AWAGARH PUBLIC SCHOOL

STD 12 Commerce Economics Total Marks : 61.5

unit test 1st

SECTION A – MACRO ECONOMICS

* Choose The Right Answer From The Given Options.[1 Marks Each] [7]
1. Gross Investment = Net Investment + ______.
a. Net Indirect Tax.
b. Reserve.
c. Depreciation.
d. None of these.

2. _______ refers to the flow of money across different sectors of the economy.
a. Real flow.
b. Circular flow.
c. Money flow.
d. Both (a) and (c).
3. Withdrawal of income from circular flow of income, e.g. savings, is known as:
a. Leakage.
b. Injection.
c. Credit.
d. Finance.
4. Other things remaining unchanged, when in a country the price of foreign
currency rises, national income is: (choose the correct alternative)
a. Likely to rise.
b. Likely to fall.
c. Likely to rise and fall both.
d. Not affected.

5. With a rise in real national income, welfare of the people:

a. Rises.
b. Falls.
c. Remains unchanged.
d. None of the above.

6. Which of the following affects national income?

a. Goods and Services tax.
b. Corporation tax.
c. Subsidies.
d. None of the above.

7. The difference between value of output and value added is ......

a. Depreciation.
b. Intermediate consumption.
c. Net Indirect Taxes.
d. NFIA.

* Given Section consists of questions of 3 marks each. [12]

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 8. Find out National Income.
S.No. Contents ₹ (in crore)
(i) Factor Income from Abroad 15
(ii) Private Final Consumption Expenditure 600
(iii) Consumption of Fixed Capital 50
(iv) Government Final Consumption Expenditure 200
(v) Net Current Transfer to Abroad (-) 5
(vi) Net Domestic Fixed Capital Formation 110
(vii) Net Factor Income to Abroad 10
(viii) Change in Stock (-) 10
(ix) Net Imports (-) 20
(x) Net Indirect Taxes 70

9. Distinguish between stocks and flows. Give an example of each.

10. Distinguish between GDPFC and NNPMP.
11. If domestic income is ₹ 1,000 crore and Net Factor Income from Abroad is ₹ (-10) crore,
how much will be National Income?

SECTION B – INDIAN ECONOMIC DEVELOPMENT

* Choose The Right Answer From The Given Options.[1 Marks Each] [9]
12. Britishers created a monopoly over India's foreign trade, from which of the following
ways?
a. Full control over foreign trade.
b. Discriminatory tariff rates.
c. Opening of Suez Canal.
d. All of the above Answers.
13. Railways enhanced commercialisation of Indian agriculture, however it leads of which of
the following consequences?
a. Affected the self-sufficiency of villages.
b. De-industrialisation of industries.
c. Decline in foreign trade.
d. All of the above.
14. The introduction of expensive mode of communication, i.e. telegraph serve the purpose
of:
a. Maintaining law and order.
b. Maintaining trade.
c. Collect taxes.
d. All of the above.
15. In which year, railways was introduced in India?
a. 1850
b. 1853
c. 1890
d. 1892
16. Which factor led to the breaking up of the stagnation of agriculture?
a. Land reforms.
b. Green Revolution.

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 c. Buffer stocks.
d. Land ceiling.
17. A good indicator of growth is steady increase in the:
a. Gross Domestic Product.
b. Net Domestic Product.
c. Population.
d. National Income.
18. Diversification of growth process can be achieved through the development of:
a. Agricultural sector.
b. Industrial sector.
c. Foreign trade.
d. Service sector.
19. What was the immediate crisis India faced in the beginning of the 1990s?
a. Inflation.
b. Debt trap.
c. Foreign exchange crisis.
d. All of the above.

20. The origin of the financial crisis can be traced from the inefficient management of the
Indian economy, which of the following reasons are responsible?
a. Government did not able to generate sufficient revenue.
b. Government expenditure began to exceed its revenue.
c. Government borrowed money for meeting consumption needs.
d. All of the above.

* Given Section consists of questions of 3 marks each. [9]

21. Explain any three positive contributions made by the British in India.
OR
Write any three positive contributions made by the British in India.
22. What were the main motives of British rulers behind the beginning of the railways in
India?

23. What is export surplus? How did it prove disadvantageous to India during British rule?

* Given Section consists of questions of 4 marks each. [28]

24. Why was there a need for reform of economic policy in 1990? Explain.
25. What was the need for economic reforms in 1991?

26. Explain the statement that green revolution enabled the government to procure
sufficient food grains to build its stocks that could be used during times of shortage.
27. What, according to you, were the objectives of IPR-1956?

28. What are the features of a capitalist economy?

29. Critically appraise the fiscal reforms initiated under NEP of 1991.
30. The objective of new economic policy was privatisation. Discuss.
OR
What measures were taken towards privatisation in 1991?

----- wish you all the best -----

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