Download Economics Question Papers Class XII (12th)- 2007

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Economics - 2007

(Set I - Delhi)

1. All questions in both the sections are compulsory,
2. Marks for questions are indicated against each.
3. Questions No. 1 and 13 are very short-answer questions carrying 1 mark for each part. They are required to be answered in one sentence each.
4. Questions No. 2-5 and 14-17 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5. Questions No. 6-9 and 18 -21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6. Questions No. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as possible.
8. All parts of a question should be answered at one place.

Q. 1. Answer the following questions :

1. Why does an economic problem arise?
2. Define opportunity cost.
3. What does a rightward shift of production possibility curve indicate?
4. Define microeconomics. 1×4

Q. 2. Explain the effect of increase in income of the consumer on the demand for a good. 3

Q. 3. State three causes of increase in supply. 3

Q. 4. Explain the relation between marginal cost and average cost. 3

Q. 5. Explain producer’s equilibrium with the help of a diagram. 3

Or

Explain the meaning and conditions of producer’s equilibrium.

Q. 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. 4

Or

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 ?

Q.7. Give meaning of:

1. production function
2. Supply
3. revenue, and
4. cost 4

Q. 8. Calculate ‘total variable cost’ and ‘total cost’ from the following cost schedule of a firm whose fixed costs are Rs. 10. 4

Output (units) :	1	2	3	4
Marginal cost (Rs.) :	6	5	4	6

Q. 9. At a given price there is excess demand for a good. Explain how the equilibrium price will be reached. Use diagram. 4

Or

What is meant by ‘excess demand’ for a good ? Explain the changes which will bring about equilibrium price.

Q. 10. Distinguish between :

1. Individual demand and market demand.
2. Change in demand’ and ‘change in quantity demanded’ 6

Q. 11. State the phases of the law of variable proportions in terms of total physical product. Use diagram. 6

Or

State the phases of the law of variable proportions in terms of total physical product and marginal physical product.

Q. 12. Explain the following features of perfect competition : 6

1. Large number of buyers and sellers
2. Homogeneous products

Or

Explain the following :

1. ‘Free entry and exit’ feature of perfect competition,
2. ‘Differentiated products’ feature of monopolistic competition.

Section - B

Q.13. Answer the following questions : 1×4

1. Define macroeconomics.
2. Give two examples of macroeconomic studies.
3. What does balance of payments account of a country record ?
4. Name the items included in balance of trade account.

Q. 14. Calculate ‘private income’ from the following data : 3

	(Rs. crores)
(i) National debt interest	30
(ii) Gross national product at market price	400
(iii) Current transfers from government	20
(iv) Net indirect taxes	40
(v) Net current transfers from the rest of the world	(-) 10
(vi) Net domestic product at factor cost accruing to government	50
(vii) Consumption of fixed capital	70

Q. 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. 3

Q. 16. Give meanings of : 3

1. involuntary unemployment
2. full employment, and
3. under employment equilibrium

Q. 17. Give three sources each of demand and supply of foreign exchange. 3

Q. 18. Give meaning of money. Explain the ‘store of value’ function of money. 4

Or

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

Q. 19. Explain the’acceptance of deposits’function of commercial banks. 4

Q. 20. Distinguish between ‘revenue receipt’ and ‘capital receipt’ and give two examples of each. 4

Q. 21. What is ‘fiscal deficit’ ? What are its implications ? 4

Q. 22. Calculate national income and gross national disposable income from the following data: 4+2

	(Rs. crores)
(i) Current transfers by government	15
(ii) Private final consumption expenditure	400
(iii) Net current transfers from the rest of the world	20
(iv) Government final consumption expenditure	100
(v) Net factor income from abroad	(-) 10
(vi) Net domestic capital formation	80
(vii) Consumption of fixed capital	50
(viii) Net exports>	40
(ix) Net indirect taxes	60

Q.23. Explain the production method of estimating national income. 6

Or

Explain the income method of estimating national income.

Q. 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. 6

Or

Explain the meaning of’excess demand’ and ‘deficient demand’ in an economy.

Explain the role of bank rate in correcting excess demand.

Economics - 2007

(Set II - Delhi)

1. All questions in both the sections are compulsory,
2. Marks for questions are indicated against each.
3. Questions No. 1 and 13 are very short-answer questions carrying 1 mark for each part. They are required to be answered in one sentence each.
4. Questions No. 2-5 and 14-17 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5. Questions No. 6-9 and 18 -21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6. Questions No. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as possible.
8. All parts of a question should be answered at one place.

