CBSE Class 12 Economics Sample Paper 2018 Set 01

SECTION - A

1. Give equation of Budget Line. 

2. When income of the consumer falls the impact on price-demand curve of an inferior good is : (choose the correct alternative)

(a) Shifts to the right.

(b) Shifts to the left.

(c) There is upward movement along the curve.

(d) There is downward movement along the curve. 

3. If Marginal Rate of Substitution is constant throughout, the Indifference curve will be : (choose the correct alternative) 

(a) Parallel to the x-axis.

(b) Downward sloping concave.

(c) Downward sloping convex.

(d) Downward sloping straight line.

4. Giving reason comment on the shape of Production Possibilities curve based on the following schedule: 

5. What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities curve of the economy and why? 

Or

What will likely be the impact of large scale outflow of foreign capital on Production Possibilities curve of the economy and why?

6. The measure of price elasticity of demand of a normal good carries minus sign while price elasticity of supply carries plus sign. Explain why? 

7. There are large number of buyers in a perfectly competitive market. Explain the significance of this feature. 

8. Explain the effects of 'maximum price ceiling' on the market of a good. Use diagram. 

For the blind candidates only in lieu of Q. No.8.

What is price ceiling? Explain the effects of maximum price ceiling.

9. A consumer spends Rs. 1000 on a good priced at Rs. 8 per unit. When price rises by 25 per cent, the consumer continues to spend Rs. 1000 on the good. Calculate price elasticity of demand by percentage method. 

10. Define cost. State the relation between marginal cost. and average variable cost. 

Or

Define revenue. State the relation between marginal revenue and average revenue.

11. A consumer consumes only two goods X and Y both priced at Rs. 3 per unit. If the consumer chooses a combination of these two goods with Marginal Rate of Substitution equal to 3, is the consumer in equilibrium? Give reasons. What will a rational consumer do in this situation? Explain. 6

Or

A consumer consumes only two goods X and Y whose prices are Rs. 4 and Rs. 5 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 5 and that of Y equal to 4, is the consumer in equilibrium? Give reasons. What will a rational consumer do in this situation? Use utility analysis.

12. State the different phases of changes in Total Product and Marginal Product in the Law of Variable Proportions. Also show the same in a single diagram. 

For the blind candidates in lieu of Q. No. 12 only.

State, on the basis of a numerical example, different phases of changes in Total Product and Marginal Product in the Law of Variable Proportions. 

13. Why is the equality between marginal cost and marginal revenue necessary for a firm to be in equilibrium? Is it sufficient to ensure equilibrium? Explaain. 

Please click the link below to download CBSE Class 12 Economics Sample Paper 2018 Set A