Class -12th CBSE Economics Question paper for Examination 2018-(Code-58/1, 2, 3)

 Code No.-58/1/2/3

Question Paper for Examination 2018

Class XII

                                 ECONOMICS

Time allowed: 3 hours                                                   Maximum Marks:100                             

 

General Instructions:

 

(i) All questions in both sections are compulsory.

(ii) Marks for questions are indicated against each question.

(iii) Question Nos. 1 – 4 and 13 – 16 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each.

(iv) Question Nos. 5 – 6 and 17 – 18 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.

(v) Question Nos. 7 – 9 and 19 – 21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.

(vi)Question Nos. 10 – 12 and 22 – 24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.

(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

 

SECTION A

(Microeconomics)

One Mark Questions

 

1. State one example of positive economics.

2. Define fixed cost.

3. When the Average Product (AP) is maximum, the Marginal Product (MP) is: (Choose the correct alternative)

(a) Equal to AP

(b) Less than AP

(c) More than AP

(d) Can be any one of the above

4. When the total fixed cost of producing 100 units is ₹30 and the average variable cost ₹ 3, total cost is: (Choose the correct alternative)

(a) ₹3

(b) ₹30

(c) ₹270

(d) ₹330

Three Marks Questions

5.   Explain the central problem of ‘‘for whom to produce’’.

OR

     Explain the central problem of the ‘‘choice of technique’’.

6. What is meant by inelastic demand? Compare it with perfectly inelastic demand.

Four Marks Questions

7. Given the price of a good, how will a consumer decide as to how much quantity to buy of that good? Explain.

OR

What is Indifference Curve? State three properties of indifference curves.

8. When the price of a commodity changes from₹4 per unit to ₹5 per unit, its market supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is supply elastic? Give reason.

9. What is meant by price ceiling? Explain its implications.

Six Marks Questions

10. Explain the conditions of consumer’s equilibrium using Indifference Curve Analysis.

11. Explain the conditions of producer’s equilibrium in terms of marginal revenue and marginal cost.

12. State three characteristics of monopolistic competition. Which of the characteristics separates it from perfect competition and why?

OR

Explain the implications of the following:

(a) Freedom of entry and exit of firms under perfect competition

(b) Non-price competition under oligopoly

 

                                                     SECTION B

(Macroeconomics)

One Mark Questions

13. Which of the following affects national income? (Choose the correct alternative)

(a) Goods and Services tax

(b) Corporation tax

(c) Subsidies

(d) None of the above

14. Define money supply.

15. The central bank can increase availability of credit by (Choose the correct alternative)

(a) Raising repo rate

(b) Raising reverse repo rate

(c) Buying government securities

(d) Selling government securities

16. Why does consumption curve not start from the origin?

Three Marks Questions

17. Which among the following are final goods and which are intermediate goods? Give reasons.

(a) Milk purchased by a tea stall

(b) Bus purchased by a school

(c) Juice purchased by a student from the school canteen

OR

Given nominal income, how can we find real income? Explain.

18. Define multiplier. What is the relation between marginal propensity to consume and multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4.

Four Marks Questions

 

19. Explain the role of the Reserve Bank of India as the ‘‘lender of last resort’’.

20. What is meant by inflationary gap? State three measures to reduce this gap.

OR

       What is meant by aggregate demand? State its components.

21. The value of marginal propensity to consume is 0.6 and initial income in the economy is ₹100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of ₹ 80 crores.

 

Six Marks Questions

22. Explain the meaning of the following:

(a) Revenue deficit

(b) Fiscal deficit

(c) Primary deficit

OR

Explain the following objectives of government budget:

(a) Allocation of resources

(b) Reducing income inequalities

23. (a) Explain the impact of rise in exchange rate on national income.

       (b) Explain the concept of ‘deficit’ in balance of payments.

24. Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:  (₹ in crores)

 

            

S.No.	Particulars	Amount
1)	Rent and interest	6,000
2)	Wages and salaries	1,800
3)	Undistributed Profit	400
4)	Net indirect taxes	100
5)	Subsidies	20
6)	Corporation tax	120
7)	Net factor income to abroad	70
8)	Dividends	80
9)	Consumption of fixed capital	50
10)	Social security contribution by employers	200
11)	Mixed income	1,000

 

Note:

The above question paper for CBSE Economics  2018- Code 58/1/2/3 combines the questions from all three sets so as to make it easy for the students to understand and analyze all the questions while preparing for their  Board Examination. The questions presented in this post belong to all three sets 58/1,2,3.

Original pdf. of Class XII  Question Paper for Examination 2018- Code 58/1,2,3 is available on  https://www.cbse.gov.in/cbsenew/question-paper.html