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

Code-58/1/2/3

Question Paper for Examination 2016

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

(Microeconomics)

One Mark Question

1. What is the relationship between Average Variable Cost and Average Total Cost, if Total fixed cost is zero? (Set-1)

1. What happens to the difference between Average Total Cost and Average Variable Cost as production is increased? (Set-2)

1. What happens to the difference between Total Cost and Total Variable Cost as output is increased? (Set-3)

2. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be: (Choose the correct alternative):

(a) Greater than average Revenue

(b) Less than Average Revenue

(c) Equal to Average Revenue

(d) Zero

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

3. What does ‘‘change in quantity demanded’’ take place? (Set-2)

3. When does ‘shift’ in supply curve takes place? (Set-3)

4. Differentiated products is a characteristic of: (Choose the correct alternative)

(a) Monopolistic competition only

(b) Oligopoly only

(c) Both monopolistic competition and oligopoly

(d) Monopoly

5. Demand curve of a firm is perfectly elastic under: (Choose the correct alternative)

(a) Perfect competition

(b) Monopoly

(c) Monopolistic competition

(d) Oligopoly

Three Marks Questions

6. A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 3 and 4 respectively. Prices of X and Y are ₹ 4 per unit each. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons. (Set-1)

6. A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 4 and 3 respectively. Prices of X and Y are ₹ 3 per unit each. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons. (Set-2)

6. A consumer consumes only two goods X and Y. The Marginal utilities of X and Y is 3. Prices of X and Y are ₹ 2 and ₹ 1 respectively. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons. (Set-3)

7. What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is (a) Zero, (b) -1, (c) -2.

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

If the prevailing market price is above the equilibrium price, explain its chain of effects.

Four Marks Questions

9. Define demand. Name the factors affecting market demand. (Set-1)

9. Define utility. Explain the Law of diminishing marginal utility. (Set-2)

9. Distinguish between individual’s demand and market demand. Name the factors affecting demand for a good by an individual. (Set-3)

10. Define fixed cost. Give an example. Explain with reason the behavior of Average Fixed Cost as output is increased.

Define marginal product. State the behavior of marginal product when only one input is increased and other inputs are held constant.

11. When price of a commodity falls from ₹ 12 per unit to ₹ 9 per unit, the producer supplies 75 percent less output. Calculate price elasticity of supply. (Set-1)

11. When price of a commodity rises from ₹ 10 per unit to ₹ 12 per unit, the producer supplies 10 percent more output. Calculate price elasticity of supply. (Set-2)

11. When price of a commodity rises from ₹ 8 per unit to ₹ 10 per unit, producer supplies 40 units more. Price elasticity of supply is 2. What is the quantity supplied before the price change? Calculate. (Set-3)

Six Marks Questions

12. Why do central problems of an economy arise? Explain the central problem “for whom to produce”?

13. Explain three properties of indifference curves.

14. Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.

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

Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply of a good. Use Schedule.

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

(a) Large number of sellers.

(b) Homogeneous products.

Explain the implications of the following in an oligopoly market:

(a) Barriers to entry of new firms.

(b) A few or a few big sellers.

SECTION B

(Macroeconomics)

One Mark Question

16. Define flows.

17. National income is the sum of factor incomes accruing to: (Choose the correct alternative)

(a) Nationals

(b) Economic territory

(c) Residents

(d) Both residents and non-residents

18. What are revenue receipts in a government budget? (Set-1)

18. Define Fiscal deficit. (Set-2)

18. What are capital receipts in a government budget? (Set-3)

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

(a) Borrowings

(b) Interest payments

(c) Borrowings less interest payments

(d) Borrowings and interest payments both

20. Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called: (Choose the correct alternative)

(a) Current transactions

(b) Capital transactions

(c) Autonomous transactions

(d) Accommodating transactions

Three Marks Questions

21. Assuming real income to be ₹ 200 crore and price index to be 135, calculate nominal income.(Set-1)

21. If nominal income is ₹ 500 crore and price index to be 125, calculate real income. (Set-2)

21. If real income is ₹ 400 and price index is 105, calculate nominal income. (Set-3)

22. What is aggregate demand? State its components.

Explain how controlling money supply is helpful in reducing excess demand.

23. An economy is in equilibrium. Calculate Marginal propensity to Consume: (Set-1)

National income = 1000

Autonomous consumption expenditure = 200

Investment expenditure = 100

23. An economy is in equilibrium. Find investment expenditure: (Set-2)

National income = 1200

Autonomous consumption expenditure = 150

Marginal Propensity to consume = 0.8

23. An economy is in equilibrium. Find investment expenditure: (Set-3)

National income = 1000

Autonomous consumption expenditure = 100

Marginal Propensity to consume = 0.8

Four Marks Questions

24. Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

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

Explain the ‘standard of deferred payment’ function of money. How has it solved the related problem created by barter?

26. Explain how ‘Repo Rate’ can be helpful in controlling credit creation. (Set-1)

26. Explain the role of Cash Reserve Ratio in controlling credit creation. (Set-2)

26. Explain the role of Reverse Repo Ratio in controlling credit creation. (Set-3)

Six Marks Questions

27. What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence distribution of income in the society.

What is the difference between direct tax and indirect tax? Explain the role of government budget in influencing allocation of resources.

28. Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

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

Explain consumption function. Derive saving function from consumption function.

29. Indian investors lend abroad. Answer the following questions:

(a) In which sub-account and on which side of the balance of Payments Account such lending is recorded? Give reasons.

(b) Explain the impact of this lending on market exchange rate.

30. Find Net National Product at Market Price and Private Income: (Set-1)

S.No.	Particulars	Amount in ( ₹ crores)
1.	Private final consumption expenditure	800
2.	Net current transfers to abroad	20
3.	Net factor income to abroad	(-)10
4.	Government final consumption expenditure	300
5.	Net indirect tax	150
6.	Net domestic capital formation	200
7.	Current transfers from government	40
8.	Depreciation	100
9.	Net imports	30
10.	Income accruing to government	90
11.	National debt interest	50

30. Find Gross National Product at Market Price and Private Income:(Set-2)

S.No.	Particulars	Amount in ( ₹ crores)
1.	Net current transfers to abroad	10
2.	Private final consumption expenditure	500
3.	Current transfers from government	30
4.	Net factor income to abroad	20
5.	Net Exports	(-)20
6.	Net indirect tax	120
7.	National debt interest	70
8.	Net domestic capital formation	80
9.	Income accruing to government	60
10.	Government final consumption expenditure	1000

30. Calculate National Income and Personal Disposable Income: (Set-3)

S.No.	Particulars	Amount in ( ₹ crores)
1.	Corporation tax	100
2.	Private final consumption expenditure	900
3.	Personal Income tax	120
4.	Government final consumption expenditure	200
5.	Undistributed profits	50
6.	Change in stocks	(-)20
7.	Net domestic capital formation	120
8.	Net imports	10
9.	Net indirect tax	150
10.	Net factor income from abroad	(-) 10
11.	Private income	1000

Note:

The above question paper for CBSE Economics 2016- 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 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 is also available on https://www.cbse.gov.in/cbsenew/question-paper.html

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