ASIA PACIFIC INTERNATIONAL SCHOOL BHOPAL

HALF YEARLY EXAMINATION , 2018

CLASS XII
SUBJECT : ECONOMICS
Max. Time :- 3 Hours Max. Marks :- 80
GENERAL INSTRUCTIONS:-

 All questions are compulsory.

 Please check that this question paper contains 3 pages.
 Please write down the serial number pf the question before attempting
it.
 Graph work and plotting along with schedule should be answered neat
and clean.
 L
1. Production in an economy is below its potential due to unemployment government
 Marks for questions are indicated against each question.
starts employment generation schemes. Explain its effect using production
possibilities curve. (1)
2. When Marginal product rises , total product ( Choose the correct alternative) (1)
A. Falls
B. Rises
C. Can rise or can fall
D. Remains constant
3. What policy initiatives can the government undertake to increase the demand of milk
in the country? Mention any one. (1)
4. The total cost at 5 units of output is Rs. 30. The fixed cost is Rs.5. The Average
Variable Cost at 5 units of output is :- (1)
A. Rs.25
B. Rs. 6
C. Rs. 5
D. Rs.1
5. ' Profits received from investments abroad' is recorded in which account of balance of
payments account? (1)
6. What is real flow and money flow? (1)
7. A good is an ‘inferior' good for one and at the same time , ‘normal’ good for another
consumer. Do you agree? Explain with the help of an example. (1)
8. What are time deposits? (1)
9. State any three determinants of individual demand other than own price of a
commodity (say tea) and explain what happens to the demand of a good when
consumer's income changes? Explain. (3)
10. Which among the following are final goods and which are intermediate goods and
why? (3)
A. Computers installed in an office.
B. Mobile sets purchased by a mobile dealer.
C. Expenditure on maintainence by a firm
11. Explain the Central problems of an economy. (3)
12. A consumer consumes only two goods A and B and is in equilibrium. Show that when
price of good B falls , demand for good B rises. Use Utility analysis. (3)
13. Why is the Average Revenue curve of a firm under perfect competetion is
parallel to X axis and negatively sloped under monopoly?
14. What is Indifference Curve? State and explain the characteristics of Indifference
curve? (4)
15. Explain the role of the Reserve Bank of India as the “ Lender of last resort" and “
Clearing house". (4)
16. Complete the following table:- (4)

OUTPUT Average Variable Total Cost Marginal cost

cost
1 - 60 20
2 18 - -
3 - - 18
4 20 120 -
5 22 - -

17. The indian rupee starts improving. On 28th september 2012 it gains 17 paisa which
lead to a rise in demand for foreign exchange. Is the statement true amd also explain
why foreign exchange is demanded in India? What possible steps can be taken by RBI
to improve the exchange rate? (4)
18. Raman and amar are discussing about the price payable and the price on which a
commodity is sold. But Raman said that both of them are equal and one and the same
thing. Amar said that raman is wrong. The teacher clarified the Concept. Explain who
is correct with both numerical and descriptive ways. (4)
19. A consumer consumes only two goods. Explain the condition that need to be satisfied
for the consumer to be in equilibrium using Indifference Curve Analysis. (6)
20. What does Law of Variable proportion show? State the behaviour of Total and
Marginal Product with reasons.Use diagram. (6)
21. A. Explain the distinction between the Revenue expenditure and Capital expenditure
in a government budget.
B. Tax rates on higher income groups have been increased and government
raises its expenditure on producing public goods. Which economic value does it
reflect? Explain. (6)
22. Complete the following table:- (6)
Output(units) Average Fixed Cost Marginal cost Total Cost
1
2 20 164
3 40 16
4 198
5 24 20

23. What is law of demand? Why does it slopes downwards to the right and what are the
exceptions? ( Any two) . Comment on the position of demand curve if the price of:-
A. Substitute good rises
 B. Complementary good falls. (6)
24. From the following schedule of a product produced by a firm. The market price
per unit of a product at all levels of output is Rs.12. find out each level of output ,
profit and the level at which the producer is in equilibrium. Give reasons.
(3+3=6)
O u t p u t ( U n i t s ) A v e r a g e C o s t
1 1 2
2 1 1
3 1 0
4 1 0
5 1 0 . 4
6 1 1