CBSE Class 12 Economics Sample Paper 2018 Set 04

Section A

1. The total cost at 5 units of output is Rs 30. The fixed cost is Rs 5. The average variable cost at 5 units of output is: 

a) Rs 25

b) Rs 6

c) Rs 5

d) Re 1

2. What policy initiatives can the government undertake to increase the demand of milk in the country? Mention any one. 

3. Which of the shaded area in the diagrams below represent total utility? 

For blind candidates:

What does the area under the marginal utility curve depict?

a) Average Utility b) Total Utility

c) Indifference Curve d) Consumer equilibrium

4. Using a diagram explain what will happen to the PPC of Bihar if the river Kosi causes widespread floods? 

For blind candidates:

State two assumptions of a PPC. Explain what will happen to the PPC of the Bihar if the river Kosi causes widespread floods.

5. State the central problems of an economy. 

6. State whether the following statements are True or False. Justify your answer. 

a) Average product rises only where marginal product rises.

b) Total cost rises only when marginal cost rises.

7. Explain the effects of a 'price ceiling'. 

OR

Explain the effects of a ‘price floor’.

8. Explain the implications of freedom of entry and exit of firms under perfect competition. 

9. A good is an 'inferior' good for one and at the same time 'normal 'good for another consumer. Do you agree? Explain with the help of an example. 

10. Explain why an indifference curve is convex to the origin? 

OR

A consumer consumes two goods X and Y. What will happen if MUx/Px is greater than MUy/Py?

11. Explain the condition of equilibrium of a firm based on marginal cost and marginal revenue. 

12. What is meant by change in supply and change in quantity supplied? 

13. The following headline appeared in the Hindustan Times on 2 August 2014:

"Crop damaged in Himachal sent tomato prices roaring in Delhi."

Use a diagram and economic theory to analyse the statement.

OR

On 19 December 2013, the following news item was printed in the Economic Times:4

Households in Southern India prefer to eat oranges for breakfast as banana plantations in Kerala have been destroyed and price of apples and grapes have also risen. Use a diagram and economic theory to analyse the impact of the rise in price of apples and grapes on the market of oranges.

For blind candidates:

The following headline appeared in the Hindustan Times on 2 August 2014:

“Crop damaged in Himachal sent tomato prices roaring in Delhi."Analyse the statement based on economics theories.

OR

On 19 December 2013, the following news item was printed in the Economic Times:

Households in Southern India prefer to eat oranges for breakfast as banana plantations in Kerala have been destroyed and prices of apples and grapes have also risen. Analyse the impact of the rise in price of apples and grapes on the market of oranges.

14. A consumer consumes only two goods. Explain the conditions that need to be satisfied for the consumer to be in equilibrium under indifference curve analysis. 

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