CBSE Class 12

CBSE Sample Papers for Class 12 Economics Paper 4 are part of CBSE Sample Papers for Class 12 Economics. Here we have given CBSE Sample Papers for Class 12 Economics Paper 4.

CBSE Sample Papers for Class 12 Economics Paper 4

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 4 of Solved CBSE Sample Paper for Class 12 Economics is given below with free PDF download solutions.

Time : 3 hrs
M.M.: 80

General Instructions

• All questions in both the sections A and B are compulsory. However, there is internal choice in questions of 3,4 and 6 marks.
• Question Nos. 1-4 and 13-16 are very short answer type questions, carrying 1 mark each.
  They are required to be answered in one sentence each.
• Question Nos. 5-6 and 17-18 are short answer I type questions, carrying 3 marks each.
  Answers to them should not normally exceed 60 words each.
• Question Nos. 7-9 and 19-21 are short answer II type questions, carrying 4 marks each.
  Answers to them should not normally exceed 70 words each.
• Question Nos. 10-12 and 22-24 are long answer type questions, carrying 6 marks each.
  Answers to them should not normally exceed 100 words each.
• Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section – A

Question 1.
State the economic value achieved through the spread of education in the context of production potential.

Question 2.
Why is fixed cost curve parallel to X-axis?

Question 3.
The application of fixed factor can be changed during
(a) long period
(b) short period
(c) short as well as long period
(d) None of these

Question 4.
A businessman invests his savings in a business and employs professionals to manage business. Identify implicit cost here.

Question 5.
Find out Marginal Opportunity Cost (MOC) of good X in the following schedule and also comment on the probable shape of the production possibility curve.

Question 6.
Differentiate between normal goods and inferior goods?
Or
What do you understand by the rightward shift in the demand curve? Explain it with the help of an example and diagram.

Question 7.
What do you understand by price ceiling? Write its two major implications.
Or
Explain the impact on equilibrium price and quantity when
(i) Demand is perfectly elastic and supply falls.
(ii) Supply is perfectly inelastic and demand rises.

Question 8.
A consumer consumes only two goods X and Y both priced at ₹ 8 per unit. If the consumer chooses a combination of these two goods with marginal rate of substitution equal to 8, is the consumer is equilibrium? Give reasons. Also explain, what will a rational consumer do in this situation?

Question 9.
Draw Average Revenue (AR) and Marginal Revenue (MR) curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain.

Question 10.
Is a producer in equilibrium under the following situations?
(i) When Marginal Revenue (MR) is greater than Marginal Cost (MC).
(ii) When Marginal Revenue (MR) is equal to Marginal Cost (MC).
Give reasons for your answer.

Question 11.
Explain the different conditions in which a budget line can change. Ramjas always tries to buy that basket of goods which lies on his budget line. Identify the economic value.

Question 12.
What do you understand by product differentiation? Also, explain the implications of feature product differentiation in monopolistic market.
Or
At a given price of a commodity there is ‘excess supply’. Is this the equilibrium price? If not, how will the equilibrium price be reached?

Section – B

Question 13.
What is meant by fiscal discipline?

Question 14.
Write one implication of revenue deficit of the government.

Question 15.
Which of the following systems is followed by Reserve Bank of India for issuing currency?
(a) Minimum reserve system
(b) Proportionate system
(c) Fixed fiduciary issue system
(d) Simple deposit system

Question 16.
Explain the meaning of credit money.

Question 17.
What will happen to an economy if aggregate demand falls below full employment level? Explain using a graph.
Or
Explain the role of margin requirement in correcting the problem of deflationary gap.

Question 18.
In an economy, the equilibrium level of income is ₹ 12,000 crore. The ratio of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) is 3:1. Calculate the additional investment needed to reach a new equilibrium level of income of ₹ 20,000 crore. Identify the economic value involved in increasing the investment in the economy.

Question 19.
Explain the circular flow of income in a two sector economy with the help of a diagram.

Question 20.
What is bank rate? How does it work as a method of credit control?
Or
“Introduction of money has separated the acts of sale and purchase”, Explain how?

Question 21.
Explain the importance of government budget.

Question 22.
Giving reasons, explain the treatment assigned to the following while estimating national income.
(i) Expenditure on adding a floor to building.
(ii) Payment of fees to a lawyer engaged by a firm.
(iii) Payment of interest by a government firm.
Or
Calculate National Income by
(i) Product method
(ii) Expenditure method.

Question 23.
Distinguish between inflationary gap and deflationary gap. Name two measures by which these can be corrected.

Question 24.
(i) How is fixed rate of exchange determined?
(ii) Explain the main merits of flexible exchange rate.

Answers

Answer 1.
Government’s endeavours to spread education will lead to an increase in the quality of workforce. The production potential of the country would also increase. Economic value reflected is in terms of providing better quality of workforce. Also, this is expected to shift the PPC rightwards.

Answer 2.
Fixed cost remains constant at all levels of output. So, fixed cost curve is parallel to X-axis.

Answer 3.
(a) The application of fixed factor can be changed during long period.

Answer 4.
Loss of interest on his savings is the implicit cost of businessman.

Answer 5.

Marginal Opportunity Cost \(\left( MOC \right) =\frac { Loss\quad of\quad Output\quad of\quad Y\left( \triangle Y \right) }{ Gain\quad of\quad Output\quad of\quad X\left( \triangle X \right) } \)
Since, MOC is rising, therefore Production Possibility Curve (PPC) will be concave to origin.

Answer 6.
Difference between normal goods and inferior goods are:

Or
Due to changes in factors other than the price of the commodity concerned, if more quantity at the same price is demanded, then it is termed as increase in demand and is represented by the rightward shift in the demand curve.
Increase in demand can be explained better with the below mentioned example and diagram:

As it is clear from the above schedule that at the same price of ₹ 10, demand has increased from 20 to 25 units.

In the given diagram, demand increases from OQ to OQ₁ at the same price OP.

Answer 7.
Price ceiling refers to the maximum price of a commodity that the sellers can charge from the buyers. It is generally imposed on essential commodities like foodgrains and certain medicines.

Implications
Government fixes this price lower than the equilibrium market price, so that the concerned commodity remains within the reach of poorer sections of society. Due to this, following implications of price ceiling are seen:

1. Since ceiling price is lower than the equilibrium price, there is likely to be excess demand in the market, leading to shortage of commodity.
2. To make extra normal profits, sellers generally resort to black marketing.

Or
(i) When demand is perfectly elastic and supply decreases, there will be no change in price but the equilibrium quantity will decrease. The following diagram shows that when supply decreases from SS to S₁S₁, equilibrium price remains constant at OP but equilibrium quantity decreases from OQ to OQ₁.

(ii) When supply is perfectly inelastic and demand increases, the price of the commodity will increase but the equilibrium quantity of that commodity remains constant. The following diagram shows that when demand increases from DD to D₁D₁, the equilibrium price also increases from OP to OP₁ but equilibrium quantity of that commodity remains constant at OQ.

Answer 8.
Given, P_X ₹8 P_Y ₹8 MRS_XY = 8
Consumer’s equilibrium is attained where
\({ MRS }_{ XY }=\frac { { P }_{ X } }{ { P }_{ Y } } \Rightarrow 8>\frac { 8 }{ 8 } ;\)
∴ \({ MRS }_{ XY }>\frac { { P }_{ X } }{ { P }_{ Y } } \), so the consumer is not in equilibrium.
Here, consumer can attain equilibrium only when MRS_XY starts falling and becomes equal to \(\frac { { P }_{ X } }{ { P }_{ Y } } \) (on the assumption that \(\frac { { P }_{ X } }{ { P }_{ Y } } \) is constant). This happens only when consumer starts consuming more of X in place of Y so, that he moves downward to right along the IC.
So, if \({ MRS }_{ XY }=\frac { { P }_{ X } }{ { P }_{ Y } } \), then a rational consumer would react by substituting X for Y.

Answer 9.
A firm can sell more only by lowering the price in imperfect market forms such as monopoly and monopolistic competition. In these market forms, the Average Revenue (AR) curve is downward sloping. When AR curve is falling, Marginal Revenue (MR) is less than AR. Therefore, MR curve lies below the AR curve. The slope of MR is half the slope of AR.

It can be seen from the above diagram that at the mid-point of AR curve, MR is zero and below mid-point of AR, MR becomes negative.

Answer 10.
A producer is said to be in equilibrium when he is earning maximum profits and he has no tendency to change the level of output. Producer’s equilibrium under the following situations :

1. When Marginal Revenue is Greater than Marginal Cost (MR > MC) Under this situation, the producer will not be in equilibrium because at this point, the marginal revenues from the sale of an additional unit exceeds the marginal cost incurred in producing that good.
   As a result, it will be more profitable for the producer to expand the level of output till MR becomes equal to MC and MC exceeds MR beyond the point of equality.
2. When Marginal Revenue is Equal to Marginal Cost (MR = MC) Under this situation, the producer or
   firm may or may not be in equilibrium because :
   At this point of equality of MR and MC, if MC exceeds MR beyond the point of equality, only then the producer will be in equilibrium because MR = MC is necessary but not a sufficient condition of producers’ equilibrium. The producer will be in equilibrium only when following two conditions are satisfied simultaneously i.e.,
   MR = MC and MC must cut MR from below.

Answer 11.
The budget line of a consumer can change in the conditions discussed below:
(i) When Income of the Consumer Changes Assuming price to be constant, budget line will change with a change in consumer’s income in the following ways :
(a) When Income of the Consumer Increases When income of the consumer increases, with no change in the prices of good X and good Y, then there will be a parallel rightward shift in the budget line.

With increase in consumer’s income, budget line shifts from ab to a₁b₁.
(b) When Income of the Consumer Decreases When income of the consumer decreases, with no change in the price of good X and good Y, then there will be a parallel leftward shift in the budget line.

With decrease in consumer’s income, budget line shifts from ab to a₁b₁.
(ii) When Price of Good X Changes When price of good X changes and price of good Y and income of the consumer remains unchanged, then,
(a) increase in price of good X will lead to consumer buying less units of good X. The budget line will rotate leftwards from ab to ab₁.
(b) decrease in price of good X will lead to consumer buying more units of good X. The budget line will rotate rightwards from ab to ab₂

Budget line rotates inwards when price of good X rises and rotates outwards when price of good X falls.
(iii) When Price of Good Y Changes When price of good Y changes and price of good X and income of the consumer remains unchanged, then,
(a) increase in price of good Y will lead to consumer buying less units of good Y.
The budget line will rotate leftwards from ab to a₁b.
(b) decrease in price of good Y will lead to consumer buying more units of good Y.
The budget line will rotate rightwards from ab to a₂b.

Budget line rotates inwards when price of good Y rises and rotates outwards when price of good Y falls,
(iv) When Price of Both the Goods Increases Assuming consumer’s income to be constant, when price of both the goods increase, then budget line will shift leftwards from ab to a₁b₁.

Budget line shifts leftwards with increase in the prices of both the goods.
(v) When Prices of both the Goods Decreases Assuming consumer’s income to be constant, when price of both the goods decreases, then budget line will shift rightwards from ab to a₁b₁.

Budget line shifts rightwards with decrease in the prices of both the goods.
The economic value is to consume within one’s means.

Answer 12.
Product differentiation refers to the practice of differentiating products on lines of design, colour or
packaging. In monopolistic competition, rival firms sell products which are not perfect substitutes but close substitutes of each other e.g. Pepsodent and Colgate toothpaste are close substitutes of each other due to product differentiation in their ingredients.
The implications of monopolistic competition are as follows:

1. It allows firm to have a partial control over price of their product.
2. Elasticity of demand for a product tends to be high due to presence of close substitutes.
3. Consumer’s welfare is increased due to large variety of commodity.

Or
Equilibrium price refers to the price at which market demand is equal to market supply (i.e. there is no excess demand or excess supply). So, the price with ‘excess supply’ is not the equillibrium price.
This can be illustrated with the help of the following figure :

The given figure depicts, that excess supply is equal to AB=Q₁Q₂. It implies that market supply is greater than market demand.
This puts pressure on price (OP₁) to decline. The producers reduce the quantity supplied at the lower price OP from OQ₂ to OQ. The consumers react by increasing the quantity demanded from OQ₁ (at OP₁ price) to OQ (at OP price). Equilibrium is struck at point ‘E’. Thus, OP and OQ are the equilibrium price and equilibrium quantity respectively with no excess supply.

