» Economics : CBSE Sample Question Papers

Time allowed: 3 hours
Maxiumam marks:100

Q.1 Define production process. (1)

Q.2 Define Primary Sector. (1)

Q. 3 What is added to domestic factor income to obtain National Income? (1)

Q. 4 State the two final uses of any commodity. (1)

Q.5 Define an Economic Good. Give two examples. (2)

Q. 6 Find out Compensation of Employees: (2)

Q. 7 Explain briefly the technical interdependence among enterprises. (3)

Q. 8 Explain the relationship among production, consumption and capital formation. (3)

Q. 9 Which of the following expenditures incurred are on intermediate products and which are on final products? You must state reasons for your answer.
(i) Purchase of ticket for train journey by an individual.
(ii) Purchase of eatables by a firm.
(iii) Purchase of a car by an employer for office use by his employees. (3)

Q. 10 Calculate Net Value Added at Factor Cost. (3)

Q.11 Explain the distinction between Voluntary and Compulsary transfer of payments and give one example of each.

Q.12 What type of data do we require to measure national income at each of the three phases of circular flow of income? (3)

Q.13 Explain briefly the two ways of avoiding double counting in the measurement of national income. (3)

Q.14 Distinguish between Secondary Sector and Tertiary Sector.

Q.15 Explain briefly the steps taken in estimating national income by production method. (3)

Q.16 Define net factor income from abroad. Briefly explain its components. (1+4)

Q.17 Calculate Gross National Product at Market Price by a) income method and b) expenditure method. (2+3)

Q.18 How is National Income originating in agriculture and allied activities sector estimated in India? Explain. (5)

SECTION - B

Q.19 Give the meaning of Economising of resources. (1)

Q.20 If disposable income is Rs. 1000/- and Consumption Expenditure is Rs. 750, find out Average Propensity to Save. (1)

Q.21 In which method of constructing an economic theory do we start with facts? (1)

Q.22 If the value of marginal propensity to save is 0.25, what is the value of multiplier. (1)

Q.23 What is the relationship between income of a consumer and demand for a good that he consumes? (1)

Q. 24 Any quantity of a factor of production is available in the market at a given price. Show clearly the economic rent accrueing to that factor of production on a diagram only. (2)

Q. 25 Explain the problem of efficiency in the use of resources. (3)

Q. 26 The market demand for a good at Rs. 4 Per Unit is 100 units. The price rises and as a result its market demand falls to 75 units. Find out the new price if the price elacticity of demand of that good is (-1). (3)

Q. 27 Total fixed cost is Rs. 90. Complete the following table: (3)

Q. 28 Explain the relationship between Marginal Product and Total Product. (3)

Q.29 Explain with the help of a diagram the determination of price of a commodity under Perfect Competition. (3)

Q. 30 Explain how the supply of a commodity is affected by the prices of other related commodities. (3)

Q. 31 How does the availability of close substitutes of a good affect the price elasticity of demand of that good? Explain. (3)

Q. 32 Explain any three factors that determine demand for a factor of production. (3)

Q. 33 Explain the concept of inflationary gap. Use diagram. (3)

Q. 34 Explain the characteristics of a perfectly competitive market. (5)

Q. 35 What is ‘net interest’. Explain briefly the loanable funds theory of interest. Use diagram. (2+3)

Q.36 What is ‘deficient demand” in macro economics? How do the following affect it : (1+2+2)
a) Change in Cash Reserve Ratio
b) Change in Tax rates.

Time allowed: 3 hours
Maxiumam marks:100

Q1 Why are exports included in the estimation of national income ? (1 mark)

Q2 Give two examples of non-departmental government enterprises in India.
(1 mark)

Q3 Name any two sub-sectors of the Indian Economy for which production method is used for estimating their contribution to national income. (1mark)

Q4 Name any two subsectors of the tertiary sectors in India. (1 mark)

Q5 Distinguish between current transfers and capital transfers. (2 marks)

Q6 Define gross domestic capital formation. Are purchases and sales of second-hand assets in the domestic market included in it? Give reasons in brief. (1+1 marks)

Q7 What does intermediate consumption of general government include?
(3 marks )

Q8 Explain with the help of an example the process based division of labour. (3 marks)

Q9 How is factor income generated in the production process? Explain.(3 marks)

Q10 Distinguish between national income at constant prices and national income at current prices.Explain briefly. (3 marks)

Q11 From the following data calculate value added by firm X and by firm Y.