Q. 1. Answer the following questions : 1×4 = 4

1. Give two reasons for the problem of choice.
2. Give one reason for a rightward shift of the Production Possibility Curve,
3. Give two examples of microeconomic studies.
4. What does the problem ‘for whom to produce’ refer to ?

Q. 2.Explain the effect of rise in the prices of related goods on the demand of a good. 3

Q. 3. State three causes of decrease in supply. 3

Q.4. Explain the relation between marginal revenue and total revenue. 3

Q. 5. Draw straight line supply curves with price elasticity of supply equal to (i) one, (ii) less than one and (iii) more than one. 3

Or

Distinguish between fixed cost and variable cost and give one example of each.

Q. 6. When price of a good falls by 10 percent, its quantity demanded rises from 40 units to 50 units. Calculate price elasticity of demand by the percentage method. 4

Or

A consumer buys 50 units of a good at a price of Rs. 10 per unit. When price falls to Rs. 5 per unit he buys 100 units. Find out price elasticity of demand by the ‘Total Expenditure Method’.

Q. 7. Give meanings of (i) marginal physical product, (ii) marginal cost, (iii) marginal revenue and (iv) supply schedule. 4

Q. 8. Calculate Total Variable Cost and Marginal Cost from the following cost schedule of a firm whose Total Fixed Costs are Rs. 12 : 4

Q. 9. How is the equilibrium price of a commodity affected by a leftward shift of the demand curve ? Explain with the help of a diagram. 4

Or

How is the equilibrium price and quantity of a commodity affected by a decrease in its demand ?

Q. 10. Distinguish between the following : 6

1. Normal good and Inferior good
2. Marginal utility and Total utility
3. Individual demand schedule and Market demand schedule

Q. 11. Identify the three phases of the Law of Variable Proportions from the following and also give reason behind each phase : 6

Q. 12. Explain briefly the three features of perfect competition. 6

Or

Explain the features of monopoly market.

SECTION - B

Q. 13. Answer the following questions : 1×4

1. Define macroeconomics.
2. Give two examples of the study of aggregates of the economic system.
3. List two items of the capital account of balance of payments account.
4. What is the difference between the values of exports of goods and imports of goods called ?

Q. 14. Calculate Personal Income from the following data : 3

	(Rs. crores)
(i) Undistributed profits of corporations	20
(ii) Net domestic product accruing to the private sector	500
(iii) Corporation tax	55
(iv) Net factor income from abroad	(—) 10
(v) Net current transfers from government	15
(vi) National debt interest	40
(vii) Net current transfers from the rest of the world	15

Q. 15. An increase in investment leads to total rise in national income by Rs. 500 crores. If Marginal Propensity to Consume is 09, what is the increase in investment ? Calculate. 3

Q. 16. Give meanings of (i) aggregate demand, (ii) aggregate supply and (iii) excess demand. 3

Q. 17. How is foreign exchange rate determined ? Use diagram. 3

What is foreign exchange market ? How is foreign exchange rate determined in this market ?

Q. 18. Give meaning of money supply,. State its components. 4

Or

Give meaning of money. Explain its ‘medium of exchange’ function.

Q. 19. Explain briefly the ‘banker to the government’ function of the central bank. 4

Q. 20. Distinguish between ‘revenue expenditure’ and ‘capital expenditure’. Give two examples of each. 4

Q. 21. Distinguish between ‘fiscal deficit’ and ‘revenue deficit’. What does fiscal deficit indicate ? 4

Q. 22. Calculate Gross National Product at Market Price and Net National Disposable Income from the following data : 4, 2

	(Rs. crores)
(i) Current transfers from government (ii) Compensation of employees (iii) Net current transfers from the rest of the world (iv) Rent (v) Consumption of fixed capital (vi) Interest (vii) Net indirect tax (viii) Profit (ix) Mixed income of the self-employed (x) Net factor income from abroad	25 600 20 100 50 120 110 80 200 (—) 10

Q. 23. Explain the ‘expenditure’ method of estimating national income. 6

Or

Explain the term ‘compensation of employees’ and its components. Giving reasons, state whether the following are treated as compensation of employees :

1. Gifts by employers
2. Bonus

Q. 24. What is ‘deficient demand’ in macroeconomics ? Show it on a diagram. Explain the role of open market operations in correcting it. 6

Distinguish between ‘deficient demand’ and ‘excess demand’ in macroeconomics. Explain the role of open market operations in correcting deficient demand.

Economics - 2007

(Set III - Delhi)

1. All questions in both the sections are compulsory,
2. Marks for questions are indicated against each.
3. Questions No. 1 and 13 are very short-answer questions carrying 1 mark for each part. They are required to be answered in one sentence each.
4. Questions No. 2-5 and 14-17 are short-answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5. Questions No. 6-9 and 18 -21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6. Questions No. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as possible.
8. All parts of a question should be answered at one place.

