ISC Economics Sample paper 2023

ECONOMICS

Maximum Marks: 80
Time Allowed: Three hours
(Candidates are allowed additional 15 minutes for only reading the paper.
They must NOT start writing during this time).

Answer all questions in Section A, Section B and Section C.
Section A consists of objective/ very short answer type questions.
Section B consists of short answer questions.
Section C consists of long answer questions.
The intended marks for questions or parts of questions are given in brackets [ ].

SECTION A – 16 MARKS

Question 1

(i) Indifference curve is convex to the origin due to: [1]
(a) Law of demand
(b) Law of DMU
(c) Law of DMRS
(d) Law of supply

(ii) Which one of the following is a pair of direct taxes? [1] (ISC SAMPLE PAPER)
(a) Excise duty and Wealth Tax
(b) Service Tax and Income Tax
(c) Excise Duty and Service Tax
(d) Wealth Tax and Income Tax

(iii)Demand curve parallel to X axis signifies: [1] (ISC SAMPLE PAPER)
(a) perfectly elastic.
(b) perfectly inelastic.
(c) elastic.
(d) inelastic.

(iv) Which of the following is an example of complementary goods? [1]

(a) Tea and Coffee.

(b) Coke and Pepsi.

(e) None of these.

(v) The Giffen paradox, which was first observed by: [1]

(a) Sir Robert Giffen.

(b) Sir Robert paul.

ISC Economics Sample paper 2023

(vi) ______ is an expression of the technological relation between physical inputs and the output of a good. [1]

(a) Demand Function
(b) Cost Function
(c) Production Function
(d) None of These

(vii) Marginal Revenue=
(a) MRn = TR n – TR n-1
(b) MR n = Δ TR / Δ Q
(c) a and b both
(d) None of these

(viii) Which of the following is correct: [1]

(a) M1 = Currency (notes and coins) with the public + Demand deposits of Commercial Banks + other deposits held with the Reserve Bank of India.
(b) M2 = Currency (notes and coins) with the public + Demand deposits of Commercial Banks + other deposits held with the Reserve Bank of India+ Saving deposits with Post Office saving Banks.
(c) M3 = M1 + Time deposits of all commercial banks and co-operative banks (excluding interbank time deposits).
(d) All of these

(ix) Indian Railways charges lower freight rates for transporting essential products
like food, coal etc., as compared to freight charges for other products like T.V.,
Air coolers etc. This is an example of: [1] (ISC SAMPLE PAPER)
(a) Price ceiling.
(b) Price discrimination.
(c) Price control.
(d) Floor pricing.

(x) Define autonomous investment expenditure. [1]

ISC Economics Sample paper 2023

(xi) What do you mean by homogenous product? [1]

(xii) Briefly explain the concept of Depreciation or Consumption of Fixed Capital (CFC). [1]

(xiii) What will be the effect of equilibrium price if supply is decreased without any change in
demand? [1]

(xiv) State the relationship between MPC & MPS. [1]

(xv) What is the behaviour of average revenue in a market in which a firm can sell more only by
lowering the price? [1]

(xvi) A tabular statement showing various quantities of a commodity being supplied at various levels of price, during a given period of time, is known as: [1]

(a) Demand Schedule
(b) Supply Schedule
(c) Production Schedule
(d) Cost Schedule

ISC Economics Sample paper 2023

ISC Accounts Sample paper 2023-3

SECTION B – 32 MARKS

Answer the following questions briefly

Question 2

(i) State any two differences between a direct tax and an indirect tax. [2]
(ii) Refunding and Debt conversion are two methods of Debt redemption. Briefly explain these two methods of debt redemption. [2]

Question 3

Explain any four characteristics of perfect competition market. [4]
Or
Distinguish between monopoly and perfect competition. [4]

Question 4

When will equilibrium price not change even if demand and supply increase? [4]

Explain the concept of equilibrium price with the help of market demand and supply
schedules. [4]

Question 5

Distinguish between personal income and private income. [4]

Question 6

Distinguish between nominal GNP and real GNP. [4]

Question 7

Explain ‘revenue deficit’in a government budget? What does it indicate? [4]

Question 8

Explain ‘bankers’ bank, function of Central bank.[4]
Or
State the relation between AR & MR, TR & MR in an imperfect/Noncompetitive market.

Question 9

Explain the equilibrium level of income and output determination by Aggregate demand
and Aggregate supply approach with the help of a diagram. [4]

Explain the equilibrium of a firm when it enjoys supernormal profit in the short run under perfect competition. [4]

ISC Economics Sample paper 2023

ISC ACCOUNTS Sample paper 2023

SECTION C – 32 MARKS

Question 10

(i) Differentiate between total utility and marginal utility. [2]
(ii) Explain the Consumer’s equilibrium through the Indifference curve approach with
the help of a diagram.[6]

Question 11

(i) Differentiate between increase in demand and contraction of demand with the help of diagrams. [2]
(ii) Explain four properties of Indifference curves. [6]

(i) Define Producer‘s Equilibrium. Explain producer’s Equilibrium with Marginal Revenue (MR) and Marginal cost (MC) approach under perfect competition. [6]

(ii) A consumer buys 80 units of a good at a price of Rs. 5/- per unit. Suppose price elasticity of demand is (-)2. At what price will he buy 64 units? [2]

Question 12

(i) State the law of variable proportions. Explain its three stages by using a diagram. [6]
(ii) Calculate total variable cost and marginal cost at each given level of output
from the following table-

Output	0	1	2	3	4
Total Cost	200	480	720	1,080	1,240

Question 13

ESTIMATE NATIONAL INCOME BY
(a) EXPENDITURE METHOD
(b) INCOME METHOD FROM THE FOLLOWING DATA [4+4]:

Particulars	₹ In crores
Private final consumption expenditure	2100
Government final consumption expenditure	500
Net domestic capital formation	400
Net exports	(-) 50
Wages & Salaries	1700
Employer‘s contribution	100
Profit	450
Interest	200
Indirect taxes	300
Subsidies	50
Rent	100
Factor income from abroad	30
Consumption of fixed capital	250
Royalty	150