KENDRIYA VIDYALAYA SANGATHAN, ERANAKULAMREGION SAMPLE PAPER - 2[ ] ECONOMICS-CLASS XII BLUE PRINT UNIT TOPICS 1 3 MARKS 4MARKS 6MARKS TOTAL

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1 KENDRIYA VIDYALAYA SANGATHAN, ERANAKULAMREGION SAMPLE PAPER - [0-] ECONOMICS-CLASS XII BLUE PRINT UNIT TOPICS MARKS MARKS MARKS TOTAL MARK INTRODUCTION xx= x= 8 Consumer s behaviour and demand Consumer s equilibrium Demand & Elasticity of demand Producer s behaviour and supply x= x= x= Product x= Cost x= x= Revenue x= Producer s equilibrium Supply & Elasticity of supply Forms of Market & Price determination Forms of Market x= x= Price determination under perfect competition 5 National Income & Related Aggregates x= x= x= x= x= 8 0 x=9 x= 5 Money & Banking x= x= x= 8 x= x= x= 7 Determination of Income & Employment 8 Government Budget & Economy 9 Foreign Exchange Determination& Balance of Payments x= x= 8 x= x= 7 TOTAL

2 KENDRIYA VIDYALAYA SANGATHAN- ERNAKULAM REGION SAMPLE PAPER- 0- ECONOMICS Class XII Time : Hours Max. Marks: 00 General Instructions:-. All questions are compulsory.. Answer the questions after carefully reading the text.. Questions -5 and 7- are very short answer type questions, they are required to be answered in one sentence each. Questions -0 and - are short answer type questions carrying marks, they are required to be answered in 0 words each 5. Questions - and 7-9 are also short answer type questions carrying marks, they are required to be answered in 0-70 words each. Questions - and 0- are long answer type questions, they are required to be answered in 00-0 words each. 7. Question No.8 and 9 are value based questions. 8. Answer should be brief and to the point and the above word limit should be adhered to as far as possible. Section- A Why does production possibility Curve concave to the origin? What causes a movement along the demand curve of a commodity? When Marginal Product is falling and positive,at what rate Total Product is changing? Give two examples of fixed costs. 5 Under which market form is a firm a price taker? State reasons why does an economic problem arise? 7 Demand for a good doubles due to a 50 percent fall in its price. Calculate its price elasticity of demand? 8 From the following table calculate the price at each level of output: Output (units) Marginal Revenue(Rs) 0 9 Explain the relationship between marginal cost and average cost with the help of a cost schedule. 0. Explain Price discrimination feature of Monopoly Market? (or) Explain the role of selling cost under monopolistic competition? Explain the law of diminishing marginal utility with the help of a utility schedule.

3 Explain the conditions of consumer s equilibrium with the help of utility analysis. Explain the effect of the following on the supply of a commodity? (a) Technological changes (b) Change in price of inputs How does change in price of related goods affect the demand of a commodity. Explain? Explain three properties of indifference curves. Explain the conditions of consumer s equilibrium under indifference curve approach. 5 Is a producer in equilibrium under the following situations? (i) When marginal revenue is greater than Marginal cost (ii)when Marginal revenue is equal to marginal cost. Give reasons for your answer. How is equilibrium price of a commodity determined? Explain with the help of a demand and supply schedule. SECTION B 7 Give the meaning of involuntary unemployment. 8 Suppose the economy is in the grip of recession. To overcome the recession the government has decided to make a new investment of 000 cores. How much National Income will be generated if the marginal propensity to consume of the society is 0.75? 9 What is meant by revenue deficit? 0 Define Money supply. What is a Government Budget? Find Net Value Added at market price: ( Rs.Crores) (i) Depreciation 700 (ii) Output sold 900 (iii)price per unit of output 0 (iv)closing stock 000 (v) opening stock 800 (vi)sales tax 000 (vii)intermediate cost 0,000 Explain the unit of measure functions of money?

