List of participants in the two day work shop for pgt economics (kvs mumbai region)

Date:3rd

and 4th

august 2018

COURSE DIRECTOR: SHRI MAHIPAL SINGH,PRINCIPAL, KV BANDHARA.

नाम पदनाम केवि के नाम

श्रीमती गीता आर

स्नातकोत्तर विक्षक

(अथथिास्त्र)

केवि आरएचई,पुणे

श्री कैलाि वगरी बीईजी, पुणे

श्रीमती अनुपमा वतिारी भाांडुप, मुांबई

सुश्री सान्या सचदेिा आयएनएस माांडिी, गोिा

श्री वनविल कुमार एसएम लाईन कामठी

श्री अांककत कुमार एनएडी , करांजा

श्री जयमाल ससह डीआईएटी वगरीनगर, पुणे

श्री अरसिद उराडे िीएसएन नागपुर

कुमारी रािी एनडीए, िड़किासला,पुणे

श्री सांदीप अिीकर नां 1 िायुसेना कें द्र, लोहगाि,पुणे

श्रीमती वस्नग्धा वमश्रा सीएमई, पुणे

श्रीमती अनीता नवजया गणेिसिड, पुणे

श्रीमती कनक यादि एमआयआरसी,अहमदनगर

श्री पी पासिान नां 2 कुलाबा, मुांबई

श्रीमती अमृता गुवलया िायुसेना कें द्र, ठाणे

डॉ रवमम कालड़ा मानिुदथ, मुांबई

श्रीमती समता ससह नां 2 िायुसेना कें द्र, लोहगाि,पुण े

श्रीमती रीना पालीिाल कोलीिाड़ा,मुांबई

श्रीमती सीमा वमश्रा आईआईटी,पिई,मुांबई

GROUP FORMED FOR THE WORKSHOP (3RD

AUGUST 2018)

NOTE: THE TOPICS OF BOTH MICRO ECONOMICS AND MACRO ECONOMICS WILL BE DEALT WITH A STRESS ON TEECHINIQUES

USED BY THE TEACHERS IN THE CLASSES TO MAKE THE TOPICS SCORING CATERING TO THE NEEDS OFBRIGHT, AVERAGE AND

SLOW LEARNERS

2) AT THE END OF EACH TOPIC THE NUMERICALS AND ASSESMENT TOOLS ON THE SAME WILL BE DISCUSSED )

GROUP NAME OF THE PARTICIPANTS KV TOPIC

Group 1

श्री कैलाश गगरी बीईजी, पुण े Production possibility curve,marginal opportunity cost ,numeicals and methods to make schedules easy

डॉ रगमम कालड़ा मानखुर्द, मुुंबई

सुश्री सान्या सचर्ेवा आयएनएस माुंडवी, गोवा

Group 2 Consumer equilibrium and demand

श्रीमती रीना पालीवाल कोलीवाड़ा,मुुंबई

श्री सुंर्ीप अवीकर नुं 1 वायुसेना कें द्र,

लोहगाव,पुण े

श्री जयमाल ससह डीआईएटी गगरीनगर, पुण े

श्रीमती अनीता अनगजया गणेशसखड, पुण े

श्रीमती गिग्धा गमश्रा सीएमई, पुण े

Group 3 Producer behavior and supply

श्रीमती समता ससह नुं 2 वायुसेना कें द्र,

लोहगाव,पुण े

श्री अरसवर् उराडे वीएसएन नागपुर

श्री पी पासवान नुं 2 कुलाबा, मुुंबई

श्री अुंककत कुमार एनएडी , करुंजा

कुमारी राखी एनडीए, खड़कवासला,पुण े

Group 4 Forms of market ,market equilibrium

श्रीमती अमृता गुगलया वायुसेना कें द्र, ठाण े

श्रीमती कनक यार्व एमआयआरसी,अहमर्नगर

श्रीमती सीमा गमश्रा आईआईटी,पवई,मुुंबई

श्री गनगखल कुमार एसएम लाईन कामठी

श्रीमती अनुपमा गतवारी भाुंडुप, मुुंबई

GROUP FORMED FOR THE WORKSHOP (4th

AUGUST 2018)

NOTE: THE TOPICS OF BOTH MICRO ECONOMICS AND MACRO ECONOMICS WILL BE DEALT WITH A STRESS ON TEECHINIQUES

USED BY THE TEACHERS IN THE CLASSES TO MAKE THE TOPICS SCORING CATERING TO THE NEEDS OFBRIGHT, AVERAGE AND

SLOW LEARNERS

2) AT THE END OF EACH TOPIC THE NUMERICALS AND ASSESMENT TOOLS ON THE SAME WILL BE DISCUSSED )

GROUP NAME OF THE PARTICIPANTS KV TOPIC

Group 1 श्रीमती रीना पालीवाल कोलीवाड़ा,मुुंबई Measurement of national income ,easy way to teach conceptsand derivation of numericals

श्री सुंर्ीप अवीकर नुं 1 वायुसेना कें द्र,

लोहगाव,पुण े

श्री पी पासवान नुं 2 कुलाबा, मुुंबई

श्रीमती समता ससह नुं 2 वायुसेना कें द्र,

लोहगाव,पुण े

कुमारी राखी एनडीए, खड़कवासला,पुण े

Group 2 PROCESS OF CREDIT CREATION BY COMMERCIAL BANKS AND DISCUSSION OF SOME PROBABLE AND MOST LIKELY QUESTIONS ON MONEY AND BANKING ,GOVERNMENT BUDGET,

श्री कैलाश गगरी बीईजी, पुण े

श्रीमती कनक यार्व एमआयआरसी,अहमर्नगर

श्रीमती अनुपमा गतवारी भाुंडुप, मुुंबई

श्रीमती गिग्धा गमश्रा सीएमई, पुण े

Group 3 DETERMINATION OF INCOME AND EMPLOYMENT MAKING NUMERICALS AND THEORY QUESTIONS MORE EASY DISCUSSION AND INTERACTION ON THE

strategies for teaching Concept which are

considered difficult in the topic

श्री अरसवर् उराडे वीएसएन नागपुर

श्रीमती सीमा गमश्रा आईआईटी,पवई,मुुंबई

श्री जयमाल ससह डीआईएटी गगरीनगर, पुण े

सुश्री सान्या सचर्ेवा भाुंडुप, मुुंबई

Group 4 DISCUSSION ON THE STRATEGIES TO MAKE THE TOPIC OF BALANCE OF PAYMENTS AND FOREIGN EXCHANGE RATE MORE SCORING AND EASY TO THE STUDENTS ON THE BASIS OF TECHINIQUES USED BY THE PARTICIPANTS

श्रीमती अमृता गुगलया वायुसेना कें द्र, ठाण े

श्री गनगखल कुमार एसएम लाईन कामठी

डॉ रगमम कालड़ा मानखुर्द, मुुंबई

श्री अुंककत कुमार एनएडी , करुंजा

श्रीमती अनीता कनोगजया गणेशसखड, पुण े

KENDRIYA VIDYALAYA SANGATHAN MUMBAI REGION

TWO DAYS WORK SHOP FOR PGT ECONOMICS OF MUMBAI REGION

STRATEGIES TO IMPROVE THE CLASS XII RESULT 2018-19

Was held on 3rd and 4th August 2018 at Kendriya Vidyalaya Rangehills Estate under the

guidance and direction of shri.MAHIPAL SINGH ,PRINCIPAL KV BHANDARA.

REPORT ON DAY ONE (3RD AUGUST 2018)

The workshop began with an invocation to God and a welcome address by the venue director

Shri.P.S.SANGOLE (PRINCIPAL KV RHE,PUNE) followed by a briefing on the objective of the

workshop by Shri.MAHIPAL SINGH, PRINCIPAL KV BHANDARA, Director of the work shop.

The particiants were divided into groups and topics from micro economics were allotted to

them and after a brief discussion each member specifically explained the techniques adopted

by them to make the topics easy. It was an interactive session and many new ways of making

teaching learning of economics easy. Simple ways for making schedules, drawing the diagrams

were given by the course director and the participants. The course director gave tips for solving

numerical, clearing concepts for all the topics and continuously motivated the participants by

uplifting their morale. Each participant submitted a question paper with marking scheme and

blue print as suggested by the director. In the post-lunch session the participants worked on

making work-sheets with answers for each topic which could be used as a tool in class for

assessment of learning objective. The day’s proceeding was adhered to strictly on the basis of

programme drafted.

REPORT ON DAY 2(4TH AUGUST 2018)

The groups were changed and new groups were formed and the topics of macro economics

were divided. Each group was assigned a unit to explain the techniques adopted by them to

make the topics easy with stress on the slow learners. It was a brief revision of the syllabus for

the participants as well and some activities and play way methods were given by the

participants to make concepts of macro economics more comprehensive. The participants were

also given tips by the course director for calculating national income. In the post-lunch session

there was a review of the materials prepared and question papers submitted and strategy to

use the materials prepared.The work shop concluded on a positive note with an assurance to

remove the fear in the minds of the students regarding economics and achieve quantitative and

qualitative improvement of the results.

