PLEASE SOLVE ALL THESE SAMPLE QUESTION PAPERS
KENDRIYA
VIDYALAYA SANGATHAN BHOPAL REGION
Sample Paper No. 1 - 2016-17
CLASS - XII
SUBJECT – ECONOMICS
Time:3
Hrs. MM:
100
____________________________________________________________________________
Instructions
-
(i) All questions in both the sections are
compulsory
(ii) Marks for questions are indicated against
each.
(iii) Questions No. 1-5 and 16-20 are
very short-answer questions carrying 1 mark for each part. They are
required to be answered in one sentence each.
(iv) Questions No. 6-8 and 21-23 are
short-answer questions carrying 3 marks each .Answers to them should
normally not exceed 60 words each.
(v) Questions No. 9-11 and 24-26 are
also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
(vi) Questions No. 12-15 and 27-30 are
long-answer questions carrying 6 marks each. Answers to them should
normally not exceed 100 words each.
Section A
1. Give the meaning of opportunity cost.
(1)
2. What is the price elasticity of supply
of a commodity whose straight line supply curve passesthrough the origin?
(1)
3. Define –
Producer equilibrium. (1)
4. Which concept of revenue is
equal to price. (1)
5. Give the meaning of ‘oligopoly’ market. (1)
6. When
price of a commodity rise from Rs. 4 per unit to Rs. 5 per unit, TR decreases
from Rs. 600 to Rs500, Calculate its price
elasticity of demand. (3)
7. Explain the implication of
‘product differentiation’ feature of
monopolistic competition. (3)
OR
Explain the
implication of ‘Large no of buyers and sellers” feature of perfect
competition.
8. Explain the central problem ‘how to produce’ with the help
of an example. (3)
9. Explain the effect of a rise in the prices of ‘related goods’
on the demand for a good X. (4)
10. Why is an indifference curve convex to the origin? (4)
OR
Why does a higher indifference curve represent a
higher level of satisfaction?
11. Demand for electricity has “increased”.
However supply cannot be increased due to lack of resources. Explain how, in any
two ways, demand for electricity can be “decreased”.(4)
12. Explain law of
variable proportion with the help of curve. (6)
13. (A)
State the ‘law of supply’. What is meant by the
assumption ‘other things remaining the same’ on which the law is based? (3+3)
(B) State the distinction between explicit cost and implicit cost. Give an
example of each.
14. When
there is a simultaneous ‘decrease’ in demand and supply of a commodity. Then
what will be the effect on equilibrium price .
(Use diagrams) (6)
OR
What do you mean by excess demand? In the situation of excess
demand, how will the equilibrium price
be reached? Explain with the help of a diagram.
15. (a) What is a
budget line? What does the point on it indicate in terms of prices?(6)
(b) A consumer consumes only two goods X and Y. Her money income is Rs
24 and the prices of Goods X and Y are Rs 4 and Rs2respectively. Answer the
following questions:
(i)
Can the consumer afford a bundle 4X and 5Y? Explain
(ii) What
will be the MRSXY when the consumer is in equilibrium? Explain.
Section B
16. What is meant by foreign exchange? (1)
17. What is meant by Statutory Liquidity Ratio? (1)
18. Why tax is a revenue receipts?
(1)
19. The price of 1 US dollar has increased from Rs 50 to Rs60, has the Indian
currency appreciated or depreciated? (1)
20. State two sources of supply of foreign currency. (1)
21. Can an economy be in equilibrium when there is unemployment in
the economy? Explain. 3
22. How does money solve the problem of double coincidence of
wants? (3)
23. Calculate
Sales from following data - (3)
( Rs. In )
(i) Net value added add factor cost 300
(ii) Intermediate Consumption 200
(iii) Indirect tax 20
(iv) Depreciation 30
(v) Change in stock (-) 50
24. Define the term –
(4)
(i) Primary
deficit (ii) Revenue deficit.
(iii)
Fiscal deficit (iv) Capital
Expenditure
25. Explain the function of a Central Bank as a banker to the
government.
(4)
OR
Explain the
function of a Central Bank as a ‘Banker’s Bank and Supervisor’.
26. Define the term BOP. Distinguish between current account and
capital account of balance
of payment.
(4)
27. (a) How can
budgetary policy be used for reducing inequalities in income and wealth? (3+3)
(b) How can budgetary policy be used for allocation of resources in the
economy?
28. State whether the following statements are true or false. Give
reasons for your answer:
(a) Capital
formation is a flow.
(b) Bread is
always a consumer good.
