SAMPLE PAPER ECONOMICS (030) CLASS XII ( ) Time 3 Hrs Max. Marks 80
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1 SAMPLE PAPER ECONOMICS (030) CLASS XII (207-8) Time 3 Hrs Max. Marks 80 General Instructions. Question No. - and 3-6 is very short answer question carrying mark each. They are required to be answered in one sentence. 2. Question No. 5-6 and 7-8 is short answer question carrying 3 mark each. Answer to then should not normally exceed 60 words each. 3. Question No. 7-9 and 9-2 is also short answer question carrying mark each. Answer to then should not normally exceed 70 words each.. Question No. 0-2 and 22-2 is long answer question carrying 6 mark each. Answer to then should not normally exceed 00 words each. 5. Answer should be brief and to the point and the above word limit be adhered to as far as possible. SECTION A. When is a consumer said to be rational? 2. State the meaning of quantity demanded of a commodity. 3. Choice is created by: (a)abundance of resources (b)urgency of needs (c)non availability of resource (d) Scarcity of resources Ceteris Paribus,if the government provides subsidies on electricity bills,what would be the likely changes in the market demand of air conditioners? 3 5. Explain the central problem of an economy:. What to produce? 2. Whom to produce?
2 Or Explain the properties of production possibility frontier. 6. State the behaviour of Marginal physical product,under Returns to a factor Explain the difference between Shift of supply curve and Movement along supply curve. 8. Discuss the primary reason for indeterminateness of demand curve under the oligopoly form of market. Or Explain the implications of free entry and exit of firm under perfect competition. 9. A consumer buys 0 unit of a good at a price of rs 0 per unit. He incurs an expenditure of rs 200, when he buys 20 units. Calculate price elasticity of demand, using the percentage method.comment upon the shape of the demand curve based on this information.use diagram. 0. Define price ceiling.what is the common purpose for the price ceiling imposed by the government? Explain any two drawbacks of this policy. 6 Or Define price floor. What is the common purpose of fixation of floor price by the government? Explain any two positive outcomes of this policy.. (a) A consumer, Mr Ranjan is in state of equilibrium consuming two goods Xand Y with given price Px and Py. Explain what will happen if MUx/Px is greater than MUy/Py. (b)explain any two reasons of rightward shift in demand curve.use diagram Discuss the MR and MC approach for determining producers equilibrium when price remains same. 6 SECTION B
3 3.Supply of money refers to quantity of money : (a)as on 3 st March (b)as on any point of time (c)during any specified period of time (d) During a fiscal year.disinvestment by government means: (a)selling of its fixed capital assets (b)selling of shares of public enterprises held by it. (c)selling of its buildings (d)all the above 5. Fiscal deficit equals: (a)interest payment (b)borrowings (c)interest payment less borrowing (d)borrowing less interest payment 6.Which of the following is not quantitative method of credit control? (a)open market operation (b) CRR (c)margin requirement s (d)bank rate policy 7. Explain how depreciation of currency promotes exportes of country? 3 Depreciation and Devaluation of currency are one and the same thing.do you agree?how do they affect the export of a country? 8. What is meant by official reserve transactions?discuss their importance in BOP. 3 Or 9.. (a) Elaborate Economic Growth as an objective of government budget. (b) Differentiate Revenue expenditure and Capital expenditure.
4 20. Giving reasons, Explain how the following are treated in estimating National Income :. Electricity consumed by a firm 2. Pension paid to the retired employees. 3. Free treatment of poor in hospital.. Examination fees paid by the students. Calculating GDP tells us nothing about how income are distributed between population.elaborate the above statement. 2.Explain the banker s bank function of Apex bank. 22. What is inflationary gap? Show it on daigram. Explain the role of bank rate in correcting it. Or Explain how the economy achieves equilibrium level of income using AD-AS(C+I) approach. 23.State whether the following statements are true or false.give reasons for your answer: 6 (a)inventories accumulate when planned investment is less than planned saving. (b)inflationary gap exists when aggregate demand is greater than aggregate supply at full employment level. Or (c)average propensity to save can be negative. 2. Calculate National income and GNPmp from the following data : 6 Items Rs in crores Private final consumption expenditure 800 Net current transfer to abroad 20 Net factor income to abraod (-)0 Government final consumption expenditure 300
5 Net indirect taxes 50 Net domestic capital formation 200 Current transfers from government 0 Depreciation 00 Net imports 30 Income accruing to government 90 National debt interest 50
6
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