CBSE S C O R E R

ECONOMICS
Class-XII

TERM-2
Mock Papers

Naveen Sadhu
New Era Public School,
Sector-25, Dwarka, N.D.

PREMIER PUBLICATIONS
1029-B, Dr. Mukherjee Nagar Delhi-110009
Ph. : 011-27603695, 9312265077, 9311265077
1. “Circular Flow of Income principle is based on the assumption — one’s expenditure is other’s income.”
Justify the given statement.
OR
‘‘Final goods are those goods which are consumed only by the households.’’ Defend or refute the given
statement with a valid argument.
2. Define Autonomous Consumption Expenditure
OR
Define Average Propensity to Consume
3. In an economy, investment increases by ` 1,000 crore and marginal propensity to save is 0-25.Calculate
total increase in income (Δ Y)
OR
Calculate Investment Expenditure from the following information.
S.No. Particulars Amount (in `)
(i) Equilibrium level of income 5,000
(ii) Autonomous consumption 500
(iii) Marginal Propensity to Save 0.4
4. Traditional knowledge and practices are still applicable in ensuring sustainable development. Comment
5. State the meaning of ‘Morbidity rate’.
6. “Increase in domestic income always leads to an increase in national income.” Do you agree with the
given statement ? Support your answer with valid example.
7. State whether the following statements are true or false. Give reasons for your answer:
(a) APC increase with increase in income. (b) APS can never be 1 or more than 1.
8. The following diagram shows distribution of workforce in India. Analyse and compare the nature of
workforce distribution.
Are a wise Employment Distribution

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 OR
India’s environmental problems pose a dichotomy - they are poverty induced and, at the same time,
due to affluence in living standards. Establish the rationale of the given statement with valid reasons.
9. Discuss any two similar developmental strategies followed by India and Pakistan after 1947
10. China’s rapid industrial growth can be traced backto its reforms in 1978. Do you agree? Elucidaste.
11. (a) Year 2016 - 17 2017 - 18 2018 - 19
Nominal GDP 65 8-4 9
GDP deflator 100 140 125
On the basis of the hypothetical information given above, state for which year are Real GDP and
Nominal GDP equal. 2
(b) (i) Calculate the value of ‘Sales’ from the following data: 3
S. No. Items Amount (in ` Crore)
1. Net Value Added at Factor Cost 800
2. Subsidies 40
3. Change in Stock (-) 70
4. Sales ?
5. Intermediate Consumption 450
6. Consumption of Fixed Capital 40
12. Explain the equilibrium level of income with AD and AS approach. What happens when AD and AS
are not equal? (Use diagram).
OR
Explain the equilibrium level of income with saving – investment approach. What happens when
saving and investment are not equal? (Use diagram).
13. Read the following text and answer the question number 13.
Over years India’s soft infrastructure grew much faster than the hard infrastructure. For example, India's
rising trade has been reflected in growing container port traffic,which increased from less than a million
in 1991 to about 5 million in 2005 with an annual growth rate of about 266% since 1991.In contrast,
hardware components,like railway,roadways and airways witnessed little expansion in last one and half
decades. In general, performances of these sectors( hardware )are never the less poor, when counted their
densities in terms of country's surface area of population .Densities in terms of access or spread of rail and
road length clearly indicate that road sector has been successful,compared to railways,in spreading the
network as well as providing and assess in the economy. In order to unleash India's full potential
development of hardware component of India's physical infrastructure perhaps deserves utmost attention
This also indirectly indicates high investment potentials in roadways, railways ,power and the associated
components in India.
Changes observed in Earth’s climate since the early 20th century are primarily driven by human activities,
particularly fossil fuel burning, which increases heat-trapping greenhouse gas levels in Earth’s atmosphere,
raising Earth’s average surface temperature. These human-produced temperature increases are commonly
referred to as global warming. Natural processes can also contribute to climate change, including internal
variability (e.g., cyclical ocean patterns like El Niño, La Niña and the Pacific Decadal Oscillation) and
external forcings. (e.g., volcanic activity, changes in the Sun’s energy output, variations in Earth’s orbit).
(a) Explain the two categories into which infrastructure are divided. How are both interdependent?
3
(b) Highlight any two serious adverse environmental consequences of development in India. 2

