D.A.V. PUBLIC SR.

SEC, SCHOOL, PARWANOO

Pre-BoardExamination-Economics (030)
Class XII 2024-25
Time Allowed:3Hours 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 of 1 mark each.
3. This paper contains 4Short Answer Questions of 3marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Ouestions of4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Ouestions of 6 marks each to be answered in 100 to 150 words.

SECTION A - MACRO ECONOMICS MARKS

Q.NO.

1
Read the following statements carefully:
Statement 1:The level of consumption has a direct impact on the amount of savings the
households can accumulate over time. Statement 2: Higher consumption often lead to
lower savings, while lower consumption tend to facilitate higher levels of savings. In
light of the given statements, choose the correct alternative from the following:
a) Statement 1 is true and Statement 2 is false.
b) Statement 1 is false and Statement 2 is true.
c) Both Statements 1 and 2 are true.
d) Both Statements 1 and 2 are false.

2 The scenario which would lead to an increase in GDP, but might not necessarily improve 1
overall welfare?
a) Reduction in income inequality
b) Rapid growth of the financial sector
c) Expansion of environmentally harmful industries
d) Increased government investment in education and healthcare

3 If the government implements a tax cut and people use most of their extra money to 1
increase their consumption, this suggest about the MPC that:
a) It is not applicable in this situation
b) It is low, indicating people prefer saving over spending
c) Itis negative, indicating people are decreasing their consumption
d) It is high, indicating people are responsive to changes in income
4 Apositive balance in the Capital Account of the Balance of Payments ofa country 1
indicates that:
a) trade balance is positive
b) currency is depreciating
c) it is experiencinga budget surplus
d) it is receiving mnore foreign investments than it is making abroad
1
5 In the web of financial interactions, when individuals harmoniously enter into
agreements to honor the repayment of aloan at adesignated point in the future, they are
engaging in which pivotal function of money:
a) a safe place to keep the wealth
b) a tool that helps to compare the value of diferent things
c)a bridge between people who want to buy things and people who want to sell things
d) a steady foundation that helps to agree on how to setle debts or loans at a later time
 If
requirement is 10%.
deposit of 80,000 andthe:reserve
insteadofthe
required
6 Punjab National Bank receives a to 20% of the deposit
the bank decides to hold reserves equal the bank hold?
reserve does
amount, how much excess c) 12,000
d) 16,000
a) 4,000 b) 8,000 1
dynamics of aggregate
of the price level and the
concept
The interaction between the as:
demand in an economy is interconnected demand increases
aggregate
a)the price level increases, demand decreases
b) the price level increases, aggregate impact on aggregate demand
c) changes in the price level have no level and aggregate demand is unpredictable
d) the relationship between the price
borrowing on the foreign exchange supply within
The influence exerted by international minimally affects the supply of foreign
exchange
an economy is indicated when it: a)
b)tends to diminish the supply of foreign exchange
c) intends to increase the supply of foreign exchange
alterations in the supply of domestic currency
d) confined solely to 1
Crepresents
Function of C=750+0.5Y, where
Given an economy with a Consumption Income and an Investment Expenditure
Consumption Expenditure, Y represents National
Expenditure at the equilibrium level?
of 2,300, what would be the Consumption d) 3,800
a) 1,400 b) 6,100 c) 3,050
international
Unilateral Transfers' in the context of
10 Which of the following best defines
transactions?
for a specified tenure and interest rate.
a) Funds transferred internationally as loansservices between two countries.
and
b) Trade transactions involving goods
without expecting any return in the future.
c) Payments made by one party
the stock market of another country.
d) Investments made by a country in
3
and Accommodating Items
Elucidate the distinction between Autonomous Items
11 examples to demonstrate country's
concerning a nation's Balance of Payments. Give
international economic interactions.

3
price using Expenditure method:
12 (A)Calculate Gross Domestic Product at market Amount (in crore)
S.No. Items
9.800
() Private final consumption expenditure
final consunption expenditure 12,000
(i) Government : 275
(ii)Changein stock
fixed capital formation 875
(iv) Gross domestic
saur

fixed capital 600

(v) Consumption of (-)90
(vi) Net exports abroad 790
(vii) Net factor income from
OR 3
the context of calculating National
(B) Explain the concept of Double Counting in
avoid it.
Income and provide a practical way to
4
IfNational Income is 250 crore and Savings is 80 crore, find out Average Propensity to
13 Savings to 115 crore, what will
Consume, When National Income rises to 390 crore and Save?
Marginal Propensity to
be the Average Propensity to Consume and the
14 (A) Describe the economic scenario when ex-post Aggregate Demand surpasses ex-post
Aggregate Supply and its potential consequences on price levels, production and
enployment. OR
(B) Demonstrate your understanding of how the Reserve Bank of India can apply
economy? Identify 4
monetary policy tools to tackle a scenario of Deficient Demand in the can employ to
and discuss four specific measures that the Reserve Bank of India
effectively correct the situation,
these 4
15 Explore four main functions of the Reserve Bank of India and how each of
functions contributes to the overallgrowth of the Indian economy.

