CBSE Class 12 Economics Sample Paper 2011 Solved Set B

SECTION-A

1. What causes an upward movement along a demand curve of a commodity ?

2. What is the price elasticity of supply of a commodity whose straight line supply curve passes through the origin forming an angle of 75°?

3. What change will take place in marginal product, when total product increases at a diminishing rate?

4. Give the meaning of marginal cost.

5. Give the meaning of ‘oligopoly’.

6. Explain the inverse relationship between the price of a commodity and its demand.

7. State the ‘law of supply’. What is meant by the assumption ‘other things remaining the same’ on which the law is based?

8. The price elasticity of supply of good X is half the price elasticity of supply of Good Y. A 10% rise in the price of good Y results in a rise in its supply from 400 units to 520 units. Calculate the percentage change in quantity supplied of good X when its price falls from Rs 10 to Rs 8 per unit.

9. State the distinction between explicit cost and implicit cost. Give an example of each.

SECTION-B

10. What is meant by foreign exchange rate?

11. What is meant by Statutory Liquidity Ratio?

12. How is primary deficit calculated?

13. What is meant by balance of trade? 

14. State two sources of supply of foreign currency.

15. Can an economy be in equilibrium when there is unemployment in the economy. Explain?

16. In an economy income increases by 10,000 as a result of a rise in investment expenditure by 1,000. Calculate:

     (a) Investment Multiplier

     (b) Marginal Propensity to Consume

17. State whether the following statements are true or false. Give reasons for your answer:

      (a) Capital formation is a flow.

      (b) Bread is always a consumer good.

      (c) Nominal GDP can never be less than Real GDP.

      (d) Gross domestic capital formation is always greater than gross fixed capital formation.

18. Given below is the consumption function in an economy:

                C = 100 + 0.5Y

With the help of a numerical example show that in this economy as income increases APC will decrease.

Please refer to attached file for CBSE Class 12 Economics Sample Paper 2011 Solved Set B