Class -12th CBSE Economics Question paper for Examination 2016-(Code-58/1, 2, 3)-Delhi Scheme

Code-58/1/2/3

Question Paper for Examination 2016

Class XII Delhi 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

(Microeconomics)

One Mark Question

1. What is the relation between marginal cost and average variable cost when marginal cost is rising and average variable cost is falling? (Set-1)

1. What is the relation between marginal cost and average cost when average cost is constant? (Set-2)

1. What is the relation between marginal cost and average cost when average cost is rising? (Set-3)

2. Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be: (choose the correct alternative)

(a) Greater than average Revenue

(b) Equal to Average Revenue

(c) Less than Average Revenue

(d) Rising

3. When does ‘increase’ in demand take place? (Set-1)

3. What does ‘increase in supply’ take place? (Set-2)

3. When does ‘decrease in supply’ take place? (Set-3)

4. ‘Homogeneous products’ is a characteristic of (Choose the correct alternative)

(a)Perfect competition only

(b) Perfect oligopoly only

(c) Both (a) and (b)

(d) None of above

5. There is inverse relation between price and demand for the product of a firm under: (choose the correct alternative)

(a) Monopoly

(b) Monopolistic competition

(c) Both under monopoly and monopolistic competition

(d) Perfect competition only

Three Marks Questions

6. A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 5 and 4 respectively. The Prices of X and Y are ₹ 4 per unit and ₹ 5 per unit respectively. Is the consumer in equilibrium? What will be further reaction of the consumer? Explain. (Set-1)

6. A consumer consumes only two goods X and Y. If marginal utilities of X and Y are 4 and 5 respectively, and if price of X is ₹ 5 per unit and that of Y is ₹ 4 per unit, is the consumer in equilibrium? What will be further reaction of the consumer? Explain. (Set-2)

6. A consumer consumes only two goods X and Y. Marginal utility of each is 2. The price per unit of X and Y is ₹ 1 and ₹ 2 respectively. Is the consumer in equilibrium? What will be further reaction of the consumer? Explain. (Set-3)

7. Price elasticity of demand of good X is −2 and of good Y is −3.Which of the two goods is more price elastic and why?

8. What is maximum price ceiling? Explain its implications.

Explain its chain of effects, if the prevailing market price is below the equilibrium price.

Four Marks Questions

9. Explain the effect of change in prices of the related goods on demand for the given good.(Set-1)

9. Explain the effects of change in income on demand for a good. (Set-2)

9. Explain the effect of (a) change in own price and (b) change in price of substitute on demand of a good. (Set-3)

10. Define production function. Distinguish between short run and long run production functions.

Define cost. Distinguish between fixed and variable costs. Give one example of each.

11. A producer supplies 80 units of a good at a price of Rs. 10 per unit. Price elasticity of supply is 4. How much will he supply at Rs. 9 per unit? (Set-1)

11. Price elasticity of supply of a good is 2. A producer supplies 100 units of a good at a price of Rs. 20 per unit. At what price will he supply 80 units? (Set-2)

11. When price of a commodity rises from ₹ 12 per unit to ₹ 15 per unit, the producer supplies 50 percent more output. What is the price elasticity of supply? Calculate. (Set-3)

Six Marks Questions

12. Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.

13. Explain the conditions of consumer’s equilibrium using indifference curve analysis.

14. Explain the distinction between “change in quantity supplied” and “change in supply”. Use diagram.

For blind candidates in lieu of Q. No. 14.

Explain the distinction between “change in quantity supplied” and “change in supply”. Use schedule.

15. Explain the implications of the following in a perfectly competitive market:

(a) Large number of buyers.

(b) Freedom of entry and exit to firms.

