CBSE Economics Question Paper for Compartment Examination 2017-All India Scheme (Code-58/C/1, 2, 3)
Code-58/C/1/2/3
Class XII All India Scheme
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 – 5 and 16 – 20 are very
short-answer questions carrying 1 mark each. They are required to be
answered in one sentence each.
(iv) Question Nos. 6 – 8 and 21 – 23 are short-answer
questions carrying 3 marks each. Answers to them should normally not
exceed 60 words each.
(v) Question Nos. 9 – 11 and 24 – 26 are also
short-answer questions carrying 4 marks each. Answers to them should
normally not exceed 70 words each.
(vi)Question Nos. 12 – 15 and 27 – 30 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
One Mark Question
1. When is a good considered a normal good?
2. Demand for a
good is termed inelastic through the expenditure approach when if (Choose the
correct alternative) (Set-1)
(a) Price of the good falls,
expenditure on it rises
(b) Price of the good falls,
expenditure on it falls
(c) Price of the good falls,
expenditure on it remains unchanged
(d) Price of the good rises, expenditure on it falls
2. Define short-run production function. (Set-2) and (Set-3)
3. Let TR be total revenue, Q be quantity of output, and ‘n’ the number of units, then marginal revenue equals : (choose the correct alternative)
(a) TRn – TRn – 1 only
(b) Change in TR/ change in Q only
(c) Both (a) and (b)
(d) None of the above
4. There are large number of buyers and sellers in: (choose the correct alternative)
(a) Perfect
competition only
(b) Monopolistic
competition only
(c) Both in (a) and
(b)
(d) Oligopoly
5. What is meant
by price floor?
Three Marks Questions
6. Explain the
central problem “for whom to produce”.
OR
Explain the central problem “how to produce”.
7. Why is a typical production possibility curve concave? Explain
8. When price of a good rises from ₹1 to ₹ 2 per unit, quantity demanded falls from 100 units to 50 units. Calculate its price elasticity of demand. (Set-1)
8. When price of a good falls from ₹10 per unit to ₹7 per unit, quantity demanded of the good rises from 100 to 160 units. Calculate its price elasticity of demand. (Set-2)
8.
When
price of a good falls from ₹ 4 to ₹3 per unit, quantity demanded rises from 20
units to 30 units. Calculate its price elasticity of demand. (Set-3)
Four Marks Questions
9. Explain any
four factors that affect the supply of a good.
10. Identify the
equilibrium level of output using “marginal cost and marginal revenue” approach.
Give reasons for your answer.
|
Price (₹) |
Output (units) |
Total Cost (₹) |
Marginal Cost(₹) |
|
6 |
1 |
10 |
10 |
|
6 |
2 |
15 |
5 |
|
6 |
3 |
21 |
6 |
|
6 |
4 |
28 |
7 |
|
6 |
5 |
37 |
9 |
OR
Identify the three phases of the
law of variable proportions. Give reasons.
|
Variable input(units) |
Total Product (units) |
|
1 |
3 |
|
2 |
7 |
|
3 |
10 |
|
4 |
12 |
|
5 |
11 |
11. Explain the feature “few firms” and its implications in an oligopoly market. (Set-1)
11. What difference does it make to the market when we say that there are large numbers of sellers in a perfectly competitive market? Explain. (Set-2)
11. Explain the
implications of the feature “homogeneous products” of a perfectly competitive
market. (Set-3)
Six Marks Questions
12. A consumer consumes only two goods X and Y. Explain the conditions of consumer’s equilibrium using utility analysis.
13. Explain why is
an indifference curve (a) downward sloping from left to right and (b) convex.
OR
Explain the concept of Marginal Rate of Substitution and its behaviour along the typical indifference curve. Give a numerical example. Also give reason for its behaviour.
14. An individual undertakes retail business in the premises taken on rent. The business is financed by his own savings. He also manages the business himself. What are the explicit costs and implicit costs in it directly identifiable? Give reasons for your answer. (Set-1)
14.A person starts a taxi service. The taxi is financed by a bank. He himself drives the taxi. He also pays annual license fees to government. What are the explicit and implicit costs directly identifiable in it? Give reasons for your answer. (Set-2)
14. A person starts a goods transport business. He purchases a goods carrier using partly his own savings and partly borrows money. He drives the carrier himself. What are the explicit costs and implicit costs directly identifiable in it? Give reason for your answer. (Set-3)
15. The equilibrium
market wage rate is ₹14,000 per month. The government finding it low fixes
minimum wage rate at ₹18,000 per month. Examine the implications of this decision.
Use diagram.
For
the blind candidates only in lieu of Q. No. 15
Explain the implications of
fixing minimum wage rate higher than equilibrium market wage rate. Use a numerical
example.
