MODEL QUESTION PAPER FOR STD XII (NCERT)
ECONOMICS
INSTRUCTIONS:1. All questions are compulsory.
2. Part A of each question are very short answer type.
3. Part B of each question is short answer type -1 ,the word limit is around20 words.
4. Part C of each question is short answer type -2 , the word limit is around 50 words.
5. Part D of each question is long answer type ,the word limit is around 80 words,
6. The word limit is not applicable to answers on differentiations ,diagrams and those of
numerical nature
7. Use of any calculating devices are prohibited
8. All diagrams should be drawn in Black lead pencil.
9. Figures to the right indicate full marks.
1. A) Choose and write the most appropriate answer from those provided below the statement:- 1
The basic function of an economy is
- Production
- Consumption
-Investment
-All of the above
B)i) What are Monotonic Preferences?
OR
ii) What does “ for whom to produce “ means in central problems of an economy?
2
C) Explain with the help of neat labeled diagram production possibility curve.
3
D) Explain with the help of neat labeled diagram the changes in the budget set as per the
changes in the consumers income ?
4
2A) Choose and write the most appropriate answer from those provided below the statement:- 1
State the value of price elasticity of demand when demand curve is horizontal to the
X – axis.
-.Ed = 1
-.Ed = £
-.Ed = 0
-.Ed < 1
B) Differentiate between Substitute goods and Complementary goods by giving two points
of differences between them.
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C) The demand for the commodity decreases by 10% when its price increases from
Rs. 8 to. Rs.9. Calculate and mention the price elasticity of demand for the commodity.
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D) Explain the shifts in demand curve with the help of labeled diagram.
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3.A)Give the correct economic term for the following statement:The output per unit of the variable input.
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1
B) From the data a firms production department calculate the average variable cost?
Number of units produced
Purchase of machinery
wage bill
Rent
cost of raw materials
fuel consumption
2
Rs. 200
Rs 50,000
Rs 15,000
Rs. 300
Rs. 2,000
Rs. 400
C)i) Explain the relationship between Marginal product and Total product of an with the help of
an imaginary schedule.
OR
ii) Explain decreasing return to scale with the help of an imaginary schedule .
3
D) Explain with the help of neat labeled diagram the three stages of the Law of Variable
Proportions .
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4.A.Choose and write the most appropriate answer from those provided below the statement:- 1
A firm maximizes its total profit when
- It is at the break even point
- It is at the shut down point.
- Total cost exceeds total revenue by the greatest amount
- Total revenue exceeds total cost by the greatest amount.
B) Draw neat and labeled diagrams for each of the following types of elasticity of supply
i) Relatively elastic supply
ii) Unitary elastic supply
2
C) Describe the three determinants of a firms supply curve.
3
D.i) Explain with the help of neat labeled diagram the Law of Supply and mention any
two assumptions .
or
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ii) Explain with the help of neat labeled diagram Total revenue ,marginal revenue and
average revenue under perfect competition.
5.A) Choose and write the most appropriate answer from those provided below the statement:Fixing the maximum allowable price in the market by the government for certain goods
and services.
1
- Price Ceiling
- Price Floor
- Price Control
-All of the above
B) Differentiate between monopoly and monopolistic competition by giving two points.
2
C) Explain the three features of Oligopoly..
3
D) Explain with the help of neat labeled diagram effect on equilibrium price when
a. Demand is constant supply is increasing
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2
b. Demand is constant Supply is decreasing
OR
ii) Explain with the help of neat labeled diagram effect on equilibrium price when
a. Supply is constant and demand is increasing
b. Supply is constant and demand is decreasing.
.
6 A). Choose and write the most appropriate answer from those provided below the statement:In an economy without the government ,the ex ante aggregate demand for the final goods
1
is the sum total of the ex ante consumption expenditure and
- Ex post consumption
- Ex post investment expenditure
- Ex ante investment expenditure
- All of the above
B) The value of marginal propensity to save is 1/5. Find out the value of Multiplier.
2
C) Explain with the help of neat diagram the consumption function.
3
D) Draw a neat labeled diagram and explain the circular flow of income .
4
7 A) Give the correct economic term for the following statement
An addition made to the stock of capital of a firm .
1
B) Mr. Sohan an Indian (NRI ) is working in U.S.A. and earning a salary of$ 30,000 per month.
Mr. Brown an American , who works in India earns Rs. 50,000/- per month Whose income
will be the part of the Indian Gross Domestic Product and why?
2
C)
i)
ii)
iii)
What do you mean by the following concepts?
Inventories
Net National Product .
Trade Deficit.
3
D) Explain with the help of an example the Value Added Method of measuring National
Income
4
8A).1.Give the correct economic term for the following statement.
1
The ratio of money held by the public in the currency to that they hold in the bank deposit.
B)What does the Central bank do as the lender of the last resort?
2
C) Give the meaning of the following terms of monetary tools of Central bank
i) Bank Rate
ii) Open Market Operation
iii)Cash Reserve Ratio
3
D) Explain with the help of suitable example money creation by the banking system.
4
9A)Choose and write the most appropriate answer from those given below the statement
When total receipts of the government exceeds its total expenditure it is known as
- Surplus Budget
- Deficit Budget
1
3
- Balance Budget
- all of the above
B) Differentiate between Public Goods and Private Goods by giving two point of differences 2
C) Describe the three measures of government deficit?
3
D) Explain the Capital Account of the Government Budget.
4
10A) Give the correct economic term for the following statement:The price of one currency in terms of the other currency
1
B) i) What does the balance of payments record?
OR
ii) What does a deficit in of trade account indicates?
2
C) Explain purchasing power parity with the help of an example.
3
D) Explain fixed exchange rate system.
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