School

Ihe Co-tducational

PREBOAR).2 EXAMINATION
ACADEMICSESSION :2023-24
Class XII
SUBJECT:ECONOMICS MAX MARKS: 80
TIME:3 HOURS
DATE: 11"JAN 2024

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NAME:
GENERAL INSTRUCTIONS

1. Thisquestion paper contains two sections:

Section A-Macro Economics
Section B-Indian Economic Development
l mark each.
2. This paper contains 20 Multiple Choice Questions type questions of
3. This paper contains 4 Short Answer Questions type
questions of3 markseach to be answered in 60
to 80 words.
questions of 4 marks each to be answered in 80
4. This paper contains 6 Short Answer Questionstype
to 100 words.
questions of 6marks each to be answered in 100
5. This paper contains 4 Long Answer Questions type
to 150 words.

PART A- MACR0ECONOMICS
and choose the correct alternative from the
1. Read the following statements carefully (1)
following equilibrium level of income in the
Statement I: Effective demand always corresponds to the
economy. economics is the line of reference
Statement II: 45 degree line in Keynsian
(a) Both the Statements are correct
incorrect
(b) Both the Statements are Statement ll is incorrect
correct but
(c) Statement I is
(d)Statement I is incorrect but Statement Il is incorrect.

is within the domestic territory of India2 (1)

2. Which of the following UK
a) State bank of India in
b) Google office in India
c) Office of Tata motors in USA
d) Russian embassy in India
ofincome is 1000 crores and consumption is 1200 crores, then the value
3. In an economy level (1)
of APC will be -c) 1.2
a) 1.1 d) 1.3
b) 0.2

pege 1 of 7
 carefullyandchoose the correct alternative from the
4. Read the following statements
(1)
following account uansaction.
Statement 1: NRI deposit is a current
transaction do not give rise to future claims.
Statement 2: Current account
Alternatives
a) Both statemnentsare true
b) Both statements are false
statement 2 is false
c) Statement 1is true and
false
\d) Statement 2 is true and statement 1 is

5. The value of allgoods and services can be expressed in monetary units."

On the basis of the given statement, identify the function performed by money. (1)
a) Medium of exchange c) Store of value
b) Measure of value d) Standard of deferred payment

6. Identify the correct sequence of alternatives given in column II by matching them with respective
items in column I (1)
Column I Column II

A. Lender of last resort ICurency authority of the country

B. Central bank ISale and purchase of securities by RBI
C. Open market operations IPersuation and pressure exercised by RBI
on commercial banks to regulate the supply
of credit
D. Moral persuation IVCentral bank
Alternatives
a) A- II, B-IV, C-I, D-II c) A- III, B-I, C-IV, D-II
b) A- II, B-1, C-IV, D-III d) A- IV, B-I,C-II, D-III
7. Read the following statements carefully andl choose the correct alternative: (1)
Assertion (A): APCisscontinuously increasing as income increases; APS is continuously
decreasing as income increases.
Reason (R): As incomeincreases, the proportion of income and savingincreases and proportion
of income consumed decreases.
Alternatives:
La.) Both Assertion (A) and Reason (R) are true, andI 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.
(8.) The Reserve bank of India is said to have intervened Wately to arrest the rupees slide by selling
dollars on a large scale. (1)
Source: The Economic Times
Which of the following statements regarding the above newsisfalse?
a) The transaction above will be termed as an accommodatingtransaction
b) The foreign exchange rate for one rupee mus! be rising beforeintervention
c) The value of the rupce against one dollar must berising before the intervention
d) The transaction will|be categorized as below the line itemin bop.

Page 2of 7
 subsistencelevel
income and hypothetical
of
constant at all levels function ofthis
9. If Marginal propensity to save 20% and is
is
the
consumption (1)
of the consumption in the economy is 100 crore,
economy will be
crores+ 0.2 Y
a) C= 0.2Y c) C= 900
Y
b) C= 0.8 Y )C= ]l00 crores+0.8
following (1)
statement from the
10. In context of current account,identify the incorrect
recorded as credit items
a) Export of goods and services are
b) Import of goods and services are
recorded as debit item
-c) All transfer receipts are recorded as debit item
d) Alltransfer payments are recorded as debit
items.
(3)
deficit and current account surplus.
(11. Distinguish between current account (3)
12.Calculate the value of Rent from the given data:
value in crores
Items
18,000
GDPat mp
Mixed income of self employed 7000
Subsidies 250
800
Wnterest
Rent
Profit 975
Cömpensation of employees 6000
Consumption of fixed capital 1000
Indirect tax 2000
Or
SSHigher Gross domestic product means grealer per capita availability of goods in the economy. »
Doyou agree? Give valid reasons in support of your answer c
àan economy aggregate demand function is given
by:
(4)
Autonomous consumption: 100 crores
A. Calculate the equilibrium level of income
B.
the
How much the total savings will be at

