Class 12 Economics Sample Paper Term 1 with Solutions Set B

Please refer to Class 12 Economics Sample Paper Term 1 With Solutions Set B provided below. The Sample Papers for Class 12 Economics have been prepared based on the latest pattern issued by CBSE. Students should practice these guess papers for class 12 Economics to gain more practice and get better marks in examinations. The Term 1 Sample Papers for Economics Standard 12 will help you to understand the type of questions which can be asked in upcoming examinations.

Term 1 Sample Paper for Class 12 Economics With Solutions Set B

Question. Which of the following goods follows law of demand?
(a) Normal goods
(b) Inferior goods (which are not giffen)
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. Elasticity of demand for comfort goods are ……… .
(a) highly elastic
(b) moderately elastic
(c) inelastic
(d) highly inelastic

Question. Demand curve of a giffen good is upward sloping. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Choose the correct pair from given below.

Codes
(a) A – (i)
(b) B – (ii)
(c) C – (iv)
(d) All of the above pairs are incorrect

Question. Assertion (A) Elasticity of demand plays a vital role in deciding the shape of demand curve for a normal good. 
Reason (R) Demand curve for a luxury good is flatter as compared to the demand curve of a normal good.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both are false

Question. Choose the incorrect pair from given below.

Codes
(a) A – (i)
(b) B – (ii)
(c) C – (iii)
(d) D – (iv)

Question. At all points on an indifference curve, a consumer gets ……… level of satisfaction.
(a) same
(b) increasing
(c) decreasing
(d) All of the above

Question. In which of the following case, demand curve for a normal good will not shift from its original position?
(a) Increase in income of the consumer
(b) Increase in the price of good concerned
(c) Decrease in the price of its complementary goods
(d) None of the above

Question. The demand of sanitizers suddenly increase during the covid-19 pandemic. Study of this market comes under the scope of study of which of the following branches of Economics?
(a) Microeconomics
(b) Macroeconomics
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. Normative statements can never be converted in positive economics under any circumstance. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Assertion (A) Verification of any given statement is possible only in case of normative sciences.
Reason (R) Economist uses various statements to represent different economic situations either based upon judgement or facts.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both are false

Question. Assertion (A) When more of a good is demanded at the same price, Law of DMU does not hold true for that good.
Reason (R) Law of DMU has universal acceptability with few assumptions, postponements and exceptions.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is false, but Reason (R) is true
(d) Both are false

Case Based MCQ :

Question. What will be the demand curve of perfectly inelastic demand curve?
(a) Horizontal line parallel to X-axis
(b) Vertical line parallel to Y-axis
(c) Straight line passing through origin
(d) Rectangular hyperbola

Question. Demand of cigarettes among youth in the above case is ……… .
(a) elastic
(b) inelastic
(c) perfectly elastic
(d) perfectly inelastic

Question. Assertion (A) Total expenditure remains high on the commodity with low price elasticity of demand.
Reason (R) Consumption of tobacco products including cigarettes have inelastic demand as compared to non-tobacco products.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (a) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is falsebut Reason (R) is true
(d) Both are false

Question. In Indian markets, it has been observed that in spite of increased taxes demand for tobacco products remained high. Choose the most appropriate reason from the given below points.
(a) Strong taste and preferences
(b) Unawareness about the ill effects
(c) No proper implication of policies
(d) All of the above

Question. Impact on demand for tobacco product is found to be ………… in teenagers.
(a) elastic
(b) inelastic
(c) perfectly inelastic
(d) perfectly elastic

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