Students must start practicing the questions from RBSE 12th Economics Model Papers E-Economics Self Evaluation Test Papers in English Medium provided here.
RBSE Class 12 E-Economics Self Evaluation Test Papers in English
General Instructions to the Examinees :
- Candidate must write first his/her Roll No. on the question paper compulsion
- All the questions are compulsory.
- Write the answer to each question in the given answer hook only.
- For questions having more than one part the answers to those pans are to he written together m continuity.
RBSE Class 12 E-Economics Self Evaluation Test Paper 1 in English
Section-A
Multiple Choice Questions
1. Choose the correct option :
(i) Who is considered as the founding father of modern economics? [1]
(a) J.M. Keynes
(b) Kautilya
(c) Adam Smith
(d) Marshall
(ii) Profits used by the entrepreneur in the future to buy inputs for further production are related to : [1]
(a) Investment Expenditure
(b) Production Expenchturc
(c) Consumption Expenditure
(d) None of the above
(iii) Identify factor income from the following: [1]
(a) pocket money received by son from his father
(b) wages paid to domestic servant
(c) unemployment allowance
(d) None of the above.
(iv) Money supply is increased when LRR: [1]
(a) falls
(b) rises
(c) both (a) and (b)
(d) none of these
(v) Which of the following is/are the quantitative tools to control money supply of central bank? [1]
(a) Moral suasion
(b) Margin requirement
(c) Bank rate
(d) Both (a) and (b)
(vi) Financial year in India is from: [1]
(a) April 1 to March 31.
(b) January 1 to December 31
(c) October 1 to September 30.
(d) None of the above
(vii) Consumer is sovereign under which of the following economies? [1]
(a) Centrally planned economy
(b) Free economy
(c) Mixed economy
(d) Both (b) and (c)
(viii) If demand function of a commodity is DX = 35-4 (PX) and its price is ₹ 5 per unit, the demand would be : [1]
(a) 20
(b) 15
(c) 35
(d) 0
(ix) A Giffen good is one whose demand increases, other things remaining the same, when :[1]
(a) its price increases
(b) consumer’s income increases
(c) price of its superior substitutes decreases
(d) None of these.
(x) Which of the following statements is true of the relationship among the average cost functions? [1]
(a) ATC = AFC – AVC
(b) AVC = AFC + ATC
(c) AFC = ATC + AVC
(d) AFC = ATC – AVC
(xi) Which curve is not U-shaped ? [1]
(a) AC
(b) AFC
(c) MC
(d) AVC
(xii) A firm’s average total cost is ₹ 300 at 5 units of output and ₹ 320 at 6 units of output. The marginal cost of producing the 6th unit is: [1]
(a) ₹ 20
(b) ₹ 120
(c) ₹ 320
(d) ₹ 420
Fill in the blanks :
(i) Due to ……………………….. demand for goods in the market was low. many factories were idle, workers were thrown out of job. [1]
(ii) ……………………. is the ratio of total deposits to cash reserve of banks. [1]
(iii) Primary deficit in a government budget is ………………… . [1]
(iv) Study of economy as a whole is called …………………… economics. [1]
(v) Cardinal utility analysis assumes that the level of utility can be expressed in ………………. . [1]
(vi) Once output has been produced, the firm sells it in the market and earns ………………….. . [1]
Answer the following in 10-20 words :
(i) Define consumption goods. [1]
(ii) Give two examples of Intermediate goods.[1]
(iii) Define consumption goods. [1]
(iv) Define barter system.[1]
(v) What” is bank money? [1]
(vi) Define government budget.[1]
(vii) Give two examples of revenue receipts. [1]
(viii) Give an example of a country following the centrally planned system of Economy.[1]
(ix) What do you mean by the biggest set of a consumer?[1]
(x) What do you mean by law of diminishing returns to a factor?[1]
(xi) What is the use of production function in economics? [1]
(xii) What is the meaning of perfect competition market?[1]
Section-B
Question 4.
What is factor income? [2]
Question 5.
What do you mean by Centrally Planned Economy? [2]
Question 6.
