### 12th Standard CBSE Economics Study material & Free Online Practice Tests - View Model Question Papers with Solutions for Class 12 Session 2020 - 2021 CBSE [ Chapter , Marks , Book Back, Creative & Term Based Questions Papers - Syllabus, Study Materials, MCQ's Practice Tests etc..]

#### Class 12th Economics - Non-Competitive Markets Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

Monopolistic Competition in a commodity market arises due to the commodity being non-homogenous. This kind of a structure is more commonly visible. The demand curve faced by the firm in this kind of market is not horizontal (perfectly elastic) as in the case with perfect competition. The demand curve faced by the firm is also not the market demand curve, as in the case with monopoly. In the case of monopolistic competition, the firm expects increase in demand if it lowers the price. We know that demand curve of a firm is also its AR curve. The given firm, therefore has a downward sloping AR curve. The Marginal Revenue (MR) is less than Average Revenue (AR) and also downward sloping. The firm increases its output whenever the MR is greater than Marginal Cost (MC).
(a) Explain why the demand curve facing a firm under monopolistic competition is negatively sloped.
(b) Comment on the shape of the MR curve faced by the given firm under Monopolistic Competition.

#### Class 12th Economics - Market Equilibrium Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

We commonly come across instances where government fixes a maximum allowable price for certain goods.
The government imposed upper limit on the price of a good or service is called 'price ceiling'. It is imposed on generally necessary items like wheat, rice, sugar etc. It is fixed below the market-determined price, as at the market determined price some section of the population will not be able to afford these goods.
The government imposed lower limit on the price that may be charged for a particular good/service is called 'Price floor'. Some popular examples of imposition of price floor are agricultural price support programmes and the minimum wage legislation. Through the 'agricultural price-support programme' the floor is normally set at a level higher than the market-determined price for these goods. Similarly through the 'Minimum Wage Legislation' the government ensures that the minimum wage rate is set above the equilibrium wage rate.
(a) Give another name for 'market-determined price'?
(b) Explain the concept of 'price-ceiling'.
(c) Throw light on the concept of 'Price-floor' with suitable examples.

#### Class 12th Economics - The Theory of the Firm Under Perfect Competition Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

A perfectly competitive market has the following defining features:
1. The market consists of a large number of buyers and sellers, i.e., each individual buyer and seller is very small compared to the size of the market.
2. Each firm produces and sells homogenous product, i.e., buyers can buy from any seller.
3. Entry into the market as well as exit from the market are free for firms. This condition is essential for the large number of firms to exist.
4. Information is perfect w.r.t. price, quality and other relevant details about the product.
These features result in the single most distinguishing characteristics of perfect competition: the price taking behaviour of the firm.
(a) Explain the 'large number of buyers and sellers' feature of a perfectly competitive market.
(b) Which condition is essential for the large number of firms to exist?

• 2)

Technological progress affects the supply of a product by altering its cost of production. If there is improvement in production technology used by the firm, the cost of production declines and consequently the firm would supply more than before at the given price. On the other hand, if the firm uses primitive technology, the cost of production rises and consequently the firm would supply less than before.
Analyse graphically the impact of the improvement in production technology used by the given firm on its supply.

#### Class 12th Economics - Introductory Microeconomics Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

Every society has to determine how to allocate its scarce resources to different goods and services. An allocation of the scarce resources of the economy gives rise to a particular combination of different goods and services. "The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock oftechnical knowledge is called the Production Possibility Frontier of the economy". Given below is an example of an economy producing corn or cotton by using its resources. Table given shows the different combinations of corn and cotton that the economy can produce when its resources are fully utilised.
$\begin{array}{|c|c|c|} \hline {\text { Production Possibilities }} \\ \hline \text { Possibilities } & \text { Corn } & \text { Cotton } \\ \hline \text { A } & 0 & \mathbf{1 0} \\ \text { B } & 1 & 9 \\ \text { C } & 2 & 7 \\ \text { D } & 3 & 4 \\ \text { E } & 4 & 0 \\ \hline \end{array}$
(a) What is a 'Production Possibility Frontier'?
(b) If all the resources are used in the production of corn, how much is the maximum amount of corn that can be produced?
(c) If all the resources are used in the production of cotton, how much is the maximum amount of cotton that can be produced?
(d) When the given consumer moves from Possibility A to E, what does it indicate?

