PRE-BOARD EXAMINATION

ECONOMICS
CLASS- XII

MM- 80 TIME- 3 HOURS

Part A

Q.1 Supply of money refers to………….. (Choose the correct alternative) (1)
a. currency held by the public
b. currency held by Reserve Bank of India (RBI)
c. currency held by the public and demand deposits with commercial banks
d. currency held in the government account

Q.2 Capital is a.…………..concept whereas the capital formation is a………….concept. (1)

(Fill up the blank with correct alternative)
a. Stock, flow
b. Flow, stock
c. Stock, stock
d. Flow, flow
OR
If in an economy the value of Net Factor Income from Abroad is ₹200 crores and the value of Factor
Income to Abroad is ₹40 crores. Identify the value of Factor Income from Abroad. (1)
(Choose the correct alternative)
a. ₹ 200 crores
b. ₹ 160 crores
c. ₹ 240 crores
d. ₹ 180 crores

Q.3 In the present COVID- 19 times, many economists have raised their concerns that Indian economy
may have to face a deflationary situation, due to reduced economic activities in the country.
Suppose you are a member of the high-powered committee constituted by the Reserve Bank of
India (RBI).
You have suggested that as the supervisor of commercial banks, ………..(restriction/release) of the
supply be ensured, by the Reserve Bank of India (RBI). (Choose the correct alternative) (1)
Q.4 Match the following: (1)
Column I Column II
A Direct Tax i. Sale Tax
B Fines and penalties ii. Income Tax
C Indirect Tax iii. Capital Receipts
D Recoveries of Loans iv. Administrative Revenue

Q.5 Salaries to Indian residents working in Canadian Embassy will be a part of domestic income of India.
State whether it is true or false. (1)

Q.6 RBI has the sole right to issue currency notes other than (Choose the correct alternative) (1)
a. ₹ 10 note
b. ₹ 1 note
c. ₹ 5 note
d. None of the above

Q.7 The difference by which actual Aggregate Demand exceeds the Aggregate Demand required to
establish full employment equilibrium is known as…………..(inflationary gap/deflationary gap). (1)
(Choose the correct alternative)
Q.8 Cut the Repo rate by RBI is likely to…………(increase/decrease) the demand for goods and services
in the economy. (Choose the correct alternative) (1)

Q.9 Decrease in Cash Reserve Ratio will lead to………….. (Choose the correct alternative) (1)
a. fall in aggregate demand
b. no change in aggregate demand
c. rise in aggregate demand
d. fall in general price level

Q.10 The value of MPC lies between (Choose the correct alternative) (1)
a. 0.5 and 1
b. 1 and 2
c. 0 and 1
d. None of the above
Q. 11 State with valid reason, which of the following statement is true or false: (3)
a. Gross Value Added at market price and Gross Domestic Product at market price are one and the
same thing.
b. The value of intermediate goods is not added in National Income.

Q. 12 Explain Circular Flow of Income in a two-sector economy with the help of a diagram. (3)
Or
Explain the importance of Government Budget.

Q. 13 a. Define money multiplier. (4)

b. Explain why public goods should be provided by the government.

Q. 14 ‘India’s GDP contracted 23.9% in the April-June quarter of 2020-2021 as compared to same period
of 2019-2020, suggesting that the lockdown has hit the economy hard’.
The Hindustan Times, 1st September 2020
State and discuss any two fiscal measures that may be taken by the Government of India to correct
situation indicated in the above news report. (4)

Q. 15 Briefly explain the components of money supply. (4)

OR
Government of India has launched ‘Jan-Dhan Yojana’ aimed at every household to have atleast one
bank account due to which credit creation capacity of banks has expanded manifold. Comment. (4)

Q.16 a. ‘Domestic/household services performed by a woman may not be considered as an economic

activity’.
Define or refute the given statement with valid reason.
b. ‘Compensation to the victims of a cyclone is an example of a welfare measure taken by the
government’.
State with valid reason, should it be included/not included in the estimation of the national income
of India. (6)
Or
a. Elaborate the objective of ‘allocation of resources’ in the Government budget. (6)
b. Discuss briefly how the Government budget can be used as an effective tool in the process of
employment generation.
Q.17 From the following data, calculate “national income” by (a) income method and (b) expenditure
method: (6)
Items ₹ (in crores)
1. Interest 150
2. Rent 250
3. Government final consumption expenditure 600
4. Private final consumption expenditure 1200
5. Profits 640
6. Compensation of employees 1000
7. Net factor income to abroad 30
8. Net indirect taxes 60
9. Net exports (-) 40
10. Consumption of fixed capital 50
11. Net domestic capital formation 340

Part B

Q.18 When was the New Economic Policy announced? (Choose the correct alternative) (1)
a. In July, 1991
b. In June, 1991
c. In July, 1996
d. In June, 1992

Q.19 …………. unemployment is caused when more workers are engaged in a work than are actually
required. (1)

Q.20 The sources of human capital in a country are investment in…….. and……… (1)

Q.21 Read the following statements- Assertion (A) and Reason (R). Choose one of the correct
alternatives given below: (1)
Assertion (A): India became an exporter of primary products and an importer of finished consumer
and capital goods produced in Britain.
Reason (R): Restrictive policies of commodity production, trade and tariff pursued by the colonial
government adversely affected the structure, composition and volume of India’s foreign trade.
 Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A)
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
c. Assertion (A) is true but Reason(R) is false.
d. Assertion (A) is false but Reason (R) is true.
Or
Worker Population ratio= ……………. (1)

Q. 22 Give one difference between human capital and physical capital. (1)
Q.23 Give one difference between green revolution and golden revolution. (1)
Q.24 Sansad Adarsh Gram Yojana was launched by the government in the year 2015. State whether it is
true or false. (1)
Q. 25 India entered the …………. stage of Demographic Transition after the year 1921. (1)
(Choose the correct alternative)
a. forth
b. second
c. third
d. first

Q.26 Give the full form of MGNREGA. (1)

Q.27 The rural banking structure in India consists of a set of multi-agency institutions. ……………..
(Regional Rural Banks/Small Industries Development Bank of India) is expected to dispense credit
at cheaper rates for agricultural purposes to farmers. (1)

Q.28 ‘India has emerged as a hotspot for medical tourism’. Defend the statement with valid arguments.
Or
Discuss any two steps taken by the government in the direction of improving agricultural marketing
system in India, since independence. (3)

Q. 29 Write a short note on ‘operation flood’. (3)

Q. 30 Education is considered an important input for the development of a nation. How? (4)
Q. 31 What do you mean by rural development? Bring out the key issues in rural development. (4)
Q. 32 ‘Atamnirbhar Bharat’ had been at the roots of the Indian planning process in the form of ‘self-
Reliance’ as an objective of the planning process.
Do you agree with the given statement? Justify the rationale of the given statement. (4)
Or
Explain the functions of the environment. (4)

Q.33 ‘Infrastructure contributes to the economic development of a country’. Do you agree? Explain. (6)
Or
Distinguish between: (6)
a. Economic Infrastructure and Social Infrastructure
b. Formal and Informal Sector

Q. 34 Explain the strategies for sustainable development. (6)