Updated: December 3, 2018 1:17:27 pm
CBSE Class 12 exams 2019: The Central Board of Secondary Education (CBSE) will conduct board examinations from February for the coming academic year 2019. The board has already released a list of vocational subjects for the examinations that will be conducted from February to March 2019, the schedule and date of the examinations will be released later.
From next year, the students need to get a minimum of 33 per cent marks in theory and practical combined to declare pass in the subject to get pass in the Class 10 examinations.
1. ‘Total Cost changes due to changes in TFC’. State True or False. Give reason 
Give the reason why AFC curve never touches X-axis
2. What would be the shape of PPF, if resources are equally efficient in the production of goods? 
3. Prove that Average revenue and price are same. 
4. When Marginal Physical Product falls, Total Physical Product …………………  (Choose the correct alternative)
c. Can rise or can fall
d. Remains constant
5. What is positive economics? Explain the basic economic problem of ‘for whom to produce’. 
What is normative economics? Explain the fundamental economic problem of ‘how to produce’.
6. Comment on the shape of supply curve if the price of a commodity rises by 5% and there is no
change in quantity supply. 
7. State the relations between AC and MC with a diagram. 
State the relations between MR and TR with a diagram, when the Price falls.
8. A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 3 and 4
respectively. Prices of X and Y are ? 4 per unit each. Is the consumer in equilibrium? What
will be further reaction of the consumer? Give reasons.
A consumer consumes only two goods X and Y, both priced at ? 2 per unit. If the consumer
chooses a combination of the two goods with MRS equal to 2, is the consumer in
equilibrium? Why or why not? What will a rational consumer do in this situation? Explain.
9. If there is ‘excess supply’ at a given price of a commodity, how will the equilibrium price be
reached? Use diagram. 
10. ‘Uniform price in key feature that makes Perfect Competition different from other market forms’.
Elaborate the factors in perfect competition that makes price constant. 
a. Why does the demand curve of a monopoly firm less elastic? Use diagram.
b. Discuss ‘price discrimination’ feature of monopoly.
11. Explain producers equilibrium in imperfect competition market by using Marginal Cost and
Marginal Revenue approach. 
12. a. Identify any two reasons for the superiority of ‘ordinal utility approach’ over ‘cardinal utility
approach’ in analysis.
b. Explain how the demand for a given commodity is affected by ‘changes in the prices of related
goods’ and ‘consumers expectations of future change in its price’. [2+4]
13. Give any one characteristic that make money a ‘medium of exchange’.
How does money solve the lack of unit of account of barter system?
14. What is deficit financing? 
15. Reverse Repo Rate is………………: (Choose the correct alternative) 
a) Equal to Repo Rate
b) Higher than Repo Rate
c) Lower than Repo Rate
d) None of these
16. Primary deficit and interest on debt are Rs 11500 Crores and Rs 3500 Crores respectively.
Calculate Fiscal deficit. 
17. Explain how the level of effective demand is attained if ‘aggregate demand’ is more than
‘aggregate supply’. 
Explain how the equilibrium in the economy is attained if investment exceeds saving
18. Estimate the value of aggregate demand in an economy.
i. Autonomous investment : 200
ii. MPC : 0.4
iii. Level of income(Y) : 8000
iv. Autonomous consumption: 100
19. Explain any two ‘qualitative credit control’ measures of the Central bank. 
Explain any two ‘quantitative credit control’ measures of the Central bank
20. Elaborate economic growth as an objective of government budget. 
Discuss the role of government budget in reducing economic inequality in the country.
21. What is double counting? What does it lead to? Suggest two measures to solve it. 
22. a.How does the rising foreign exchange rate affect the foreign trade of a country? [2+4]
b. Distinguish between ‘current account’ and ‘capital account’ transaction of BOP.
23. a. Explain ‘real flow’ in the context of a two sector model economy [2+4]
b.Calculate ‘GDP at market price’ from the following data (Rs in Crores)
i. Mixed income of self-employed : 500
ii.Social security contribution by employer : 100
iii.Consumption of fixed capital : 25
iv.Dividends : 40
v.Net factor income to abroad : 35
vi. Corporation tax : 60
vii. Subsidies : 10
viii. Net indirect taxes : 50
ix. Undistributed profit : 200
x. Wages and salaries : 900
xi. Interest and rent : 300
24. Elaborate ‘excess demand’ with a diagram. What are the government measures to reduce it? [4+2]
Elaborate ‘deficient demand’ with a diagram. What are the government measures to reduce it?
– The author is PGT Economics, VidyaGyan School, Bulandshahr
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