly inelastic and demand rises.

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8)

A consumer consumes only two goods X and Y both priced at Rs. 8 per unit. If the consumer chooses a combination of these two goods with marginal rate of substitution equal to 8, is the consumer is equilibrium? Give reasons. Also explain, what will a rational consumer do in this situation?
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9)

Draw Average Revenue (AR) and Marginal Revenue (MR) curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain.
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10)

Is a producer in equilibrium under the following situations?

(i) When Marginal Revenue (MR) is greater than Marginal Cost (MC).

(ii) When Marginal Revenue (MR) is equal to Marginal Cost (MC).

Give reasons for your answer.

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11)

Explain the different conditions in which a budget line can change. Ramjas always tries to buy that basket of goods which lies on his budget line. Identify the economic value.
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12)

What do you understand by product differentiation? Also, explain the implications of features product differentiation in monopolistic market. Or At a given price of a commodity there is 'excess supply'. Is this the equilibrium price? If not, how will the equilibrium price be reached?
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13)

What is meant by fiscal discipline?
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14)

Write one implication of revenue deficit of the government.
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15)

Which of the following systems is followed by Reserve Bank of India for issuing currency?

A)

Minimum reserve system

B)

Proportionate system

C)

Fixed fiduciary issue system

D)

Simple deposit system

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16)

Explain the meaning of credit money.
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17)

What will happen to an economy if aggregate demand falls below full employment level? Explain using a graph. Or Explain the role of margin requirement in correcting the problem of deflationary gap.
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18)

In an economy, the equilibrium level of income is Rs.12,000 crore. The ratio of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) is 3:1. Calculate the additional investment needed to reach a new equilibrium level of income of Rs. 20,000 crore. Identify the economic value involved in increasing the investment in the economy.
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19)

Explain the circular flow of income in a two sector economy with the help of a diagram.
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20)

What is bank rate? How does it work as a method of credit control? "Introduction of money has separated the acts of sale and purchase". Explain how?
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21)

Explain the importance of government budget.
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Giving reasons, explain the treatment assigned to the following while estimating national income.

(i) Expenditure on adding a floor to building.

(ii) Payment of fees to a lawyer engaged by a firm.

(iii) Payment of interest by a government firm.

Or Calculate National Income by (i) Product method (ii) Expenditure method.

S.No	Items	(Rs.) in crores
(i)	Gross Value Added at Market Price by Primary Sector	600
(ii)	Private Final Consumption Expenditure	1,500
(iii)	Consumption of Fixed Capital	300
(iv)	Net Indirect Tamxes	240
(v)	Gross Value Added at Market Price by Secondary Sector	400
(vi)	Net Domestic Fixed Capital Formation	440
(vii)	Change in Stock	\[(-)\]40
(viii)	Gross Value Added at Market Price by Tertiary Sector	1,400
(ix)	Net Imports	100
(x)	Government Final Consumption Expenditure	300
(xi)	Net Factor Income from Abroad	40

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