Kerala Plus Two Question Paper 2025 Economics

KERALA BOARD

QUESTION
PAPER
2025
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Kerala Board of Public
Examinations

SY-435
Reg. No. : ......................................

Name : ...........................................

SECOND YEAR HIGHER SECONDARY EXAMINATION, MARCH 2025

Part – III Time : 2½ Hours
ECONOMICS Cool-off time : 15 Minutes
Maximum : 80 Scores

General Instructions to Candidates :
 There is a ‘Cool-off time’ of 15 minutes in addition to the writing time.
 Use the ‘Cool-off time’ to get familiar with questions and to plan your answers.
 Read questions carefully before answering.
 Read the instructions carefully.
 Calculations, figures and graphs should be shown in the answer sheet itself.
 Malayalam version of the questions is also provided.
 Give equations wherever necessary.
 Electronic devices except non-programmable calculators are not allowed in the
Examination Hall.
 
    15  ‘  ’ .
 ‘  ’    
 .
      .
    .
  , , ,   
.
   .
    .
     
    .

SY-435 1 P.T.O.

Answer any 8 questions from 1 to 10. Each carries 1 score. (8  1 = 8)

1. The Equilibrium price in a perfectly competitive market when free entry and exit is
allowed.
(a) P = Maximum of TR (b) P = Minimum of TR

(c) P = Maximum of AC (d) P = Minimum of AC

2. The famous book ‘The General Theory of Employment, Interest and Money’ was
written by :

(a) Adam Smith (b) J.M. Keynes
(c) Alfred Marshall (d) Ragnar Frisch

3. The stock of unsold finished or semi finished goods which a firm carries from one year
to next year is known as :
(a) Inventories (b) Demand

(c) Utility (d) Consumption

4. The figure shows the leftward shift of demand curve. Identify the cause of the shift
from the following :

(a) Price of the product increases

(b) Price of the product decreases

(c) Income of the consumer decreases

(d) Income of the consumer increases

SY-435 2

1  10    8  .
1  . (8  1 = 8)
1.        
   ?
(a)  = TR   (b)  = TR  
(c)  = AC   (d)  = AC  

2.  ‘      ’ 
   ?
(a)   (b)   
(c)   (d)  

3.        
    
  
(a)  (b) 
(c)  (d) 

4.        . 
     :

(a)   
(b)   
(c)   
(d)   .

SY-435 3 P.T.O.

5. The Price of one currency in terms of another currency is known as :

(a) Balance of Trade (b) Exchange rate

(c) Balance of Payment (d) Export rate

6. The inequality P1x1 + P2x2  M shows :

(a) Budget line equation (b) Budget constraint

(c) Demand function (d) Supply function

7. The difference between the government’s total expenditure and its total receipts
excluding borrowing is known as :

(a) Budget deficit (b) Revenue deficit

(c) Primary deficit (d) Fiscal deficit

8. Average Revenue (AR) =

(a) TR/Q (b) TP/Q

(c) TC/Q (d) P/Q

9. The value of MPC + MPS =

(a) 0 (b) Less than one

(c) 1 (d) Greater than one

10. Gross Value Added (GVA) at Factor Cost + Net Production Tax =

(a) Net Value Added at Market Price

(b) Net Value Added at Basic Price

(c) Gross Value Added at Market Price

(d) Gross Value Added at Basic Price

SY-435 4

5.     
(a)   (b)  
(c)   (d)  

6. P1x1 + P2x2  M     ?

(a)    (b)  
(c)   (d)  

7.        
  ?
(a)   (b)  
(c)   (d)  

8.   (AR) =
(a) TR/Q (b) TP/Q
(c) TC/Q (d) P/Q

9. MPC + MPS  

(a) 0 (b)  
(c) 1 (d)  

10.       (GVA) + 
  =
(a)     
(b)     
(c)     
(d)     

SY-435 5 P.T.O.

Answer any 4 questions from 11 to 15. Each carries 2 scores. (4  2 = 8)

11. Distinguish between Capital goods and Intermediary goods.

12. Quantity Demanded = 100 – 4P and Quantity Supplied = 8P – 20. Find equilibrium
Price and Quantity.

13. List out the four major sectors in an economy according to the macro economic point of
view.

14. The following chart shows the linkages due to the international trade. Complete the
flow chart :

15. Write any two features of Centrally Planned Economy.

Answer any 4 questions from 16 to 20. Each carries 3 scores. (4  3 = 12)

16. Write the central problems of an economy in relation with the scarcity of resources.

17. Mark equilibrium point, deficient demand and excess demand in a two sector economy :

18. List out the features of Indifference curve.

19. Write the objectives of Government Budget.
SY-435 6

11  15    4  .
2  . (4  2 = 8)

11.     .

12.    = 100 – 4P    = 8P – 20. 
   ?

13.        
   .

14.       
  .    :

15.       
.

16  20    4  .
3  . (4  3 = 12)

16.       
 .

17.      ,   (deficient
demand)  (excess demand)  .

18.     .

19.    .
SY-435 7 P.T.O.

20. Complete the table :
Quantity TFC TVC TC MC
0 100
1 150
2 180
3 200
4 210
5 215

Answer any 4 questions from 21 to 25. Each carries 4 scores. (4  4 = 16)

21. Distinguish between Fixed exchange rate system and flexible exchange rate system.

22. Explain the features of Perfectly competitive market.

23. What do you mean by Real GDP and Nominal GDP ? How we can calculate GDP
deflator ?

24. A consumer with his income of ` 80 is buying two goods Apple and Orange. The Price
of Apple is ` 10 and price of Orange is ` 5 :
(a) Write down the Budget line equation.
(b) Find Horizontal and Vertical intercept.
(c) Draw the Budget line.

25. Complete the Circular flow of income in a two sector economy :

SY-435 8

20.  
 TFC TVC TC MC
0 100
1 150
2 180
3 200
4 210
5 215

21  25    4  .
4  . (4  4 = 16)
21.        
.

22.      .

23.    ,    ,   
 ? ...   .

24.    80    , 
   .   10  
 5  .
(a)    .
(b)     .
(c)   .

25.       
.

SY-435 9 P.T.O.

Answer any 4 questions from 26 to 30. Each carries 5 scores. (4  5 = 20)

26. Explain the income method for measuring GDP.

27. Explain the optimal choice of the consumer (Equilibrium of the consumer).

28. Discuss the main components of Government Budget. Distinguish between Revenue
receipts and revenue expenditure.

29. Explain price floor with the help of a diagram.

30. List out the components of Aggregate Demand in a two sector economy. Find
equilibrium income when C = 100 + 0.8Y and Investment is 150.

Answer any 2 questions from 31 to 33. Each carries 8 scores. (2  8 = 16)

31. (a) Explain the law of variable proportions with the help of a diagram.

(b) Write the relationships between Average Product (AP) and Marginal Product
(MP).

32. (a) List out the functions of RBI.

(b) Explain the policy tools to control money supply in India.

33. Analyse the short run profit maximisation conditions of a firm in a perfectly
competitive market. Explain with the help of a diagram.
_____________

SY-435 10

26  30    4  .
5  . (4  5 = 20)
26.       .

27.     (
) .

28.       -  
 .

29.    .

30.         
 C = 100 + 0.8Y  (I) 150   
.

31  33    2  .
8  . (2  8 = 16)
31. (a)     .
(b)   (AP)   (MP)  
.

32. (a) RBI    .
(b)     
.

33.        
   . 
 .
_____________

SY-435 11 P.T.O.

SY-435 12