CBSE Question Paper 2015 class 12 Economics

General Instructions:

• All questions in both the sections are compulsory.
• Marks for questions are indicated against each question.
• Questions No.1-3 and 15-19 are very short-answer questions carrying 1 mark each.
• They are required to be answered in one sentence each.
• Questions No. 4-8 and 20-22 are short-answer questions carrying 3 marks each.
• Answers to them should normally not exceed 60 words each.
• Questions No. 9-10 and 23-25 are also short-answer questions carrying 4 marks
• each. Answers to them should normally not exceed 70 words each.
• Questions No. 11-14 and 26-29 are long-answer questions carrying 6 marks each.
• Answers to them should normally not exceed 100 words each.
• Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

Section – A

1. The demand curve of a goods shifts from DD’ to dd’.

This shift can be caused by: (Choose the correct alternative)

(a) fall in the price of the goods.

(b) rise in the price of the goods.

(c) rise in the price of substitute goods.

(d) rise in the price of complementary goods.

2. When 5 units of a goods are sold, total revenue is Rs.100. When 6 units are sold, marginal revenue is Rs.8. At what price are 6 units sold? (Choose the correct alternative)

(a) Rs 28 per unit

(b) Rs 20 per unit

(c) Rs 18 per unit

(d) Rs 12 per unit

3. Suggest any one economic measure by which the government can promote consumption of ‘Khadi’.

4. Do rich countries also face central problems? Give reasons for your answer.

5. Explain the effects of floods in Jammu and Kashmir on its production possibilities frontier.

6. Why does the government of India fix ‘support price’ for some crops? Explain.

7. Why is a firm under perfect competition a ‘price-taker’ and not a ‘price-maker’ ? Explain.

OR

Explain ‘non-price competition’ feature of oligopoly.

8 (a) True, because Average Product = and since TP is constant and variable input increases, AP will fall.

(b) False, rise in AC takes place when MC is greater than AC and not necessarily when MC rises.

8. State whether the following statements are true or false. Give reasons for your answer.

(a) When total product is constant average product will fall.

(b) Average cost will rise only when marginal cost rises.

9. Show that price and demand of a commodity are inversely related ? Use utility analysis.

OR

Explain any two factors that affect price elasticity of demand.

10. Define ‘market demand’ for a goods. State the factors that affect it.

11. Explain the conditions of producer’s equilibrium.

OR

What is the relationship between:

(a) Marginal revenue and Average revenue

(b) Total revenue and Marginal revenue

12.  Explain the law of variable proportions with the help of marginal product and total product curves.

13. Define consumer’s equilibrium. Explain its conditions under indifference curve analysis.

14. The market for commodity A is in equilibrium. The price of its inputs rises. Explain its chain of effects on equilibrium price, quantity demanded and supplied with the help of a diagram.

Section – B

15. Which one of the following is a combination of direct taxes? (Choose the correct alternative)

(a) Excise duty and Wealth tax

(b) Service tax and Income tax

(c) Excise duty and Service tax

(d) Wealth tax and Income tax

16. State the components of money supply.

17. Which of the following statements is true?

(a) Fiscal deficit is the difference between total expenditure and total receipts.

(b) Primary deficit is the difference between total receipt and interest payments.

(c) Fiscal deficit is the sum of primary deficit and interest payment.

18. Which of the following is not a flow? (Choose the correct alternative)

(a) Capital

(b) Income

(c) Investment

(d) Depreciation

19. Which of the following is not a function of money? (Choose the correct alternative)

(a) medium of exchange

(b) price stability

(c) store of value

(d) unit of account

20. What is the relationship between:

(i) Average propensity to consume and average propensity to save.

(ii) Marginal propensity to consume and investment multiplier.

OR

Give the meaning of:

(i) involuntary unemployment, and

(ii) inflationary gap

(b) The higher the MPC the greater is the value of multiplier.

OR

(a) Involuntary unemployment exists when willing and able bodied people do not get employment at prevailing wage rate.

(b) The excess of aggregate demand over aggregate supply at full employment is called inflationary gap.

21. Describe any three sources of demand for foreign exchange.

22. S = – 100 + 0.2 Y is the saving function in an economy. Investment expenditure is

5,000. Calculate the equilibrium level of income.

23. From the following data, calculate net value added at factor cost.

24. Distinguish between intermediate goods and final goods. Give an example of each.

OR

Explain the circular flow of income.

25. Distinguish between autonomous and accommodating transactions of balance of payments account. Explain the significance of this distinction.

26. Explain the need for reduction in inequalities of income and wealth. Explain any two budgetary measures by which it can be done.58/1/1 11 [P.T.O.

27. Describe any two main functions of a central bank.

OR

How do changes in Bank Rate affect the money supply in an economy? Explain.

28. Explain the changes that take place when aggregate demand and aggregate supply are not equal.

29. Calculate (a) national income and (b) gross national disposable income.