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CBSE Important Questions

CBSE Guess > Papers > Important Questions > Class XII > 2012 > Economics > Economics By Mr. Raghuvanshi Kuldeep

Economics - CBSE CLASS XII

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Set - I

Section: A  -Micro Economics

Q.1. Define positive economics          For - 1 Mark

Q.2. Define inelastic demand          For - 1 Mark              

Q.3. In which competition a firm is the price taker?         For - 1 Mark

Q.4. Why demand for water is inelastic?          For - 1 Mark

Q.5. What is the shape of MR curve of a firm under competitive market.?          For - 1 Mark

Q.6. Explain the  problem of an economy related to “ distribution of product” . give example

         For - 3 Marks

Q.7. Distinguish between increase in dd and increase in quantity demand


Q.. Why demand curve of normal goods is negatively slopped downward?         For - 3 Marks

Q.8 .How does the change in income of buyer is related with the dd for a commodity?

Q.9 .A consumer buys 10 units of good X at a price of Rs 5 per unit. The price elasticity of demand for this good is 2.Price falls to Rs 4/unit. How much units of good X will he now buy at this price?          For - 3 Marks

Q.10. State whether the following statement are true or false. Give reason          For - 3 Marks
A. Ist stage is the best stage  of production.
B. Summation of MC is equal to TC.
C. Minimum of AC lies on the left of the min of AVC.

Q.11. Why AR curve of a firm under oligopoly is indeterminate ?            For - 4 Marks

Q.12. A consumer consumes only two goods x and y at a certain level of consumption of these two goods  he finds that MU of both commodity is not equal. Explain the reaction of the consumer             For - 4 Marks

Q.13. Define AVC . How it is related with MC. use diagram.             For - 4 Marks


Q. In perfect competition AR=MR  whereas in imperfect competition AR>MR. Explain why?.

Q.14. Explain the effect of  followings on supply curve of a commodity             For - 6 Marks

a.  Rise in input price  

b. Decrease in per unit tax         

Q.15. Explain the condition of consumer equilibrium in case of  2 commodity by IC approach. What would happen ifMRSxy is not equal to the price ratio .

            For - 6 Marks

Q.16 . Explain the behaviour  of output when firm changes only one input keeping other as fixed. Which is the best stage of production?


( a ) Explain the condition of producer equilibrium by using MR-MC approach.Why  should MC   be rising?

( b ) Market for a good is in equilibrium. If govt. Decrease the subsidies, explain its effect on  equilibrium price             For - 3 + 3 Marks

Section B- Macro Economics

Q. 17 Define primary deposits.          For - 1 Mark

Q.18. Define fiat money          For - 1 Mark

Q.19 What do you mean by frictional unemployment?          For - 1 Mark

Q. 20. Define consumption function.          For - 1 Mark

Q.21 What do you mean by spot exchange rate?          For - 1 Mark

Q.22 From the following   calculate gross domestic capital formation          For - 3 Mark

Item Rs. Crore
Net indirect tax  10
Opening stock 25
Net domestic fixed capital formation  180
Closing stock     25
Consumption of fixed capital  2

Q.23 Explain  how non monetary exchanges are  a limitation  in taking GDP as an index of welfare?          For - 3 Mark


Giving reasons, classify the followings into intermediate and final goods                                         
A. machinery purchased by a dealer of machine
B. A juicer purchased by a juice vendor

Q.24 Explain the “ Standard of deferred payment” function of money.          For - 3 Mark

Q.25 How open market operations are  used to control the flow of credit in an economy?          For - 3 Mark

Q.26 Why does demand for foreign  exchange falls with rise in exchange rate?          For - 3 Mark

Q.27 How  is credit  expanded by commercial banks in an economy?          For - 4 Mark

Q.28 From the following data about the govt. budget find ----Revenue Deficit. , Fiscal  Deficit.,   and Primary  Deficit          For - 4 Mark

Item  Rs in cr
Tax receipts   50
Cap 40
Receipts from fee, fine escheats 15
Debt 32
Revenue Expenditure 80
Interest  payments 15

Q.29 How do  the followings  dealt in budget as revenue expenditure or capital  expenditure.  Give reason in support of your answer             For - 4 Mark
i.   Grants to UT’
ii. Maintenance of roads
iii. Expenditure on tax collection
iv. Construction of bunkers for army


Define  forex market . Explain its functions and its kinds.

Q.30 Define current account  deficit. What does it show and how  is it  financed?          For - 6 Mark

Q.31Calculate  (a) NNPfc    (b) Personal income      (c) Personal disposable income            For - 6 Mark

Item  Rs crore
1.NDPmp 38000 
2.Income from property and ntrepreneurship  accruing to the govt 600
3.Net factor income to abroad   (-)300
4National debt interest 200
5.Current transfer to rest of the world 100
6.Unemployment benefits from govt. 600
7.Net indirect tax  3000
8.Direct tax paid on income 600
9.Corporate profit tax  900

Q.32 In an economy  every time income rises            For - 6 Mark


Q. Explain how can  changes in   a.    Bank Rate   and  b.  Public expenditure   be helpful in  correcting  the situation of excess and deficient AD

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Prepared By: Mr. Raghuvanshi Kuldeep
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