SAMPLE QUESTION PAPER - 1

Economics (030)
Class XII (2024-25)

Time Allowed: 3 hours Maximum 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
1. Statement I: External Assistance, e.g. Government Aid, Inter-governmental, [1]
Multilateral and Bilateral Loans is a component of capital account of BOP.
Statement II: Current Account Surplus signifies that the nation is a lender to the rest
of the world.

a) Statement I is true and statement b) Both the statements are false.

II is false.

c) Both the statements are true. d) Statement II is true and

statement I is false.

2. Which one is the Bank of the Public? [1]

a) Commercial Bank b) Central Bank

c) Both commercial and central d) SBI

bank
3. With the increase in income, autonomous expenditure ________. [1]

a) will increase proportionately b) will remain unaffected

c) will decrease d) will increase

4. Generally, the value of currency of a country is expressed in terms of ________. [1]

a) Pound Sterling b) US Dollar

c) Euro d) Japanese Yen

5. If saving function of an economy is given as: S = -40 + 0.4(Y), then MPC is: [1]

a) 0.6 b) 1

c) 8 d) 0.4

6. Deficient demand leads to: [1]

a) low level of employment b) deflationary gap

c) excess capacity d) all of these

7. Complete the flow ΔI → ΔY → ΔC → ________. [1]

a) ΔD b) ΔC

c) ΔS d) ΔY

8. Food processor used by the households in their kitchen is an example of: [1]

a) consumption goods b) intermediate goods

c) Investment goods d) capital goods

9. Credit creation depends on amount of initial deposit and ________. [1]

a) margin requirement b) legal reserve ratio

c) all of these d) bank rate

10. In the diagram below, at exchange rate OP1, there is [1]

a) Equilibrium b) Either Excess demand and

Excess supply

c) Excess demand d) Excess supply

11. Discuss briefly the three components of operating surplus. [3]

12. What is meant by economic transactions? How can they be categorised? [3]

OR
Explain why there is a rise in demand for foreign exchange when its price falls.

13. State briefly the effect of excess demand on output, employment and price? [4]

14. Does an excess of AD over AS always imply a situation of inflationary gap? Explain. [4]

OR
In an economy, an increase in investment leads to doubling of the national income.
Calculate the Marginal Propensity to Consume (MPC) for the given economy.

15. Explain, using a numerical example, how an increase in reserve deposit ratio affects [4]
the credit creation power of the banking system.

16. Answer the following questions: [6]

(i) i. Calculate National Income from the following data. [3]

S.no. Contents (Rs. in Crores)
(i) Private Final Consumption Expenditure 900
 S.no. Contents (Rs. in Crores)
(ii) Net domestic fixed capital formation 180
(iii) Government Final Consumption Expenditure 400
(iv) Net Indirect Taxes 100
(v) Gross Domestic Capital Formation 250
(vi) Change in Stock 50
(vii) Net Factor Income from Abroad (-) 40
(viii) Consumption of Fixed Capital 20
(ix) Net Imports 30

ii. a. Define value of output. How is it different from value addition? [3]
b. Calculate the value of Mixed Income of Self-Employed from the
following data:
S.No Particulars Amount (₹ in crores)
(i) Compensation of Employees 17,300
(ii) Interest 1,200
(iii) Consumption of Fixed Capital 1,100
(iv) Mixed Income of Self-Employed ?
(v) Subsidies 750
(vi) Gross Domestic Product at Market Price 27,500
(vii) Indirect Taxes 2,100
(viii) Profits 1,800
(ix) Rent 2,000

(ii) OR
i. Calculate the Net National Product at Market Price from the given details. [3]
S.no. Contents (Rs. in Crores)
(i) Mixed income of self-employed 8,000
(ii) Depreciation 200
 S.no. Contents (Rs. in Crores)
(iii) Profit 1,000
(iv) Rent 600
(v) Interest 700
(vi) Compensation of employees 3,000
(vii) Net indirect taxes 500
(viii) Net factor income to abroad 60
(ix) Net exports (-) 50
(x) Net current transfers to abroad 20

ii. Calculate Intermediate consumption from the following data : [3]

(₹ Lakh)
(i) Value of output 200
(ii) Net value added at factor cost 80
(iii) Sales tax 15
(iv) Subsidy 5
(v) Depreciation 20

17. Answer the following questions: [6]

(i) From the following data, calculate Fiscal deficit and Primary deficit: [3]
S.No. Particulars Amount (in ₹ crore)
i. Capital receipts (excluding borrowings) 95
ii. Revenue expenditure 100
iii. Interest payments 10
iv. Revenue receipts 80
v. Capital expenditure 110

(ii) From the following data about a government budget, find out the following: [3]
i. Revenue deficit
 ii. Fiscal deficit
iii. Primary deficit
(Rs. Arab)
(i) Capital receipt net of borrowings 95
(ii) Revenue expenditure 100
(iii) Interest payments 10
(iv) Revenue receipts 80
(v) Capital expenditure 110

SECTION B – INDIAN ECONOMIC DEVELOPMENT

18. If a person is absent from her duty due to maternity leave, will she be considered a [1]
worker?

a) No b) Cannot say

c) Yes d) Not always.

