Goa Board Class 12 Sample Paper 2023 Economics

Sample Paper
&
Question Paper Pattern
2022
2023

GOA BOARD

FIRST TERM EXAMINATION – GOA BOARD
STD : 12TH ARTS & COMMERCE ECONOMICS

INSTRUCTIONS: MARKS: 40
a) All questions carry one mark each. DURATION : 90
MINUTES
b) Do not select more than one alternative for each question.
c) All rough work should be done on the rough sheet provided
1. What is the technique of production which uses less labour and more capital called?
o Labour intensive
o Manpower intensive
o Human resource intensive
o Capital Intensive
2. What is the cost per unit of output called?
o Opportunity Cost
o Total Cost
o Marginal Cost
o Average Cost
3. What are articles of distinction like Diamonds and Luxury cars also known as?
o Giffen’s Goods
o Prestige Goods
o Normal Goods
o Inferior goods
4. What does the Production Function explain?
o The monetary relationship between input and output
o The techniques of production
o The physical relationship between input and output
o The ratio of input to output
5. When is profit maximisation achieved?
o When Total Revenue is less than Total Cost
o When the Total Revenue exceeds the Total Cost by the greatest amount
o When Total revenue and Total Cost are equal to each other
o When Total Cost exceeds Total Revenue by the least amount
6. When the demand curve shifts to the left, it indicates___________.
o An increase in Demand
o A contraction of Demand
o A decrease in Demand
o An extension of Demand
7. ‘Output per unit of variable input’ is called ____________.
o Average Fixed Cost
o Average Product
o Average Revenue
o Average Variable cost
8. What is the study of economic activities related to individual economic units called?
o Welfare economics

o Microeconomics
o Social economics

o Macroeconomics
9. What is the price elasticity of Perfectly Inelastic Demand?
o Zero
o Less than one
o Equal to one
o Greater than one
10. A positive income effect in the case of normal goods suggests that____________.
o When income increases, demand decreases
o When income decreases, demand increases
o When income increases, demand remains unchanged
o When Income increases, demand increases
11. What is the Price Elasticity of Supply when a 20% decrease in price results in Supply
contracting by 10%?
o E 0.5
(s) =

o E =1(s)

o E = 1.5
(s)

o E =2(s)
12. Extension of demand is shown by____________.
o A shift in the demand curve to the right
o An upward movement along the demand curve
o A downward movement along the demand curve
o A Shift in the demand curve to the left
13. Using the Geometric method measurement, what is the price elasticity of demand at the
Midpoint of the Demand Curve?
o E =1(d)

o E <1(d)

o E >1(d)

o E =0(d)

14. If the Total Revenue of a firmis `20,000 after selling 50 units of a product, its Average Revenue
is____________.
o `500
o `100
o `400
o `2000
15. When does the consumer attain equilibrium through Indifference curve analysis?
o When the Price line intersects the Indifference curve at its highest point
o When the Price line is tangent to the Indifference curve
o When the Price line intersects the Indifference curve at its lowest point
o When the Price line is never in contact with the Indifference curve
16. If Total Cost of producing 15 units is `30,000 and the Total Cost of producing 14 units is `28,000,
the Marginal Cost of the 15th unit is __________.
o `1000
o `2000

o `5000
o `8000

17. What is the effect on the Demand for a commodity at present, ifconsumersexpect its price to
rise in the near future?
o Demand will expand at present
o Demand will contract at present
o Demand will increase at present
o Demand will decrease at present
18. What does a point lying on the Production Possibility Frontier indicate?
o A combination showing underutilisation of resources
o A combination showing full utilisation of resources
o A combination showing over utilisation of resources
o A combination showing zero utilisation of resources
19. When the Total Product declines, the Marginal Product _____________.
o Will increase
o Will become negative
o Will decrease
o Will Stay constant
20. Which determinant of demand is influenced by Advertisements?
o Income of the individual
o Expectations regarding future prices
o Tastes and Preferences
o Prices of related goods
21. Which combination of the two goods mentioned, will a consumer with monotonic preferences
select?
o 5 Oranges and 4 Mangoes
o 3 Oranges and 4 Mangoes
o 4 Oranges and 4 Mangoes
o 4 Oranges and 3 Mangoes
22. What is the nature of the Total Product curve during the first Stage of the Law of Variable
Proportions?
o It increases at an increasing rate.
o It increases at a diminishing rate
o It decreases at a diminishing rate
o It decreases at an increasing rate
23. The Marginal Utility derived from the consumption of the first and second glass of water
decreases from 12 utils to 9 utils respectively. What is Total Utility derived from two glasses of
water?
o 3
o 21
o 9
o 12
24. A Tabular representation of the different quantities of a commodity demanded by a single
individual at different prices is called__________.
o A market demand curve
o An individual demand schedule

