CBSE Class 12 Economics Paper 2018

Question paper of CBSE Class 12 Economics board exam 2018 is available here for download in PDF format. You can download the complete question paper with the help of download link given at the end of this article.

CBSE Class 12 Economics board exam was conducted today from 10:30 AM to 01:30 PM. A team from has collected feedback (about the question paper) from the students and teachers of various schools. You can learn about the complete analysis of the paper from the link given below:

CBSE Class 12 Economics Board Exam 2018: Paper Analysis and Review

A snapshot of CBSE Class 12 Economics Question Paper 2018

All the questions from the paper are given below:


Section A

Question1. When the total fixed cost of producing 100 units is Rs 30 and the average variable cost Rs 3, total cost is : (Choose the correct alternative)

(a) Rs 3

(b) Rs 30

(c) Rs 270

(d) Rs 330

Question2. State one example of positive economics.

Question3. Define fixed cost.

The central bank can increase availability of credit by : (Choose the correct alternative)

(a) Raising repo rate

(b) Raising reverse repo rate

(c) Buying government securities

(d) Selling government securities

Question4. When the Average Product (AP) is maximum, the Marginal ProcLct (MP) is (Choose the correct alternative)

(a) Equal to AP

(b) Less than AP

(c) More than AP

(d) Can be any one of the above

Question5. What is meant by inelastic demand ? Compare it with perfectly inelastic demand.

Question6. Explain the central problem of "for shorn to produce.


Explain the central problem of "choice of technique".

Question7. What is meant by price ceiling ? Explain its implications.

Question8. Given the price of a good, how will a consumer decide as to how much quantity to buy of that good ? Explain.


'What is Indifference Curve ? State three properties of indifference curves.

Question9. When the price of a commodity changes from Rs. 4 per unit to Rs. 15 per unit, its market supply rises from 100 units to 120 units. Calculate the price elasticity of supply. Is supply elastic? Give reason.

Question10. Explain the conditions of producer's equilibrium in terms of marginal revenue and marginal cost.

Question11. State three characteristics of monopolistic competition. Which of the characteristics separates it from perfect competition and why ?


Explain the implications of the following :

(a) Freedom of entry and exit of firms under perfect competition

(b) Non-price competition under oligopoly

Question12. Explain the conditions of consumer's equilibrium using Indifference Curve Analysis.

Section B

Question13. Why does consumption curve not start from the origin

Question14. The central bank can increase availability of credit by : (Choose the correct alternative)

(a) Raising repo rate

(b) Raising reverse repo rate

(c) Buying government securities

(d) Selling government securities

Question15. Define money supply.

Question16. Which of the following affects national income ? (Choose the correct alternative)

(a) Goods and Services tax

(b) Corporation tax

(c) Subsidies

(d) None of the above

Question17. Define multiplier. What is the relation between marginal propensity to consume and multiplier ? Calculate the marginal propensity to consume if the value of multiplier is 4.

Question18. Which among the following are final goods and which are intermediate goods ? Give reasons.

(a) Milk purchased by a tea stall

(b) Bus purchased by a school

(c) Juice purchased by a student from the school canteen


Given nominal income, how can we find real income ? Explain.

Question19. The value of marginal propensity to consume is 0.6 and initial income in the economy is Rs 100 crores. Prepare a schedule showing Income, Consumption and Saving. Also show the equilibrium level of income by assuming autonomous investment of Rs 80 crores.

Question20. Explain the role of the Reserve Bank of India as the "lender of last resort".

Question21. What is meant by inflationary gap ? State three measures to reduce this gap.


What is meant by aggregate demand ? State its components.



(a) Net National Product at market price, and

(b) Gross Domestic Product at factor cost:

(Rs in crones)

(i) Rent and interest                                                   6,000

(ii) Wages and salaries                                               1,800

(iii) Undistributed profit                                               400

(iv) Net indirect taxes                                                 100

(v) Subsidies                                                              20

(vi) Corporation tax                                                    120

(vii) Net factor income to abroad                                  70

(viii) Dividends                                                           80

(ix) Consumption of fixed capital                                  50

(x) Social security contribution by employers                 200

(xi) Mixed income                                                       1,000

Question23. Explain the meaning of the following

(a) Revenue deficit

(b) Fiscal deficit

(c) Primary deficit


Explain the following objectives of government budget :

(a) Allocation of resources

(b) Reducing income inequalities

Question24. (a) Explain the impact of rise in exchange rate on national income.

(b) Explain the concept of 'deficit' in balance of payments.

Download CBSE Class 12 Economics Paper 2018 in PDF format


Related Categories


View More