Model test
paper economics 2015 -16
Time 3hrs
Class XII MM
100
General Instructions :
i) All questions in are compulsory.
ii) Marks for questions are indicated
against each.
iii) Questions No. 1-5 and 16-20 are very
short answer questions (MCQs) carrying, 1 mark each.
iv) Questions No. 6-8, 21-23 are
short-answer questions carrying, 3 marks each. Answers to them should normally
not exceed 60 words each.
v) Questions No. 9-11and 24-26 are also
short-answer question & carrying 4 marks each. Answers to them should
normally not exceed 70 words each.
vi) Questions No.12-14 and 27-29 are
long-answer questions carrying 6 marks each. Answers to them should not exceed
100 words each.
vii) Answers should be brief and to the
point and the above word limits should be adhered to as far as possible.
Part - A
1.
Total utility is maximum when :-
(a) M.U. is zero. (b) M.U.is at its highest point? ( c ) M.U.is equal to T.U. (d) M.U. IS
maximum. (1)
2. What will happen if price of commodity falls:-
(a) Consumer’s real income increases (b) Consumer’s real income decreases
(c
) No change in the real income of the consumer (d) None of them. (1)
3.
Which one of the following cost curves is never
‘U’ shaped?
(a) Average cost curve (b) Marginal Cost
Curve
(C) Average variable cost curve (d) Average fixed cost curve. (1)
4.
Elasticity of supply is zero means: -
(a) Perfectly elastic supply. (b) Perfectly inelastic supply
(c) Imperfectly elastic supply (d) none of them (1)
5.
Define market equilibrium.
1.
6. What is the implication of feature of free
entry and exit of firms under perfect competition? (3)
7. What is the shape of demand curve under
monopoly, explain with the help of a diagram.
(3)
8. A consumer want to consume two commodities,
the prices of the commodities are Rs.4 and Rs 5 respectively. The consumer’s
income is Rs. 20.
(i)
How much quantity of good one can a consumer consume if he spends his entire?
(ii)
Write down the equation of the budget line.
(iii)
What is slop of the price line?
(3)
OR
Why
is an indifference curve generally convex to the origin?
9.
Why does the demand curve slope downward from left to right? Explain any four
points. (4)
10.
Explain the effect the following on supply of a good: -
(i) Change in the price of inputs
(ii)
Technological advancement.
(4)
11.
Explain the relationship between AC, AVC and MC with the help of a
diagram. (4)
12.
Explain the concept of time horizons and supply curves.
(6)
13.
Explain the following: -
(i)
Why do indifference curves not intersect each other?
(ii)
Explain that higher indifference curve provide higher level of
satisfaction. 3x2 = 6
14.
Explain the following: -
(i) What does increasing marginal
opportunity cost along a PPC mean?
(ii) Draw a production possibility curve
and show under utilization and growth of resources.
3x2= 6
15.
Differentiate between Collusive Oligopoly and Non Collusive oligopoly.
OR
Market for a good is in equilibrium, there
is simultaneous decrease in both demand and supply, explain its effect on
market.
(6)
Part – B
16.
Narrow money refers to: -
(a) M1 (b) M 2 (c) M 3 (d) M 4 (1)
17.
Payment of interest is : -
(a) Revenue expenditure (b) Capital Expenditure
(c) Primary deficit (d) Fiscal
deficit
(1)
18.
In order to encourage investment in the economy, the RBI may : -
(a) Reduce CRR (b) Increase CRR (c) Increase Bank rate
(d) Sell securities in the open
market
(1)
19.
A government shows a Primary deficit of Rs 4400 crores, the revenue expenditure
on interest payment is Rs 400 crores. How much is the fiscal deficit.
(a)Rs
4000 crores (b)Rs. 4400
crores (c) Rs.4800 crores (d)
- Rs. 400 crores. (1)
20. What is Repo Rate? (1)
21.
Differentiate between final goods and intermediate goods.
OR
Differentiate between Producer goods and
Capital Goods.
(3)
22.
Can the value of APS be negative? If yes when?
(3)
23.
Explain the concept of under employment equilibrium with the help of a diagram?
Show on the same diagram the additional investment expenditure required to
reach full employment equilibrium?
(3)
24. Explain the ‘economic stability’ objective of
govt. budget.