4 Giving reason identify whether the following are final expenditure or intermediate expenditure : (i) Expenditure on maintenance of an office building. (ii) Expenditure on improvement of a machine in a factory. 5 Machine purchased is always a final good. Do you agree? Give reason for your answer. When price a foreign currency rises its demand falls. Explain why? When price of foreign currency rises, its supply also rises. Explain why? 7 Explain the components of Legal Reserve Ratio. Explain the Banker s Bank Function of a central Bank. 8 What is deficient demand? Explain the meaning of deflationary gap with the help of a diagram. 9 BOP of India is in deficit due to depreciation of Indian rupee against Dollar. Suggest any two ste to be taken by the central bank to balance the account. 0 Distinguish between revenue expenditure and capital expenditure. And also categories t following into revenue expenditure and capital expenditure. (a)repayment of loans (b)expenditure on power generation (c) Payment of pension (d) Expenditure on subsidies on food and fertilizers. From the following data given below about an economy, calculate: (b) (c) (a) Consumption expenditure Investment expenditure Savings at equilibrium (i) Equilibrium level of income 000 (ii) Autonomous consumption 500 (iii) Marginal Propensity to Consume 0.75 Find out: (a) National Income (b) Net current transfer from the rest of the world. cores (i) Private final consumption expenditure. 00 (ii) Depreciation 00 (iii) Net national disposable income 00 (iv) Closing stock 5 (v) Government final consumption expenditure 00 (vi) Net indirect taxes 50

5 (vii) Opening stock 0 (viii) Net domestic fixed capital formation 0 (ix) Net export 5 (x) Net factor income to abroad (-)0 Calculate (a)gross National Product at factor cost (b) Personal disposable Income (i) Net factor income to abroad 0 (ii) Private income 700 (iii) Operating surplus 00 (iv) Corporation tax 50 (v) Undistributed profit 0 (vi) Mixed income of self-employed 500 (vii) Consumption of fixed capital 00 (viii)personal taxes 00 (ix) Compensation of employees 00 (x) Net indirect taxes 50 ******************* 5

6 KENDRIYA VIDYALAYA SANGATHAN, ERANAKULAM REGION SAMPLE PAPER- 0- ECONOMICS-CLASS XII ANSWER KEY Q.No Value point Marks PPC is concave to origin because of increasing Marginal rate of Transformation Change in price of a commodity causes movement along the demand curve Total product will be increasing at decreasing rate. Rent for building, Minimum Telephone bill 5 Under perfect competition (a) Unlimited wants (b) Limited Resources (any two points with explanations) 7 Elasticity of demand= Since quantity demanded doubles,% change in quantity demand is 00% % change in price is 50% Ed= = 8 Output MR TR Price MC is an addition made to total cost by one more unit of output is produced. AC is per unit cost of production of an output. The relationship between MC and AC as follows: When MC< AC, then AC falls When MC=AC, then AC is minimum When MC>AC, then Ac rises, output TC MC AC MC<AC MC=AC MC>AC.5 AC falls AC Min.. AC Rises 0 Price discrimination under monopoly is the practice of charging different prices from different customers at the same time for the same product. Eg: Indian Railway, KSEB Selling cost is very essential under monopolistic competition, it is the expenses incurred on marketing,, sales promotion and advertisement of a product. The law od diminishing marginal utility states that the marginal utility derived from the consumption of a commodity must diminish as more and more unit of that commodity are consumed at point of time. Units of commodity Total Utility Marginal Utility 00 00

7 In case the consumer consumes two or more than two commodities his equilibrium will be determined by the law of equi- marginal utility. It states that a consumer spends his money income on different goods in such a way that the ratios of marginal utility of commodity and its price are equal for all commodities i.e. = =MUm Technological changes: Advanced and improved technology of production will increase the supply of a product. Technological degradation or outdated technology will reduce the supply of a product. Change in price of factor inputs: Fall in prices of factor inputs will increase the supply of a product. Rise in prices of factor inputs will decrease the supply of a product. Change in price of related goods affect the quantity demanded of a commodity.. In the case of substitute good,fall in price will decrease the quantity demand and rise in price will increase the quantity demand of a commodity eg;tea & coffee. In the case of complementary good, fall in price will increase the quantity demand and rise in price will decrease the quantity demand of a commodity. Eg: Pen &Ink (a) An indifference curve always slopes downward. (b) Indifference curves are convex to the origin. (c) Indifference curve can never intersect each other. (Three points with explanation) Conditions of consumer s equilibrium (a) Budget line should be tangent to Indifference curve i.e. MRS XY = (b)indifference curve should be convex to the point of origin at equilibrium point. 5 Producer is said to be in equilibrium when he is earning maximum profit. Necessary conditions are:.mr=mc.mc>mr after MC=MR output level as long as MC is less than MR,It is profitable for the producer to go on producing more because it adds more to profits. When MC> MR after equilibrium, it means producing more will lead to decline in profits. 7

