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KENDRIYA VIDYALAYA SANGATHAN, ERNAKULAM REGION
SAMPLE QUESTION PAPER 2012-13
SUB: ECONOMICS
CLASS: XII
MAX. MARKS: 100
TIME: 03 hours
General Instructions:1. All questions in both the sections are compulsory,
2. Marks for questions are indicated against each,
3. Questions No. 1 -5 and 17 -21 are very short answer questions carrying 1 mark each .They are
required to be answered in one sentence each
4. Question No. 6 – 10 and 22 -26 are short answer questions carrying 3 marks each. Answer to
them should not normally exceed 60 words each.
5. Question No. 11 – 13 and 27 -29 are short answer questions carrying 4 marks each. Answer to
them should not normally exceed 70 words each.
6. Question No. 14 – 16 and 30 -32 are long answer questions carrying 6 marks each. Answer to
them should not normally exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far
as possible.
8. Attempt each question at one place alone.
SECTION: A
1. What is Marginal Rate of Substitution?
2. Why the need for economizing the use of resources does arise?
3. Give any two reasons for a rightward shift in supply curve.
4. What do you mean by product differentiation?
5. Define Marginal revenue.
6. Explain the central problem of “How to produce?” Use diagram for explanation.
7. Explain the law of demand. Use table for explanation.
8. State whether the following statements are true or false, give reasons for your answer
a.) Average Cost falls only when Marginal Cost falls.
b.) The difference between Average Cost and Average Variable Cost falls as the quantity of
output rises.
1
1
1
1
1
3
3
3
9. Why a producer under a perfect competitive market is a ‘Price Taker’? State the reasons. 3
OR
Define Oligopoly market and explain any two features.
10. Complete the following table:
3
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Price(Rs.)
Output(Units) Total Revenue(Rs.)
Marginal Revenue(Rs.)
7
-7
--2
10
--3
-(-) 1
1
--( -)5
11. A new Cotton Textile Industry comes up in a particular locality. Many people who were
unemployed in the area are now employed. How will this affect the demand for mobile
phones in that region?
12. On the basis of the following information, find out the level of output at which the
producer will be in equilibrium. Give reasons for your answer. Use MC and MR approach.
Output(Units) 1
2
3
4
5
6
7
Price
24
24
24
24
24
24
24
Total Cost (Rs.) 26
50
72
92
115
139
165
13. When price of a good falls from Rs. 8 per unit to Rs. 7 per unit, its quantity demand rises
from 12 units to 16 units. Compare the total expenditure on the good to determine
whether the good is elastic or inelastic.
OR
A consumer buys 80 units of a good at a price of Rs. 5 per units. Suppose price elasticity
of demand is (-) 2, at what price will he buy 64 units.
14. Define consumer’s equilibrium. Explain the situation of consumer’s equilibrium by using
the indifference curve and budget line analysis. Use diagram.
15. What will happen to the equilibrium price and equilibrium quantity when:
a) The producer adopts modern technology in the production process.
b) The income of the consumer decreases in respect to normal good.
OR
What do you mean by market equilibrium? Explain with the help of a schedule and
diagram.
16. With the help of the following schedule, identify the three phases of the law of variable
proportion and also give reasons for each phase.
Units of variable input
Total physical product
1
10
2
22
3
30
4
35
4
4
4
6
6
6
5
30
SECTION: B
17. Define money.
18. What is autonomous consumption?
19. What is the value of investment multiplier when MPC is 0.25?
1
1
1
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20. Suppose the exchange rate of US dollar against the Indian rupee rises from Rs.48 to Rs.51,
How is it influence India’s export?
1
21. What do you meant by Bank Rate?
1
22. What do you mean by Balance of Payment? Write any two components of Balance Of
Payment.
3
23. State whether the following are included in National Income or not, give reasons
a) Scholarship given to an Indian student studying in India by a foreign company.
3
b) Profits earned by an Indian bank from its branch abroad.
24. Distinguish between fixed and flexible foreign exchange rate.
OR
Mention any three sources of demand for foreign exchange.
3
25. Differentiate between real flow and money flow.
3
26. Calculate Net National Disposable Income and Gross National Disposable Income from the
following information.
3
Items
Rs. In crore
i)
Net factor income from abroad
(-) 10
ii)
Indirect taxes
90
iii)
Net domestic product at factor cost
1010
iv)
Consumption of fixed capital
100
v)
Net current transfers from abroad
150
vi)
Subsidy
10
vii)
Corporate saving
20
27. What is fiscal deficit? Write any three implications of fiscal deficit.
4
OR
Distinguish between;
a) Capital Receipt and Revenue receipt.
b) Direct tax and Indirect tax.
28. What do you mean by Aggregate Demand? Explain any three components of Aggregate
Demand.
4
29. Explain the ‘redistribution of income’ and ‘economic stability’ objectives of Govt. budget. 4
30. Explain the determination of income and employment by using saving and investment
curves. Will there always be full employment at equilibrium level?
6
OR
What do you mean by deflationary gap? Explain any three fiscal measures to correct it.
31. How do commercial banks create credit? Explain with a numerical example.
6
32. From the following data, calculate (i) GDP (FC) and (ii) Factor income to Abroad.
3 +3
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i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Items
Profits
Compensation of employees
Dividends
Rent
GNP(MP)
Gross domestic capital formation
Net domestic capital formation
Factor income from abroad
Net indirect taxes
Interest
Xxxxxxxxxxxxxxxxxxxxxxxxxx
Rupees in crores
200
800
50
150
1,400
300
250
60
120
100
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MARKING SCHEME
for
SAMPLE QUESTION PAPER 2012-13
SUB: ECONOMICS CLASS: XII
1.