19. Common success of India and Pakistan except [1]

a) Rise in GDP per capita b) Dismal fiscal management

c) Self-sufficiency in food d) Reduction in poverty

production

20. The major policy initiatives in agriculture sector were ________ and ________. These [1]
initiatives helped India to become self-sufficient in food grains production.

a) Equity; Growth b) All of these

c) Land reforms; Green revolution d) Modernisation; Self-reliance

21. Which scheme provides adequate and timely support from the banking system to the [1]
farmers for their cultivation needs in a flexible manner
 a) KBC b) KCC

c) KMM d) KMC

22. Assertion (A): The WTO agreements cover trade in services to facilitate international [1]
multilateral trades only through removal of tariff and non-tariff.
Reason (R): The WTO agreements cover trade in goods as well as services to
facilitate bilateral and multilateral international trade.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

23. The Government of India enacted the Right to Education as a fundamental right for [1]
all children in the age group of ________ years.

a) 5 - 13 b) 6 - 12

c) 6 - 14 d) 5 - 14

24. Mixed economic system is followed in ________. [1]

a) Pakistan b) India

c) China d) India as well as Pakistan

25. Environment and economy are ________ and need of each other. [1]

a) interdependent b) dependent

c) independent d) complimentary
26. Statement I: More than Half of India’s Foreign trade was restricted to Britain. [1]
Statement II: Britain maintained Monopoly control on India’s Import and Export.

a) Both the statements are true. b) Statement I is true, but statement

II is false.

c) Statement II is true, but d) Both the statements are false.

statement I is false

27. Write the correct sequence of alternatives given in Column II by matching them with [1]
respective terms in Column I:
Column I Column II
(i) Adoption of new technology to increase the production of goods
(a) Growth
and services.
(b) (ii) Avoiding imports of those goods which could be produced in
Modernisation India itself.
(iii) Every Indian should be able to meet his/her basic needs such as
(c) Self-
food, a decent house, education and health, and inequality in the
reliance
distribution of wealth should be reduced.
(iv) Increase in the country’s capacity to produce the output of goods
(d) Equity
and services within the country.

a) (a) - (ii), (b) - (iv), (c) - (i), (d) - b) (a) - (iii), (b) - (iv), (c) - (i), (d) -
(iii) (ii)

c) (a) - (iii), (b) - (i), (c) - (iv), (d) - d) (a) - (iv), (b) - (i), (c) - (ii), (d) -
(ii) (iii)

28. State any two advantages of sustainable development. [3]

OR
How population growth is the cause of depletion of natural resources?

29. Discuss the two main forms of wage employment. [3]

30. Explain briefly the common goals of five year plans in India. [4]
31. Explain the changing role of state in Indian economy since introduction of reforms. [4]

OR
i. The real motive behind infrastructural development in India was to strengthen the
British interests.
Do you agree with the given statement? Justify your answer with valid arguments.
ii. Navratna policy has facilitated the maintenance, promotion and disinvestment of Public
Sector Undertakings (PSUs). Justify the given statement with valid explanation.

32. Explain how health and expenditure on information are a source of human capital [4]
formation.

33. Answer the following questions: [6]

(i) i. Write a short note on ‘Operation Flood’. [3]

ii. Why is it being considered necessary to replace the private moneylenders by [3]
institutional sources of credit?

(ii) OR
i. The debate over farm subsidies in India is enraged at different platforms. [3]
Discuss any two arguments in against farm subsidies.

ii. Discuss the problems of fishing community and give some suggestions. [3]

34. Read the following text carefully and answer the questions given below: [6]
SINO-PAK FRIENDSHIP CORRIDOR
The China-Pakistan Economic Corridor (CPEC) relationship between the two nations.
But it has also sparked criticism for burdening Pakistan with mountains of debt and
allowing China to use its debt strategic assets of Pakistan.
The foundations of CPEC, part of China’s Belt and Road Initiative, were laid in May
2013. At the time, Pakistan was reeling under weak economic growth. China
committed to play an integral role in supporting Pakistan’s economy.
Pakistan and China have a strategic relationship that goes back decades. Pakistan
turned to China at a time when it needed a rapid increase in external financing to meet
critical investments in hard infrastructure, particularly power plants and highways.
CPEC’s early harvest projects met this need, leading to a dramatic increase in
Pakistan’s power generation capacity, bringing an end to supply-side constraints that
had made rolling blackouts a regular occurrence across the country.
Pakistan leaned into CPEC, leveraging Chinese financing and technical assistance in
an attempt to end power shortages that had paralyzed its country’s economy. Years
later, China’s influence in Pakistan has increased at an unimaginable pace.
China As Pakistan’s Largest Bilateral Creditor: China’s ability to exert influence
on Pakistan’s economy has grown substantially in recent years, mainly due to the fact
that Beijing is now Islamabad’s largest creditor. According to documents released by
Pakistan’s finance ministry, Pakistan’s total public and publicly guaranteed external
debt stood at USD 44.35 billion in June 2013, just 9.3 percent of which was owed to
China. By April 2021, this external debt had ballooned to USD 90.12 billion, with
Pakistan owing 27.4 percent —USD 24.7 billion — of its total external debt to China,
according to the International Monetary Fund (IMF).
Additionally, China provided financial and technical expertise to help Pakistan build
its road infrastructure, expanding north-south connectivity to improve the efficiency of
moving goods from Karachi all the way to Gilgit-Baltistan (POK). These investments
were critical in better integrating the country’s ports, especially Karachi, with urban
centers in Punjab and KhyberPakhtunkhwa provinces.
Despite power asymmetries between China and Pakistan, the latter still has
tremendous agency in determining its own policies, even if such policies come at the
expense of the longterm socioeconomic welfare of Pakistani citizens.
Questions:
i. Outline and discuss any two economic advantages of China Pakistan Economic
Corridor (CPEC) accruing to the economy of Pakistan.
ii. Analyse the implication of bilateral ‘debt-trap’ situation of Pakistan vis-à-vis the
Chinese Economy.