Section – B

Answer 13.
Fiscal discipline refers to a situation when fiscal deficit is within the manageable limits and it does not lead to high rate of inflation in the country.

Answer 14.
Revenue deficit indicates that government is unable to cover its day-to-day expenses which hampers the future growth.

Answer 15.
(a) Minimum reserve system is followed by Reserve Bank of India for issuing currency.

Answer 16.
Credit money refers to deposits with banks which are withdrawable through a cheque.

Answer 17.
If aggregate demand falls below full employment level, it will lead to deflationary situations in the economy.

In this figure, AD_FE = AD at full employment level
AD_IU = AD at involuntary unemployment level or below full employment level.
The point E is the equilibrium point, where AD = AS. But at the current levels, deficient demand situation (due to involuntary unemployment) of AD_IU, the Aggregate Demand is less than the actual supply in the economy. Hence, EF is the deflationary gap.
Deflationary Gap = Deficient Demand
= AD_FE – AD_IU = EF
Or
Margin requirement refers to the margin between the market value of the security provided by the borrower and the loan amount approved. When margin is lower, the borrowing capacity of the borrower is higher.

The Central Bank has the power to change this margin. When Central Bank lowers the margin, the borrowing capacity of the borrower increases. This raises consumption expenditure and Aggregate Demand (AD) also increases which helps in correcting deflationary gap.

Answer 18.
Given, \(\frac { MPC }{ MPS } =\frac { 3 }{ 1 } \)
Let MPC be 3x and MPS be 1x
Also, MPC + MPS=1
∴ 3x + 1x = 1 ⇒ 4x = 1
\(x=\frac { 1 }{ 4 } =025\)
Or MPS = x = 025
MPC = 3x = 3 x 025 = 0.75
Now, change in income (∆Y) = ₹ 8,000
\(K=\frac { 1 }{ 1-MPC } =\frac { 1 }{ 1-0.75 } =4\)
\(K=\frac { \triangle Y }{ \triangle / } \) ⇒ ∆Y = ∆/.K
8,000 = ∆/x 4 ⇒ ∆/ = ₹ 2,000
So, investment in the economy should rise by ₹ 2,000.
The economic value reflected is concern for increasing the productive capacity of the country.

Answer 19.
In a two sector economy, there are only two sectors of economic activity namely households and firms. Households supply factor services to firms and firms hire factor services from households. Households spend their entire income on consumption. Firms sell what is produced to the households.
There are two types of markets in this economy:
(i) Product Market Market for goods and services.
(ii) Factor Market Market for factors of production.

The above figure shows that

1. Total Production of Goods and Services by firms
   = Total Consumption of Goods and Services by Households
2. Factor Payments by Firms = Factor Incomes of Households
3. Consumption Expenditure of Households = Income of Firms
4. Thus, Real Flow of Production and Consumption of Firms and Households = Money Flows of Income
   and Expenditure of Firms and Households

Answer 20.
Bank rate refers to the minimum rate at which the Central Bank of a country giveS credit to the commercial banks without any collateral. Increase in the bank rate increases the rate of interest and the cost of borrowings goes up, which discourages borrowers from taking loans which reduces the ability of commercial banks to create credit. On the other hand, a decrease in the bank rate decreases the rate of interest and the cost of borrowings goes down, which encourages borrowers to demand more loans and credit is expanded.
Or
Under the Barter system of exchange, acts of sale and purchase of a good or service were to occur at the same point of time. To buy a thing, an individual must at the same time sell something needed by the other person. But with the introduction of money (as a medium of exchange), an individual can buy a good with money without selling anything at the same time. Likewise, he can sell a good for money without buying anything at the same time. Thus, with the introduction of money, acts of sale and purchase have been separated.

Answer 21.
Importance of government budget can be explained as follows:

1. It shows revenue deficit, fiscal deficit and primary deficit of the government budget which reflects the status of fiscal discipline in the country.
2. It reflects how the government is going to influence the allocation of resources in the country.
3. It points to the efforts of the government to achieve equality in the distribution of income and wealth.
4. It is used to correct the situations of inflationary/deflationary gap in the economy.

Answer 22.
Treatment assigned to the following while estimating national income are as follows:

1. Expenditure on adding a floor to building is included in national income because it is a part of investment expenditure.
2. Payment of fees to a lawyer engaged by a firm is not to be included in estimation of national income as it is treated as part of intermediate consumption.
3. Payment of interest by a government firm should be included while estimating national*income because it
   is a kind of factor payment.

Or
(i) By Product Method
Gross Domestic Product at Market Price (GDP_MP)
= Gross Value Added at Market Price in Primary Sector + Gross Value Added at Market Price in Secondary Sector + Gross Value Added at Market Price in Tertiary Sector
= 600 + 400 + 1,400
GDP_MP = ₹ 2,400 crore
Net National Product at Factor Cost (NNPfc) = GDP_MP + Net Factor Income from Abroad – Consumption of . Fixed Capital – Net Indirect Tax
=₹ 2,400 + 40 – 300 – 240 ⇒ ₹ 2,440 – 300 – 240
∴ NNP_FC = ₹ 1,900 crore

(ii) By Expenditure Method
Gross Domestic Product at Market Price (GDP_MP)
= Private Final Consumption Expenditure
+ Government Final Consumption Expenditure
+ Gross Domestic Capital Formation (Net Domestic Fixed Capital Formation + Consumption of Fixed Capital + Change in Stock) + Net Exports
= ₹ 1,500 + 300 + [440 + 300 + (-40)] + (-100)
= ₹ 1,800 + 700 -100 ⇒ ₹ 2,500 -100
∴ GDP_MP = ₹ 2,400 crore
Net National Product at Factor Cost (NNP_FC)
= GDP_MP – Net Indirect Tax + Net Factor Income from Abroad – Depreciation
= ₹ 2,400 – 240 + 40 – 300 ⇒ ₹ 2,440 – 540
NNP_FC = ₹ 1,900 crore

Answer 23.
Difference between inflationary gap and deflationary gap are :

Two measures by which inflationary gap can be corrected:

1. Increase in bank rate
2. Increase in repo rate

Two measures by which deflationary gap can be corrected:

1. Decrease in bank rate
2. Decrease in repo rate

Answer 24.
(i) Fixed rate of exchange is not determined by the forces of demand and supply in the market. It is fixed or declared officially by the country’s concerned authority.
Such a rate of exchange has been associated with standard system during 1880-1914. According to this system, value of every currency is determined in terms of gold.
Accordingly, the ratio between gold value of the two currencies was fixed as exchange rate between those currencies.
For example,
Value of one dollar = 20 g of gold; Value of a rupee = 5 g of gold
Then, 1 $ = \(\frac { 20 }{ 5 } \) = ₹ 4
(ii) The main merits of flexible exchange rate are as follows :

• It eliminates problems of over-valuation and under-valuation of currencies as it is self adjusting and automatically removes the diseauilibrium in the Balance of Payments (BoP).
• It enhances the movement of ca *al across different parts of the world and promotes international growth.
• It enhances the opportunity for optimum utilisation of resources and raises the level of efficiency in the economy.

We hope the CBSE Sample Papers for Class 12 Economics Paper 4 help you. If you have any query regarding CBSE Sample Papers for Class 12 Economics Paper 4, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Economics Paper 3 are part of CBSE Sample Papers for Class 12 Economics. Here we have given CBSE Sample Papers for Class 12 Economics Paper 3.

CBSE Sample Papers for Class 12 Economics Paper 3

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 3 of Solved CBSE Sample Paper for Class 12 Economics is given below with free PDF download solutions.

Time : 3 hrs
M.M.: 80

General Instructions

• All questions in both the sections A and B are compulsory. However, there is internal choice in questions of 3,4 and 6 marks.
• Question Nos. 1-4 and 13-16 are very short answer type questions, carrying 1 mark each.
  They are required to be answered in one sentence each.
• Question Nos. 5-6 and 17-18 are short answer I type questions, carrying 3 marks each.
  Answers to them should not normally exceed 60 words each.
• Question Nos. 7-9 and 19-21 are short answer II type questions, carrying 4 marks each.
  Answers to them should not normally exceed 70 words each.
• Question Nos. 10-12 and 22-24 are long answer type questions, carrying 6 marks each.
  Answers to them should not normally exceed 100 words each.
• Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section – A

Question 1.
Kamakshi’s brother Divij gave her ₹ 1,000 on the occassion of Rakshabandhan. She wants to buy a jeans which costs ₹ 900 and a pair of shoes which cost ₹ 600. However, with the . available amount, she cannot purchase both and has to choose amongst the two. Which problem is being faced by Kamakshi?

Question 2.
When there are diminishing returns to factor, total product first increases at increasing rate and then starts falling. The given statement is
(a) True
(b) False
(c) Partly True
(d) None of these

Question 3.
Draw fixed cost curve.

Question 4.
For a firm, Total Cost= Total Profit= ₹ 100. This is a situation of
(a) abnormal profit
(b) normal profit
(c) break-even point
(d) Both (b) and (c)

Question 5.
Vishnu consumes two commodities X and Y, whose prices are ₹ 16 and ₹ 24 per unit whether Vishnu is in equilibrium? If not, then tell what should he do to achieve equilibrium.
Or
Differentiate between individual demand curve and market demand curve.

Question 6.
Gulf countries have acquired more capital goods by selling oil to various countries. What would be its impact on Production Possibility Curve?

Question 7.
Explain monopoly and monopolistic competition.

Question 8.
Price of a commodity rises from ₹ 5 to ₹ 6. As a result, its demand falls from 100 units to 80 units. Find out Price Elasticity of Demand (E_d) by percentage method.
Or
If a fact is given that the slope of a straight line demand curve = \(\frac { \triangle }{ \triangle Q } \), how do you relate it to own price elasticity of demand, Also, find price elasticity of demand, if demand is perfectly elastic.

Question 9.
A firm’s fixed cost is ₹2,000. Compute Total Variable Cost (TVC), Average Variable Cost (AVC), Total Cost (TC) and Average Cost (AC) with the help of the following table.

Question 10.
Explain with the help of diagram, the effect of following changes on the demand for a commodity.
(i) A fall in the price of complementary goods
(ii) A rise in the price of substitute goods.

Question 11.
State the Law of Supply, the assumptions on which it is based and exceptions to the law of supply.

Question 12.
When both demand and supply fall simultaneously, what will be the effect on
Or
Explain the effect of decrease in supply when
(i) demand is perfectly elastic
(ii) demand is perfectly inelastic

Section – B

Question 13.
What do you mean by Escheat?

Question 14.
Interest received on loans is a capital receipt of the government. Do you agree?

Question 15.
In case of credit money
(a) Money value = Commodity value
(b) Money value > Commodity value
(c) Money value < Commodity value
(d) None of these

Question 16.
What type of losses a depositor has to bear if he withdraws his fixed deposit before the due date of maturity?

Question 17.
In an economy, investment increases by ₹ 100 crore. As a result, income increases by ₹ 250 crore. What is the value of multiplier? What does this imply?

Question 18.
Distinguish between voluntary unemployment and involuntary unemployment.
Or
Write any three points of difference between ex-ante investment and ex-post investment.

Question 19.
Find compensation of employees.

Question 20.
In a developing economy, Central Bank plays a prominent role. Comment.
Or
Briefly explain the components of money supply in India.

Question 21.
‘Mission Develop India’ is the plan of government to create basic infrastructure. It comprises of projects on irrigation, roads, housing, water supply and telecommunication connectivity. Above stated example is a government expenditure or government revenue. Elaborate it. Also, state the impact of this programme on rural growth.

Question 22.
Calculate Gross Domestic Product at Market Price ( ) by using
(i) Product Method
(ii) Income Method

Question 23.
What do you understand by Aggregate Demand (AD)? Also explain its components briefly.
Or
Given that National Income is ₹ 80 crore and Consumption Expenditure is ₹ 64 crore, find out Average Propensity to Save (APS). When income rises to ₹ 100 crore and Consumption Expenditure to 178 crore, what will be the Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC)?

Question 24.
How is exchange rate determined under flexible exchange rate system? Also enumerate the sources of demand and supply of foreign exchange. If demand for foreign exchange is continuously rising then which economic value stands affected?

