CBSE Class - XII Sample Paper
Economics - 2007
(Set I - Delhi)

Section - A

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

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

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

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.