Kendriya Vidyalaya Basti
Marking scheme-ECONOMICS
1 pre board
Class 12
2015-16
1.
2.
3.
4.
5.
6.
C. Rs.5
1m
Price reduction/Rise in the price of substitute good
1m
MU= TUn-TUn-1
1m
There will be inward shift of PPC because of loss of resources. 0.5 m on diagram+ 0.5m for answer
Expenditure incurred on production
1m
A. Labour intensive technique-More labour and less capital is used
B. Capital intensive technique-More capital and less labour is used.
3m=1.5m+1.5m
7. 1 mark on each diagram, Total 3m
8. Effects of price ceiling- a. Ceiling price is less than the Market price
point)
3m(1m on each
b. Important commodities become affordable for poor people.
c. Excess demand may take place
d. Shortage of commodity.
e. Black marketing, hoarding may take place
f. long queues in ration shops
or
Effects of Price Floor- a. Floor price is set above the market price.
b. Stabilises income of farmers/producers etc.
c. helps in stabilizing supply of goods.
d. Excess supply in the market.
e. It may also lead to unsold stock .
9. a. In case of supernormal profit- New firms will join the industry and super normal profits will be
Wiped away leading to Normal profits.
b. In case of Loss- Some firms will leave the industry and only few firms will be left leading to normal
profits.
4m(2mEach)
10. Inferior good- With rise in income their demand falls.
With fall in price demand falls.
4m(2m each)
Normal good- With rise in income their demand rise.
With fall in price demand rises.
11. IC is convex because of Diminishing marginal rate of substitution.
4m for explanation.
12. Producers equilibrium- A state where he produces an output which gives him maximum
profit.
1m
Condition- a. MC= MR
1m
b. MC should cut MR from below
1m
Diagram
1m
Explanation
2m=total 6
13. Change in supply- It is because of change in factors other than price.
Change in quantity supplied- It is because of change in price.
total 6m=1m on each point
of difference
14. There can be three situationsa. Price may remain constant b. Price may rise. C. Price may fall.
on explanation of each
Total6=3m on three diagrams+3 m
15. Consumer’s equilibrium- A consumer is in equilibrium when he gets maximum satisfaction from his
expenditure with given income and prices.
1m
Equilibrium condition- Slope of Budget line= Slope of price line
Diagram
1m
Explanation
3m
1m
16. Those bank deposits which can be withdrawn through cheques.
1m
17. (b.)-lack of store of value
1m
18. (d.) –Distribution method
1m
19.Primary deficit=Fiscal deficit –interest payments
1m
20. (d.) –Capital expenditure
1m
21. It is a combination of Mixed exchange rate system and Floating exchange rate system. 3m
22. C=c+b.Y
1m
c=Rs.100(b-MPC)
MPC=0.70
Y=1000
100+0.7 X 1000
1m
100+700
C= Rs. 800
23. Equlibrium equation- Y*= AD=AS
1m
1m
Diagram
1m
Explanation -National income will be in equilibrium where AD=AS.
1m
24. Real GDP-GDP measured at base year price.
Quantity of goods in current year x price of base year
2m
Nominal GDP- GDP measured at current year price
Quantity of goods in current year X price of current year
25. a. Foreign currency
2m
1m
b. Value of home currency in terms of foreign currency
1m
c. An account of all economic transactions of a country with rest of the world in a financial
year.
1m
d. BOT= Value of export- value of imports
26. GVA at Market price= Value of output- intermediate consumption
1m
1m
Value of output= sales+change in stock
Sales= price X units of output
Or
30x1000=30 000
Change in stock= closing stock- opening stock
=3000-2000=1000
=(30000+1000)-12,000
=31,000-12,000
=19,000
1m
GVA at FC= GVA at MP- Net indirect tax (excise+ sales tax)
1m
=19,000-(2500+3500)
=19000-6000
=13000
1m
27. Fiscal deficit= Total expenditure- Total revenue(excluding borrowings).
1m
Implications- a. Heavy borrowings b. Burden on future generations c. Increase in the liability of
govt. d. Inflation e. Hampers future growth
1m on each
28. CRR-Minimum percentage deposits to be kept by the commercial banks with the central bank. 1m
SLR-Minimum percentage of deposits to be kept by the commercial banks with itself.
1m
An increase in LRR(CRR+SLR) reduces the capacity of commercial banks to create
credit.
29. Diagram
Steps - We draw a 45 degree line passing through the origin.
4m on explanation
1m
3m
Consumption is equal to the difference between income and saving.
The point where C=Y is called break even point.
When income is less then consumption we consume from our past savings.
showing income level where APC=1
1m
showing income level where APS= negative
1m
30. (i) NDP at MP= Private final consumption expenditure + Govt. final consumption expenditure+ net domestic
fixed capital formation + change in stock + net export
1m
=600+200+110+(-10)+20
=920
NNP at FC =NDP at MP + NFIA –Net indirect tax
1m
=920+(10)-70
=920-80
=840
1m
(ii). NNDI= NDP at MP + NFIA- net current transfers to abroad
1m
920+(-10)-(-5)
1m
920+5-10
=915
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1m