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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 fivequestions 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]

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 possibil-

ity 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 fromperformance budget ? [4]c) What is 'Fiscal policy ? Discuss objectives of fiscal policy. [6]

Q.7.a) Differentiate between balance of payment and balance of tradeand 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 equi-librium and why? [4]

c) Explain market equilibrium with the help of suitable diagramand 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 40units. [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 lastcurve ? 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]

MODEL PAPER ISC (Class 12th)

Time 3 Hrs. Subject : ECONOMICS Max Marks-100

(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.

Tips for Class XII ISC ECONOMICS EXAM

Mrs. H. KukrejaM.A. (Eco.) B.Ed. NET

Rs. in Crores1. Compensation of employees 8002. Govt final consumption expenditure 10003. Depreciation 5004. Private final consumption expenditure. 15005. Net exports -206. Net domestic fixed capital formation 4007. Net factor income from abroad 30

8. Subsidies 2009. Closing stock 5010. Mixed income of self employed 12011. Net indirect tax 11012. Opening stock 200