Fiscal Deficit and Primary 3

16 (A). Utilizing the provided data, compute Revenue Deficit,
Deficit:
S.No. Given Data (incrore)
A Revenueexpenditure 80,350
Capital expenditure 92,000
Interest payments 18,000
D Revenue receipts 63,875
B Borrowings 59,640 3
F Capital receipts 74,000
(B)Outline a hypothetical scenario where a government is considering implementing a
new tax policy. In this scenario, explain how the introduction of a Progressive Tax would
affect individuals with low, middle and high incomes. 3
OR
(C) Explain the Government's Budget and its various sources of revenue. Present three
actual instances of non-tax revenue earnings that a government couldaccumulate during
its fiscal year. 3
(D), Highlight three main objectives that gúide the government to frame their policies
and decisions, Explain these three objectives providing examples.
17 (a). In the estimation of a country's National Income, are the following items included? 3

Provide reasons for each.

(i) Rent-free house to an employee by an employer
(ii) Purchases by foreign tourists.
(ii) Purchase of a truck to carry goods by a production unit (b). Elaborate on the concepts
of Nominal Gross National Product and Real Gross National Product with examples to
illustrate the significance of these measures in economic decision-making.

SECTION B- INDIAN ECONOMIC DEVELOPMENT

18 The overarching objective of equitable distribution goals in planning is to: 1

a)ensure a fair and just society for all citizens
b)foster competition by reducing government intervention in markets c) focus on short
term gains rather than long-term societal benefits d) enhance economic growth through
targeted investments in specific sectors
 1
which was implementedfrom1979 to
19 The main objective of China's One Child Policy,
2016 was:
families with multiple children
a) to provide financial incentives for
the number of male children
b) to promote gender equality by limiting overpopulation concerns
c) to control the population growth and address
children and increase the population
d) to encourage farmilies to have more
1
20 Due to increasing expenses related to energy and ecological considerations, a country
renewable energy technologies
chose to make significant investments in domestic
instead of bringing in traditional energy sources from abroad. of substituting imports?
What favorable outcomes can be anticipated from this strategy
I: lower energy costs for consumers due to subsidised imports
II: promotion of domestic green energy sector through targeted investments
II: enhanced self-sufficiency in energy production and greater sustainability
implementation
IV: increased dependence on foreign technology for renewable energy
Alternatives:
a) IandII b) IIand III c) III and IV d)IV and I

predators
21 A farmer Chandu practices organic farming and uses crop rotation and natural
to control pests.
pesticides
Is there an advantage of this approach provided as compared to conventional
use?
a) faster and predictable pest eradication
b) lower labor costs for pest mamagement
c) increased risk of crop failure and reduced yields
d) reduced harm to beneficial insects and polinators
the correct 1
22 Read the following statements: Assertion (A) and Reason (R). Choose
alternative from those given below.
policies
Assertion (A): The industrial sector reforms implemented under liberalization sector.
manufacturing
in a country led to an increase in Foreign Direct Investment in the regulate industries,
Reason (R): Liberalization policies aimed to toughen trade barriers,
and provide a conducive environment for Indigenous investors, making the
manufacturing sector more attractive for FDI.
Alternatives:
a) The Assertion (A) is true, but the Reason (R) is false.
b) The Assertion (A) is false, but the Reason (R) is true.
coITect
c) Both the Assertion (A) and Reason (R) are true, but the Reason (R) is not the
explanation of the assertion,
d) Both the Assertion (A) and Reason (R) are true, and the Reason (R) is the cofreCt
explanation of the assertion.
1
23 The multifaceted process of demographic transition within the context of India pertans
to:
a) asudden decline in the population growth rate due to migration
b)a change in the population density across different states in India
c) asignificant increase in the birth rate and death rate simultaneously
d) a shift from high birth and death rates to low birth and death rates over time
1
sustainable
24 Select the option that presents a common challenge associated with
aquaculture practices:
a) guaranteed financial gains
b) neutral impact on ecosystems
c)struggle to maintain ecological equilibrium
d) independent of technological advancements
 associated with
density, the challenge which is often
1
In urban areas with high population
25 conditions?
housing and living leading to limited rental options
a) high home ownership rates,
essential services due to congested
living
b)difficulty in accessing recreational areas, affecting quality of life
c) limited open spaces and overcrowding, leading to slum settlements
d) inadequate housing and 1