Answers

Answer 1.
Kamakshi is facing problem of choice. This problem arises because wants are unlimited and resources are scarce and have alternative uses.

Answer 2.
(b) The given statement is false.

Answer 3.

Answer 4.
(d) Both (b) and (c)

Answer 5.
A consumer strikes his equilibrium when, \(\frac { M{ U }_{ X } }{ { P }_{ X } } =\frac { M{ U }_{ Y } }{ { P }_{ Y } } \)
Now, as per the given information, \(\frac { M{ U }_{ X } }{ { P }_{ X } } =\frac { 6 }{ 16 } =\frac { 3 }{ 8 } \) and \(\frac { M{ U }_{ Y } }{ { P }_{ Y } } =\frac { 4 }{ 24 } =\frac { 1 }{ 6 } \)
∴ \(\frac { M{ U }_{ X } }{ { P }_{ X } } \neq \frac { M{ U }_{ Y } }{ { P }_{ Y } } \)
So, Vishnu is not in equilibrium
Now, \(\frac { M{ U }_{ X } }{ { P }_{ X } } >\frac { M{ U }_{ Y } }{ { P }_{ Y } } \left[ \because \frac { 3 }{ 8 } >\frac { 1 }{ 6 } \right] \)
Therefore, to attain equilibrium, Vishnu should start consuming more of Good X and less of Good Y so that
MU of good X declines and MU of Good Y increases till the point. Where \(\frac { M{ U }_{ X } }{ { P }_{ X } } =\frac { M{ U }_{ Y } }{ { P }_{ Y } } \)
Or
Difference between individual demand curve and market demand

Answer 6.
It is an example of growth of resources. Therefore, it results in rightward shift of Production Possibility Curve. It leads to higher level of output for the gulf countries.
It is depicted in the graph given below :

Answer 7.
Monopoly It refers to that form of market in which there is a single firm (or producer) producing a good/service, for which there are no close substitutes, e.g. Indian Railways, Reserve Bank of India, etc.
The main features of monopoly are stated below :

1. Single producer
2. No close substitutes
3. Barriers to entry
4. Independent price policy
5. Price discrimination is possible

Monopolistic Competition It is a market situation in which there are many sellers of a particular product but the product of each seller is differentiated from the other, e.g. soaps and toothpastes.
The main features of monopolistic competition are stated below :

1. Large number of buyers and sellers
2. Freedom of entry or exit
3. Product differentiation
4. Imperfect knowledge
5. Selling costs
6. High transportation costs

Answer 8.
Here, price and quantity for the commodity are as follows:

Given,
Initial Price (P)= ₹ 5 Change in Price(∆P) = ₹ 1(6-5)
Initial Quantity (Q) = 100 units Change in Quantity (∆Q) = 20 units (100 – 80)
We know that,
Elasticity of Demand \(\left( { E }_{ d } \right) =\left( – \right) \frac { \triangle Q }{ \triangle P } \times \frac { P }{ Q } \)
\(=\left( – \right) \frac { 21 }{ 1 } \times \frac { 5 }{ 100 } \)
∴ E_d = (-1)
Or
We know that, price elasticity of demand \(\left( { E }_{ d } \right) =-\frac { \triangle Q }{ \triangle P } \times \frac { P }{ Q } \)
It is given that, the slope of demand curve = \(\frac { \triangle P }{ \triangle Q } \)
We can write that, \({ E }_{ d }=\frac { 1 }{ Slope\quad of\quad Demand\quad Curve } \times \frac { P }{ Q } \)
Where, P = Initial Price, Q = Initial Quantity, ∆P = Change in Price ∆Q = Change in Quantity
So it follows that, price elasticity of demand is the reciprocal of the slope of the demand curve multiplied by the ratio of price to quantity.
If demand is perfectly elastic, slope of demand cunve = 0
By formula,
\({ E }_{ d }=\frac { 1 }{ Slope\quad of\quad Demand\quad Curve } \times \frac { P }{ Q } =\frac { 1 }{ 0 } \times \frac { P }{ Q } =\infty \)
∴ Price elasticity of demand is at infinity, if demand is perfectly elastic.

Answer 9.
Cost Schedule

Formulae used
TVC = ΣMC
AVC = TVC / units of output
TC = TFC + TVC
AC = TC / units of output

Answer 10.
(i) Complementary Goods It refers to those goods, which are used together for satisfaction of wants, e.g., car and petrol, pen and refill, needle and thread, tea and sugar, etc.
Effect of Fall in the Price of Complementary Goods The demand for a commodity increases with the fall in the price of complementary goods. If there is a fall in the prices of complementary goods, the demand curve shifts to the right which shows increase in demand at a given price of the commodity itself. The shifting of demand curve for a commodity to the right with fall in the price of complementary good is shown in the diagram given below :
Diagram Showing Increase in Demand for Complementary Goods

(ii) Substitute Goods These are those goods which can be substituted for each other, such as tea and coffee, ball pen and ink pen, etc.
Effect of Rise in the Price of Substitute Goods In case of such goods, increase in the price of one causes increase in the demand for the other, e.g. demand curve of tea shifts to right when price of the substitute commodity, i.e. coffee increases.
The shifting of demand curve for a commodity to the right with rise in the price of substitute good is shown in the diagram given below :

Answer 11.
Law of supply derives the relationship between price and quantity supplied. According to this law, quantity supplied of a commodity is directly related to the price of a commodity, provided all other determinants are constant. The quantity supplied increases with increase in price and vice-versa.
Assumptions of the Law of Supply
The various assumptions of the Law of Supply are given below :

1. There is no change in the price of the factors of production.
2. There is no change in the techniques of production.
3. There is no change in the goal of the firm.
4. There is no change in the price of related goods.

Exceptions to the Law of Supply
The following are the exceptions to the Law of Supply :

1. Agricultural Goods Law of Supply does not apply for agricultural goods, as their supply depends on climatic conditions and not on price.
2. Perishable Goods Perishable goods like fruits, vegetables, milk and milk products cannot be held for long. Therefore, suppliers are willing to supply these products, even when prices are less, for fear that they would become totally useless.
3. Antique Goods, Rare Articles and Paintings These goods are highly priced, but still their supply is limited, as supply here is affected by factors other than price, e.g., the supply of Hussain’s paintings cannot be increased even if buyers are willing to pay high price for it.
4. Future Expectations Regarding Prices If prices are rising, but sellers anticipate that they would rise further in future, then they would not increase their supply now.
5. Lack of Resources In underdeveloped or backward economies, supply cannot be increased due to lack of resources.
6. Labour Market In the labour market, it is observed that as the wage rate rises, the workers tend to work for less hours, so as to enjoy more leisure. This causes the supply of workers to decrease at increased wage rate.

Answer 12.
Equilibrium Price The price at which market demand equals market supply is termed as equilibrium price: When demand and supply both fall simultaneously, there are three possible conditions under this situation :
(i) No Change in Equilibrium Price If there is proportionately equal change in demand and supply, the equilibrium price will remain constant, as shown in the following figure :

(ii) Equilibrium Price can Fall If decrease in demand is greater than decrease in supply, then equilibrium price will fall, as shown in the following figure :

(iii) Equilibrium Price can Rise If decrease in demand is less than decrease in supply, then equilibrium price will increase, as shown in the following figure :

The effect of decrease in supply when
(i) Demand is Perfectly Elastic Decrease in supply of commodity does not cause any change in its price in case demand for the commodity is perfectly elastic. Only equilibrium quantity tends to change.

Demand is infinite at existing price. So, decrease in supply does not cause any change in price.
(ii) Demand is Perfectly Inelastic Decrease in supply of commodity causes rise in price and equilibrium quantity remains constant when demand for commodity is inelastic.

Demand is constant at every price. So, decrease in supply does not cause any change in price.

Section – B

Answer 13.
Escheat is the revenue which government makes out of the property that people leave without a legal heir.

Answer 14.
No, this is a revenue receipt of the government, as it neither increase liabilitie nor reduce assets.

Answer 15.
(b) Money value > Commodity value

Answer 16.
A depositor will loose interest and certain amount out of the principal money, if he withdraws his fixed . deposits before due date. It is a financial loss.

Answer 17.
Given, Increase in Investment (∆/) = ₹ 100 crore; Increase in Income (∆Y) = ₹ 250 crore
We know that, Investment Multiplier \(\left( K \right) =\frac { \triangle Y }{ \triangle l } \Rightarrow \frac { \triangle Y }{ \triangle l } =\frac { 250 }{ 100 } =2.5\)
This implies that for every unit increase in investment, income increases 2, 5 times.

Answer 18.
Difference between voluntary unemployment and involuntary unemployment are :

Or
Difference between ex-ante Investment and ex-post Investment are

Answer 19.
Net Domestic Product at Factor Cost (NDP_FC)
NDPFC Compensation of Employees + Operating Surplus (Profit + Interest-)- Rent) + Mixed Income
∴ Compensation of Employees = NDP_FC – Operating Surplus – Mixed Income
= 4,000 – (500 + 400 + 600) – 1,500
= 4,000 – 3,000 = ₹ 1,000 crore
So, compensation of employees = ₹ 1,000 crore

Answer 20.
In a developing economy like India, the main objective of central banking is to promote economic growth.
The role of a Central Bank in a developing economy is discussed below :

1. Control and Regulation of Banking System The Central Bank is expected to perform its traditional functions of controlling and directing the banking structure of the country.
2. Promotional Functions Since the monetary and banking structure in a developing economy is backward, the Central Bank helps in the expansion and promotion of the banking structure.
3. Developmental Functions The main problem of developing economies is economic development. The Central Bank must, therefore, take all those steps which help in the advancement of economic growth.

Or
Money supply refers to the stock of money in circulation in an economy at a given point of time. Money supply includes currency in the form of paper money and coins held by individual and business firms and net demand deposits held by commercial banks.
According to M, money measure, money supply has following components:
M₁ = C + DD + OD
Here, C is the currency held by public, DD refers to demand deposit of people with commercial bank and OD includes demand deposits with RBI of other institutions and government.

Answer 21.
It is an example of government expenditure, the principle component of fiscal policy. Such expenditure of government on construction of roads, education, defence of the country are made by the government to correct the situation of excess demand or deficient demand in the economy.
When there is excess demand, government expenditure is reduced and when there is a deficient demand, government expenditure is increased.
It is a flagship programme by the government of India. This project is an investment in rural infrastructure which will unlock the growth potential of rural India.

Answer 22.
(i) By Product Method
Gross Domestic Product at Market Price (GDP_mp)
=Value of Output (Primary Sector +Secondary Sector + Tertiary Sector)
– Intermediate Consumption (Primary Sector + Secondary Sector + Tertiary Sector)
= (2,000 + 1,800 + 1,400) – (1,000 + 800 + 600) = 5200 – 2,400
GDP_MP = ₹ 2,800 crore

(ii) By Income Method
Net Domestic Product at Factor Cost (NDP_FC)
= Compensation of Employees + Operating Surplus + Mixed Income
= 800 + 600 + 1,300 = ₹ 2,700 crores
GDP_MP = NDP_FC + Net Indirect Tax + Depreciation
= 2,700 + 20 + 80 = ₹ 2,800 crore

Answer 23.
Aggregate Demand (AD) refers to the sum total of expenditure that the people plan to incur on the purchase of goods and services produced in an economy (during the period of an accounting year) corresponding to their different levels of income.
Components of AD are: AD = C + I + G + (X-M)

1. Household Consumption Expenditure (C) This measures the demand for consumer goods .i.e. that expenditure which people wish to make on consumer goods corresponding to different levels of income in economy.
2. Producer Investment Expenditure (/) This measures the demand for producer goods which lead to capital formation i.e. that expenditure which people wish to make on producer goods corresponding to different levels of income in economy.
3. Government Expenditure (G) It refers to public consumption expenditure (such as purchase of foods and clothes for military personnel) and investment expenditure (such as construction of road) made by government.
4. Net Exports (X – M) Exports (X) increase aggregate demand in domestic economy, while imports (M) decrease it. Therefore, value of net exports (X – M) contributes to AD in domestic economy.