SECTION B
One Mark Question
16. Goods purchased for the following purpose are final goods : (choose the correct alternative)
(a) For
satisfaction of wants
(b) For investment
in firm
(c) Both (a) and (b)
(d)
None of the above
17.
What is meant by real gross domestic product?
18. Which one of
the following is an indirect tax? (Choose the correct alternative)
(a) Profit Tax
(b) Wealth Tax
(c) Customs duty
(d) Gift Tax
19.
Define capital receipts in a government budget.
20. An Indian company located in India invests in a company located abroad. This transaction is entered in India’s balance of payments account on (choose the correct alternative)
(a) credit side of
current account
(b) debit side of
current account
(c) credit side of
capital account
(d) debit side of capital account
Three Marks Questions
21. Giving reason
state how the following are treated in estimation of national income :
(i) Payment of interest by banks
to its depositors.
(ii) Expenditure on old age
pensions by government.
(iii) Expenditure on engine oil by car service station.
22. What is the
difference between marginal propensity to consume and marginal propensity to
save? What is the relation between the two?
OR
What is meant by aggregate demand? State its components.
23. National income increases by ₹2500 crore when an additional investment of ₹500 crore is made. Calculate the value of investment multiplier. (Set-1)
23. National income increases by ₹1000 crore due to an additional investment of ₹400crores. Calculate the value of investment multiplier. (Set-2)
23.
National
income increases by ₹ 2,000 crores due to an additional investment of ₹400 crore.
Calculate the value of investment multiplier. (Set-3)
Four Marks
Questions
24. Suppose a ban
is imposed on consumption of liquor in the country. Examine its effects on (a)
gross domestic product and (b) welfare.
OR
How do the negative externalities affect the welfare of the people? Explain by taking an example.
25. If the legal reserve ratio is 20 percent and new deposits ₹ 1000, explain the process of credit creation by commercial banks. (Set-1)
25. If legal reserve ratio is 20 percent and new bank deposits ₹ 5000, explain the process of money creation by the commercial banks. (Set-2)
25. If legal reserve ratio is 10 percent and fresh deposits ₹ 10,000, explain the process of money creation by the commercial banks. (Set-3)
26. Explain the role of Reverse Repo Rate in increasing money supply. (Set-1)
26. Explain the role of bank rate in decreasing money supply. (Set-2)
26. Explain the role of statutory liquidity ratio in increasing money supply. (Set-3)
Six Marks
Questions
27. Explain the determination of equilibrium level of national income using ‘saving and investment’ approach. Use diagram. Also explain the effect if saving is greater than investment.
For blind candidates only in lieu of Q. No. 27.
Derive saving and investment approach from aggregate demand and aggregate supply approach for determination of equilibrium level of national income. Explain what happens if saving is greater than investment.
28. Government
provides essential items of food grains almost free to the families below the
poverty line. Which objective the government is trying to fulfill through the government
budget and how? Explain.
OR
Explain how the economic stabilization objective can be fulfilled through the government budget.
29. Distinguish between the fixed exchange rate and the floating exchange rate. If exchange rate falls, explain its effects on exports and imports.
30. Calculate (a) Net Domestic Product at Factor Cost and (b) Gross National Disposable Income:
(Set-1)
(₹ Crore)
(i)
Dividends 50
(ii)
Social security contribution by employers 40
(iii)
Corporate profit tax 30
(iv)
Consumption of fixed capital 60
(v)
Net factor income to abroad 20
(vi)
Retained earnings of private corporate sector 20
(vii)
Interest 150
(viii)Net
current transfers to rest of the world (-10)
(ix) Rent 100
(x)Net indirect taxes 70
(xi)
Compensation of employees 60
30. Calculate (a) Gross
Domestic Product at Market Price and (b) Net National Disposable Income:
(Set-2)
(₹ Crore)
(i)
Net Current transfers to the rest of the world (-10)
(ii)
Consumption of fixed capital 70
(iii)
Mixed income of self-employed 500
(iv)
Subsidies 20
(v)
Social security contributions by employers 100
(vi)
Operating surplus 300
(vii)
Wages and salaries 600
(viii)
Indirect tax 120
(ix) Net factor income to abroad 30
(x) Rent 80
30.
Calculate
(a) Net Domestic Product at Market Price and (b) Gross National Disposable Income:
(Set-3)
(₹ Crore)
(i) Net factor income to abroad (–)
20
(ii) Indirect taxes 120
(iii) Consumption of fixed
capital 70
(iv) Net current transfers to
abroad
10
(v) Compensation of employees 800
(vi) Mixed income of
self-employed 400
(vii) Subsidies 20
(viii) Rent 100
(ix) Interest 200
(x) Profits 300
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