Sir Padampat Singhania Education Centre

Kamla Nagar, Kanpur.

Sample paper
M.M.: 80 Class - XII
Subject – Economics (030)

GENERAL INSTRUCTIONS:
1. This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
2. There are:
➢ 20 Multiple Choice questions of 1 mark each.(q1-20)
➢ 4 Short Answer type questions of 3 marks (q.11-12 and q28-29) each to be answered in 60 to
80 words.
➢ 6 Short Answer type questions of 4 marks (q13-15) and (q30-32) each to be answered in 80 to
100 words.
➢ 4 Long Answer type questions of 6 marks(q16-17 and q33-34) each to be answered in 100 to
150 words.

SECTIONA—MACRO ECONOMICS
Q1. Read the following statements carefully:
Statement 1: Primary deficit is always less than fiscal deficit.
Statement 2: Fiscal deficit is only due to borrowing abroad
In the light of the given statements, choose the correct alternative from the following:
(a Statement 1 is true and statement 2 is false
(b Statement 1 is false and statement 2 is true
(c Both statements 1 and 2 are true
(d Both statements 1 and 2 are false

Q2. The following information is given for an equilibrium imaginary economy.

(i) Income = Rs. 5,000
(ii) Marginal Propensity to Save = 0.2
(iii) Investment Expenditure = 7 800
The value of autonomous consumption would be:
(a) Rs. 200 crore (b) Rs. 300 crore (c) Rs.400 crore (d) Rs. 500 crore

Q3. In the COVID-19 times, many economists have raised their concerns that Indian economy may
have to face a deflationary situation, due to reduced economic activities in the country. Suppose
you are a member of the high Powered committee constituted by the Reserve Bank of India (RBI.
You have suggested that as the supervisor of commercial banks, of the money supply be ensured,
by the Reserve Bank of India (RIBD).
(a) restriction (b) release (c) partially restriction (d) can't say

Q4. Read the following statements carefully:

Statement 1: BOT refers to the balance of both visible and invisible items.
Statement 2: Services of a software expert is an invisible item.
In the light of the given statements, choose the correct alternative from the following:
(a Statement 1 is true and statement 2 is false
(b Statement 1 is false and statement 2 is true
(c Both statements 1 and 2 are true
(d Both statements 1 and 2 are false

Q5. If primary deficit is 20% of fiscal deficit then interest payment will be____ if fiscal deficit is
Rs.2000 crores
(a) Rs.400 crores (b) Rs.1600 crores (c) Rs.2200 crores (d) none of the above

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 Q6.

(a)A - Capital Account; B - Portfolio Investment

(b A - Current Account; B - Portfolio Investment
(c)A - Capital Account; B - Indirect Investment
(d A - Current Account; B - Indirect Investment

Q7. Read the following statements Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Money supply in India includes demand deposits with commercial banks.
Reason (R): Demand deposits with commercial banks means fixed deposits.
Alternatives:
(a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b)Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c)Assertion (A) is true but Reason (R) is false
(d)Assertion (A) is false but Reason (R) is true
Q8. Which of the following is/are the merit(s) of fixed exchange rate?
(i) Ensures stability in exchange rate
(ii) Prevents speculation in foreign exchange market
(iii) Coordination of macro policies becomes convenient
(iv) Solves the problem of over or undervaluation of currency
(a) (i) and (i) (b) (ii) and (iii) (c) (i), (ii) and (iii) (d) (ii), (iii) and (iv)

Q9. Read the following statements- Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Interest payment by government is a revenue expenditure
Reason(R): GST is an indirect tax
Alternatives:
(a Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true

Q10. An impressive recovery in______ in the economy. (Choose the correct alternative) demand would
bring about optimism
(a) Consumption (b) Investment (c) Net exports (d) None of these

Q11.Explain the components of capital account BOP

Q12.State whether the following statements are true or false. Support your answer with reason.
(a)Taxation is an effective tool to reduce the inequalities of income.
(b)Revenue deficit increases when government fails to recover loans forwarded to

Q13. Suppose a ban is imposed on consumption of tobacco. Examine its likely effects on (a) gross
domestic product and (b) welfare.
Q14. Explain the difference between repo rate and reverse repo rate.

