ECONOMICS (030)

Class 12 - Economics

AA
Time Allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains two sections:

EM I M
Section A – Macro Economics
Section B – Indian Economic Development

2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.

AD SH
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.

4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.

Y
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.
AC TO

SECTION A – MACRO ECONOMICS

1. The downward-sloping demand curve for foreign exchange reflects [1]
N
SA

a) Indirect relationship b) Inverse relationship

RI

c) Exponential relationship d) Direct relationship

2. Which of the following is not a part of legal tender money? [1]
SH

a) Optional money b) Unlimited legal tender money

c) Fiat money d) Limited legal tender money

3. If APC = 0.6, APS = ________ [1]

a) 1 b) -0.4

c) 2.4 d) 0.4
4. Statement I: The Reserve Bank of India (RBI) sells foreign exchange in the foreign exchange market when [1]
there is a deficit in balance of payments.
Statement II: The increase (decrease) in official reserves is called the overall balance of payments deficit
(surplus).

a) Both the statements are false. b) Statement II is true and statement I is false.

1/7
 c) Statement I is true and statement II is false. d) Both the statements are true.
5. In the given figure, what does the gap KT represent? [1]

AA
a) A situation of Deficient Demand b) Over full employment equilibrium

EM I M
c) Full employment equilibrium d) A situation of Excess Demand
6. If the value of export of merchandise is ₹1,500 crore and imports of goods are 20 percent more than exports. The [1]
value of imports and trade deficit will be ₹________ crores and ₹________ crores respectively.

a) 1,200; 300 b) 1,800; 3,300

c) 1,200; 3,300
AD SH d) 1,800; 300

Y
7. Statement I: Deflationary gap indicates deficient demand in an economy. [1]
AC TO
Statement II: Average propensity to save (APS) is the ratio of total saving and total income.

a) Statement I is true, Statement II is false. b) Both the statements are true.

c) Statement II is true, Statement I is false. d) Both the statements are false.

N

8. When planned savings exceed planned investment, the level of income and employment will tend to ________. [1]
SA

a) Rise b) None of these

c) Remain constant d) Fall

9. Assertion (A): Real Flow is also known as Nominal Flow. [1]
Reason (R): Real Flow involves flow of goods and services between firms and households.
RI

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
SH

c) A is true but R is false. d) A is false but R is true.

10. Value of Money Multiplier ________ with an increase in Cash Reserve Ratio. [1]

a) Increases b) Remains unchanged

c) Rise d) Decreases
11. Define Trade Surplus and Trade Deficit. [3]
12. Discuss briefly the three components of operating surplus. [3]
OR
Calculate Gross Value Added at Market Price:

[Link]. Particulars (₹ in lakh)

(i) Depreciation 20

2/7
 (ii) Domestic Sales 200

(iii) Change in Stocks (-)10

(iv) Exports 10

(v) Single use producer goods 120

13. Distinguish between voluntary unemployment and involuntary unemployment. What is the significance of this [4]
distinction?
OR
Calculate ‘Autonomous Consumption Expenditure’ from the following data about an economy which is in

AA
equilibrium :
National Income = Rs 900
Marginal Propensity to Save = 0.10

EM I M
Investment Expenditure = Rs 80
14. Explain the situation of excess demand in an economy with the help of diagram. [4]
15. In the given figure, what does the gap KT represent? State and discuss any two fiscal measures to correct the [4]
situation.
AD SH
Y
AC TO
N
SA

16. Answer question (A) or (B) the following: [6]

(a) Answer the following questions:
i. Can there be a fiscal deficit in a government budget without a revenue deficit? Explain. [3]
ii. Explain the meaning and implications of revenue deficit. [3]
RI

(b) Answer the following questions:

i. Define disinvestment. [2]
SH

ii. What is a budget line? Why the budget line is left to right downward sloping? [4]

17. I. While estimating Gross Domestic Product (GDP) by expenditure method, entire focus is on expenditures [6]
incurred by the residents of the country. Do you agree with the given statement? Give valid reason in support
of your answer.
II. Calculate the value of Domestic Income from the following data:

S. No. Particulars Amount in (₹ crore)

(i) Rent and Royalties 1,300

(ii) Net Indirect Taxes 200

(iii) Wages & Salaries (in cash & in kind) 1,700

(iv) Corporate Tax 400

3/7
 (v) Depreciation 400

(vi) Retained Earnings 300

(vii) Dividends 400

(viii) Net Factor Income from Abroad (-) 120

(ix) Mixed Income of Self Employed 1,400

(x) Change in Stock (-) 200

SECTION B – INDIAN ECONOMIC DEVELOPMENT

AA
18. When a worker is engaged by someone and paid wages on daily basis, he is called: [1]

a) Self -employed b) Regular salaried employee

c) Wage employed d) Casual wage labourer

EM I M
19. Which of the following best explains the slowdown of growth and re-emergence of poverty in Pakistan's [1]
economy?
a. Agricultural growth and food supply situation were based not on an institutionalised process of technical
change but on good harvest. AD SH
b. Most foreign exchange earnings came from remittances from Pakistani workers in the Middle-east and the