Q12 Distinguish between intermediate goods and capital goods.Give two examples of each. (3 marks)

Q13 Calculate gross national product at factor cost from the following data :

Q14 How is the net value added by registered manufacturing sector estimated in India? (3 marks)

Q15 Calculate national income from the following data :

Q16 Define domestic factor income. Describe briefly its three components. (1+4 marks)

Q17 Explain briefly any five precautions to be taken while estimating national income by income method.(5 marks)

Q18 Explain the value-added method of estimating national income. (5 marks)

Q19 Define marginal propensity to consume. (1 mark)

Q20 When does a situation of deficit demand arise in an economy? (1 ,mark)

Q21 Define involuntary unemployment. (1 mark)

Q22 What is meant by aggregate supply in macroeconomics? (1 mark)

Q23 Distinguish between average revenue and marginal revenue. (2 marks)

Q24 Explain any one factor that affects the demand for a factor of production by a firm under perfect competition. (2 marks)

Q25 State the six factors that affect the market supply of a commodity.(3 marks)

Q26 What can be the effects of an increase in both the market demand and market supply of a commodity on interest price? Explain. (3 marks)

Q27 What can you say about economic rent when supply of a factor of production is (i) perfectly elastic and (ii) perfectly inelastic. Explain briefly.(3 marks)

Q28 How is the demand of a commodity affected by increase in the prices of other commodities?(3 marks)

Q29 Explain any three factors on which the price elasticity of demand for a commodity depends.(3 marks)

Q30 The following table shows the total cost of production of a firm at different levels of output. Find out the average variable cost and the marginal cost at each level of output :
Output (Units) 0 1 2 3
Total cost (Rs.) 60 100 130 150 (3 marks)

Q31 Define monopolistic competition. State its any two basic features.(1+2 marks)

Q32 With the help of a diagram explain the concept of inflationary gap.(3 marks)

Q33 State three fiscal measures to reduce aggregate demand. (3 marks)

Q34 Explain briefly any five central problems of an economy. (5 marks)

Q35 Explain the law of variable proportions with the help of a diagram.(5 marks)

Q36 Explain the loanable fund theory of interest. Use diagram. (5 marks)

Q 1. Give the meaning of domestic factor income? (1 mark)

Q 2. Define value of output? (1 mark)

Q 3. What is th meaning of capital as a factor of production? (1mark )

Q 4. What is an entrepreneur? ( 1 mark)

Q 5. Give the meanings of final goods & intermediate goods? (2 marks )

Q 6. What is meant by labour intensive and capital intensive techniques of production? (2 marks)

Q 7. Explain the concept of operating surplus? (3 marks)

Q8. Explain the concept of domestic territory? (3 marks)

Q 9. What is transfer payment? Distinguish between current transfer and capital transfers?(1+2=3 marks)

Q 10.Explain briefly the steps taken in estimating material (3 marks)

Q11.Calculate the emoluments of employees (3 marks)

Q 12.What type of data is required to measure national income at each of the three phases of its circular flow? (3 marks)

Q 13 Explain briefly the basis of classification of producing enterprises into primary, secondary and tretiary sectors? (3 marks)

Q 14.Calculate Gross Domestic Capital Formation: (3 marks)

Q 15.Explain any three precautions to be taken while estimating national income through the Expenditure Method?(3 marks)

Q 16.Why has it not been possible to measure income by each of the three methods simultaneously in India? Explain briefly giving examples. Name four sub sectors of the Indian economy where the income approach is used? (3 + 2=5 marks)

Q 17.Distinguish between an indirect tax and a subsidy. Give two examples of each . What is the impact of subsidies on factor payment?(2+2+1=5 marks)

Q 18.Calculate GDP at Market Price by (a) Production method and
(b) Income Method. (3+2=5 marks)

Section B

Q 19.What is a normative statment? (1 mark)

Q 20.What is meant by economising resource? (1 mark)

Q 21.Define monopolistic competition? (1 mark)

Q 22.When total production increases at decreasing rate what happens to the marginal product. (1 mark)

Q 23.Give the meanings of excessive demand and deficient demand in macro-economics?(2 marks )