(c) Nominal
GDP can never be less than Real GDP.
(d) Gross
domestic capital formation is always greater than gross fixed capital
formation.
29. In a two sector economy,
the income and consumption functions are as follows:
Y
= C + I and
C = 40+0.75 Y
If the
investments are Rs 60 Crore. Calculate -
(a) Equilibrium level of income.
(b) Level of consumption at equilibrium (c)
Saving at equilibrium.
OR
The savings function of an economy is S = - 200 + 0.25Y. The
economy is in equilibrium when income
is equal to 2,000. Calculate:
(a)
Investment expenditure at equilibrium level of income.
(b)
Autonomous consumption. (c ) Investment
multiplier.
30. From
the following data calculate National Income by Income and Expenditure
methods:
(Rscrores)
|
(i) Net domestic capital formation
|
360
|
|
(ii) interest
|
200
|
|
(iii) Rent
|
300
|
|
(iv) Private final consumption expenditure
|
1300
|
|
(v) Government final consumption expenditure
|
730
|
|
(vi) Net exports
|
(-) 20
|
|
(vii) Net indirect taxes
|
70
|
|
(viii) Net current transfers from rest of the world
|
80
|
|
(ix) consumption of fixed capital
|
60
|
|
(x) Net factor income from abroad
|
(-) 50
|
|
(xi) Profits
|
600
|
|
(xii) Compensation of employees
|
1200
|
KENDRIYA
VIDYALAYA SANGATHAN BHOPAL REGION
Sample Paper No. 2 - 2016-17
CLASS - XII
SUBJECT – ECONOMICS
Time:3 Hrs. MM:
100
General instructions: As given in Paper 1.
Section: -A
Q.1. What causes an upward movement along a
demand curve of a commodity?
(1)
Q.2 State the
relationship between price and quantity demanded. (1)
Q.3 State the
condition of producer’s equilibrium. (1)
Q.4 Total
product falls when:
(a) MP
is increasing (b) MP is maximum(c) MP=0 (d) MP is negative
Q.5. Slope of
budget line is:
(a)
Px /Py (b) Py/Px (c) MRS (d) Px.Py
Q.6 Explain why a production possibility curve
frontier concave.
OR
Explain
the central problem” how to produce “.
(3)
Q.7. The
Government is opening many schools and colleges in various parts of a country,
to spread education. Explain the effect of this action of the government in the
context of PPC.
Q.8. Explain
any three factors that can cause in “increase” in demand of a commodity (3)
Q.9. Demand for electricity has “increased”. However supply cannot be
increased due to lack of resources. Explain how, in any two ways, demand for
electricity can be decreased (4)
Q.10 What is total cost .differentiate between
variable and fixed cost of a firm
OR
Explain
the relationship between total revenue and marginal revenue (4)
Q.11 “’Profit is maximized of the point where
price line intersect marginal cost curve” prove. (4)
Q.12 What are the factor affecting elasticity of demand? (6)
Q.13 Can a seller in monopolistic competitive
market influence the price? (6)
Q.14 What is meant by market supply? How is it
obtained? Draw a diagram of market supply
Curve
with the help of imaginary supply schedule (6)
OR
Calculate total cost and average variable cost of a
firm each given level of output from its cost schedule given below.
Output 1
2 3 4 5 6
AFC 60 30 20 15 12 10
MC 32 30 28 30 35 43
Q.15 How equilibrium price is determined? What changes takes place in
the market when the prevailing price is greater than the equilibrium price?
Explain with diagram (6)
Section:-B
Q.16 State the two components of money supply. (1)
Q.17 What do you mean by Double Coincidence of
Wants under Barter system? (1)
Q.18 Define involuntary unemployment. (1)
Q.19 If MPC is 0 then, how much will be the Multiplier? (1)
Q.20 The market price of US dollar has increased considerably leading
to rise in prices of the imports of essential goods. What can Central Bank do
to ease the situation? (1)
Q.21. Distinguishes between net export of goods and services of net
factor income earned from abroad
OR
Give the meaning of nominal GDP and real GDP. Which of
these is the indicator of economic welfare and why? (3)
Q.22 How will you treat the following in
estimating national income?
1. Purchase of truck by a production
unit to carry goods.
2. Payment of corporation tax by a
production unit.
3. Services rendered by mother to
her family members.
Q.23 How
intermediate goods are different from final goods. (3)
Q.24 Using the
equation C=20+0.9Y construct a consumption schedule where income is 
200,
300,
400, &500, cores.
