DAY - 02 SEAT NUMBER

2022 0I 15 STD. XII

ONLINE PRELIMINARY EXAMINATION
ECONOMICS
Time : 3 hours ( 4 Pages) Max. Marks: 80

Instructions : 1) All questions are compulsory.

2) Draw tables/ diagrams wherever necessary.
3) Figures to the right indicate full marks.
4) Write answer of every new question on a new page.
Q 1 (A) Choose the correct option from given options: (5) [20]
i) Statements related to micro economics.
(a) It is the study of individual economic units
(b) It is based on certain assumptions
(c) It takes into account interdependence between aggregate economic variables
(d) It is a policy oriented science
(1) a, b, c, d (2) a, b (3) b, c, d (4) a, c, d
ii) Statements that is incorrect in relation to perfectly inelastic demand
(a) Percentage change in price has no effect on quantity demanded
(b) Co-efficient of elasticity is equal to 1 (Ed=1)
(c) Demand curve is a horizontal line parallel to X axis
(d) It is a type of price elasticity of demand
(1) a, b, c, d (2) a, b, c (3) b, c (4) a, b
iii) Features of Index numbers
(a) It is useful in framing suitable economic policies
(b) It is useful to present financial data in real terms
(c) Index numbers are statistical devices
(d) Index numbers are specialized averages
(1) c, d (2) a, b (3) b, c, d (4) a, b, c, d

iv) Essential characteristics of a tax

(a) It is a voluntary contribution to the government
(b) Every citizen of the country is legally bound to pay the tax imposed upon him
(c) Tax is imposed on income, property or commodities or services
(d) The tax payer receives direct and proportionate benefits from the government in return
xviii for the tax
(1) a, d (2) b, c (3) b, c, d (4) a, c, d
v) Features of Composition of India’s foreign trade
(a) Increasing share in Gross National income
(b) Increase in volume and value of trade
(c) Division of labour and specialization
(d) Stability in price level
(1) a, d (2) a, b (3) b, c (4) c, d

(B) Complete the following correlations: (5)

i) Income Theory : Macroeconomics :: : Micro economics
ii) Steeper demand curve : Ed<1 :: Flatter demand curve :
iii) TFC= TC - [ ] :: AC= TC/Q
iv) : C + I + G + (X - M) + (R-P)-D : : GNP : C + I + G + (X - M )+ (R - P)
v) General equilibrium : Macroeconomics :: : Micro economics

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 (C) Give economic terms for the following descriptions: (5)
i) Utility that arises when ownership of goods is transferred from one person to another
ii) Net addition made to the total cost by producing one more unit of output
iii) Device that measures changes in an economic variable or a group of variables over a period
of time.
iv) Wear and tear of capital assets due to their use in the process of production
v) Tax paid at the time of production or sale and purchase of a commodity or service

(D) Find the odd word. (5)

i) Optional functions of Government - Provision of education and health services, social
security measurement, Protection from external attacks, welfare measures
ii) Types of Utility - Total Utility, Time Utility, Possession Utility, Service Utility
iii) Unregulated Non-Bank financial intermediaries - Indigenous Bankers, Chit Funds, Nidhi,
Loan Companies
iv) Types of Demand - Individual Demand, Direct Demand, Competitive Demand,
Complementary Demand
v) Monopoly - No entry barriers, Price maker, Single seller, Downward sloping demand curve
Q 2 (A) Identify and explain the following concepts (Any THREE): (6) [12]
i) Pradnya purchased tea powder, sugar and milk to make a cup of tea.
ii) Godrej company spent around 40 crores on advertisement of its products.
ii) ‘Patanjali’ products are sold in the international market.
iv) Google has become a household name and controls more than 70% market share.
v) The price of salt decreased by 30% but Sanjana purchased the same quantity as before.
(B) Distinguish between the following (Any THREE): (6)
i) Slicing Method and Lumping method
ii) Perfect competition and Monopoly
ii) Individual Demand Schedule and Market Demand Schedule
iv) Revenue Expenditure and Capital expenditure
v) Import Trade and Export Trade.
Q 3 Answer the following questions (Any THREE): [12]
i) Explain any four features of Macroeconomics.
ii) Explain the relationship between Total Utility and Marginal utility.
ii) Explain the features of Index numbers.
iv) Explain the role of money market in India.
v) Explain non-tax sources of revenue of the government.
Q4 State with reasons whether you agree or disagree with the following statements (Any THREE) [12]
i) The supply curve of labour is backward bending.
ii) There is product differentiation under monopolistic competition.
ii) Any year can be selected as a Base year.
iv) Reserve Bank of India acts as a banker to the government.
v) Trade is an engine of growth of an economy.
Q5 Study the following table, figure, passage and answer the questions given below it (Any TWO) [08]
i) Observe the following table and answer the following questions.