Economics-XII Mock Paper 3

1. Differentiate between Real GDP and Nominal GDP. 2
OR
Differentiate between stock and flow.
2. Saving function S = –25 + 0.25 Y and planned investment expenditure is ` 400 crores, Calculate equilibrium
level of income. 2
OR
Every time income increases 80% of increased income is spent on consumption. Find change in income if
investment rises by ` 1000 crores.
3. When MPC rises consumption curve shifts upward. Defend or refute with reason. 2
OR
Name the two components of consumption function and also show in consumption function equation.
4. State the meaning of Global burden of Disease. 2
OR
“The widening gap between GDP growth and employment is a serious issue”. Explain.
5. “Despite of several health care measures initiated by the government female wellbeing remains the cause
of concern for one and all”. Substantiate. 2
6. Giving reason, state whether the following statements are true or false 3
(a) Consumption can’t exceed income.
(b) If ratio between MPCand MPS is 3:1 value of investment multiplier is. 3
OR
How equilibrium level of national income is reached when planned savings are greater than planned
investment?
7. (a) “Unemployment is the major hindrance in pursuinggovernment objective of inclusive growth”.
Justify this statement.
(b) “Women in rural areas are ready to work even at low wages”. Explain the possible causes for the
same. 3
8. Analyze the datarelated to India, China and Pakistan of their sectoral share in GVA and % of workforce
employed of 2018-19 in percentage. 3
Country Workforce Contribution Workforce Share of Workforce Share service
Engaged in in GVA in agriculture in service Sector
Industries industries agriculture in GVA sector In GVA
India 25 30 43 16 32 54
China 28 41 26 7 46 52
Pakistan 24 19 41 24 35 57
Read the following text carefully and answer the question number 9 given below:

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 China-Pakistan Relations
Since establishing diplomatic ties in 1951, China and Pakistan have enjoyed a close and mutually beneficial
relationship. Pakistan was one of the first countries to recognize the People’s Republic of China in 1950
and remained a steadfast ally during Beijing’s period of international isolationin 1960s and early 1970s.
China has long provided Pakistan with major military, technical, and economic assistance, including
transfer of sensitive nuclear technology and equipment. Pakistan continues to face economic woes with
falling foreign investment, a weakening currency, and an under performing stockmarket, securing closer
economic cooperation with Beijing is seen as vital. Pakistan Balance of payment deficit was huge and
China acted as creditor too to help Pakistan to come out of this situation.
9. “Pakistan needs China more than China needs Pakistan”. Explain this statement in respect to the benefits
received by Pakistan. 3
10. Giving reasons state whether the following be part of domestic factor of India. 3
(a) Salary received by American working in Punjab National Bank in Ludhiana.
(b) Purchase of goods by foreign tourists
(c) Salary received by an Indian working in Japanese embassy in India.
11. (a) “Deflationary gap is worse than inflationary gap”. Explain why? Also state one point of difference
between both of them. 3
(b) Briefly explain how government can check the problem of deficient demand through its spending?
2
12. (a) Calculate Domestic Factor Income from the following : 3
Items ` crores
(i) Wages and salaries in cash 2700
(ii) Rent free accommodation to staff 300
(iii) Value of Free education to children of employee 200
(iv) Medical allowance 50
(v) House Rent Allowance 70
(vi) Value of subsidized food at place of work 100
(vii) Travelling allowance reimbursed 213
(viii) Social Security contribution by employee 197
(ix) Operating Surplus 400
(x) Rent 15
(xi) Mixed income of self employed 570
(xii) Subsidy 20
(b) Differentiate between consumption of fixed capital and Capital Loss. 2
OR
(a) Calculate Change in stocks from the following: 3
Item ` Lakhs
(i) Sales 700
(ii) Subsidies 20
(iii) Exports 50
(iv) Net value added at factor cost 400
(v) Current replacement cost 40
(vi) Purchase of raw material 300
(vii) Import of raw material 100

Economics-XII Mock Paper 5

 (b) Differentiate between ‘net factor income from abroad’ and ‘net exports’. 2
Read the following text carefully and answer the question number 13:
The environment is important to all species. It is the place where we grow as a human. It is our mentor;
we learn to adopt various climate changes from the environment. It is our moral duty to protect our
environment from degradation. It is man-made concrete and the era of industrialization which is the
source of environmental degradation.
The quality of air, water, and our natural greenery are depleting. Unfortunately, there are various factors
affecting our environment. Sometimes it's natural and sometimes man-made pollution. Sadly, air quality
is highly affected by the increase in the amount of CFC, CO2. Vehicle, Industrial Chimneys and sometimes
due to agro-smoke air quality is highly deteriorating.
If we talk about Water Pollution, again there are manmade reasons for it. Industrial Waste, Household
water, etc are selfishly dumped in the ocean, river and other water reservoirs. Natural Calamities disturb
our environment. These calamities are powerful enough to destroy the natural and man-made world.
13. (a) List the causes of environmental degradation. 3
(b) Why is it important for man to protect the environment? 2

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