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CBSE Question Paper 2007 class 12 Economics

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CBSE Question Paper 2007 class 12 Economics conducted by Central Board of Secondary Education, New Delhi in the month of March 2007. CBSE previous year question papers with solution are available in myCBSEguide mobile app and cbse guide website. The Best CBSE App for students and teachers is myCBSEguide which provides complete study material and practice papers to cbse schools in India and abroad.

CBSE Question Paper 2007 class 12 Economics

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CBSE Question Paper 2007 class 12 Economics

Class 12 Economics list of chapters

Part-1 (Macro)

  1. Introduction
  2. National income accounting
  3. Money and Banking
  4. Income Determination
  5. The Government Budget and Economy
  6. Open Economy Macroeconomics

Part-2 (Micro)

  1. Introduction
  2. Theory of consumer behaviour
  3. Production and Costs
  4. Theory of the Firm Under Perfect Competition
  5. Market Equilibrium
  6. Non Competitive Markets

CBSE Question Paper 2007 class 12 Economics

General Instructions:

  • All questions in both the sections are compulsory.
  • Marks for questions are indicated against each.
  • Question Nos. 1 and 13 are very short answer questions carrying 1 mark for each part. They are required to be answered in o sentence each.
  • Question Nos. 2-5 and 14-I7 are short answer questions carrying 3 marks each. Answer to them should not normally exceed 60 words each.
  • Question Nos. 6-9 and 18-21 are also short answer questions carrying 4 marks each. Answer to them should not normally exceed 70 words each.
  • Question Nos. 10-12 and 22-24 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100 words each.
  • Answers should be brief and to the point and the above word limits be adhered to as far as possible.
  • All of the question should be answered at one place.


Q. 1. Answer the following questions:

i) Why does an economic problem arise ?
(ii) Define opportunity cost.
(iii) What does a rightward shift of production possibility curve indicate ?
(iv) Define microeconomics.

2. Explain the effect of increase in income of the consumer on the demand for a good.

4. Explain the relation between marginal cost and average cost.

5. Explain producer’s equilibrium with the help of a diagram.

6. A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit he buys 30 units. Calculate price elasticity of demand by the total expenditure method.


A consumer buys 80 units of a good at a price of Rs. 5 per unit. Suppose price elasticity of demand is (-)2. At what price will he buy 64 units ?

7. Give meaning of:

(i) production function
(ii) Supply
(iii) revenue, and
(iv) cost

8. Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10.

Output (units) :





Marginal cost (Rs.) :





9. At a given price there is excess demand for a good. Explain how the equilibrium
price will be reached. Use diagram.

10. Distinguish between :

(a) Individual demand and market demand.
(b) ‘Change in demand’ and ‘change in quantity demanded’

11. State the phases of the law of variable proportions in terms of total physical product. Use diagram.

12. Explain the following features of perfect competition:

(i) Large number of buyers and sellers
(ii) Homogeneous products


Explain the following:

(i) ‘Free entry and exit’ feature of perfect competition,
(ii) ‘Differentiated products’ feature of monopolistic competition.

Section B

13. Answer the following questions:

(i) Define macroeconomics.
(ii) Give two examples of macroeconomic studies.
(iii) What does balance of payments account of a country record ?
(iv) Name the items included in balance of trade account.

14. Calculate ‘private income’ from the following data :

(Rs. crores)

(i) National debt interest


(ii) Gross national product at market price


(iii) Current transfers from government


(iv) Net indirect taxes


(v) Net current transfers from the rest of the world

(-) 10

(vi) Net domestic product at factor cost accruing to government


(vii) Consumption of fixed capital


15. A Rs. 200 crore increase in investment leads to a rise in national income by Rs. 1000 crores. Find out marginal propensity to consume.

16. Give meanings of:

(i) involuntary unemployment
(ii) full employment, and
(iii) under employment equilibrium

17. Give three sources each of demand and supply of foreign exchange.

18. Give meaning of money. Explain the ‘store of value’ function of money.


What is ‘barter’? Explain ‘standard of deferred payment’ function of money.

19. Explain the ’acceptance of deposits’ function of commercial banks.

20. Distinguish between ‘revenue receipt’ and ‘capital receipt’ and give two examples of each.

21. What is ‘fiscal deficit’? What are its implications?

22. Calculate national income and gross national disposable income from the following data:

(Rs. Crores)

(i) Current transfers by government


(ii) Private final consumption expenditure


(iii) Net current transfers from the rest of the world


(iv) Government final consumption expenditure


(v) Net factor income from abroad

(-) 10

(vi) Net domestic capital formation


(vii) Consumption of fixed capital


(viii) Net exports


(ix) Net indirect taxes


23. Explain the production method of estimating national income.


Explain the income method of estimating national income.

24. Explain the problem of ‘excess demand’ in an economy with the help of a diagram. Explain the role of bank rate in cprrecting it.

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Last Year Question Paper Class 12 Economics 2007

Download class 12 Economics question paper with solution from best CBSE App the myCBSEguide. CBSE class 12 Economics question paper 2007 in PDF format with solution will help you to understand the latest question paper pattern and marking scheme of the CBSE board examination. You will get to know the difficulty level of the question paper.

Previous Year Question Paper for class 12 in PDF

CBSE question papers 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011, 2010, 209, 2008, 2007, 2006, 2005 and so on for all the subjects are available under this download link. Practicing real question paper certainly helps students to get confidence and improve performance in weak areas.

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