OR
Suggest
any four monitory policy measure to correct excess demand. (4)
Q.25 what is a
government Budget? Give the meaning of: (4)
(1)
Revenue deficit (2) Fiscal deficit (3) Primary deficit
Q.26 Categories
the following government receipts into
revenue receipts and capital receipts.
Give
reason for your answer. (4)
(1)
Receipts from sell of shares of a public sector undertaking.
(2)
Borrowing from public
(3)
Profits of public sector undertakings.
(4)
Income tax received by governments
Q.27 Explain the
process of money creation by commercial banks giving a numerical example
OR
Briefly
explain any four function of central bank
(6)
Q.28 Explain the
meaning of under employment equilibrium.
State to monitory policy Measures that can be taken to make the economy
reach full employment equilibrium. 6
Q.29 (a)
Explain the effect of the depreciation of domestic currency on exports.
(b) What are the components of
capital accounts of balance of payments? (3X2=6)
Q.30 Calculate
national income by income and expenditure method from following data :-(6)
Items (
in cores)
I.
Government final
consumption expenditure 100
II.
Subsidy 10
III.
Rent 200
IV.
Wages and salary 600
V.
Indirect taxes 60
VI.
Private final
consumption expenditure
800
VII.
Gross domestic
capital formation 120
VIII.
Social security
contribution by employers 55
IX.
Royalty
25
X.
Net factor income
to aboard ` 30
XI.
Interest 20
XII.
Depreciation 10
XIII.
Profit 130
XIV.
Net exports 70
XV.
Change in stock 50
KENDRIYA
VIDYALAYA SANGATHAN BHOPAL REGION
Sample Paper No. 3 - 2016-17
CLASS - XII
SUBJECT – ECONOMICS
Time:3 Hrs. MM:
100
General Instructions: As in Paper No 1
SECTION-
A
1
Give two example of fixed cost.
2
What is budget set?
3
When is a good call normal good?
4
Give the meaning of “Return to a factor”?
5. Under
which market form a firm’s revenue is always equal to price
6 When price of a commodity is Rs.5 then a consumer buys 100 units of a
commodity. At what price a consumer will buy 140 units of a good
when Ped=(-)2
7
Complete the table the following table
|
Output
(units)
|
Total
revenue
(Rs.)
|
Marginal
revenue (Rs.)
|
Average
revenue (Rs.)
|
|
1
|
-
|
-
|
8
|
|
2
|
12
|
4
|
-
|
|
3
|
-
|
-
|
4
|
|
4
|
8
|
-
|
2
|
8
Explain the Distinguish between AC and MCwith a schedule and a diagram.
OR
Distinguish
between total fixed cost and total variable cost with the help of a diagram.
9 A consumer consumes only two
goods x and y and is in equilibrium. Price of good x falls. Show how it will lead to rise
in demand for good x
10 Explain the problem of ‘what to produce’ with the help
of an example
OR
Explain
‘For whom to produce’ with the help of an example.
11 Distinguish Change in Supply and Change in Quantity
Supplied’.
12 State
and explain the condition of consumer’s equilibrium with the
indifference curve analysis.
OR
“Two
indifference curve can never intersect each other” Explain with diagram.
13 Giving
reasons identify the equilibrium level of output and find profit at this output
using marginal cost and marginal revenue approach from the following.
|
Output
( units
|
1
|
2
|
3
|
4
|
5
|
|
Total
revenue (Rs.)
|
8
|
15
|
21
|
26
|
30
|
|
Total
cost (Rs.)
|
8
|
13
|
19
|
27
|
36
|
14 Explain the implications of
the following features of a perfectly competitive market.
a) Large numbers of buyers and sellers
b)
Homogeneous product
15 What will be the effect on
equilibrium quantity and equilibrium price of increase in price of factors of production?
OR
How a
simultaneous increase in both demand and supply does may affect the equilibrium
price and quantity. Explain with the help of diagram.
Section-
B
16. Which
of the following in not a revenue receipt? (Choose the correct alternative.)
a) Recovery of loans
b) Foreign grants
c) Profits of public enterprises.
d) Wealth tax
17. Define
cash reserve ratio.
18. Who
regulates money supplyin India? (Choose the correct alternative.)
a) Government of India
b) Reserve Bank of India
c) Commercial Banks
d) Planning commission
19. Which
of the following is a stock? (Choose the correct alternative.)
a) Wealth
b) Saving
c) Export
d) Profit
20. Which
of the following is a correct measure of primary deficit.
a) Fiscal deficit minus revenue deficit
b) Revenue deficit minus interest
payments.
c) Capital expenditure minus revenue
expenditure.
d) Capital expenditure minus revenue expenditure.
