CBSE Class 12 Economics Sample Paper 2014 Set 07

SECTION-A

1) Define a budget line 

2) What is meant by inferior good in economics? 

3) In which market form a firm cannot influence the price of the product? 

4) When does a firm earn profit? 

5) What happens to equilibrium price of a commodity if there is an increase in demand and decrease in supply? 

6) Define utility. Explain the relationship between TU and MU curves. 

OR

State any three assumptions of law of diminishing marginal utility. 

7) At a market price of ₹10, a firm supplies 4 units of output. The market price increases to ₹30. The price elasticity of supply is 1.25. What quantity will the firm supply at a new price? 

8) Explain the concept of short run and long run. 

9) State three causes for rightward shift in demand curve. 

10) ‘A firm under perfect competition is a price taker’. Explain. 

11) Define opportunity cost. An economy produces just two goods, wheat and rice. The following table shows its production possibilities. Calculate the marginal opportunity cost of wheat for various combinations. 

12) Explain consumer’s equilibrium in case of two commodities with the help of schedule and diagram. 

OR

Explain any four factors affecting the price elasticity of demand. 

13) On the basis of the information given below determine the level of output at which the producer will be in equilibrium. Use the marginal cost-marginal revenue approach. Give reasons.  

Please refer to attached file for CBSE Class 12 Economics Sample Paper 2014 Set G