A TOTAL NUMBER OF 19 REGULAR PGTS ATTENDED THE COURSE OUT OF THE REGISTERED 23.

KENDRIYA VIDYALAYA RANGE HILLS ESTATE KHADKI PUNE-20

TWO DAY WORK SHOP FOR PGT ECONOMICS MUMBAI REGION DATE:3RD AND 4TH AUGUST 2018

SCHEDULE OF THE PROGRAMME OF THE TWO DAY WORK SHOP

TOPIC :STRATEGIES FOR IMPROVEMENT OF BOARD RESULT

NOTE: THE TOPICS OF BOTH MICRO ECONOMICS AND MACRO ECONOMICS WILL BE DEALT WITH A

STRESS ON TEECHINIQUES USED BY THE TEACHERS IN THE CLASSES TO MAKE THE TOPICS SCORING

CATERING TO THE NEEDS OFBRIGHT, AVERAGE AND SLOW LEARNERS

2) AT THE END OF EACH TOPIC THE NUMERICALS AND ASSESMENT TOOLS ON THE SAME WILL BE

DISCUSSED )

3RD August, 2018

SR NO EVENT/TOPIC TIME :FROM -TO

1 INAUGURATION 8.00 AM TO 8.30 AM

2 FORMATION OF GROUPS 8.30AMTO 8.45 AM

3

INTRODUCTION :TOPIC OF MARGINAL OPPORTUNITY COST ,PPC

8.45 AM TO 9.30AM

4 Unit 2: Consumer's Equilibrium and

Demand :

.

9.30 AM TO 10.30 AM

TEA-BREAK 10.30AM TO 11.00AM

5 Unit 3: Producer Behaviour and Supply :

11.AM TO 12.30 PM

6 LUNCH BREAK 12.30PM TO 1.15 PM

7 Unit 4: Forms of Market and Price

Determination under Perfect Competition

with simple applications:- DISCUSSION OF SOME PROBABLE AND MOST LIKELY QUESTIONS ON FORMS OF MARKET WITH A PERSPECTIVE FOR SLOW LEARNERS

1.15.PM TO 2.00PM

8 Preparing strategies for making difficult topics(from the point of view of the students ) easy to comprehend

2,00PM TO2.30 PM

9 PREPERATION OF WORK SHEETS, ASSESMENT TOOLS NUMERICALS ON THE TOPICS COVERED DURING THE DAY BY THE GROUPS ON TOPICS ALLOTTED

2.30 PM T0 4.00PM

4TH AUGUST 2018

SR NO TOPIC TIME FROM-T0

1 MEASUREMENT OF NATIONAL INCOME- MAKING METHODS OF CALCULATING NATIONAL INCOME EASY ON THE BASIS OF TECHINIQUES USED BY THE PARTICIPANTS

8.00AM T0 9.30 AM

2 PROCESS OF CREDIT CREATION BY COMMERCIAL BANKS AND DISCUSSION OF SOME PROBABLE AND MOST LIKELY QUESTIONS ON MONEY AND BANKING ,GOVERNMENT BUDGET

9.30AM TO 10.30 AM

3 TEA –BREAK 10.30TO 11.00 AM

4 DETERMINATION OF INCOME AND EMPLOYMENT MAKING NUMERICALS AND THEORY QUESTIONS MORE EASY DISCUSSION AND INTERACTION ON THE

strategies for teaching Concept which are considered difficult in the topic

11.AM TO 12..00PM

5 TIPS TO IMPROVE RESULTS BY THE PARTICIPANTS HAVING GIVEN HIGH PERFORMANCE INDEX IN THE LAST SESSION

12.00PM TO 12.30 PM

6 LUNCH- BREAK 12.30-PM TO 1.15 PM

7 DISCUSSION ON THE STRATEGIES TO MAKE THE TOPIC OF BALANCE OF PAYMENTS AND FOREIGN EXCHANGE RATE MORE SCORING AND EASY TO THE STUDENTS ON THE BASIS OF TECHINIQUES USED BY THE PARTICIPANTS

1.15 PM TO 2.00PM

8 DISCUSSING THE STRATEGIES FOR IMPROVING QUALITY OF THE RESULT and LISTING THEM OUT FOR FURTHER ACTION

2.00PM TO 2.30 PM

9 CONSOLIDATION OF WORK SHEETS ,NUMERICALS AND QUESTION PAPERS PREPARED IN THE TWO DAY SESSION AND CONCLUDING REMARKS

2.30 PM TO 4.00PM

Blue Print

Sample Paper

Class-XII

Economics

Theory M: 80 Duration: 3 Hours

Unit Name of unit

Very

short

answer

MCQ

Short

answer

3 marks

Short

answer

4 marks

Long

answer

6

marks

Total

1 Introduction 1 3(1) 4

2 Consumer’s Equilibrium and demand 3(1) 4(1) 6(1) 13

3 Producer’s behavior and supply 1(3) 4(1) 6(1) 13

4

Forms of market and price

determination under perfect

competition with simple applications

4(1) 6(1) 10

5 National income and related

aggregates 1(1) 3(1) 6(1) 10

6 Money and Banking 6(1) 6

7 Determination of income and

employment 1(1) 3(1) 4(2) 12

8 Government Budget and economy 6(1) 6

9 Balance of payments 1(2) 4(1) 6

Total 1*8=8 3*4=12 4*6=24 6*6=36 80

Sample Question Paper

Class – XII M. Marks – 80

Subject – Economics Time – 3 Hours

General Instructions

i. All questions are compulsory

ii. Marks for each questions are indicate against each.

iii. Question No. 1-4 AND 13-16 are very short answer questions which carry one mark each. They

are required to be answer in one sentence only each.

iv. Question No. 5-6 and 17-18 are short answer questions which carry 3 marks each. Answer

should not exceed 60 words for each question.

v. Question No. 7-9 and 19-21 are short answer questions which carry 4 marks each. Answer

should not exceed 70 words for each question.

vi. Question No. 10-12 and 22-24 are long answer questions which carry 6 marks. Answer should

not exceed 100 words for each question.

vii. Word-limitation is not applicable for numerical question.

साभान्म ननदेश

i. सबी प्रश्न अननवामय है ii. प्रत्मेक प्रश्न के अॊक उसके साभने है

iii. प्रश्न सॊख्मा 1-4 तथा 13-16 अनत रघ ुउत्तयीम प्रश्न है इनभे से प्रत्मेक प्रश्न के 1 अॊक है जजनका उत्तय अधधकतभ एक वाक्म भें आऩेक्षऺत है

iv. प्रश्न सॊख्मा 5-6 तथा 17-18 अनत रघ ुउत्तयीम प्रश्न है इनभे से प्रत्मेक प्रश्न के 3 अॊक है जजनका उत्तय अधधकतभ 60 शब्दों भें आऩेक्षऺत है

v. प्रश्न सॊख्मा 7-9 तथा 19-21 अनत रघ ुउत्तयीम प्रश्न है इनभे से प्रत्मेक प्रश्न के 4 अॊक है जजनका उत्तय अधधकतभ 70 शब्दों भें आऩेक्षऺत है

vi. प्रश्न सॊख्मा 10-12 तथा 22-24 अनत रघ ुउत्तयीम प्रश्न है इनभ ेसे प्रत्मेक प्रश्न के 6 अॊक है जजनका उत्तय अधधकतभ 100 शब्दों भें आऩेक्षऺत है

vii. सॊख्मात्भक प्रश्नो के लरए शब्द सीभा अननवामय नहीॊ है

Section – A (Introductory Microeconomics)

बाग-अ (प्रायजभबक व्मजटि अथयशास्त्र)

1. Decisions on the central problems in a market economy are taken by 1

a. The govt or central authority

b. Institutions

c. Market forces

d. None of these

एक फाजाय अथयव्मवस्त्था भें आधथयक ननर्यम लरए जात ेहै

a. सयकाय मा कें द्रीम शजक्तमों द्वाया b. सॊस्त्था द्वाया c. फाजाय शजक्तमों द्वाया d. इनभ ेसे कोई नहीॊ

2. Variable cost per unit of output is called 1

a. Total fixed cost

b. Average variable cost

c. Average fixed cost

d. Marginal cost

प्रनत इकाई जस्त्थय रागत को क्मा कहा जाता है

a. कुर जस्त्थय रागत b. औसत ऩरयवतयनशीर रागत c. औसत जस्त्थय रागत d. सीभान्त रागत

3. AR and MR are parallel to X-axis in which of the following market 1

a. Monopoly

b. Oligopoly

c. Monopolistic

d. Perfect competition

ककस फाजाय भें औसत सभप्राजतत औय सीभान्त सभप्राजतत X-अऺ के सभान्तय होत ेहै

a. एकाधधकाय b. अल्ऩाधधकाय c. एकाधधकायी प्रनतमोधगता d. ऩरू्य प्रनतमोधगता

4. If supply of a product increases, equilibrium price will 1

a. Rise

b. Fall

c. Either of two

d. Neither of two

मदद वस्त्त ुकी ऩतूी फढ़ती है तो सॊतरुन कीभत

a. फढ़ेगा b. घिेगा c. दोनों भें कोई बी d. दोनों भें से कोई नहीॊ

5. What do you mean by economic problem and why does it arise? 3

आधथयक सभस्त्मा क्मा है मह क्मों उत्ऩन्न होती है Or

If there is improvement in technology or increase in resources then what will happen to PPC?