8 Equilibrium price is the price where demand for a commodity is exactly equal to its supply Price(Rs) Demand(units) Supply(units) Remarks 5 50 > 0 > 0 = 0 < 0 < Excess demand = Equilibrium Excess supply Equilibrium price is Rs. Where both market demand and market supply are equal If Demand > Supply It is the situation of excess demand, price of the commodity will be pushed up till demand= supply If Demand< Supply, It is the situation of excess supply, price of the commodity will be pushed down till demand = supply 7 Involuntary unemployment occurs when those who are able and able to work at the prevailing wage rate do not get job. 8 ΔY= K x ΔI K = = = Δ I = 000 Δ Y = X 000 = Excess of revenue expenditure over revenue receipts. 0 Total volume of money held by the public at a particular point of time. Government budget is a detailed financial statement of the estimate of government receipts and government expenditure during a financial year. Net value added at market price: (iii X ii +iv v vii i) (0 X900) = Rs.5500 Money function as a unit of measure, providing a common measure of the value of goods and services being exchanged. Money enables both the supplier and the purchaser of the good to make decisions about how much of the good to supply and how much of the good to purchase. (i) Intermediate expenditure since it reoccurs every year, it does not help in further production and it is a part of depreciation. (ii) intermediate expenditure, since it will help in further production, but it may have to be done again and again. 5 Whether machine is final good or intermediate good depends upon how it is being used. If the machine purchased by a household, then it is a final good. If the machine purchased by a firm for its own use, then also final good. If the machine purchased by a firm for resale in the market, then it is an intermediate good. When price of foreign currency rises its demand falls because of inverse relationship between exchange rate and demand for foreign exchange. When price of foreign currency rises, imports become dearer, so imports decreases and demand for foreign currency falls. There is direct relationship between foreign exchange rate and supply of ½ ½ ½ ½ 8

9 foreign exchange. When price of foreign exchange rises domestic goods became cheaper,so exports increase and hence supply of foreign currency increases. 7 LRR is the minimum fraction of the total deposits which is legally compulsory for a commercial bank to keep as cash with themselves as per the central Bank s guidelines. it has two components: (i) Cash reserve Ratio; Minimum amount of funds that a commercial bank has to maintain with RBI. (example (ii) Statutory Liquidity Ratio: Minimum reserve of assets with RBI either fixed or liquid. (example) The central Bank act as Banker s Bank in various respects: (a) provides financial assistance to the commercial a banks. (b) Act as a custodian of cash reserve ratio (c) As a clearing agent (d) As a lender of last resort. (X=) 8 Deficient demand is situation in which current aggregate demand falls short of aggregate demand required to establish full employment. Deflationary gap is the gap by which the extent to which current aggregate demand falls short of aggregate demand required to establish full employment equilibrium. Diagram showing deflationary gap. 9.Take any measure to reduce the import bill of the country.. Take necessary steps to increase inflow of foreign exchange to the country (or any two measures to reduce deficit in BOP) 0 Revenue expenditure: Expenditure of the government which does not result in creation of any asset or reduction in liability, it is financed out of revenue receipt. Capital expenditure: Expenditure of the government which leads to create an assets or reduction in liabilities. It is financed out of borrowing from the public of foreign government. a.repayment of loans: Capital expenditure, it reduces the liability of government. b. expenditure on power generation: capital expenditure, it creates asset to the government. c. Pension payment: revenue expenditure,it neither creates assets nor reduces liability d. Expenditure on subsidies on food and fertilizers:revenue expenditure, (a) Consumption expenditure: C = + by C = 500+0,75 X 000 =5000 (b) Investment expenditure Y = C + I, I = Y- C I = =000 (c) Savings S =- + -b Y = X000 9

10 = 000 National income = (i) +(v)+(viii) +(iv) (vii) +(ix)-(vi) (x) (-)0 =0 Net national Disposable Income = national income+ Net indirect taxes +Net current transfer from abroad 00 = Net current transfer from abroad Net current transfer from abroad = (-)0 GNPfc =(iii) +(vi) +(ix)+ (vii) (i) =090 Personal disposable income=(ii)-(iv)-(v)- (viii) =0 0

CBSE Class XII Economics Delhi Board Paper Set Time: 3 hrs Max. Marks: 100

CBSE Class XII Economics Delhi Board Paper Set 1 2017 Time: 3 hrs Max. Marks: 100 Note: Please check that this question paper contains 12 printed pages. Code number given on the right hand side of the