ST. LUKE'S SEN. SEC.

SCHOOL SOLAN
(H.P) PRE-MID EXAMINATION – MAY’ 2021

Name: SET -B
Class: XII Subject: ECONOMICS (030) Time Allotted: 1 Hour
Roll No: Date: 19-05-2021 M.M: 20

Note: WRITING TIME: 9:00 am – 10:00 am SUBMISSION TIME: 10:00 am- 10:30 am

General Instructions:
❖ All questions are compulsory.
❖ Marks are indicated against each question.
❖ Write the answers in proper sequence.

Q1. National income includes :-

a) old age pensions b) money sent by an NRI to his family in India
c) transfer payments from rest of the world d) none of these 1
Q2. Sate the meaning and components of money supply 1
Q3. Bank money is that money which is :-
a) printed by RBI b) printed by the government
c) generated in the form of credit creation d) none of these 1
Q4. Define high powered money. 1
Q5. Define stock and flow variables with example 1
Q6. ________ investment refers to change in stock during the year ( fixed /inventory) 1
Q7. Explain the process of credit creation by commercial banks with numerical example. 3
Q8. Government incurs expenditure to popularise yoga among the masses. Analyse its 3
Impact on Gross Domestic product and welfare of the people.
Q9. Given the following data, find the values of “Operating Surplus” and “Net Exports” 4

Sr. No Items Rs. (in crore)

1. Mixed income of self employed 700
2. Net factor income from abroad 150
3. Private final consumption expenditure 2200
4. Profits 200
5. Net indirect taxes 150
6. National income 5000
7. Gross domestic capital formation 1100
8. Wages and Salaries 2200
9. Net Export ?
10. Government final consumption expenditure 1300
11. Consumption of fixed capital 200
12. Operating surplus ?

10. Explain the precautions to be taken while calculating National income by Expenditure 4
Method.