(3)
25. Define Primary deficit. Explain implications
of zero Primary deficits. (3)
26. Why does demand for foreign exchange rise
when it price falls. (3)
27.
What do you mean by current account and what are its components?
OR
What do you mean by capital account
and what is its component?
(4)
28.
Explain ‘lender of last resort’ and Banker’s bank function of central bank.6
29.
Will the following be included in the calculation of National Income or Not : -
(i) Payment of interest on borrowing by
general government.
(ii) Salaries received by the Indian
employee working in American embassy.
(iv)
Salaries paid to Russian working in Indian embassy in
India. 3x2= 6
30.
From the following data calculate (a) Personal Disposable Income (b) National
Income
|
Sr. No.
|
Particulars
|
Rs. In Crores
|
|
1
|
Private Income
|
3000
|
|
2
|
Compensation of employees
|
800
|
|
3.
|
Mixed Income of self employed
|
900
|
|
4.
|
Net Factor income from Abroad
|
-50
|
|
5.
|
Net retained earning of
Private enterprises
|
600
|
|
6.
|
Rent
|
350
|
|
7.
|
Profit
|
600
|
|
8.
|
Consumption of Fixed Capital
|
200
|
|
9.
|
Direct taxes paid by Household
|
300
|
|
10.
|
Corporate tax
|
350
|
|
11.
|
Net indirect taxed
|
250
|
|
12.
|
Net Export
|
-70
|
|
13.
|
Interest
|
3000
|
MARKING SCHEME FOR SAMPLE
QUESTION PAPER
CLASS XII ECONOMICS
SAMPLE
QUESTION PAPER
ECONOMICS
CLASS-XII
Time allowed:
3 Hrs M.M
.100
Part - A
1. (a) 1
mark
2. (a)
1 Mark
3. (d)
1 Mark
4. (b) (1) Mark.
5.
Market equilibrium that where market demand and supply are equal and there is
no need to change.(1)
6. What is the implication of feature of free
entry and exit of firms under perfect competition? (3)
Ans.
This ensures that no firm can earn above normal profit in the long each firm
just earn normal profit.
i.e.
minimum necessary to carry on business.
If
some firm get abnormal profit other firms enter the industry, Supply increases,
price decreases and abnormal profit vanished.
And
vise versa 1+1+1 = 3
7. What is the shape of demand curve with the
help of a diagram?
Ans. 1. Single seller and no close substitute
2. Firm has full freedom and power
to fix price
3.
But demand of a firm is not in the control of the firm, in order to increase in
sale , firm has to reduce price.
1+1+1+= 3
8. A consumer want to consume two commodities,
the prices of the commodities are Rs.4 and Rs 5 respectively. The consumer’s
income is Rs. 20.
(i)
How much quantity of good one can a consumer consume if he spends his entire?
(ii)
Write down the equation of the budget line.
(iii)
What is slop of the price line? 1+1+1= 3
Ans.
(a)
Budget line equation P1 X
+ P2 Y = M , means 4x + 5Y =
20 (1 mark)
(b)
P1x +0 = M , 4x = 20 , x= 20/4 =5 Units (1Mark)
(c)
0 +P2y = 20, 5Y = 20 , Y = 20/5 = 4 Units
(1Mark)
(d)
Slope of budget line = P x/ Py means 4/5 = 0.8. (1Mark)
OR
Why
is an indifference curve generally convex to the origin?
Ans. i. Meaning of MRS xy = 1 mark
ii. Meaning of diminish MRS = 1 Mark
iii. Indifference curve convex due to diminishing MRS and
diagram = 2 Marks
9.
Why does the demand curve slope downward from left to right? Explain any four
points. (3)
Ans.
Any 04 points with explanation each carry 1 mark
1x4= 4 marks
10.
Explain the effect the following on supply of a good: -
(i) Change in the price of inputs .
(ii)
Technological advancement.
Explanation with diagram 2 x2 = (4
Marks)
11.
Explain the relationship between AC, AVC and MC with the help of a
diagram. (4)
1. All the curves are ‘U’ shaped
diagram = 1 mark
Explanation of three points of
relationship = 3 marks
12.
Explain the concept of time horizons and supply curves.
(6)
Ans.
Diagram and Explanation of Very Short period, short period and long period
supply curve
2+2+2
= 6 Marks.
13.
Ans.
(i)
Why do indifference curves not intersect each other? 3 marks
(ii)
Explain that higher indifference curve provide higher level of
satisfaction. 3 marks,
14.