What is Legal reserve ratio? State its components.[2]
Question 7.
Explain why public goods must be provided by the government?[2]
Question 8.
Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier? [2]
Question 9.
write the steps to reduce deficit in government budget.[2]
Question 10.
Distinguish between direct tax and indirect tax. What is the basis of classifying taxes into direct and- indirect tax ? [2]
Question 11.
How is ‘choice’ a core parameter in the study of economics?[2]
Question 12.
How does the budget line change if the price of good 2 decreases by a rupee but the price of good I and the container’s income remain unchanged? [2]
Question 13.
If a consumer has monotonic preference, can she be indifferent between the bundles (10, 8) and (8, 6)? [2]
Question 14.
Explain the concept of a production function.[2]
Question 15.
How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other? [2]
Question 16.
How does the technological progress affect the supply curve of a firm? [2]
Section-C
Question 17.
What is the difference between microeconomics and macroeconomics? [3]
Or
What are the three factors of production and what are the remunerations to each of these called? [3]
Question 18.
What is a barter system? What are its drawbacks? [3]
Or
What High Powered Money? [3]
Question 19.
Discuss the central problems of an economy. [3]
Or
Distinguish between a centrally planned economy and a market economy. [3]
Question 20.
What are the characteristics of a perfectly competitive market? [3]
Or
Explain the relationship between Total Revenue. Average Revenue and Marginal Revenue with the help of an imaginary table and diagrams. [3]
Section-D
Question 21.
Explain the role of Reverse repo rate in controlling money supply. 4
Or
What is a ‘legal tender? What is ‘fiat money? [4]
Question 22.
A consumer wants to consume two goods. The prices of the two goods are ₹ 4 and ₹ 5 respectively.
The consumer’s income is ₹ 20. [4]
(i) Write down the equation of the budget line.
(ii) How much of good 1 can the consumer consume, if she spends her entire income on that good?
(iii) How much of good 2 can she consume if she spends her entire income on that good?
(iv) What is the slope of the budget line?
Or
A consumer purchased 10 units of a commodity when its price was ₹ 5 per unit. He purchased 12 units of that a commodity when its price falls to ₹ 4 per unit. What is the price elasticity of demand for the commodity at that price? [4]
Question 23.
Explain in detail the different stages of total production, average production and marginal production. [4]
Or
Explain the relationship between Average and Marginal Cost curves. [4]
RBSE Class 12 E-Economics Self Evaluation Test Paper 2 in English
Section-A
Multiple Choice Questions
1. Choose the correct option:
(i) The famous book The General Theory of Employment, Interest and Money has been written by— [1]
(a) Adam Smith
(b) J.M. Keynes
(c) Hawtrey
(d) Mikon Fridman
(ii) The main motive of a capitalist economy is: [1]
(a) to maximise sale
(b) to maximise production output
(c) to maximise profit
(d) to maintain balance of trade.
(iii) Which of the following in not a flow variable: [1]
(a) Capital
(b) Income
(c) Investment
(d) Depreciation
(iv) The central bank of India is: [1]
(a) Reserve Bank of India
(b) State Bank of India
(c) Bank of India
(d) None of these
(v) Which one of the following is applicable to short-period loans? [1]
(a) Repo Rate
(b) Bank Rate
(c) Reverse Repo Rate
(d) Both (a) and (c).
(vi) Which is included in the direct tax? [1]
(a) Income tax
(b) Gift tax
(c) Both (a) and (b)
(d) Excise duty.
(vii) Positive economics involve statements which are: [1]
(a) Verifiable
(b) Not verified
(c) May or may not be verified
(d) None of these.
(viii) On what type of goods, law of demand does not apply? [1]
(a) Giffen goods
(b) Normal goods
(c) Substitute goods
(d) Complementary goods.
