CLASS: XII

TIME: 3 HOURS MAXIMUM: 80 Marks

General Instructions:
a) Answer the questions promptly.
b) Questions 1-4 and 14-17 are having 1 mark.
c) Questions 5-8 and 18-21 are having 3 mark.
d) Questions 9-11 and 22-24 are having 4 mark.
e) Questions 12-13 and 25-26 are having 6 mark.
A-MACRO ECONOMICS
1. What is Micro-Macro paradox?
2. The balance of trade shows a deficit of ₹ 5000 crores and the value of imports is ₹
9000 crores. What is the value of exports?
3. What is the function of households in the circular flow?
4. Calculate the income level if consumption is equal to ₹1000 crores and the
consumption function is C=750+0.5y.
(4 x 1=4)
5. Briefly mention the different types of foreign exchange rate system?
6. Monetary Policy is different from fiscal policy. How?
7. Define the four measures of Money supply?
8. Calculate Net Indirect Taxes from the data given:
Particulars ₹ in crores
i. GNPMP 17,000
ii. NDPFC 6,200
iii. Depreciation 600
iv. Net factor income from abroad (-)400
(4 x 3=12)
9. What are the Objectives of a Government Budget?
10. In an economy C=500+0.9y and I=1000,
Find,
i. Equilibrium level of Income
ii. Consumption expenditure at equilibrium level of Income.
11. What do you mean by Double Counting? Explain the concept with the help of an
example.
(3 x 4=12)
12. (a) Draw figures to explain inflationary gap and deflationary gap? Explain about the
Monetary measures to correct deflationary gap?
OR
(b) Mention the main lines of distinction between Central Banks and Commercial
Banks
 13. (a) How we can calculate National Income through the Income Method? Mention any
six precautions also?
OR
(b) Calculate National Income from the following data:
Particulars ₹ in crores
i. Imports 20
ii. Govt final consumption expenditure 60
iii. Net factor income from abroad (-)5
iv. Net current transfers from abroad 5
v. Private final consumption expenditure 200
vi. Subsidies 10
vii. Indirect Taxes (GST) 40
viii. Net domestic capital formation 70
ix. Exports 20
x. Consumption of fixed capital 15
(2 x 6=12)
B-ECONOMIC DEVELOPMENT
14. Introduction of ___________________ tariff policy by the Britishers led to the decay
of Indian handicrafts industries.
15. Define disinvestment?
16. The use of advanced technology is called _____________.
17. What is Infant Mortality rate?
(4 x 1=4)
18. Mention the reasons for the decay of Indian handicrafts industries during the British
period?
19. Explain some of the non-institutional sources of rural credit in India?
20. Diagramatically explain the concept of vicious circle of poverty?
21. What is Economic System? Make a comparison of the different economic systems.
(4 x 3=12)
22. What is Green Revolution? Write any four achievements and shortcomings of green
Revolution?
23. How does infrastructure contributes to the country’s development?
24. Make a difference between formal/organised sector and informal or unorganised
sector?
25. (a) What is the meaning or poverty? Mention any eight reasons for it? Mention some
of the specific poverty alleviation programmes.
OR
(b) How organic farming leads to sustainable development? Mention any five benefits
and challenges of it.
26. (a) Land in India suffers from varying degrees and types of degradation.Write any ten
factors associated with it?
 OR
(b) Which are the long period objectives of Economic planning in India.Explain each
one of them.
(2 x 6=12)
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