CBSE Board Class 12 Economics Previous Year Question Papers 2011

CBSE Board Previous Year Question Papers 2011 for Class 12 Economics

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each.
3. Question Nos.  1 and  13 are very short answer questions carrying  1 mark for each part.
They are required to be answered in o sentence each.
4. Question Nos. 2-5 and 14-I7 are short answer questions carrying 3 marks each. Answer to
them should not normally exceed 60 words each.
5. Question Nos.  6-9 and  18-21 are also short answer questions carrying  4 marks each.
Answer to them should not normally exceed 70 words each.
6. Question Nos. 10-12 dad 19-24 are long answer questions carrying 6 marks each. Answers
to them should not normally exceed 100 words each.
7. Answers should be brief and to the point and the above word limits be adhered to as far as
8. All of the question should be answered at one place.
class 12

Q1. Answer the following questions:
a) Define market supply.
b) What is meant by producer’s equilibrium’
c) Define marginal physical product
d) Define equilibrium price.         4x1
Q2. State any three causer of a rig shift of demand curve of a commodity.   3
Q3. State the geometric method of measuring price elasticity of supply (In case of straight supply
curve).            3
Q4. What is the relation between marginal cost and average variable coat?  3
Q5. State three main features of perfect competition.      3
Q6. Complete the following table:
Output (Units)  Price (Rs.)  Total Revenue  Marginal Revenue (Rs.) 
Q7. Distinguish between ‘change in supply’ and ‘change in quantity supplied’ of a commodity. (Use
diagrams)            4Or
Explain any two determinants of supply of a commodity.
Q8. Explain the problem of ‘what to produce’ with the help of an example.   4
Q9. The quantity demanded PF a commodity at a price of Rs. 8 per unit is 600 units. Its price falls
by 25 per cent and quantity demanded rises by 120 units. Calculate its price elasticity of demand.
Is its demand elastic? Give reason for your answer.       4
Q10. Explain consumer’s equilibrium, in case of a single commodity, with the help of a utility
schedule.            6
How is the demand of a commodity affected by changes in the price of related goods? Explain with
the help of diagrams.
Q11. Explain the law of variable proportion with the help of total and marginal physical product
curves.            6
Q12. How does an increase in demand of a commodity affect its equilibrium price and equilibrium
quantity? Explain with the help of a diagram.       6


Q13. Answer the following questions:
a) Why is repayment of loan a capital expenditure?
b) Define macroeconomics.
c) What is meant by balance of trade?
d) Give two examples of microeconomic studies.       4x1
Q14. From the following data about firm ‘X’, calculate gross value added at factor cost by it: 3
   Rs. (in thousand)
(i) Sales
(ii) Opening stock
(iii) Closing stock
(iv) Purchase of intermediate produce 
(v) Purchase of machinery
(vi) Subsidy 
Q15. Explain the meaning of deflationary gap with the help of a diagram.    3
Q16. What is meant by revenue deficit? What are its implications?     3Q17. Complete the following table:          3
Level of
income (Rs.) 
Marginal Propensity
to consumer 
Marginal Propensity
to save 

Q18. State the main functions of a central bank.        4
Q19. What is meant by visible and invisible Items in the Balance of Payments account? Give two
examples of invisible items.          4
What is meant by foreign exchange rate? Give three reasons why people de- sire to have foreign
Q20. Explain any two functions of a commercial bank.      4
Q21. Distinguish between:
a) Revenue receipts and capital receipts.
b) Direct tax and Indirect tax.
Q22. From the following data, calculate:         3, 3
(a) Personal disposable income and
(b) National income
a) Private income
b) Compensation of employees
c) Mixed income of self employed
d) Net factor income from abroad
e) Net retained earnings of private enterprises
f) Rent
g) Profit
h) Consumption of fixed capital
i) Direct taxes paid by households
j) Corporate tax 
k) Net indirect taxes
l) Net exports
m) Interest 

Q23. Explain the working of investment multiplier with the help of a numerical example. 6
In an economy planned savings exceed planned investment. How will the equality between the
two be achieved? Explain.
Q24. Distinguish between the following giving suitable examples in support of your answer:
(a) Domestic product and national product
(b) Intermediate product and final product       3