Ex- ante savings and Ex-ante investments

equilibrium level of income?
are
Cect b(y)
14. always equal." Defend or
statement with valid reasons. refute the given
Or (4)
India's GDP contracted 23.9% in the April-June -
2019-20,, suggesting that the lockdown has hit the quarter
economyof hard." 2020-21 as compared to same
period of
The
that may be
takenHindustan Times
measures

Government of1Sept
India etomber2 020
State and discuss any two fiscal by
situation indicatedin the above news report.
15. "The process of credit creation comes to an end when the correct the
hthe initial deposits." Elaborate
this statemcnt
using a total of required
16. A. From the following data,
calculate numeri
revcnue deficit and cal example. reserve become equal to
(4)
Fiscal deficit
(6)
3000
3225 5O00 page 3of 7
 2 0A. cc

Particulars Amount(in crores) de

Non tuN IOVele 2000

1200
Recovery of loans 145
Other revenue expenditure 2630
Capital expenditure S00
PSUdisinvestment 120
Interest payment 1070

(BPublic goods must be provided by the govermment." Do you agree with this statement? Justify
your answer with valid reasons,
Or
"Fiscal deficit is necessarily inflationary in nature." Do you agree?
valid reasons. Support your answer with
The Government under Uijwala yojna is providing free LPG
fumilies below poverty line." What objective the governmentkitchen
gas connections to the
is trying to fulfil through the
government budget and how? Explain
(17) 1.Real Gross domestic product is a better indicator of
Gross Domestic Product. Do you agree? Support vour answereconomic growth, rather than Nominal
with a suitable numerical example.
1. if ina locality, a new park is developed by municipal (3)
corporation,
positive and negative. State one example ofeaclh ofhoth types of it will have both externalities,
externalities with reason.
(3)

SECTIONB (INDIAN ECONOMIC DEVELOPMENI)

18. The two well managed iron and steel frns 3ue
1050-1990s were located in and
(1)
a) Mumbai, Nagpur
)Kolkata, Jamshedpur
r) Mumbai, Jamshedpur
Nagpur. Bhopal
19. Arrange the following events of China in chronological order and choose the (1)
alternative:
) Great Proletarian Cultural
Revolution
(ii) Great Leap Forward Campaign
(iii) Introduction of economic reforms
(iv) First Five-Year Plan
Choose the correct alternative:
(a) (i). (iv), (ii), (i)

2630 (b)(iv), (i), (). (i)

-(c) (i), (iv), (i), (öii)
(d) (iv). (). (i). (üi)

S }0
Page 4of 7
 achieve sustainable
20. According to Herman Daly a leadinp environmental economist, to
development, which of the following needs areto be done?
(1)
a) Limit the human population.
b) Technological progress should be input eficientand not input consuming
c) Inefficiencies arising from increasing population should be corrected
a) All of the above
alternative from the
21. Read the following statements carefully and choose the correct
(1)
following as accidental insurance
Statement 1:Under Jan Dhan yojna bank account holder can get 1-2 lakh
coverage and overdraft facility for 10.000.
Statement 2: There is need of maintaining minimum bank balance.
Alternatives
a) Both statements are true
b) Both statements are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1is false

22. Read the following statements (1)

campaign
Assertion (A): Communes were started under Great Leap Forward
transform Chinese economy in to the
Reason (R): The aim of Great Leap Forward campaign was to
world best agrarian economy.
Alternatives:
correct
a.) Both Assertion (A) and Reason (R) are true, and Reason (R) is the
Explanation of Assertion (A)
not the correct
b.) Both Assertion (A) and Reason (R)are true and Reason (R)is
Explanation of Assertion (A)
c.) Assertion (A) is true but Reason (R) is false.
d.) Assertion (A) is false but Reason (R) is true.
in content
These new and revolutionarychanges in China and India , even though they differ countries in
symbolize the new spirit of Asia and new vitality which is finding expression in the
Asia."Was quoted at establishment of People's Republic of China in 1949 by
(1)
Pt Jawahar lal Nehru
a.) Mahatama Gandhi
.) Subash Chander Bose d) None of the above