Discuss and explain it.

मदद तकनीक भें सधुाय होता है मा सॊसाधनों भें वदृ्धि होती है तो PPC ऩय क्मा प्रबाव ऩड़गेा सभझाइमे!

6. When price of a commodity is Rs.10 per unit, the consumer buys 20 units of that good. When

price rises to Rs.15 per unit, the consumer consumes 15 units. Calculate elasticity of demand.

3

मदद वास्त्त ुकी कीभत 10 रूऩमे प्रनत इकाई है तो उऩबोक्ता उसकी 20 इकाईमा खयीदता है जफ कीभत 15 रूऩमे प्रनत इकाई हो जाती है तो उऩबोक्ता 15 इकाईमा उऩबोग कयता है, भाॊग की रोच ऻात कीजजमे !

7. What do you mean by indifference curve? Explain it with the help of table and diagram. 4

तिस्त्थता वक्र क्मा होता है इस ेतालरका व धचर की सहामता से स्त्ऩटि कीजजमे !

8. Why do firms earn only normal profit under perfect competition market in the long run? Explain

पभे ऩरू्य प्रनतमोधगता फाजाय के अॊतगयत दीघयकार भें केवर साभान्म राब ही क्मों कभाती है? सभझाइमे ! 4

Or

Why demand curve of a firm in monopoly market is less elastic. Explain.

एकाधधकाय फाजाय भें भाॊग वक्र काभ रोचदाय क्मों होता है | स्त्ऩटि कीजजमे

9. What do you mean by MSP (Minimum support price)? What are the effects of this? 4

न्मनूतभ सभथयन कीभत क्मा होती है? इसके क्मा प्रबाव है ?

10. What do you mean by consumer equilibrium? Explain it with the help of indifference curve

approach. 6

उऩबोक्ता सॊतरुन क्मा होता है धचर व तालरका द्वाया स्त्ऩटि कीजजमे !

Or

Explain how following factors affecting the price elasticity of demand.

a. Availability of substitute

b. Time period

फतामे की ननभन कायक एक वस्त्त ुकी भाॊग की रोच को कैस ेप्रबाद्धवत कयत ेहै

अ. प्रनतस्त्थाऩना की उऩरभ्धता

फ. सभम अवधध

11. Find out the missing figures from the table below 6

Quantity Total cost Total fixed cost

Total variable

cost

0 - -

1 - - 30

2 120 -

3 - - 55

4 - 60 60

5 160 - -

6 190 - -

ननभन सायर्ी को ऩयूा कये

इकाईमाॊ कुर रागत कुर जस्त्थय रागत

कुर ऩरयवतयनशीर

रगत 0 - - -

1 - - 30

2 120 -

3 - - 55

4 - 60 60

5 160 - -

6 190 - -

12. What is equilibrium price? What will be the effect on equilibrium price and quantity if there is

increase in demand? Explain chain effect. 6

सॊतरुन कीभत क्मा है ? मदद भाॊग भें वदृ्धि होती है तो सॊतरुन कीभत व भारा ऩय क्मा प्रबाव ऩड़गेा इसके प्रबाव की व्माख्मा कये!

Section – B (Introductory Macroeconomics)

बाग- फ (प्रायजभबक सभजटि अथयशास्त्र)

13. Opening stock can be ascertained as – 1

a. Sales + change in output

b. Value of Output + value added

c. Closing stock + change in stock

d. Closing stock – change in stock

आयॊलबक स्त्िॉक ननकरा जा सकता है -

a. बफक्री + उत्ऩादन भें अॊतय b. उत्ऩादन का भलू्म + भलू्म वदृ्धि c. अॊनतभ स्त्िॉक + आयॊलबक स्त्िॉक d. अॊनतभ स्त्िॉक - आयॊलबक स्त्िॉक

14. If APC increases what will happen to APS will 1

a. Decrease

b. Increase

c. Both

d. Neither

मदद APC फढ़ता है तो APS

a. फढ़ेगा b. घिेगा c. दोनों होगा d. इनभ ेसे कुछ नहीॊ

15. Calculate the value of import, if the net export of the economy is Rs. 1000 and value of export is

1400. (In Crores) 1

a. 200

b. 400

c. 600

d. 800

मदद अथयव्मवस्त्था का शिु ननमायत 1000 कयोड़ रूऩमे औय ननमायत का भलू्म 1400 कयोड़ रूऩमे है तो आमत ककतना होगा?

e. 200

f. 400

g. 600

h. 800

16. Foreign exchange rate is determined where 1

a. Demand exceeds supply

b. Supply is less than demand

c. Demand and supply become equal

d. None of these

द्धवदेशी द्धवननभम दय ननधायरयत होती है जफ

a. भाॊग ऩतूी से अधधक हो b. ऩतूी भाॊग से अधधक हो c. भाॊग औय ऩतूी फयाफय हो d. इनभ ेसे कोई नहीॊ

17. Explain the components of domestic income. 3

घयेर ुआम के घिको का वर्यन कये

18. Explain the concept of deflationary gap with the help of schedule and diagram. 3

आबावी भाॊग की अवधायर्ा को येखा धचर की सहामता से सभझाइमे |

OR

“Saving and consumption curves are complementary curves” comment.

"फचत औय उऩबोग एक दसूये के ऩयूक होत ेहै" व्माख्मा कये !

19. From the following schedule compute APC, APS, MPC and MPS 4

INCOME 50 100 150 200

SAVING 20 60 75 120

ननभन सायर्ी की भदद से औसत उऩबोग प्रवनृत, औसत फचत प्रवनृत, सीभान्त उऩबोग प्रवनृत, सीभान्त फचत प्रवनृत ऻात कीजजमे

आम 50 100 150 200 फचत 20 60 75 120

OR

If there is an additional investment in the economy of 100 Cr, what will be the addition income

generated when MPC is 0.25.

मदद अथयव्मवस्त्था भें 50 कयोड़ का अनतरयक्त ननवेश होता है तो आम भें ककतनी अनतरयक्त वदृ्धि होगी मदद सीभान्त उऩबोग प्रवनृत 0.25 है

20. What is multiplier? Explain the relationship between MPC and Multiplier. 4

ननवेश गरु्क क्मा है ? गरु्क व सीभान्त उऩबोग प्रवनृत भें सभफन्ध स्त्ऩटि कीजजमे

21. State four main sources of supply of foreign exchange. 4

द्धवदेशी द्धवननभम की ऩतूी के 4 स्रोत फताईमे

22. Explain any two functions of central bank. 6

कें द्रीम फैंक की ककन्ही दो कामो को सभझाइमे ! OR

What is credit creation? If primary deposit is 1000 and credit multiplier is 10 then what will be

the credit creation in the economy. Explain its process.

साख ननभायर् क्मा है? मदद प्रायॊलबक जभा 1000 तथा साख गरु्क 10 है तो साख ननभायर् ककतना होगा इसकी प्रकक्रमा को सभझाइमे !

23. Explain the following 6

a. Fiscal deficit

b. Revenue deficit

c. Primary deficit

ननभनलरखखत को स्त्ऩटि कीजजमे

a. याजकोषीम घािा b. सभप्राजतत घािा c. आयॊलबक घािा

24. Calculate national income from the following data using income and expenditure method.

6

ननभन आॊकड़ों की सहामता से आम द्धवधध तथा व्मम द्धवधध से याटरीम आम ऻात कीजजमे !

S.No. Items (Rs. In Crores)

1 Private final consumption expenditure 200

2 Subsidies 30

3 Net income from abroad (-) 20

4 Indirect tax 40

5 Rent 5

6 Govt final consumption expenditure 40

7 Operating surplus 10

8 Net domestic fixed capital formation 10

9 Wages and salary 70

10 Net export 10

11 Change in stock 10

12 Employer’s social security contribution 20

13 Mixed income 130

S.No. भद कयोड़ भें 1 ननजी अॊनतभ उऩबोग व्मम 200 2 सहानमकी 30 3 द्धवदेशो से शिु कायक आम (-) 20 4 अप्रत्मऺ कय 40 5 रगान 5 6 सयकायी अॊनतभ उऩबोग व्मम 40 7 प्रचारन अधधशषे 10 8 शिु घयेर ुजस्त्थय ऩूॉजी ननभायर् 10 9 भजदयूी व वेतन 70 10 शिु ननमायत 10 11 स्त्िॉक भें ऩरयवतयन 10 12 भालरकों का साभाजजक सयुऺा भें मोगदान 20 13 लभधित आम 130

Marking Scheme

Class – XII M. Marks – 80

Subject – Economics Time – 3 Hours

Q.no. Expected Answer Marks

1 C 1

2 B 1

3 D 1

4 B 1

5 Economic problem is basically problem of choice. It arises due to limited resources and unlimited wants having alternative uses.

