Delhi Public School, Gandhinagar

Pre- Board Examination -1 (2020-21)

Class: XII Date: 14/12/2020
Economics
Time: 3 Hours M. Marks: 80

Name: __________________________ Sec: _________ Roll no: _______

General Instructions:
1 Answer to questions carrying 1 mark may be of one word to one sentence.
2 Answer to questions carrying 3 marks may be from 50- 75 words.
3 Answer to questions carrying 4 marks may be of 150 words.
4 Answer to questions carrying 6 marks may be of 200 words.

SECTION – A
Q.1 The common goals of India’s Five year plans are 1
(a) Population control (b) A high rate of growth
(c) Encourage exports (d) None of these
OR
Q.1 In India the twelfth plan period was from :
(a) 1980 – 85 (b) 1997- 2002 (c) 2002-07 (d) 2012-17
Q.2 Equity refers to : 1
(a) Equitable distribution of GDP (b) Development of backward regions
(c) Both (a) and (b) (d) None of these
Q.3 Stagnant economy is the one which shows 1
(a) Little growth in income (b) High growth in income
(c) Low level of productivity (d) Both (a) and (c)
Q.4 Which of the following is the limitation of Green Revolution in India? 1
(a) Uneven spread (b) Change in farmer’s outlook
(c) Self sufficiency in food grain production (d) Mechanisation of agriculture
Q.5 Which of the following was an obstacle in the development of industries after 1
independence
(a) Lack of economic infrastructure (b) Lack of capital
(c) Lack of inducement to invest (d) All of these
Q6. Expenditure on immigration is also a source of human capital formation. This statement 1
is :
(a) Always true (b) False
(c) Partly true (d) Sometimes true

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Q7. Rural development is important because 1
(a) It has a major share in agriculture (b) It provides food surplus
(c) Both (a) and (b) (d) Neither (a) nor (b)
Q8. ____________ has shown brighter signs of urbanisation. (India/ Pakistan) 1
Q9 Small scale industry is ______________. (Labour intensive/Capital intensive) 1
Q10. In which year did India implement its first Five Year Plan? 1
Q11 Why is modernisation an important objective of planning? 3
Q12 What was the focus of the economic policies pursued by the colonial government in 3
India? What were the impacts of these policies?
OR
Q12. What are the major factors responsible for the high growth of the service sector?
Q.13 Why should education of women be given importance in India? 4
Q.14 Is it necessary to generate employment in the formal sector rather than in the informal 4
sector? Why ?
OR
Q14 Education is considered to be an important input for the development of a nation. How?
Q.15 What similar developmental strategies have India and Pakistan followed for their 4
respective developmental paths?
Q.16 Explain some obstacles that hinder the mechanism of agricultural marketing.(any six) 6
OR
Q16. Discuss the main drawbacks of our health care system.
Q.17 Write short notes on : (i) Global warming (ii) Ozone depletion 6

SECTION- B
Q.18 Credit control means 1
(a) Contraction of credit only (b) Extension of credit only
(c) Extension and contraction of money supply (d) None of these
Q.19 The one rupee note and coins are issued by: 1
(a) RBI (Central Bank) (b) Commercial Bank
(c) Ministry of Finance (d) Central Government
Q.20 Which of the following is not a non-tax receipt? 1
(a) Fees (b) Fines (c) Gift tax (d) Grants and Donations
Q.21 Revenue earned by the government from the property without any legal heir is called 1
(a) Donation (b) Escheat
(c) Special assessment (d) Both (b) and (c)
OR

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Q.21 The difference between fiscal deficit and interest payment is called
(a) Revenue deficit (b) Primary deficit
(c) Budget deficit (d) Capital deficit
Q.22 On account of an injection of aggregate demand, equilibrium level of income 1
(a) Increases (b) Decreases
(c) Remains constant (d) None of these
Q.23 Wage-price spiral is a consequence of : 1
(a) Inflationary gap (b) Deflationary gap
(c) Stagflation (d) Both (a) and (c)
Q.24 Hedging is possible in 1
(a) Spot market (b) Forward market
(c) Managed floating system (d) None of these
Q.25 What is the relationship between demand for foreign exchange and exchange rate? 1
(a) Inverse (b) Direct
(c) One to one (d) No relationship
Q.26 What is meant by autonomous consumption? 1
Q.27 What is barter system of exchange? 1
Q.28 Explain the “lender of last resort” function of the central bank. 3
Q.29 In an economy, the consumption function is 250 + 0.5Y and the investment expenditure 3
is ₹ 500. Is the economy in equilibrium at an income level ₹ 2000? Justify your answer.
OR
An economy is in equilibrium. Calculate the marginal propensity to save from the
following .
(i) National income= ₹ 500 (ii) Autonomous consumption = ₹ 30
(iii) Investment expenditure = ₹ 70
Q.30 Calculate National Income from the following data through Expenditure Method: 4
Items ₹ in Crores
Private final consumption 900
expenditure
Profit 100
Government final consumption 400
expenditure
Net indirect taxes 100
Gross domestic capital formation 250
Change in stock 50
Net factor income from abroad (-)40
Consumption of fixed capital 20
Net imports 30

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Q.31 Briefly describe how the government budget contributes to the process of growth and 4
stability.
OR
Q31. Is the following revenue expenditure or capital expenditure in the context of
government budget? Give reason.
a) Expenditure on collection of taxes
b) Expenditure on purchasing computers
c) Expenditure on scholarships
d) Expenditure on building bridge
Q.32 Would the central bank need to intervene in a managed floating system? Explain why. 4
Q.33 Explain the problem of double counting. Also state the ways of avoiding this problem. 6
Q.34 Explain the determination of equilibrium level of income using ‘saving investment 6
approach’. Use diagram.
OR
Q34. What do you understand by the concept of full employment? Does it refer to a situation
of zero unemployment?

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