24Which out of the following is not function of Central Pollution Control board. (1)
a) They investigate , collect information related to water, air and land
pollution
b) They provide technical assistance to the government
pollution
c) They carry and sponsor inyestigation and research related to effluent and emissions
treatment to the
a) They inspect every industry to assess ue udequacy of
on monthly basis.
choOse the correct alternative from the
25. Read the following slatements carefully and
(1)
following by the World Bank and International
Statement 1: Economicreforms inChina were dictated
Monetary fund lailed to sustain the pace of growth of China.
Statement 2: The reforms introducedin 1978

Page 5 of 7
 Alternatives
a) Both statements are true
c) Both statements are false
d) Statement 1is true and statement 2 is false
a e) Statement 2 is true and statement I is false

26. The number of persons actually working or willing to work is known as

a) Participation rate mc) Work force (1)
b) Labour force d) Labour supply
27. In1955, Karve committeewas constituted for aiming the
(1)
28. "The British intended to achieve their
colonial interest
development in India." Do you agree? Give main objectivesthrough their policies of infrastructure
(3)
Or
Elaborate "growth with equity as a planning objective.
29.Navya was initially working as an office clerk in firm.In the
R income , she attended a few on the jobtraining sessions. persuit to attain a higher postion and
Job iner skills and expertise." These sessions contributed positively to
Explain the impact of Navya's decision on human
capital formation. (3)
30. Compare China with India and
Pakistan on the basis of demographic trends. (4)
Country Estimated
population in Annual growth rate Density (Per square
million of Population % km)
India
China 1352 445
1.03
Pakistan 1393 0.46 148
212 275
2.05
31. Identify the situation
Indian economy. depicted in the given Suggest the impact of indicated situation, on the
image. (4)

O m

FDRMA
SEC TpR

INFORMAY
2)
4nformalion technology
food security." Comment. plays a very
signifean role in achieving sustainable development
(4)
and

"SHGs have really been Or

helpful in neople in the rural ureas,"
Comment

empowering
 given
33. A.* In India after 1947 land reforms Were introduced on a large scale." In the light of the
(3)
statement discuss any two land reforms

B." In the post reform period, the governn.nt of Indiadecided to retain profit making pubne
sector undertakings . It provided a special otte to PSUs to enable them to expand in the global
market." Doyou agree with the given statemo9Give valid reasons in support of yOur answeT:
(3)

Or

A. Agriculture sector appears to be adversely affectedby economic reforms," Justify.

B. Economic reforms have reduced the role of public sector."" Comment.

34. Read the following passage and answer the questions given below (6)

NEW DELHI: India is the worst affected among G20nations by carbon emission induced rise in
temperatures, losing $159 billion (5.4% of itsGDP) in 2021 due to labour capacity reduction caused
by extreme heat, says report released Thursday by Climate Transparency.
on

According to the report, carbon emissions from energy use rebounded by 5.9% across G20 nations
last year and surpassedpre-pandemic leyels, causing huge income losses in services, manufacturing,
agriculture and construction sectors.
The CT - an international partnership of organizations that provide an annual stock take of G20
climate action - noted that the G20 countries support to produce fossil fuels reached new hejghts at
$64 billion in 2021 even before the energy crisis brought about by Russia's invasion of Ukraine
Flagging how G20 mnembers collectively undermine clmate efforts, the report said these nations
recorded high emissions in the energy sector desplle warnings from the IPCCthat the countries muet
halve emissions by 2030to keep the 1.5 degee Warming limit enshrined in the Paris Aoreemet
alive.
G20 member countries include big emerging economies such as the USA, China, Japan
and
Australia,
Germany, India, UK, Russia, Canada, the G20 Italy, Mexico, South Korea, South Africa, Indonesia
and Turkey among others. Though all nations except Mexico announced their
*net zero' emission reportsuggested that these countries still need to respective
and implementationtargets,
to keepthe
the 1.5 degree cof warming limit within reach. ramp up their targets
will become more severe with
Noting that the of climate change and
said 10% of the impacts population in India Brazil will likely be affectedincreasing temperatures, it
current
years as the average global last year by heatwaves
already reached about 1.1 degree C coming in
temperature
industrial projected 3 degree C of almost 30scenario above pre-
levels (1850-1900). At a
this will likely increase over 20% in Brazil andwarming
mitigation targets, under inadequate
%in India.
(source: The Times of India)
A. How carbon affecting Countries like India and
B. List any emissions are are Global warming. Brazil?
three steps to reduce