#### Class 12th Economics - Production and Cost Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

Average Product (AP) refers to the output per unit of variable input.$\mathbf{A P}_{\mathrm{L}}=\frac{\mathrm{TP}_{\mathrm{L}}}{\mathrm{L}}$ , where L stands for labour.
Marginal Product (MP) refers to the change in the output per unit of change in the input when all other inputs are held constant (here capital is held constant).
$\mathrm{MP}_{\mathrm{L}}=\frac{\text { Change in Output }}{\text { Change in Input }}=\frac{\Delta \mathrm{TP}_{\mathrm{L}}}{\Delta \mathrm{L}}$
Δ represents the change of the variable showing their relationship graphically, the MP curve looks like an 'inverse V-shaped curve'. AP curve is also inverse 'U-shaped curve'.

As we increase the amount of input-labour, the MP rises. AP being the average of MP also rises but rises less than MP.
Then after a point MP starts falling. However as long as value of MP remains higher than the value of AP, AP continues to rise.
Once MP has fallen sufficiently its value become less than AP and AP also starts falling.
(a) Define MP and comment on the shape of MP curve.
(b) Explain the relationship between MP curve and AP curve.

#### Class 12th Economics - Theory of Consumer Behaviour Case Study Questions and Answers 2022 - 2023 - by Study Materials - View & Read

• 1)

The quantity of a commodity that a consumer is willing to buy and is able to afford, given prices of other goods and consumer's income and his tastes and preferences is called' demand' for the commodity. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the 'Demand function'.
The demand function can also be represented graphically as the 'demand curve'. The demand curve is a relation between the quantity of the good chosen by a consumer and the price of the good. It gives the quantity demanded of the given good by the consumer at each price.
The slope of the demand curve measures the rate at which quantity demanded changes w.r.t. its price. It is estimated as $-\frac{\Delta p}{\Delta \boldsymbol{q}}$. Slope is the rate at which demand curve slopes downwards.
(a) Elaborate the concept of "Demand function".
(b) What do you understand by the 'Slope of the demand curve'?
(c) What does the negative (-) sign in the above formula indicate?

#### CBSE 12th Introductory Microeconomics and Macroeconomics - Open Economy Macroeconomics Five Mark Model Question Paper - by Mita Das - Mysore - View & Read

• 1)

When exchange rate of foreign currency falls its demand rises. Explain how?

• 2)

Explain the effect of appreciation of domestic currency on imports.

• 3)

The balance of trade shows a deficit of Rs.5000 crores and the value of imports are Rs.9000 crores.

• 4)

State four sources each of demand for and supply of foreign exchange.

• 5)

Explain the causes of disequilibrium in the balance of payments.

#### 12th Standard CBSE Introductory Microeconomics and Macroeconomics - Government Budget and the Economy Five Mark Model Question Paper - by Mita Das - Mysore - View & Read

• 1)

What are the objectives of a budget?

• 2)

Explain the allocation function of a government budget.

• 3)

Explain the 'economic stability' objective of a government budget.

• 4)

Define externalities.Give an example of negative externality.What is its impact on welfare?

• 5)

What is a tax? Explain the different types of a tax

#### 12th Standard CBSE Introductory Microeconomics and Macroeconomics - Income Determination Five Model Question Paper - by Mita Das - Mysore - View & Read

• 1)

How do we find that$K=\frac { 3 }{ 1-MPC }$?

• 2)

Explain the meaning of underemployment equilibrium.Explain two measures by which full employment equilibrium can be reached.

• 3)

Define investment.Explain national income equilibrium through saving and investment function.Aso explain the changes that take place in an economy when the economy is not in equilibrium.

• 4)

Explain the relationship between multiplier and MPC

• 5)

Explain monetary measures for correcting inflationary and deflationary gap.

#### 12th CBSE Introductory Microeconomics and Macroeconomics - Money and Banking Three Mark Model Question Paper - by Mita Das - Mysore - View & Read

• 1)

State the four functions of money. Describe any one.

• 2)

Give meaning of money. Explain its medium of exchange function.

• 3)

What is 'Barter'? Explain 'standard of deferred payment' function of money.

• 4)

Explain the evolution of money?

• 5)

What is ideal supply of money?

#### 12th Standard CBSE Introductory Microeconomics and Macroeconomics - Introductory Macroeconomics Three Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

Give five variables of macroeconomics.

• 2)

What is the difference between microeconomics and macroeconomics?

• 3)

What are the important features of a capitalist economy?

