Question Paper For Class 12 Economics

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KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

CLASS-XII COMMON PRE BOARD EXAMINATION
Subject: ECONOMICS
Time Allotted: 3 hours
Maximum Marks: 100
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 one mark each.
They are required to be answered in one sentence each.
4. Questions No.6-10 and 22-26 are short answer questions carrying three marks each.
Answers to them should normally not exceed 60 words each.
5. Questions No.11-13 and 27-29 are also short answer questions carrying 4 marks each.
Answer to them should normally not exceed 70 words each.
6. Questions No.14-16 and 30-32 are long answer questions carrying 6 marks each.
Answer to them should normally not exceed 100 words each.
7. Question Nos.11 and 19 are value based questions.
8. Answers should be brief and to the point and the above word limits should be adhered
to as far as possible.
saamaanya inad-oSa :
1. daonaaoM vagaao-M ko saBaI p`Sna Ainavaaya- hOM.
2. p`%yaok p`Sna ko inaQaa-irt AMk ]sako saamanao ide gae hOM.
3. p`Sna saM#yaa 1-5 AaOr 17-21 Ait laGau~a%mak p`Sna hOM.

ijanamao p`%yaok ka 1 AMk hO. [naka ]%tr kovala ek vaa@ya
maoM haonaa caaihe.
4. p`Sna saMM#yaa 6-10 AaOr 22 - 26 laGau~a%mak p`Sna hOM.
ijanamao p`%yaok ko 3 AMk hO. [naka ]%tr saamaanyat: 60 Sabdao
sao AiQak nahI haonaa caaihe.
5. p`Sna saM#yaa 11 - 13 AaOr 27 - 29 BaI laGau~a%mak p`Sna
hOM. ijanamao p`%yaok ko 4 AMk hO. [naka ]%tr saamaanyat: 70
Sabdao sao AiQak nahI haonaa caaihe.
6. p`Sna saM#yaa 14 - 16 AaOr 30 - 32 vyaa#yaa%mak ]%tr vaalao
p`Sna hOM. ijanamao p`%yaok ko 6 AMk hO.
7. p`Sna saM#yaa 11 AaOr 19 maUlya AaQaairt p`Sna hOM.
8. javaaba ko saMixaPt AaOr tqyaa%mak haonaa caaihe AaOr }pr
idyao Sabd saImaa ko AMtga-t hI haonaa caaihe.
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SECTION - A
1.
Define revenue.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
What is demand schedule?

qa Alxc M Yr Aj W?
Define budget set.
oeO saoT M mUpw SeL? .
Give meaning for marginal cost.
xqi sai M Yr Aj W?
What is meant by Oligopoly.
AsmkMU M Yr Aj W?
Explain the properties of Indifference curve.
iOxj u M sh M urZr MeL |
Explain Law of Supply.
miM lrq M mUpw SeL |
The price elasticity of demand of a good is (-1). At a given price the consumer
buys 60 units of the good. How many units the consumer will buy if price falls
by 10%.
LM uxi M qa M Mqi sc (-1 ) W|
Emp Cx uxi M 60 CMCr ZUSi W|
uxi M Mqi 10% aU el x Emp
Mil q ZUSa?
Distinguish between explicit cost and implicit cost Give examples for each.
xm u Axm sai q pS MU LM ESWUh
SeL |
Explain the implication of product differentiation as a feature of monopolistic

competition.
OR
Explain the implication of homogenous product as a feature of perfect
competition
LMkMUM mirai M Aiai EimS

upS uzwi M mpu xqfCL |
Aju
mh mirai M Aiai oQ xZr q
ui uzwi M mpu xqfCL |
In case of a product like diesel which is sold by government at a subsidesed
1
1
1
3
3
3
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price how can the government lower the losses without lowering the subsidies.
DIsala ek vastu hOM jaha sarkar Aaiqa-k sahayata

dotI hO [sasao sarkar laagat baZtI hO.eosaa ]paya
bata[e ijasasao sarkar kI laagat mao kmaI hao AaOr
Aaiqa-k sahayata BaI na GaTo.
12.
Explain the central problem of an economy i) on distribution of income