Q 24.State any two circumstances under which abnormal profits may arise? (2 marks)

Q 25.Explain relationship between Marginal Revenue and Average Revenue. Use diagram. (3 marks)

Q 26.State the steps involved in the construction of an economic theory? (3 marks)

Q 27.Why do households buy more of a good at a lower price? Explain.(3 marks)

Q 28.Explain any three factors affecting the supply of a good? (3 marks)

Q 29.A consumer buys 100 units of good X at Rs. 5/- per unit. The price elasticity of demand for the good is 2. At what price will he be willing to buy 140 units of good X ? (3 marks)

Q 30.What can be the effects on the equlibrium price of a commodity when its demand & supply curves both shift to the right simultaneously? Show any one of these effects on a diagram. (11/2 + 11/2 marks)

Q 31.How do changes in bank rates affect availability of credit? Explain.(3 marks)

Q 32.Explain the three features of monopoly market? (3 marks)

Q 33.Explain briefly the Loanable Fund Theory of Interest? (3 marks)

Q 34.Explain the theory of determination of income and employment with the help of aggregate demand & aggregate supply curves. (5 marks)

Q 35.Explain five factors determining price elasticity of demand? (5 marks)

Q 36.Explain five factors causing scarcity of labour to an industry? (5 marks)

Time allowed :3 hours
Maximum Marks: 100

Note:

(i) All questions are compulsory.
(ii) Marks allotted to each question are indicated against it.
(iii) Question numbers 1-14 and 19-22 are very short-answer questions.They should be answered in one sentence each.
(iv) Question numbers 5-6 and 23-24 are very short-answer questions.Answer to these should not normally exceed 30 words each.
(v) Question numbers 7-15 and 25-33 are short-answer questions.Answer to these should not normally exceed 60 words each.
(vi) Question numbers 16-18 and 34-36 are very long-answer questions.Answer to these should not normally exceed 100 words each.
(vii) The word limit is not applicable to numerical questions.

Section A

Q 1 When will the rate of increase in real national income of a country not lead to the same rate of increase in the real per - capita income ? (1 mark)

Q 2 Name the two consuming sectors in the domestic economy. (1 mark)

Q 3 Define ‘gross value added’. (1 mark)

Q 4 Why do exports form a part of national income? (1 mark)

Q 5 Why are the following not included in national income? (2 marks)

Q 6 Distinguish between domestic factor income and national income.(2 marks)

Q 7 How is domestic territory of a country different from its political frontiers? (3 marks)

Q 8 Explain with the help of an example, the economic interdependence of enterprises in modern economics. (3 marks)

Q 9 State the three components of change in stocks at domestic level.(1+2 marks)

Q 10. Do sale and purchase of second-hand physical assets affect domestic fixed capital formation? Explain. ( 3 marks)

Q 11 Explain the component of net factor income from abroad. (2+1 marks)

Q 12. Calculate operating surplus from the following data :

Q 13 Explain the basis of clarifying the producing enterprises of an economy into primary, secondary and teetiany sectors. (3 marks)

Q 14. Calculate gross national product at market price from the following data; ( 2+1 mark)

Q 15. Estimate national income from the following data - (Rs. in crore)( 3 mark)

Q 16. How is the prirate final consumption expenditure measured? (5 marks)

Q 17. Explain the income method of calculating national income.

Q 17 From the following data calculate:
(a) Gross domestic product at market price by income method, and
(b) Net national product at factor cost by expenditure method. ( 2+3 marks)

Q 18. Which organisation estimates the national income in India? Name the subsectors of the Indian economy for which income method is used for estimating their contribution to the domestic product. (1+4 marks)

Q 19 Define normal profits. (1mark)

Q 20 When will the transfer earnings of a factor of production be zero?(1 mark)

Q 21 Define marginal revenue. (1 mark)

Q 22 What is meant by involuntary unemployment? (1 mark)

Q 23 Explain the problem of full utilisation of resources in an economy.(2 marks)

Q 24 How is the supply of a commodity affected by the prices of other commodities. (2 marks)

Q 25 State the economic problems relating to the allocation of resources.(3 marks)

Q 26 How do changes in the income of the buyer of a commodity affect his demand for that commodity. (1+2 marks)

Q 27 The Coefficient of price elasticity of demand of a commodity is 0.5. When its price is Rs. 10 per unit, its quantity demanded is 40 units. If the price falls to Rs. 5 per unit, how much will be its quantity demanded?