Or
Here in first condition, Y = ₹ 80 crore and C = ₹ 64crore
Hence, S = Y – C = 80 – 64 = ₹ 16crore
Now, Average Propensity to Save (APS)
\(APS=\frac { S }{ Y } =\frac { 16 }{ 80 } =0.20\)
Again, when income and consumption expenditure rise,
Y = ₹ 100 crore and C = ₹ 78 crore
So, Average Propensity to Consume (APC)
\(APS=\frac { C }{ Y } =\frac { 78 }{ 100 } =0.78\)
Here, ∆Y = 100 – 80 = ₹ 20 crore
∆C = 78 – 64 = ₹ 14 crore
So, Marginal Propensity to Consume (MPC)
\(MPC=\frac { \triangle C }{ \triangle Y } =\frac { 14 }{ 20 } =0.70\)
Where, ∆C = Change in Consumption, ∆Y = Change in Income
∆/ = Change in Investment, K = Multiplier
MPC = Marginal Propensity to Consume, APC = Average Propensity to Consume
APS = Average Propensity to Save

Answer 24.
Foreign exchange rate is determined by the demand and supply of foreign exchange.
The rate of foreign exchange is said to be in equilibrium, when the demand for some currency in terms of another currency equals its supply.

In the given figure, the line SS shows the supply of foreign currency which is positively related to the rate of exchange. The line DD shows the demand for foreign currency which is negatively related to the rate of exchange. The point £, at which demand is equal to supply, represents the equilibrium rate of exchange.
Sources of Demand for Foreign Exchange
Foreign exchange is demanded for the following purposes :

1. Purchase of foreign goods by domestic residents, i.e. imports.
2. Payments of international loans.
3. Gifts and grants to the rest of the world.
4. Investments in the rest of the world.
5. Tourism to abroad.

Sources of Supply of Foreign Exchange
Supply of foreign exchange depends on the following factors :

1. Purchases of domestic goods by the foreigners, i.e. exports.
2. Foreign Direct Investment as well as portfolio investment from rest of the world.
3. Speculative purchases of foreign exchange.
4. Tourism and remittances from abroad.
5. Transfer of foreign exchange by the residents of the country abroad. (IB)

If demand for foreign exchange is rising continuously then this leads to an unfavourable exchange rate. This affects the goodwill of the domestic currency in the international market.

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CBSE Sample Papers for Class 12 Political Science Paper 7 are part of CBSE Sample Papers for Class 12 Political Science. Here we have given CBSE Sample Papers for Class 12 Political Science Paper 7.

CBSE Sample Papers for Class 12 Political Science Paper 7

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 7 of Solved CBSE Sample Paper for Class 12 Political Science is given below with free PDF download solutions.

Time Allowed: 3 hours
Maximum Marks: 80

General Instructions

1. All questions are compulsory.
2. Questions nos. 1 to 5 are of 1 mark each. The answer to these questions should not exceed 20 words
3. Questions nos. 6 to 10 are of 2 marks each. The answer to these questions should not exceed 40 words
4. Questions nos. 11 to 16 are of 4 marks each. The answer to these questions should not exceed 100 words
5. Questions nos. 17 to 21 are of 5 marks each. The answer to these questions should not exceed 150 words
6. Questions no. 21 is map based question
7. Questions nos. 22 to 27 are of 6 marks each. The answer to these questions should not i exceed 150 words

Question 1.
“Non-alignment does not imply neutrality or equidistant.” What does this statement mean?

Question 2.
When did China get independence?

Question 3.
Who took the command over Pakistan after its first constitution was framed?

Question 4.
What was Bombay Plan?

Question 5.
What is foreign policy?

Question 6.
Mention any two advantages of having international organisation in the world?

Question 7.
What is military threat?

Question 8.
Which interests were hidden behind the conflicts between Hindus and Muslims at the time of independence?

Question 9.
“India’s experiment with universal adult franchise appeared very bold and risky.” Justify the statement.

Question 10.
What is ‘Mixed Economy’?

Question 11.
What is Amnesty International? State its main functions.

Question 12.
What is Human Rights Watch? Describe its main contribution to the field of Human Rights?

Question 13.
What was the significance of linguistic reorganisation of Indian states to the nation building?

Question 14.
Did the prevalence of a ‘one-party dominant system’ affect adversely the democratic nature of Indian politics?

Question 15.
What were the reasons which led to the mid-term elections in 1980?

Question 16.
Would you consider the anti-arrack movement as a women’s movement? Why?

Question 17.
Read the passage given below carefully and answer the following questions:
Each of these countries was required make a total shift to a capitalist economy, which meant rooting out completely any structures evolved during this period. Above all, it me^nt that private ownership was to be the dominant pattern of ownership of property. Privatization of state assets and corporate ownership patterns were to be immediately brought in. Collective farms were to be replaced by private farming and capitalism in agriculture. This transition rules out any alternate or ‘third way’.
(i) Name any two countries which were required to make a total shift.
(ii) Why were the collective farms to be replaced by private farming?
(iii) Since the third way had been ruled out, what were the only two ways controlling the economy?

Question 18.
Read the following passage carefully and answer the following questions:
Pakistan and Bangladesh have experienced both civilian and military rulers, with Bangladesh remaining democracy in the Post-Cold War period. Pakistan began the Post-Cold War period with successive democratic governments under Benazir Bhutto and Nawaz Sharif respectively. But it suffered a military coup in 1999 and has been run by a military regime since then. Till 2006 Nepal was a constitutional monarchy with the danger of the king taking over executive powers. In 2006, a successful uprising led to restoration of democracy and reduced the king to a nominal position. From the experience of Bangladesh and Nepal, we can say that democracy is becoming an accepted norm in the entire region of South Asia.
(i) How did Pakistan begin with Post-Cold War period?
(ii) Mention two reasons for the aspiration of democracy in South Asia.
(iii) Why these findings are significant?

Question 19.
Study the picture given below and answer the questions that follow:

(i) Who is addressing the people in the Cartoon?
(ii) What does the people symbolise in it?
(iii) On which plan the Cartoon is highlighting?

Question 20.
Read the following passage carefully and answer the following questions:
The US and Soviet Union signed a number of other arms control treaties including the Strategic Arms Limitations Treaty II (SALT II) and the Strategic Arms Reduction Treaty (START). The Nuclear Non-Proliferation Treaty (NPT) of 1968 was an arms control treaty in the sense that it regulated the acquisition of nuclear weapons, those countries that had tested and manufactured nuclear weapons before 1967 were allowed to keep their weapons; and those that had not done so were to give up the right to acquire them. The NPT did not abolish nuclear weapons; rather, it limited the number of countries that could have them.
(i) What is arms control treaty?
(ii) Was NPT an arms control treaty? Why?
(iii) What was the intention behind regulation of NPT?

Question 21.
On an outline map of India, five states are marked as A, B, C, D and E where National Democratic alliance (NDA) came to power after the Lok Sabha elections 2004. Identify the states and write their names.

Question 22.
The 1977 elections for the first time saw the opposition coming into power at the centre. What would you consider as the reasons for this development?
OR
Do movements and protests in a country strengthen democracy? Justify your answer with examples.

Question 23.
What led to the emergence of bipolar world? What were the arenas of Cold War between the two power blocs?
OR
What set of conflicts had occurred in Soviet Republics? Explain.

Question 24.
How did the Soviet Union suddenly disintegrate? Explain any six reasons. (A.I. 2016)
OR
Explain the importance and role of concept common but differentiated pertaining to environment. (Delhi 2013)

Question 25.
Throw light on the Swatantra Party and its policies.
OR
What was the major thrust of the First Five Year Plan? In which ways did the Second Plan differ from the first one?

Question 26.
Why did India declare the policy of Non-alignment? Describe the principles and policy of Non-alignment.
OR
How do the critics view the process of globalisation?

Question 27.
How did the coalition like character of the Congress Party give it an unusual strength?
OR
Explain any two merits and two demerits each of the Green Revolution.

Answers

Answer 1.
Neutrality refers to a policy of staying out of war and not to help end a war. Non-aligned countries including India worked to prevent wars and rivalries between others.

Answer 2.
1949

Answer 3.
General Ayub Khan.

Answer 4.
Bombay Plan was drafted in 1944 in the want of states to take major initiatives in industrial and other economic investment through a joint proposal of a section of the big industrialist for setting up a Planned Economy.

Answer 5.
Foreign policy of a nation reflects systematic statements of national interests along with the interplay of domestic and external factors.

Answer 6.

• To help countries in the matters of conflicts and differences.
• To make the countries cooperate and create better living conditions for humanity.

Answer 7.
Military threat refers to military action from another country to endanger the core values of country’s sovereignty, independence, and territorial integrity. Military action often targets the men and women i.e. ordinary citizens.

Answer 8.
Hindu and Muslim communities bear some political interests at the time of independence:

• Muslim League demanded a separate nation for Muslims to protect the interests of Muslims only.
• There were some Hindu organisations also which made efforts to look after the interests of Hindus only to make India a ‘Hindu Nation’.

Answer 9.
Because :

• Country’s vast size and electorates made these elections unusual.
• The year 1952, it was a big test for poor and illiterate country.
• Till then, democracy had been existed only in the prosperous countries mainly in Europe and North America where everyone was almost literate.

Answer 10.
Mixed economy is an economy to co-exist private and public sector both:

• Both the sectors work within invisible lands of market forces and visible lands of planning set by government.
• ‘State own’ means of production to aim social welfare and ‘private own’ means of production to be regulated by states.

Answer 11.
It is an NGO that campaigns for the protection of Human Rights.
Functions :

• It prepares and publishes reports on human rights.
• It mainly focuses on the misconduct of the government authorities.
• It works for the protection of the human rights.

Answer 12.
Human Rights refer to an international NGO involved in research and advocating on human rights. It is the largest international organisation in the USA.

• It draws the global media’s attention to human rights abuses.
• It helped in building international coalitions to ban landmines.
• It made efforts to stop the use of child soldiers, and to establish the international criminal court.
• It advocates freedoms in connection with fundamental rights of human beings, such as freedom of religion and freedom of the press.
• It opposes violations of what it considers basic human rights, which include capital punishment and discrimination on the basis of sexual orientation.

Answer 13.
In the early phase, it was felt that linguistic states may foster separatism and create pressures on newly founded nation. But India considered democracy and federalism by making a favour to linguistic states:

• Linguistic states enhanced democratic practices.
• Linguistic states reduced separatist attitude by accepting the regional linguistic claims of all regions.
• Linguistic reorganisation provided a uniform base to the nation and strengthened unity of nation.
• Linguistic states promoted the principle of unity in diversity, a distinct feature of nation.

Answer 14.
No, the prevalence of one party dominance system did not affect adversely the democratic nature of Indian politics because:

• The key role of the Congress in the freedom struggle gave it a head start over others.
• The Congress accommodated diversified interests, religion, beliefs and aspirations to strengthen democracy.
• Despite being taken place of free and fair elections, Congress won elections in the same manner again and again.
• The Congress Party consisted of various factions inside itself, based on ideological considerations who never taught together or went out of Congress.
• Hence, on the basis of above mentioned criterion, it can be concluded that Congress strengthened ideals of democracy and held unity and integrity of the country.

Answer 15.

• Janata Party lacked direction, leadership and a common programme.
• Janata Party government could not bring a fundamental change in policies pursued by Congress.
• There was a split in Janata Party and the government led by Morarji Desai which lost its majority in less than 18 months.
• Ch. Charan Singh government was formed due to support of Congress party which later decided to withdraw its support resulting resignation of Charan’Singh government within four months.
• All the above mentioned reasons led mid-term elections of 1980, which defeated Janata Party and again Congress led by Indira Gandhi came back to power by winning 353 seats.

Answer 16.
Yes, we would consider the Anti-arrack movement as a part of women’s movement to provide a platform for women to discuss private issues of domestic violence:

• This movement focused on issues of sexual violence against women either within family or outside.
• Women joined the campaign against dowry and demanded personal and property laws based on gender equality.
• These campaigns contributed a great deal in increasing social awareness as well as shifted from legal reforms to open social confrontations.
• Consequently, movement demanded equal representation to women in politics during the nineties. Hence, 73rd and 74th amendments granted reservations to women in local level political offices.

Thus, it can be concluded to be a part of women’s movement.

Answer 17.