21. Describe
the three sources of demand for foreign exchange।
OR
Give
the meanings of ‘devaluation and depreciation’ of domestic currencyandwrite
itseffectonexport.
22. In an economy autonomous consumption is
500, marginal propensity to save is 0.2 and investment expenditure is 2000.
Calculate its equilibrium level of income.
23. Which
of the following cannot have a negative value? Give reasons.
I) Average propensity to save
II) Marginal propensity to save
24. Distinguish
between trade account and current account of balance of payment account.
25. Define
intermediate goods and final goods. Can milk be an intermediate good? Give
reasons for your answer.
OR
What
four precautions should be taken while estimating nation income by production
methods?
26. Calculate
Sales from the following.
I) Subsidies 200
II) Change in stock 600
II) Net Value Added at factor cost 2000
IV) Intermediate consumption 3000
V) Consumption of Fixed Capital 700
VI) Profit 750
27. In an
economy planned spending is greater than planned output. Explain all the
changes that will take place in the economy.
28
.From the following data (i) Gross national product at market price and (ii)
Net national disposable income :
I)
Dividends 300
II)
Compensation of employees 3000
III)
Rent 500
IV) Depreciation 200
IV)
Interest 800
V)
Net factor income to abroad 100
VII) Mixed income 5000
VIII) Net indirect taxes 400
IX) Profit 1500
X) Net current transfer to abroad (-)50
29. The government
decides to give budgetary incentives to investors for making investments in
backward regions. Explain these possible incentives and the reasons for the
same.
OR
Government
has started spending more on free services like education and health to the
poor. Explain the economic value it reflects.
30. Explain
any two function of money
OR
Explain
any two main function of Central bank.
KENDRIYA
VIDYALAYA SANGATHAN BHOPAL REGION
Sample Paper No. 4 - 2016-17
CLASS - XII
SUBJECT – ECONOMICS
Time:3 Hrs. MM:
100
Instructions:
As given in paper 1
Section A:
Microeconomics
1.
If it is given that the total
variable cost for producing 15 units of output is 3000 and for 16Units is
3,500. Find the value of Marginal Cost. (1)
2.
Ceteris Paribus, if the government
provides subsidies on electricity bills, what would be theLikely change in the
market demand of desert coolers? (1)
3. Which of the can be referred to as
‘point of satiety’? (1)
i) Marginal Utility is negative iii)
Total Utility is rising
ii) Marginal utility is zero iv)
Total Utility is falling
4.
Which of the following is an
assumption of Production Possibility Frontier? (1)
5.
State any two central problems
under ‘problem of allocation of resources’. (1)
6.
‘Supply curve is the rising
portion of marginal cost curve over and above the minimum ofAverage Variable
cost curve’. Do you agree? Support your answer with valid reason. (3)
7.
Explain ‘black marketing’ as a
direct consequence of price ceiling. (3)
OR
Explain the concept of ‘buffer stock’ as a
tool of price floor.
8. Explain any two sources of restricted
entry under monopoly. (3)
9.
Comment upon the degree of
elasticity of demand for Good X, in the following given situations, if the
price of the commodity rises from 5 per unit to 7 per unit and the quantity
demanded falls from 20 units to 16 units :
i) Using
the total household expenditure method,
ii) Using
proportionate method. (4)
10.
‘Higher indifference curve
represents higher level of satisfaction to the consumer’. Explainthe statement,
also state the underlying assumption related to this property of
indifferencecurve. (4)
OR
A consumer
consumes two goods X and Y. Explain what will happen if MUx/Px is greaterthan
MUy/Py?
11.
Define Marginal Opportunity Cost.
Explain the concept with a hypothetical numericalexample. (4)
12.
a) What is meant by price rigidity,
under oligopoly. (2)
b) Elaborate the implication of the
conditions of equilibrium of a firm. (4)
13.
a) Distinguish between stock and
supply.
b) Giving reason identify the
equilibrium level of output using MR=MC approach.
Output 1 2 3 4 5 6 7 8
AR 15 15 15 15 15 15 15 15
TC 17 32 45 56 65 78 93 113
14.
Suppose the demand and supply curves
of a Commodity-X is given by the following twoequations simultaneously:
Qd = 200 – p Qs = 50 + 2p
i) Find the
equilibrium price and equilibrium quantity.
ii) Suppose that
the price of a factor of production producing the commodity has changed,
resulting in the new supply curve given by the equation Qs’ = 80 +2p.Analyze
the new equilibrium price and new equilibrium quantity as against the original
equilibrium price and equilibrium quantity. (3+3)
15.