OR

If there is improvement in technology or increase in resources, In both cases PPC will shift to the right. Because by the improvement in technology more production of both the goods can be done or by increase in resources will also make it possible to increase the production of both the goods.

3

6 0.4 (1 mark for formula, 2 mark for calculation) 3

7 Indifference curve is a which shows different combinations of two goods, which provide equal satisfaction.

Combinations Good 1 Good 2

A 1 10

B 2 7

C 3 5

D 4 4

4

8 All firms earn only normal profit because of free and exit of the firms. In case of abnormal profit new firms enter in the market bringing down abnormal profit to normal profit and In case of loss, firms will leave the industry making loss to normal profit.

OR

Demand curve in monopoly market is less elastic because there is only one firm and

4

there is no availability of substitutes. Even if, monopoly firm increases price, buyers demand will not change much because substitutes are not available and seller is only one.

9 Minimum support price is the price determined by Govt above equilibrium price determined by demand and supply. its also known as Floor price. its determined to stabilize the income of producer. It protects producers from loss. Its made to make excess supply

4

10 Consumer will obtain equilibrium position when MRS = Px/Py, slope of indifference curve and slope of budget line) , when 2 conditions are fulfilled

a. Indifference curve is tangent to budget line b. Indifference curve is convex to origin

(explanation-3 marks, diagram and its explanation – 3 marks)

OR a. Availability of substitutes – if substitutes are available in the market then

demand would be elastic because if price of one commodity increases consumer can move to substitute commodity. If substitute is not available, demand would be less elastic because consumer cannot buy other commodity.

b. Time period – In short period demand would be less elastic because habits and preferences cannot be changed easily in short period and its not easy to change in demand in a short period. Whereas In long run, habits, preference and demand can be changed easily therefore demand would be more elastic.

6

11 Quantity TC TFC TVC

0 60 60 00

1 90 60 30

2 120 60 60

3 115 60 55

4 120 60 60

5 160 60 100

6 190 60 130

6

12 Definition-1 mark, assumptions of law of demand-1 mark, schedule-1 marks, diagram & explanation-3 marks

6

13 D 1

14 A 1

15 B 1

16 C 1

17 Consumption of employees, operating surplus, mixed income.. their parts also 3

18 Aggregate demand is less than aggregate supply at full employment level. (Meaning 1 mark , diagram-2 marks)

OR Saving and consumption curves are complementary because income is equal to consumption and saving, Y = C+S, We can consumption from saving function. consumption at the income 0 is dissaving and would be shown negative Y-intercept.

3

19

Income Saving Consumption APC APS MPC MPS

50 20 30 0.6 0.4 - -

100 60 40 0.4 0.6 0.2 0.8

150 75 75 0.5 0.5 0.7 0.3

200 120 80 0.4 0.6 0.1 0.9

OR

400

4

20 Multiplier is the process in which there occurs multiple change in income due to change in initial investment. There is positive relationship between MPC and income, if MPC increases, multiplier will increase and vice versa.

4

21 a. Export of goods & services b. Remittances sent by NRIs c. Donations d. Tourism

4

22 Money supply is the total stock of money of various kinds at any particular point of time Four measures of money supply M1, M2, M3, M4 (explanation of each)

OR

Credit creation is dependent on primary deposit. Banks usually keep certain percentage of deposit of and lend rest of the money. If credit multiplier is 10 and PD is 1000 then credit creation would be 10,000 There is positive relationship between credit multiplier and credit likewise positive relationship between PD and credit creation.

6

23 Fiscal deficit – its the excess of Total expenditure over Total receipts (except borrowing) – it shows burden on govt and government’s over expenditure than receipts Revenue deficit – excess of revenue expenditure over revenue receipts, it shows govt spending more than revenue. Primary deficit – it’s the difference between fiscal deficit and interest payment. It shows deficit occurring to present.

6

24 Income method – Wages& salry + operating surplus+mixed income+ NFYA = 210 Expenditure method - Private final consumption expenditure + gvt final consumption expenditure+net domestic capital formation + change in stock + net export – indirect tax + subsidies + NFYA = 210

6

KENDRIYA VIDYALAYA SANGATHAN, MUMBAI REGION

BLUE- PRINT

SUB: ECONOMICS CLASS: XII

S N

UNITS

Very short answer/MCQ

Short Answer

Short Answer

Long Answer Marks

1 Mark 3 Marks 4 Marks 6 Marks

1 Introduction 1 1 4

2 Consumer’s Equilibrium and Demand

3 1 1 13

3 Producer Behaviour and supply

1 1 1 13

4

Forms of Market and Price Determination under perfect competition with simple applications

1 1 10

5 National Income and Related Aggregates

1 1 10

6 Money and Banking 2 6

7 Determination of Income and Employment

2 1 1 12

8 Government Budget and the Economy

1 6

9 Balance of Payment 2 1 6

8x1=8 4x3=12 6x4=24 6x6=36 80

SAMPLE QUESTION PAPER (ECONOMICS)

MAX. MARKS :- 80 TIME:- 3 HRS

Q.NO QUESTIONS MARKS 1 Define Indifference map. 1

2 In the short run, when a firm produces zero output, its total cost is equal to _____

a) Zero b) variable cost c) Fixed cost d) Marginal cost

1

3 What is rationing? 1 4 When demand increases with no change in supply, equilibrium

price and equilibrium quantity _____ 1

5 Explain the difference between an inferior good and a normal good.

3

6 What are the factors which affects the price elasticity of demand? OR Explain the characteristics of an oligopoly market .

3 3

7 What will be the impact of launched “clean India Mission “ on the production possibilities curve of the economy and why?

4

8 Explain the implication of the following in a perfectly competitive market :-

a) large number of buyers b) Freedom of entry and exit of firms

4

9 Market for a good is in equilibrium. The demand for the good deceases. Explain the chain effects of this change. OR The elasticity of demand of x is -1.25. its price falls for Rs.10 to

4 4

Rs. 8 per unit . calculate the percentage in its demand .

10 State the different phases of change in Total Product and Marginal Product in the Law of Variable Proportions . Use diagram . OR Explain the implication of differentiated product and perfect knowledge feature of perfect competition

6

11 Explain the meaning and conditions of producers equilibrium using MC and MR approach. use diagram .

6

12 Explain with the help of diagram the effect of the following on the supply of a good.

a) A rise in the rate of excise duty b) A fall in the price of other goods c) A fall in the price of factor inputs .

6

13 If the value of MPC is 0.8,calculate the value of multiplier. 1 14 Out of the following which value can be greater than one

a) APC b) MPC c) APS d) MPS

1

15 Define devaluation of domestic currency . 1

16 Balance of trade refers to balance of exports and imports of ____

A) Visible items B) Invisible items C) Both D) None

1

17 Tax rates on higher income groups have been increased. which economic value does it reflect ? Explain .

3

18 Explain the difference between revenue receipts and capital receipts . OR

Government decides to raise its expenditure on producing public utilities. What will be the impact of this on the public ? explain .

3

19 Machine purchased is always a final good. Do you agree? Give 4

reasons for your answer .

20 Explain the effects of appreciation of domestic currency on imports and exports .

4

21 What role of RBI is known as lender of last resort ? OR Explain how money has solved the problem of double coincidence of wants .

4 4

22 Calculate GNP at market price from the following data

S.NO ITEMS RS. CR 1 Compensation of employees 800

2 Profits 200 3 Dividends 50

4 Gross national product at market price

1400

5 Rent 150 6 Interest 100

7 Gross domestic capital formation

300

8 Net fixed capital formation 200

9 Change in stock 50 10 Factor income from abroad 60

11 Net indirect taxes 120 B) How is the value of net exports calculated ? c) What is a positive externality ?

3 3

23 Distinguish between APC and MPC by giving a numerical example . OR Classify the following into the capitals receipts and revenue receipts . Give reasons for your answer .

a) Recovery of loans b) Interest received on loans c) Dividend received from public enterprises d) Grants from foreign governments .