Y
exports of highly volatile agricultural products.
AC TO
c. There was also growing dependence on foreign loans on the one hand and increasing difficulty in paying
back the loans on the other.
d. All of these
N

a) Option (d) b) Option (b)

c) Option (a) d) Option (c)

SA

20. The contribution made by each of the sectors of the economy, namely the agricultural sector, the industrial sector [1]
and the service sector, makes up the ________ of the economy.
a. Structural composition
RI

b. Sectoral composition
c. Occupational structure
d. None of these
SH

a) Option (a) and (c) b) Option (b) and (d)

c) Option (a) and (b) d) Option (a) and (d)

21. Assertion (A): Growth of GDP has primarily been triggered by the growth of secondary and tertiary sectors. [1]
Reason (R): Setback to the agricultural sector implies a setback to the principal source of livelihood of the
masses in India.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

22. World Bank in its report India and the knowledge Economy-leveraging strengths and opportunities advised [1]
India to make a transition to ________.

4/7
 a) industrial economy b) knowledge economy

c) agrarian economy d) all of these

23. Study the following picture: [1]

AA
Identify the kind of activities, which may be envisaged under ________ as diversification activity.

a) Fisheries b) Organic farming

EM I M
c) Animal Husbandry d) Horticulture
24. In 1965, Mao introduced the _____________ under which students and professionals were sent to work and [1]
learn from country side

a) Great Leap Forward

AD SH b) Economic reform

Y
c) SEZ d) Great Proletarian Cultural Revolution
25. Select the correct combination between the following columns. [1]
AC TO

Column A Column B

(a) Socialism (i) Coexistence of both public and public sector

N

(ii) Produced goods are distributed on the basis of purchasing power of

(b) Capitalism
the people.
SA

(c) Mixed economic system (iii) What, how and for whom to produce

(d) Central problems of an economic (iv) Produced goods are distributed on the basis of need and not
system affordability.
RI

a) (a) - (ii), (b) - (iv), (c) - (i), (d) - (iii) b) (a) - (iv), (b) - (i), (c) - (ii), (d) - (iii)

c) (a) - (i), (b) - (iv), (c) - (ii), (d) - (iii) d) (a) - (iv), (b) - (ii), (c) - (i), (d) - (iii)
SH

26. The _______ emphasises on protecting the future generation. [1]

a) Brundtland Commission b) Herman Daly Commission

c) Kothari Commission d) UNCED Commission

27. Statement I: Under the colonial rule, basic infrastructure (like railways, post and telegraph etc.) was developed. [1]
Statement II: The real motive behind the infrastructural development in India was to strengthen the British
interests.

a) Both the statements are false. b) Statement II is true, but statement I is false.

c) Statement I is true, but statement II is false. d) Both the statements are true.
28. Study the following images carefully: [3]

5/7
 Identify and discuss briefly the types of employment sectors indicated.
29. How has population explosion and the advent of industrial revolution resulted in environmental crisis? [3]

AA
OR
A truck driver had to pay Rs. 2,000 as challan as his truck was emitting black soot. Why do you think he was
penalised? Was it justified? Give reasons.

EM I M
30. What are the benefits of globalisation? [4]
OR
Why did RBI have to change its role from controller to facilitator of financial sector in India?
31. Explain the modernisation as a long-term objective of planning in India. [4]
AD SH [4]

Y
AC TO
32.
N

An image displays a field with monoculture farming and another with mixed cropping.
SA

i. Identify both farming practices.

ii. State one benefit and one disadvantage of mixed cropping relative to monoculture for sustainability.
33. Answer the following questions: [6]
(a) Answer the following questions:
RI

i. The Government of India has taken various measures to align the agricultural marketing [3]
system with the growing production activities in the rural areas.
SH

Do you agree with the given statement? Give any two valid reasons in support of your answer.
ii. Give three basic objectives of co-operative credit socities. [3]
(b) Answer the following questions:
i. Explain any two objectives behind providing more and more institutional credit to farmers. [3]
ii. The debate over farm subsidies in India is enraged at different platforms. Discuss any two [3]
arguments in favour of continuing farm subsidies.
34. On the basis of the given data: [6]
Some Selected Indicators of Human Development, 2017-2019

Item India China Pakistan

Human Development Index (Value) 0.645 0.761 0.557

Rank (based on HDI) 130 87 154

6/7
Life Expectancy at Birth (years) 69.7 76.9 67.3

Mean years of Schooling (% aged 15 and above) 6.5 8.1 5.2

Gross National Income per capita (PPP US$) 6.681 16.057 5.005

Percentage of People living Below Poverty Line (National) 21.9* 1.7** 24.3*

Infant Mortality Rate (per 1000 live births) 29.9 7.4 57.2

Maternal Mortality Rate (per 1 lakh births) 133 29 140

Population using at least basic Sanitation (%) 60 75 60

AA
Population using at least basic drinking Water Source (%) 93 96 91

Percentage of Undernourished Children 37.9 8.1 37.6

Note: * for the year 2011 : for the years 2015.

EM I M
Sources: Human Development Report 2019 and 2020.
i. Identify one income indicator and one health indicator, each. (3)
ii. Compare India and China on the basis of any one of the indicator identified above in part (i). (3)
AD SH
Y
AC TO
N
SA
RI
SH

7/7