Price Quantity Demanded

Market
per kg Consumer A Consumer B Consumer C Consumer D Demand
(in Rs.)
30 18 24 30 50
35 17 22 24 40
40 16 20 18 30
45 15 18 12 20
50 14 16 06 10
(1) Complete the Market Demand Schedule. (2)

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 (2) Draw a suitable Market Demand Curve based on above market schedule (2)
ii) Complete the following chart. (4)

Consumption Expenditure
on Goods and Services

Household Firms

Flows of goods and services

iii) Read the following passage and answer the questions given below:

On atte nd ing a co nfe re nce , which fo cuse d o n the role of the services sector
in Ind ian e co no my I was amaze d . The co nfe re nce g ave a ve ry
inte re sting perspective o n the ro le o f the se rvice se cto r in the g ro wth o f Ind ian
e co no my in re latio n to g ro wth rate s in ag riculture and ind ustry. The curre nt situation
in Ind ia is that the g ro wth rate o f se rvice s has o ve rtake n b o th ag riculture and industry
and is no w co ntrib uting to mo re than 50% o f GDP. The se rvice se cto r has the highest
g ro wth rate and is the le ast volatile se cto r. Gro wth is p articularly marke d in p ub lic
se rvice s, IT and financial se rvice s.
In so me are as, the g ro wth rate o f the se rvice se cto r is 40 -50% d ue to increased use
o f mo b ile te chno lo g ie s. Ind ia, the re fo re has, a se rvice -o rie nte d e co no my. It hasn't
fo llo we d trad itio nal g ro wth mo d e ls as in China. Ho we ve r, in the p ro ce ss o f doing so
it has skip p e d the manufacturing stag e and has jump e d straig ht fro m the ag riculture
stag e to se rvice stag e , which is also the main re aso n fo r the e xpansion of the service
se cto r. In fact, the situatio n no w is such that the g ro wth in the se rvice se ctor can and
will sup p o rt in the ag riculture and ind ustrial se cto rs. Ho w e ve r, the o nly se tb ack fo r
Ind ian e co no my is the lack o f g ro wth in the manufacturing se cto r which cause s
d e p e nd e nce o n o the r co untrie s, which is no t so d e sirab le in terms of job creation and
incre ase d p ro sp e rity.
Po p ulatio n is also a majo r co nce rn o f the Ind ian e co no my. As the p o p ulation of India
g ro ws so also d o e s the numb e r o f d e p e nd e nts in the p o p ulatio n in both the lower and
hig he r ag e g ro up s. In such a sce nario o f incre asing p o p ulatio n, e sp e cially in an
e co no my which still re co ve ring fro m crisis, g ro wth b e co me s d ifficult. Fo r such an
e co no my to g ro w it has to inve st. Curre ntly, the p ub lic se cto r inve sts mo re than it
save s. The ho use ho ld se cto r save s in surp lus, b ut it is no t incre asing so it canno t
co ntinue to sup p o rt p rivate and p ub lic se cto rs. The re i s a massive need to spend on
ag riculture and infrastructure d e ve lo p me nt o f the co untry. Ap art fro m that he alth and
e d ucatio n sho uld also b e the p rio rity o f the g o ve rnme nt p articularly the e ducation of
wo me n in o rd e r to re d uce the b irth rate .
(1) What d o e s the autho r me an b y the state me nt, _______ a 'g ro wth wind o w' fo r (1)
Ind ia will o p e n?
A) In the c om ing years, the Indian ec onom y will grow as the servic e sec tor of the
c ountry would be boom ing due to the foc us of the governm ent in that sec tor.

