Time 3 Hrs.

MODEL PAPER ISC (Class 12th) Subject : ECONOMICS Max Marks-100

Answers to this Paper must be on the paper provided separately. You will not be allowed to write during the first 15 minutes. This time is be spent in reading the question paper. The time given at the head of this paper is the time allowed for writing the answers. The intended marks for questions or parts of questions are given in brackets. [ ]

Attempts all questions from Part I and any five questions from Part II
Part I (30 Marks) [Attempt any five questions] (Attempt all questions) Q.1. Answer briefly each of the following questions :i) How are Micro and Macro economics interdependent ? [2] ii) Define M.U. and how can it be obtained from T.U. [2] iii) Give two main assumptions of consumer's equilibrium. [2] iv) How is intensity of the desire related to marginal utility ? [2] v)What are substitute goods ? How does the price of a commodity affect the demand of its substitute good. [2] vi) Draw a diagram to show :[2] a. Unitary elastic supply. b. Perfectly inelastic demand. vii) Draw long run average cost curve the way it is derived from short run average cost curves. [2] viii) What are explicit costs ? Explain with examples. [2] ix) What is the shape of marginal cost curve and why ? [2] x) What do you understand by discriminating monopoly ? [2]
xi) Explain any two cannons of taxation as given by Adam Smith. [2]

1. Compensation of employees 2. Govt final consumption expenditure 3. Depreciation 4. Private final consumption expenditure. 5. Net exports 6. Net domestic fixed capital formation 7. Net factor income from abroad 8. Subsidies 9. Closing stock 10. Mixed income of self employed 11. Net indirect tax 12. Opening stock

Rs. in Crores 800 1000 500 1500 -20 400 30 200 50 120 110 200

xii) Differentiate between Absolute cost and comparative cost difference. [2] xiii) What are 'Floating Debts' ? [2] xiv) What are the advantages of revenue curves. [2] xv) What are leakages ? How do they affect the circular flow of income in an economy. [2]

Part - II (70 Marks)

Q. 2. a) How are subsidies and goal of the firm related to the supply of commodity. [4] b) Explain in brief total method of measuring elasticity of demand. [4] c) Discuss shift of the demand curve with the help of suitable diagrams and examples. [6] Q.3. a) Differentiate between perfect competition and monopolistic competition market. [4] b) Discuss any two reasons for the slope of the demand curve as given by the law of demand. [4] c) Explain with the help of a suitable diagram how a firm under perfect competition obtains super normal profit under short run? [6] Q. 4- a) Explain in brief any four precautions taken in the calculation of National Income by value added method. [4] b) Explain brief income method of measuring National Income. [4] c) Calculate NY and GDPFC with the help of the given data. [6]

Q. 5. a) Discuss any two methods of debt redemption. [4] b) What are direct taxes ? How are they different from indirect taxes. Give examples. [4] c) Explain gains from trade with the help of production possibility curve in comparative cost theory. [6] Q.6.a) What are wages ? How are nominial wages different from real wages. [4] b) Explain what is a budget ? How is plan budget different from performance budget ? [4] c) What is 'Fiscal policy ? Discuss objectives of fiscal policy. [6] Q.7.a) Differentiate between balance of payment and balance of trade and name the components of balance of payment. [4] b) Give the statement of the 'Law of variable proportion' and explain in which stage will the producer produce and be in equilibrium and why? [4] c) Explain market equilibrium with the help of suitable diagram and its mechanism. [6] Q.8a) Find elasticity of Demand when price changes by Rs. 30 to become Rs. 100 and quantity demand becomes 20 units from 40 units. [4] b) How is knowledge of elasticity important related to foreign trade and incidence of taxation. [4] c. Explain income elasticity of demand with its types. [6] Q.9 a) What can be the various shapes of Long Run average last curve ? Explain with the help of diagrams. [4] b) Differentiate between economic rent as given by classical economists and medium concept of economic rent. [4] c) What is Defint financing ? Is it inflationary harmful ? Discuss its need in a country like India. [6]

Tips for Class XII ISC ECONOMICS EXAM

(1) Read the question paper carefully. (2) Follow all the instructions given in paper. (3) Divide your time according to questions. (4) Before submitting your answersheet, once again read all the answers. Mrs. H. Kukreja M.A. (Eco.) B.Ed. NET