Q15. C = 100 + 0.8y

Calculate C if Y is ₹ 1000 and Aps also

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Q16.A) In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment
depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays GST worth Rs 30, takes home
Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20
as income tax from his income. Based on this information, complete Raju’s contribution to the
following measures of income (a) NNP at market price (b) NNP at factor cost

B) Explain any two limitations of using GDP as an index of welfare of a country.

Q17. Discuss the adjustment mechanism in the following situations :

(a)Aggregate demand is lesser than Aggregate Supply.

(b)Ex-Ante Investments are greater than Ex-Ante Savings.

SECTION B- INDIAN ECONOMIC DEVELOPMENT

Q18. In Pakistan, about__________per cent of people work in agriculture.
(a) 43 (b) 47 (c) 41 (d) 39 In

Q19. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Privatisation process leads to a change in management with a change in
ownership.
Reason (R): Change in management is not a necessary condition for the process of privatization.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (P) Is the corree explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion A
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true

Q20. The 'Operation Flood' programme was successfully implemented from the year (a)
(a)1892 (b) 1982 (c) 1970 (d) 1995

Q22.Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Pakistan shifted its policy orientation in late 1970s and 1980s.
Reason (R): A variety of regulated policy framework after independence lead to slow growth of
Pakistan.
Alternatives:
(a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b)Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c)Assertion (A) is true but Reason (R) is false
(d)Assertion (A) is false but Reason (R) is true

Q23. About_____per cent of female workforce is employed in the primary sector in India.
(a) 67 (b) 57 (c) 47 (d) 77

Q24. 'Since independence, India has witnessed a considerable fall in the Infant Mortality Rate in
India. Identify which of the following may not be one of the reasons for the fall in the Infant
Mortality Rate?
(i) Improvement in health facilities over the years
(ii) Improvement in educational standards over the years
(iii) Fall in standard of living of the population of the nation over the years
(iv) Technological expansion over the years

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 (a) (i) and (ii) (b) (iii) and (iv) (c) (ii) and (iv) (d) only (iii)

Q25. Read the following statements carefully:

Statement 1: The production of a diverse variety of crops rather than one specialized crop is
called diversification of crop production.
Statement 2: The 'Golden Revolution' was a period of very high productivity in horticulture.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false

Q26. Three-tire system of rural co-operative credit societies is:

(a) Primary Agricultural Credit Societies (PACS) (c) State Co-operative Banks
(b) Central Co-operative Banks (d) All of these
Q27. Read the following statements carefully:
Statement 1: Great Leap Forward (GLF) campaign was initiated in 1968 in China.
Statement 2: In India, maternal mortality rate is higher than Pakistan.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false

Q28. Explain any three goals of the Five Year Plans in India.

Q29."The British intended to achieve their colonial interests through their policies of infrastructure
development in India." Do you agree? Give their main objectives.

Q30."Eliminating subsidies will violate the goal of equity." Accept/Refute. Give reason in support of
your answer.

Q31. "Horticulture sector contributes to nearly one-third of the value of agricultural output."
Substantiate.

Q32. Answer the following questions on the basis of the following data:
Comment upon the contribution to GDP sector wise in India and China during 2014-2015.
Which sector is a major player in both the countries?

Q33.iComment on the picture and depict its concept

ii. Explain the non-institutional sources of agricultre credit

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Q34. Read the following text carefully and answer the given questions on the basis of the same and
common From political leaders to grassroots activists, just about everyone has an opinion on
environmental issues. While tow points may differ, there is no denying that the environment
affects everyone of us. Environmental issues re defined as harmful effects to earth and its
natural systems due to the actions of humans. Although climate Change can also occur from
natural causes, human behaviour has led to an increase in greenhouse emissions. while climate
change is discussed frequently now, it has been occurring since the industrial revolution.
Climate change affects everyone and the ramifications are visible by the variation in
temperatures and an increase of intense natural disasters. It contributes to even broader
problems like loss of biodiversity in our food systems. What's more, the negative impacts are
likely to affect those who are already the most vulnerable.
An additional concern is pollution and its influence on public health. Research shows that black
carbon is making dangerous bacteria harder to kill and resistant to antibiotics. Moreover, black
carbon increases risks of heart attacks, strokes and even lung cancer.
(a) "Opportunity cost of negative environment impact are high." Explain.
(b) "Environmental problems are new to this century." Justify the statement with valid
arguments.
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