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ISC Class XII Board Examination

ISC Economics — Board Examination 2025

Board2025
Open source paper at oswaal360.com (opens in a new tab)
Board
ISC Class XII Board Examination
Class
Class 12
Subject
Economics
Year
2025
Total marks
Not verified
Duration
Not verified

Verification and rights

Follows the published ICSE syllabus structure and links back to the source, but has not been reconciled line by line against a Council document.

Imported board paper from Oswaal Books (reproduction of CISCE board paper) on 2026-08-29.

Questions in this paper

Section A

  1. 1((ii))Abhinav derives total utility of 11 utils after consuming 4 mangoes and 9 utils after consuming 6 mangoes.
    What is his marginal utility on consuming the 6th mango?    1 mark
  2. 1((iii))Law of Variable Proportions is NOT applicable when:1 mark
  3. 1((iv))Refer to the diagram given below and choose the correct statement.1 mark
  4. 1((v))Identify the correct statement with reference to the measures of money supply.1 mark
  5. 1((vi))Suppose the total receipts are `1045 Cr. and total payments are `1526 Cr. in the Balance of Payments
    account of India.
    In the above context, which one of the following can improve the Balance of Payments of India?    1 mark
  6. 1((vii))Which one of the following scenarios correctly represents a Degressive tax system?1 mark
  7. 1((viii))Given below are two statements marked Assertion and Reason. Read the statements carefully and
    choose the correct option.
    Assertion: Rise in price of burger at Burger Bliss raises the demand for burgers at Burger Heaven.
    Reason: There is a negative relationship between the demand for a good and the price of the
    complementary good.    1 mark
  8. 1((ix))Given below are two statements marked Assertion and Reason. Read the statements carefully and
    choose the correct option.
    Assertion: Commercial banks can deposit their surplus funds with RBI.
    Reason: A high reverse repo rate enables the commercial banks to earn an income.    1 mark
  9. 1((x))With the help of a diagram, illustrate the effect of an increase in the price of the product shown in Image
    A on the demand for the product shown in Image B.    1 mark
  10. 1((xi))The long run average cost curve is U shaped due to the Law of Variable Proportions. Defend or refute
    the statement with a reason.
    8 ISC Question Bank, ECONOMICS, Class-XII    1 mark
  11. 1((xii))Amit withdrew `50,000 from his savings to invest in his own business. He bought a Xerox machine for
    `30,000 for his office the same day. Identify the explicit cost and the implicit cost in the above situation.    1 mark
  12. 1((xiii))If Indian companies raise the wages in accordance with the Minimum Wage Act, it will lead to cost push
    inflation. Give a reason to support this statement.    1 mark
  13. 1((xiv))Sagarika wants to buy a car worth `10 lakhs. She has only `3 lakhs and plans to borrow the remaining
    amount from the bank.
    Name and briefly explain the selective credit control measure that enables Sagarika to get maximum loan
    from the bank.    1 mark
  14. 1((xv))Why does the supply of foreign exchange increase with an increase in the foreign exchange rate?1 mark
  15. 1((xvi))What is meant by primary deficit?1 mark

