This section contains the sample paper of economics for class XII CBSE students.
Total time allotted-3 hrs
All questions are compulsory
Answer the questions in your own words
This sample paper is divided into 3 parts:-
Very short answer questions
1 marks each
Short answer question
3 marks each
Long answer question
6 marks each
Very Short Answer questions:-(1 mark each)
1. What is a market economy?
2. When is a firm called ‘price-taker’ ?
3. Define budget set.
4. What is meant by ‘increase’ in supply?
5. Define supply?
Short Answer questions:-(3 mark each)
6. Why is a production possibilities curve concave? Explain.
7. 8 units of a good are demanded at a price of Rs. 7 per unit. Price elasticity of
demand is (-)1. How many units will be demanded if the price rises to Rs. 8 per unit?
Use expenditure approach of price elasticity of demand to answer this question.
8. Giving examples, explain the meaning of cost in economics.?
9. Draw average revenue and marginal revenue curves in a single diagram of a firm
which can sell more units of a good only by lowering the price of that good. Explain. For blind candidates in lieu of Q No.9:
Distinguish between Average Revenue and Marginal Revenue with the help of a
10. Explain the implication of ‘freedom of entry and exit to the firms’ under perfect
Explain the implication of ‘perfect knowledge about market’ under perfect competition.
11. A consumer consumes only two goods X and Y. State and explain the conditions of
consumer’s equilibrium with the help of utility analysis.
12. Explain how the demand for a good is affected by the prices of its related goods.
13. Define ‘Market-supply’. What is the effect on the supply of a good when Government
imposes a tax on the production of that good? Explain. OR
What is a supply schedule? What is the effect on the supply of a good when
Government gives a subsidy on the production of that good? Explain.
Long answer question:-(6 marks)
14. What is meant by producer’s equilibrium? Explain the conditions of producer’s
equilibrium through the ‘total revenue and total cost’ approach. Use diagram. For blind candidates in lieu of Q No. 14 :
What is meant by producer’s equilibrium? Explain the conditions of producer’s
equilibrium through the ‘total revenue and total cost approach’. Use a schedule.
15. Explain the three properties of indifference curves.
16. Market for a good is in equilibrium. There is an ‘increase’ in demand for this good.
Explain the chain of effects of this change. Use diagram. For blind candidates only in lieu of Q No. 16 :
Market for a good is in equilibrium. There is an ‘increase’ in demand for this good.
Explain the chain of effects of this change. Use a numerical example. OR
Distinguish between collusive and non-collusive ‘oligopoly. Explain how the oligopoly
firms are interdependent in taking price and output decisions.
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