• Russia and Kazakhstan.
• Private ownership was to be the dominant factor of ownership property. Collective farms were replaced by private farming and capitalism agriculture.
• Capitalist economy and Shock Therapy.

Answer 18.

1. Pakistan began with Post-Cold War period with successive democratic government under Benazir Bhutto and Nawaz Sharif.
2. Ordinary citizens rich or poor or belonging to different religions or institutions view democracy more suitable and support them.
3. Because it was earlier believed that democracy could flourish and find support only in prosperous countries of the world.

Answer 19.

• Pt. Jawaharlal Nehru is addressing the people in the Cartoon.
• The people sitting in the Cartoon are starved people who symbolise the poverty of India.
• The Cartoon is highlighting the Third Five Year Plan. The main aim of this plan was to make balance between agriculture and industry for achieving take off position.

Answer 20.

• To regulate the acquisition or development of weapons among countries,
• Yes, because it regulated the acquisition of nuclear weapons to protect world from large seat destruction.
• It did not abolish nuclear weapons rather it limited the number of countries that could have them.

Answer 21.
A — Himachal Pradesh,
B — Arunachal Pradesh,
C — Punjab,
D — Chhattisgarh and
E — Rajasthan

Answer 22.
The 1977 elections were evolved as a shock to everyone as Congress Party was defeated for the very first time and opposition party came into power:

• The opposition adopted the slogan ‘Save democracy’ against imposition of Emergency earlier.
• The opposition campaigned non-democratic character of rule which provided various excesses.
• The opposition party highlighted the preventive detention and press censorship to favour public opinion.
• Janata Party also ensured not to divide non-Congress votes.
• Middle section of north India was moving away from Congress for whom Janata Party became a platform.
• Hence, elections of 1977 emerged many other factors instead about Emergency only.

OR

Yes, to some extent movements and protests in country strengthen democracy to have mixed reactions both for and against:
Arguments for :

1. Anti-arrack movement, Chipko movement, NBA etc., rectified some problems to be seen as integral part of democratic politics.
2. These movements ensured participation and representation from diverse groups to
   reduce possibility of deep social conflicts in democracy. ‘
3. These movements broadened the idea of participation in Indian democracy i.e., Anti¬arrack movement and Dalit Panthers.

Arguments against :

1. Collective actions, rallies, strikes, disrupt the functioning of a democracy and create a delay in decision making.
2. Routine functioning of democracy did not have enough space for the voices of these social groups.
3. It is possible to ignore demand of these movements with the presentation to be represented by one section of society only.
4. Political parties do not seem to be taking up issues of marginal social groups.
5. The relationship between popular movements and political parties has grown weaker over the years creating a vacuum in politics.

Hence, we may conclude that movements are not only about collective assertions or rallies or protest, but they also involve a gradual process of coming together of people with similar problems, demand and expectations.

Answer 23.
Emergence of bipolar world :

• Two superpowers expanded their own spheres of influence in different parts of the world.
• It divided the world into two alliances namely Western and Eastern alliance headed by the US and Soviet Union respectively.
• The smaller states in alliances got the promise of protection of weapons and economic aid against their local rivals, hence they remained tied to its protective superpowers to limit influence of other superpower and its allies.

Arenas of Cold War :

• Crisis and war occurred between alliance systems but did not cross certain limits.
• Many lives were lost in Korea, Vietnam and Afghanistan, but world was spared from nuclear war and global hostilities.
• The Cold War led to several shooting wars but it did not lead to another World War despite direct confrontations in Korea (1950-53), Berlin (1958-62) and the Congo (the early 1960s).

OR

1. In Russia :

• Chechnya and Dagestan had violent secessionist movements.
• Moscow’s method to deal with Chechen rebels and indiscriminate military bombings led to many human rights violation but for deter aspirations for independence.

2. In Central Asia:

• Tajikistan witnessed a civil war that went on for ten years till 2001.
• In Azerbaijan’s provinces of Nagorno-Karobakh, some local Armenians want to secede and join Armenia.
• In Georgia, the demand for independence came from two provinces resulting in a civil war.
• There are still movements against the existing regimes in Ukraine, Kyrgyzstan and Georgia. .
• Even countries and provinces are fighting over river water.

3. In Eastern Europe :

• Czechoslovakia split peacefully into two with the Czechs and Slovaks, forming independent countries.
• The severe conflict took place in the Balkan republics of Yugoslavia.
• After 1991, Yugoslavia broke apart with several provinces like Croatia, Slovania, Bosnia and Herzegovina declaring independence.
• Ethnic Serbs opposed this and a massacre of non-Serbs Bosanians followed.
• The NATO intervention and the bombing of Yugoslavia followed inter-ethnic Civil war.

Answer 24.
Inspite of all perfection, the Soviet system was full of loopholes.

1. The system was bureaucratic and over-centralised making life difficult for people.
2. It stifled the initiative of people due to lack of democracy and absence of freedom of speech and expression.
3. Nearly all the Soviet institutions needed reforms but the strict one party control by the communist party made all the institutions unaccountable to the people.
4. The Communist Party even refused to give freedom so people of 15 different republics of Soviet Union to retain and manage their own affairs including cultural affairs.
5. Though Russian Federation was only one of the 15 Soviet republics, it dominated the helm of affairs, neglecting people from other regions and making them feel oppressed.

Soviet system becatne so weak and Soviet economy stagnant due to the following reasons:

1. The Soviet economy used much of its resources in maintaining nuclear and military arsenals.
2. Soviet economy concentrated on the development of its satellite states in Eastern Europe especially in the five central Asian republics.
3. This led to a huge economic burden on people to be coped up with.
4. Ordinary citizens became more knowledgeable about the economic advancement of the West and backwardness of Soviet system.

OR

Compromise and accommodation are the two essential policies to Save Planet Earth by the states but the states from North and South have different notions towards environmental issues:

1. The Northern States (Developed) are concerned with Ozone depletion and global warming whereas Southern States (Developing) want to address the relationship between economic development and environmental management.
2. The developed countries of the North want to discuss the environmental issues which stands equally responsible for ecological conservation.
3. The developing countries of the South feel that much of the ecological degradation in the world is created by developed countries through their industrial projects.
4. And if developed countries cause more environmental degradation they are supposed to take more responsibility on wards.
5. The developing countries are under process of industrialization .and they should be exempted from restrictions imposed on developed countries through various conventions like Kyoto Protocol etc.
6. The special needs of developing countries must be taken into considerations in the process of development, application and interpretation of rules of International Environmental Law.

All the above mentioned provisions were accepted in Earth Summit, 1992 while adopting common but differentiated responsibilities.

Answer 25.
The Swatantra Party was formed in August 1959 after the Nagpur resolution of the Congress which called for land ceiling, takeover of food grain trade by the state and adoption of cooperative farming. The party was led by old Congress leaders like C. Rajagopalachari, K.M. Munshi, N.G. Ranga and Minoo Masani. The party stood out from the other in terms of its position on economic issues.

The Swatantra Party wanted the government to be less and less involved in controlling the economy. It believed that prosperity could come only through individual freedom. It was critical of the development strategy of state intervention in the economy, centralised planning, nationalisation and the public sector. It instead favoured expansion of a free private sector.

The Swatantra Party was against land ceilings in agriculture, and opposed cooperative farming and state trading. It was also opposed to the progressive tax regime and demanded dismantling of the licensing regime. It was critical of the policy of non-alignment and maintaining friendly relations with the Soviet Union and advocated closer ties with the US.

The Swatantra Party gained strength in different parts of the country by way of merger with numerous regional parties and interests. It attracted the landlords and princes who wanted to protect their land and status that was being threatened by the land reforms legislation. The industrialists and business class who were against nationalisation and the licensing policies also supported the party. Its narrow social base and the lack of dedicated cadre of party members did not allow it to build a strong organisational network.

OR

The First Five Year Plan was commenced in 1951 to be drafted by young economist K.N. il Roy with the emphasis on poverty alleviation. Jawaharlal Nehru, the first Prime Minister of India presented this to the Parliament of India. Its main thrusts were as follows:

• To invest in dams and irrigation to improve agricultural sector with the urgent j attention.
• Huge allocations were made for large scale projects like Bhakra-Nangal dam.
• It focused on land reforms for the development in rural areas.
• It aimed to increase level of national income.

The First Five Year plan differed from the Second Five Year plan:

• The Second Five Year Plan stressed on heavy industrialisation.
• It wanted to bring quick structural transformation in all possible directions in place of slow and steady growth like First live Year Plan.

Answer 26.
India decided not to align itself to any of the military alliances. It declared its foreign policy as a policy of Non-alignment.
Non-aligned Movement (NAM) was formed in 1961. The founding members were Pt. Jawaharlal Nehru (India), Marshal Tito (Yugoslavia), Nasser (Egypt), Nkrumah (Ghana) and Sukarno (Indonesia).

The principles of NAM were formulated. Non-alignment does not mean that India will remain neutral and not take any position on major world problems. It simply means that India will not join any of the military alliances.

The Indian national movement was part of the worldwide struggle against colonialism and imperialism. It influenced the liberation movements of many Asian and African countries. Prior to India’s Independence, there were contacts between the nationalist leaders of India and those of other colonies, united as they were in their common struggle against colonialism and imperialism. The creation of the Indian National Army (INA) by Netaji Subhash Chandra Bose during the Second World War was the clearest manifestation of the linkages established between India and overseas Indians during the freedom struggle. The foreign policy of a nation reflects the interplay of domestic and external factors. Therefore, the noble ideals that inspired India’s struggle for freedom influenced the making of its foreign policy. But India’s attainment of independence coincided with the beginning of the Cold War era.

OR

Globalisation has invited some strong criticisms also despite its positive impacts. Its critical arguments can be categorized as:

1. Economic
2. Political
3. Cultural

1. Economic :

• Reduction in subsidies on mass consumption goods to make foreign creditors powerful.
• It has grown disparity between the rich and the poor nations by making the rich more richer and the poor more poorer.
• Even states have also created the same disparities between developed and developing nations.

2. Political :

• Welfare functions of the state has been reduced.
• Sovereignty of states has been affected.
• States have become weak to take their own decisions.

3. Cultural :

• People lose their age old values and traditions.
• The world begins to look more like the dominant power over less powerful society.
• It leads to shrinking of rich cultural heritage of the entire globe.

Answer 27.

1. By the time of independence, the Congress was transferred into social coalition broadly representing India’s diversity in terms of classes and castes, religions and languages and various interests. Many of these groups merged than identify within the Congress,
2. The Congress Party became a social and ideological coalition for it merged different social groups along with their identity holding different beliefs:
3. The Congress was already a very well-organised party and by the time the other parties could even think of a strategy, the Congress had already began its campaign. In fact, many parties were formed only around independence or after that. Hence, the Congress had the first off the blocks advantage.
4. In pre-independence days, many organisations and parties with their own constitutions and organisational structures were allowed to exist within the Congress.
5. The Congress evolved as a pressure group in the beginning, but with the Civil Disobedience Movement, it launched to widened its social based and thus, it became a social coalition.
   • The party provided enough space to all sections of people like peasants and industrialists, urban dwellers and villagers, owners and workers, upper, middle and lower classes.
   • It also defined the area of leadership beyond the upper caste and upper class professionals to agriculture-based leaders with a rural orientation.
6. Congress became a platform for numerous groups, interacts and even political parties to take part in the national movement.

OR

Green Revolution was introduced in 1966 to bring about revolutionary changes in agriculture especially in foodgrains like wheat and rice to increase production through high yielding varieties of seeds, fertilisers and scientific irrigation—

1. The government offered high yielding varieties of seeds, fertilizers, pesticides and better irrigation facilities at subsidised prices to farmers.
2. The government fixed the prices also to purchase the produce of farmers at a given price.

Positive consequences or merits of the Green Revolution:

1. In many parts, the stark contrast between the poor peasantry and the landlords produced conditions favourable for left wing organisations to organise the poor peasants.
2. Also the government offered various irrigational facilities at a subsidised prices, and high-yielding varieties of seeds.
3. It resulted in the rise the ‘Middle peasant sections’ who were farmers with medium size holdings. They benefitted from the changes and soon emerged politically influential in many parts of country.

