ST.

GEORGE’S SCHOOL, ALAKNANDA

MID-TERM EXAMINATION (2022-23)
SUBJECT: ECONOMICS
CLASS- XII
MAX. TIME: 3 HOURS MAX.MARKS: 80
DATE: / /2022 NO.OF PAGES: 04
General Instructions:
 All questions in both sections are compulsory. However, there is internal choice in some questions.
 Questions no. 1-10 and 18-27 are very short answer questions carrying 1 mark each. They are
required to be answered in one sentence.
 Questions no. 11-12 and 28-29 are short answers carrying 3 marks each.
 Questions no.13-15 and 30-32 are also short answer questions carrying 4 marks each.
 Questions no. 16-17 and 33-34 are long answer questions carrying 6 mark each.
SECTION A (MACRO ECONOMICS)
Choose the correct option
Q1. If nominal Income is Rs.600 and Price Index is 100. What is real income?
a) 600 b) 100 c) 580 d) 45
Q2. GDP Deflator shows change in GDP due to change in the
a) Real income b) Monetary income c) Price level d) Flow of goods.
Q3. Those deposits which arise on account of loans by the banks to the people are called:
a) Primary deposit b) Secondary deposit c) Cash deposit d) Term deposit
Q4. Which of the following is not a component of M1 measurement of money supply?
a) Demand deposit b) Currency c) Other deposit d) Term deposit
Q5. Term deposits are near money, therefore treated as a component of M1, supply of money. (State true/
false with reason)
Q6. Reverse Repo Rate:
a) Generally interest income for commercial banks
b) Is increased to curb inflation
c) Is not a policy rate
d) Both (a) and (b)
Q7. Demand Deposit include saving account deposit and ……………………………………. .
Q8. If LRR = 20 %, the value of money multiplier would be ……………………. .
Q9. Firm A spent Rs. 500 on non-factor inputs and produced goods worth Rs.900. It sold goods worth
Rs.600 and Rs.300 to Firm B and consumer. Find GVA by Firm A.
Q10. Find Value output if output sold = 1000 units and price per unit = Rs 30 and net change in stock = -500.
Q11. Can GDP be used as an index of welfare of the people? Give reasons.
OR
How externalities are a limitation in taking GDP as an index of welfare? Explain.
Q12. Explain how Open Market Operations are helpful in controlling credit creation.
Q13. What is double counting? What are the ways of avoiding the problem of double counting?
Q14. Will the following factor income be included in domestic income of India? Give reasons for your
answer.
a. Compensation of employees to the resident of Japan working in Indian embassy in Japan.
b. Payment of fees to chartered accountant by a firm.
c. Rent received by an Indian resident from Russian Embassy in India.
d. Compensation given by insurance company to an injured worker.
Q`15. Explain the process of credit creation by the commercial banks.
Q16. Calculate Gross national income at market price by a) income, and, b) expenditure method:
ITEMS RS IN CRORE
1. Net exports 25
2. Rent 35
3. Private final consumption expenditure 415
4. Interest 45
5. Dividends 50
6. Undistributed profits 10
7. Corporate taxes 15
8. Government final consumption expenditure 115
9. Net domestic capital formation 65
10. Compensation of employees 400
11. Consumption of fixed capital 25
12. Net indirect taxes 65
13. Net factor income from abroad -10
Or
Given the following data, find the values of operating surplus and Gross Domestic capital formation:
ITEMS RS IN CRORE
1. Government final consumption expenditure 2000
2. Mixed income of self-employed 1500
3. National income 12,000
4. Net factor income from abroad 200
5. Operation surplus ?
6. Profits 500
7. Private final consumption expenditure 6,000
8. Net indirect taxes 700
9. Net exports 1800
10. Consumption of fixed capital 600
11. Gross domestic capital formation ?
12. Wages and salaries 6,000
Q17. Find Intermediate consumption from the following: (3 + 3)
Items Rs.
a. Value of output 220
b. Net value added at factor cost 100
c. Sales tax 15
d. Subsidy 5
e. Consumption of fixed capital 20
(II) Briefly outline the steps involved in the estimation of national income with the help
of income method

SECTION B (INDIAN ECONOMIC DEVELOPMENT)

Q18 Match the following:
A.TISCO 1) 1869
B. YEAR OF GREAT DIVIDE 2) 1881
C. OPENING OF SUEZ CANAL 3)1907
D.FIRST OFFICIAL CENSUS 4) 1921
Q19. When was Sarva Shiksha Abhiyaan was launched?
a) 2001 b) 2002 c) 2003 d) 2004
Q20. When did RTE act become operational?
a) 2005 b) 2008 c) 2010 d) 2011
Q21. Which of the following is the reason for low human capital formation in India?
a)Brain Drain b) Low academic standards c)Rising population d)All of these
Q22. Which of the following industries was not reserved for the Government in Industrial Policy Resolution?
a) Iron and steel b)Atomic energy c)Railway transport d) Air transport
Q23. Which one of the following measures was not a part of tenancy reforms?
a) Fixation of land ceilings b) security of tenure c)Regulation of rent d) Ownership rights for
tenants
Q24. The number of industries reserved for the public sector under economic planning between 1950-1990 is
-----------
a) 17 b) 2 c) 5 d) none of these
Q25. Which of the following was not a structural reform measure?
a) Trade and capital flows reforms b) industrial deregulation
c) Fiscal correction d) disinvestment and public sector reforms
Q26. The two important agencies in the field of higher and technical education are UGC and
………………………….
Q27. Expenditure on vaccination is included under expenditure on curative medicines.
(True or False)
Q28. “Human capital focuses on productivity but human development focuses on human welfare “ . Explain
the statement.
OR
How does Investment in Human Capital contribute to growth?
Q29. How does demonetization help in i) tax compliance ii) digitization of the economy?
Or
Discuss economic reforms in India in the light of social justice and welfare.
Q30. Do you think outsourcing is good for India? Why are developed countries opposing it?
Q31. Give a quantitative appraisal of India’s demographic profile during the colonial period.
Q32. Does Modernisation as a planning objective create contradiction in the light of employment generation?
Explain.
Or
Why and how was private sector regulated under the IPR 1956?
Q33. What are the main problems of human capital formation in India?
Or
What is the role of education in economic development?
Q34. ” November 8, 2016 was the day when Rs 500 and Rs. 1,000 Notes were withdrawn from the economy.
It amounted to withdrawal of 86 % currency in circulation. It led to impact on all sections including
households, traders and industrialist. “
In the light of above case, do a critical appraisal of the demonetization policy.
………………………………………………………………………………………………………………