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Sample Paper 6 CBSE Economics Class 12

Sample Paper 6
ECONOMICS (030)
Class XII Session 2022-23
Time: 3 Hours Max. Marks: 80
General Instructions:
1. This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Section A -Macro Economics

Multiple Choice Questions (Q1 to Q10) 1 ´ 10=10

1. Identify which of the following bank does not interact directly with the general public?
View Solution(a) Union Bank of India (b) State Bank of India
(c) Reserve Bank of India (d) Bank of India

2. A company located in India receives a loan from a company located abroad. How is this transaction recorded in
View SolutionIndia’s Balance of Payments Account?
(a) Debit side of the current account (b) Credit side of the capital account
(c) Credit side of the current account (d) Debit side of the capital account

3. ______method(s) can be used to calculate the National Income.

View Solution(a) Expenditure method (b) Income method (c) Value-added method (d) All of these


o
_______is not a component of operating surplus.
(a) Compensation of employees (b) Interest
(c) Rent (d) Royalty

4. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
View Solution Assertion (A): Currency with public is the part of money supply in India.
Reason (R): Money supply means money available with producers of money.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false

5. Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are
View Solutioncalled:
(a) Capital transactions (b) Current transactions
(c) Accommodating transactions (d) Autonomous transactions

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 Page 2 Sample Paper 6 CBSE Economics Class 12

o
Equilibrium in Balance of Payments is achieved when the net value of all the receipts and payments is:
(a) positive (b) negative (c) zero (d) None of these

6. Read the following statements carefully:

View SolutionStatement 1: State Bank of India acts as the lender of last resort in India.
Statement 2: Reserve Bank of India is the central bank of India.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true

7. The condition(s) for an institution to become a bank is/are:

View Solution(a) Advancing loans (b) Accepting deposits (c) Neither (a) nor (b) (d) Both (a) and (b)

8. Which of the following functions is not performed by Central Bank?

View Solution(a) Lender of last resort (b) Accepting deposits of general public
(c) Banker’s Bank (d) Currency authority


o
Supply of money refers to:
(a) currency held in the government account
(b) currency held by Reserve Bank of India (RBI)
(c) currency held by the public
(d) currency held by the public and demand deposits with commercial banks

9. Read the following statements carefully:

View SolutionStatement 1: Primary deposits are the initial deposits with the commercial banks.
Statement 2: Demand deposits are not included in the money supply of the country.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true

10. Read the following statements carefully:

View Solution Statement 1: BoP deficit is a situation when exports of a country are more than its imports.
Statement 2: BoP surplus means that a country’s imports are more than its exports. In the light of the given statements,
choose the correct alternative from the following:
(a) Both statements 1 and 2 are false (b) Both statements 1 and 2 are true
(c) Statement 1 is false and statement 2 is true (d) Statement 1 is true and statement 2 is false

Short Answer Questions (Q11 to Q12) 3´2=6

11. Calculate ‘value of output’ from the following data:

View Solution
(` in lakhs)
(i) Net value added at factor cost 100
(ii) Intermediate consumption 75
(iii) Excise duty 20
(iv) Subsidy 5
(v) Consumption of fixed capital 10

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12. Distinguish between devaluation and depreciation of domestic currency.

View Solution

o
How does giving incentives for exports influence foreign exchange rate? Explain.

Short Answer Questions (Q13 to Q15) 4 ´ 3 = 12

13. Explain how the following measures can be used to correct the excess demand situation?
View Solution (a) Bank Rate, (b) Cash Reserve Ratio


o
What is marginal propensity to consume? How is it related to marginal propensity to save?

14. Explain the equilibrium level of national income with the help of Saving and Investment Curves.
View Solution
15. Explain all the changes that will take place in an economy when aggregate demand is not equal to aggregate supply.
View Solution

Long Answer Questions (Q16 to Q17) 6 ´ 2 = 12

16. Calculate (a) GDP at market price (b) GNP at factor cost from the following data.
View Solution
(` in crores)
(i) Intermediate consumption
(a) Primary Sector 500
(b) Secondary Sector 400
(c) Tertiary Sector 300
(ii) Value of output:
(a) Primary Sector 1000
(b) Secondary Sector 900
(c) Tertiary Sector 70
(iii) Compensation of employees 400
(iv) Net factor income from abroad (—)20
(v) Consumption of fixed capital 40
(vi) Net indirect taxes 10
(vii) Net current transfers to abroad (—)15


o
(a) Find net national product at market price:

(` Crores)
(i) Personal taxes 200
(ii) Wage and salaries 1,200
(iii) Undistributed profit 50
(iv) Rent 300
(v) Corporation tax 200
(vi) Private income 2,000
(vii) Interest 400
(viii) Net indirect tax 300
(ix) Net factor income to abroad 20

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(x) Profit 500

(xi) Social security contributions by employers 250
(b) Find net value added at market price:
(` Lakhs)
(i) Fixed capital good with a life span of 5 years 15
(ii) Raw materials 6
(iii) Sales 25
(iv) Net change in stock (—)2
(v) Taxes on production 1