o A market demand schedule
o An individual demand curve

25. When Nimish’smonthly income increased he reduced his demand for jowar and preferred to
buy wheat instead. This negative income effect on his demand for jowarsuggests that jowar
is______________.
o A Prestige good
o A Normal good
o A Luxury good
o An inferior good
26. Nazeem runs a Tailoring enterprise in Mumbai. His expenses on buttons and different
coloured threads may be classified as___________.
o Fixed costs
o Indirect costs
o Variable costs
o Overhead costs
27. Why is the Demand for rainwear in Goa relatively inelastic at the onset of the monsoon?
o Because there are many close substitutes available
o Because there is no possibility of postponement of consumption
o Because the income level is high
o Because the commodity is a luxury good
28. In a situation where a packet of Lays costs `10 and a can of Coke costs `20, which combination
can Nixon afford if he spends his entire money income `50 on these two goods?
o 2 packets of Lays and 2 cans of Coke
o 4 packets of Lays and 1 can of Coke
o 3 packets of Lays and 2 cans of Coke
o 1 packet of Lays and 2 cans of Coke
29. When Reliance Jio first launched its free 4G service, the demand for IDEA internet service
decreased. This implies that Reliance Jio and IDEA are________________.
o Inferior goods
o Prestige goods
o Substitute goods
o Complementary goods
30. How many units of output are produced if theAverage Cost is`100 and the Total Cost is `300?
o 0.33
o 6
o 3
o 0.6
31. Which Function of money is called the Asset function of money?
o Transfer of value
o Measure of value
o Store of a value
o Medium of exchange
32. What is the borrowing by the Government from the RBI called?
o Deficit Financing
o Public Borrowing
o Public Debt

o Commercial Borrowing
33. Fixed deposits are an example of ___________________.

o Secondary deposits
o Chequeable deposits
o Non-chequeable deposits
o Derivative deposits
34. The emergence of the modern banking system is the outcome of which function of money?
o Medium of exchange
o Store of value
o Standard of deferred payments
o Measure of value
35. By conducting Open - Market Operations the Central Bank ________.
o Asks banks to maintain a minimum percentage of their total deposits with it.
o Sells or purchases Government Securities to and from commercial banks
o Persuades or pressures banks to follow its instructions
o Lowers the Discount rate on money lent to the commercial banks
36. As a Lender of last resort what function does the Reserve bank perform?
o Manages the bank accounts of the government
o Helps commercial banks in times of crisis
o Maintains the foreign exchange reserve of the country
o Exclusive right to issue currency notes

37. What determines the Transaction Motive for demanding money?
o Rate of interest
o Income of the individual
o Price of Bonds
o Level of savings
38. Recently the RBI has cancelled the operating license ofMadgaon Urban Cooperative Bank.
Which instrument of monetary policy has the R.B.I. used?
o Margin requirements
o Rationing of credit
o Direct action
o Open market operations
39. Secondary deposits in banks are also called__________.
o Derivative deposits
o Prime deposits
o Demand deposits
o Time deposits
40. The motive to demand money which is determined by the rate of interest is called__________.
o Transaction motive
o Precautionary motive
o Exchange motive
o Speculative motive

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ECONOMICS
Solution set
INSTRUCTIONS: MARKS: 40
d) All questions carry one mark each. DURATION :
____MINUTES
e) Do not select more than one alternative for each question.
f) All rough work should be done on the rough sheet provided
1. What is the technique of production which uses less labour and more capital called?
o Capital Intensive
2. What is the cost per unit of output called?
o Average Cost
3. What are articles of distinction like Diamonds and Luxury cars also known as?
o Prestige Goods
4. What does the Production Function explain?
o The physical relationship between input and output
5. When is profit maximisation achieved?
o When the Total Revenue exceeds the Total Cost by the greatest amount
6. When the demand curve shifts to the left, it indicates___________.
o A decrease in Demand
7. ‘Output per unit of variable input’ is called ____________.
o Average Product
8. What is the study of economic activities related to individual economic units called?
o Microeconomics
9. What is the price elasticity of Perfectly Inelastic Demand?
o Zero
10. A positive income effect in the case of normal goods suggests that____________.
o When Income increases, demand increases
11. What is the Price Elasticity of Supply when a 20% decrease in price results in Supply
contracting by 10%?
o E(s) = 0.5
12. Extension of demand is shown by____________.
o A downward movement along the demand curve
13. Using the Geometric method measurement, what is the price elasticity of demand at the
Midpoint of the Demand Curve?
o E =1(d)

