SAMPLE QUESTION PAPER 

CLASS - X

Time: 3 hours                                                                                     M.M 100

General instructions:

      All questions in both the sections are compulsory.

1. Marks for questions are indicated against each.
2. Questions 1 & 13 are very short answer questions carrying 1 mark for each part. They are to be answered in one sentence each.
3. Questions 2-5 & 14-17 are short answer questions carrying 3 marks each. Answers to them should not normally exceed 60 words each.
4. Questions 6-9 & 18-21 are also short answer questions of 4 marks each. Answers to them should not normally exceed 70 words each.
5. Questions 10-12 & 22-24 are long answer questions of 6 marks each. Answers to them should not normally exceed 100 words each.
6. Answers should be brief and to the point and the above word limits be adhered to as far as possible.
7. All parts of the question should be answered at one place.

SECTION A�[INTRODUCTORY MICRO ECONOMIC THEORY]

1.Answer the following questions:

   i). When is a good called an inferior good?

  ii). How does total fixed cost change when output changes?

 iii). Give the meaning of producer's equilibrium.

 iv).  What will you say about MPP of a factor when TPP rises at an increasing rate?      [1x4]

2. Explain the relationship between average fixed cost, marginal cost and average cost   with      the help of a cost schedule and diagram.                                                      [3]

3. Explain the problem of 'How to produce' with an example.                            [3]

4. How do changes in the income of the household affect the demand for a commodity that they buy?                                                                                                                  [3]

5. What is elastic demand? Price of a commodity falls from Rs. 4 to Rs. 3 per unit. As a result total expenditure on it rises from Rs. 200 to Rs. 300. Find out price elasticity of demand by percentage method.                                                                              [3]                                                                                                                                         

6.What will be the effect of the following changes in total revenue on marginal revenue:

a.       Total revenue increases at a decreasing rate

b.      Total revenue increases at a constant rate                                         [4]

7.Define price elasticity of supply. How is it measured in case of a straight-line supply

   curve?                                                                                                                       [4]

8. Examine the effect on output when only one input is increased and all other inputs are held constant.                                                                                                               [4]

9. Distinguish between perfect competition and monopolistic competition.                             [4]

                                                                        OR

   Explain the features of perfect competition.

10. How does a consumer reach equilibrium position when he is buying only one commodity? Explain with the help of marginal utility schedule.                                    [6]

11. How is equilibrium price of a good determined in a perfectly competitive market?  Explain with schedule and diagram.                                                                                    [6]

12. Distinguish between change in quantity supplied and change in supply of a commodity with the help of schedule and diagrams.                                                          [6]

    SECTION B�[INTRODUCTORY MACRO ECONOMICTHEORY]

13.i) Why is repayment of loan a capital expenditure?

    ii) What is meant by Balance of trade?

    iii) Define Macro Economics.

    iv) In a government budget, primary deficit is Rs. 10,000 cr. And interest payment is

        Rs. 8000 cr. How much is fiscal deficit?                                                [1x4]

14. On the basis of the following data about an economy, which constitutes of only two firms, find out:                                                                                                               [3]

(a) Value added by firms A and B,

(b) Gross domestic product at factor cost.

                                                                                                                        (Rs. in lakhs)

(i) Sales by firm A                                                                                                         200

(ii) Purchases from firm B by firm A                                                                                80

(iii) Purchases from firm A by firm B                                                                  120

(iv) Sales by firm B                                                                                                       400

(v) Closing stock of firm A                                                                                              40

(vi) Closing stock of firm B                                                                                             70

(vii) Opening stock of firm A                                                                                           50

(viii) Opening stock of firm B                                                                              90

(ix) Indirect taxes paid by both firms                                                                                60

15. What is meant by investment multiplier? How is it related to marginal propensity to consume? Explain with examples.                                                                                      [3]

16.What is meant by fiscal deficit? What problems can fiscal deficit create in an economy? [3]

17. What is the basis of categorising different items of expenditure in government budget into revenue expenditure and capital expenditure? Give two examples of each.             [3]

18.What is bank rate? How does lowering and raising of bank rate affect availability of

   credit?                                                                                                                       [4]

19. Explain how foreign exchange rate is determined in a foreign exchange market.

               [4]

                                                                        OR

Distinguish between current account and capital account of Balance of Payments account. State any two transactions of capital account.

20. Explain the 'medium of exchange' and 'store of value' functions of money.   [4]

21. What is meant by inflationary gap? Explain two measures to correct it.                     [4]

22. Why must planned savings of households be equal to planned investment of firms at equilibrium level of income and output? Explain with diagram.                            [6]

23. Will the following be included in the Domestic factor income of India? Give reasons for your answer.                                                                                                            [6]

a)      Wages paid to a non-resident Indian working in an Indian company in Malaysia

b)      Salaries of non-residents working in Indian embassies

c)      Profits earned by company in India owned by the non-residents.

d)      Profits earned by a branch of State Bank of India in England.

24. From the following data calculate (a) National Income and (b) Personal Disposable Income:                                                                                                Rs. crores          [3,3]  

i-  Private final consumption expenditure                                                   2000

ii- Private income                                                                                     3000                        

iii- Govt. final consumption expenditure                                        1,000

iv- Corporation Tax                                                                                    400 

v-  Consumption of fixed capital                                                                  200

vi- Gross domestic capital formation                                                            650

vii- Change in stock                                                                              (-)    50

viii- Net exports                                                                                    (-)    40

ix-   Net factor income from abroad                                                      (-)    30

x-  Net Indirect taxes                                                                                  150

xi- Net retained earnings of private enterprises                                   40

xii-Direct taxes paid by households                                                             200