ISC Guess Paper 2010
Class - XII
PART - I
(i) Answer all question in Part I and five questions from Part II.
(ii). All working including rough work should be done on the same sheet as, and adjacent to the rest of the answer.
(iii). The intended marks for questions or parts of questions are given in brackets . (Material to be supplied: Log tables including Trigonometric functions)
(iv). Candidates are allowed additional 15 minutes for only reading the paper. They must NOT start writing during this time.
Q1. Answer briefly each of the questions (i) to (xv). [15x2]
(i) Define macro economics.
(ii) What is product differentiation?
(iii) Define Oligopoly.
(iv) What are inferior goods?
(v) Give two exceptions to the law of demand.
(vi) Define microeconomics.
(vii) What is meant by Balance of Current Account?
(viii) What is meant by foreign exchange rate?
(ix) Define income effect.
(x) Define transfer earning?
(xi) What is fiscal deficit?
(xii) When does marginal utility become negative?
(xiii) Differentiate between money cost and real cost.
(xiv) Discuss any one importance of a budget.
(xv) State Wagner’s Law--------------- Please Go To Next Page ---------------
Answer any five question
Q2. (a) Discuss with the help of diagrams the concepts of increase of demand and extension of demand. 
(b) Describe any two methods of measurement of elasticity of demand. 
Q3. (a) Explain the properties of an indifference curve using diagrams. 
(b) State and explain the law of supply with its assumptions. Discuss two exceptions to the law of supply. 
Q4. (a) Explain with the help of a diagram, the relationship between average cost and marginal cost. 
(b) Explain two causes each of increasing returns, diminishing returns and negative returns to a variable factor. 
Q5. (a) Explain any four features of monopolistic competition. 
(b) Explain how elasticity of demand help a producer, a finance minister, a monopolist and an exporter. 
Q6. (a) Mention the components of domestic factor income. 
(b) Define differential rent. Discuss any four criticism of the Ricardian theory of rent. 
Q7. (a) Explain the Ricardian theory of international trade. 
(b) Define the terms mixed income of self-employed and operating surplus. 
Q8. (a) Describe the effect of public borrowing on an economy. 
(b) What is VAT? Discuss its merits and demerits? 
Q9. (a) Define ‘tax’. Explain four differences between direct and indirect tax. 
(b) Discuss briefly how the parliament controls budget finances.