Ans. (i) Diagram and explanation 3 Marks
(ii) Diagram and explanation 3 Marks.
(i)
1.
Meaning of MOC = 1 mark
2.
Table and with increasing MOC = 2 Marks. 1+2= 3 marks.
(ii)
Ans. Diagram with both the situations.
3 marks.
3x2=
6
15.
Differentiate between Collusive Oligopoly and Non Collusive oligopoly.
Ans.
Three points of difference with explanation 3 x 2 = 6 Marks.
OR
Market for a good is in equilibrium, there is
simultaneous decrease in both demand and supply, explain its effect on
market.
Draw
three diagrams with all explanation.
Three
diagram, 1 Mark for Diagram 1 Mark for Explanation. 2 x
3 = 6 Marks.
Part – B
16.
Narrow money refers to: -
(a) M1 1 mark
17.
Payment of interest is : -
(a) Revenue expenditure 1 Mark
18.
In order to encourage investment in the economy, the RBI may : -
(a) Reduce CRR 1 Mark
19.
A government shows a Primary deficit of 4400 crores, the revenue expenditure on
interest payment is 400 crors, How much is the fiscal deficit.
(c)
4800 crores
20.
Ans. Repo rate refers to the rate of interest charged by RBI for lending short
term loans to commercial against their securities.
21.
Differentiate between final goods and intermediate goods.
Three
differences with explanation 1 mark each ,
1x3 = 3 marks
OR
Three differences with explanation 1 mark
each ,1x3 = 3 marks
22. Ans.
1. Yes, = ½ marks,
2.
When Y is less than consumption, S is negative.
APS = S/Y APs is negative , = 1.5 Mark
Why consumption is more than income = 1Mark
Total = 3 Marks
23.
Explain the concept of under employment equilibrium with the help of a diagram?
Show on the same diagram the additional investment expenditure required to
reach full employment equilibrium?
Diagram = 2,
Explanation 1 mark. Total =
3 marks
24.
Ans. Meaning and explanation of ‘
Economic stability’ an object of
budget. 3 marks.
25. Ans.
Meaning and Formula of Primary deficit = fiscal deficit – interest payments.
mark
1 Mark.
It mean government has to borrow only for its
interest commitments on earlier loans. Govt is maintaining fiscal discipline in
the present year. = 2 marks
Total 3 Marks
26. Why does demand for foreign exchange rise
when it price falls.
Ans. Three points of explanation with 1 mark
each. 1x3 = 3
27. Meaning of Current account and explanation
of components = 1 + 3= 4 Marks
OR
Meaning
and explanation of components = 4
marks.
28.
Explain ‘lender of last resort’ and Banker’s bank function of central bank.
Explanation function of ‘lender
of last resort’ & function of Bankers Bank . 3 marks for each
29.
Will the following be included in the calculation of National Income or Not : -
(i) Payment of interest on borrowing by
general government.
No,
because these transfer payments.
(i)
Salaries received by the Indian employee working in American
embassy.
Yes, because
part of NFIA
(v)
Salaries paid to Russian working in Indian embassy in
India. 3x2= 6
Yes, it is
negative part of NFIA
30.
From the following data calculate (a) Personal Disposable Income (b) National
Income
|
Sr. No.
|
Particulars
|
Rs. In Crores
|
|
1
|
Private Income
|
3000
|
|
2
|
Compensation of employees
|
800
|
|
3.
|
Mixed Income of self employed
|
900
|
|
4.
|
Net Factor income from Abroad
|
-50
|
|
5.
|
Net retained earning of
Private enterprises
|
600
|
|
6.
|
Rent
|
350
|
|
7.
|
Profit
|
600
|
|
8.
|
Consumption of Fixed Capital
|
200
|
|
9.
|
Direct taxes paid by
Household
|
300
|
|
10.
|
Corporate tax
|
350
|
|
11.
|
Net indirect taxed
|
250
|
|
12.
|
Net Export
|
-70
|
|
13.
|
Interest
|
300
|
NI
by Income Method
COE+OS+MI+NFIA=
NI 3
800+(350+300+600)+900+(-50)=2900
Personal
disposable income + Private Income – corporate tax_ net retained earnings of
private enterprises –direct taxes paid by HH 3
3000-350-600-300=1750