ii)Technique of production
Ar M uiUh AU EimSl M iMlM mU
Ajuruxj M MlSr xqxr M urZr MeL |
13.
State four factor that affects elasticity of demand and explain any one.
OR
Distinguish between change in demand and change in quantity demand
qa M sc M mpui MUl us cU
MUM oiCL AU LM M uhl MeL|
Aju)
qa q mUuil AU qa aD q q
mUuil q pS MeL|
Explain the relationship between TPP and MPP with the help of a schedule by
keeping one input as constant.
LM Aai xjU UZMU, Ms piM EimS AU
xqli piM EimS q xqolk
Alxc M xWri x xqfCL |
What is equilibrium price? If there is simultaneous decrease in demand and
supply what will happen to equilibrium price ?
OR
There is simultaneous increase in demand and supply of a commodity. The
equilibrium price may or may not change, explain with the help of a diagram
xisl Mqi Yr W?rS qa AU mi
q Mq LM xj Wi W i xlisl Mqi
mU Yr mpu mQa?
(Aju)
LM uxi M qa AU mi q LM xj u
Wi W,xlisl Mqi q mUuil
Wa r MD mUuil lW W, UZc M
xWri x xqfCL|
What are the conditions of consumer equilibrium? The price of Ice cream is
Rs. 30 . Meena has eaten 3 ice creams The MU for her is 90 MU of one rupee
is 3 Should she eat more or stop. Explain it.
Emp M xlisl M zi xqfCL | LM
ACxq M Mqi 30 W,.ql l il
ACxq ZD j| xqli Emrai 90 r Oq
W LM mr M xqli Emrai 3 W|Yr
Ex AU Zl cWL r lW? xqfCL |
14.
15.
16.
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17.
Section B
Mention one item that is a part of capital receipts in the Govt. budget
18.
19.
What is SLR ?
LxLsAU Yr W?
The country needs huge amount of imports for developmental
Programmes.Name one step which the central bank can make imports cheper
using the foreign exchange market.
1
1
ivakasaaqamak yaaojanaaAaoM ko ilae ek doSa kao

Aayaat ko ilae pUjaI kI ja$rt hO ivadoSaI
ivanayama baajaar inayaM~Na Wara kma dama
maoM Aayaat krnao ka ek ]paya bata[e.
20.
21.
22.
23.
24.
25.
What is meant by BOT?

urmU zw Yr W?
What is Parity value?
xqi ql M Yr Aj W?
Can the economy be in equilibrium if there is unemployment of resources in
the economy. Explain.
Yr Ajuruxj M xisl xji q Asm
UeaU M xji W xMi W ?urZr MeL|
Rs. 200 crore increase in investment leads to a rise in national income by Rs
1000 crore .Find out Marginal propensity to consume.
rS luz q u .200 MUQ WAU Ur
Ar q u .1000 MUQ W. xqi mu
Empa M qsr lMsL|
How does money solve the problem of double coincidence of wants

qS SWU xra M MPlCr Mx SU
MUi W?
Distinguish beween capital expenditure and revenue expenditure in govt
1
3
budget.
xUMU oeO q me urr AU Uexu urr
M AiU xm MeL |
OR Aju
How does budgetary policy help to reduce unemployment and price instability
oeO li oUeaU Mq MUl ij Mqi
xjUi q Mx xWrM W ?
26.
Calculate National income for the following data
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i) Consumption of fixed capital
2217
ii) Net indirect tax
3527
iii)Imports
1806
iv)Exports
1771
v)Change in stocks
1039
vi)Gross fixed capital formation
6305
vii) Government final consumption expenditure
29163
viii)Private final consumption expenditure
3801
ix) Net factor income from abroad
(-)284
lqlsZi AMQ x Ur Ar i MeL1Acs me M Empa
2217
2 z Amir MU
3527
3 Ari
1806
4 lri
1771
5xOM q mUuil
1039
6xMs xjU me lqh
6305
7xUMU Aiq Empa urr

8le Aiq Empa urr
9uSz x Aei z xkl Ar
27.
29163
3801
(-)284
What is revenue deficit? What are the implications of revenue deficit. Suggest 4
two measures to reduce it.
Uexu bO Yr W ?CxM Yr mpu
mQi W ?Cx Mq MUl M sL xfu SeL |
28.
Explain the functions of central bank as banker to the government.
OR
Explain the Bank rate as a method of credit control used by RBI
MlSr oM q xUMU M oMU M Mr
xm MeL |
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Aju
Ueu oM q xZ lrh q oM SU
M pqM xm MeL |
29.
Explain the components of capital account in BOP
pail zw q me Zi M bOM xm
MeL |
30.
Will the following be a part of domestic factor income of India? Give reason
in support of your answer.

