PRE BOARD EXAMINATION,2015-16
ECONOMICS
KV BASTI
CLASS XII
TIME-3HRS
MM-100
General instructions1.
2.
3.
4.
5.
6.
All questions in both sections are compulsory.
Question no.1-5 and 16-20 are very short answer questions carrying 1 mark each.
Question no.6-8 and 21-23 are short answer questions carrying 3 marks each.
Question no.9-11 and 24-26 are short answer questions carrying 4 marks each.
Question no.12-15 and 27-30 are long answer questions carrying 6 marks each.
Answers should be brief and to the point.
Section –A
MICROECONOMICS
1. The total cost at 5 u nits of output is Rs. 30. The fixed cost is Rs.5.The average variable cost
at 5 units of output is1
(a)Rs. 25
(b)Rs.6
(c)Rs.5
(d)Rs.1
2.What policy initiatives can the government take to increase the demand for milk in the
country? Mention any one.
1
3. Write the formula of marginal utility.
1
4. Using a diagram tell what will happen to the PPC of India if the river Kosi causes
1
wide spread floods .
5. Define cost in Economics.
1
6. Explain the problem of How to Produce.
3
7. Draw Average variable cost, average cost and marginal cost in a single diagram.
3
8. Explain the effects of a ‘Price ceiling’.
Or
Explain the effects of ‘Price Floor’.
3
9. Explain the implications of ‘freedom of entry and exit of firms’ under perfect market. 4
10. Distinguish between ‘inferior good’ and ‘Normal good’.
4
11. Explain why an indifference curve is convex to the origin.
4
12. Explain the condition of equilibrium of a firm based on marginal cost and marginal
Revenue
6
13. What is meant by ‘change in supply’ and ‘change in quantity supplied’?
6
14. Market for a good is in equilibrium. There is simultaneous decrease both in demand and
supply of the good. Explain its effect on market price.
6
15. A consumer consumes only two goods. Explain the conditions that need to be satisfied
for the consumer to be in equilibrium under indifference curve analysis.
6
SECTION –B MACROECONOMICS
16. Which of the following problems was being faced under Barter system-
1
(a)Lack of transport
(b)Lack of store of value
(c) Lack of payment
(d) None of the above
17. What is demand deposit?
1
18. Which of the following is not a method of measuring national income-
1
(a)Income method
(b)Expenditure method
(c) Value added method
(d) Distribution method
19.Write the formula of primary deficit.
1
20. Expenditure on purchase of land and building is-
1
(a) Revenue receipts
(b)Capital receipts
(c) Revenue expenditure
(d) Capital expenditure
21. Explain the concept of managed floating exchange rate.
3
22. In an economy the autonomous consumption is 100 and the MPC is 0.70. If the
3
equilibrium level of income is 1000, find out the consumption expenditure.
23. Explain the equilibrium level of National income with the help of aggregate demand 3
and aggregate supply method.
24. What is the difference between ‘Real GDP’ and ‘Nominal GDP’.
4
25. Give the meaning of following-
4
(a) Foreign exchange
(b) Foreign exchange rate
(c) Balance of payments
(d) Balance of trade
26. Calculate Gross value added at factor cost(a)Units of output sold
1000
(b)Price per unit of output
30
(c) Depreciation
1000
(d)Intermediate cost
12000
(e) Closing stock
3000
(f)Opening stock
2000
(g)Excise
2500
(h) Sales tax
3500
27. Explain the concept of Fiscal deficit. What are the implications of Fiscal deficit?
4
6
28. What is meant by Cash reserve ratio? How do they affect money supply in the economy? 6
29. Outline the steps taken in deriving saving curve from the consumption curve. Use
6
diagram.
In the diagram also show(a) The income level at which APC=1
(b) The income level at which APS is negative
30. Find out (a) National Income (b) Net national Disposable income(NNDI)(a)Factor income from abroad
15
(b) Private final consumption expenditure
600
(c) Consumption of fixed capital
50
(d) Government final consumption
200
(e) Net current transfers to abroad
(-)5
(f) Net domestic fixed capital formation
110
(g) Net factor income to abroad
10
(e) Net imports
(-)20
(f) Net indirect taxes
70
(g) Change in stock
(-)10
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