• 4)

Describe the Great Depression of 1929.

• 5)

Mention any two macroeconomics events.

#### CBSE 12th Standard Introductory Microeconomics and Macroeconomics - National Income Accounting Five Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

What efforts should be made in an economy to avoid continuous use of exhaustible natural resources in production?

• 2)

Exports receipts are not a part of net factor income from abroad. Why?

• 3)

Will the following be included in domestic factor income of India? Give reasons for your answer.
(i) Profits earned by a foreign bank from its branches in India
(ii) Scholarships given by Government of India
(iii) Profits earned by a resident of India from his company in Singapore
(iv) Salaries received by Indians working in American Embassy in India

• 4)

Explain the expenditure method of estimating National Income.

• 5)

How will you treat the following while estimating domestic product of India?
(i) Rent received by a Indian resident from his property in Singapore
(ii) Salaries to Indians working in Japanese Embassy in India
(iii) Profits earned by a branch of an American Bank in India
(iv) Salaries paid to Koreans working in Indian Embassy in Korea

#### 12th CBSE Introductory Microeconomics and Macroeconomics - The Theory of the Firm Under Perfect Competition Three Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

What are the characteristics of a perfectly competitive market?

• 2)

What is the 'price line'?

• 3)

What is the relation between market price and average revenue of a price-taking firm?

• 4)

Will a profit-maximizing firm in a competitive market produce a positive level of output in the short-run if the market price is less than the minimum of AVC? Give an explanation.

• 5)

What is the supply curve of a firm in the short-run?

#### 12th CBSE Introductory Microeconomics and Macroeconomics - Production and Cost Five Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

Giving reason, state whether the following statements are true or false:

(i)Increase in Total Product always indicates that there are increase returns to a factor.

(ii) Marginal Revenue is always the price at which the last unit of commodity is sold.

(iii)When these are diminishing returns to a factor Marginal and Total Product both always fall.

• 2)

Explain the law of variable proportions through the behaviour of total and marginal product. Give reasons.

• 3)

State the different phases of changes in Total Product and Marginal Product in the law of variable proportions.Also, show the same in a single diagram.

• 4)

Explain with the help of a numerical example different phases in the Law of Variable Proportions

• 5)

Distinguish between (i) Fixed Cost and Variable Cost.giving examples and (i)Average Cost and Marginal Cost giving an example.

#### 12th CBSE Introductory Microeconomics and Macroeconomics - Theory of Consumer Behaviour Five Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

A consumer buys 8 units of a good at a price of Rs.7 per unit.When price rises to Rs.8 per unit, he buys 7 units.Calculate price elasticity of demand through the expenditure approach.Comment upon the shape of demand curve based on this information.

• 2)

When the price of a commodity falls by Rs.2 per unit.Its quantity demanded increases by 10 units.Its price elasticity of demand is (-) 1.Calculate its quantity demanded at the price before change which was Rs.10 per unit.

• 3)

Quantity demanded of a commodity rises by 6 units when its price falls by Rs.1 per unit.Its price elasticity of demand is (-) 1.If the price before the change was Rs.20 per unit, calculate quantity demanded at this price.

• 4)

How is equilibrium of the consumer affected when $MU_{ M }$ happens to rise, and ${ P }_{ X }$ is constant?

• 5)

Explain the concept of Marginal Rate of Substitution (MRS) by giving an example.What happens to MRS when consumer moves downwards along the indifference curve?Give reasons for your answer.

#### 12th CBSE Introductory Microeconomics and Macroeconomics - Introductory Microeconomics Five Mark Question Paper - by Mita Das - Mysore - View & Read

• 1)

Distinguish between microeconomics and macroeconomics.

• 2)

Demand for electricity has 'increased'. however, supply cannot be increased due to lack of resources. Explain how, in any two ways demand for electricity can be decreased

• 3)

How are decision taken by consumer and producers in a market coordinated?

• 4)

Unemployment is reduced due to the measures taken by the government. State its economic value in the content of Production possibilities Frontier.

• 5)

What is the slope of PPC? What does is show?

#### 12th Standard CBSE Market Equilibrium Model Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

What is the effect of excess supply on market price?

• 2)

Who has developed the FAD Theory?

• 3)

When does the normal price determine?

• 4)

What will the effect be on equilibrium price due to more decrease in demand than supply?

• 5)

When demand decreases and supply is perfectly inelastic, what will the effect on equilibrium price?