Negative consequences or demerits of the Green Revolution:

1. This created a stark contrast between the poor peasantry and the landlords.
2. It delivered only a moderate agricultural growth i.e. a rise in rice and wheat production by raising availability of foodgrains in country.
3. It increased polarisation between the classes and regions like Northern States i.e. Punjab, Haryana, West-UP become agriculturally rich but others remained backward.

We hope the CBSE Sample Papers for Class 12 Political Science Paper 7 help you. If you have any query regarding CBSE Sample Papers for Class 12 Political Science Paper 7, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Physical Education Paper 7 are part of CBSE Sample Papers for Class 12 Physical Education. Here we have given CBSE Sample Papers for Class 12 Physical Education Paper 7.

CBSE Sample Papers for Class 12 Physical Education Paper 7

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 7 of Solved CBSE Sample Paper for Class 12 Physical Education is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 70

General Instructions:

• All questions are compulsory.
• Answers to questions carrying 1 mark should approximately 10-20 words.
• Answers to questions carrying 3 marks should approximately 30-50 words.
• Answers to questions carrying 5 marks should approximately 75-100 words.

Questions.

Question 1.
What do you mean by planning in sports? 1

Question 2.
Define Food supplement. 1

Question 3.
Define Disability. 1

Question 4.
What is meant by OCD? 1

Question 5.
Define Tadasana. 1

Question 6.
Define Posture. 1

Question 7.
What do you understand by eating disorder? 1

Question 8.
How will you measure Muscular Strength? 1

Question 9.
Define Sports Medicine. 1

Question 10.
Define Strength. 1

Question 11.
What is friction? 3

Question 12.
Describe three disadvantages of League Tournament. 1

Question 13.
How will you define Food intolerance? 3

Question 14.
Explain the procedure and benefits of Bhujangasana. 3

Question 15.
My uncle, facing age-related health problems specially High Blood Sugar, Obesity and Hypertension etc. I consulted my physical education teacher regarding my uncle‘s health problem because once he had discussed this topic in class. He told me that he will meet my uncle at home. He came and suggested my uncle to start regular exercise or walking for at least one hour. My uncle started regular walking. After few months his above mentioned problems reduced. On the basis of the above passage, answer the following questions. 3
(i) Which two values are shown by the physical education teacher and the nephew?
(ii) What are the common age-related health problems?
(iii) Do physical activity help in maintaining functional fitness of aged population? State in brief.

Question 16.
Explain Harvard step test. 3

Question 17.
Explain three long term effects of exercise on circulatory system. 3

Question 18.
Write about the management of strain. 3

Question 19.
Explain the method of Speed development? 3

Question 20.
What is Bye? Draw a fixture of 21 teams on knock-out basis. 5

Question 21.
Elaborate the requirement of food intake for, during and after competition. 5

Question 22.
Explain postural deformities and their corrective measures in detail. 5

Question 23.
Explain arm curl test for upper body strength. 5

Question 24.
Explain gender differences in physical and physiological parameters. 5

Question 25.
Explain motivation and its types in details. 5

Question 26.
What is sports training? Explain the method of strength development. 5

Answers.

Answer 1.
According to Mitchell, “Planning is usually interpreted as a process to develop a strategy to achieve desired objectives, to solve problems and to facilitate action”.

Answer 2.
Food supplement is the concentrated sources of nutrients taken as dietary top-up like vitamins, minerals and herbs.

Answer 3.
Disability is an injury that restricts the functions or movements of a person.

Answer 4.
OCD is Obsessive – Compulsive Disorder. It is a common, chronic and long lasting disorder in which a person has uncontrollable, reoccurring thoughts which are characterized as obsessions.

Answer 5.
Tada = Palm tree. Tadasana is the beginning and ending asana of Surya Namaskar.

Answer 6.
The arrangement of body and its limbs is known as posture.

Answer 7.
Eating disorder is defined by abnormal eating habits that negatively affect a person’s physical or mental health.

Answer 8.
Greatest amount of force that muscles can produce in a single maximal effort.

Answer 9.
Sports medicines concerns all those medical problems that may affect athlete, professional
and amateur.

Answer 10.
Ability to exert power.

Answer 11.
Force acting along two surfaces in contact which opposes the motion of one body over the other.

Answer 12.
Disadvantages:
(i) It requires more time.
(ii) It costs more.
(iii) It requires more arrangement for sport officials and teams.
(iv) Most of the teams become psychologically down due to their defeat again and again.

Answer 13.
When individual elements of certain foods that cannot be properly processed and absorbed by our digestive system it is called as food intolerance. Its causes can be the absence of activity of breaking enzymes, diet related and due to illness. Its symptoms are nausea, stomach pain, diarrhoea, vomiting and headache.
Management of food intolerance:

• Seek expert medical help.
• There are many therapies-fructose intolerance therapy, histamine intolerance therapy, lactose intolerance therapy.

Answer 14.
Procedure – Lie down keeping the legs together, Put palms beside shoulders, head resting on the floor,Inhale, raise head up to the navel region and try to see the roof, 10 -60sec- maintain this position, inhale and exhale steadily,Return to original position slowly with deep exhalation, i 3-5 min.
Benefits – Develops flexibility of spine and leads to curing backache, Reduces stress, giving good massage to adrenal gland, Expands chest for normal breathing.

Answer 15.
(i) Care and concern
(ii) Obesity, backache, stress
(iii) Yes, yoga and regular exercise helps in keeping a person physically and mentally fit, refreshing the mind.

Answer 16.
Harvard step test was developed by Brouha and his associates in 1943. Purpose of this test is to measure cardiovascular fitness.
Equipment required:

1. Bench which is 20 inches/50.8 cm high.
2. Stopwatch
3. Metronome.

Procedure – The athlete is instructed to step up and down on the platform at a rate of 30 steps per minute for 5 minutes or until exhaustion occurs. The exhaustion is defined as when the athlete cannot maintain the stepping rate for 15 seconds and this can be administered by metronome. After the completion of stepping, the athlete is advised to step down. After this heart rate is measured between 1 to 1.5 minutes after finishing. The heart rate is the number of times the heart beats per minute.

Answer 17.
Long term effects of exercise on circulatory system:

• Stroke volume increases at rest – It is the volume of blood ejected per beat from left ventricle, it is increased to 90-110 ml/beat in elite endurance athletes via regular exercise.
• Blood flow increases – Supply of oxygen during exercise increases, so body increases its capillaries, as a result distribution of blood becomes more efficient.
• Decreases the blood pressure – Systolic and diastolic blood pressure decreases by 10 mm Hg at rest.

Answer 18.
Strain can be prevented by warming up and conditioning. Taping, knee caps, crape bandage can be helpful in preventing strain. The injured part should be elevated in the most comfortable position. The affected part should not be disturbed. An ice pack should be applied to affect joint or muscle to minimize the swelling. The ice must be applied for 20 minutes 6-10 times in first 24 hours. Next day heat and massage is given to absorb the clot

Answer 19.
Methods of speed development are:

• Acceleration runs – Adopted to develop speed, especially in attaining maximum speed from stationary position, runs are repeated again and again with sufficient intervals, sprinters usually achieve their maximum speed in 6 seconds after stationary position.
• Pace runs or races – Running the whole distance of race at a constant speed, athlete runs the race with uniform speed, in longer races such as 800m or above races he must conserve his energy by reducing his speed.
• Development of reaction time – Reaction time is the time taken to respond to a stimulus.

Answer 20.
Bye is a practice of allowing a player or team to advance to the next round without playing first round of the tournament.

Answer 21.
Food is a mixture of various substances which are essential for life whereas nutrition is a dynamic process in which body is made healthy by consumption of food. Sports nutrition is known as study and practice of nutrition and diet as it relates to sports performance. Good and adequate nutrition helps athletes to train hard, recover quickly and adapt more effectively with less risk of illness and injury. If an athlete lacks any constituents of diet it affects his or her performance. On the other hand, if he/she takes more than required calories, it shall hamper the performance and increase the body weight. Thus diet plays a crucial role in performance.

1. Fluid intake:
   • Before the competition – Drink at least 500 ml of water before 2 hours of the match.
   • During the competition – 180-240 ml of water should be consumed for matches lasting for less than an hour. For matches lasting more than one hour, consume 150-300 ml of water or carbohydrates after every 20 min.
   • After the competition – Take sodium after the competition.
2. Meal intake:
   • Before the competition – 80%-90% carbohydrates.
   • During the competition – Light food, low fat, low protein.
   • After the competition – Carbohydrate intake within 15 min to restore glycogen.

Answer 22.
In knock-knees both the knees knock or touch each other in normal standing position. The gap between ankles goes on increasing. The corrective measures for knock-knees are side steps-ups: done on weight bench and lying abduction.

Flat foot is found in newly bom babies. Children feel pain in the feet and cannot be efficient sports persons. It becomes a postural deformity if it still persists in the lateral childhood. The corrective measures for flat foot are heel stretch and using proper shoes.

Round shoulders is a postural deformity where shoulders become round and sometimes they seem to be bent forward. The corrective measures for round shoulders are standing chest stretch and supine chest stretch.

Lordosis is a deformity of increased forward curve in the lumber region. The corrective measures for Lordosis are hip flexor stretch and lower back stretch.

In bow-legs, there is a wide gap between the knees when standing with feet together. The Corrective measures for bow-legs are leg strengthening exercises and pilates (lying down on back and lifting both legs up off the ground and quickly move legs up and down).

Kyphosis is an increase of backward or posterior curve or a decrease or reversal of a forward curve. The corrective measures for Kyphosis are maintain good posture and do stretching while sitting on chair.

Answer 23.
Rikli and Jones test was developed by Dr. Roberta and Dr. Jessie Jones of Fullerton University. It is done to measure fitness level of senior citizens. It includes:

• Chair Stand Test – To measure leg strength and endurance
• Arm Curl Test – To measure upper body strength
• Chair Sit and Reach Test – To measure flexibility of lower body
• Back Scratch Test – To measure range of motion of shoulder
• Eight Foot Up and Go Test – To measure speed, agility and balance while moving
• Six Minute Walk Test – To measure aerobic fitness Arm Curl Test

Purpose – To measure upper body strength.
Equipment Required – Folding chair with straight back with arm rests, 4 lbs weight for women, 5 lbs weight for men and a stopwatch.
Procedure – The subject sits on the chair keeping the back straight and holds weight in strong hand. The subject performs arm curls in 30 seconds.
Scoring – The score is determined by counting no. of curls performed in 30 seconds.

Answer 24.
Gender differences in physical and physiological parameters-

• Body Size and Composition – At puberty, the endocrine system starts bringing changes.
  Estrogen and testosterone play an important role in both the sexes. Mainly in women estrogen plays a vital role in broadening of pelvis, breast development and enhances fat deposition. Men also produce estrogen but at lower levels than women. In men, estrogen is thought to affect sperm count. Men and women however differ in their body sizes and shapes.
• Strength – On an average, men are stronger than women because they are larger. Generally, women produce about two third the amount of total strength than men.
• Cardiovascular Functions – Heart is smaller in women; women have slightly higher heart rate. However in case of intense exercise men have better cardiac output than women.
• Respiratory Functions – Men have larger body size, women have lesser hemoglobin content. Tidal volume and ventilatory volume are smaller in women.
• Endurance – Men are found to be 10% better in endurance as compared to women.
• Bones And Ligaments – Men have longer and larger bones that facilitate better mechanical advantage over women. The ligaments of women are generally more lax and fragile than those of men.

Answer 25.
According to Goods, “Motivation is the process of arousing, sustain and regulating activity.” Types of motivation are-
Intrinsic – It is internal motivation, when people are compelled to do something out of 1 pleasure, importance or desire. It can be further classified into.

• Bodily needs – hunger, thirst, etc. can be motivational forces
• Instinctive – inborn qualities
• Social – social motives often move a person towards an aim
• Emotional – love and affection can directly affect and motivate an individual

Extrinsic – It is external motivation, when external factors compel the person to do something. Reward, punishment, praise, blame, or cash prize are examples of extrinsic motivation. It can be further classified into.

