Economics Sample Paper 1

Sample Paper-01 (2016-17)
Economics
Class – XII
Time allowed: 3 hours Maximum Marks: 100
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. They are
required to be answered in one sentence.
(iv) 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.
(v) 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.
(vi) 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.
(vii) Answers should be brief and to the point and the above word limit be adhered to as far as
possible.
Section A
1. A growth of resources in an economy is shown on PP by:
(a) leftward shift
(b) unchanged PPC
(c) Rightward shift
(d) None of the above
2. Give meaning of consumer’s equilibrium.
3. Which of the following is not a feature of monopoly?
(a) single
(b) No freedom of entry
(c) close substitute
(d) none of the above
4. A point below PPC indicates:
(a) underutilization of resources
(b) over utilization of resources
(c) Inefficient use of resources
(d) Both A and C.
5. Define price elasticity of demand.
6. What factors lead to a rightward shift of PPC?
7. Total Fixed costs of a firm are Rs 100. Its average variable cost at different levels of output is
given. Calculate total cost and marginal cost.
Output (unit) 1 2 3 4
TC (Rs.) 60 56 60 64
8. When is the supply of a commodity said to be (i) elastic (ii) inelastic (iii) unitary elastic?
9. Mention the assumptions of Indifference curve analysis.
10. Draw Total Fixed Cost and Average Fixed Cost curves. Explain their shape.
11. As a result of high wage settlement in New York City due to taxi strike of several years ago,
taxi owners increased taxi fares. Was this the right decision?
12. Under perfect competition, MR=AR, but under monopoly, MR<AR. Explain.
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13. What will happen if the price prevailing in the market is:
(i) below the equilibrium price?
(ii) above the equilibrium price?
14. At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to
30. The price elasticity of firm’s supply is 1.25. what quantity will the firm supply at the new
price?
15. Explain with the help of diagrams the effect of the following changes on the demand of a
commodity:
(i) An unfavourable change in the taste of the buyer for a commodity.
(ii) A fall in the income of its buyer if the commodity is inferior.
Section B
16. When MPS = 0.25, MPC is:
(a) 0.80
(b) 4
(c) 0.75
(d) None of the above.
17. Which of the following is not a factor payment?
(a) Rent
(b) Interest
(c) Borrowings
(d) Profits
18. Which of the following is not a currency:
(a) Dollar
(b) Yen
(c) Renminbi
(d) chen
19. It is a ratio of change in consumption expenditure to change in total income.
(a) Marginal Propensity to Consume
(b) Average Propensity to Consume
(c) Average Propensity to Save
(d) Consumption Function
20. Why borrowings by the government are capital receipts?
21. Explain the components of the equation: C = Co + bY
22. How is tax revenue different from administrative revenue?
23. From the following, calculate gross value added at factor cost by it:
(Rs. in lakhs)
sales 500
Purchase of intermediate products 350
Profit 70
Subsidies 40
Consumption of fixed capital 60
Change in stock 30
24. What is meant by open market operations? Briefly describe their effects on credit creation by
commercial banks.

25. Distinguish between Revenue receipts and capital receipts in a government budget. Give two
examples of each.
26. Explain main functions of the commercial bank.
27. How are following treated in the estimation of national income?
(a) Transfer payments
(b) Services of owner occupied houses.
(c) Commission received from sale of second hand goods.
(d) Non –marketable goods.
28. Explain the three categories in which BOP transactions are classified.
29. How is exchange rate determined in the foreign exchange market? Explain.
30. From the table given below:
Income Consumption Savings Investment AD= C+ I AS= Y
100 120 -20 40 160 100
200 200 0 40 240 200
300 280 20 40 320 300
400 360 40 40 400 400
500 440 60 40 480 500
600 520 80 40 560 600
Answer the following questions:

(a) Identify the break-even point
(b) Locate the equilibrium level of income.
(c) Calculate MPS when income changes from Rs. 400 to Rs. 500.
(d) Calculate APC at income level of Rs. 100 crores.
(e) Calculate APS at income level of Rs. 500 crores.


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Sample Paper-01 (2016-17)

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

Material downloaded from http://myCBSEguide.com and http://onlineteachers.co.in

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