14. If the Total Revenue of a firmis `20,000 after selling 50 units of a product, its Average Revenue
is____________.
o `400
15. When does the consumer attain equilibrium through Indifference curve analysis?
o When the Price line is tangent to the Indifference curve
16. If Total Cost of producing 15 units is `30,000 and the Total Cost of producing 14 units is `28,000,
the Marginal Cost of the 15th unit is __________.
o `2000
17. What is the effect on the Demand for a commodity at present, ifconsumersexpect its price to
rise in the near future?
o Demand will increase at present
18. What does a point lying on the Production Possibility Frontier indicate?
o A combination showing full utilisation of resources
19. When the Total Product declines, the Marginal Product _____________.

o Will become negative
20. Which determinant of demand is influenced by Advertisements?
o Tastes and Preferences

21. Which combination of the two goods mentioned, will a consumer with monotonic preferences
select?
o 5 Oranges and 4 Mangoes
22. What is the nature of the Total Product curve during the first Stage of the Law of Variable
Proportions?
o It increases at an increasing rate.
23. The Marginal Utility derived from the consumption of the first and second glass of water
decreases from 12 utils to 9 utils respectively. What is Total Utility derived from two glasses of
water?
o 21
24. A Tabular representation of the different quantities of a commodity demanded by a single
individual at different prices is called__________.
o An individual demand schedule
25. When Nimish’s monthly income increased he reduced his demand for jowar and preferred to
buy wheat instead. This negative income effect on his demand for jowar suggests that jowar
is______________.
o An inferior good
26. Nazeem runs a Tailoring enterprise in Mumbai. His expenses on buttons and different
coloured threads may be classified as___________.
o Variable costs
27. Why is the Demand for rainwear in Goa relatively inelastic at the onset of the monsoon?
o Because there is no possibility of postponement of consumption
28. In a situation where a packet of Lays costs `10 and a can of Coke costs `20, which combination
can Nixon afford if he spends his entire money income `50 on these two goods?
o 1 packet of Lays and 2 cans of Coke
29. When Reliance Jio first launched its free 4G service, the demand for IDEA internet service
decreased. This implies that Reliance Jio and IDEA are________________.
o Substitute goods
30. How many units of output are produced if the Average Cost is`100 and the Total Cost is `300?
o 3
31. Which Function of money is called the Asset function of money?
o Store of a value
32. What is the borrowing by the Government from the RBI called?
o Deficit Financing
33. Fixed deposits are an example of ___________________.
o Non-chequeable deposits
34. The emergence of the modern banking system is the outcome of which function of money?
o Standard of deferred payments
35. By conducting Open - Market Operations the Central Bank ________.
o Sells or purchases Government Securities to and from commercial banks
36. As a Lender of last resort what function does the Reserve bank perform?
o Helps commercial banks in times of crisis
37. What determines the Transaction Motive for demanding money?
o Income of the individual
38. Recently the RBI has cancelled the operating license of Madgaon Urban Cooperative Bank.
Which instrument of monetary policy has the R.B.I. used?
o Direct action
39. Secondary deposits in banks are also called__________.
o Derivative deposits

40. The motive to demand money which is determined by the rate of interest is called__________.
oSpeculative motive
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MODEL BLUE PRINT

FIRST SEMESTER EXAM

STD XII

OBJECTIVES KNOWLEDGE UNDERSTANDING APPLICATION TOTAL

S.A1 S.A2 L.A V.S.A S.A1 S.A2 L.A V.S.A S.A1 S.A2 L.A
V.S.A
UNITS

Introduction 5(1) 2(1) 1(1) 08
and

Consumer
Behaviour

Theory of 4(1) 6(1) 2(1) 12
Demand and
Elasticity of
Demand

Theory of Firm 3(1) 6(1) 1(1) 10
and Theory of
Supply

Money and 4(1) 6(1) 10
Banking

16 20 04 40
TOTAL (40%) (50%) (10%)

