CBSE Class 12 Commerce Economics Question Papers

CBSE Class 12 Commerce Economics Question Papers : The origin of economics can be traced to Adam Smith’s book. An inquiry into the Nature and Causes of Wealth of Nature published in the year 1776. Economics was used to mean home management with limited funds available in the most economical manner possible. Economics has been defined in many different ways:

(a)Robbins emphasises that economics is a study of human behaviour, where there is a relationship between ends and scarce means and that the scarce means have alternative uses.

(b)Samuelson’s definition of economics is most comprehensive, relevant and accepted. The definition includes both the aspects of economics, i.e., distribution of limited resources and problem of economic development.

CBSE Class 12 Commerce Economics Question Papers

Microeconomics and Macroeconomics

1. Microeconomics deals with the behaviour of individual decision-making units such as consumers, resource owners, etc. It is also called Price theory.

2. Macroeconomics deals with aggregate such as national income, aggregate consumption, etc. It is also called Theory of Income and Employment.

3.Both micro and macro economics are complementary and should be utilised for proper understanding of an economy.

Exam Structure

Units		Marks
Part A	Introductory Microeconomics	40
	Introduction	4
	Consumer’s Equilibrium and Demand	13
	Producer Behaviour and Supply	13
	Forms of Market and Price Determination	10
Part B	Introductory Macroeconomics	40
	National Income and Related Aggregates	10
	Money and Banking	6
	Determination of Income and Employment	12
	Government Budget and the Economy	6
	Balance of Payments	6
Part C	Project Work	20
	Total	100

CBSE Class 12 Commerce Economics Question Papers

Part A: Introductory Microeconomics

Unit 1: Introduction

Meaning of microeconomics and macroeconomics

What is an economy? Central problems of an economy : what, how and for whom to produce; concepts of production possibility frontier and opportunity cost.

Unit 2: Consumer Equilibrium and Demand

Consumer’s equilibrium – meaning of utility, marginal utility, law of diminishing marginal utility, conditions of consumer’s equilibrium using marginal utility analysis.

Indifference curve analysis of consumer’s equilibrium-the consumer’s budget (budget set and budget line), preferences of the consumer (indifference curve, indifference map) and conditions of consumer’s equilibrium.

Demand, market demand, determinants of demand, demand schedule, demand curve and its slope, movement along and shifts in the demand curve; price elasticity of demand – factors affecting price elasticity of demand; measurenment of price elasticity of demand – (a) percentage-change method and (b) geometric method (linear demand curve); relationship between price elasticity of demand and total expenditure.

Unit 3: Producer Behaviour and Supply

Production function – Short-Run and Long-Run

Total Product, Average Product and Marginal Product.

Returns to a Factor.

Cost and Revenue: Short run costs – total cost, total fixed cost, total variable cost; Average cost; Average fixed cost, average variable cost and marginal cost-meaning and their relationship.

Revenue – total, average and marginal revenue – meaning and their relationship.

Producer’s equilibrium-meaning and its conditions in terms of marginal revenue-marginal cost.

Supply, market supply, determinants of supply, supply schedule, supply curve and its slope, movements along and shifts in supply curve, price elasticity of supply; measurement of price elasticity of supply – (a) percentagechange method and (b) geometric method.

Unit 4: Forms of Market and Price Determination

Perfect competition – Features; Determination of market equilibrium and effects of shifts in demand and supply.

Other Market Forms – monopoly, monopolistic competition, oligopoly – their meaning and features.

Simple Applications of Demand and Supply: Price ceiling, price floor.

CBSE Class 12 Commerce Economics Question Papers

Part B: Introductory Macroeconomics

Unit 5: National Income and related aggregates

Some basic concepts: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

Circular flow of income; Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.

Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP) – at market price, at factor cost; National Disposable Income (gross and net), Private Income, Personal Income and Personal Disposable Income; Real and Nominal GDP.

GDP and Welfare

Unit 6: Money and Banking

Money – its meaning and functions.

Supply of money – Currency held by the public and net demand deposits held by commercial banks.

Money creation by the commercial banking system.

Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Controller of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit 7: Determination of Income and Employment

Aggregate demand and its components. Propensity to consume and propensity to save (average and marginal).

