Bihar Board Model Paper Economics Class XII (Set-I)

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Bihar Board Model Paper

Class XII

Subject – Economics

Time: 3 Hours + 15 Min (Extra)                     Total Marks : 100

General Instruction:

(i). All Question are compulsory.
(ii). There is no negative marking for any wrong answer.
(iii). Questions are in two sections. Section – I (40 marks), Section – II (60 marks).
(iv). There are internal options is some of the long answer type questions. In such questions you have to answer any one of the alternative.
(v). Answer should be in your own language.
(vi). No electronic gadgets like calculator, call phone, pager are allowed during exam.
(vii). The answer of objective type question is to be given on supplied OMR sheet by completely darking the
appropriate answer option. For example if answer is (c) the you should fill it as shown by blue/black pen.

From Question No. 1 to 34 there is one correct answer. In each question you have to mark that correct option from the given options.                              34 × 1 = 34

1. Which one is true?
(a) GNP = GDP + Depreciation                      (b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation                       (c) GNP = NNP – Depreciation

Ans : (C)

2. Which one of the following is included in flow?
(a) Consumption        (b) Investment         (c) income             (d) All the above
Ans : (d)

3. Price of commodity is determined at a point where-
(a) allemande exceeds         (b) Supply exceeds         
(c) demand equals supply    (c) None of these

Ans : (c)

5- For every market which condition has to be fulfilled for firm's equilibrium?)
(A) AR = MC                                          (B) MR = MC
(C) Me should cut MR from below        (D) both b and

Ans : (d)

6- In which market AR = MR
(A) monopoly                         (B) monopolistic competition
(C) both a and b                    (D) Perfect competition

Ans :  (d)

7- With the increases in Production the difference between total fixed cost:)
(A) remains constant             (B) increases
(C) decreases                         (D) both increase and decreases

Ans : (b)

8- If the price of the goods rises sy 40% and Supply increases by only 15% the supply of goods will be:
(A) Higher elastic                   (B) Elastic
(C) Inelastic                           (D) Perfectly inelastic

Ans : (c)

9- Which of the following function Shows the laus of supply?
(A) S = f (P)      (B) S = f (1/P)          (C) S = f (Q)           (D) None of these

Ans : (a)

10- The basic reason of operating the law of diminishing return is:
(A) Scar city of factors              (B) Imperfect substitution
(C) both a above                       (D) None of the above

Ans : (c)

11- Which of the following factor affects elasticity of demand?
(A) Nature of goods                  (B) Price level
(C) Income level                        (D) All the above

Ans : (a)

12- Goods, which can alternatively be used wer called-
(A) Complementary goosls         (B) Substitutes
(C) Comforts                              (D) none of these

Ans : (b)

13- Who give the cardinal concept of utility?
(A) marchall        (B) Pisou          (C) Hicks             (D) Samuelson

Ans : (a)

14- In which System a co-existence both public and Private Sectors is founded?)
(A) Capitalism      (B) Socialism     (C) Mixed economy      (D) none

Ans : (c)

15- Which of the following is studied under macro Economics
(A) National income               (B) Full employment
(C) Total Production               (D) All the above

Ans : (d)

16-    Which is included in indirect tax?
(A)   excise duty     (B) Sales tax       (C) both a and b      (D) wealth tax

Ans : (c)

17-    Credit money is increased when CRR :
(A)    Falls                           (B)   Rises
(C)   Both and b Possible    (D)  None of the above

Ans : (a)

18-    Which is the Central Bank in India?
(A)   Reserve Bank of India                   (B)   State Bank of India
(C)   Central Bank of India                    (D)  Bank of India

Ans : (a)

19-    Money is what money does who said it?
(A)   hartley withors    (B) Hawtrey  (C) Prif Thomas    (D) Keynes

Ans : (a)

20-    Which is a monetary measure to be adopted in correcting inflationary gap?
(A) increases in Bank Rate    (B) Selling of Securities in open market
(C) increase in Cash Reserve Ration    (D) all of above

Ans : (d)

21-    If income equilibrium level in the economy is determined at the level before foll employment it is known as the state of
(A)   deficit demand                    (B)   Surplus demand
(C)   Partial demand                     (D)  None of these

Ans : (a)

22-    The value of MPC is:
(A)    1                  (B) 0               (C) greater than 0 but less than 1                (D) α

Ans : (c)

23-    Increases in aggregate demand of equilibrium level of income and output causes increase in:
(A)   Employment               (B)   Pridnchian              (C) Income           (D)  All the above

Ans : (d)

24-    On which factor keynesion theory of employment depends?
(A)   Effective demand                  (B)   Supply
(C)   Production Efficiency            (D)  None of these

Ans : (a)

25-    Which service is included in Tertiary Sector?
(A)    Mining          (B)  Constriction        (C) Communication       (D) Animal husbandry

Ans : (c)

II.    In the following questions (26-30) there are two Assertion. Assertion (A) follows Reasoning (R). You have to go through these Reasoning and mark you answer from the given options.