Model Question Paper
Second Term Exam
Sub: Economics Max Marks:
40
Std : XII Arts and Commerce Time Duration: 90
min.
Instructions:

i) All questions are compulsory
ii) Marks for each questions are indicated against each to the right.
iii) Questions Nos. 1- 6 are objective type questions carrying 1 mark each.
iv) Questions Nos. 7 – 14 are short answer type carrying 2 marks each. Answers to them should
normally not exceed 40 words each
v) Questions No. 15 – 20 are also short answer type carrying 3 marks. Answers to them should
normally not exceed 60 words each.
vi) Answers should be brief and to the point and above words limits should be adhered to as far
as possible
vii) Internal choice to be exercised in questions 14 and 20

viii) Use of calculators may not be allowed

viii) All diagrams should be drawn in black lead pencil only.
-------------------------------------------------------------------------------------------------------------
1. Select the correct answer from the alternatives given below for objective
questions.
What is the income of the government which arises out of the properly left
by the people? (1)
• Fines
• Escheat
• Fees
• Income from public enterprises.

2. Which among the following is an indirect tax? (1)
• Income Tax
• Corporation tax
• Wealth tax
• Goods and Service tax

3. Which one is Not included in the calculation of National Income? (1)
• New final Goods and Services
• Earned income of Indian companies in abroad
• Expenses made by Foreign tourists in the country
• Value of intermediate goods

4. It refers to the sum total of expenditure on the domestically produced goods and
Services during the period of an accounting year (1)

• Aggregate saving
• Quantitative instrument
• Aggregate Demand

• Qualitative instrument
5. Give an economic term to a tax which is levied on a commodity on the basis of
its unit, size or weight. (1)
• Specific tax
• Value added tax
• Progressive tax
• Regressive tax

6. What are those taxes whose final burden falls on that person who makes the payment to
the government called? (1)
• Sales tax
• Direct tax
• Excise tax
• Service tax

7. What is meant by the following? (2)
i) Net export
ii) Consumption function

8. Classify the following expenditure into Revenue expenditure and Capital expenditure (2)
i) Salaries paid to Govt. employees
ii) Expenditure on bridge construction
iii) Purchase of shares
iv) Expenditure on subsidies

9. State any two features of perfect competition. (2)

10. Represent the effect of following situation on equilibrium price with the help of diagrams
i) The demand for smart phones increases due to online classes followed by equally
proportionate increase in its supply
ii) Fall in supply of fish due to ban imposed on fishing activities during monsoon however
demand for it remain same. (2)

11. What is meant by the following? (2)
i) Externalities
ii) Private income

12. Explain money flow of income with the help of a neat labelled diagram (2)

13. Explain any two components of Aggregate supply (2)

14. What is meant by the following? (2)
i) Fixed exchange rate
ii) Purchasing power parity

Or
What is meant by the following?
i) Appreciation of the domestic currency

ii) Primary Deficit

15. Explain any three objectives of Government Budget (3)

16. Explain any three features of Monopolistic competition (3)

17. Explain any three functions of the foreign exchange market (3)

18. What is meant by the following? (3)
i) Compensation of employees
ii) Operating Surplus
iii) Mixed Income

19. State and explain with the help of a neat labelled diagrams the effect on the
equilibrium price when Demand increases and supply remain constant (3)

20. Explain any three fiscal policy measures to correct excess Demand. (3)
Or
Explain any three fiscal policy measures to correct Deficient demand.

Model Question Paper

Blue Print for Std XII Second Term Exam (2021-22)
Objectives Knowledge Understanding Application Total
Units VSA SA1 SA2 VSA SA1 SA2 VSA SA1 SA2
Market Structure and equilibrium 1(2) 2(3) 1(2) 10
Price
National Income Accounting 1(2) 1(3) 1(2) 1(1) 08
Determination of Income and 1(2) 1(1) 1(2) 1(3) 08
Employment
Govt. Budget and foreign 3(1) 2(2) 2(3) 1(1) 14
exchange rate
16 20 04 40
VSA = 06Items, SA1 = 08items, SA2=06Items

Weightage to learning Objective
Sr.No. Learning Objective Weightage (%)
1 Knowledge 40
2 Under standing 50
3 Application 10
Total 100

Weightage to content (Second Term Exam)
Sr.No. Topic/Unit Weightage (%) Marks
1 Market structure and 25 10
equilibrium price
2 National Income 20 08
Accounting
3 Determination of Income 20 08
and Employment
4 Govt. Budget and foreign 35 14
exchange rate
Total 100 40

Weightage to type of Question
Sr. Type of Question Number of Marks Weightage Time
No. Question (%) Allotted(Minutes)
1 Objective type 6 6 15 10

2 Short Answer type 1 8 16 40 30
3 Short Answer type 2 6 18 45 50
Total 20 40 100 90