NAVODAYA VIDYALAYA SAMITI

SAMPLE PAPER-1 {2009-2010}

SUBJECT- ECONOMICS
CLASS: XII Max Marks.100

i) All questions in both the sections are compulsory

ii) Marks for questions are indicated against each.
iii) Question No 1-5 & 17-21 are very short answer types questions
carrying 1 mark for each part. They are required to be answered in one
sentence each.
iv) Questions No. 6-10 and 22-26 are short answer questions carrying 3
marks each. Answer to them normally not exceed 60 words each
v) Questions no. 11-13 and 27-29 is also short answer question carrying 4
marks each. Answers to them should normally not exceed 70 words
each.
vi) Questions no. 14-16 and 30-32 are long answer questions carrying 6
marks each. Answer to them should normally not exceed 100 words
each.
vii) Answer should be brief and to the point and above words limit should
be adhered to as far as possible.
viii) All parts of questions should be answered at one place.
Section: A
(Introductory Micro Economic Theory)
Q1 What is economic problem? 1

Q2 What is law of demand? 1

Q3 What happens to a demand for an inferior commodity, if there is 1
increase in the income of a consumer?


Q4 What is market supply? 1

Q5 When a producer is in equilibrium state? 1

Q6 What are the problems related with the problem of allocation of 3
resources?


Q7 What is the difference between increase in supply and extension in 3
supply?


Q8 Explain the relationship between total revenue and marginal revenue? 3


Q9 Explain why a firm under perfect competition is a price taker not a price 3
 maker.



Q10 What will be the effect on equilibrium price of a commodity if there is 3
decrease in the number of firms producing that commodity?



Q11 The price of a commodity increases from Rs, 10 per unit to Rs. 12 per 4
unit, consequently its demand falls by 10 percent. Calculate the price
elasticity of demand.




Q12 State and explain any four features of monopolistic competition. 4


OR
On what basis the markets are classified. Explain any four.



Q13 Complete the following table :- 4
Production(In Total cost(Rs) Marginal Average
Units)  Cost(Rs) variable cost
   (Rs)
  



0 60
1 140
2 190
3 240
4 300
Q14 How a consumer will be in equilibrium if he spends all his income on 6
two commodities.


Q15 Differentiate between the Decrease in Demand and Contraction in 2+4=6
Demand. State any four causes of decrease in demand.
Ekkax esa deh vkSj ekax esa ldqpu esa
 vUrj li"kV djksaA ekax esa deh ds pkj
dkj.k crkvks A
Q16 What are increasing returns to a factor? Explain it with the help of total 1+3+2=
physical product curve. State its two causes. 6



OR
What are diminishing returns to a factor? Explain it with the help of total
physical product curve. State its two causes




Section: B
(Introductory Macro Economic Theory)

Q17 What is commercial bank? 1


Q18 Define aggregate supply. 1

Q19 If Average propensity to consume is 0.75, what will be Average 1
propensity to save?


Q20 Is the income tax a revenue receipt or capital receipts? 1

Q21 If fiscal deficit of the government is 157 crores and the interest 1
payments are 80 cores, what will be primary deficit?

80
Q22 Explain the problem of double counting with the help of an example. 3


Q2 State any three agency functions of commercial banks. 3
3 

Q24 On what basis the government receipts are categorized into revenue 3
receipts and capital receipts.


Q25 Distinguish between direct and indirect taxes. 3

Q26 What is the difference between balance of trade and balance of 3
payments?


Q27 What is barter system? How the money has overcome the drawbacks 1+3=4
of barter system? Explain any three points.



Q28 In a two sector economy consumption and investment functions are as 2+2
follows:-
C= 50 +0.8Y ; I = 50
Calculate (a) Equilibrium level of income.
(b) Savings at this Equilibrium level of income.


C= 50+0.8Y I 50


Q29 Explain any four merits of fixed exchange rate. 4


OR
Explain any four merits of flexible exchange rate.


Q30 Explain the value added method of measuring National Income. 4+2
State any four precautions that should be taken while using this
method.




Q31 Explain the concept of Excess Demand with the help of a diagram. 4+2
Explain any two fiscal measures taken by government to correct it.




Q32 From the following data, calculate:- fuEu vkdMks dh enn ls Kkr 6
djksa%
a) National Income
b) Personal disposable income. Rs.Cr

(i) Private income 4000

ii) Mixed income 1200
iii) Net factor income from abroad (-)50

iv) Compensation of employees 1300

(v)
v) Net retained earnings of private companies 200
fuft m}fe;ksa dk 'kq} ifjJfed

Profi
vi) Profits 800

vii) Rent 600

viii) Corporate Tax 400

ix) Interest 700

x) Net indirect tax 500

xi) Net exports -100

xii) Direct taxes paid by households 150

xiii) Consumption of fixed Capital 180

OR
Calculate from the following data
i) GNP at Factor Cost lk?ku fderksa ij ldy
 mRikn Rs.Cr
ii) National Disposable Income.

i) Net current transfers from abroad 100


ii) Govt. final consumption expenditure 1000

iii) Subsidies 500

iv) Net domestic fixed capital formation 450

v) Exports 150

vi) Net factor income from abroad (- )30

vii) Change in stock 50
 
viii) Net indirect taxes 300

ix) Private final consumption expenditure 4000

x) Imports 200

xi) Consumption of fixed capital 40

(3+3)