(ix) If a good is a luxury, its income elasticity of demand is: [1]
(a) positive and less than 1
(b) negative but greater than – 1
(c) positive and greater than 1
(d) zero
(x) Production function defines the relationship between which two variables? [1]
(a) Inputs and outputs
(b) Demand and cost
(c) Supply and cost
(d) Consumption and income
(xi) Which cost increases continuously with the increase in production? [1]
(a) Average Cost
(b) Marginal Cost
(c) Fixed Cost
(d) Variable Cost
(xii) A firm producing 7 units of output has an Average Total Cost of 150 and has to pay ₹350 to its fixed factors of production whether it produces or not. How much of the Average Total Cost is made up of Variable Costs? [1]
(a) ₹ 200
(b) ₹ 50
(c) ₹ 300
(d) ₹ 1.
2. fill in the blanks :
(i) The situation of rise in pricçs in an eco non is known as …………………… . [1]
(ii) ……………………… refers to the minimum percentage 01 Lune and demand dubious, required to be kept by commercial banks with themselves. [1]
(iii) Direct tax is called direct because it is collected directly from …………………… . [1]
(iv) Microeconomics studies economic activities of …………………. units. [1]
(v) …………………………… is the change in total utility due to consumption of one additional unit of a commodity. [1]
(vi) The production function of a firm is a relationship between inputs used and ……………………….. produced by the firm. [1]
3. Answer the following In 10-20 words:
(i) Define final goods: [1]
(ii) Define the term Investment. [1]
(iii) Define GDP. [1]
(iv) Define money. [1]
(v) Define demand deposits. [1]
(vi) State any one objective of a government budget. [1]
(vii) Give two examples of capital receipts. [1]
(viii) Give an example of a country following the free system of economy. [1]
(ix) What is budget line? [1]
(x) What are the steps of calculating total output product (TP)? [1]
(xi) What is Average Cost? [1]
(xii) How is the price of product determined in perfect competition? [1]
Section-B
Question 4.
Write a short note on Adam Smith. [2]
Question 5.
What do you mean by capitalist Economy/Market Economy? [2]
Question 6.
Differentiate between cash reserve ratio and statutory liquidity ratio. [2]
Question 7.
Distinguish between revenue expenditure and capital expenditure. [2]
Question 8.
Explain the relation between government deficit and government debt. [2]
Question 9.
What do you understand by GST? How good is the system of GST as compared to the old tax system? State its categories. [2]
Question 10.
Can there be fiscal deficit without a revenue deficit? [2]
Question 11.
State the theories that we study in microeconomics. [2]
Question 12.
Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2 if she spends her entire income.
The prices of the two goods are ₹6 and ₹ 8 respectively. How much is the consumer’s income? [2]
Question 13.
Suppose a consumer’s preferences are monotonic. What can you say about her preference ranking over the bundles (10, 10), (10, 9), and (9, 9)? [2]
Question 14.
Explain the relationship between the marginal product and the total product of an input. [2]
Question 15.
What is the price line’? [2]
Question 16.
How does the imposition of a unit tax affect the supply curve of a firm? [2]
Section-C
Question 17.
What are the important features of a capitalist economy? [3]
Or
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain. [3]
Question 18.
What are the main functions of money? How does money overcome the shortcomings of the barter system? [3]
Or
Explain the functions of commercial banks. [3]
Question 19.
What do you mean by the production possibilities of an economy? [3]
Or
What do you mean by positive economic analysis? [3]
Question 20.
What conditions must hold if a profit-maximizing firm produces positive output in a competitive market? [3]
Or
What is perfect competition market? Why is demand curve for a firm perfectly elastic in perfect competition?
Explain. [3]
Section-D
Question 21.
Explain the role of the reserve bank of India as the lender of last resort.”[4]
Or
Explain the unit of account function of money.[4]
Question 22.
Explain consumer’s equilibrium in cardinal approach. [4]
Or
As a result of 10% fall in price of a good, its demand rises from 100 units to 120 units. Find out the price elasticity of demand.[4]
Question 23.
Explain in detail the law of variable proportions.[4]
Or
Why is the short-run marginal cost curve ‘U’ shaped? [4]
RBSE Class 12 E-Economics Self Evaluation Test Paper 3 in English
Section – A
Multiple Choice Questions
I. Choose the correct option:
(i) The labour which is purchased and sold against wages is referred to as: [1]
(a) wage rate
(b) wage labour
(c) unemployment rate
(d) Both (a) and (b).