Short–run equilibrium output; investment multiplier and its mechanism.

Meaning of full employment and involuntary unemployment.

Problems of excess demand and deficient demand; measures to correct them – change in government spending, taxes and money supply.

Unit 8: Government Budget and the Economy

Government budget – meaning, objectives and components.

Classification of receipts – revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure.

Measures of government deficit – revenue deficit, fiscal deficit, primary deficit their meaning.

Unit 9: Balance of Payments

Balance of payments account – meaning and components; balance of payments deficit-meaning.

Foreign exchange rate – meaning of fixed and flexible rates and managed floating.

Determination of exchange rate in a free market.

CBSE Class 12 Commerce Economics Question Papers

Past year CBSE Class 12 Commerce Economics Question Papers are very important everybody knows the same, but no one tries to even attempt to do the Previous Year Question papers. Whenever our seniors and teachers tell us to solve the Previous Year Question papers we don’t take them seriously.

Why Previous Year Question papers?

Previous Year CBSE Class 12 Commerce Economics Question Papers are the most authentic source of information for both prelims and main examination. One of the important prerequisites of the CBSE preparations is practicing previous year question papers and sample papers. You cannot neglect the importance of previous year question papers and sample papers. These papers, prepare you for CBSE- both prelims and main- in a much better way.

The best reliable source of practice

Practice makes a man perfect, but at the same time, it is also true that you need to get proper practice so that you can use that in the real test. The Previous Year CBSE Class 12 Commerce Economics Question Papers are also important from the practical viewpoint. Solving these papers give the students some sort of understudies some kind of self-evaluation about their speed and time management in both the prelims and the main examination. The more previous year questions you understand and learn the lesser will be the odds of your disappointment in CBSE. By solving these papers, you also realize that there are many questions which are common in sample papers. So, you understand what not to ignore.

Solving the Previous Year CBSE Class 12 Commerce Economics Question Papers also helps you in revision. It is always advisable to solve these question papers when you are done with your preparations. You can evaluate your own performance and work on your shortcomings. Many of the questions- molded or rephrased- repeatedly asked in the exams. Just try to read the questions carefully in your exam and you will see how helpful it has been.

It is always better to self-evaluate your performance and gauge your understanding of the concepts you are studying for the examination. So, go ahead and solve sample papers and CBSE – both prelims and main- previous year CBSE Class 12 Commerce Economics Question Papers if you really want to crack in the CBSE.

Know the nature and exam pattern

Previous Year Question papers indicate the nature of the questions being asked by the CBSE. For instance, in the prelims, the previous couple of year question papers demonstrate a reasonable move from the facts to the concepts. Previous year papers give an idea about the changing trends, if any, of the syllabus. For example, in recent year more questions are being asked in prelims from geography, current affairs environment and Indian culture. These papers ensure we are in synchronous with the question papers format as well. Thus question papers from the past few years are necessary during CBSE preparation.

Once you come across the previous year CBSE Class 12 Commerce Economics Question Papers, you will get to know about the style and the mixture of easy and complicated questions and master the art of balancing to maximize scores which ultimately matter. Also, there is a possibility that many of the questions may be repeated, or presented with a slight variation. Not because many questions are repeated most of the times, but also because they help us get good practice.

Trends

The level of difficulty varies from year to year in the CBSE Examination, but still, if you go through papers, you will have a clear idea regarding the overall level of difficulty in the examination and will be able to prepare accordingly. This point is extremely vital for CBSE Class 12 Commerce Economics Question Papers, where the syllabus focuses upon general knowledge and current affairs of national and international importance. Based on the topics that are common in the previous few year question papers, candidates are able to predict the trending topics which will be covered within the CBSE examination, particularly General Studies Paper- I.

Self-assessment

Self-assessment is a vital part of CBSE preparation. It can assist in realizing and learning from mistakes, determining what strategy they needs to be followed in continuing the preparation and identifying strengths and weaknesses.

However, candidates should remember that the previous year papers do not means the question papers of last 10-20 year. Take the CBSE Class 12 Commerce Economics Question Papers, solely since the syllabus and format of the examination has modified otherwise you may find yourself wasting an excessive amount of time on that.