• Knowledge of the goal – learner must be acquainted well with the aim and objectives of the goal.
• Knowledge of the result – periodic evaluation is a strong motivational force.
• Rewards – effectively used in learning process, can be given in following terms:
  1. Cash prize
  2. Job promotion
  3. Social rewards
  4. Punishment is applied where reward fails to motivate
  5. Effective teaching
  6. Competition and cooperation
  7. Audio – visual aid
  8. Latest equipment and good environment

Answer 26.
Sports training is done for improving sports performance. According to David R. Lamb,”
muscular strength is best defined operationally as the greatest amount of force that muscles can produce in a single maximal effort.”
Types of strength are:

1. Dynamic/isotonic – These movements are clearly visible, used in pull-ups and pushups.
   It has 3 parts:
   • Maximum strength – ability to act against maximum resistance, used in weightlifting, shot put etc.
   • Explosive strength – ability to overcome resistance with high speed, used in sprint starts, javelin throw, and hammer throw, etc.
   • Strength endurance – ability to overcome resistance or to act against resistance under
     conditions of fatigue, used in long distance races, swimming etc. .
   • Static/isometric – Ability of muscles to act against resistance, measured by dynamometer, in weightlifting it is applied in phases.

Methods of Improving Strength:

1. Isometric exercises – Introduced by Hettinger and Muller, derived from two words iso (same) and metric (muscle strength), work is performed but it is not seen directly, muscles do not change their length, strength is improved, like pushing a wall.
2. Isotonic exercises – Introduced by De Lorme, derived from two words is (same) and tonic(muscle tone), movements can be seen directly. These exercises tone up the muscles, muscles become flexible, length of the muscle can increase, like on the spot running and jumping, weight training exercises, etc.
3. Iso-kinetic exercises – Developed by Perrine in 1968, contraction of muscle applies maximal force throughout the complete range of movement, through them explosive strength and strength endurance can also be improved.

We hope the CBSE Sample Papers for Class 12 Physical Education Paper 7 help you. If you have any query regarding CBSE Sample Papers for Class 12 Physical Education Paper 7, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Economics Paper 2 are part of CBSE Sample Papers for Class 12 Economics. Here we have given CBSE Sample Papers for Class 12 Economics Paper 2.

CBSE Sample Papers for Class 12 Economics Paper 2

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 2 of Solved CBSE Sample Paper for Class 12 Economics is given below with free PDF download solutions.

Time : 3 hrs
M.M.: 80

General Instructions

• All questions in both the sections A and B are compulsory. However, there is internal choice in questions of 3,4 and 6 marks.
• Question Nos. 1-4 and 13-16 are very short answer type questions, carrying 1 mark each.
  They are required to be answered in one sentence each.
• Question Nos. 5-6 and 17-18 are short answer I type questions, carrying 3 marks each.
  Answers to them should not normally exceed 60 words each.
• Question Nos. 7-9 and 19-21 are short answer II type questions, carrying 4 marks each.
  Answers to them should not normally exceed 70 words each.
• Question Nos. 10-12 and 22-24 are long answer type questions, carrying 6 marks each.
  Answers to them should not normally exceed 100 words each.
• Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Section – A

Question 1.
State the fundamental problem of an economy that resulted in the emergence of central economic problem.

Question 2.
Average revenue of a monopolist firm is
(a) always more than the marginal revenue
(b) always less than the marginal revenue
(c) equal to marginal revenue
(d) None of these

Question 3.
Total Revenue (TR) – Total Variable Cost (TVC) is equal to
(a) gross profit
(b) net profit
(c) normal profit
(d) abnormal profit

Question 4.
How is total variable cost derived from marginal cost?

Question 5.
Suppose there are 20 consumers for a good and they have identical demand functions. d(p) = 50 – 6p for any price less than or equal to \(\frac { 20 }{ 6 } \) and d(p) = 0 at any price greater than \(\frac { 10 }{ 3 } \).
What is the market demand function?
Or
Consider the demand curve d(p)= 10 – 3p. What is the elasticity at price \(\frac { 5 }{ 3 } \) ?

Question 6.
What will be the impact on India’s PPC, if latest technology is imported from abroad?

Question 7.
Draw a diagram indicating the following situations:
(i) \(XY>\frac { { P }_{ X } }{ { P }_{ Y } } \)
(ii) \(XY=\frac { { P }_{ X } }{ { P }_{ Y } } \)
(iii) \(XY<\frac { { P }_{ X } }{ { P }_{ Y } } \)
Where, XY = Marginal Rate of Substitution of Good x for Good y
P_x = Price of Good X, P_Y = Price of Good y
Which of the three indicates highest level of consumer’s satisfaction?
Or
A consumer consumes only two goods X and Y. State and explain the conditions of consumer’s equilibrium with the help of utility analysis.

Question 8.
Explain the ‘law of variable proportions’. Use schedule.

Question 9.
What do you understand by oligopoly market? Explain any three of its features.

Question 10.
Define demand. Explain the factors influencing individual household demand for a commodity in the market.

Question 11.
(i) Can Marginal Revenue (MR) be negative? Explain your answer with the help of example.
(ii) Total Revenue (TR) of a firm, dealing in a particular commodity, initially was ₹ 15,000. It reduces to ₹ 13,500. Also, AR increases from ₹150 to ₹ 270. Find the change in market demand for that commodity.
Or
State whether the following statements are true or false. Give reasons for your answer.
(i) When Marginal Revenue (MR) is constant and not equal to zero, then Total Revenue (TR) will also be constant.
(ii) As soon as Marginal Cost (MC) starts rising, Average Variable Cost (AVC) also starts rising.
(iii) Total Product (TP) always increases whether there is increasing returns or diminishing returns to a factor.

Question 12.
Explain profit and loss situation under perfect competition, during the short-run. Which economic value is affected if the firm is incurring abormal losses?

Section – B

Question 13.
What are the sources of borrowings for government other than the general public?

Question 14.
The currency notes do not carry as much value as denominated on it. Do you agree?

Question 15.
What do you mean by public goods?

Question 16.
The difference between narrow money and broad money is
(a) coins and currency
(b) only currency
(c) saving deposits of banks
(d) time deposits with banks

Question 17.
The saving function of an economy is S = -200 + 0.25F. The economy is in equilibrium when income is equal to ₹ 2,000. Calculate the following :
(i) Investment expenditure at equilibrium level of income
(ii) Autonomous consumption
Or
It is given that MPC is 1/3rd of MPS, while consumption at zero level of income is given as ₹ 100 crore. Derive the consumption and savings functions.

Question 18.
Inflationary gap and deflationary gap both are caused due to the displacement of aggregate demand from the full employment equilibrium level and both are harmful for a country. In spite of these similarities, there exist many differences between the two. Explain any three of those differences.

Question 19.
How will you treat the following while estimating national income of India?
(i) Dividend received by an Indian from his investment in shares of a foreign company.
(ii) Money received by a family in India from relatives working abroad.
(iii) Interest received on loans given to a friend for purchasing a car.
(iv) Dividend received by a foreigner from investment shares of an Indian company.

Question 20.
Giving a numerical example, explain the process of money creation by the commercial banks.
Or
Government of India has launched ‘Jan-Dhan Yojana’ aimed at every household to have at least one bank account due to which credit creation capacity of banks have seen expansion manifolds. Comment.

Question 21.
Explain the role of government budget in fighting inflationary and deflationary tendencies.

Question 22.
From the following information, calculate Gross National Product at Market Price (GNPMP)by
(i) Income method
(ii) Expenditure method

Or
Explain briefly the steps taken in estimating national income by the value added method. Also, explain any two precautions required to be taken in this method

Question 23.
What do you mean by Multiplier (K)? Explain the relationship between Marginal Propensity to Consume (MPC) and Multiplier (K).

24.
Explain the three major functions of foreign exchange market.

Answers

Section – A

Answer 1.
It is the problem of scarcity of resources in relation to human needs or desires.

Answer 2.
(a) Always more than marginal revenue

Answer 3.
(a) Gross profit

Answer 4.
Total variable cost is the sum total of marginal cost, i.e. TVC = ΣMC

Answer 5.
The above demand function indicates that in a market comprising of 20 consumers, the consumers are willing to buy only if the price is less than or equal to \(\frac { 20 }{ 6 } \) . Also, all the 20 consumers have identical demand function. Accordingly,
d_m (p) =20 x d p = 20x (50-6p)
= 1,000 – 120p for any price less than or equal to \(\frac { 20 }{ 6 } \).
If price exceeds \(\frac { 20 }{ 6 } \), then 6
d_m(p) = 0 because at this price no consumer is willing to purchase the good.
Or
Given demand curve d(p) = 10 – 3p
Where p is the price of good.
Now,
Price (p)= \(\frac { 5 }{ 3 } \)
q = 10 – 3 x \(\frac { 5 }{ 3 } \) = 10 – 5 = 5
Demand (q) = 5 unitsd(p) = 10 – 3p
Here, -3 indicates the rate at which q change in response to change in p.
∴ \(\frac { \triangle q }{ \triangle p } =-3\)
Elasticity of demand E_d = \(\left( – \right) \frac { p }{ q } \times \frac { \triangle q }{ \triangle p } =\left( – \right) \frac { \frac { 5 }{ 3 } }{ 5 } \times -3\)
\({ E }_{ d\quad }\left( – \right) \frac { 5 }{ 3 } \times \frac { 1 }{ 5 } \times -3\)
E<sub.d = 1
∴ Elasticity of demand at price \(\frac { 5 }{ 3 } \) = 1

Answer 6.
India’s PPC would shift rightwards/outwards because with other resources remaining constant, improved technology will raise the potential level of output in the economy.

PPC shift to a₁ b₁ as technology improves.

Answer 7.

Graph showing relation between MRS and \(\frac { { P }_{ X } }{ { P }_{ Y } } \) at different points on indifference curve
The point where \({ MRS }_{ XY }=\frac { { P }_{ X } }{ { P }_{ Y } } \) indicates the highest level of consumer’s satisfaction i.e. E is the point of maximum consumer satisfaction (or consumer equilibrium).
Or
The two conditions of consumer’s equilibrium are stated below:
(i) Ratio of Marginal Utility to Price of Two Goods are Equal to Marginal Utility of Money This condition can be expressed as \(\frac { M{ U }_{ X } }{ { P }_{ X } } =\frac { M{ U }_{ Y } }{ { P }_{ Y } } =M{ U }_{ M }\)
or \(\frac { M{ U }_{ X } }{ M{ U }_{ Y } } =\frac { { P }_{ X } }{ { P }_{ Y } } \) [if MU_X = 1]
where, MU_X and MU_Y = Marginal Utilities of good X and good Y respectively
P_X and P_Y = Price of good X and good Y respectively
MU_M = Marginal utility of money
(ii) MU Falls as Consumption Increases If Marginal Utility (MU) does not fall as consumption increases, the consumer will end up buying only one good which is unrealistic and the consumer will never reach the equilibrium position.

Answer 8.
The law of variable proportions shows the impact on output when units of variable factors are increased, keeping fixed factors constant in the short-run.

The law states that if more and more units of a variable factor are employed with fixed factors, Total Physical Product (TPP) increases at an increasing rate in the beginning, then increases at a diminishing rate and finally starts falling. In other words, as units of variable factors are increased, marginal product first increases, reaches its maximum point, starts to fall, and eventually becomes negative.

Answer 9.
Oligopoly is a form of market in which there are only few big sellers of a commodity and large number of buyers.
e.g. there are only few car producers in the Indian auto market such as Toyata, Ford, GM, Audi, BMW and Volkswagen.
Oligopoly market exhibits the features given below:

1. A Few Firms A few firms, large in size dominate the market for a commodity. Each firm commands a significant share of the market which can impact market price of the product.
2. Large Number of Buyers There are large number of buyers of a commodity. The number is so large that no individual buyer can impact market price of the product.
3. Entry Barriers There are various barriers to the entry of new firms. These barriers are almost similar to
   those under monopoly. Entry of the new firm is extremely difficult, but not impossible.

