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ISC Class 12 Economics Question Paper 2019

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32 views6 pages

ISC Class 12 Economics Question Paper 2019

Uploaded by

Ashish Kumauni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ISC 2019

Grade 12
Economics

Time allowed: 3 hours Maximum Marks: 80

(Candidates are allowed additional 15 minutes for only reading the


paper. They must NOT start writing during this time.)

General Instructions:

Answer Question 1 from Part I and any five questions from Part II.
The intended marks for questions or parts of questions are given in
brackets [ ].

PART I (20 Marks)


Answer all questions.

Question 1. [10 x 2]
Answer briefly each of the questions (i) to (x).
(i) What is meant by product differentiation in monopolistic
competition?
(ii) Explain an indifference map, with the help of a diagram.
(iii) Give two examples of each of the following:
(a) Revenue receipts of the government.
(b) Revenue expenditure of the government.
(iv) With the help of a diagram, state the behaviour of MP when:
(a) TP of the variable factor reaches maximum.
(b) TP of the variable factor falls.
(v) What is meant by High Powered Money?
(vi) Distinguish between depreciation and devaluation.
(vii) Explain any two precautions to be taken while calculating
national income by income method.
(viii) Differentiate between accounting cost and opportunity cost.
(ix) With the help of diagrams, show when the elasticity of supply
is:
(a) greater than one.
(b) equal to one.
(x) What is meant by investment multiplier?

PART II (60 Marks)


Answer any five questions.

Question 2
(a) How does an increase in income affect the demand for the
following: [3]
(i) A normal good
(ii) An inferior good
(b) Discuss any three reasons for the leftward shift of a supply curve.
[3]
(c) Explain how a consumer attains equilibrium using indifference
curve analysis. [6]

Question 3
(a) Discuss two differences between returns to scale and returns to a
variable factor. [3]
(b) With the help of a diagram, explain the relationship between AR
and MR of a firm under imperfect competition. [3]
(c) Discuss any four features of monopoly market. [6]

Question 4
(a) Explain the various degrees of price elasticity of demand at
different points on a straight line demand curve. [3]
(b) Show with the help of a diagram, how a perfectly competitive
firm earns normal profit in short run equilibrium. [3]
(c) Explain with the help of diagrams how equilibrium price changes
when there is simultaneous increase of both, demand and supply. [6]

Question 5
(a) Discuss any two exceptions to the law of demand. [3]
(b) Study the cost function of a firm given below: [3]
Calculate:
(i) AFC
(ii) AC
(iii) MC
(c) A producer is in equilibrium when MR = MC. Explain this
statement with the help of a diagram. [6]

Question 6
(a) Explain how public expenditure can be used as an instrument of
fiscal policy to solve the problem of: [3]
(i) Income inequality
(ii) Inflation
(b) Differentiate between the revenue and capital components of the
union budget. [3]
(c) Discuss briefly the various components of balance of payment.
[6]

Question 7
(a) Discuss any two limitations of credit creation by commercial
banks. [3]
(b) Explain two secondary functions of money. [3]
(c) Discuss any two qualitative methods and any two quantitative
methods of credit control used by the Central Bank. [6]

Question 8
(a) What is meant by average propensity to consume? Explain its
relationship with average propensity to save. [3]
(b) Discuss any two fiscal measures to correct a situation of deficient
demand in an economy. [3]
(c) Explain how equilibrium level of income can be determined with
the help of saving and investment approach. [6]

Question 9
(a) Draw a well-labelled diagram to show a circular flow of income
in a two sector model. What happens to the flow of income when
savings equals investment? [3]
(b) What is meant by economic welfare? Explain how GDP is an
indicator of economic welfare. [3]
(c) From the following data, calculate National Income by Output
method and Income method: [6]
Item Rs. in crores
(i) Value of output 2500
(ii) Value of intermediate consumption 1300
(iii) Subsidies 40
(iv) Rent 110
(v) Employer’s contribution to social security 30
(vi) Profit 50
(vii) Wages and salaries 340
(viii) Interest 10
(ix) Mixed income of self-employed 360
(x) Indirect tax 180
(xi) NFIA (-)30
(xii) Consumption of fixed capital 160

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