Price Quantity

Initial 10 40
Later 5 x. (2+1 marks)

Q 28 Changes in both demand and supply may or may not affect its equilibrium price. Explain. (3 marks)

Q 29 Explain the relationship between marginal cost and average variable cost with the hlep of a diagram. (3 marks)

Q 30 How do changes in maeginal revenue affect total revenue? (2+1 marks)

Q 31 Define monopolistic competition. Can a seller in such a market influence the price? Explain. ( 2+1 marks)

Q 32 What affects the demand for a factor of production by a firm under conditions of perfect competition? (3 marks)

Q 33 State and explain the law of variable proportion with the help of a diagram. (3 marks)

Q 34. Briefly explain the main features of Ricardian theory of rent. How is the modern approach to rent different from it? (2+3 marks)

Q 35. Explain the various monetary measures by which excess demand in an economy can be checked. (4+1 marks)

Q1) Give two examples of non-factor inputs. (1 mark)

Q2) Define gross domestic capital formation. (1 mark)

Q3) Define subsistence production units. (1 mark)

Q4) If domestic factor income is Rs.1000 crores and net factor income from abroad is Rs.(-) 5 crores, how much will be national income. (1 mark)

Q5) Find GDP_fe from the following data :
(Rs. Crores)
(i) Value of output 500
(ii) Consumption of fixed capital 20
(iii) Value of intermediate consumption 200
(iv) Net indirect taxes 20 (2 marks)

Q6) Are exports of goods and services a part of domestic product? Give reasons in support of your answer. (2 marks)

Q7) How is final consumption expenditure of the government estimated?
(3 marks)

Q8) Why are the following not included in the estimation of national income: (3 marks)

Q9) How is income generated in the production process? (3 marks)

Q10) What is private income? How does it differ from personal income?(3 marks)

Q11) Find operating surplus from the following data.
(Rs. in crores)
(i) Gross value added at factor cost 100
(ii) Wage and salaries 30
(iii) Consumption of fixed capital 10
(iv) Employers’ contribution to social security 3
scheme
(v) Employees subscription to provident fund. (3 marks)

Q12) Explain the concept of ‘mixed income of self employed’. Give suitable example. (3 marks)

Q13) Define capital goods. Give an example each of durable capital good and non-durable capital good. (3 marks)

Q14) Distinguish between product based and process based division of labour. (3 marks)

Q15) Which three types of enterprises are included in producer household sector? (3 marks)

Q16) Calculate national income by income and expenditure methods from the following data.

Q17) Explain the value-added method of estimating national income.(5 marks)

Q18) Explain the methodology followed in India for estimating national income originating in the agricultural sector. (5 marks)

Section B

Q19) Define windfall profits. (1 mark)

Q20) Define marginal revenue product. (1 mark)

Q21) What will be the value of the multiplies if marginal propensity to save is 0.4. (1 mark)

Q22) What is bank rate? (1 mark)

Q23) What is the income effect of a fall in the price of a commodity on its demand. (3 marks)

Q24) Distinguish between nominal wages and real wages. (3 marks)

Q25) Define price elasticity of demand. State any one method of measuring it. (2 +1 = 3 marks)

Q26) State any two factors that affect a firm’s supply of a commodity. How do they affect it? (2 +1 = 3 marks)

Q27) Complete the following table? (3 marks)

Q28) Explain the affect of an increase in both demand and supply of a commodity on its equilibrium price. (3 marks)

Q29) Briefly explain the modern theory of rent. (3 marks)

Q30) Define monopolistic competition. State its basic features.(2+1=3 marks)

Q31) Distinguish between gross interest and net interest. (3 marks)

Q32) Explain the relationship between marginal products and average product. (3 marks)

Q33) Explain any two measure by which a central bank can contract bank credit. (3 marks)

Q34) Explain with the help of an illustration, the law of diminishing returns to a factor. (5 marks)

Q35) Why do central problems arises? Explain the problem of allocation of resources. (3 + 2 = 5 marks)

Q36) Explain the determination of equilibrium level of income in an economy with the help of a diagram. (5 marks)