CBSE Question Paper for Examination 2017 -Class XII All India Scheme

Question Paper for Examination 2017

Class XII All India Scheme

ECONOMICS

Time allowed: 3 hours Maximum Marks: 100

General Instructions:

(i) All questions in both the 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. Any statement about demand for a good is considered complete only when the following is/are mentioned in it (Choose the correct alternative):

(a) Price of the good

(b) Quantity of the good

(d) All of the above

2. Demand for a good is termed inelastic through the expenditure approach when if (Choose the correct alternative)

(a) Price of the good falls, expenditure on it rises

(b) Price of the good falls, expenditure on it falls

(d) Price of the good rises, expenditure on it falls

3. Define indifference curve.

4. A seller cannot influence the market price under (Choose the correct alternative)

(a) Perfect competition

(b) Monopoly

(d) All of the above

5. State any one feature of monopolistic competition

Three Marks Questions

6. Give the meaning and characteristics of production possibility frontier.

7. Explain the problem of ‘‘how to produce’’. (Set-1)

7. Explain the problem of ‘‘for whom to produce’’. (Set-2)

7. Explain the problem of ‘‘what to produce’’. (Set-3)

8. Distinguish between ‘increase in demand’ and ‘increase in quantity demanded’ of a good.

Explain the meaning of ‘Budget set’ and ‘Budget line’.

Four Marks Questions

9. Explain with the help of a numerical example, the meaning of diminishing marginal rate of substitution.

10. Define market supply. Explain the factor ‘input prices’ that can cause a change in supply.

Give the behaviour of marginal product and total product as more and more units of only one input are employed while keeping other inputs as constant.

11. Explain ‘‘perfect knowledge about the markets’’ feature of perfect competition.

Six Marks Questions

12. When the price of a good rises from ₹ 10 per unit to ₹ 12 per unit, its quantity demanded falls by 20 percent. Calculate its price elasticity of demand. How much would be the percentage change in its quantity demanded, if the price rises from ₹ 10 per unit to ₹ 13 per unit?

13. Complete the following table: (Set-1)

Output (units)	Average Fixed Cost(₹)	Marginal Costs(₹)	Average Variable Costs(₹)	Average Cost
1	60	20	-----	-----
2	------	-----	19	-----
3	20	-----	18	-----
4	-----	18	-----	------
5	12	-----	-----	31

13. Complete the following table: (Set-2)

Output (units)	Total Cost(₹)	Average Variable Costs(₹)	Marginal Costs (₹)	Average Fixed Cost (₹)
0	30	----
1	----	----	25	30
2	78	----	----	----
3	----	23	----	10
4	----	----	23	----
5	150	----	----	6

13. Complete the following table: (Set-3)

Output (units)	Average Fixed Cost (₹)	Average Variable Costs (₹)	Marginal Costs (₹)	Total Cost (₹)
1	120	40	----	----
2	60	56	----	232
3	----	54	----	----
4	30	----	54	----
5	----	----	----	----

14. From the following total cost and total revenue schedule of a firm, find out the level of output, using marginal cost and marginal revenue approach, at which the firm would be in equilibrium. Give reasons for your answer. (Set-1)

Output (units)	Total Revenue (₹)	Total Cost (₹)
1	10	8
2	18	15
3	24	21
4	28	25
5	30	33

14. From the following table find out the level of output at which the producer will be in equilibrium (use marginal cost and marginal revenue approach). Give reasons for your answer. (Set-2)

Output (units)	1	2	3	4	5
Total Revenue (₹)	16	30	42	52	60
Total Cost (₹)	14	27	39	49	61

14. From the following data find out the level of output that will give the producer maximum profit (use marginal cost and marginal revenue approach). Give reasons for your answer. (Set-3)

Output (units)	1	2	3	4	5
Total Cost (₹)	9	17	24	29	36
Total Revenue (₹)	11	20	27	32	35

15. Distinguish between perfect oligopoly and imperfect oligopoly. Also explain the ‘‘interdependence between the firms’’ feature of oligopoly.

Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.

