CBSE Class 12 Economics Question Paper 2011 (1)

CBSE Economics Question Paper for Class 12 CBSE exams for CBSE Students. Based on CBSE and CCE guidelines. The students should practice these Question Papers to gain perfection which will help him to get more marks in CBSE examination. Please refer to more CBSE Class 12 question papers in other links. The CBSE Question papers are prepared based on trend in past examinations and expected questions in CBSE exams. Its always recommended by CBSE to practice the papers released by CBSE to get better exams in CBSE exams. CBSE Last Year Question Papers for class 12 for final/ term/ SA1/ SA2 Examinations conducted by Central Board of Secondary Education for all CBSE affiliated schools in India and abroad. Please refer to more CBSE Class XII sample papers, question papers, HOTs etc in other links.


General Instructions:

(i) All questions in both the sections are compulsory.

(ii) Marks for questions are indicated against each.

(iii) Question Nos. 1 -5 and 17 - 21 are very short answer questions carrying 1mark each. They are required to be answered in one sentence each.

(iv) Question Nos. 6 - 10 and 22 - 26 are short answer questions carrying 3 marks each. Answer to them should normally not exceed 60 words each.

(v) Question Nos. 11 - 13 and 27 - 29 are also short answer questions carrying 4 marks each. Answer to them should normally not exceed 70 words each.

(vi) Question Nos. 14 - 16 and 30 - 32 are long answer questions carrying 6 marks each. Answer to them should normally not exceed 100 words each.

(vii) Answers should be brief and to the point and the above word limits should be adhered to as far as possible.


1. What is a market economy? 

2. When is a firm called 'price-taker' ? 

3. Define budget set. 

4. What is meant by 'increase' in supply? 

5. Define supply. 

6. Why is a production possibilities curve concave? Explain. 

7. 8 units of a good are demanded at a price of Rs. 7 per unit. Price elasticity of demand is (-)1. How many units will be demanded if the price rises to Rs. 8 per unit? Use expenditure approach of price elasticity of demand to answer this question.

8. Giving examples, explain the meaning of cost in economics. 

9. Draw average revenue and marginal revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain.

10. Explain the implication of 'freedom of entry and exit to the firms' under perfect competition.

11. A consumer consumes only two goods X and Y. State and explain the conditions of consumer's equilibrium with the help of utility analysis. 

12. Explain how the demand for a good is affected by the prices of its related goods. Give examples. 

13. Define 'Market-supply'. What is the effect on the supply of a good when Government imposes a tax on the production of that good? Explain.


14. What is nominal gross domestic product ? 

15. Define flow variables.

16. Define cash reserve ratio. 

17. Define money supply.

18. Define foreign exchange rate. 

19. State the components of capital account of balance of payments. 

20. Explain how 'distribution of gross domestic product' is a limitation in taking gross domestic product as an index of welfare. 

21. Given that national income is Rs.80 crore and consumption expenditure Rs.64 crore, find out average propensity to save. When income rises to Rs.100 crore and consumption expenditure to Rs.78 crore, what will be the average propensity to consume and the marginal propensity to consume? 

22. Explain the relationship between investment multiplier and marginal propensity to consume.

23. From the following data about a Government budget, find out (a) Revenue deficit, (b) Fiscal deficit and (c) Primary deficit: (Rs. Arab)

     (i) Capital receipts net of borrowings 95

     (ii) Revenue expenditure 100

     (iii) Interest payments 10

     (iv) Revenue receipts 80

     (v) Capital expenditure

Please refer to attached file for CBSE Class 12 Economics Question Paper 2011 (1)

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