Model Question Paper 12th Economics 2025 with Answer.

Model Question Paper 12th Economics 2025 with Answers

Q 1. Choose and write the correct alternative:

i. Which of the following is current account deficit:

a. Receipts > Payments

c. Receipts = Payments

b. Receipts < Payments

d. Receipts x Payments

Answer: b. Receipts < Payments

ii. The transaction of balance of payment are divided in how many accounts by RBI:

a. Two

c. Four

b. Three

d. Five

Answer: b. Three

iii. The value of planned consumption:

a. Ex ante investment

b. Ex post investment

c. Ex ante consumption

d. Ex post consumption

Answer: c. Ex ante consumption

iv. Formula of marginal propensity to save (MPS) is:

a. ΔC/ ΔΥ

b. ΔS/ΔY

c. C/Y

d. S/Y

Answer: b. ΔS/ΔY

v. The most important determinant of consumption demand is:

a. Net income

b. Gross income

c. Household income

d. Foreign income

Answer: a. Net income

vi. From the following the saving per unit is:

a. APS

b. MPS 

C. MPC

d. APC

Answer: a. APS

Q 2. . . Fill in the blanks.

i. Slope of indifference curve is....
ii. ...............is the change in total utility.
iii. Production function is a relationship between input and .........
iv. Total cost=.............× Quantity
v. Demand curve in the perfect competition is .........
vi. Elasticity of supply is.............. in the equation e s = 20/30 × 800/200

Answer: I. Negative Slope,  ii. Marginal utility, iii. Output, iv. Average cost, v. Perfectly Inelastic, vi. More Elastic

Q 3. Write True/False:

i. Total fixed cost per unit of output is called Average Cost.

ii. When marginal cost is zero then Total Cost will be minimum.

iii. Slope of supply curve is downward.

iv. Price of a good goes down when Demand curve is shifted leftward.

v. The government imposed upper limit on the price of a good or service is called price floor.

vi. Marginal Revenue Product(L) = Marginal Cost x Marginal Product (L)

Answer: I. False, ii. False, iii. False, iv. False, v. True, vi. False

Q 4. Match the correct column:

               A.                                         B

i. Gross Domestic Product.       (a) GDP - Deprecation

ii. Gross National Product.       (b) NDP + Depreciation

iii. Net Domestic Product.         (c) Gross Investment - Deprecation

iv. Net Investment.                     (d) GDP + NFIA

v. Devaluation.                            (e) Fiscal Deficit - Net Interest Liabilities

vi. Fiscal Deficit.                          (f) less value of currency

vii. Primary Deficit.                    (g) Total expenditure - (Revenue receipts + Non-debt creating capital receipts)

Answer: I. b,  ii. d,  iii. a,   iv.   v. f,  vi. g,   vii. e

Q5. Write the answers in one sentence each:

i. Which economist used Micro word first time.

ii. What is another name of opportunity cost?

iii. Tea and Coffee are which type of goods?

iv. When total utility is constant then marginal utility will be?

v. Which type of function of money is exchange?

vi. Who can change the Bank Rate ?

vii. Write the formula of Revenue Deficit.

Answer: I. Ragner Frisch  ii. Alternative cost,   iii. Substitute goods   iv. Zero   v. Primary function  vi. RBI  vii.   Revenue Receipt - Revenue Expenditure

Q 6. Write the meaning of central planned economy.
Or
Write the meaning of market economy.

Q7.Write the formula of Consumption Function.
Or
Write the meaning and any two example of gifin Goods?

Q 8. Explain the cardinal approach of utility.
Or
Explain the Ordinal approach of utility.

Q9. Write in short Return of scale.
Or
What is the Law of variable production? Write.

Q10. Write the meaning of Opportunity Cost with an example.
Or
What is price line? Write.

Q 11. Write the features of Mixed economy.
Or
Write any two differences between Micro Economics and Macro Economics.

Q 12. Write any two limitations of barter system.
Or
Write any two functions of Money.

Q 13. Write any two Causes of demand of money.
Or
Write any two functions of Commercial Bank.

Q 14. If the value of MPS is 0.75 then find the value of MPC.
Or
If the value of MPC is 0.4 then find the value of MPS.

Q 15. If the value of MPS is 0.2 then find the value of multiplier.
Or
If the value of MPS is 0.5 then find the value of multiplier.

Q 16.  Write the measures of Government Deficit.
Or
Write any three objectives of Government budget.

Q 17. Write any three differences between devaluation and depreciation.
Or
Write any three differences between Fixed exchange rate and Flexible exchange rate.

Q 18. Explain complementary goods and substitution goods.

Or

Explain perfect elastic of demand and perfect inelastic of demand.

Q 19. Suppose the demand and supply curve of commodity x in a Perfect competitive
market is given by:
q D = 1000 - p
q  S = 700 + 2p
Find the equilibrium price

Or

Suppose the demand and supply curve of commodity x in a Perfect competitive
market is given by:
q D = 700 - p
q S = 500 + 3p
What will be the equilibrium quantity for this commodity?

Q 20. Write any four features Indifference curve.
Or
Write any four features of Utility.

Q 21. The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
L.                    TP
0                      0
1.                     15
2.                    35
3.                    50
4.                    48
5.                    40

Or

The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
L.           AP
1.           2
2.           3
3.           4
4.           4.5
5.           4
6.          3.5

Q 22. From the following data, calculate National Income by Income Method.

(In crore)
I. Remuneration of Employee. 8000
ii.  Dividends.                                 200
III. Undistributed profit.            1000
IV. Corporate profit tax.              500
V. Rent.                                        1500
VI. Interest.                                 1200
VII. Mixed Income.                      300
VIII. Net factor income from abroad -500
IX. Depreciation.          700

Or

From the following data, calculate the Depreciation.
I. National income at factor cost.              850
II. Gross domestic product at market price 1100
III. Net factor income from abroad.        100
IV. Net indirect tax.                                     150

Q 23. Explain the Multiplier Mechanism with an example.
Or
Measure the level of ex-ante aggregate demand when autonomous investment and consumption expenditure (A) is Rs. 50 crores and MPS is 0.2 and level of income (Y) is Rs. 4000 crores.