Class 12

23-24 /ECO/T
KENDRIYA VIDYALAYA SANGATHAN

CLASS: XII MAX MARKS: 40
SUBJECT: ECONOMICS Time : 90 Minutes
General Instructions:
i) Attempt all questions.
ii)All questions are compulsory..
1 Inventory is a ...................concept whereas the change in inventory is a ...................... concept. 1
(Fill up the blank with correct alternative)
a. stock, flow b. flow, stock c. stock, stock d. flow, flow
2 From the statements given in Column I and Column II, choose the correct pair. 1
Column - I Column- II A.
A Vegetables grown in the Personal garden (i) Non marketing activity
B A car used as a taxi (ii) Consumer good
C An air-conditioner used by household (iii) Capital good
D. Scholarship given to students by (iv) Factor income government
Alternatives: (a) A- (i) (b) B- (ii) (c) C- (iii) (d) D- (iv)
3 Which one of the following statements is correct? 1
a) NNPMP = NDPFC - Net Factor Income From . b) GDPFC = GDPMP +Net indirect taxes.
. abroad
c) NNPFC = NDPFC + Net Factor Income From d) GDPMP = NDPFC + consumption of fixed
. abroad capital.
4 Define externalities. 1
5 Which of the following is a flow? 1
Deposits in a bank b)Capital
c) Depreciation d)wealth
6 If Nominal GDP is ₹ 840 crore and GDP Deflator is 7/5, Calculate Real GDP 1
7 Assertion (A): The goods which are used either for resale or for further production in the same year are 1
Intermediate goods.
Reason (R) : Intermediate goods are included in National Income.
Choose the correct alternative from the following:
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.
8 Read the following statements carefully: 1

Statement I: Domestic Income is a territorial concept.
Statement II: Domestic Income includes the value of final goods and services produced in the entire world.
In the light of the given statements, choose the correct alternative from the following:
Statement I is true and statement II is false.
Statement I is false and statement II is true.
Both statements I and II are true.
Both statements I and II are false.
9 Statement 1: Money received from the sale of second-hand cars will be considered while estimating national 1
income.
Statement 2: Their value is already included and it does not contribute to the current flow of goods and services.
Choose the correct alternative from the following:
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)
10 True or False 1
Capital formation is as stock.
11 Explain the concept of circular flow of income with diagram. 2
12 Differentiate between Nominal GDP and Real GDP. 2
13 Calculate the value of National Income from the following data : 6
S No. Particulars Amount (in ₹ crore)
i Rent and Royalties 1,300
ii Net Indirect Taxes 200
iii Wages& Salaries (in cash & in kind) 1,700
iv Corporate Tax 400
v Depreciation 400
vi Retained Earnings 300
vii Dividends 400
viii Net Factor Income from Abroad (-) 120
ix Mixed Income of Self Employed 1400
x Change in Stock (-) 200
OR
Suppose in a financial year, the Gross Domestic Product (GDP) at market price of a country was
₹ 1,100 crore. Net factor income from Abroad was ₹ 100 crore, the net indirect taxes was ₹ 150
crore and National income was ₹ 850 crore. Calculate the value of depreciation, on the basis of
above information.
Indian economic development
14:- Which sector was expanded by the British raj to improve the market size for the goods of the British?
A . Airways B. Railways C. Roadways D. All of the above
15:- What was the land settlement system introduced by the British Government in India? 1
A. Zamindari System B. Dowry System C. Panchayati Raj system D. All of the above
16:- How was the economy of India before British rule? 1
A. Before the rule of the British, the livelihood of Indians was mainly based on the agricultural sector.
A. Before British rule, the Indian economy was an independent economy and India had a flourishing market.
B. The handicrafts of India, metallic work and textile industries had the market all over the world.
C. All of the above
17:- Mention the correct statement about the industrial sector in the Indian economy on the eve of
Independence. 1
A. Exporting of raw materials to Britain was reduced by India.

A. India had to face the ultimate shortage of goods which were produced in the country itself.
B. Reduced the rate of growth of the industrial sector in India.
C. The goods in India that were imported by Britain were of cheap quality.
20:- What was the main reason behind the private sector not coming forward to start the capital
goods industries? 1
A. The private sector suffered from a lack of capital
B. The private sector suffered from a lack of demand for their finished goods
C. The private sector suffered from a lack of capital as well as a lack of demand for their finished goods
D. None of the above
18 :- Which of the following statements about the Indian Economy is true during the Era of 1950-1990? 1
a. The abolition of intermediaries was a part of the industrial reforms in India
b. The abolition of intermediaries was a part of the external sector reforms in India
c. The abolition of intermediaries was a part of the land reforms in India
d. The abolition of intermediaries was a part of the banking reforms in India
19: - Assertion (A): Growth and social justice is the central objective of Indian plans. Reason (R): India
opted for planning to utilize available resources efficiently and to establish social justice. 1
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
20:- Assertion (A): Subsidies were, needed to encourage farmers. Reason (R): Any new technology is
looked upon as being risky by farmers 1
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).
d) Assertion (A) is false but Reason (R) is true
Read the following hypothetical text and answer the given questions: -
India’s economy under the British colonial rule remained fundamentally agrarian — about 85 per cent of the
country’s population lived mostly in villages and derived livelihood directly or indirectly from agriculture
(See Box 1.2). However, despite being the occupation of such a large population, the agricultural sector
continued to experience stagnation and, not infrequently, unusual deterioration. Agricultural pro-ductility
became low though, in absolute terms, the sector experienced some growth due to the expansion of the
aggregate area under cultivation. This stagnation in the agricultural sector was caused mainly because of the
various systems of land settlement that were introduced by the colonial government. Particularly, under the
zamindari system which was implemented in the then Bengal Presidency comprising parts of India’s
present-day eastern states,
21:- The main reason for stagnation in the agriculture sector the British rule was: 1
a) Technological deceleration b) Problems of irrigation facilities c) Land settlement system d) De-
industrialization
22:- (A): Zamindari (Semi Feudal Economy) in the colonial era were also responsible for the misery of
the cultivators. (R): The terms of revenue settlement system introduced were harsh on the Zamindars.
a) Both Assertion (A) and Reason (R)are true and Reason (R) is the correct explanation of Assertion (A). 1
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
d) Assertion (A) is false but Reason (R)is true.
23.What was the condition of foreign trade under British rule? 1
a) Surplus on account of foreign trade was spent on war expenses
b) Net exporter of raw materials
c) Net importer of finished goods reproduced by British India
d) All of these
26:- What were the main causes of India’s agriculture stagnation during the colonial period ? 3
27:- Were there any positive contribution made by the British rule India ? Discuss 3
28:- Explain the need and type of land reforms implemented in the agriculture sector. 4
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23-24 /ECO/T

KENDRIYA VIDYALAYA SANGATHAN

8 Read the following statements carefully: 1

A . Airways B. Railways C. Roadways D. All of the above

16:- How was the economy of India before British rule? 1

A. Exporting of raw materials to Britain was reduced by India.

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