Section B

  1. 2((i))Ibrahim works as a mechanic and earns `5000 per month. To increase his family income, his wife and
    parents also begin to work. Over a period of time when his income increases to `20,000, Ibrahim asks his
    family members not to work and enjoy leisure.
    The phenomenon indicated in this situation does not conform to the Law of Supply. Give a reason to
    support this statement. Draw the supply curve based on the given situation.    2 marks
  2. 2((ii))When the price of potato chips falls from `40 to `20 per unit, its demand increases by 20 units. If the price
    elasticity of demand is (-) 0.5, calculate the quantity demanded of potato chips at `20.    2 marks
  3. 3((i))Study the schedule given below and explain the relation between Average Revenue and Marginal
    Revenue by giving a suitable reason.
    Units Price TR AR MR
    1 15 15 15 15
    2 14 28 14 13
    3 13 39 13 11    2 marks
  4. 3((ii))With the help of a diagram, illustrate the effect of a simultaneous and proportional decrease in demand
    and supply on equilibrium price and quantity.    2 marks
  5. 4((i))Why is fixed cost a short run phenomenon? Draw the Total Fixed Cost curve.2 marks
  6. 4((ii))How do Total Product, Average Product and Marginal Product behave under the Law of Increasing
    Returns to a Factor? Briefly explain one reason for the operation of this law.    2 marks
  7. 5((i))Laxman & Sons is a leading producer of perfume among many other firms. Recently, it introduced a new
    fragrance and offered gift vouchers to the customers who bought this product.
    Identify the form of market and explain the feature implied in this situation.    2 marks
  8. 5((ii))Briefly discuss the situations when a perfectly competitive firm continues to produce even after facing
    losses in the short run.
    OR    2 marks
  9. 5((i) [Section B])The main occupation of the villagers in a village is beekeeping. The villagers sell their produce only to
    firm X.
    (a) Identify the type of market prevalent here.
    (b) Is it a buyer’s market or a seller’s market? Give a reason.    2 marks
  10. 5((ii) [Section B])Monopolistic competition is a blend of perfect competition and monopoly. Discuss the statement by
    giving two reasons.
  11. 7((i))The Indian rupee fell 14 paisa to 83.91 against the US dollar on Wednesday amid outflow of foreign
    capital and volatile domestic equity markets.
    (Source(edited): The Pioneer, New Delhi, August 22, 2024)
    The above situation would lead to a surplus in Balance of Payments account of India. Defend or refute
    the statement by giving a reason.    2 marks
  12. 7((ii))The government initiated the ‘Make in India’ programme to attract global investment in the Indian
    economy. Explain the impact of this programme on the Balance of Payments account of India.
    OR    2 marks
  13. 7((i) [Section B])In July 2024, India’s retail inflation rate was 3.54%. Though it is falling yet it continues to persist.
    Explain how this would affect India’s Balance of Payments.    2 marks
  14. 7((ii) [Section B])Tata Motors’ purchase of iconic British luxury car maker Jaguar Land Rover ($2.3 billion) has proved to
    be a master stroke.
    (Source (edited): https://economictimes.indiatimes.com)
    State whether the above transaction will be recorded under the Debit side or the Credit side of Balance
    of Payments. Give a reason.    2 marks
  15. 8((i))With reference to government budget, classify the following as Revenue receipt or Capital receipt. Give
    a valid reason for each.
    (a) Financial help from a Multinational Corporation (MNC) for victims in a flood affected area.
    (b) Sale of shares of a Public Sector Undertaking (PSU) to a private company.    2 marks
  16. 8((ii))Budget 2024 outlined the sources of government revenue which comprised 19% from Income Tax, 18%
    from Goods and Service Tax and the remaining from borrowings.
    (Source (edited): Business Standard, New Delhi)
    Categorise the two types of taxes mentioned above. State any one difference between them.    2 marks
  17. 9((i))Under the Gruha Lakshmi Scheme in Karnataka, the state government provides `2,000 monthly
    assistance to head female member in each family. Will this receipt be a part of National Income accounting?
    Explain.    2 marks
  18. 9((ii))State whether the following are True or False. Give a reason for each.
    (a) In a closed economy, GDP is always equal to GNP.
    (b) Money received by an Indian cricketer as Man of the Match does not contribute to the National
    Income of India.    2 marks

Section C

  1. 10((i))The price of chocolates increased during the Valentine week in February leading to an increase in the
    supply at a greater rate.
    Identify the price elasticity of supply and illustrate it on a diagram.    2 marks
  2. 10((ii))Robert consumes commodities X and Y. The price of commodity X is `2 and the price of commodity Y is
    `1. He has decided to spend `11 on these two commodities.
    (a) Using the following schedule, identify the combination of the two commodities X and Y that gives
    maximum satisfaction to Robert.
    Units 1 2 3 4 5 6
    MUx 16 14 12 10 8 6
    MUy 10 9 8 7 6 5
    (b) State the underlying law related to the schedule given above. Mention the equilibrium condition.    4 marks
  3. 11((i))What is investment multiplier? Briefly explain how it is related to Marginal Propensity to Consume (MPC).2 marks
  4. 11((ii))Refer to the diagram given below and answer the questions that follow.
    10 ISC Question Bank, ECONOMICS, Class-XII
    (a) What does the gap EG represent? Explain.
    (b) Recommend any two fiscal measures and any two monetary measures to combat the situation
    referred to in subpart (a).    2 marks
  5. 12((i))Discuss the problem of double counting with the help of an example. How can it be solved?4 marks
  6. 12((ii))Calculate NDPFC and NNPFC on the basis of the following information.
    S.No. Items ` (in crores)    4 marks
  7. 12((i) [Section C])Factor income received from rest of the world 15
    OR
  8. 12((i) [Section C 2])Discuss two reasons for NOT considering GDP a true indicator of economic welfare.4 marks
  9. 12((ii) [Section C])Calculate GDPMP and National Income from the following information.
    S.No. Items `(in crores)    4 marks
  10. 12((i) [Section C 3])Net factor income from abroad (-) 30
    (j) Consumption of fixed capital 120
  11. 13((i))Identify the form of market referred to in the above passage. Name any two industries which come under
    the same market form.    2 marks
  12. 13((ii))Explain any two important features of the market form referred to in the passage.2 marks
  13. 13((ii) [Section C])Briefly discuss the nature of demand curve in this form of market.2 marks
  14. 13((iv))Distinguish between perfect competition and imperfect competition on the following basis:
    (a) Nature of product
    (b) Nature of demand curve    2 marks