CBSE Class 12 Economics Previous Year Question Paper 2014
This CBSE Class 12 Economics Previous Year Question Paper from 2014 focuses on the topic of Utility, Total Utility, Marginal Utility & its Law. It includes questions carrying 1 mark and 3 marks, testing fundamental definitions and the explanation of the Law of Diminishing Marginal Utility with the help of a utility schedule. The paper provides definitions for utility and marginal utility, along with the formula for MU. It also details the Law of Diminishing Marginal Utility, explaining that as more units of a commodity are consumed, the marginal utility derived from each successive unit decreases. The provided utility schedule illustrates this concept, showing how TU and MU change with increased consumption. Solving this previous year paper is crucial for students to understand the exam pattern, question types, and to effectively prepare for their board examinations.
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Quick info
| Board | CBSE |
|---|---|
| Class | 12 |
| Subject | Economics |
| Session | 2014 |
| Language | English |
| Type | Previous Year Question Paper |
| Exam type | Board Exam |
Paper pattern
The paper includes 1-mark and 3-mark questions, testing definitions and explanations of economic concepts.
Topics covered
Paper topics
- Utility
- Total Utility
- Marginal Utility
- Law of Diminishing Marginal Utility
Important topics
- Law of Diminishing Marginal Utility
- Definition of Utility
- Definition of Marginal Utility
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Question paper text
Utility, Total Utility, Marginal Utility & its Law
1 Mark Questions
1.Define utility. (Compartment 2014, Foreign 2014, Ail India 2010,2006)
Ans. The wants satisfying power of a good is called utility.
2.Define Marginal Utility (MU). (AllIndia2011)
Ans. Marginal Utility (MU) refers to additional utility on account of the consumption of an additional unit of a commodity.
<math>MU=TU_n-TU_n_1</math>
Where, MU = Marginal Utility, TU = Total Utility
3 Marks Questions
- Explain the Law of Diminishing Marginal Utility with the help of a utility schedule.(Delhi 2013)
or Explain the Law of Diminishing Marginal Utility with the help of a Total Utility schedule. (All India 2011; Delhi 2010)
Ans. It is the fundamental Law of Utility approach to consumer's equilibrium. This law states that as more and more standard units of a commodity are continuously consumed, the Marginal Utility obtained from each successive unit goes on diminishing. This law is also called as a 'Fundamental Law of Satisfaction' or 'Fundamental Psychological Law'.
Utility schedule
Units consumed Total Utility (TU) Marginal Utility (MU)
0 0 8 <math>8 - 0 = 8</math>
2 14 <math>14 - 8 = 6</math>
3 18 <math>18 - 14 = 4</math>
4 20 20 - 18 = 2
5 20 <math>20 - 20 = 0</math>
6 18 18 - 20 = -2
The above schedule shows that with the consumption of successive unit of a commodity, the level of satisfaction falls and becomes negative or in other words, MU tends to decline as consumption of the commodity increases.
Note The above law is based upon certain assumptions. It is assumed that the different unit consumed should be identical in all respects and consumption should be continuous.
4. Define Marginal Utility (MU). State the Law of Diminishing Marginal Utility.(All India 2006)
Ans. Marginal Utility (MU) refers to additional utility on account of the consumption of an additional unit of a commodity.
<math>MU=TU_n-TU_n</math> 1
Where, MU = Marginal Utility, TU = Total Utility
It is the fundamental Law of Utility approach to consumer's equilibrium. This law states that as more and more standard units of a commodity are continuously consumed, the Marginal Utility obtained from each successive unit goes on diminishing. This law is also called as a 'Fundamental Law of Satisfaction' or 'Fundamental Psychological Law'.
Utility schedule Units consumed Total Utility (TU) Marginal Utility (MU)
0 0 <math>8 - 0 = 8</math>
2 14 <math>14 - 8 = 6</math>
3 18 <math>18 - 14 = 4</math>
4 20 <math>20 - 18 = 2</math>
5 20 <math>20 - 20 = 0</math>
6 18 <math>18 - 20 = -2</math>
The above schedule shows that with the consumption of successive unit of a commodity, the level of satisfaction falls and becomes negative or in other words, MU tends to decline as consumption of the commodity increases.
Note The above law is based upon certain assumptions. It is assumed that the different unit consumed should be identical in all respects and consumption should be continuous.
5. Define utility. State the Law of Diminishing Marginal Utility. (Delhi 2006C)
Ans. The wants satisfying power of a good is called utility.
Frequently asked questions
What is this document?
This is a CBSE Class 12 Economics Previous Year Question Paper from 2014, designed for board exam practice.
What topics are covered in this paper?
This paper covers concepts related to Utility, Total Utility, Marginal Utility, and the Law of Diminishing Marginal Utility.
How can solving this paper help students?
Solving this previous year question paper helps students understand the exam pattern, question difficulty, and improve their scores in the CBSE Class 12 Economics board exam.
What is the structure of the questions?
The paper includes questions requiring definitions and explanations, such as defining utility and explaining the Law of Diminishing Marginal Utility with a schedule.
Is this paper useful for exam preparation?
Yes, this 2014 Economics PYQ is highly useful for students preparing for the CBSE Class 12 board examinations to gauge their understanding and practice answering relevant questions.
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