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 B) In the next two dec ades, Indian ec onom y will have an opportunity to grow as the
working population of India will be high as c om pared to the dependent population
C) The re wo uld b e o nly a small p e rio d o f time in which the e co no my of India has
to g ro w and if it fails to d o so it will ne ve r b e ab le to re co ve r fro m the economic
d o wnfall
D) Only up to the ne xt two d e cad e s wo uld Ind ian p e o p le b e inte re sted in finding
jo b s in the co untry b e yo nd which the y wo uld se arch fo r jo b s ab ro ad thus
hamp e ring the g ro wth o f Ind ian e co no m y
E) The g ro wth o f Ind ian e co no my is like a small wind o w and in o rd e r to
sub stantiate the g ro wth it is imp o rtant to incre ase the size o f the wind o w b y
imp ro ving trad e re latio ns with o the r co untrie s
(2) Which o f the fo llo wing is true as p e r the p assag e ? (1)
A) Ind ia has no t fo llo we d the co nve ntio nal mo d e l o f g ro wth and has mo ve d
d ire ctly fro m the ag riculture se cto r to the se rvice se cto r
B) The se rvice se cto r o f the co untry is ye t to make a mark o n the IT and financial
se cto rs o f the co untry
C ) With availability of labour and growth in hum an skills, the servic e sec tor of Indian
ec onom y is boom ing lim itlessly as there is no restric tion on m ovem ent of labour
D) Ind ia has b e co me se lf-re liant and d o e s no t have to d e p e nd on other countries
b e cause o f the d e ve lo p me nt in the manufacturing se cto r
E) All o f the ab o ve
(3) What d o e s the autho r me an b y the state me nt, 'to chang e the bad sectors to good (1)
se cto rs.'?
A) In o rd e r to d e al with the p ro b le m o f p o ve rty it is imp o rtant to d isting uish
b e twe e n g o o d and b ad se cto rs and e nco urag e p e o p le to start searching for jobs
in the g o o d se cto rs
B) The g o ve rnme nt sho uld make e ffo rts to imp ro ve the se cto rs that are no t
functio ning we ll in o rd e r cre ate g re ate r jo b o p p o rtunitie s in tho se sectors and in
turn e rad icate p o ve rty
C) Po ve rty alle viatio n is p o ssib le o nly. if the g o ve rnme nt und e rstand s the
imp o rtance o f g o o d se cto rs and p ro vid e s it with ne ce ssary o p p o rtunitie s
D) The b ad se cto rs o f the co untry sho uld b e id e ntifie d and such jo b s should be
o utso urce d to o the r und e rp rivile g e d co untrie s in o rd e r to e radicate poverty from
tho se co untrie s
E) Pe o p le sho uld b e e d ucate d to e nsure that the y wo rk o nly in the good sectors
and in turn the issue o f p o ve rty in the co untry is re so lve d
(4) Acco rd ing to the autho r, which o f the fo llo wing can b e said ab o ut the g ro wth of (1)
se rvice se cto r in Ind ia?
A) Ind ia is e sse ntially an ag rarian e co no my and is no t ye t re ad y to shift fo cus
fro m ag riculture se cto r to se rvice se cto r
B) The e xp ansio n o f se rvice se cto r in Ind ia was se e n mainly b e cause o f the
g ro wth in the ag ricultural se cto r
C) Ind ian e co no my canno t run o nly o n the b asis o f se rvice se cto r i.e . witho ut
furthe r d e ve lo p me nt in the ag riculture and the ind ustrial se cto r
D) The g ro wth o f se rvice se cto r in Ind ia is facilitate d b y the imp ro ve me nt in
te chno lo g y
E) It will take the se rvice se cto r at le ast aro und two d e cad e s b e fo re it can
o ve rtake the ag riculture and ind ustry se cto r

Q 6 Answer the following questions in detail (Any TWO): [16]

i) Explain the Law of Demand and its assumptions
ii) Explain the theoretical difficulties in the measurement of National Income.
ii) Explain the functions of commercial Banks.

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