Show diagrammatically the conditions
for consumer’s equilibrium, in Hicksian analysisof demand. (6)
Section B: Macroeconomics
16.
If an economy is to control
recession like most of the Euro-Zone nations, which of thefollowing can be
appropriate: (1)
i) Reducing Repo Rate iii) Both (i) and (ii)
ii) Reducing
iv) None of (i) and (ii)
17.
Which of the following agency is
responsible for issuing 1 currency note in India? (1)
i) Reserve Bank of India. iii)
Ministry of finance
ii) Ministry of Commerce iv)
NitiAayog
18.
Flow of Goods & services and
factors of production across different sectors in a bartereconomy is known as:
(1)
i) Circular flow
iii) Monetary Flow
ii) Real floiv) Capital Flow
19.
The government budget of a
hypothetical economy presents the following information,which of the following
value represents Budgetary Deficit. (all fig. in crores) (1)
A. Revenue
Expenditure = 25,000
B. Capital
Receipts = 30,000
C. Capital
Expenditure = 35,000
D. Revenue
Receipts = 20,000
E. Interest
Payments = 10,000
F. Borrowings =
20,000
i) 12,000
iii) 20,000
ii) 10,000
iv) None of the above.
20.
Which of the following statement is
true? (1)
i) Loans from IMF is a Revenue Receipt.
ii) Higher revenue deficit necessarily leads
to higher fiscal deficit.
iii) Borrowing by a government represents a
situation of fiscal deficit.
iv) Revenue deficit is the excess of capital
receipts over the revenue receipts.
21.
‘Devaluation and Depreciation of
currency are one and the same thing’. Do you agree?How do they affect the
exports of a country? (3)
22.
If in an economy saving function is
given by S = (-) 50 + 0.2 Y and Y = 2000 crores;Consumption expenditure for the
economy would be 1,650 crores and the autonomousInvestment is 50 crores and the
marginal propensity to consume is 0.8. True or False?Justify your answer with
proper calculations.
OR
“Economists are
generally concerned about the rising Marginal Propensity to Save (MPS)in an
economy”. Explain why? (3)
23.
Explain how the economy achieves
equilibrium level of income using Savings-Investment (S-I) approach. (3)
24.
Suppose in an imaginary economy GDP
at Market Price in a particular fiscal year was 4,000 crores, National Income
was 2,500 crores, Net Factor Income paid by the economy to Rest of the World
was 400 crores and the value of Net Indirect Taxes is 450 Crores. Estimate the
value of consumption of fixed capital for the economy from the given data. (4)
25.
How is the foreign Exchange Rate is
Determined. (4)
26.
State the various components of the
Expenditure Method that are used to calculatenational income. (4)
OR
Discuss any two differences between GDP at
constant prices and GDP at current Prices.
27.
Calculate the following - Fiscal Deficit Revenue Deficit Primary Deficit
Capital Expenditure (Planned and Non
Planned) 500
Tax Revenue 100
Non tax Revenue 105
Revenue Expenditure 250
Capital Receipt 400
Borrowing 50
Interest Payment 75
28.
Derive a straight line saving curve
using the following consumption function: (6)
C = 20 + 0.6Y.
Presuming the income levels to be 100, 200 and 300 crores. Also calculate
thatlevel of income where consumption is equal to income.
OR
C = 20 + 0.6Y.
Presuming the income levels to be 100, 200 and 300 crores. Also calculate that
level of income where consumption is equal to income.
29.
a) What is meant by Repo Rate? How
does the Central Bank use this measure tocontrol inflationary conditions in an
economy?
b) What is meant
by Margin Requirement? How does the Central Bank use thismeasure to control
deflationary conditions in an economy? (3+3)
30.
Compute (a) Domestic Income and (b) Net National Disposable Income. (6)
S.No.
Items Amount
(in Crores)
i)
Net Exports
155
ii)
Government final consumption
expenditure 2500
iii)
Subsidies
120
iv)
Gross domestic fixed capital
formation 1190
v)
Net factor income to abroad 125
vi)
Net decrease in inventories 100
vii)
Net Exports
(-) 420
viii)
Net Indirect Taxes
470
ix)
Net Current transfers from
abroad 350
x) Current replacement cost 145
xi)
Private final consumption
expenditure 2200
OR
Explain any four limitations of using
GDP as a measure/index of welfare of a country.