(A)  Both A and R are true and R is the correct explanation for A.
(B)  Both A and R are true but R is not the correct explanation for A.
(C)  A is true but R is false   
(D)  A is false but R is true.

26-    Statement -I : Equilibrium is a state in which there is a tendency to change.
         Statement-II Equilibrium is a state in which there is no tendency to change.

Ans : (d)

27-    Statement -I : Direct tax is the tax irnich final born of the tax falls on the person who pays It con rot be shifted on others.
         Statement-II Direct tax is the tax irnich final born of the tax falls on the person who pays It con rot be shifted on others.

Ans : (c)

28-    Statement -I : Average cost (AC) = Total cost(TC)/out put
         Statement-II The cost per unit of Production is known as Average cost.

Ans : (a)

29-    Statement -I : Demand Schedule expresses reaction between fris of goods and quantity Purchased at there pries.
         Statement-II when demand Schedule is represents on a graph there it is called Demand Curve.

Ans : (b)

30-    Statement -I : TU = ∑ (MU)
         Statement-II Total utility is the  sum of marginal utilities obtained from different units of consumption.

Ans : (a)

III.    In the following question (31 to 34) there are two column. You have to match Column-I to Column-II correctly.
              List-I                                           List-II

31.    Inflationary Gap                       (A) employment
32.    Effective demand                    (B) Banking Reform
33.    Narasimham Committee           (C) Reduction in Bank rate
34.    Defect demand                        (D) Reduction in Public  expenditure

Ans : 31(d), 32(a), 33(b), 34(c)

IV.There is a paragraph for question. You have to understand the paragraph and then mark your answer from given options.
     According to Marshall Price of a Commodity is deter mined by other demand and supply curves Demand curve is related to the consumer and it falls down from left to right which explains the inverse relation Ship between demand of the commodity and its price consumer trise tto buy more at sowr price on the other hand supply curve belonged to produces and it raises upnarad crrm left to right which explains the direct relationship between Supply of the Commodity and its price produces will place higher supply at higher price and viceverse so the Product tris to sell more at higher price andince vers Hence two opposite forces become operational is the market and the price it determined at the point where the demand for commodity be comes equal to supply of the commodity.
I.    Demand curve is related to the consumer which
(A)  falls down from left to right                      (B) rises upward form left to right
(C)  both a and b                                              (D) None of these

II.    Consumer tries to buy :
(A) More quantity at lower price                    (B)  less quantity at higher price
(C)  less quantity at lower price                      (D) none of these

III.    Producer will place supply at higher price
(A)  less       (B) more        (C) will not supply          (D) None of these

Ans : I(b), II(a), III(a)

Short Answer Type Questions

Question No. 1 to 10 carry 3 marks each. These questions are of short answer type.           10 × 3 = 30

1.    Due to 15% decline in price of a good, its demand gets increase from 1,000 units to 1,200 units. Calculate the
elasticity of demand by percentage method.
2.    What is money cost ?
3.    What is meant by price discrimination ?
4.    State the two basic principles of circular flow of income.
5.    Define the concept of the domestic product at market price.

6.    What is average propensity to same ?
7.    Why does the problem of choice arise ?
8.    What do you understand by substitute goods ?
9.    What is Investment ? Multiplier & give a formulae of Investment Multiplier.
10.    What is current Deposited Account ?

Long Answer Type Questions

Question No. 11 to 15 carry 6 marks each. These questions are of long answer type.         5 × 6 = 30

11.    What do you mean by Exchange Rate ? Explain the main factors which influencing Exchange Rates.)
12.    What are the objectives of Budget ?
13.    Calculate the following from the information of an economy.
        (A)    Domestic Income    (B) National Income     

Items                                                Rs. (Crores)
(i)    Rent                                                 4000
(ii)    Wage                                               8000
(iii)    Dividend                                         2000
(iv)    Interest                                           300
(v)    Undistributed profit                         200
(vi)    Mixed income                                 300
(vii)  Contribution in social security         500
(viii)  Corporate profit tax                        300
(ix)    Net factor income from abroad      1100
14.    What are the main features of perfect competition ?
15.    What are total cost, Average cost and Marginal cost ? Explain the relationship between Average cost and Marginal cost with the help of diagram.

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