Q. 1. Answer the following questions : 1×4

1. Define marginal opportunity cost.
2. Why is a production possibility curve concave ?
3. State two characteristics of resources which give rise to an economic problem.
4. Give two examples of microeconomic studies

Q. 2. Give meaning of (i) demand, (ii) normal good and (iii) inferior good. 3

Q. 3. Explain the effect of ‘input price changes’ on the supply of a good. 3

Q. 4. Explain the relation between marginal revenue and average revenue. 3

Q. 5. Draw Average Total Cost, Average Variable Cost and Marginal Cost curves in a single diagram. 3

Or

When is supply of a commodity said to be (i) elastic, (ii) inelastic and (iii) perfectly inelastic ?

Q. 6. Price of a good rises from Rs. 10 per unit to Rs. 11 per unit. As a result quantity demanded of that good falls by 10 percent. Calculate its price elasticity of demand. 4

Or

A consumer buys 70 units of a good at a price of Rs. 7 per unit. When price falls to Rs. 6 per unit, he buys 90 units. Use Total Expenditure Method to find whether the demand for the good is elastic or inelastic.

Q. 7. Give meanings of (i) marginal physical product, (ii) fixed cost, (iii) variable cost, and (iv) total revenue. 4

Q. 8. Calculate Marginal Cost and Total Cost from the following Cost Schedule of a firm whose

Total Fixed Costs are Rs. 15 : 4

Q. 9. How is the equilibrium price of a good determined ? Explain with the help of diagram a situation when both demand and supply curves shift to the right but equilibrium price remains the same. 4

Or

Explain with the help of a schedule how equilibrium price of a good is determined.

Q. 10. Explain the term ‘change in demand’ and represent the same graphically. Also state three factors responsible for ‘change in demand’. 6

Or

Explain the terms ‘change in demand’ and ‘change in quantity demanded’. Also state three factors responsible for ‘change in demand’.

Q. 11. Distinguish between ‘returns to a factor’ and ‘returns to scale’. Explain briefly returns to scale by giving numerical examples 6

Q. 12. Explain briefly three features of monopolistic competition. 6

Or

Explain the features of monopoly.

SECTION - B

Q. 13. Answer the following questions : 1×4

1. What is macroeconomics ?
2. Give two examples of macroeconomic studies.
3. What is balance of trade ?
4. Give meaning of balance of payments.

Q. 14. Calculate Personal Disposable Income from the following data : 3

	(Rs. crores)
(i) Personal taxes	60
(ii) Net national product at factor cost accruing to the private sector	600
(iii) Undistributed profits	10
(iv) National debt interest	50
(v) Corporation tax	100
(vi) Net current transfers from the rest of the world	(—) 20
(vii) Current transfers from government	30

Q. 15. In an economy, marginal propensity to save is 0.2. Investment increases by Rs. 100 crores. Calculate total increase in national income. 3

Q. 16. Give meanings of (i) cash reserve ratio, (ii) bank rate and (iii) open market operations. 3

Q. 17. Distinguish between ‘visible trade’ and ‘invisible trade’ in balance of payments. Give one example of each. 3

Q. 18. What is barter ? Explain the ‘unit of value’ function of money. 4

Or

What is money ? Explain the ‘store of value’ function of money.

Q. 19. Explain the ‘banker’s bank and supervisor’ function of the central bank. 4

Q. 20. Distinguish between direct tax and indirect tax. Give two examples of each. 4

Q. 21. Distinguish between (i) tax and non-tax revenues and (ii) developmental and non-developmental expenditures. 4

Q. 22. Calculate ‘national income’ and ‘net national disposable income’ from the following data : 4, 2

	(Rs. crores)
(i) Current transfers from government	35
(ii) Private final consumption expenditure	500
(iii) Net current transfers from the rest of the world	(—) 10
(iv) Government final consumption expenditure	150
(v) Net factor income from abroad	(—) 20
(vi) Net domestic capital formation	100
(vii) Net indirect tax	120
(viii) Net exports	50

Q. 23.Explain the income method of estimating national income. 6

Or

Explain the distinction between ‘domestic product’ and ‘national product’ on the basis of concepts of resident and domestic territory.

Q. 24. Explain determination of equilibrium level of income through the Savings - Investment approach. Use diagram. What changes will take place when the economy is not in equilibrium ? Explain. 6

Explain determination of equilibrium level of income by the (i) Savings - Investment approach and (ii) Aggregate demand - Aggregate supply approach. What changes will take place when the economy is not in equilibrium ?