Practice set for Economics-12th Commerce

Hello friends, as boards are closer now are you all done with your studies? Some will say yes and some you will say no. Here I am sharing a practice set for Economics so that you all can practice and score good in Economics not only economics but all subjects.

Subject: Economics

Marks – 80

Q.1A) Complete the following statements by choosing correct alterhatire : (05)

1.The branch of economics that deals with the allocation of resources ____________ .

a) Microeconomics b) Macroeconomics c) Econometrics

2. Product differentiation is possible in ___________market.

a) Monopolistic Competition b) perfect Competition c) Monopoly

3. Blood donation has ________utility.

a) Place b) Time c) Form

4. Indirect demand is also known as _________ demand.

a) derived b) direct c joint

5 The Law of Supply represents the general tendency of __________ .

a) buyers b) sellers c) government

Q.1B) Complete the correlation : (05)

1) Single Seller : ________________ : :Few Sellers : Oligopoly.

2) co-sperative bonks : Organized secter : :Indigenous bankers : _____

3) Demand Carve: ______________ : : supply curre : Upward.

4) Theoretical difficulty : Transfer payments : ____________ Valuation of inventories.

5) Money Market: Short term funds : ____________ : Long term fundsan.

Q.1C) Give an economic term:

1) Want-satisfying capacity of a commodity.

2) A statistical tool to measure changes in an eonomic variable over a period of time.

3) Elasticity resulting from a proportionate change in quantity demanded due to a proportionate change in price.

4) Cost incurred on fixed factor.

5) The flow of goods and services produced in economy during a year.

Q .1D) Find the odd man out :

1) Form utility: Table, chair, Ornaments, Driving.

2) Microeconomic variables :- Individual demand, Individual supply, Individual Income, Employment level.

3) Non-perishable commodities : Paper, Mobile, Fruite, Furniture.

4) Exception to the Law of Supply :- Labour Supply.Rare photographs, Raincoat, Historical coins.

5) Function of commercial banks i Providing loans Providing D-mat facility, Credi Control, Accepting deposits.

Q.2A) Identify and explain the concepts from illustrations : (Any three) (06)

1) Preeti deposited a lump sum amount of 50,000 in the bank for a period of five year.

2) India purchased petroleum from Iran.

3) Due to tax relief, pooja brought a large numberof her cottage products to the market for sale.

4) Nilesh purchased ornaments for his sister

5) ABC bank provides internet banking facility to its customers.

Q.2B) Distinguish between : (Any three) )

1) Money Market and Capital Market.

2) Expansion in supply and Contraction in supply.

3) Direct Tax and Indirect Tax

4) Simple Index Number and weighted Index humber.

5) sticing Method and Lumping Method.

Q.3) Answer the following questions in brief: (Any three)

1) Explain the features of oligopoly.

2) present different types of price elasticity of demand.

3) Write the features of Microeconomics.

4) Explain the Concept of foreign trade and its types.

5) Explain the functions of Commercial banks.

Q.4) State with reasons whether you agree ordisagree with the following statements : (Any three).

1) Microeconomics is known as Income theory.

2) There are no real enceptions to the law of Diminishing Marginal utility.

3) The supply curre slopes downward from left to right.

4) Fines and penalties are amajos source of sererne of the government.

5) Monopolist is a price maker.

Q.5] Study the table / figure I passage and answer the questions: (Any two)

1) study the following table:

Price of shirts per unit Quantity Demanded
3500 1
3000 2
2500 3
2000 4
1500 5


1) Euplain the Law of Demand with reference to price and demand of shirts. (02)

2) Explain the concept of Individual demand Schedule. (02)

2) Read the given passage and answer the questions:

In modern times, due to the development in science and technology, means of transport and communication, etc. almost all countries export as well as import a variety of goods and services. The net earnings from the foreign transactions can be obtained by using the following formula:

Net Earnings from foreign transactions = (X-M). When a country’s export is more than the import, the value of net earnings is found to be positive. The positive net earnings increases the national income and the aggregate demand. When a country’s import is more than the export, the value of net earnings is found to be negative. The negative net earnings decreases the national income and the aggregate demand. When a country’s export is exactly equal to import, the value of net earnings is found to be zero. The zero net earnings does not affect the national income and the aggregate demand.


1) Different between export and import.

2) Comment on the role of het earnings in national income.

3) observe the following and complete the blanked space.

Schedule for Relationship between MU & price .

No.of units nMarginal utility per unit xMU/ in terms of money unit 10Market price per unit of x 60Campanison between MU & Price
1 12 120 60 MU >P
2 10 60 MU>P
3 8 80 60
4 6 60 60 MU=P
5 4 60
6 2 20 60 MU<P

Q.6) Answer in detail: (Any two)

1) state and explain the Law of DMU with assumptions and exceptions.

2) Explain the practical difficulties involved in the measurement of national income.

3] Calculate Laaspeyre’s and Paasche’s Index number from the following.

Commodity 2020 -2021
2020 – 2021
2021 -2022
A 10 30 10 20
B 20 50 15 30
C 30 70 20 40

Hope so you all liked it and will definitely practice for the exams. It is a very interesting subject and really easy to understand. So all the best everyone for your boards. Thank you.

Leave a Reply

Your email address will not be published.