Page 1 Sample Paper 15 CBSE Economics Class 12

Sample Paper 15
ECONOMICS (030)
Class XII Session 2023-24
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. “India is likely to substantially top up the allocation for ongoing Production-Linked Incentive (PLI) schemes in
the 1st February budget after seeing good results, said people with knowledge of the matter. Some new sectors
may be included in the programme that seeks to reignite manufacturing in India and boost exports, along with
other measures to spur investments,” said the ET report.
Which of the following objectives of the budget is shown in above news article?
(a) Reducing inequality of income and wealth (b) Reallocation of resources
(c) Economic growth (d) Economic stability

2. The image given below is indicating which type of exchange rate regime?

(a) Fixed exchange rate

(b) Floating exchange rate
(c) Managed floating exchange rate
(d) None of the above

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3. “Household and firms are planning to purchase less than what producers are planning to supply”. The possible
reason for this situation could be________.
(a) Aggregate demand = Aggregate supply
(b) Aggregate demand > Aggregate supply
(c) Aggregate demand < Aggregate supply
(d) None of the above

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

5. Assertion (A): Currency with public is the part of money supply in India.
Reason (R): Money supply means money available with producers of money.
In the light of the given statements, choose the correct alternative from the following:
(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

6. Statement 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. A company located in India receives a loan from a company located abroad. How is this transaction recorded in
India’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

8. What is the net domestic product at factor cost ?

Items ` (in lakhs)
Interest 700
Compensation of employees 3,000
Net indirect taxes 500
Rent and profit 700
Transfer payments by government 10
(a) `4,300 crore (b) `4,400 crore
(c) `4,500 crore (d) `4,600 crore

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

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10. Identify the correct pair from the following Column I and Column II:
Column I Column II
A. Expenditure on collection of taxes (i) Capital expenditure
B. Expenditure on scholarships (ii) Revenue expenditure
C. Expenditure on purchasing computers (iii) Revenue expenditure
D. Expenditure on building a bridge (iv) Revenue expenditure
Alternatives:
(a) D - (iv) (b) C - (iii)
(c) B - (ii) (d) A - (i)

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

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

(` 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

12. Distinguish between devaluation and depreciation of domestic currency.

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?
(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.

15. Explain all the changes that will take place in an economy when aggregate demand is not equal to aggregate
supply.


Ans :

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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.
(` 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
(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.
(a) Subsidies (b) Grants given to state governments
(c) Repayment of loans (d) Construction of school building

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Section B -Indian Economic Development

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

18. Consider the following statements with regard to external sector reforms and mark the correct combination.
(i) It falls under the category of liberalisation.
(ii) Liberalisation of foreign trade policy was a major reform undertaken.
(iii) Devaluation of Indian rupee was another major reform.
Codes
(a) Only (i) (b) (i) and (ii)
(c) All of the above (d) None of the above

19. _______refers to the stock of skills, ability, expertise, education and knowledge of a nation at a particular point
of time.
(a) Human knowledge (b) Human capital
(c) Human development (d) None of the above

20. In search of better employment opportunities, there has been a migration of agricultural workers from rural to
urban areas which in turn poses serious demographic challenges in cities.
Which of the following statements is incorrect regarding the nature of such challenges?
(a) Waste-disposal problems
(b) Insufficient water facility
(c) High energy consumption as exacerbated by increasing population density
(d) Getting a highly paid skilled job

21. Identify the correct pair from the following Column I and Column II and choose the correct alternative:
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)

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

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23. Observe the given figure carefully and answer the question that follows:

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

24. Statement 1: Organic farming is helpful in off-season crops.

Statement 2: Organic 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

25. Arrange the following events of China in chronological order and choose the correct alternative:
(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. 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. Assertion (A): All the three countries have started planning their development strategies in similar ways. India
announced its first five-year plan in 1951, Pakistan announced in 1956, and China announced in 1953.
Reason (R): Till 1980s, all three countries had similar growth rates and per capita incomes.
In the light of the given statements, choose the correct alternative from the following:
(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

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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
answer.


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

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

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 domestic products.” Discuss.

31. Give any three benefits of solar power.

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
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.”
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:
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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