ISC Economics 2010 Class-12 Previous Year Question Papers Solved

ISC Economics 2010 Class-12 Previous Year Question Papers Solved for practice. Step by step Solutions with Questions of Part-1 and 2. By the practice of Economics 2010 Class-12 Solved Previous Year Question Paper you can get the idea of solving.

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ISC Economics 2010 Class-12 Previous Year Question Papers Solved

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Maximum Marks: 80
Time allowed: 3 hours

  • Candidates are allowed additional 15 minutes for only reading the paper.
  • They must NOT start writing during this time.
  • Answer Question 1 (Compulsory) from Part I and five questions from Part II.
  • The intended marks for questions or parts of questions are given in brackets [ ].

Part – I (20 Marks)

Answer all questions.

ISC Economics 2010 Class-12 Previous Year Question Papers Solved 

Question 1.
Answer briefly each of the questions (i) to (xv): [15 × 2]
(i) What is micro economics? Give an example.
(ii) How is exante demand different from expost demand?
(iii) Draw two supply curves, the first one showing elasticity of supply greater than one and the second one showing elasticity of supply less than one.
(iv) Define marginal revenue. How can we get marginal revenue from total revenue?
(v) Explain two advantages of international trade.
(vi) What is meant by actual earning of a factor?
(vii) How is Net National Product at factor cost obtained from Net National Product at market price?
(viii) Distinguish between productive debt and unproductive debt citing an example of each.
(ix) Mention two similarities between perfect competition and monopolistic competition.
(x) Define Balance of Trade.
(xi) Differentiate between consumer goods and producer goods. Give one example of each.
(xii) Identify whether the costs stated below are implicit costs or explicit costs. Justify your answer for each:
(a) Rent for self owned land.
(b) Payment made for advertising.
(xiii) What is meant by a balanced budget?
(xiv) Define proportional tax and show it graphically.
(xv) When can the equilibrium price remain unaffected by a change in demand? Show with the help of a diagram.
Answer 1:
(i) Microeconomics, the study of the economic behaviour of small economic groups such as firms and families, is one of the largest subfields in economics. These resources will help you ace your test, get a good mark on your microeconomics term paper, and help you understand how economic decisions are made.

(ii) Demand may be viewed ex-ante or ex-post: Ex-ante demand is the intended demand and ex-post demand is what is already purchased. The former denotes potential demand, while the latter refers to the actual magnitude purchased.

Demand may be viewed ex-ante or ex-post

(iv) Marginal revenue is the additional revenue added by an additional unit of output, or in terms of a formula:
Marginal Revenue = (Change in total revenue) divided by (Change in sales)


(v) Advantages:

  • International trade brings in different varieties of a particular product from different destinations.
  • Promotes efficiency in production as countries will try to adopt better methods of production to keep costs down in order to remain competitive.
  • Brings foreign exchange to the exporting countries. It makes the foreign currency reserves healthy.

(vi) Actual earnings of a factor tell you how healthy that factor is and if it may pay dividends or grow through capital appreciation (higher price).

(vii) Net national product at factor cost can be obtained from Net National Product at market price in the following manner.
Net National Product at Factor Cost = Net National Product at Market Price – Indirect Taxes + Subsidies.
Net National Product at Factor Cost = Net National Product at Market Price – Net Indirect Taxes

(viii) Productive debt is used to purchase a productive asset: i.e.. one that will produce a profit while serv icing the debt. Debts used for the purchase of a rental property, equipment for a business, or perhaps dividend-paying stocks can be considered “productive” if they earn a profit. Unproductive debt is the debt used to finance activities that did not increase productivity.
Unproductive debt is that debt which is incurred to cover any budgetary deficits or for such purposes as do not yield any income to the government in times of war for example. The interest and sinking fund, if any, on this type of debt must be obtained from some other source of public income, generally from taxation and, since there is no corresponding asset created, there is no rule regarding the period of repayment.

(ix) Similarities between perfect and monopolistic competition.

  • Many numbers of sellers and buyers in both type of markets.
  • Free entry and exit of the firms.

(x) Trade account of the balance of payments includes exports and imports of goods in a year. The difference between the value of exports of goods and value of imports of goods is called the balance of trade. For example, if the value of the exports of goods is Rs. 10,000 in a year and the value of imports in the same year is Rs. 6,000, then the balance of trade is (+) Rs 4,000. It is a surplus balance of trade as exports are greater than imports.

(xi) Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or non-durable. Durable goods (e g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and consumption is spread over this span. Non-durable goods (e.g., food, clothing, and gasoline) are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years.
Goods manufactured and used in further manufacturing, processing or resale. Producer goods either become part of the final product or lose their distinct identity in the manufacturing stream.


(a) Implicit Cost.
A cost that is represented by a lost opportunity in the use of a company’s own resources, excluding cash is an implicit cost.
(b) Explicit cost
A business expense that is easily identified and accounted for is taken under explicit costs.

(xiii) A budget in which revenues equal or exceed expenditures. A balanced budget is thought to be positive for a company, as it means that the company is not taking on any (additional) debt in order to conduct its operations; if revenues exceed expenditures, it results in a profit.

(xiv) Proportional is a tax system in which the rate of taxation (percentage) remains constant at all levels of income (regardless of how much an individual earns.).
ISC Economics Question Paper 2010 Solved for Class 12 Q1.1

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