6 6

24 There is improvement in the balance of trade over the year. Explain its effect on GDP.

6

MARKING SCHEME

Q.NO ANSWER MARKS

1 It is locus of different combinations of two goods, the consumer consumes, which give same level of utility .

1

2 Fixed cost 1 3 Allocating the limited supply of essential commodities among

consumers through Fair Price Shops. 1

4 Rises 1

5 Inferior good Normal good

Demand decrease when the income of the consumer increases and vice versa

Demand rises when the income of the consumer increases and vice versa

In Direct relationship Direct relationship

3

6 a) Number of substitutes available for the good b) Proportion of income spent on the good c) Nature of the good

OR A) Firms are mutually dependent on each other B) Firms avoid price war due to fear of loss C) Oligopoly market has few firms

3

7 Reduction in the chances of people falling sick. Ensure better health , means regular work, increases the efficiency of the people ,shift in the PPC curve to the right

4

8 a) The number of buyers so large that each individual buyer has a negligible share in the market demand for the good . No individual buyers can influence the market price .

b) There is no obstacle for the firms to move into and out of the industry . When firms makes profit they will enter the market and when they make loss they exist .

4

9 Price remain the same . situation of excess supply emerges Excess supply leads to a competition between sellers causing

4

price to fall. Fall in price will lead to increase in demand and fall in supply. Price continues to fall in the market till the market is in equilibrium again at a lower price . OR % change in price = change in price /price * 100 -2/10*100 = -20% Ed= % change in qtydd /% change in price -1.25= % change in qtydd/-20 = 1.25X20 = 25%

10 The law of variable proportion states that if we on using more and more units of a variable factor with a fixed factor , TP will increase at increasing rate , then increase at diminishing rate , reaches maximum and finally falls . MP will first increase , then start falling but remain positive ,then become zero . Use diagram . OR Buyers differentiated among the products of different sellers on the basis of their packaging ,colour, shape, brand name etc. The differentiated products are close substitute of each other . All producers and consumers have perfect knowledge about the product . Nobody is ignorant . They all are aware of ruling price .

6 6

11 Producers equilibrium refers to a situation where the producer gets maximum profit. According to MC and MR approach ,the producer is in equilibrium when MR= MC and MC curve cuts the MR curve . use diagram

3 3

12 a) when the rate excise duty is increased by government , the unit cost production will rise .with higher cost of production , less would be supplied than before at the given price and supply curve will shift .

b) Suppose wheat and sunflower are the goods which a farmer produces .if the price of sunflower falls, then it would not be profitable for the farmer to produce more sunflower .so farmer will start producing wheat

2 2

and supply will increase . c) When price of inputs used in the production of a good

goes down, the unit cost of production will decline .At a lower cost of production, producers will increase the supply of the commodity. Use diagram

2

13 K=5 14 a) APC

15 Raise in the price of foreign currency in terms of domestic currency by the government.

1

16 A) Visible items 1

17 It reflects fair distribution of income Government motive is towards equal distribution of income and wealth and bring social justice in the economy .

3

18 Revenue receipts Capital receipts

It neither create liabilities nor lead to reduction in assets .

It either create liabilities or lead to reduction in assets

e.g sale tax , income tax e.g borrowing , recovery of loans

OR When government decides to raise its expenditure on public utilities like parks, street lighting , roads etc, it reflects the value of social welfare .Every body will benefit from theses public utilities, without any discrimination. This is a step towards welfare maximization .

3

19 NO, machine purchased can be final good or intermediate good depending on the purchase . Purchased by household for personal use or producer for production unit then final good . Purchased by firm for resale purposes , then it is treated as intermediated good.

4

20 Imports – it will become cheaper Exports – costlier

4

21 If banks cant not get money for their short term credit they can knock the door of RBI for help. When commercial bank suffers the crisis during such period RBI offers loan to the commercial banks to cope up with the crisis . OR Buyer can easily pay money to the seller in the transaction and on the other hand, seller can buy whatever he wants to buy from the money received .

4 4

22 a) GDP FC= NDPFC-CFC = 800+200+150+100+50 = 1300 CR b) Net Exports = exports – Imports c) Activity resulting in benefits to others is called a positive

externality .

3 3

23 APC is the total consumption expenditure as proportion of total income . APC=C/Y MPC refers to the proportion of change in consumption expenditure to change in income . MPC=change in consumption /change in income . e.g suppose income is Rs.500 and the consumption expenditure is Rs.600

APC= C/Y = 600/500 =1.2

Suppose income increase from Rs.500 to Rs,600 and Consumption rises from 400 to 460.

MPC= 60/100 = 0.60 OR a) Capital receipts – Assets of the government are

reduced. b) Revenue receipts –Neither increase liability nor

reduces assets c) Revenue receipts –Neither increase liability nor

reduces assets d) Revenue receipts –Neither increase liability nor

reduces assets

6 1 ½ marks each 6

24 If there improvement in the balance of trade over the years in the economy, it is very favorable for the growth of GDP. Exports will rise and imports will fall. Exports will bring foreign exchange and import expenditure will also fall thus fall in outflow of foreign exchange .increase in export will lead to increase in employment opportunity and increase domestic income.

6

CLASS-XII QUESTION PAPER SUBJECT- ECONOMICS

TIME-3:00 HOURS M.M.:80MARKS

Section A

1. The time period in which some factors are variable and some factors are fixed is referred to as: 1

a. Very long run b. Long run

c. Short run d. Very short run

2. Which among the following market has the firm which is price taker? 1

a. Monopoly b. Oligopoly

c. Perfect competition d. Monopolistic competition

3. What will be the slope of average revenue curve if total revenue increases at constant rate? 1

4. Define marginal cost. 1

5. Explain the law of demand with the help of demand schedule? 3

OR

How is price elasticity of demand affected by –

a. Number of substitutes available for the good.

b. Nature of the good

6. What is price ceiling? Explain its implications. 3

7. Explain the problem of what to produce with the help of production possibility curve. 4

OR

What will be the impact of Make in India appeal to the foreign investors on the production

possibilities frontier of India and why?

8. Explain the distinction between change in demand and change in quantity demanded . 4

9. At a price of Rs. 8 per unit, the quantity supplied of a commodity is 200 units. Its price elasticity of

supply is 1.5. If its price rises to Rs. 10 per unit, calculate its quantity supplied at new price. 4

10. Price of good X = 8, MUx = 40, Price of good Y = 5, MUy = 50. Find whether the consumer is in

equilibrium or not. Give reason in support of your answer. What should a rational consumer do in such

situation? 6

11. What does the Law of Variable Proportions show? What are the different phases in the law of

variable proportion in terms of marginal product? Give reason behind each phase. 6

OR

What is Producer s equilibrium? Explain the conditions of producer s equilibrium through the marginal

cost and marginal revenue approach. Use Diagram.

12. Market for a good is in equilibrium. Demand for the good Decreases . Explain the chain of effects

of this change. 6

Section B

13. Which of the following is a qualitative instrument of credit control? 1

a. Bank rate b. Repo rate

c. Open market operation d. Margin requirements

14. If consumption function of an economy is given as: C= 40+0.6Y, then MPS is: 1

(a)1 (c) 0.4

(b) 0.6 (d) None of these

15. Define money supply. 1

16. Define autonomous consumption. 1

17. Explain the effect of depreciation of domestic currency on exports. 3

18. Distinguish between accommodating and autonomous items in BOP. 3

OR

State three main source of Supply of foreign currencies into the domestic economy.

19. Write down the limitations of using GDP as an index of welfare of a country. 4

20. What do you mean by open market operations? How does this reduce the excess money supply in

the economy? 4

21. In an economy investment increases from 300 to 500, as a result of this equilibrium level of income

increases by 2000. Calculate the marginal propensity to consume. 4

OR

Explain the steps in deriving saving curve from a consumption curve. Use diagram.

22. Giving reasons, categorize the following into revenue expenditure & capital expenditure and

revenue receipts & capital receipts. 6

(i) Subsidies (ii) Grants given to state governments

(iii) Repayment of loans (iv) Construction of school building

(v) Dividends on investment made by government (vi) Corporation tax

23. Explain the concept of deflationary gap (deficient demand). What is its impact on output,

employment and price level in the economy? How it can be controlled by government spending and

taxation policy? 6

24. From the following data, calculate National Product at Market Price by 6

(i) income method and (ii) expenditure method:

Items (Rs.In Crores)

a. Mixed income of self- employed 400

b. Compensation of employees 500

c. Private final consumption expenditure 900

d. Net factor income from abroad (-) 20

e. Net indirect tax 100

f. Consumption of fixed capital 120

g. Net domestic capital formation 280

h. Net exports (-)30

i. Profits 350

j. Rent 100

k. Interest 150

l. Government final consumption expenditure 450

OR

Will the following be included in National Income of India? Give reasons for your answer.

a. Financial help given to flood victims

b. Profits earned by an Indian bank from its branches abroad.

c. Salaries paid to non-resident Indians working in Indian Embassy in America.

d. Interest received by an individual from banks

MARKING SCHEME

ANSWER KEY

SECTION A: MICROECONOMICS

1. Scarcity is a situation where the availability of resources

falls short of their requirements.

