Page 1 Sample Paper 20 CBSE Economics Class 12

Sample Paper 20
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. “Suppose there has been an increased demand of Japanese Yen in July 2022, which has resulted in its appreciation
and depreciation of Indian rupee.” What could be the possible reason(s) for the same?
(a) There has been an increased demand of Japanese goods by Indian residents
(b) Indian government decided to repay the loan taken during Covid-19
(c) Indian tourists have considered visiting Japan during their vacations
(d) All of the above

2. Assertion (A): Rent received by an Indian real estate company from Google in New York would be recorded on
credit side of capital account.
Reason (R): Capital account of BoP records all those transactions, between residents of a country and rest of the
world, which causes a change in the assets or liabilities of the residents of the country or its government.
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

3. Which out of the following items is not included in money supply of a country?
(a) Demand deposits (b) Coins and Currency
(c) Time deposits (d) None of these

4. What will be the value of total deposits if initial deposit is `500 crores and LRR is 10%?
(a) `4,000
(b) `4,500
(c) `4,500
(d) `5,000

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5. Statement 1: A bank is a financial institution whose demand deposits are widely accepted as money for making
payments and has the power to create money.
Statement 2: Central bank is a financial institution which accepts deposits from the public and advances loans to
others.
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

6. Identify which of the following are the sources of demand for foreign currency.
(i) Import of goods and services
(ii) For making investments abroad
(iii) Export of goods and services
(iv) Grants and donation
(a) (i) and (iii) (b) (i) and (ii)
(c) (ii) and (iv) (d) (iii) and (iv)

7. Observe the image given below carefully and identify the objective that government should pursue to deal with
this situation.

(a) Increase in economic growth

(b) Reducing inequality of income and wealth
(c) Reallocation of resources
(d) None of the above

8. Identify the correct pair from the following Column I and Column II:
Column I Column II
A. Investment by Apple phones in India (i) Credit side of current account of BoP
B. Remittances to relative staying abroad (ii) Debit side of current account of BoP
C. Export of software to Germany (iii) Debit side of current account of BoP
D. Import of Machinery from France (iv) Capital account of BoP

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Alternatives:
(a) B - (ii) (b) A - (i)
(c) D - (iv) (d) C - (iii)

9. ______exchange rate is officially declared by the government.

(a) Floating (b) Fixed
(c) Managed floating (d) None of these

10. In order to encourage investment in the economy, the Central Bank may_______.
(a) increase cash reserve ratio (b) reduce cash reserve ratio
(c) increase bank rate (d) sell government securities in open market

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

11. Name the broad categories of transactions recorded in the ‘capital account’ of the Balance of Payments Accounts.

12. Calculate (a) GNPMP and (b) NNPFC from the following data.
(` in crores)
(i) GDPFC 25,215
(ii) Net indirect taxes 1,575
(iii) Depreciation 1,000
(iv) Net factor income from abroad 40


o
Interpret the picture on account of domestic and national income.

Short Answer Questions (Q13 to Q15) 4 ´ 3 = 12

13. Explain the concept of ‘Break-even point’ with the help of a diagram.

14. Distinguish between average propensity to consume and average propensity to save. What is the relation between
the two?

15. Explain the components of savings function S =− C + ^1 − bh Y .

o
Explain the components of aggregate demand.

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Long Answer Questions (Q16 to Q17) 6 ´ 2 = 12

16. (a) Calculate Gross National Product at Factor Cost from the following data by the Income Method:
(` in crores)
(i) Private final consumption expenditure 1,000
(ii) Net domestic capital formation 200
(iii) Profits 400
(iv) Compensation of employees 800
(v) Rent 250
(vi) Government final consumption expenditure 500
(vii) Consumption of fixed capital 60
(viii) Interest 150
(ix) Net current transfers from rest of the world (—) 80
(x) Net factor income from abroad (—) 10
(xi) Net exports (—) 20
(xii) Net indirect taxes 80
(b) Find out 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


o
(a) Calculate National Income:

(` crores)
(i) Corporation tax 100
(ii) Private final consumption expenditure 900
(iii) Personal income tax 120
(iv) Government final consumption expenditure 200
(v) Undistributed profits 50
(vi) Change in stocks (-) 20
(vii) Net domestic capital formation 120
(viii) Net imports 10
(ix) Net indirect tax 150
(x) Net factor income from abroad (-) 10
(xi) Private income 1,000
(b) Explain the treatment assigned to the contribution to provident fund by an employee.

17. How can the instrument of government budget in an economy be used for proper allocation of resources and
economic stability?

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Section -Indian Economic Development

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

18. Observe the given image carefully and answer the question that follows:

Dam construction work is a ________ way of employment generation by the government.

