CBSE Class 12 Economics Sample Paper 2013 Set 08

SECTION-A

1. Give one example each of microeconomics and macroeconomics.

2. When is the demand of a commodity said to be inelastic?

3. Define production function.

4. What causes a downward movement along a supply curve?

5. Define monopoly.

6. Why does an economic problem arise? Explain.

7. Distinguish between a normal good and an inferior good. Give example in each case.

8. How is the price elasticity of demand of a commodity affected by the number of its substitutes? Explain.

9. Explain the effect of rise in input prices on supply of a commodity.

10. Why is a firm under perfect compititon a price-taker? Explain.

11. Define marginal cost. State the relation between marginal cost and average cost.

12. Commodities X and Y have equal price elasticity of supply. The supply of X rises from 400 units to 500 units due to a 20 percent rise in its price. Calculate the percentage fall in supply of Y if its price falls by 8 percent.

13. Explain the meaning and the conditions of producer's equilibrium (under marginal revenue & marginal cost approach)

14. Explain the conditions of consumer's equilibrium in case of (i) single commodity and (ii) two commodities. Use utility approach.

15. Giving reasons, state whether the following statement are true or false:

      (i) When there are diminishing returns to a factor, total product always decreases.

      (ii) Total product will increase only when marginal product increases.

      (iii) When marginal revenue is zero, average revenue will be constant.

16. Explain the implications of the following features of perfect competition.

      (i) Homogeneous products

      (ii) Freedom of entry and exit to firms.

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