CBSE Question Paper 2016 class 12 Economics

General Instructions:
(i) All questions in both sections are compulsory. However, there is internal choice in some questions.
(ii)Marks for questions are indicated against each question.
(iii) Question No.1-5 and 16-20 are very short answer questions carrying 1 mark each.
(iv) No.6-8 and 21-23 are short answer questions carrying 3 marks each.
(v) Question No.9-11 and 24-26 are also short answer questions carrying 4 marks each.
(vi) Question No.12-15 and 27-30 are long answer questions carrying 6 marks each.
(vii) Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section A

Q1 Demand curve of a firm is perfectly elastic under:
(Choose the correct alternative)
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly

Q2 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

Q3 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

Q4 When does “change in quantity demanded” take place?

Q5 What happens to the difference between Average Total Cost and Average Variable Cost as production is increased?

Q6 What is minimum price ceiling? Explain its implications.

OR

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

Q7 A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 4 and 3 respectively. Price of X and price of Y is Rs 3 per unit. Is consumer in equilibrium? What will be further reaction of the consumer? Give reasons.

Q8 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.

Q9 When price of a good rises from Rs 10 to Rs 12 per unit, the producer supplies 10 percent more. Calculate price elasticity of supply.

Q10 Define utility. Explain the Law of Diminishing Marginal Utility

Q11 Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed Cost as output is increased.

Q12 Explain the implications of the following in a perfectly competitive market :
(a) Large number of sellers
(b) Homogeneous products.

OR

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

Q13 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.

Q14 Explain three properties of indifference curves.

Q15 Why do central problems of an economy arise? Explain the central problem of “for whom to produce”?

Section B

Q16 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

Q17 Primary deficit equals :
(Choose the correct alternative)
(a) Borrowings
(b) Interest payments
(c) Borrowings less interest payments
(d) Borrowings and interest payments both

Q18 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

Q19 Define fiscal deficit.

Q20 Define flows.

Q21 An economy is in equilibrium. Find investment expenditure :

Q22 If nominal income is Rs 500 and price index is 125, calculate real income.

Q23 What is aggregate demand? State its components.

Q24 Explain the role of Cash Reserve Ratio in controlling credit creation. 

Q25 Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

Q26 Explain the ‘medium of exchange’ function of money. How has it solved the related problem created by barter?

Q27 Calculate Net National Product at Market Price and Private income.

Q28 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 the leading on market exchange rate.

Q29 Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

Q30 What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.

Or

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

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