DELHI PUBLIC SCHOOL JODHPUR

Term Exam – II (2019–20)

Class - XII
Subject - Economics
Time : 2 Hours M.M. : 50
General Instructions :–
1. Please check that this question paper contains 02 printed pages and 21 questions.
2. All questions are compulsory.
3. Marks for questions are indicated against each.
4. Question no. 1 to 4 and 14, 15 are multiple choice questions carrying 1 mark each.
5. Question no. 5 to 8 and 16 are very short-answer questions carrying 1 mark each. Answer to them
should not exceed 30 words each.
6. Question no. 9, 10 and 17 to 19 are short-answer questions carrying 3 marks each. Answer to them
should not exceed 60 words each.
7. Question no. 11, 12 and 20 are also-short answer questions carrying 4 marks each. Answer to them
should not exceed 70 words each.
8. Question no. 13 and 21 are long-answer questions carrying 6 marks each. Answer to them should not
exceed 100 words each.
9. Answer should be brief and to the point and above word limits be adhered to as far as possible.

Section – A Macro Economics

1. If investment increases from 400 to 550 and income increases from 900 to 1650 the marginal [1]
propensity to save should be equal to :
(a) 0.1 (b) 0.2 (c) 0.3 (d) 0.4
2. Primary deficit is borrowing requirements of government for making ________: [1]
(a) Interest payment (b) Other than interest payment
(c) All types of payment (d) Some specific payment
3. The Government Budget has a revenue deficit. This gets financed by: [1]
(i) Borrowing (ii) Disinvestment (iii) Tax revenue (d) Non tax revenue
(a) i and iv (b) iii and iv (c) i and ii (d) ii and iv
4. A change from ` 140 = 2 £ to ` 60 = 1 £ indicates that domestic currency is : [1]
(a) Appreciating (b) Depreciating
(c) Neither (a) nor (b) (d) Either (a) or (b)
5. ________________ always balance in accounting sense. [1]
6. When actual stocks are less than the desired stocks? [1]
7. What is the basic difference between spot rate and forward rate? [1]
8. Name any two invisible items on current account of balance of payment. [1]
9. Given saving curve, derive consumption curve and state the steps in doing so. Use diagram. [3]
OR
Given consumption curve, derive saving curve and also explain the process of derivation. Use
diagram.
10. In an economy investment is increased by ` 300 crores. If marginal propensity to consume is [3]
2/3, calculate increase in national income also calculate autonomous consumption when income
is ` 1800 crores and investment is ` 400 crores, assuming that economy is in equilibrium.
11. What are non-debt creating capital receipts ? Explain. [4]
OR
Distinguish between : (i) Direct Tax and Indirect Tax
(ii) Revenue deficit and Fiscal deficit

(1) P.T.O.
12. (i) What will be the effect of the following on foreign exchange rate- [4]
(a) Increased purchase of petroleum products from Saudi Arab.
(b) Increased spending by Indians on holidays in USA.
(ii) The country needs a huge amount of imports for development programmes. Explain the step
which the central bank can take to make imports cheaper using the foreign exchange market.
13. What is inflationary gap ? Explain the role of cash reserve ratio and open market operation in [6]
removing this gap.
OR
What is deficient demand? Explain the role of margin requirement and reverse repo rate in
removing this gap.
Section-B Indian Economy
14. The concept of sustainable development was emphasised by : [1]
(a) Edward Barbier (b) UNCED
(c) Amartya Sen (d) World Bank
15. One child norm policy was adopted by China in : [1]
(a) Early 1970’s (b) Late1970’s (c) Early1980’s (d) Late 1980’s
16. What is the full form of AYUSH? [1]
17. Explain any three function of the environment. [3]
OR
Identify six factors contributing to land degradation in India.
18. Is it necessary to generate employment in the formal sector rather than in the informal sector? [3]
Yes or No. Give reason.
19. China’s rapid industrial growth can be traced back to its reforms in1978. Do you agree? Elaborate. [3]
20. Mention the silent demographic indicators of China, Pakistan and India. [4]
OR
Evaluate the various factors that led to the rapid growth in economic development of China.
21. (i) How has consumption pattern of energy changed over the years? [6]
(ii) Distinguish between commercial and non-commercial sources of energy.
OR
(i) What is meant by economic infrastructure? Explain its importance in economic
development.
(ii) Discuss the main drawbacks of our healthcare system.

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(2) P.T.O.