#### 12th CBSE Macroeconomics Unit 10 Open Economy Macroeconomics Model Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

Market, where the national currencies are traded for one another, is known as ___________

• 2)

Hybrid in management of fixed and flexible exchange rate is known as__________

• 3)

When there is unfavorable balance of trade?

• 4)

The deficit in the trade balance is Rs. 300 crores. The value of exports is Rs.500 crores. What is the value of import be?

• 5)

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:

#### 12th CBSE Macroeconomics Government Budget and the Economy Model Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as

• 2)

Which of the following is the components of a budget?

• 3)

The amount collected by the government as taxes and duties is known as_________

• 4)

Primary deficit in a government budget is:

• 5)

Direct tax is called direct because it is collected directly from:

#### 12th Standard CBSE Macroeconomics Income Determination Model Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

According to classical economists, real wage rate is______to the Marginal Productive of Labour.

• 2)

What will be APC when APS=0?

• 3)

If the income is Rs 100 crores and consumption is Rs 80 crores, what will be the APS?

• 4)

If the income is Rs 400 crores and consumption is Rs 250 crores, what will be the APC?

• 5)

Who did develop the concept of multiplier at first?

#### 12th Standard CBSE Macroeconomics Unit 7 Money and Banking Model Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

Money is mean not a............... .

• 2)

What type of demand is the demand for money?

• 3)

Which of the following is the feature of money?

• 4)

Which of the following is the narrow measure of money supply?

• 5)

Money Supply in India is based on.................... .

#### 12th Standard CBSE National Income Accounting Sample Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

What is the main objective of National Income Accounting?

• 2)

Which of the given accounting year is followed in India?

• 3)

${ NDP }_{ FC }=$

• 4)

If the private income is Rs 200 crores, the corporation tax and undistributed profit is Rs 25 crores, what will the personal income be?

• 5)

If the personal income is Rs 1,000 and the income tax is 10 percent, calculate Disposable Income.

#### 12th CBSE Introductory Macroeconomics Sample Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

What is known as the study of individual units?

• 2)

Study of aggregates is known as ________.

• 3)

When was the famous book of Prof. Keynes published?

• 4)

Who is the father of modern macroeconomics?

• 5)

Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?

#### 12th CBSE Microeconomics Unit 4 The Theory of the Firm under Perfect Competition Important Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

Producing maximum with minimum cost is known as ___________.

• 2)

In the situation of producers equilibrium, MR is __________ to MC.

• 3)

Which among the following is the method of working out producer's equilibrium?

• 4)

From where can we define the slope of the MR curve?

• 5)

Which among the following is the cause of extension and contraction in supply?

#### 12th Standard CBSE Microeconomics Unit 3 Production and Cost Important Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

Which among the following is the factor of production?

• 2)

Total Product (TP)=

• 3)

Marginal product (MP) =

• 4)

Returns to scale operates in the --------------- run.

• 5)

Returns to a factor operates in------------

#### 12th CBSE Microeconomics Unit 2 Theory of Consumer Behaviour Important Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

Getting maximum satisfaction by consumer with his given income is known as_______.

• 2)

Slope of budget line is:

• 3)

What is the slope of indifference curve?

• 4)

With the increase in price, total expenditure increases and with the fall in price, total expenditure also falls.What will be the elasticity of demand?

• 5)

Price elasticity of demand is 0.5 and the percentage change in price is 4. What will be the percentage change in quantity demanded?

#### 12th Standard CBSE Microeconomics Important Question Paper - by Roopa Srinivas - Vadodara - View & Read

• 1)

What is the effect of excess demand on market price?

• 2)

Among whom does the competition arise due to excess demand?

• 3)

What is the relationship between demand and supply in the controlled prices?

• 4)

When does the normal price determine?

• 5)

Which of the following is an economic activity?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 10 - by Bala - View & Read

• 1)

Which of the given accounting year is followed in India?

• 2)

Which of the following is the method of measuring National Income?

• 3)

Why are the intermediate goods not included in the National Income while measuring National Income?

• 4)

Which of the following is the feature of money?

• 5)

What is the function of money?

#### 12th Introductory Microeconomics And Macroeconomics Term Test - by Bala - View & Read

• 1)

What is the relationship between demand and supply in the controlled prices?

• 2)

What is the relationship between demand and supply in the support price process?

• 3)

Who has developed the FAD theory?

• 4)

The main cause of economic problems is ________.

