CBSE Class 12 Economics (Part B) 2012 Previous Year Question Paper
This is the CBSE Class 12 Economics (Part B) Previous Year Question Paper from 2012, focusing on Investment, Stock, Flows & Circular Flow of Income. The paper includes questions of varying difficulty, with 1-mark questions testing definitions of stock and flow variables, and depreciation. 3-mark questions require an explanation of the circular flow of income. 4-mark questions involve distinguishing between stock and flow with examples, and categorizing economic concepts like capital, saving, GDP, and wealth as either stock or flow, providing reasons for each classification. Solving this board question paper is crucial for students to understand the exam pattern, question types, and to effectively prepare for their final examinations.
Quick info
| Board | CBSE |
|---|---|
| Class | 12 |
| Subject | Economics Part B |
| Session | 2012 |
| Language | English |
| Type | Previous Year Question Paper |
| Exam type | Board Exam |
Paper pattern
The paper includes 1-mark, 3-mark, and 4-mark questions covering key concepts in Investment, Stock, Flows & Circular Flow of Income.
Topics covered
Paper topics
- Stock Variable
- Flow Variable
- Depreciation
- Circular Flow of Income
- Capital
- Saving
- Gross Domestic Product
- Wealth
Important topics
- Circular Flow of Income
- Stock vs Flow
PDF preview
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Question paper text
Investment, Stock, Flows & Circular Flow of Income
1 Mark Questions
1. Define stock variable. (Delhi 2012; All India 2011)
Ans. Stock variables are defined as any quantity measured at a particular point of time. e.g. number of machines in a plant, amount in the bank account on a specific date, etc.
2. Define flow variable. (All India 2012; Delhi 2011)
Ans. Flow variables are defined as any quantity measured per unit at a particular period of time, e.g. income or expenditure over a time period of one month or one year.
3. Define depreciation. (All India 2011)
Ans. It is the loss of value of fixed assets in use on an account of normal wear and tear, normal rate of accidental damages and expected or foreseen obsolescence. Depreciation is also called consumption of fixed capital.
3 Mark Questions
4. Explain the circular flow of income. (Compartment 2014; Delhi 2009)
Ans. Circular flow of income refers to the unending flows of production of goods and services, income and expenditure in an economy. It shows the redistribution of income in a circular manner between production units (firms) and households. It can be better understood with this diagram
Expenditure on goods and Factor services
Household Firms
Factor payments Goods and services Circular flow of income
4 Mark Questions
- Distinguish between stock and flow. Give two examples of each.
(All India 2013)
Ans. Difference between stock and flow
Basis Stock Flow
Time elements It relates to a point of time. It relates to the period of time.
Dimension It is not time dimensional. It is time dimensional as per hour, per month, per year.
Impact It influences the flow. Greater the stock of It influences the stock e.g. monthly increase in the
capital greater is the flow of goods and supply of money leads to an increase in the
services. quantity of money. Example Money in bank account as an 31st March, 2014 Number of births during the month of March 2015.
- Give reasons and categories the following into stock and flow (Delhi 2013)
- Capital
- Gross Domestic Product
Ans. (i) Capital: It is a manmade means of production. It is a stock because it is measured at given point of time.
- Saving: Give reasons and categories the following into stock and flow
- Wealth: It is a stock as it is measured at a particular point of time.
- Gross Domestic Product: It is a flow as it is the market value of final goods and services produced within the domestic territory during a period of time.
- Explain the circular flow of income. (Delhi 2013)
Ans. Circular Flow of Income: Circular flow of income refers to the unending flows of production of goods and services, income and expenditure in an economy. It shows the redistribution of income in a circular manner between production units (firms) and households. It can be better understood with this diagram
Expenditure on goods and Factor services
Household Firms
Factor payments Goods and services Circular flow of income
Frequently asked questions
What is this document?
This is a CBSE Class 12 Economics (Part B) Previous Year Board Question Paper from 2012.
What topics are covered in this paper?
The paper covers Investment, Stock, Flows, and the Circular Flow of Income, including definitions and distinctions between stock and flow variables.
How can solving this PYQ help me?
Solving this previous year question paper helps you understand the CBSE exam pattern, question difficulty, and improve your score in Economics.
What is the structure of the questions?
The paper contains 1-mark definition questions, 3-mark explanation questions, and 4-mark distinction and categorization questions.
Where can I find the answers to these questions?
While this document provides the questions, answers are typically found in separate marking schemes or by referring to your study material and teacher's guidance.
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