SECTION B

One Mark Question

16. Demand deposits include (Choose the correct alternative)

(a) Saving account deposits and fixed deposits

(b) Saving account deposits and current account deposits

(d) All types of deposits

17. Define marginal propensity to consume. (Set-2)

17. Define marginal propensity to save. (Set-3)

18. If the marginal propensity to consume is greater than marginal propensity to save, the value of the multiplier will be (Choose the correct alternative)

(a) greater than 2

(b) less than 2

(d) equal to 5

19. Define Government budget.

19. Define revenue deficit.

20. What is meant by depreciation of domestic currency?

Three Marks Questions

21. Explain with the help of an example, the basis of classifying goods into final goods and intermediate goods. (Set-1)

21. Explain the circular flow of income. (Set-2)

21. Distinguish between stocks and flows. Give an example of each. (Set-3)

22. Explain ‘‘difficulty in storing wealth’’ problem faced in the barter system of exchange.

Explain the ‘‘medium of exchange’’ function of money.

23. Distinguish between direct taxes and indirect taxes. Give an example of each.

Four Marks Questions

24. Explain the ‘‘bankers’ bank’’ function of the central bank.

Explain the process of credit creation by commercial banks.

25. An economy is in equilibrium. From the following data, calculate the marginal propensity to save:

(a) Income = 10,000

(b) Autonomous consumption = 500

26. Explain how government budget can be helpful in bringing economic stabilization in the economy. (Set-1) & (Set-2)

26. What are non-debt creating capital receipts? Give two examples of such receipts. (Set-3)

Six Marks Questions

27. Distinguish (a) between current account and capital account, and (b) between autonomous transactions and accommodating transactions of balance of payments account.

28. Explain the precautions that should be taken while estimating national income by expenditure method. (Set-1) & (Set-3)

Will the following be included in the domestic product of India? Give reasons for your answer.

(a) Profits earned by foreign companies in India

(b) Salaries of Indians working in the Russian Embassy in India

28. Explain the precautions that are taken while estimating national income by value-added method. (Set-2)

Will the following be included in the national income of India? Give reasons for your answer.

(a) Financial assistance to flood victims

(b) Profits earned by the branches of a foreign bank in India

29. Calculate (a) National Income, and (b) Net National Disposable Income :( ₹ in crores)

(Set-1)

(i) Compensation of employees 2,000

(ii) Rent 400

(iii) Profit 900

(iv) Dividend 100

(v) Interest 500

(vi) Mixed income of self-employed 7,000

(vii) Net factor income to abroad 50

(viii) Net exports 60

(ix) Net indirect taxes 300

(x) Depreciation 150

(xi) Net current transfers to abroad 30

29. Calculate the (a) Net National Product at market price, and (b) Gross National Disposable Income: (₹ in crores) (Set-2)

(i) Mixed income of self-employed 8,000

(ii) Depreciation 200

(iii) Profit 1,000

(iv) Rent 600

(v) Interest 700

(vi) Compensation of employees 3,000

(vii) Net indirect taxes 500

(viii) Net factor income to abroad 60

(ix) Net exports (–) 50

(x) Net current transfers to abroad 20

29. Calculate the (a) Gross National Product at market price, and (b) Net National Disposable Income: (₹in crores) (Set-3)

(i) Compensation of employees 2,500

(ii) Profit 700

(iii) Mixed income of self-employed 7,500

(iv) Government final consumption expenditure 3,000

(v) Rent 400

(vi) Interest 350

(vii) Net factor income from abroad 50

(viii) Net current transfers to abroad 100s

(ix) Net indirect taxes 150

(x) Depreciation 70

(xi) Net exports 40

30. Given a consumption curve, outline the steps required to be taken in deriving a saving curve from it. Use diagram.

30. Note: The following question is for the Blind Candidates only in lieu of Q. No. 30.

Give two alternative conditions of national income equilibrium. Explain what is likely to happen, if the economy is not in equilibrium.

Note:

We have tried to present the questions collectively from all three sets so to make it easy for you to read and understand.

Original pdf. of Class XII Question Paper for Examination 2017- All India Scheme is also available on https://www.cbse.gov.in/cbsenew/question-paper.html - A web page of CBSE Website.

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