2. (d)

3. TR will be maximum.

4. Ed= change in quantity demanded x original price

Change in price original quantity

5. Economics as a Normative science deals with situations

of value judgments or condition of what ought to be .

Eg. India should create more employment opportunities.

6. =(4\2) x (5\20)

= 0.5 (Ed1, relatively elastic demand).

8. Indeterminateness of Demand Curve: in an oligopoly form

of market no single firm can predict its prospective sales

with perfection. This is because any given change in the

price/output decision by a rival firm would initiate a series

of actions, reactions and counter actions by other.

Therefore there is no certain nature and position of

demand curve under this form of market for a firm.

9. (a) MPP initially rises to its maximum.

(b) MPP then decrease (stays positive) to become zero

(c) MPP becomes negative.

10. (a) False

(b) True

(c) True

(d) False

11. Numerical answer solve with the formula

12. PRICE FLOOR

A Price floor is the lowest legal price of a commodity at

which it can be solved, fixed by the government. Price floors

are used by the govt. to prevent prices for being too low. The

main reason for imposing the price floor policy is the farewell of

the producers/ farmers.

Examples, the minimum wages, minimum support price.

CONSEQUENCE: Buffer stock

SECTION B: MACROECONOMICS

13. (c)

14.(i)

15. (ii)

16. Subsidies are the economic assistance given by the govt. to

the firms and households, with a motive of general welfare.

17. (i) At equilibrium level of income = 1000 crore

(ii) C= 150 crore

18. Ex- post investments are the actual level of the investments

in the economy whereas the Ex-Ante investments are the

planned level of the investments in the economy.

19. GDP doesn t account for externalities.

Positive externality: Eg, increases welfare

Negative externalities: Eg, pollution from factories, decreases

welfare.

20. (i) Quantitative techniques (ii) Qualitative techniques

21. Proper answers (fiscal deficits and economic growth).

22. National income = 5350 crore

GNP at MP = 6250 crore

NDP at FC = 5400 crore

23. Range of investment multiplier = one to infinity

Relation: if MPC rises, investment multiplier: positive

relation, whereas if MPS arises, investment multiplier falls:

inverse relation. (Relation to be supported by the numerical

examples or explanation).

24. (a) when price of foreign currency in terms of domestic

currency rises in the foreign exchange market it is termed as

depreciation of domestic currency

(b) managed floating system is a hybrid system which is

amalgamation of the fixed exchange rate system and floating

exchange rate system

MODEL QUESTION PAPER

Class XII

Subject- Economics

Time- 3.00 hrs M.M 80

General Instructions:

i) All questions in are compulsory.

ii) Marks for questions are indicated against each.प्रश्नों के ग े कं ंगगत हैं. iii) Questions No. 1-4 and 13-16 are very short answer questionscarrying, 1

mark each.

iv) Questions No. 5-6 and 17-18 are short-answer questions carrying, 3 marks

each. Answers to them should normally not exceed 60 words each.

V)Questions No. 7-9 and 19-21 are also short-answer question & carrying 4

marks each. Answers to them should normally not exceed 70 words each..

vi.Questions No.10-12 and 22-24 are long-answer questions carrying 6 marks

each. Answers to them should 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.

Section A

1. What do you mean by Production possibility. 1

2 Give two examples of fixed cost. 1

3. State one reason for rightward shift in supply curve. 1

4. What is meant by production function.1

5. Explain the central problem of “How to Produce”. 3

6. When the price of a good rises from Rs 20 per unit to Rs 30 per unit, the

revenue of the firm producing this goods rises from Rs 100 to Rs

300.Calculate price elasticity of supply. 3

Or

Complete the following table-

Unit of labour Average Product Marginal Product

1 8

2 10

3 10

4 9

5 4

6 7

Unit of labour Average Product Marginal Product

1 8

2 10

3 10

4 9

5 4

6 7

7. Define demand. Name the factors affecting market demand. 4

8 What is the behavior of (a) Average Fixed Cost and (b) Average Variable Cost

as more and more units of a good are produced ? 4

Or

Define Average Revenue. Show that Average Revenue and Price are same

9 Explain the implication of “large number of buyers and sellers” of perfectly competitive market. 4

10 Explain Consumer equilibrium with the help of Indifference curve analysis.

6

OR

Explain the relationship between-

i) Price of other goods and demand for given good.

ii) Income of buyers and demand for a good.

11 What are the different phases in the Law of Variable Proportions in terms of

marginal product? Give reason behind each phase. Use diagram. 6

12Market for a good is in equilibrium. The supply of good ‘‘decreases’’. Explain the chain of effects of this change. 6

Section B

13. What is ‘aggregate supply’ in macroeconomics? 1

14. Define multiplier. 1

15. Give name of two parts of the balance of payment account. 1

16. Give two sources of demand for foreign exchange. 1

17.An economy is in equilibrium, calculate marginal propensity to consume-

National income-1000,Autonomous consumption expenditure-200,Investment

expenditure-100. 3

Or

C=100+0.4Y is the consumption function of the economy where C is

consumption expenditure and Y is National income, Investment expenditure is

1100.Calculate

i) equilibrium level of National Income

ii) Consumption expenditure at equilibrium level of National income.

18.What is ‘deficient demand’? Explain the role of ‘Bank Rate’ in removing it. 3

19.What is aggregate demand ? State its components. 4

Or

Explain how controlling money supply is helpful in reducing excess demand?

20.Distinguish between the fixed exchange rate and the floating exchange

rate. If exchange rate falls, explain its effects on exports and imports. 4

21.Giving reasons categories the following into stock and flow:

i) Capital ii) Saving iii)Gross domestic product iv) Wealth4

22. Calculate National income from following data-

a)Private final consumption expenditure- 900

b) Profit- 100

c) Government final consumption expenditure- 400

Net indirect tax- 100

Gross domestic capital formation- 250

Change in stick- 50

Net factor income from abroad- (-)40

Consumption of fixed capital- 20

Net import 30

23. Explain the following function of money-

a) Medium of exchange

b) Standard of deferred payment.

How has it solved the the related problem of money barter. 6

24. What is the difference between Revenue expenditure and Capital

Expenditure? Explain how taxes and government expenditure can be used to

influence distribution of income in society?6

or

What is the difference between direct tax and indirect tax ? Explain the role of

government budget in influencing allocation of resources?

MODEL QUESTION PAPER

MARKING SCHEME

Class XII Subject- Economics

M.M 80 Duration- 3.00 hrs

______________________________________________________________________

MARKING SCHEME

Q NO

Answer Marks

1 Correct defination 1 mks

2 Correct answer 1/2mks each

3 Any one reason 1 mks

4 Correct defination 1 mks

5 Labour intensive technique and capital intensive technique with explanation

3mks

6 P TR Q 20 100 5 30 300 10 P/Q*ΔQ/ΔP 20/5*5/10 ANS 2 Or Correct calcuation

1 mks 1mks calculation 1mks answer Or 1 and ½ mks each for AP and mp

7 Correct definition Any 3 factors with explanation

1 mks each 1 mks each

8 Correct answer with diagram Or Definition of average revenue Explanation with diagram and table

4mks Or 1mks 3 mks

9 Explanation of implication of large numbers of buyers and sellers

4 mks

10 Indifference curve definition Condition for equilibrium Explanation with diagram Or Relationship of both with explanation

1 mks 2 mks 3 mks Or 3 mks each

11 The Phases are : Phase : I MP rises upto A Phase : II MP falls but is positive i.e. between A and B. Phase : III MP falls and is negative i.e. after B Reasons

1 and 1/2mks

Phase I : Initially variable input is too small as compared to the fixed input, As production is increased there is specialization of variable inputs and efficient use of the fixed input leading to rise in productivity of the variable input. As a result MP rises. Phase II : After a level of output a pressure on fixed input leads to fall in productivity of the variable input. MP starts falling but remains positive. Phase III : The amount of variable input becomes too large in comparison to the fixed input causing decline in total product. MP becomes negative digram

3 mks 1 and 1/2mks

12 Given equilibrium, Supply decreases . - Price remaining unchanged, excess demand emerges. - Excess demand

leads to competition between buyers causing price to rise.

- Rise in price causes fall (contraction) in demand and rise

(expension) in supply. - Rise in price continues till the

market is in equilibrium again at a higher price.

6 mks

13 Correct defination 1 mks

14 Correct defination 1 mks

15 Current and capital account ½ mks each

16 Any 2 correct sources ½ mks each

17 Calculation answer Or

i) Y=C+I Y=100+0.4Y+1100 0.6Y=1200 Y=2000 II) C=100+0.4Y = 100+(0.4Y*2000) =100+800=900

2mks 1mks OR Calculation 2 mks and answer 1 mks

18 Correct definition Explanation

1 mks 2 mks

19 Correct definition Components with explanation Or Excess demand definition explanation

1 mks 3 mks Or 1 mks 3 mks

20 Explanation of effects 4 mks

21 Capital is stock because it is measured at a point of time. Saving is flow because it is measured during a period of time Gdp is flow because it is measured during a period of time Wealth is stock because it is measured at a point of time.

