CBSE Class 12 Economics Sample Paper 2013 Set 05 Solved

SECTION-A

1. What is Marginal Rate of Substitution? 

2. Why the need for economizing the use of resources does arise? 

3. Give any two reasons for a rightward shift in supply curve. 

4. What do you mean by product differentiation? 

5.Define Marginal revenue. 

6.Explain the central problem of “How to produce?” Use diagram for explanation. 

7.Explain the law of demand. Use table for explanation. 

8. State whether the following statements are true or false, give reasons for your answer 

    a.) Average Cost falls only when Marginal Cost falls.

    b.) The difference between Average Cost and Average Variable Cost falls as the quantity of output rises.

9. Why a producer under a perfect competitive market is a ‘Price Taker’? State the reasons.

10. Define consumer’s equilibrium. Explain the situation of consumer’s equilibrium by using the indifference curve and budget line analysis. Use diagram. 

11. What will happen to the equilibrium price and equilibrium quantity when:

      a) The producer adopts modern technology in the production process.

      b) The income of the consumer decreases in respect to normal good.

13. Suppose the exchange rate of US dollar against the Indian rupee rises from Rs.48 to Rs.51, How is it influence India’s export? 

14. What do you meant by Bank Rate? 

15. What do you mean by Balance of Payment? Write any two components of Balance Of Payment. 

16. State whether the following are included in National Income or not, give reasons

      a) Scholarship given to an Indian student studying in India by a foreign company. 

      b) Profits earned by an Indian bank from its branch abroad.

17. Distinguish between fixed and flexible foreign exchange rate. 

Please refer to attached file for CBSE Class 12 Economics Sample Paper 2013 Solved Set E