Explain the implications of the following in an oligopoly market:

(a) Inter-dependence between firms

(b) Non-price competition

SECTION B

(Macroeconomics)

One Mark Question

16. Define stocks.

17. Depreciation of fixed capital assets refers to: (choose the correct alternative)

(a) Normal wear and tear

(b) Foreseen obsolescence

(c) Normal wear and tear and foreseen obsolescence

(d) Unforeseen obsolescence

18. What is revenue expenditure? (Set-1)

18. What are revenue receipts in a government budget? (Set-2)

18. What is revenue deficit in government budget? (Set-3)

19. Fiscal deficit equals: (Choose the correct alternative)

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowings

(d) Borrowings less interest payments

20. Foreign exchange transactions which are dependent on other foreign exchange transactions are called: (Choose the correct alternative)

(a) Current account transactions

(b) Capital account transactions

(c) Autonomous transactions

(d) Accommodating transactions

Three Marks Questions

21. Find net value added at factor cost: (Set-1)

Particulars	Amount (₹ Lacs)
Durable use producer goods with a life span of 10 years	10
Single use producer goods	5
Sales	20
Unsold output produced during the year	2
Taxes on production	1

21. Find net value added at market price: (Set-2)

Particulars	Amount (₹ Lacs)
Fixed capital good with a life span of 5 years	15
Raw material	6
Sales	25
Net change in stock	(-)2
Taxes on production	1

21. Find gross value added at market price: (Set-3)

Particulars	Amount(₹ Lacs)
Depreciation	20
Domestic sales	200
Net change in stocks	(-)10
Exports	10
Single use producer goods	120

22. Distinguish between marginal propensity to consume and average propensity to consume. Give a numerical example.

Explain the role of taxation in reducing excess demand.

23. In an economy investment is increased by Rs. 300 crore. If marginal propensity to consume is 2/3, calculate increase in national income. (Set-1)

23. Suppose marginal propensity to consume is 0.8. How much increase in investment is required to increase national income by Rs. 2000 crore? Calculate. (Set-2)

23. In an economy an increase in investment by Rs. 100 crore led to ‘increase’ in national income by Rs. 1000 crore. Find marginal propensity to consume. (Set-3)

Four Marks Questions

24. Government incurs expenditure to popularize yoga among the masses. Analyse its impact on gross domestic product and welfare of the people.

25. Explain the ‘store of value’ function of money. How has it solved the related problem created by barter?

Explain the ‘unit of account’ function of money. How has it solved the related problem created by barter?

26. Explain how open market operations are helpful in controlling credit creation. (Set-1)

26. Explain how ‘bank rate’ is helpful in controlling credit creation. (Set-2)

26. Explain how ‘margin requirements’ are helpful in controlling credit creation? (Set-3)

Six Marks Questions

27. What is government budget? Explain how taxes and subsidies can be used to influence allocation of resources.

Define revenue receipts in a government budget. Explain how government budget can be used to bring in price stability in the economy.

28. Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.

For the Blind Candidates in lieu of Q. No. 28.

Explain the components of consumption function. Derive saving function from consumption function.

29. (a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Give reasons.

(b) What will be the effect of foreign investments in India on exchange rate? Explain.

30. Find national income and private income :( Set-1)

S.No.	Particulars	Amount in ( ₹crores)
1.	Wages and salaries	1000
2.	Net current transfers to abroad	20
3.	Net factor income paid to abroad	10
4.	Profit	400
5.	National debt interest	120
6.	Social security contributions by employers	100
7.	Current transfers from government	60
8.	National income accruing to government	150
9.	Rent	200
10.	Interest	300
11.	Royalty	50

30. Find net domestic product at factor cost and personal income: (Set-2)

S.No.	Particulars	Amount in ( ₹ crores)
1.	Rent	200
2.	Net current transfers to abroad	10
3.	National debt interest	60
4.	Corporate tax	100
5.	Compensation of employees	900
6.	Current transfers by government	150
7.	Interest	400
8.	Undistributed profits	50
9.	Dividend	250
10.	Net factor income to abroad	(-)10
11.	Income accruing to government	120

30. Find net national product at market price and personal disposable income: (Set-3)

S.No.	Particulars	Amount in ( ₹ crores)
1.	Personal taxes	200
2.	Wage and salaries	1200
3.	Undistributed profit	50
4.	Rent	300
5.	Corporation tax	200
6.	Private income	2000
7.	Interest	400
8.	Net indirect tax	300
9.	Net factor income to abroad	20
10.	Profit	500
11.	Social security contributions by employers	250

Note:

The above question paper for CBSE Economics 2016- Code 58/1/2/3 - Delhi Scheme 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 on which set numbers are not mentioned belong to all three sets 58/1/2/3.

Original pdf. of Class XII Question Paper for Examination 2016- Code 58/1/2/3- Delhi Scheme is also available on https://www.cbse.gov.in/cbsenew/question-paper.html

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