CBSE Class XII Economics All India Board Paper Set 3 - 2018

Time: 3 hrs.

Max. Marks: 80

Note:

Please check that this question paper contains 11 printed pages.

Code number given on the right hand side of the question paper should be written on the title page of the answer-book by the candidate.

Please check that this question paper contains 24 questions.

Please write down the Serial Number of the question before attempting it.

15 minutes time has been allotted to read this question paper. The question paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the question paper only and will not write any answer on the answer-book during this period.

General Instructions:

1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1 - 4 and 13 - 16 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence.
4. Questions No. 5 – 6 and 17 – 18 are short answer questions carrying 3 marks each. Answers to them should normally not exceed 60 words each.
5. Questions No. 7 - 9 and 19 - 21 are also short answer questions carrying 4 marks each. Answers to them should normally not exceed 70 words each.
6. Question number 10 - 12 and 22 - 24 are long-answer questions carrying 6 marks each. Answers to them should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as possible.

SECTION A

1. When marginal product rises, total product (Choose the correct alternative)

(1)

1. Fall
2. Rises
3. Can rise or can fall
4. Remains constant

2. What do you mean by the problem of scarcity? (1)

1. Define cost.

(1)

1. When average cost falls, marginal cost (Choose the correct alternative)
2. Falls
3. Rises
4. May fall or may rise
5. Neither falls nor rises

(1)

1. State any three determinants of individual demand other than own price of the good.(3)
2. Distinguish between microeconomics and macroeconomics. Give an example of each. (3) OR What does production possibilities curve show? Can it shift? When?
3. What is 'price floor'? Explain its implications.

(4)

1. Comment upon the shape of the demand curve if the price of a commodity rises by 10% and there is no change in its quantity demanded. (4)
2. What is revenue in microeconomics? State the relation between marginal revenue and average revenue under perfect competition, using suitable diagram or schedule. (4)

OR Define supply. Distinguish between "increases in supply" and "extension in supply".

1. Explain the law of variable proportions with the help of total product curve. Use

diagram. (6)

11. State and discuss four characteristics of perfect competition. (6)

1. A consumer consumes only two goods X and Y. Explain the conditions of consumer's

equilibrium using utility analysis. (6) OR State and explain three properties of indifference curves.