1 mks each

22 Formula Calculation 900+400+250-20-30-100+(-)40 Answer-1360

1mks 4 mks 1mks

23 Medium of exchange function Standard of deferred payment explanation

3 mks each

24 Any 3 differences Equitable distribution of income explanation Or Any 3 difference Or Allocation of resources explanation

1 mks each 3 mks Or 1 mks each Or 3 mks

BLUE PRINT CLASS XI

SNO. UNIT UNIT TITLE VERY SHORT (MCQ)

1 MARKS

1 UNIT I INTRODUCTION -

2 UNIT II CONSUMER EQUILIBRIUM & DEMAND 3

3 UNIT III PRODUCER'S BEHAVIOUR & SUPPLY -

4 UNIT IV FORMS OF MARKET & PRICE DETERMINATION 1

INTRODUCTORY MACRO ECONOMIC

5 UNIT V NATIONAL INCOME & RELATED AGGREGATES

6 UNIT VI MONEY & BANKING

7 UNIT VII DETERMINATION OF INCOME & EMPLOYEMENT

8 UNIT VIII GOVERNMENT BUDGET & THE ECONOMY

9 UNIT IX BALANCE OF PAYMENT

SUB TOTAL 8 X 1 = 8

SS XII ECONOMICS

SHORT ANSWER SHORT ANSWER LONG ANSWER TOTAL

3 MARKS 4 MARKS 6 MARKS

- 1 - 4

- 1 1 13

1 1 1 13

1 - 1 10

ONOMICS

4 X 3 = 12 6 X 4 = 24 6 X 6 = 36 80 (24)

SAMPLE QUESTION PAPER ECONOMICS

INSTRUCTIONS-

a) All question in both sections are compulsory. However there is

internal choice in some questions.

b) Marks for questions are indicated against each question.

c) Question no. 1-4 & 13-16 are very short answer question carrying 1m

each. They are required to be answered in one sentence.

d) Question no. 5-6 & 17-18 are short answer question carrying 3m

each. Answer to them should not normally exceed 60 words each.

e) Question no. 7-9 & 19-21 are also short answer question carrying 4m

each. Answer to them should not normally exceed 70 words each.

f) Question no. 10-12 & 22-24 are long answer question carrying 6m

each. Answer to them should not normally exceed 100 words each.

g) Answers should be brief and to the point and above word limit be

adhered to as far as possible.

_____________________________________________________________________________________

SECTION A- MICROECONOMICS.

1. State the meaning of scarcity.

(1m)

2. If a firm s production department data says that the total variable

cost for producing 8 units and 10 units of output is Rs.2500 and

Rs.3000 respectively, marginal cost of 10th unit will be

(1m)

a) Rs.100 b) Rs.150 c) Rs.500 d) Rs.250

3. If the value of marginal revenue is zero, total revenue will be?

(1m)

4. State the formula for price elasticity of supply by percentage

method. (1m)

5. Define normative economics , with a suitable example.

(3m)

6. Distinguish between the demand and quantity determined.

(3m)

7. Comment upon the degree of elasticity of demand for Good-X, in the

following given situations, if the price of the commodity rises from Rs. 5

per unit to Rs. 7 per unit and the quantity demanded falls from 20 units

to 16 units, using proportionate method.

(3m)

8. Discuss the primary reason for indeterminateness of demand under

the oligopoly form of market. (4m)

9. State and explain the behavior of marginal physical product, under

returns to a factor, using a hypothetical schedule.

(4m)

10. Identify which of the following is true for the indifference curves.

Give valid reason for choice of your answer.

a) Lower indifference curve represents lower level of satisfaction.

b) Two regular convex to origin indifference curves can intersect each

other.

c) Indifference curve must be convex to origin at the point of tangency

with the budget line at the consumer s equilibrium.

d) Indifference curve are drawn under the cardinal approach to

consumer equilibrium. (6m)

11. Complete the following Cost schedule.

(6m)

Units

Produced

Marginal

Cost

Average

Variable Cost

Total Cost Average Fixed

Cost

0 - - 60 -

1 60 ….. 120 …. 2 ……. …… 174 …. 3 ……. 54 ….. …. 4 54 …... ….. 15 5 …… 57 345 ….

12. Define price floor. What is the common cost of fixation of floor

price by the government? Explain any one likely consequence of this

nature of intervention by the government.

Section-B: macroeconomics

13. Supply of money refers to quantity of money

(1m)

a) As on 31st

march. b) During any specific

period of time.

c) As on any point of time. d) During a fiscal year.

14. Primary deficit is equal to:

(1m)

a) Fiscal deficit less Interest b) Revenue

Deficit less borrowings

c) Borrowing less interest of payment. d)

Borrowing less Fiscal Deficit

15. Which of the following is not a Qualitative method of credit

control? (1m)

a) Open market operation b) Margin

requirements

c) Variable reserve ratio d) Bank rate

policy

16. What are Subsidies ?

(1m)

17. If an economy :

(3m)

a) Consumption function is given by C =100 + 0.75 Y b) Autonomous

investment is Rs. 150 crore.

Estimate (i) Equilibrium level of income. (ii) Consumptions and savings

at the equilibrium level of income.

18. Distinguish between Ex-post and Ex-ante investments.

(3m)

19. GDP as an index of welfare may understate or overstate welfare .

Explain the statement using examples of a positive and a negative

externality. (4m)

20. Discuss how the central bank plays the role of controller of credit

in an economy? (4m)

21. (a) Fiscal deficit is necessarily inflationary in nature . Do you

agree? Support you answer with valid reason.

(b) Elaborate economic growth as an objective of government

budget. (2+2 = 4 )

22. Compute (a) National Income (b) GNP at MP and (c) NDP at FC from

the following table.

S.NO Items Amount (in cr.)

1 Mixed income of self employed 2500

2 Net factor income from abroad (-) 50

3 Rent 500

4 Consumption of fixed capital 400

5 Corporation tax 700

6 Profits 300

7 Net retained earnings of private enterprises 500

8 Compensation of employees 1600

9 Net indirect taxes 500

10 Net exports (-) 40

11 Interest 500

12 Direct taxes paid by households 300

23. What is the range of values of investment multiplied? Clarify the

relation of investment multiplier with marginal propensity to consume

(MPC) and with marginal propensity to save (MPS). (6m)

24. (a) Explain how Depreciation of currency promotes exports of a

country?

(b) Draft short note on Managed floating exchange rate system ?

(6m)

MARKING SCHEME

ANSWER KEY

SECTION A: MICROECONOMICS

1. Scarcity is a situation where the availability of resources

falls short of their requirements.

2. (d)

3. TR will be maximum.

4. Ed= change in quantity demanded x original price

Change in price original quantity

5. Economics as a Normative science deals with situations

of value judgments or condition of what ought to be .

Eg. India should create more employment opportunities.

6. =(4\2) x (5\20)

= 0.5 (Ed1, relatively elastic demand).

8. Indeterminateness of Demand Curve: in an oligopoly form

of market no single firm can predict its prospective sales

with perfection. This is because any given change in the

price/output decision by a rival firm would initiate a series

of actions, reactions and counter actions by other.

Therefore there is no certain nature and position of

demand curve under this form of market for a firm.

9. (a) MPP initially rises to its maximum.

(b) MPP then decrease (stays positive) to become zero

(c) MPP becomes negative.

10. (a) False

(b) True

(c) True

(d) False

11. Numerical answer solve with the formula

12. PRICE FLOOR

A Price floor is the lowest legal price of a commodity at

which it can be solved, fixed by the government. Price floors

are used by the govt. to prevent prices for being too low. The

main reason for imposing the price floor policy is the farewell of

the producers/ farmers.

Examples, the minimum wages, minimum support price.

CONSEQUENCE: Buffer stock

SECTION B: MACROECONOMICS

13. (c)

14.(i)

15. (ii)

16. Subsidies are the economic assistance given by the govt. to

the firms and households, with a motive of general welfare.

17. (i) At equilibrium level of income = 1000 crore

(ii) C= 150 crore

18. Ex- post investments are the actual level of the investments

in the economy whereas the Ex-Ante investments are the

planned level of the investments in the economy.

19. GDP doesn t account for externalities.

Positive externality: Eg, increases welfare

Negative externalities: Eg, pollution from factories, decreases

welfare.

20. (i) Quantitative techniques (ii) Qualitative techniques

21. Proper answers (fiscal deficits and economic growth).

22. National income = 5350 crore

GNP at MP = 6250 crore

NDP at FC = 5400 crore

23. Range of investment multiplier = one to infinity

Relation: if MPC rises, investment multiplier: positive

relation, whereas if MPS arises, investment multiplier falls:

inverse relation. (Relation to be supported by the numerical

examples or explanation).

