CBSE Class 12 Economics Question Paper 2021 Original
|Time allowed : 3 hours||Maximum Marks: 80|
- All questions in both sections are compulsory.
- Marks for questions are indicated against each question.
- Question Nos. 1-4 and 13-16 are very short answer questions carrying 1 mark each. They are required to be answered in one sentence each.
- Question Nos. 5-6 and 17-18 are short answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
- Question Nos. 7-9 and 19-21 are also short-answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
- Question Nos. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
- The answer should be brief and to the point and the above word limits should be adhered to as possible.
SECTION A (MICROECONOMICS)
1. The Total Revenue earned by selling 20 units is Rs. 700. Marginal Revenue earned by selling 21st unit is Rs. 70. The value of Total Revenue earned by selling a total of 21 units will be _________. Choose the correct alternative)
(a) 721 (b) Rs. 630 (c) Rs. 770 (d) 720
2. In the given figure X1Y1 and X2Y2 are Production Possibility Curves in two different periods T1 and T2 respectively for Good X and Good Y. A1 and A2 represent actual outputs and P1 and P2 represent potential outputs respectively in the two time periods.
The change in actual output of Goods X and Y over the two periods would be represented by a movement from _______. (Fill up the blank)
(a) A2 to P2 (b) A1 to P2 (c) P1 to A2 (d) A1 to A2
The Marginal Rate of Transformation (MRT) is constant. The Production Possibility Curve, So formed, would be ________ to the origin. (Fill up the blank)
3. Under imperfect competition, Average Revenue (AR) remains ______ Marginal Revenue (MR). (Fill up the blanks)
“For a firm to be equilibrium Marginal Revenue (MR) and Marginal COST (MC) must be ______ and beyond that level of output Marginal Cost must be _______.”(Fill up the blank)
4. If the supply curve is a straight line parallel to the vertical axis (Y-axis), Supply of the good is called as ______.(Fill up the blank)
(a) Unitary Elastic Supply
(b) Perfectly Elastic Supply
(c) Perfectly Inelastic Supply
(d) Perfectly Elastic Demand
5. Distinguish between positive economics and normative economics, with suitable examples.
6. Explain the law of diminishing marginal utility, with the help of a hypothetical schedule.
Elaborate the law of demand, with the help of a hypothetical schedule.
7. The market for a good is in equilibrium. How would an increase in an input price affect the equilibrium price and equilibrium quantity, keeping other factors constant? Explain using a diagram.
Note: The following question is for the Visually Impaired Candidates only, in lieu of Q. No. 7:
The market for a good is in equilibrium. How would an increase in an input price affect the equilibrium price and equilibrium quantity, keeping other factors constant? Explain.
8. (a) The coefficient of price elasticity of demand for Good X is (-) 0.2. If there is a 5% increase in the price of the good, by what percentage will the quantity demanded the good fall?
(b) Arrange the following coefficients of price elasticity of demand in ascending order:
(-) 3.1, (-) 0.2, (-)1.1
How would the demand for a commodity be affected by a change in “tastes and preferences” of the consumers in favour of the commodity? Explain using a diagram.
Note: The following question is for the Visually Impaired Candidates only, in lieu of Q.No. * (Alternative):
How would the demand for a commodity be affected by a change in “Tastes and preferences” of the consumers in favor of the commodity? Explain.
9. Which of the following statements are true or false? Give valid reasons in support of your answer.
(a) Average cost curve cuts Average variable cost curve, at its minimum level.
(b) Average product curve and Marginal product curve are U-shaped curves.
(c) Under all market conditions, Average revenue and marginal revenue are equal to each other.
(d) Total cost curve and Total variable cost curve are parallel to each other.
Explain a firm’s equilibrium under perfect competition, using a hypothetical schedule.
10. Explain the meaning of the following features of the Oligopoly Market:
(a) Non-Price Competition
(b) Few Sellers
11. (a) What is meant by increasing returns to a variable factor?
(b) Discuss briefly, any two reasons for the decreasing returns to a variable factor.
12. Explain the following conditions:
(a) Movement along the same indifference curve.
(b) Shift from a lower to a higher indifference curve.
Explain the Law of Equi-Marginal Utility.
SECTION B (MACROECONOMICS)
13. Primary deficit in a government budget will be zero, when ________ . (Choose the correct alternative)
(a) Revenue deficit is zero
(b) Net interest payments are zero
(c) Fiscal deficit is zero
(d) Fiscal deficit is equal to interest payment
14. In order to encourage investment in the economy, the Central Bank may ______ . (Choose the correct alternative)
(a) Reduce Cash Reserve Ratio
(b) Increase Cash Reserve Ratio
(c) Sell Government securities in open market
(d) Increase Bank Rate
15. What do you mean by a direct tax?
What do you mean by an indirect tax?
16. Define ‘money multiplier’.
17. Calculate the change in final income, if Marginal Propensity to consume (MPC) is 0.8 and change in initial investment is Rs. 1,000 crores.
18. State the impact of “Excess Demand” under the Keynesian theory on employment, I an economy.
State the meaning of the following:
(a) Ex-Ante Savings
(b) Full Employment
(c) Autonomous Consumption
19. Classify the following statements as revenue receipts or capital receipts Give valid reasons in support of your answer.
(a) Financial help from a multinational corporation for victims in a flood affected area.
(b) Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd.
(c) Dividends paid to the Government by the State Bank of India.
(d) Borrowings from International Monetary Fund. (IMF).
20. “Higher Gross Domestic Product (GDP) means greater per capita availability of goods in the economy.” Do you agree with the given statement? Give a valid reason for your answer.
Explain the meaning of Real Gross Domestic Product and Nominal Gross Domestic Product, using a numerical example.
21. Distinguish between ‘Qualitative and Quantitative tools’ Credit control as may be used by a Central Bank.
22. (a) Define “Trade Surplus” and “Trade Deficit”.
(b) Discuss briefly the concept of a managed floating system of foreign exchange rate determination.
23. Discuss the adjustment mechanism in the following situations:
(a) Aggregate demand is lesser than the Aggregate Supply.
(b) Ex-Ante Investments are greater than Ex-Ante Savings.
24. Define the following:
(a) Value Addition
(b) Gross Domestic Product
(c) Flow Variables
(d) Income from property and entrepreneurship
Give the following data, find the values of “Gross Domestic Capital Formation” and “Operation Surplus”.
|S.No.||Particulars||Amount (Rs. in crores)|
|(ii)||Wages and Salaries||12,000|
|(iii)||Private Final Consumption Expenditure||7,200|
|(iv)||Net Indirect Taxes||700|
|(v)||Gross Domestic Capital Formation||?|
|(vii)||Government Final Consumption Expenditure||6,100|
|(viii)||Mixed-Income of Self-Employed||4,800|
|(xii)||Net Factor Income from Abroad||(-) 150|