# CBSE Class 12 Economics Sample Paper: 2018

CBSE has issued Sample Papers for Class 12th and Class 10th board exams. With this article, you can download CBSE Class 12 Economics Sample Paper 2018 in PDF format. Marking Scheme of this CBSE Class 12 Economics Sample Paper is also available here.

Updated: Feb 14, 2018 18:08 IST CBSE Sample Paper 2018 for Class 12 Economics

CBSE Class 12 Economics Sample Paper 2018 is available here for download (along with Hints and Marking Scheme) in PDF format. This Sample Paper is recently issued by CBSE for Class 12 Economics board exam 2018. With these CBSE sample papers, students will get an idea about the latest examination pattern and the level of questions to be asked in the coming CBSE Class 12th Economics board exams 2018.

Students of Class 12 must solve this sample paper and after that student must also match their solutions with hints or Marking Scheme provided with this Sample Paper. All the questions of this paper are very important for CBSE class 12 Economics board exam 2018.

## Complete CBSE Class 12 Economics Sample Paper is given below

Sample Question Paper

Class XII (2017-18)

Economics (030)

MM: 80                                                                                                                                  Time: 3 Hours

Question1:

Which of the following is a statement of normative nature in economics?

(a) Economics is study of choices/alternatives.

(b) Government should be concerned with how to reduce unemployment

(c) According to an estimate, in spite of severe shortage, more than 10% of houses in Indian cities are lying vacant.

(d) Accommodation of Refugees is posing a big problem for the Europe

CBSE Class 12 Economics Syllabus 2017-2018

Question2:

Define Marginal Physical Product.

Question3:

A firm is operating with a Total Variable Cost of Rs. 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs.200, what will be the Average Total Cost of producing 5 units of output?

(i) 140

(ii) 100

(iii ) 120

(iv) 300

Question4:

In an imperfectly competitive market, if the Total Revenue is maximum, Marginal Revenue will be ......................

Question5:

State and discuss any two factors that will shift the Production Possibility Frontier (PPF) to the right.

OR

Draft a hypothetical schedule for a straight line Production Possibility Curve.

Question6:

Giving reason, state the impact of each of following on demand curve of a normal good ‘X’ if

(i) Price of its complementary good falls.

(ii) News reports claims that consumption of product X has harmful effect on human health.

(iii) Income of consumer increases,

CBSE Class 12 Economics Question Paper 2017: All India

Question7:

(a) Arrange the following coefficients of price elasticity of demand in ascending order:

-0.87, -0.53, -3.1, -0.80

(b) Comment upon the degree of elasticity of demand for commodity X, if the price of the commodity falls from Rs. 28 per unit to Rs. 23 per unit and its quantity demanded rises from 50 units to 100 units.

Question8:

What is meant by Price Floor? Discuss in brief, any one consequence of imposition of floor price above equilibrium price with help of a diagram.

OR

How is the price of a commodity determined in a perfectly competitive market? Explain with help of a diagram.

Question9:

Explain how the following factors affect the supply of the commodity (any two)

(a) Price of factor inputs

(b) State of technology

(c) Government taxation policy

Question10:

(a) A consumer, Mr Aman is in state of equilibrium consuming two goods X and Y, with given prices Px and Py. What will happen if {(MUx)/Px} > {(MUy)/Py} ? (2)

(b) Identify which of the following is not true for the Indifference Curves theory. Give valid reasons for choice of your answer:

a. Lower indifference curve represents lower level of satisfaction.

b. Two indifference curves can intersect each other.

c. Indifference curve must be convex to origin at the point of tangency with the budget line at the consumer’s equilibrium.

d. Indifference curves are drawn under the ordinal approach to consumer equilibrium. (4)

OR

A consumer has total money income of Rs. 500 to be spent on two goods X and Y with prices of Rs. 50 and Rs. 10 per unit respectively. On the basis of the given information, answer the following questions:

a. Give the equation of the budget line for the consumer. (1)

b. What is the value of slope of the budget line? (1)

c. How many units can the consumer buy if he is to spend all his money income on good X? (2)

d. How does the budget line change if there is a 50% fall in price of good Y? (2)

Question11:

(a) Why is Total Variable Cost curve inverse S- shaped?

(b) What is Average Fixed Cost of a firm? Why is an Average Fixed Cost Curve a rectangular Hyperbola? Explain with help of a diagram.

Question12:

Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

Qd = 200 –10p                                                                        Qs = 50 + 15p

(i) Find the equilibrium price and equilibrium quantity of commodity X.

(ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 100 + 15p

Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

(6)

SECTION B: MACROECONOMICS

Question13:

Define money supply?

Question14:

State one fiscal measure that can be used to reduce the gap between rich and poor.

Question15:

Define the capital receipts of a government.

CBSE Class 12th Economics NCERT Books

Question16:

From the following data calculate Fiscal Deficit

 S.No. Item In Billions 1 Capital Receipt 68 2 Revenue Expenditure 160 3 Interest Payment 20 4 Borrowings 32 5 Tax Revenue 50 6 Non- Tax revenue 10

Question17:

Estimate the value of ex-ante AD, when autonomous investment and consumption expenditure (A) is Rs. 50 crores, and MPS is 0.2 and level of income is Rs. 300 crores.

OR

Calculate Multiplier when MPC is 4/5 and 1/2. From the calculations establish the relation between size of Multiplier and size of MPC? 10

Question18:

Discuss the significance of 45 degree line in Keynesian Economics.

Question19:

Elaborate ‘economic growth’ as objective of government budget.

Question20:

Question21:

How will ‘Reverse Repo Rate’ and ‘Open Market Operations’ control excess money supply in an economy?

OR

Illustrate with the help of a hypothetical numerical example the process of credit creation.

Question22:

(a) Define Externality.

(b) Find National Income from following using expenditure method

 · (in crores) 1 Current transfers from rest of the world 50 2 Net Indirect taxes 100 3 Net Exports ‒25 4 Rent 90 5 Private Final Consumption Expenditure 900 6 Net Domestic Capital Formation 200 7 Compensation of Employees 500 8 Net Factor Income from Abroad ‒10 9 Government Final Consumption Expenditure 400 10 Profit 220 11 Mixed Income of Self Employed 400 12 Interest 230

Or

Will the following factor income be included in domestic factor income of India? Give reasons for your answer:-

(i) Compensation of employees to the resident of Japan working in Indian embassy in Japan.

(ii) Payment of fees to a Chartered Accountant by a firm

(iii)Rent received by an Indian resident from Russian embassy in India.

(iv) Compensation given by insurance company to an injured worker.

Question23:

State whether the following statements are true or false. Give valid reasons for your answers.

(i) Unplanned inventories accumulate when planned investment is less than planned saving.

(ii) Deflationary gap exists when aggregate demand is greater than aggregate supply at full employment level.

(iii) Average propensity to save can never be negative.

Question24:

(a) ‘Devaluation and Depreciation of currency is one and the same thing’. Do you agree? How do they affect the exports of a country?

(b) What is meant by ‘official reserve transactions’? Discuss their importance in Balance of Payments.

CBSE Class 12 Economics Sample Paper: 2018

Marking Scheme of CBSE Class 12 Economics Sample Paper: 2018

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