(a) hidden
(b) indirect
(c) direct
(d) None of these

19. Which of the following is the apex body of rural finance in India?
(a) Reserve Bank of India
(b) Regional Rural Bank
(c) Land Development Bank
(d) National Bank for Agriculture and Rural Development

20. Identify the incorrect statement(s) from the following:

(a) Human capital represents enhanced labour productivity.
(b) Investment in human capital enhances efficiency and skills, implying economic growth.
(c) Human capital is separable from its owner.
(d) Human capital treats human beings as a means to an end.
(a) only (ii)
(b) only (iii)
(c) (i) and (ii)
(d) (iii) and (iv)

21. During the colonial period life expectancy was:

(a) 32 years
(b) 68 years
(c) 54 years
(d) 50 years

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22. Arrange the following events of China in chronological order and choose the correct alternative:
(i) Special Economic Zones
(ii) Introduction of Economic Reforms
(iii) First Five Year Plan
(iv) Great Leap Forward campaign
Choose the correct alternative:
(a) (iv), (iii), (ii), (i)
(b) (ii), (iv), (iii), (i)
(c) (ii), (iv), (i), (iii)
(d) (iv), (ii), (i), (iii)

23. Assertion (A): Great Proletarian Cultural Revolution was started in the year 1966 in China.
Reason (R): It aimed at industrialising the country on a massive scale.
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

24. Statement 1: Work Participation Rate (WPR) is a measure of proportion of the country’s unemployed people.
Statement 2: The formula to calculate worker population ratio is total number of workers of divided by population
multiply by 100.
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. From the set of events/systems given in Column I and corresponding relevant fact given in Column II, choose the
correct pair of statement:
Column I Column II
A. India had about 473 million strong workforce (i) 2012-13
B. People moved from self-employment to casual wage work (ii) 1974-2015
C. India started paying attention to enterprises in the informal sector (iii) Late 1975
D. A study showed about 1/3rd of agriculture workers in India as ‘disguised unemployed’ (iv) Late 1950s
Alternatives:
(a) C - (iii)
(b) D - (iv)
(c) A - (i)
(d) B - (ii)

26. General Agreement on Trade and Tariff (GATT) was established in 1948 with ______ member countries as global
trade partners.
(a) 22 (b) 23
(c) 20 (d) 21

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27. As per NSSO data, in the year 2011-12, the rate of unemployment among youth males in urban areas was:
(a) 30%
(b) 25%
(c) 19%
(d) 16%

Short Answer Questions (Q28 to Q29) 3´2=6

28. “The British intended to achieve their colonial interests through their policies of infrastructure development in
India.” Do you agree? Give their main objectives.

29. How does a socialist society answer the three questions, related to What, How and For Whom?


o
Give any three goals of the Five Year Plans in India.

Short Answer Questions (Q30 to Q32) 4 ´ 3 = 12

30. Answer the following questions on the basis of the following data:
(a) Comment upon the contribution to GDP sectorwise in India and China during 2014-2015.
(b) Which sector is a major player in both the countries?

Sectoral contribution to GDP(%) in 2014-15

Sector Contribution to GDP
India China
Agriculture 17 9
Industry 30 43
Services 53 48
Total 100 100

31. “Eliminating subsidies will violate the goal of equity.” Accept/Refute. Give reason in support of your answer.

32. Explain the ‘Operation Flood’.

o
“Horticulture sector contributes to nearly one-third of the value of agricultural output.” Substantiate.

Long Answer Questions (Q33 to Q34) 6 ´ 2 = 12

33. Read the following text carefully and answer the given questions on the basis of the same and common
understanding:
From political leaders to grassroot activists, just about everyone has an opinion on environmental issues. While
view points may differ, there is no denying that the environment affects everyone of us. Environmental issues are
defined as harmful effects to earth and its natural systems due to the actions of humans. Although climate change
can also occur from natural causes, human behaviour has led to an increase in greenhouse emissions. While
climate change is discussed frequently now, it has been occurring since the industrial revolution. Climate change

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affects everyone and the ramifications are visible

by the variation in temperatures and an increase
of intense natural disasters. It contributes to even
broader problems like loss of biodiversity in our
food systems. What’s more, the negative impacts
are likely to affect those who are already the most
vulnerable. An additional concern is pollution and
its influence on public health. Research shows that
black carbon is making dangerous bacteria harder
to kill and resistant to antibiotics. Moreover, black
carbon increases risks of heart attacks, strokes and
even lung cancer.
(a) “Opportunity cost of negative environment
impact are high.” Explain.
(b) “Environmental problems are new to this
century.” Justify the statement with valid
arguments.

34. Explain the various types of unemployment.

o
Discuss any four sources of human capital formation
in India.


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