Read the following statements carefully: challenge in the Indian economy in

a significant
Statement 1: Jobless growth has been
26
been
recent years.
witnessing economic growth, the Indian economy has
Statement 2: Despite
suficient employment opportunities to absorb the growing
struggling to create
following:
workforce.
statements, choose the coYrect alternative from the
In light of the given and Statement 2 is false.
a) Statement l is true Statement 2 is true.
b) Statement 1 is false and
are true.
c) Both Statements 1and 2
are false
d) Both Statements I and 2 1
of
given in Column Iand Column II, choose the correct pair
From the set of statements
27
statements: Column II
Column I
I China model of growth Plan
A. Medium Term Development
II Reforms in India
B. NITI Aayog
III Pakistan's Five-Year Plans
C. Command Economy
IV Planning commission is replaced
D. Economic Reform 1991
Alternatives:
(a) A-II, B-I,C-III, D-IV
(b)A-III, B-IV, C-I, D-II
(c) A-I, B-II,C-IV, D-III
(d) A-IV, B-II C-II, D-I
of 3
28 key features of the Indian economy on the eve
(A) Identify and briefly explain threepredominantly
independence that contributed to its stagnant structure.
OR
foreign trade on the eve of independence.
(B)Describe three key features of India's patterns with other nations. 3
Ilustrate with examples the country's trading
3
29 of human capital and provide instances of
Outline three sources of the developmentcontribute positively to a nation's economic
investments in human capital that can
expansion and overall well-being.
4
30
government
Enumerate four primary policy endeavors undertaken by the Chineseadvancement
independence, aimed at attaining economic and
Subsequent to attaining
industrialization, Illustrate the consequences of these approaches on its economic
progress and evolution into a significant global economic force.
4
31 (A)Give a thorough analysis of four primary obstacles encountered by rural banking
within a
establishments when fostering financial inclusion and driving economic growth
developing nation. OR
implement to
(B)State four measures that a government in a developing country can system.
enhance the efficiency and effectiveness of the agricultural marketing 4
32 4
ldentify the situation depicted in the given image. Categorize the three main causes of it
in the country.

Job Center

Source: LinkedIn, from an article by Emanuele Musa

33 (A). "Considering'Agricultural Subsidy as a Vice,' analyze three prominent negative 3
implications stemming from agricultural subsidies associated with providing subsidies to
farmers.
(B)Highlighting three significant adverse impacts, conduct a
evaluate the potential negative repercussions of implementingcomprehensive analysisofto
the economic strategy 3
Import Substitution in developing nations. OR
(C) In order to understand the complexities of the industrial sector in India on the
eve of
independence, elaborate on the prevailing conditions that contributed to "Systematic de 3
industrialization" and technological backwardness.
(D)Analyze the complex challenges posed by India's foreign trade
independence. Investigate the factors that led to the trade imbalancessituation
and
on theeve of
dependence on
imports during this period. 3

34 Read the following passage on the causes of the

follow: environmental crisis and answer the questions that
The world is facing an unprecedented environmental crisis
characterized by various
challenges. Several factors have contributed to this alarming situation, threatening theinterconnected
delicate
balance of ecosystems and the well-being of both humans and wildlife. (One
the environmental crisis is the rapid growth of human of the primary causes of
population. The intreasing demand for
resources, food and energy has led to extensive deforestation, habitat destruction and
gverconsumption of natural resources.
Industrialization and modernization have
erísis. The reliance on fossil fuels and theplayed
a significant role in exacerbating the
emnission of environmental
greenhouse gases have resulted in global
warming and climate change, leading to extreme weather
natural cycles, The unchecked discharge of pollutants and events,
waste
rising sea levels and disruptions in
from
contaminated air, water and soil, endangering human health and biodiversity. industries has further
contributing to the environmental crisis is the expansion of agricultureand Another critical factor
conversion of forests and natural habitats into agricultural lands and urban areas urbanization.(The
has led to the loss of
biodiversity and fragmentation of ecosystems. This has disrupted the natural habitats of nunerous
species, leading to the extinction of many plants and animal species
as irresponsible waste management and improper Moreover, human activities such
disposal of plastics
accumulation of plastic waste in oceans and landfls, causing harm to marine have resulted in the
the environment. The excessive use of life and contaminating
chemical fertilizers
soildegradation, water pollution and losS-of biodiversity. The and pesticides in agriculture has also led to
with various interconnected causes. The rapid environmental crisis is a complex issue
growth of human population,
urbanization, and irresponsible waste management practices are some of the industrialization,
this crisis. Addressing these causes requires a major contributors to
collective effort from governments, industries
individuals to adopt sustainable practices and promote and
Source from: National Institutes of Health, Mongabay, environmental conservation.
Climate Change UNFCCC, Intergovernmental Panel on
On the basis of the given text and
(i). Elucidate the primary causes ofcommon
the
understanding, answer the following question:
(ii), Discuss the connection between environmental crisis described in the passage. 2
industrialization and
(i),. Explain the impact of agriculture and urbanization on the the ongoing environmental crisis. 2
environment. 2