(ii) Macroeconomics Theory is also known as: [1]
(a) Price Theory
(b) Demand and Supply Theory
(c) Relative Theory
(d) Income and Employment Theory.
(iii) National income is the sum of factor income accruing to: [1]
(a) Nationals
(b) Economic territory
(c) Residents
(d) Both residents and non-residents
(iv) Which of the following does not come under quantitative method of monetary policy?[1]
(a) Bank Rate
(b) CRR
(c) SLR
(d) Margin requirement
(v) Commercial banks are of money. [1]
(a) Traders
(b) Producers
(c) Both (a) and (b)
(d) Neither (a) nor (b)
(vi) The expenditure which do not create assets for the government are called: [1]
(a) Revenue expenditure
(b) Capital expenditure
(c) Both (a) and (b)
(d) None of the above
(vii) Statement which does not offer any suggestion is known as: [1]
(a) Positive statement
(b) Normative statement
(c) None of these
(d) Both (a) and (b)
(viii) Goods having negative price effect and positive income effect are known as: [1]
(a) inferior goods
(b) normal goods
(c) substitute goods
(d) complementary goods.
(ix) The price of burgers increases by 22% and the quantity of burgers demanded falls by 25%. This indicates that
demand for burgers is: [1]
(a) elastic
(b) inelastic
(c) unitary elastic
(d) perfectly elastic.
(x) In short-run production function: [1]
(a) every factor is constant
(b) every factor is varied
(c) some factors are constant and some are varied
(d) None of these.
(xi) In the short run, when the output of a firm increases, its Average Fixed Cost:[1]
(a) Increases
(b) Remains Constant
(c) Decreases
(d) First declines and then rises.
(xii) Rectangular Hyperbola is the shape of this curve: [1]
(a) TFC
(b) AFC
(c) FC
(d) MC
2. Fill in the blanks :
(i) NNPFC = GDPMP – NiT – Depreciation + ……………….. .[1]
(ii) The two components of LRR are …………………….. and …………………….. .[1]
(iii) Disinvestment of equity in PSUs is a ………………………. policy instrument.[1]
(iv) ……………………. is a system by which people of an area live in an organized way.[1]
(v) TU is highest when the marginal utility is …………………. .[1]
(vi) Capital is considered as the ………………… Factor of production.[1]
3. Answer the following in 10-20 words:
(i) Name the main types of final goods. [1]
(ii) Define wage rate. [1]
(iii) Define current transfer. [1]
(iv) Define money supply. [1]
(v) What are time deposits in bank? [1]
(vi) What are revenue receipts in government budget? [1]
(vii) What do you mean by non-debt creating capital receipts? Give two examples of such receipts. [1]
(viii) Give an example of a country following a mixed economy system. [1]
(ix) Explain why the budget line is downward sloping? [1]
(x) State two assumptions of production function. [1]
(xi) State the formula to determine average cost. [1]
(xii) “In perfect competition, the firm is acceptor of price”. What does it mean? [1]
Section-B
Question 4.
Distinguish between domestic product and national product. [2]
Question 5.
Distinguish between nominal GDP and real GDP. which of these is an indicator of economic welfare? [2]
Question 6.
What are other deposits (OD) measures of M1 ? [2]
Question 7.
The Fiscal deficit gives the borrowing requirement of the government elucidates.[2]
Question 8.
Does public debt impose a burden? Explain. [2]
Question 9.
Explain briefly any two objectives of a government Budget? [2]
Question 10.
Government raises its expenditure on producing public goods. Which economic value does it reflect? [2]
Question 11.
Write two features each of positive economics and normative economics. [2]
Question 12.
Suppose a consumer wants to consume two goods which are available only in integer units. The two goods are equally priced at ₹ 10 and the consumer’s income is ₹ 40. [2]
(i) Write down all the bundles that are available to the consumer.
(ii) Among the bundles that are available to the consumer, identify those which cost her exactly ₹ 40.
Question 13.
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic? [2]
Question 14.
