West Bengal Board Class 12 Economics Sample Papers 2011

Class XII

ECONOMICS

(Set-1)

Time allowed : 3 hours                                                                                   Maximum Marks: 70

General Instructions:

(i) All questions in both the sections are compulsory.

(ii) Marks for questions are indicated against each.

(iii) Questions No. 1-5 and 17-21 are very short-answered questions carrying 1 mark each. They are required to be answered in one sentence each.

(iv). Questions No. 6-10 and 22-26 are very short-answered questions carrying 3 mark each. They are required to be answered in 60 words each.

(v). Questions No. 11-13 and 27-29 are very short-answered questions carrying 4 mark each. They are required to be answered in 70 words each.

(vi). Questions No. 14-16 and 30-32 are very long-answer questions carrying 6 mark each. They are required to be answered in 100 words each.

(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

SECTION-A

1. Give the meaning of opportunity cost.

2. What is meant by inferior good in economics?

3. Define marginal cost.

4. Give one reason for a rightward shift in supply curve.

5. Why is average total cost greater than average variable cost?

6. State the law of demand and show it with the help of a schedule.

7. Explain the geometric method of measuring price elasticity of demand.

8. Why do problems related to allocation of resources of resources in an economy arise? Explain.

                                            OR

Explain the problem of ‘for whom to produce’.

9. Complete the following table:

Output (Units) Total Revenue (Rs.) Marginal Revenue (Rs.) Average Revenue (Rs.)
1 --- --- 8
2 --- 4 ---
3 12 --- 4
4 4 --- 2

10. Explain the effect of fall in prices of other goods on the supply of a given good.

11. Explain two points of distinction between monopoly and monopolistic competition.

                                        OR

Explain any two main features of perfect competition.

12. The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 percent rise in the price X results in a 40 percent rise in its supply. If the price of Y falls by 8 percent, calculate the percentage fall in its supply.        4

13. Given below is a cost and revenue schedule of a producer. At what level of output is the producer in equilibrium? Give reasons for your answer.                                4

Output (Units) Price (Rs.) Total Cost (Rs.)
1 10 13
2 10 22
3 10 30
4 10 38
5 10 47
6 10 57
7 10 71

14. With the help of a demand and supply schedule, explain the meaning of excess demand and its effect on price of a commodity.

                                                   OR

Define equilibrium price of a commodity. How is it determined? Explain with the help of a schedule.

15. Giving reasons, state whether the following statements are true or false:

(i) Average cost falls only when marginal cost falls.

(ii) The difference between average total cost and average variable cost is constant.

(iii) When total revenue is maximum, marginal revenue is also maximum.

16. Explain the effect of the following on the market demand of a commodity:

(i) Change in price of related goods

(ii) Change in the number of its buyers

Output (Units) Total Revenue (Rs.) Marginal Revenue (Rs.) Average Revenue (Rs.)
0 --- -90 ---
100 0.6 --- ---
200 0.6 --- ---
300 0.6 --- ---

23. Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

                                                          OR

Distinguish between domestic product and national product. When can domestic product be more than national product?

24. Distinguish between balance on trade account and balance on current account.                    3

25. State three main functions of a commercial bank. Explain any one of them.

26. Give the meaning of revenue deficit, fiscal deficit and primary deficit.                                3

27. Describe the evolution of money.                                   4

                                             OR

Explain any two functions of money.

28. Explain any two objectives of a government budget.                                         4

29. Explain two merits each of flexible foreign exchange rate and fixed foreign exchange rate.                       4

30. While estimating national income, how will you treat the following? Give reasons for your answer.

(i) Imputed rate of self occupied houses.

(ii) Interest received on debentures.

(iii) Financial help received by flood victims.                                  6