Answer 10.
Demand means the quantity of a commodity that consumers wish to purchase in the market in a given period of time and at various prices.
Factors affecting individual household demand are explained below:

1. Own Price of a Commodity When the price of a commodity rises in the market, its demand contracts and with a fall in price, its demand expands.
2. Price of Related Goods Demand for a commodity is also influenced by change in price of related goods.
   These are of two types:
   • Substitute Goods These are the goods which can be substituted for each other, such as tea and coffee or ball pen and ink pen. In case of such goods, increase in the price of one, causes increase in demand for the other and decrease in the price of one, causes decrease in the demand for the other.
   • Complementary Goods These goods complete the demand for each other and are therefore, demanded together. Pen and ink, bread and butter, car and petrol, etc may be cited as examples. In case of complementary goods, a fall in the price of one, causes increase in the demand for the other and a rise in the price of one, causes decrease in the demand for the other.
3. Income of the Consumer Change in the income of the consumer also influences his demand for different goods. The demand for normal goods tends to increase with increase in income and vice-versa. On the other hand, the demand for inferior goods like coarse grain, etc. tends to decrease with increase in income and vice-versa.
4. Tastes and Preferences The demand for goods and services also depends on individual tastes and preferences. These terms are used in a broad sense. If there is a favourable change in tastes and preferences, demand increases and unfavourable change leads to decrease the demand.
5. Expectatibns If the consumer expects a significant change in the availability of the concerned
   commodity in the near future, he may decide to change his present demand for the commodity. Particularly, if the consumer fears acute shortage of the commodity in the near future, he may raise his present demand for the commodity at its existing price.

Answer 11.
(i) Yes, Marginal Revenue (MR) can be negative. It can be negative only when average revenue is decreasing or when the price is declining as under monopoly and monopolistic competition. This can be explained by the following example :
When price = ₹ 20, output = 50
Total revenue of 50 units (TR₅₀) = P x Q
= 20 x 50 = ₹ 1,000
When price fall to ₹ 19, output =51
Total revenue of 51 units (TR₅₁) = P x Q
= 19 x 51 = ₹ 969
MR₅₁ =TR₅₁ – TR₅₀
= 969 – 1,000 = ₹ (31)
i.e., Marginal Revenue (MR) is negative.
(ii) TR = ₹ 15,000, P(=AR) = ₹ 150

Change in market demand = 50 – 100 = -50 units i.e. market demand falls by 50 units

1. False. because when Marginal Revenue (MR) is constant, Total Revenue (TR) is increasing at a constant rate, only when Marginal Revenue is zero, Total Revenue is constant.
2. False, Average Variable Cost (AVC) can fall even when Marginal Cost (MC) starts rising. See Average Variable Cost (AVC) and Marginal Cost (MC) corresponding to output range (MQ) in the diagram.
3. True, because in a situation of increasing returns to a factor, Marginal Product tends to rise accordingly, Total Product (TP) should be increasing at an increasing rate. Under diminishing returns to a factor, Marginal Product (MP) tends to fall. Falling Marginal Product (MP) implies that Total Product (TP) should be increasing, though at a decreasing rate.

Answer 12.
In the short-run, equilibrium of a firm (under perfect competition) may occur when it is earning super normal profits or normal profits or is incurring super normal losses.
These conditions are discussed below :
(i) Super Normal Profit

In the given diagram, the producer is at equilibrium at point Q, where MR = MC, and MC cuts MR from below. At this point, Average Revenue (AR) exceed Average Cost (AC). So, the firm is earning abnormal profits equal to ESQT.
(ii) Super Normal Losses

In the given diagram, the firm is at equilibrium at point 0. At this point, AC exceeds AR, therefore the firm is incurring abnormal loss equal to NTQP.
(iii) Normal Profit

In the given diagram, the firm is at equilibrium at point Q. At this point AR = AC. So, this depicts the condition of normal profits.
If the firm is incurring abnormal losses then it affects the economic value of sustainability.

Section – B

Answer 13.
The government can borrow money from :
(i) The Reserve Bank of India
(ii) The rest of the world

Answer 14.
Yes, I agree. The face value of currency notes is more than its materialistic value. These notes are accepted
by people because they are backed by the government of the country.

Answer 15.
Public goods refers to the goods which cannot be provided by market mechanism due to its feature of non-rivalness and non-excludable in consumption, e.g. street light.

Answer 16.
(d) Time deposits with banks

Answer 17.
(i) At equilibrium, savings (S) are equal to planned investment (l). It is given that,
S = – 200 + Y
Equilibrium level of income is 2,000. Substituting the value of Y in the savings function, we get
S = -200 + 0.25 x 2,000
S =-200 + 500 ⇒ S =300
or l = 300 [v at equilibrium level of Income Savings (S) = Investment Expenditure (I)]
Thus, investment expenditure at equilibrium level of income is 300.
Autonomous consumption means the level of consumption expenditure when income is zero.
When Y = 0, Savings = -200
Consumption + Savings = Income Consumption + (-200) = 0
So, autonomous consumption = 200
Or
According to question, Marginal Propensity to consume (MPC) = \(\frac { 1 }{ 3 } \) Marginal Propensity of Save (MPS)
We know that,
MPC + MPS = 1
∴    \(\frac { 1 }{ 3 } \) MPS + MPS = 1
MPS = \(\frac { 3 }{ 4 } \)
∴ MPS = 0.75 and
MPC = 1 – 0.75 = 0.25 Consumption function (C) = \(\overline { C } \) + bY,
where,
\(\overline { C } \) = Autonomous Consumption = ₹ 100 crore
b = MPC = 025
So, consumption function (C) = 100 + 025 Y
Saving function (S) = \(-\overline { S } \) + sY,
where,
\(-\overline { S } \) = Dissavings = Autonomous consumption = 100 and
S = Marginal Propensity to Save = 0.75
Therefore, Savings Function (S) = -100 + 0.75Y

Answer 18.
Difference between inflationary gap and deflationary gap are :

Answer 19.

1. Dividend received by an Indian from his investment in shares of a foreign company is included in National Income of India because it is a part of net factor income from abroad.
2. Money received by a family in India from relatives working abroad is not included in National Income of India because it is a kind of transfer income.
3. Interest received on loan given to a friend for purchasing a car is not included in National Income because loan is not being used for production purpose.
4. Dividend received by a foreigner from investment in shares of an Indian company is included in National
   Income of India as a negative component, because it is a part of net factor income paid to rest of the world.

Answer 20.
Money creation (or deposit creation or credit creation) by the banks is determined by

1. The amount of the initial fresh deposits and
2. Legal Reserve Ratio (LRR) i.e. the minimum ratio of deposit, legally required to be kept as cash by the banks. It is assumed that all the money that goes out of the banks, is re-deposited into the banks.

Let the LRR be 20% and there is a fresh deposit of ₹ 10,000. As required, the banks keep 20 %,i.e. ₹ 2,000 as cash. Suppose the banks lend the remaining ₹ 8,000. Those who borrow, use this money for making payments. As assumed, those who receive payments, put the money back into the banks. In this way, banks receive fresh deposits of ₹ 8,000. The banks again keep 20%, i.e. ₹ 1,600 as cash and lend ₹ 6,400, which is also 80% of the last deposits. The money again comes back to the banks leading to a fresh deposit of ₹ 6,400. The money goes on multiplying in this way and ultimately total money creation is ₹ 50,000.

Given the amount of fresh deposit and the LRR, the total money creation is
Total Money Creation = Initial Deposit x \(\frac { 1 }{ LRR } \)
Or
With the introduction of ‘Jan-Dhan Yojana’, many households have opened bank account. Due to this, primary deposits of commercial banks have increased. Banks create credit on the basis of primary deposits. Higher the primary deposits, higher is the credit creation capacity of comrftercial banks and vice-versa.

Now, with implementation of ‘Jan-Dhan Yojana’, since primary deposits have increased, reserves of bank to create credit have also swollen up. Therefore, credit creation capacity of commercial banks is increased manifolds.

Answer 21.
Government budget is of immense help in fighting the inflationary and deflationary tendencies. To curb the inflationary tendency, the government can prepare a surplus budget. A surplus budget is one in which estimated receipts exceed the estimated expenses. Such a budget reduces the money supply in the economy. With a fall in the money supply, the purchasing power of people also fall, leading to a fall in the level of aggregate demand. As aggregate demand falls, the price level or the rate of inflation also falls.

To curb the deflationary tendency, the government can prepare a deficit budget. A deficit budget is one in which estimated expenses exceed the estimated receipts. Such a budget increases the money supply in the economy. With increase in money supply, the purchasing power of people also rise, leading to an increase in the level of aggregate demand. As aggregate demand rises, the price level also rises and rate of deflation begins to fall.

Answer 22.
(i) Gross National Product at Market Price (GNPMP) by Income Method
Net Domestic Product at Factor Cost (NDPFC ) = Compensation of Employees + Operating Surplus (Interest + Rent + Profit) + Mixed Income
= ₹ 1,500 + (400 + 400 + 1,000) + 0
= ₹ 1,500 + 1800
= ₹ 3,300 crore
GNP_MP = NDP_FC + Net indirect Tax (Indirect tax – Subsidies) + Net Factor Income from Abroad (Factor income from abroad – Factor income to abroad) + Depreciation
= ₹ 3300 + (300 – 100) + (100 -150) + 150
= ₹ 3300 + 200 + (-50) + 150 = 3,300 + 300
= ₹ 3,600 crore

(ii) Gross National Product at Market Price (GNP_MP) by Expenditure Method
Gross Domestic Product at Market Price (GDP_MP) = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
= ₹ 2,200 + 850 + (500 + 150)+ (200 – 250)
= ₹ 2200 + 850 + 650 + (-50)
= ₹ 2,200 + 850 + 600 = ₹ 3650 crore
GNP_MP = GDP_MP + Net Factor Income from Abroad
= ₹ 3650 + (100 – 150) = 3,650 – 50 = ₹ 3,600 crore
Or
Steps for measuring National Income by Value Added Method (Product method) are enumerated below :
Step I Classify All the Production Units The units are traditionally classified into primary, secondary and tertiary sectors which are further classified into sub-sectors like agriculture, manufacturing, banking, etc.
Step II Estimate NVAFC of each industrial sector by taking the following sub-steps :

1. Estimate Value of Output It can be estimated by two ways :
   • A sum of sales and net addition to stocks (If entire output is not sold within the year).
   • Quantity of output multiplied by price (If entire output is sold within the year).
2. Deduct Intermediate Consumption It should be deducted from the value of output to arrive at GVA_MO (Intermediate consumption already includes imports).
3. Deduct, Consumption of Fixed Capital It should be deducted from GVA_MP to arrive at NVA_MP.
4. Deduct Net Indirect Tax It should be deducted from NVA_MP to arrive at NVA_FC of an industrial sector.

Step III Take the sum of NVAFC of all the industrial sectors of the economy. By doing so, we will arrive at net
domestic product at factor cost.
ΣNVA_FC = NDP_FC
Step IV Add net factor income from abroad to NDP_FC to arrive at National Income.
National Income (NNP_FC) = NDP_FC + Net Factor Income from Abroad (NFIA)
Precautions to be taken while computing National income by this method are given below :

1. Take the value of final product only i.e. intermediate goods not to be included.
2. Do not include exports, if total sales are given.

Answer 23.
Multiplier It means the ratio of change in income to change in investment.
According to Keynes, “Investment multiplier tells us that when there is an increment of aggregate investment, income will increase by an amount, which is K times the increment of investment.”
Relationship between MPC and Multiplier (K)
The value of Multiplier is determined by the value of MPC.

This shows that there is a direct relationship between multiplier (K) and Marginal Propensity to Consume (MPC). As the value of MPC rises, the value of multiplier also rises and vice-versa.
e.g. if MPC = 0.75
then, \(\frac { 1 }{ 1-0.75 } =4\)
and when the value of MPC = 0.80, then K = \(\frac { 1 }{ 1-0.80 } =5\)
Thus, it is clear that the size of the Multiplier depends on the MPC. Higher the MPC, the larger the size of Multiplier and lower the MPC, the smaller is the size of Multiplier.

Answer 24.
Foreign exchange market performs the following functions :

1. Transfer Function This function implies the transfer of purchasing power in terms of foreign exchange across different countries of the world. It is performed through credit instruments like bills of foreign exhange, bank drafts and telephone transfers.
2. Credit Function This function allows the provision of credit in terms of foreign exchange for the export and import of goods and services across different countries of world. In this function, bills of exchange with maturity period of 3 months are used for international payments.
3. Hedging Function When exporters and importers enter into an agreement to sell and buy goods on
   some future date at a rate agreed upon today, it is called hedging. Through this function, exchange rate is locked for future supplies of foreign exchage which avoid losses that might occur due to. changes in exchange rate.

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