• 5)

Economics is a ______ science.

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 9 - by Bala - View & Read

• 1)

Which of the following is a type of imperfectly competitive market?

• 2)

Supernormal profits imply

• 3)

What is the profit at the 'break-even point'?

• 4)

When different prices are charged for the same commodity,it is known as------------------

• 5)

In which market, a firm is a price taker?

#### Market Equlibium - Important Questions Model Paper In 12th Introductory Microeconomics And Macroeconomics - by Bala - View & Read

• 1)

What is the effect of excess demand on market price?

• 2)

Among whom does the competition arise due to excess demand?

• 3)

What is the relationship between demand and supply in the support price process

• 4)

When does the normal price determine?

• 5)

When demand decreases and supply is perfectly inelastic, what will the effect on equilibrium price?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 1 - by Bala - View & Read

• 1)

Market, where the national currencies are traded for one another, is known as ___________

• 2)

What is the cause of devaluation of any country's currency?

• 3)

Hybrid in management of fixed and flexible exchange rate is known as__________

• 4)

How many accounts of balance of payment are there?

• 5)

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:

#### Government Budget And The Economy - Important Questions Model Paper In 12th Introductory Microeconomics And Macroeconomics - by Bala - View & Read

• 1)

An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as

• 2)

Fiscal deficit is the difference between the government's total expenditure and its total receipts excluding_________

• 3)

What is the annual statement of government's fiscal expenditure known?

• 4)

The amount collected by the government in the form of interest, fees and dividends is known as ___________

• 5)

Direct tax is called direct because it is collected directly from:

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 8 - by Bala - View & Read

• 1)

What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?

• 2)

What will be APC when APS=0?

• 3)

If the income is Rs 400 crores and consumption is Rs 250 crores, what will be the APC?

• 4)

Which is the measure of correcting deflationary gap?

• 5)

If MPC=1, the value of multiplier is:

#### Money And Banking - Important Questions Model Paper In 12th Introductory Microeconomics And Macroeconomics - by Bala - View & Read

• 1)

What is the defect of barter system?

• 2)

Which of the following is the feature of money?

• 3)

Which of the following is the function of a commercial bank?

• 4)

Which is the most liquid measure of money supply?

• 5)

Which of the following is the function of a Central bank?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 7 - by Bala - View & Read

• 1)

What is the main objective of National Income Accounting?

• 2)

${ GDP }_{ MP }$

• 3)

${ NNP }_{ MP }=$

• 4)

• 5)

Which method of National Income Accounting is developed by UNO?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 6 - by Bala - View & Read

• 1)

Producing maximum with minimum cost is known as ___________.

• 2)

In the situation of producers equilibrium, MR is __________ to MC.

• 3)

From where does the MC curve cuts the MR curve in the situation of equilibrium?

• 4)

Which among the following is the method of working out producer's equilibrium?

• 5)

Which among the following is the cause of extension and contraction in supply?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 5 - by Bala - View & Read

• 1)

Which among the following is the factor of production?

• 2)

Does the Average Product is zero,Total Product will be-----------

• 3)

Which among the following is the type of Fixed Cost in the short-run?

• 4)

Average Cost (AC)=

• 5)

why is the Average Cost curve $\cup -$shaped?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 4 - by Bala - View & Read

• 1)

Want satisfying power of a commodity is known as________________.

• 2)

Slope of budget line is:

• 3)

In the consumer's equilibrium, the budget line ________ the indifference curve.

• 4)

Goods whose demand decreases with the increase in income?

• 5)

If Marginal Rate of Substitution is increasing throughout, the indifference curve will be:

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 3 - by Bala - View & Read

• 1)

What is known as the study of individual units?

• 2)

What are the methods of economic analysis?

• 3)

Are micro and macroeconomics dependent on each other?

• 4)

What is the name of the book written by J.M. Keynes?

• 5)

When was the famous book of Prof. Keynes published?

#### 12th Introductory Microeconomics And Macroeconomics Model Question Paper 2 - by Bala - View & Read

• 1)

What is the effect of excess demand on market price?

• 2)

What is the effect of excess supply on market price?

• 3)

Who has developed the FAD theory?

• 4)

What is called the increased shortage of goods above the determined price through rationing?

• 5)

When demand decrease and supply is perfectly inelastic, what will the effect on equilibrium price?

#### CBSEStudy Material - Sample Question Papers with Solutions for Class 12 Session 2020 - 2021

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