Sample Paper - II Class - XII Economics Time : 3Hrs M.M.

100
. General Instructions : (i) All questions in both are sections are compulsory. (ii) Marks for each question are indicated against it. (iii) Question no. 1-5 and 17-21 are very short answer questions carrying 1 mark each. They are required to be answered in one sentence each. (iv) Question no. 6-10 and 22-26 are short answer questions carrying 3 marks each. Answer to these should not normally exceed 60 words each. (v) Question no. 11-13 and 27-29 are also each. Answer questions carrying 4 marks each. Answer to these should not normally exceed 70 words each. (vi) Question No.14-16 and 30-32 are long answer questions carrying 6 marks each. Answer to them should not normally exceed 100 words each. (vii) Answers should be brief and to the point and the above word limit be adhered to as (Section A)

1. 2. 3.

Give meaning of opportunity cost. In which market form are the products homogeneous ? What happens to total utility when marginal utility is negative ?

1 1 1

4. 5. 6. 7. 8. 9. 10. 11.

When demand for a good falls due to rise in Price of the good alone, What is change in demand called ? 1 What is meant by prime or variable cost ? Why do technological advancement or growth of resources shift the PPC to th right ? Define monopolistic competition. State its any two features. Explain the effects of change in income of the buyers of a good on its demand. Explain the effect of 'change in prices of inputs used' on the supply of a product. Why does the demand curve slop downwards? 1 3 3 3 3 3

A consumer buys 80 units of a good at a price of Rs 5/- per unit. Suppose price elasticity of demand is (-) 2. At what price will he buy 64 units ? 4 Define producer's equilibrium. Explain producer's equilibrium with marginal revenue (MR) and Marginal cost approach. 4 Calculate total variable cost and marginal cost at each given level of output from the following table. 4 Output Total Cost (Rs.) 0 40 1 60 2 78 3 97 4 124

12.

13.

14.

Show the effect on equilibrium price and quantity with the simultaneous decrease in supply and demand. 6

15.

Explain law of variable proportions with the help of a diagram. Using total and marginal products. 6 Define marginal utility. State law of diminishing marginal utility. (Section B) 1 1 1 1 1 3 3 6

16.

17. 18. 19. 20. 21. 22. 23.

What is money supply ? Give meaning of underemployment equilibrium. What is meant by statutory liquidity ratio ? Define foreign exchange rate. If APS is 0.6, how much will be APC ? What are the sources of supply of foreign exchange ? From the following data calculate gross value added at factor cost :(Rs. in Lakhs) (i) Sales 180 (ii) Rent 5 (iii) Subsidies 10 (iv) (v) (vi) (vii) Change in stock Purchase of raw material Profits Imports 15 100 25 15

24. 25.

Define money supply. What are its components ?

Distinguish between current account and capital account of balance of payment account. 3

26.

Complete the following table :-

Income 0 50 100 150 200 27. 28. 29. 30.

Saving -20 -10 0 30 60

MPC -

APC
-

Distinguish between revenue expenditure and capital expenditure in a government budget. Give examples. 4 How does the central bank perform the function of controller of credit ? 4 What is fiscal and revenue deficit ? What are implications of fiscal deficit. From the following data calculate national income by income and expenditure method : (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) Compensation of employees Private final consumption expenditure Profit Rent Govt. final consumption expenditure Interest Net factore income from abroad Net indirect leave Mixed income Net exports Ne domestic capital formation Consumption of fixed capital (Rs. Crore) 800 1200 500 200 800 150 20 190 630 (-)30 150 150 4 6

31.

Explain with the help of a diagram using saving investment approach the determination of equilibrium output and income level in an economy. What happens when savings exceeds investment ? 6

32.

Will the following be included in domestic income of India ? Give reasons to support your answer :6 (i) Profits earned by foreign bank from its branches in India. (ii) Scholarships given by Govt. of India. (iii) Salaries received by Indians working is American Embassy in India.

Sample Paper - II Class - XII Economics (Marking Scheme) Time : 3Hrs

1. 2. 3. 4. 5. 6. Opportunity cost is the cost of next best sacrificed to avail. Under perfect competition/ Total utility should be declining. Contraction of demand. Cost which change as the level of out put changes. (I) (iii) Growth of resources Cost of per unit decreases (ii) More resources means more production

M.M. 100

7. 8.

A large number of buyers and sellers. Product differentiation. Selling cost other. (i) (ii) (iii) Normal goods - increase in the income consumer increase his demand. Inferior goods - negative relationship between income and demand. Necessities of life - demand unaffected. S1 S S2

9.

Supply curve shifts rightwards and lift ward due to increases and fall in inputs price.

S1 S 10. 11. Income effect, substitution effect, low of diminishing marginal utility. Q xP
P x Q

S2

=> (-)2 = (-)16 x5

P x 80

=> P= 0.5

New Price > P + P= 5+ 0.5= 5.5 Rs. per unit

12.

MC MC P AR = MR

MR

13.

VC:- 20, 38, 57, 84 MC:- 20, 18, 19, 27

D
S1

14.

D1

S1 D1 S

S1 D1 S

P P1

P P1 P
Q Q1

Q Q1

Q1

15.

JP rises at diminesting

JP Falls MP(+)

JP

Diminishing Rate

MP(-)

MP y

16.

Unit 1 2 3 4 5

MU 6 4 2 0 -2

MU

x-comm x MU curve

17. 18. 19.

Money serve as a medium of exchange. Equilibrium where some resources are still left unemployed. SLR is demand deposits of a commercial bank which it has to keep in the scassets.

20. 21. 22.

Currency of one country can be exchanged for currency of another country : 1APS = 1 0.6 = 0.4. Purchase of domestic goods by the force. Direct foreign investment. Purchases of foreign exchange/any other. 180+15-100+10=105 lakhs GVA at FC = 105. Total stock of money held by public in spendable form. M1, M2, M3, M4. Meaning, Flow, Components. MPC : 0.8, 0.8, 0.4, 0.4 APC : 1.2, 1.0, 0.8, 0.7. RE Not reduce liability, not add assets subsidies, CE creation of assets, reduction in liability construction building, repament of loans. Bank rate, open market op., CRR, SLR, Moral suasion any other. FD TE>TR Measure of total blowing requirement RD RE>RR of the govt. Income method 800+500+200+150+630+20=Rs. 2300 Crs. E. M. 1200+800+500-30+20-190=2520-220=2300 Crore. Savings are more than investment level of national income decreases. X S S&I O Output I X

23. 24. 25. 26.

27.

28. 29.

30.

31.

32.

(i) (ii) (iii)

Included not be include not be include.