Maharashtra 12th HSC Economics Question Paper with Solution: Download PDF

Preparing for the Maharashtra Board Class 12 Economics exam becomes more manageable with a focused approach, and practising previous years' question papers is a key strategy. This article presents a compilation of the last three years' Economics question papers with detailed solutions. By working through these papers of class 12 Maharashtra board exam, students gain insight into the exam format, familiarize themselves with the types of questions asked, and develop effective strategies for answering them. This practice helps identify key topics, enhances problem-solving skills, and boosts confidence, ensuring a thorough preparation for the Economics exam.

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This Story also Contains

1. Trends of Maharashtra State Board 12th Economics Previous Year Question Papers
2. Maharashtra Class 12 Economics Question Paper with Complete Solution
3. Benefits of Practicing the Maharashtra 12th Board Economics Question Papers

Trends of Maharashtra State Board 12th Economics Previous Year Question Papers

Certain major trends have been noticed in the Maharashtra State Board class 12 Economics previous year question papers, which can assist students to prepare accordingly. Over these years, the question papers have maintained a good balance between the various sections like Microeconomics, Macroeconomics, Indian Economic Development, and Statistics for Economics. Given below are the major trends observed:

• 2024 Trends: The final paper in 2024 contained an overall mix of topics with a heavy emphasis on Microeconomics and Indian Economic Development. Various questions, in general, had a comprehensive focus on market structures, consumer behaviour, and economic reforms. A more anti-cyclical shift towards practical-based and application-based questions was found, normally representative of modern trends in education, which emphasize the critical abilities of thinking and the actual working of concepts intrinsic to Economics.

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• 2023 Trends: The 2023 paper, though set a bit differently, still attached considerable importance to Macroeconomics and Statistics. Particular areas that were well tested include national income accounting, money and banking, and statistical methods like correlation and index numbers. This thus shows that macroeconomic principles and statistical tools are very fundamental in the analysis of economic data and therefore important for higher education and professional fields in economics.

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• 2022 Trends: The paper in 2022 was majorly based on Indian Economic Development and critical analysis of economic policies. There was significant emphasis laid on topics like poverty, unemployment, and economic planning in India. Many questions demanded detailed analysis and interpretation of the economic scenario, underpinning analytical skills and a deep understanding of issues in the Indian economy. This trend reflects one of the broadened educational approaches that include an appreciation of economic policies and critical thinking in the context of national development.

Maharashtra Class 12 Economics Question Paper with Complete Solution

Question 1: Explain the concept of price elasticity with its types.

Solution: Price Elasticity of Demand (PED) is a measure that quantifies the responsiveness of the quantity demanded of a good or service to a change in its price. It is a crucial concept in economics as it helps understand how changes in price affect consumer behaviour and revenue.

The formula for calculating the price elasticity of demand is:

FED= Percentage change in quantity demandedPercentage change in price

Types of Price Elasticity of Demand:

1. Elastic Demand (PED > 1):

2. 
   

   • When the absolute value of PED is greater than 1, demand is considered elastic. This means that the percentage change in quantity demanded is greater than the percentage change in price. Consumers are highly responsive to price changes.

   • Example: Luxury goods or non-essential items often have elastic demand. For instance, a significant price increase in designer handbags may lead to a large decrease in the quantity demanded.

3. Inelastic Demand (PED < 1):

4. 
   

   • When the absolute value of PED is less than 1, demand is inelastic. This implies that the percentage change in quantity demanded is less than the percentage change in price. Consumers are less responsive to price changes.

   • Example: Necessities such as basic food items and prescription medications often exhibit inelastic demand. A price increase in these goods may not significantly reduce the quantity demanded.

5. Unitary Elastic Demand (PED = 1):

6. 
   

   • When the absolute value of PED is exactly 1, demand is unitary elastic. This indicates that the percentage change in quantity demanded is equal to the percentage change in price.

   • Example: If the price of a product increases by 10% and the quantity demanded decreases by 10%, the demand is unitary elastic.

7. Perfectly Elastic Demand (PED = ∞):

8. 
   

   • In this scenario, any change in price leads to an infinite change in the quantity demanded. Consumers will only buy the product at a specific price, and even a small increase in price will reduce the quantity demanded to zero.

   • Example: This is a theoretical concept rarely seen in real markets, but it can be exemplified by a perfectly competitive market for a standardized product where all sellers charge the same price.

9. Perfectly Inelastic Demand (PED = 0):

10. 
    

    • In this case, the quantity demanded remains constant regardless of any change in price. Consumers will buy the same quantity of the product even if the price changes.

    • Example: Essential medications for life-threatening conditions might demonstrate perfectly inelastic demand if there are no substitutes and the medication is crucial for survival.

Question 2: Explain the concept of National income and explain the practical difficulties involved in the measurement of National income.

