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)                    What causes a downward movement along a demand curve of a commodity?

ii)                   Define market period.

iii)                 What is meant by production function?

iv)                 Can average cost be more than marginal cost when average cost is falling?                                                                                                             [1x4]

2.         Explain three causes of a rightward shift of demand curve of a commodity.                     [3]

3.         How do changes in marginal revenue affect total revenue?                                         [3]

4.         What is meant by an economic problem? Why do they arise?                       [3]

5.         Show the effect of an increase in price on total expenditure depending on the                 values of price elasticity.                                                                                            [3]

6.         Complete the following table:                                                                                   [4]

7.      Why is the average revenue curve of a monopolist less elastic than the average      revenue curve of a firm under monopolistic competition? Explain                            [4]

8.         At a price of Rs. 40 per unit, the quantity supplied of a commodity is 400 units.              When its price falls by 10 percent, its quantity supplied falls by 36 units.    Calculate its      elasticity of supply. Is its supply elastic? Give reasons for your     answer.                                                                                                                   [4]

9.         Explain how the supply of a commodity is affected by: (a) change in the price of             inputs and (b) increase in the rate of excise tax.                                                     [4]

10.       At a given price of a commodity there is excess supply, what changes will establish equilibrium price? Explain with diagram.                                                      [6]

11.       Distinguish between returns to a factor and returns to scale. Explain the reasons for increasing returns to a factor and increasing returns to scale.                            [6]

12.       Explain the law of demand with the help of a schedule and curve. Why does the demand curve slope downwards?                                                                                 [6]

SECTION B�[INTRODUCTORY MACRO ECONOMIC THEORY]

13        .i) Why are subsidies treated as revenue expenditure?

             ii) What is meant by balance of payments?

              iii) If MPS is 0.25, calculate the value of multiplier?

             iv) Give two examples of Macro Economic variables.                              [1x4]

14.       Distinguish between Gross Domestic Product at market price and Net National product at factor cost                                                                                               [3]

                                                            OR

            Explain any three expenditures that are not included in national income.

15.       Distinguish between inflationary gap and deflationary gap.                                         [3]

16. Explain the functions of a Central Bank.                                                                          [3]

17. What is meant by revenue deficit? What are its implications?                                           [3]

18. Define foreign exchange rate. Why does the demand for foreign exchange rise when          its price falls?                                                                                                             [4]

19. Explain the components of aggregate expenditure                                               [4]

20. From the following data find out (a) net national product at market prices (b) personal disposable income and (c) net national disposable income.                                    (1+2+1) =4

                                                                                                                (Rs. In crores)

1. Gross domestic product at factor cost                                                           2,570

2. Savings of non-departmental public enterprises                                                   15

3. Consumption of fixed capital                                                                290

4. Savings of private corporate sector                                                                    85

5. Interest on public debt                                                                                       60

6. Net factor income from abroad                                                                       (-) 5

7. Income from property and entrepreneurship accruing to

    Govt. departments                                                                                            100

8. Indirect taxes                                                                                                    850

9. Subsidies                                                                                                          125

10. Current transfers from government                                                      245

11. Other current transfers from rest of the world (net)                              310

12. Corporation tax                                                                                              190

13. Direct taxes paid by households                                                                      500

21. How has money overcome the problems faced by barter system?                [4]

22. Distinguish between:

(a)    Revenue receipts and Capital receipts

(b)   Direct tax and Indirect Tax

(c)    Plan expenditure and Non-plan expenditure                                     [6]

23. Explain the equilibrium level of income with the help of Consumption + Investment curve. If planned savings is greater than planned investment, what adjustments will bring about equality between the two?                                                                                   [6]

                                                OR

Explain with the help of a diagram how aggregate demand and aggregate supply determine the equilibrium level of income?

24. Calculate GNP at market price by Expenditure method and Income Method from the following Data:                                                                                                       [3+3]

                                                                                                                        Rs. In Crores

1. Net Investment                                                                                                         200

2. Personal consumption expenditure                                                                             1000

3. Rent, Interest and Profits                                                                                           360

4. Wages and salaries                                                                                                   900

5. Government purchases of goods and services                                                            300

6. Depreciation                                                                                                   50

7.Net Indirect taxes                                                                                                      200

8. Net factor income from abroad                                                                             (-)  10

9. Employers' contribution to social security schemes                                          50