2.
3.
4.
5.
6.
Rate at which a consumer is willing to substitute one good for another good.
1
Scarcity or resources
1
Adoption of modern technology, Fall in input prices, Reduction in tax rate (Any TWO) 1
Differentiation of same product on the basis of colour, packing etc
1
Additional revenue obtained by selling one more unit of the product.
1
How to produce meaning with explanation
Diagram with explanation
(2+1=3)
7. Law of demand meaning with proper explanation , with diagram
(2+1=3)
8. a) False, AC falls even when MC rises
b) True, AC is influenced by both AFC and AVC. Statement with proper reason (1 1/2+1 ½=3)
9. Because of large no of buyers, Homogeneous product, Freedom of entry and exit
( Any three reasons)
3
OR
Oligopoly meaning, Any two features with explanation
(1+2=3)
10.
3
Price(Rs.)
Output(Units) Total Revenue(Rs.) Marginal Revenue(Rs.)
7
(1)
7
-(5)
2
10
(3)
(3)
3
(9)
(-) 1
1
(4)
(4)
( -)5
11. New employment increases consumer’s income, leads to increase in demand for
mobile phones, factor other than the price of the commodity, more demand at
the same price.
Any four points
4
12.
Output(Units) 1
2
3
4
5
6
7
Price (MR)
24
24
24
24
24
24
24
Total Cost (Rs.) 26
50
72
92
115
139 165
MC
-24
22
20
23
24
26
th
Produce will reach equilibrium at the 6 unit of output, because
i) MC= MR, ii) MC rises at the 7th unit of output.
(2+2=4)
13. Preparation of Total expenditure Table, Elastic Demand (Negative relation between
TE and Price)
(2+2=4)
OR
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Ed= p/q x q/ p , Calculation , Right answer( new price= 5.5) ( 1+2 ½ + ½ =4)
14. Meaning of consumer’s equilibrium, Properties of IC , conditions of con. Equilibrium,
Slope of IC equals to the slope of budget line(MRSXY= PX/PY ), Proper diagram (1+2+1+2=6)
15. a)Leads to rightward shift in supply curve, increase in supply, Eq. qty. rises and Eq. Price
falls
(1+1+1=3)
b) Decrease in demand, Leftward shift in demand, Both Eq. Qty. and EQ. price
rises
(1+1+1=3)
OR
Market equilibrium meaning, preparation of schedule and diagram with proper
explanation
(2+2+2=6)
16.
Units of variable input
1
2
3
4
5
Total physical product
10
22
30
35
30
Marginal physical product
10
12
8
5
-5
Three phases: Increasing, Diminishing and Negative returns
State any two reasons for each phases
(1+2+1+1+1=6)
SECTION : B
17. Anything which is commonly accepted as medium of exchange, measure of value, store of
value.
1
18. Consumption at the zero level of income
1
19. K = 1/1-mpc, K=4
(1/2+1/2=1)
20. India’s export rises.
1
21. Bank Rate- rate at which Central Bank lends money to the commercial banks
1
22. BOP meaning. Any two components
(1+2=3)
23. a) No, It is transfer payment
b) Yes, Part of Net Factor Payment from abroad.
(1 ½ +1 ½ =3)
24. Any three differences between fixed and flexible exchange rate
OR
Any three sources of demand for foreign exchange.
(1x3=3)
25. Any three differences between real flow and money flow.
(1x3=3)
26. NNDY= i+(ii-vii)+iii+v = Rs.1230 Crs
GNDY= NNDY+iv = RS.1330 Crs.
(1 ½ +1 ½ =3)
27. Meaning of Fiscal Deficit, and any three implications
(1+3=4)
OR
a) Any two differences between Capital and Revenue receipts
2
b) Any two differences between Direct and indirect taxes
2
28. Aggregate Demand meaning, any three components with explanations
(1+3=4)
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29. Redistribution of income.. Explanation, Economic stability. Explanation
(2+2=4)
30. Full employment equilibrium
AD=AS
C+I = C+S
I=S
Proper diagram with explanation.
There is a chance for involuntary unemployment
(2+3+1=6)
OR
Deflationary gap- meaning, AD> AS corresponding to full employment, any
three fiscal measures with explanations.
(3+3=6)
31. Creation of credit by commercial banks= 1/LRR X Initial deposit
Explanation with the help of an assumed value.
(3+3=6)
32. I)GDP(FC)= I,300 Crs. Ii) Factor income to abroad=80Crs.
(3+3=6)
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BLUE PRINT
For
SAMPLE QUESTION PAPER 2012-13
SUB: ECONOMICS CLASS: XII MAX. MARKS: 100
UNIT
I
II
III
IV
V
VI
VII
VIII
IX
X
Sub Total
Very Short
Answer(I mark)
1(1)
1(1)
1(2)
1(1)
-1(2)
1(2)
1(1)
10(10)
Short Answer
(3 and 4 marks)
3(1)
3(1), 4(2)
3(2), 4(1)
3(1)
-3(3)
4(1)
4(2)
3(2)
30(10),24(6)
Long Answer
(6 marks)
6(1)
6(1)
6(1)
-6(1)
6(1)
6(1)
36(6)
Total
4(2)
18(5)
18(6)
10(3)
-15(4)
8(3)
12(4)
8(2)
7(3)
100(32)
Note: Figures within brackets indicate the no of questions and figures outside
the brackets indicates marks for each question.
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