Solution: National Income is one of the important subject matters of macroeconomics. The total income of the nation is called national income. In real terms, national income is the flow of goods and services produced in an economy during a year. The various practical or statistical difficulties in the measurement of national income are as follows:

1. Depreciation: Depreciation refers to the wear and tear of capital assets due to their use in the production process. Since there are no uniform or accepted standard rates of depreciation applicable to various assets, it is difficult to make correct deductions for depreciation.
2. Illiteracy And Ignorance: Due to ignorance and illiteracy, small producers do not keep account of their production. As a result, they are unable to give accurate information about the quantity or value of their output.
3. Valuation of Inventories: Inventories refer to the raw materials, intermediate goods, semifinished and finished products in the stock of producers. If there is a mistake in the calculation of inventories, then the value of the final production will be incorrect. Therefore, the valuation of inventories requires careful assessment.
4. Inadequate And Unreliable Data: The data on production and cost relating to crops, fisheries, animal husbandry, forestry, construction workers, small enterprises etc is inadequate and inaccurate. Additionally, data on unearned incomes, consumption and investment expenditure of rural and urban population are also not available. Due to the unavailability of data, it is difficult to estimate the actual size of national income.
5. Difficulties in the Classification of Working Population: In India, the working population is not clearly defined. E.g.: Indian farmers are not engaged in agriculture throughout the year. In the off-season, they engage themselves in alternative occupations. In such a case, it is very difficult to identify their income from a particular occupation.

Question 3: State and explain the law of supply with assumptions.

Solution: The law of supply is based on the following assumptions:

1. Constant cost of production: It is assumed that there is no change in the cost of production. A change in the cost of production will affect the profits of the seller. Therefore less quantity will be supplied at the same price.
2. Constant production technique: It is also assumed that the production technique does not change. Improved production techniques may lead to an increase in production, which in turn may lead to an increase in the supply at the same price.
3. No change in weather conditions: It is assumed that there is no change in the weather conditions. Natural calamities like floods, earthquakes etc. may decrease supply.
4. No change in Government policy: It is also assumed that government policies like taxation, trade, etc., remain unchanged.
5. No change in transport cost: It is assumed that there is no change in the condition of transport facilities and transport costs. For example, a better transport facility increases supply at the same price.
6. Prices of other goods remain constant: Prices of other goods are assumed to remain constant. If they change, the law of supply may not hold true because producers may transfer resources to other products.
7. No future expectations: The law also assumes that the sellers do not expect future changes in the price of the product.

Question 4: A table seller sold the table for ₹ 2,000 per piece. In this way, he sold 15 tables and earned ₹ 30,000. The the cost price per table is:

Solution: Total revenue is the total sales proceeds of a firm by selling a commodity at a given price. It is the total income of a firm.

Now, let's calculate the cost price per table:

Total earnings = Selling price per table * Number of tables sold

So, ₹ 30,000=₹ 2,000 *15

To find the cost price per table:
Cost price per table = Total earnings / Number of tables sold
Cost price per table =₹ 30,000 / 15
Cost price per table =₹ 2,000

Therefore, the cost price per table is ₹ 2,000.

Question 5: Explain the meaning of index number. Explain various steps involved in the construction of index numbers.

Solution: An index number is a statistical measure designed to show changes in a variable or a group of related variables with reference to time, geographical location, and other characteristics such as income, profession, etc.

Index numbers are one of the most used statistical tools in economics. An index number is a device to measure changes in an economic variable (or group of variables) over a period of time.

The following steps are involved in the construction of index numbers:

1. Purpose of index number: The purpose for constructing the index number, its scope as well as which variable is intended to be measured should be clearly decided to achieve fruitful results.
2. Selection of the base year: The base year is also called the reference year. It is the year against which comparisons are made. The base year should be normal i.e. it should be free from natural calamities. It should not be too distant from the past.
3. Selection of items: It is necessary to select a sample of the number of items to be included in the construction of a particular index number. For example, in the construction of price index numbers, it is impossible to include each and every commodity. The commodities to be selected should represent the tastes, habits, and customs of the people. Besides this, only standardized or graded items should be included to give better results.
4. Selection of price quotations: Prices of the selected commodities may vary from place to place and shop to shop in the same market. Therefore, it is desirable that price quotations should be obtained from an unbiased price reporting agency. To achieve accuracy, a proper selection of representative places and persons is required.
5. Choice of a suitable average: The construction of index numbers requires the choice of a suitable average. Generally, the Arithmetic mean is used in the construction of index numbers because it is simple to compute compared to other averages.

Download the complete PDF here - Maharashtra HSC Economics Previous Year Question Paper with Solutions

Benefits of Practicing the Maharashtra 12th Board Economics Question Papers

• Familiarization with Exam Pattern: Students gain a clear understanding of the exam format, question types, and distribution of marks, which helps in efficient preparation.
• Improved Accuracy: Regular practice helps in honing accuracy in answering questions by providing insights into common question patterns and effective answer strategies.
• Enhanced Time Management: Working through previous papers allows students to develop effective time management skills, ensuring they can complete the exam within the allotted time.
• Identification of Key Topics: Analyzing past papers helps in identifying frequently asked topics and recurring questions, enabling focused revision on critical areas.
• Boosted Confidence: Familiarity with the exam format and question types through practice builds confidence, reducing exam-related anxiety and improving performance.

Conclusion

In conclusion, practising previous years' question papers for the Maharashtra 12th Board Economics exam is invaluable for mastering the exam format, enhancing accuracy, and managing time effectively. By identifying key topics and developing confidence through this focused practice, students can significantly improve their preparation and performance for the Economics exam.