CBSE Class 12 Economics Sample Paper 2014 Solved Set A

Section A

1. A country’s resources are fully and efficiently employed. The problem of scarcity exists. What advice will be given to raise the efficiency level of the human resource to fight scarcity? 

2. A perfectly elastic price-demand curve is parallel to the X-axis. Why or why not? 

3. What is cooperative oligopoly? 

4. An individual firm under perfect competition cannot influence the market price, then who can and how? 

5. Define supply. 

6. A good is an ‘inferior’ good for one and at the same time ‘normal’ good for another consumer. Do you agree? Explain. 

Or

Price elasticity of demand for flowers and toys are respectively (-) 0.9 and (-) 0.5. Demand for which one is more elastic and Why? 

7. Price elasticity of supply for a commodity is 5. When price of the commodity rises from Rs. 9 per unit to Rs. 10 per unit, supply rises by 25 units. Calculate quantity supplied at Rs. 9 per unit. 

8. Economic slow down in some parts of the world has adversely affected demand for Indian exports. What will be its effect on the production Possibilities frontier of India? Explain. 

9. A consumer consumes only two goods. Explain the conditions of consumer’s equilibrium with the help of the Utility Analysis. 

10. Why is an indifference curve convex towards the origin? Explain. 

11. What is ‘market’ demand? State four factors causing ‘increase’ in market demand.

OR

Explain the influence of following on price elasticity of demand of a good:

(i) Substitute goods.

(ii) Own price of the good 

12. Find out (a) explicit cost and (b) implicit cost from the following: (Rs. Thousand)

(i) Investment in fixed assets 2000

(ii) Borrowings at 12% interest per annum. 1500

(iii) Wages paid during the year 120

(iv) Annual rental value of the owner’s factory building 180

(v) Annual depreciation 100

(vi) Estimated annual value of the management services of the owner 240 

13. State the behavior of Total Variable Cost. Draw Total Variable Cost, Total Cost and Total Fixed Cost Curves in a single diagram. Note: the following question is for the blind candidates only in lieu of Q. No. 

14. Explain the conditions of equilibrium of a firm based on marginal cost and marginal revenue. Use diagram. 

Note: The following question is for the blind candidates only in lieu of Q. No.

14. Explain the meaning of producer’s equilibrium. Also explain the conditions of equilibrium of a firm based on marginal cost and marginal revenue.

15. Explain the implications of the following:

(i) Freedom of entry and exit to firms under perfect competition.

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