(Download) CBSE Class-12 2016-17 Sample Paper And Marking Scheme (Economics)

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(Download) CBSE Class-12 2016-17 Sample Paper And Marking Scheme (Economics)

Time : 3 Hours Maximum Marks : 100

Instructions:

1. All questions in both sections are compulsory. However, there is internal choice in some questions.
2. Marks for questions are indicated against each question.
3. Question No.1-5 and 16-20 are very short answer questions carrying 1 mark each. They are required to be answered in one sentence.
4. Question No.6-8 and 21-23 are short answer questions carrying 3 marks each. Answers to them should not normally exceed 60 words each.
5. Question No.9-11 and 24-26 are also short answer questions carrying 4 marks each.
Answers to them should not normally exceed 70 words each.
6. Question No.12-15 and 27-30 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100 words each
7. Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section A: Microeconomics

1. When is a consumer said to be rational? (1)

2. Define normative economics, with a suitable example. (1)

3. State the meaning of `quantity demanded of a commodity`. (1)

4. If a firm’s production department data says that the total variable cost for producing 8 units and 10 units of output is 2,500 and 3,000 respectively, marginal cost of 10th unit will be
a. 100
b. 150
c. 500
d. 250

5. State any one assumption for the construction of the curve that shows the possibilities of potential production of two goods in an economy. (1)

6. State the behavior of Marginal Physical Product, under Returns to a Factor. (3)

7. Using appropriate schedules, briefly describe the determination of market equilibrium. (3)

8. “In a hypothetical market of mobile phones, the brand AWAAZ was leading the market share. Its nearest competitor VAARTA suddenly changed its strategy by bringing in a new model of the mobile phone at a relatively lesser price. In response, AWAAZ too slashed its price.”

Based on the above information, identify the form of market represented and discuss any one feature of the market.

Discuss the primary reason for ‘indeterminateness of demand curve’ under the oligopoly form of market. (3)

9. a. Arrange the following coefficients of price elasticity of demand in ascending order: -0.7, -0.3, -1.1, -0.8
b. Comment upon the degree of elasticity of demand for Good X, using the total outlay method, if the price of X falls from 18 per unit to 13 per unit and its quantity demanded rises from 50 units to 100 units. (1+3)

10. Identify which of the following is not true for the Indifference Curves. Give valid reasons for choice of your answer:
a. Lower indifference curve represents lower level of satisfaction.
b. Two regular convex to origin indifference curves can intersect each other.
c. Indifference curve must be convex to origin at the point of tangency with the budget line at the consumer’s equilibrium.
d. Indifference curves are drawn under the ordinal approach to consumer equilibrium.

OR

A consumer has total money income of 250 to be spent on two goods X and Y with prices of 25 and 10 per unit respectively. On the basis of the information given, answer the following questions:
a. Give the equation of the budget line for the consumer.
b. What is the value of slope of the budget line?
c. How many units can the consumer buy if he is to spend all his money income on good X?
d. How does the budget line change if there is a fall in price of good Y? (4)

11. Explain the concept of marginal opportunity cost using a numerical example. (4)

12. Define Price Floor. What is the common purpose of fixation of floor price by the government? Explain any one likely consequence of this nature of intervention by the government.

Define Price Ceiling. What is the common purpose for the price ceiling imposed by the government? Explain any one likely consequence of this nature of intervention by the government in the price determination process.