a)Profit earned by foreign banks from their branches in India.
b)Salary by Indian residents working in American Embassy in India.
c) Profits earned by Indian company from its branches in Singapore
lqlsZi qS pUi M bUs xkl Ar q
zqs W r lW?Aml EU MsL MUh SeL
|
(A) pUi q uSz oM M zZA U
Aei sp
(o) pUi q AqUMl UeSi q MrUi
pUir luxr M ilZuW
(x) pUir Mqml M xamU zZA U
Aei sp
31.
Given below is the consumption function in an economy:
C=100+0.5Y
With the help of a numerical example show that in this economy as
income increases APC will decrease.
OR
The saving function of an economy is S=-200+0.25Y. The economy is in
equilibrium when income is equal to 2000 Calculate.
a. Investment expenditure at equilibrium level of income.
b.. Autonomous consumption
c. Investment multiplier.
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lc Ajuruxj q Empa Tsl Sr ar W:

C=100+0.5Y
Cxx rW x MeL M Ar oRl x Axi
Empa mu bO ei W |
Aju
Ajuruxj M oci Tsl rW W :S=-200+0.25Y.
eo Ar 2000 W,
i Ajuruxj xisl q W i MeLA Arluz urr q xisl xiU M Ar

o xur Empa
x luz ahM
32.
Calculate Gross National Product at MP and Personal dis posable income from 6
the following data.
i) Subsidy
Rs in crores
40
ii)NFIA
-120
iii)Depreciation
100
iv)Personal Tax
220
v)Saving of private corporations
80
vi)Dividend
40
vii) Indirect Tax
200
viii)Corporation tax
180
ix)Net national disposal income
2000
x) National debt interest
60
xi)Net current transfers from abroad
40
xii) current transfers from government
100
xiii)Miscellaneous receipts of the government
60
administrative departments
xiv)Private income
xv)Private final consumption expenditure
1400
760
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lqlsZi AMQ x oeU Mqi mU

xMs Ur EimS AU ur mrer Ar i
MeL
:
Rs in crores
1 xWri
40
2 uSz x Aei z xkl A

3 qsr x
100
4 urai MU
220
-120
5 le laq M oci
80
6 spz
40
7 AmirMU
200
8 laq MU
180
9 z Ur mrer Ar
2000
10 Ur Gh ore
60
11 uSz x z cs WxiiUh
40
12 xUMUx cs WxiiUh
100
13 xUMU upa x Alr mmir

60
14 le Ar
15 le Aiq Empa urr
1400
760
************************

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KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

Time Allotted: 3 hours

Maximum Marks: 100

3. p`Sna saM#yaa 1-5 AaOr 17-21 Ait laGau~a%mak p`Sna hOM.

What is demand schedule?

Explain the implication of product differentiation as a feature of monopolistic

LMkMUM mirai M Aiai EimS

DIsala ek vastu hOM jaha sarkar Aaiqa-k sahayata

Explain the central problem of an economy i) on distribution of income

ivakasaaqamak yaaojanaaAaoM ko ilae ek doSa kao

What is meant by BOT?

How does money solve the problem of double coincidence of wants

Calculate National income for the following data

i) Consumption of fixed capital

ii) Net indirect tax

vi)Gross fixed capital formation

vii) Government final consumption expenditure

viii)Private final consumption expenditure

ix) Net factor income from abroad

lqlsZi AMQ x Ur Ar i MeL1Acs me M Empa

6xMs xjU me lqh

7xUMU Aiq Empa urr

Explain the functions of central bank as banker to the government.

Explain the components of capital account in BOP

in support of your answer.

Given below is the consumption function in an economy:

lc Ajuruxj q Empa Tsl Sr ar W:

i Ajuruxj xisl q W i MeLA Arluz urr q xisl xiU M Ar

v)Saving of private corporations

vii) Indirect Tax

ix)Net national disposal income

x) National debt interest

xi)Net current transfers from abroad

xii) current transfers from government

xiii)Miscellaneous receipts of the government

lqlsZi AMQ x oeU Mqi mU

2 uSz x Aei z xkl A

13 xUMU upa x Alr mmir

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