Kerala Plus Two Model Question Paper Economics

SAMPLE
PAPER

Reg. No: ...................................... Cool-off time: 15 Minutes
Name: ........................................... Maximum: 80 Scores/Time: 2½ Hours

SECOND YEAR HIGHER SECONDARY MODEL QUESTION PAPER, MARCH 2023

Part – III

ECONOMICS

Answer any 8 questions from question number 1 to 10 (8*1=8 marks)

1. MPC+ MPS=……………………
A. Zero B.1 C>1 D. <1
2. When Total Revenue is grater than Total Expenditure, the budget becomes……
A. Surplus B. Deficit C. Balanced D. None of the above
3. The General Theory of Employment, Interest and Money was published in the year
A. 1937 B. 1929 C.1936 D. 1930
4. The Central Bank of India is ………………..
A. RBI B. Federal Reserve C. IBRD D.IMF
5. Micro Economics is otherwise known as ………
A. Income theory B. Price theory C. Monetary theory D. Aggregate Economics
6. In the equation of Budget line, the M stands for ………….
A. Price B. demand C. Supply D. Income
7. In the long-run, all the factors are ………….
A. Variable B. Fixed C. Unchanged D. None of the above
8. Trade deficit is …………..
A. Export= Import B. Demand= supply C. Import > export D. Export- Import
9. The want satisfying power of a commodity is known as …………..
A. Demand B. Utility C. supply D. None of these
10. At equilibrium price, the demand becomes equal to…………..
A. Price B. Infinity C. Zero D. Supply

Answer any 4 questions. Each question from question number 11 to 15 carries 2 score

(4*2=8 marks)

11. Distinguish between stock and flow
12. Explain the relationship between Total Product (TP) and Marginal Product (MP)
13. Define money multiplier. If the CRR is 30 percent, estimate the value of money multiplier
14. Differentiate between normal goods and inferior goods
15. Distinguish between short run and long-run production function

Answer any 4 questions. Each question from question number 16 to 20 carries 3 score

(4*3=12 marks)

16. Explain the features of great depression of 1930’s

17. List out the difficulties of barter system
18. Do you think that GDP is a good indicator for assessing economic welfare? Justify your
arguments

19. What are the functions of a government budget
20. Fill in the following blanks with suitable economic terms
Conditions Economic terms
Export > import
Export = import
Export < import

Answer any 4 questions. Each question from question number 21 to 25 carries 4 score

(4*4=16 marks)

21. Assume that the MPC is 0.8. Calculate the government expenditure multiplier. What will be its
impact on equilibrium income if the government decides to enhance their expenditure by 100
crore?
22. Define the price elasticity of supply. Imagine that the market price of a good changes from Rs.5
to Rs.20 resulting the quantity supplied to increase from 10 kg to 25 kg. Calculate the price
elasticity of supply.
23. What do you mean by the exchange rate? Prepare a short note on different types of exchange
rate systems
24. Distinguish between micro and macro economics
25. Diagrammatically explain the changes in demand (Hint: expansion, contraction, increase and
decrease)

Answer any 4 questions. Each question from question number 26 to 30 carries 5 score

(5*4=20 marks)
26. Differentiate price ceiling and price floor. What are the implications of price celling
27. Diagrammatically explain the circular flow of income in a two-sector economy
28. List out the conditions of profit maximisation under perfect competition in short run with the
assistance of diagram
29. Define monetary policy. What are the tools used by monetary authority to control the money
supply in the economy?
30. Diagrammatically explain the determination of equilibrium income and output

Answer any 2 questions. Each question from question number 31 to 33 carries 8 score

(2*8=16 marks)
31. Explain the value-added method and income method for estimating the GDP
32. The following table gives the total cost schedule of a firm. It is also given that the average fixed
cost at 4 units of output is Rs 5. Find the values of TVC, TFC, AVC, AFC, SAC and SMC and draw
the respective curves.
Q TC
1 50
2 65
3 75
4 95
5 130

6 185

33. List out the features of indifference curve and graphically explain the consumers equilibrium