THE INDIAN SCHOOL, KINGDOM OF BAHRAIN

HOLIDAY HOMEWORK- 2021

Subject: ECONOMICS
Class: XII
SECTION A- INDIAN ECONOMIC DEVELOPMENT
1 The major contribution to GDP on the eve of independence was from 1

a) Tertiary sector b) Secondary sector

c) Primary sector d) Both primary and tertiary sectors

2 Under which system the goods are distributed among the people not based on what people 1
need but on the basis of their purchasing power?

a) Capitalistic system b) Socialistic system

c) Mixed economy d) None of the above

3 Structural Composition of an economy refers to, 1

a) Distribution of work force among various sectors of an economy

b) Contribution made by various sectors of an economy to its GDP

c) Composition of the Trade and Commerce of the country.

d) Contribution of the Public Sector to the GDP

4 What is Marketable Surplus? 1

5 “India could make enormous ‘export surplus’ from foreign trade during the colonial rule. 3
But it resulted in the drain of wealth of India.”- Explain with reasons.

OR

6 What were the serious challenges confronted by India at the time of independence?
Explain

7 ‘The NEP- 1991 did not contribute to the social justice and welfare of the people of the 3
nation’- Do you agree? Explain

8 What is Green Revolution? How did India benefit from the implementation of the Green 3
Revolution? Explain.

9 What was the major policy changes brought under the IPR-1956? State the reasons for 3
the encouragement given to small scale industries in connection with the new industrial
policy after independence.
10 ‘’The Nep -1991 wasn’t introduced according to the free will of the nation but was forced 4
on it by the circumstances’’-Explain the background of the NEP-1991 in this context.

11 What is meant by Occupational Structure of a country? State the features of the 4

Demography and the Occupational Structure of India at the time of independence?

OR
“The state of infrastructure was deplorable under colonial rule”- explain with reference 4
to the state of infrastructure of the country at the time of independence.

12 Briefly explain the trade policies pursued by India during 1950-1990.What were the 4
intensions behind it?

13 Explain the state of the agriculture and industrial sectors of India at the time of 6
independence.

14 What is an Economic Plan? Explain the relevance of ‘Growth’ and ‘Modernization’ as 6

fundamental objectives of the Five-Year Plans of India.

OR

Why was it necessary for a developing country like India to follow ‘Self –reliance’ and
‘Equity’ as planning objective? Explain.

15 After independence one of the urgent requirements of the nation was to uplift the 6
agriculture sector from its stagnation- What were the measures adopted by the
government of India to improve the conditions of the agriculture sector after
independence? Explain.

16 What were the Industrial Sector reforms & Trade & Investment Policy Reforms 6
implemented in the country under Liberalization? Explain

SECTION B- MACRO ECONMICS

17 Which of the following will be included in the estimation of National Income? 1
a) Expenses of electricity by a factory
b) Gifts from abroad
c) Free services by the govt.
d) Financial help to earthquake victims
18 What is GDP Deflator? How is the Real GDP a Better index compared to the Nominal 1
GDP?
19 Which of the following is not a ‘Leakage’ in the circular flow of income and product 1
a) Savings b) Capital formation
c) Import of goods and services d) Direct tax
20 The sum of the factor incomes earned within the domestic territory of a country in a year 1
is called
a) GDPmp b) GDPfc
c) NDPfc d) NDPmp
21 Expenditure of the producers on the purchase of capital goods are 1
a) Fixed investment b) Inventory investment
c) Gross investment d) Net investment.
22 Distinguish between Stock variable and Flow variable in economics. Give examples 3
OR
Distinguish between Final goods and Intermediate goods.
23 Explain the Circular Flow in a two-sector economy with the help of suitable illustrations. 3
Calculate Sales from the following data 3
24
Items Rs.in lakhs
1. Intermediate cost 700
2 Consumption of fixed capital 80
3. Change in stock -50
4. Subsidy 60
5. Net value added at factor cost 1300
6 Exports 50
OR
Calculate Gross value added at factor cost from the following data
Items Rs.in lakhs
1. Sales 8000
2 Change in stock 100
3. Subsidies 200
4. Consumption of fixed capital 300
5. Intermediate consumption 5500
6 Rent 500
25 If the Nominal GDP is Rs.375 and the Price Index is 125, what would be the Real GDP? 4
Is Real GDP a better index of economic performance of a country? Why?

26 What are the necessary precautions to be adopted in the estimation of the National 4
Income by the Income method?
OR
What are the necessary precautions to be adopted in the estimation of the National
Income by the Value-Added method?
27 What is meant by the term Domestic Territory? What are the components of 4
domestic territory of a country?
28 How are the following treated in the estimation of National Income of India? Give
reasons. 6
a) Expenditure on the purchase of an old house
b) Profits earned by the branch of a foreign bank located in India.
c) Rent paid by the Embassy of Japan in India to an Indian resident.
d) Dividend received by a foreigner from investment in the shares of an Indian
company.
29 What are the limitations of the GDP as an index of welfare? Explain. 6
30 What role does the RBI in the following as?
1. Baker to the Government
2. Banker to Banks
Calculate Gross National Product at Market Price by Income Method and Expenditure 6
31 Method
Items Rs.in
crores
1. Net Exports 25
2 Rent 35
3. Private final consumption expenditure 415
4. Interest 45
5. Dividends 50
6. Undistributed profit 10
7. Corporate tax 15
8. Govt. final consumption expenditure 115
9. Net Domestic Capital formation 65
10. Compensation of employees 400
11 Consumption of Fixed capital 25
12 Net indirect tax 65
13. Net factor income from abroad (-)10
OR
Calculate Gross Domestic Product at Market Price and Factor Income from Abroad
Items Rs.in
crores
1. Profits 550
2 Exports 40
3. Compensation of employees 1600
4. Gross National Product at factor cost 3000
5. Net current transfers from rest of the world 90
6. Rent 300
7. Interest 400
8. Factor income to abroad 120
9. Net indirect tax 300
10. Net domestic capital formation 650
11 Gross fixed capital formation 700
12 Change in stock 50