24. (a) when price of foreign currency in terms of domestic

currency rises in the foreign exchange market it is termed as

depreciation of domestic currency

(b) managed floating system is a hybrid system which is

amalgamation of the fixed exchange rate system and floating

exchange rate system

Page 1 of 5

Practice Paper

SUB: ECONOMICS CLASS: XII

MARKING SCHEME

Q N ANSWERS Marks

SECTION-A

1 (d) the choice of goods and services 1

2 (a)MU 1

3 Marginal rate of substitution refers to the rate at which the consumer is willing to

sacrifice good-Y for a unit more of good-X.

1

4 (b)fall in demand for other 1

5 PPC is drawn on the assumption that the given resources are fully as well as efficiently

utilized. Unemployment is a situation when resources are not fully utilized. Or, it is a

situation of underutilization of resources. It would mean that the economy is not

operating on the PPC but somewhere inside the PPC. PPC would not shift.

OR

‘Make in India’ campaign focuses on the inflow of foreign capital in the domestic economy. It would increase the availability of resources in the domestic economy.

Accordingly, PPC would shift to the right.

3

6 Meaning: Producer’s equilibrium refers to a situation where profits are maximized. 1 Mark.

Conditions: i) MR=MC

ii) MC is greater than MR beyond the point of equilibrium. 2 Marks.

3

7 P=50, P1=60, ΔP=10, Q=200, Ed= (- )1 Formula: 1 Mark

Calculation: 1 Mark - 1= ΔQ

x 5

ΔQ= - 40 1 Mark New Quantity= 160 1 Mark

4

8 (i)When TR increases at decreasing rate MR should be diminishing. 1 Mark

(ii)When TR increase at constant rate MR should be constant. 1 Mark

Proper diagram: 2 Marks.

OR

Output

(Units) TVC AVC MC

1 20 20 20

2 32 16 12

3 54 18 22

4

Page 2 of 5

4 80 20 26

9 Due to large number of firms, homogenous product and perfect knowledge, price is

determined by the forces of market demand and market supply. A firm sells its output

at the given price. Therefore, a firm under perfect competition is a price taker, not a

price maker. Or any other relevant points.

4

10 Consumer attains equilibrium when: 𝑀𝑈𝑥𝑃𝑥 = MU of money

[ Here, MUx = Marginal utility of X; Px = Price of X ]

Or when: MUx = Px * MU of money

When X= 4, MUx = Px * Mum = 6 [ Mum = 1]

The consumer should purchase 4 units in order to get maximum satisfaction.

OR

Taking MUm as constant, a fall in Px (by way of subsidy) would mean that 𝑀𝑈𝑥𝑃𝑥 > MUm. The consumer’s equilibrium is disturbed. But the change is good for the consumer. Induced by lower Px, the consumer increases the consumption of LPG. A

rise in the consumption of LPG leads to a fall in MUx. The equilibrium 𝑀𝑈𝑥𝑃𝑥 = MUm is

now established at a higher level of consumption of LPG. The subsidy plays its role by

increasing the consumption of LPG, as desired by the government. Consumer’s equilibrium is shifted to a higher level of satisfaction, even when his income remains

constant.

6

11 Change in Supply Change in Quantity Supplied

Price constant, change in other factors Price changes, other factors constant.

Shift of supply curve, either right or left. Movement along the supply curve,

either upward or downward.

Increase and decrease in supply. Expansion and contraction of supply

Diagram Diagram

Any other relevant points. 1 Mark each point. Diagrams 2 marks. (4+2 = 6)

6

12 When drought severally damages the wheat crop, it leads to decrease in supply. Supply

curve shifts to the left. 2 marks.

Correct diagram: 2 marks.

Fall in equilibrium quantity, rise is equilibrium price: 2 marks.

6

SECTION-B

13 (a)Rs.60 1

14 (a)autonomous investment 1

15 Balance of trade is defined as the difference between the value of imports and exports of 1

Page 3 of 5

only physical goods or visible items.

16 (i)domestic currency has depreciated 1

17 As a banker’s bank, central bank has almost the same relation with other banks in the country as a commercial bank has with its customers. It accepts deposits from the

commercial banks and offers them loans. The rate at which the central bank offers loans

to the commercial banks is called repo rate. The rate at which commercial banks are

allowed to park their surplus funds with the RBI is called reverse repo rate.

OR Central bank is a banker, agent and financial advisor to the government. As a banker to

the government, it manages accounts of the government. As an agent to the government,

it buys and sells securities on behalf of the government. As an advisor to the

government, it frames policies to regulate the money market.

3

18 i)Exchange has become much simpler, and therefore, expanded considerably.

Expansion of exchange leads to expansion of value addition.

ii) Exchange function of money has changed the nature of production activity.

Production now is done more for the market and less for self-consumption.

iii) Exchange function of money has separated the acts of sale and purchase.

Accordingly, size of the market has considerable expanded.

3

19 (i)False. National income can be less than domestic income. National income is greater

than domestic income only when net factor income from abroad is positive.

(ii)False. Income from exports is a part of net exports and therefore a component of

gross domestic product. (2+2 = 4)

4

20 Investment multiplier refers to the number of times by which there is increase in income

as a result of increase in investment. It is measured as the ratio between change in

income and change in investment. 2 marks.

Any suitable example: 2 marks.

4

21 Devaluation is the fall in the value of domestic currency in relation to foreign currency as planned by the government in a situation when exchange rate is not

determined by the forces of supply and demand but fixed by the government of

different countries.

Depreciation is the fall in the value of domestic currency in relation to foreign currency in a situation when exchange rate is determined by the forces of supply and

demand in the international money market.

OR

Cancellation of coal blocks allocation is likely to cause a fall in supply of coal,

Particularly for the production of electricity. Since coal is the core input for the

generation of power in India, a cut in domestic supply is bound to cause a rise in

imports. Our import bill is bound to rise. A rise import payments implies a rise in

4

Page 4 of 5

current account deficit, other things remaining constant.

22 Deficient demand refers to a situation when aggregate demand is short of aggregate

supply corresponding to full employment in an economy. 1 Mark.

Proper diagram with explanation: 3 marks.

Role of Open market operations: During the situation of deficient demand, the central

bank tries to buy securities. Purchase of securities injects purchasing power into the

market. Consequently, aggregate demand is increased: 2 marks.

6

23 i) Revenue deficit = Revenue expenditure – Revenue receipts = Rs. 22,250 – Rs 17,750 crore = Rs. 4,500crore

ii) Fiscal deficit = (Revenue expenditure + Capital expenditure ) – ( Revenue receipts + capital receipts(net of borrowings))

=( 22,250+28,000) – (17,750+20,000) = 50,250 – 37,750 =Rs. 12,500crore.

iii) Primary deficit = Fiscal deficit – Interest payments = 12,500 – 5,000 = Rs. 7,500crore. (2+2+2 =6)

OR (i) Receipts from sale of shares of public sector undertaking are a capital receipt, as it

causes reduction in assets of the government.

(ii) Borrowing from public is a capital receipt, as it creates liability for the

government.

(iii) Profit of public sector undertakings is a revenue receipt, because it neither creates

liability not leads to reduction in assets of the government.

(iv) Income tax received by the government is a revenue receipt, because it neither

creates liability nor leads to reduction in assets of the government. (1 ½ x 4 = 6)

6

24 (i) National Income by Income Method NNPfc = Compensation of Employees + Rent + Interest + Profit + NFIA

= 1200 + 300 + 200 + 600 + (-)50

= 2300 – 50 = 2250

Natiional Income = Rs. 2250 crores.

(ii) National Income by Expenditure Method NNPfc = Private final consumption expenditure + Govt. final consumption

expenditure + Net domestic capital formation + Net exports + Net factor

income from abroad – Net Indirect taxes = 1300 + 730 + 360 + (-)20 + (-)50 – 70 = 2390 – 140 = 2250

National Income = Rs. 2250 crores.(3 + 3 = 6)

6

Page 5 of 5

Page 1 of 4

Practice Paper

CLASS: XII MaximumMarks: 80 SUBJECT: ECONOMICS Time Allowed: 3.00 Hours General Instructions:

i. Please check that this question paper contains 9 printed pages.

ii. Please check that this question paper contains 24 questions.

iii. Please write down the Serial Number of the question before attempting it.

iv. All questions in both the sections are compulsory.

v. Marks for questions are indicated against each question.

vi. Question Nos. 1-4 and 13-16 are very short-answer questions carrying 1 mark each. They are

required to be answered in one sentence each.

vii. Question Nos. 5-6 and 17-18 are short-answer questions carrying 3 marks each. Answer to them

should normally not exceed 60 words each.

viii. Question Nos. 7-9 and 19-21 are also short-answer questions carrying 4 marks each. Answer to them

should normally not exceed 70 words each.

ix. Question Nos. 10-12 and 22-24 are long-answer questions carrying 6 marks each. Answer to them

should normally not exc