Explain the concepts of the short run and the long run. [2]
Question 15.
Why is the total revenue curve of a price-taking firm an upward-sloping straight line? Why does the curve pass through the origin? [2]
Question 16.
How does an increase in the price of an input affect the supply curve of a firm? [2]
Section-C
Question 17.
Describe the four major sectors in an economy according to macroeconomic point of view.[3]
Or
Distinguish between stock and flow, between net investment and Capital which is a stock and which is a flow? Compare net investment and capital with flow of water into a tank.[3]
Question 18.
What is transaction demand for money? How is it related to the value of transactions over a specific period of time? [3]
Or
What is money multiplier? What determines the value of this multiplier? [3]
Question 19.
What is a production possibility frontier? [3]
Or
What is normative economic analysis? [3]
Question 20.
What does the price elasticity of supply mean? How do we measure it?[3]
Or
What are the factors responsible for shift in supply curve? How do technological changes affect the supply? Explain with help of a diagram. [3]
Section-D
Question 21.
Explain the role of cash reserve Ratio in controlling credit creation. [4]
Or
Define credit multiplier. What role does it play in determining the credit creation power of the banking system? Use a numerical illustration to explain. [4]
Question 22.
What are the assumptions of ordinal utility approach? [4]
Or
Explain with the help of a diagram, the geometric method of measuring price elasticity of demand. [4]
Question 23.
Why does a rational producer select the second stage of production? Explain. [4]
Or
What are the total fixed cost, total variable cost, and total cost of a firm? How are they related? [4]
RBSE Class 12 E-Economics Self Evaluation Test Paper 4 in English
Section-A
Multiple Choice Questions
1. Choose the correct option:
(i) The sale of goods and services of domestic country to the rest of the world is known as …………….. .[ 1]
(a) Imports
(b) depreciation
(c) Exports
(d) None of the above
(ii) Following is the cause of depreciation: [1]
(a) change in technology
(b) theft
(c) usage of fixed assets
(d) Both, (a) and (c)
(iii) Unforeseen obsolescence of fixed capital assets during production is: [1]
(a) Consumption of fixed capital
(b) Capital loss
(c) Income loss
(d) None of the above.
(iv) Which is the primary function of commercial banks?[1]
(a) Accepting deposits
(b) Advancing loans
(c) Both (a) and (b)
(d) None of these.
(v) Cash reserves of banks are part of: [1]
(a) Money supply
(b) High powered money
(c) both (a) and (b)
(d) Neither (a) nor (b)
(vi) Dividend from PSUs is a part of:
(a) Non-tax revenue
(b) Revenue Receipts
(c) Both (a) and (b)
(d) None of the above
(vii) Normative economics deals with: [1]
(a) Facts
(b) Opinions
(c) Both (a) and (b)
(d) None of these.
(viii) Goods having negative income effect are termed as: [1]
(a) inferior goods
(b) normal goods
(c) substitute goods
(d) complementary goods.
(ix) If the quantity demanded of edible oil increases by 5% when the price of ghee increases by 20%, the cross-price elasticity of demand between edible oil and ghee is : [1]
(a)-0.25
(b) 0.25
(c) -4
(d) 4
(x) The relationship of law of variable proportions is applicable in :[1]
(a) short term
(b) long term
(c) both Short term and Long term
(d) None of these
(xi) Which of the following statements is correct?[1]
(a) When the Average Cost is rising, the Marginal Cost must also be rising.
(b) When the Average Cost is rising, the Marginal Cost must be falling.
(c) When the Average Cost is rising, die Marginal Cost is above the average cost.
(d) When the Average Cost is falling, the Marginal Cost must be rising.