17. Giving reasons, categorise the following into revenue and capital expenditure.
View Solution (a) Subsidies (b) Grants given to state governments
(c) Repayment of loans (d) Construction of school building

Section B -Indian Economic Development

Multiple Choice Questions (Q18 to Q27) 1 ´ 10=10

18. The scheme of “Micro Finance” is extended through:

View Solution (a) NABARD (b) Self-Help Groups
(c) Regional Rural Banks (d) Land Development Banks

19. Identify the correct pair from the following Column I and Column II and choose the correct alternative:
View Solution
Column I Column II
A. Self-employed workers (i) Own and operate a business to earn their livelihood.
B. Casual wage workers (ii) They are not hired on permanent basis.
C. Regular salaried workers (iii) They get wages on casual basis.
D. Formal sector workers (iv) They work only in private sector
(a) C - (iii) (b) D - (iv) (c) A - (i) (d) B - (ii)

20. Read the following statements carefully:

View Solution Statement 1: ganic farming is helpful in off-season crops.
Statement 2: ganic farming helps in sustainable development.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true
(b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false
(d) Both statements 1 and 2 are true

21. _____refers to the stock of skill, ability, expertise, education and knowledge embodied in the people.
View Solution (a) Human capital (b) Human resource (c) Physical capital (d) None of these

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22. Observe the given figure carefully and answer the question that follows:
View Solution

Wagah Border is not only a tourist place but also used for trade between______and______.
(a) India; Pakistan (b) India; China (c) India; Russia (d) China; Pakistan

23. _____five year plan recognised the importance of human capital in India.
View Solution (a) Third (b) Seventh (c) Sixth (d) Eighth


o
The Environment Protection Act was passed in:
(a) 1990 (b) 1988 (c) 1986 (d) 1984

24. Economic reforms were initiated in______in China.

View Solution (a) 1978 (b) 1988 (c) 1965 (d) 1975


o
Pakistan announced its first five year plan in
(a) 1954 (b) 1956 (c) 1949 (d) 1951

25. Arrange the following events of China in chronological order and choose the correct alternative:
View Solution(i) Special Economic Zones
(ii) Great Proletarian Cultural Revolution
(iii) Commune System
(iv) Establishment of People’s Republic of China
Choose the correct alternative:
(a) (iv), (i), (ii), (iii) (b) (iv), (iii), (ii), (i) (c) (ii), (iv), (iii), (i) (d) (ii), (iv), (i), (iii)

26. India announced the New Economic Policy after agreeing to the conditions of:
View Solution (a) World Bank (b) Reserve Bank of India
(c) International Monetary Fund (d) Both (a) and (b)


o
Along with the World Bank and_____, WTO is the third economic pillar of worldwide dimensions.
(a) International Monetary Fund (IMF)
(b) International Economic Association (IEA)
(c) International Funding ganisation (IFO)
(d) International Development Bank (IDB)

27. GST stands for_____.

View Solution (a) Goods and Sales Tax (b) Goods and Simple Tax
(c) Goods and Services Tax (d) None of these

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Short Answer Questions (Q28 to Q29) 3´2=6

28. “The government should continue with agricultural subsidies.” Do you agree? Give reason in support of your
View Solution answer.


o
“Globalisation has produced some negative results for India.” Explain.

29. Elaborate one hurdle faced by the land ceiling legislation.

View Solution

Short Answer Questions (Q30 to Q32) 4 ´ 3 = 12

30. “Inward looking trade strategy’ adopted by India in the first seven plans basically aimed at substituting imports with
View Solution domestic products.” Discuss.

31. Give any three benefits of solar power.

View Solution

o
Mention any three limitations of organic farming.

32. “Existence of widespread unemployment in India is the cumulative result of many causes.” Explain any four main
View Solution causes of unemployment in India.

Long Answer Questions (Q33 to Q34) 6 ´ 2 = 12

33. What is rural development? “Co-operative marketing is considered as the third aspect of government initiative.”
View Solution Explain.


o
Analyse the distribution of workforce by the industrial sectors in India.

34. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
View Solution The reform and open-door policy of China began with the adoption of a new economic development strategy
at the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party (CCPCC) in late
1978. Under the leadership of Deng Xiaoping, the Chinese government began to pursue an open-door policy,
in which it adopted a stance to achieve economic growth through the active introduction of foreign capital and
technology while maintaining its commitment to socialism. The obvious aim of this policy shift was to rebuild its
economy and society that were devastated by the Cultural Revolution. The government subsequently established
a number of areas for foreign investment, including the special economic zones, open coastal cities, the economic
and technology development zones, the delta open zones, the peninsula open zones, the open border cities, and the
high-tech industrial development zones. The establishment of these zones provided the trigger for massive inflows
of foreign investment, primarily from companies in Hong Kong and Taiwan. At the same time, China promoted its
socialist market economy concept. The changes brought an entrepreneurial boom that resulted in the emergence of
huge numbers of entrepreneurs and venture businesses within China.
(a) What was open-door policy? Why was it initiated in China?
(b) How did the policy of open-door helped Chinese economy? Also, name the areas established by the Chinese
government for foreign investment.

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