(xii) The vertical difference between TVC and TC is equal to : [1]
(a) MC
(b) AVC
(c) TFC
(d) None of these
Fill in the blanks :
(i) Domestic factor income = ………………… . [1]
(ii) …………………………….. has legal authority to the CRR. [1]
(iii) Primary deficit in a government budget will be zero, when ……………….. [1]
(iv) Economics is a science of …………………………… [1]
(v) A curve joining all the points representing bundles among which the consumer is indifferent is called a/an ………………….. . [1]
(vi) In a short run, at least …………………… factor/factors remain/remains fixed. [1]
Answer the following in 10-20 words :
(i) What are intermediate goods? [1]
(ii) Define capital. [1]
(iii) Define indirect taxes. [1]
(iv) State the components of money supply. [1]
(v) What is high-powered money?[1]
(vi) What are capital receipts? [1]
(vii) What is direct tax? [1]
(viii) Give your answer in true or false: study of microeconomics assumes that macro variables remain constant. [1]
(ix) How does the budget line change if the consumer’s income increases to ₹ 40 but the prices remain unchanged? [1]
(x) State two characteristics of production function. [1]
(xi) What is Opportunity Cost? [1]
(xii) What is the shape of demand curve of perfect competition?[1]
Section-B
Question 4.
Explain how distribution of gross domestic product is a limitation as a measure of economic welfare.[2]
Question 5.
Sale of petrol and diesel cars is rising particularly in big cities. Analyze its impact on gross domestic product
and welfare. [2]
Question 6.
Explain the medium of exchange function of money. [2]
Question 7.
Give the relationship between revenue deficit and fiscal deficit. [2]
Question 8.
Are fiscal deficits inflationary? [2]
Question 9.
State two sources each of revenue receipts and capital receipts in government budget. [2]
Question 10.
Tax rates on higher-income groups have been increased. Which economic value does it reflect? Explain. [2]
Question 11.
Give the meaning of economic problems. [2]
Question 12.
What do you mean by monotonic preferences?[2]
Question 13.
Suppose there are two consumers in the market for a good and their demand functions are as follows : [2]
d1(p) = 20, p for any price less than or equal to 20 and d1(p) = 0 at any price greater than 20. d2(p) = 30 – 2p for any price less than or equal to 15 and d2(p) = 0, at any price greater than 15. Find out the market demand function.[2]
Question 14.
What is the law of diminishing marginal product? [2]
Question 15.
What is the relation between market price and average revenue of a price-taking firm? [2]
Question 16.
How does an increase in the number of firms in a market affect the market supply curve? [2]
Section-C
Question 17.
Describe the Great Depression of 1929. [3]
Or
What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value-added of a firm. [3]
Question 18.
What are the alternative definitions of money supply in India? [3]
Or
What are the instruments of monetary policy of the RBI? [3]
Question 19.
Discuss the subject matter of economics. [3]
Or
Distinguish between microeconomics and macroeconomics.[3]
Question 20.
A firm earns revenue of ₹ 50 when the market price of a good is ₹ 10. The market price increases to ₹ 15 and the firm now earns revenue of ₹ 150. What is the price elasticity of the firm’s supply curve? [3]
Calculate AR and MR from the following table:
| Output in Units (Q) | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| Total Revenue in (₹) | 0 | 10 | 25 | 51 | 60 | 60 | 42 |
Section-D
Question 21.
(a) State any two components of M1 Measures of money supply. [4]
(b) Elaborate any two instruments of credit control as exercised by the Reserve Banks of India.
Or
Explain any two functions of central bank. [4]
Question 22.
Explain the effects on demand of a commodity due to: [4]
(i) Increase in income
(ii) Increase in prices of related goods
Or
Suppose demand schedule is given as follows : [4]
| Price (in ₹) | 100 | 80 | 60 | 40 | 20 | 0 |
| Quantity | 100 | 200 | 300 | 400 | 500 | 600 |
(i) Find the elasticity for the fall in price from ₹ 80 to ₹ 60.
(ii) Calculate the elasticity for the increase in price from ₹ 60 to ₹ 80.
Question 23.
Find out the average production and marginal production with the help of total production and units of variable labour factor in the following table: [4]
| Units of Variable Labour cost | Total Production (TP) |
| 0 | 0 |
| 1 | 5 |
| 2 | 12 |
| 3 | 20 |
| 4 | 28 |
| 5 | 35 |
Or
What are the average fixed cost, average variable cost, and average cost of a firm? How are they related? [4]
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