Class XII

ECONOMICS (030) CLASS XII

Set B

TIME: 3 HOURS M.M. – 80

GENERAL INSTRUCTIONS:

1. This question paper contains two sections:

4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 words.

5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150
words.

Section A Macroeconomics

1.Which of the following is stock variable?

A) Income

B) Capital Formation

C) Supply of Money in a country

D) Leakage of water from overhead tank

2. The impact of externality is :

A) Positive

B) negative

C) either positive or negative

D) Neither positive nor negative

3. Old age pension is _________.

B) factor payment

C) NFYA

D) none of these

4. Which of the following is not a transfer payment?

A) Interest on national debt

B) Retirement pension

C) Old age pension

D) Donations

5. If primary deficit is Rs2000 and interest payment is Rs. 900 , then fiscal deficit is :

A) Rs. 2900

B) Rs. 4000

C) Rs. 4100

D) Rs. 4200

6. Which of the following is not an instrument of credit control?

A) CRR

B) SLR

C) Bank Rate

D) Managed Floating

7. Income to a person is a :

A) flow variable

B) stock variable

C) real flow

D) none of these

8. Which of the following items relate to BoP on capital account?

B) loans

C) NRI remittances

D) All of these

9. Cause of BoP imbalance relates to :

A) autonomous items

B) accommodating items

C) both A) and B)

D) None of these

10. Choose the correct answer out of the following choices.

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of

Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of

Assertion (A)

(c) Assertion (A) is true but Reason (R) is false

(d) Assertion (A) is false but Reason (R) is true

31. Assertion (A): Machine purchased is always a final good.

Reason (R): Final goods directly satisfy the needs of consumers or investment on fixed assets. :

11‘‘Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a country.’’
Defend or refute the given statement with valid reason. (3)

12.Calculate Gross fixed Capital Formation from the following data :(3)

i)

ITEMS Rs. In CRORES

1. Private final Consumption expenditue 2000

2. Government final consumption expenditure 250

3. Net Exports 80
 4. Net Factor Income From Abroad -50

5. Gross Domestic Product at Market Price 5000

6. Opening stock 500

7. Closing Stock 600

Or

Distinguish between ‘Value of Output’ and ‘Value Added’.

13. Government has raised it's expenditure on free services like education and health to the poor.
Explain the economic value it reflects. (4)

14. Find borrowing by the government if payment of interest is estimated to be of 15000 crore which is
25% of primary deficit. (4)

Or

Do you agree with the view that the excess of money supply hinders the process of economic growth?
Give reasons.

15. Explain how 'margin requirements' are helpful in controlling credit creation. (4)

16. Explain the income method of estimating national income?

Or

Explain the precautions required to be taken in estimating national income by expenditure method.

17. A) Should the following be treated as normal resident of India? Give reasons (3)

i) Foreigner working in Indian embassy in Taiwan

ii) Indian working in Asian Development Bank in Philippines.

iii) Indian student in USA who has been living there for five years.

B) Do you think higher level of real GDP always leads to higher availability of goods per person in the
domestic economy? If not, what lesson do you draw from such a situation?
 SECTION B

INDIAN ECONOMIC DEVELOPMENT

18. Farming that focuses on basic needs of the family is called :

A) stagnant farming

B) subsistence farming

C) commercial farming

D) none of these

19. Gender -bias in the society on the eve of independence was indicated by :

A) mortality rate

B) literacy rate

C) death rate

D) life expectancy

20. Railways were introduced in India in the year :

A) 1850

B) 1853

C) 1854

D) 1855

21. Use of chemical fertilizers has led to :

A) rise in fallowing

B) fall in fallowing

C) rise in gross area under cultivation

D) both (b) and (c)

22. In the questions given below, there are two Statements marked as Assertion (A) and Reason (R).
Read the Statements and Choose the correct option: Options are:

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

(c) (A) is correct but (R) is wrong.

(d) (A) is wrong but (R) is correct.

Assertion: Indian Industrial sector was marked with inefficiencies during the period 1950-1990

Reason: Indian industrial sector was characterised by excessive regulation during 1950 to 1990.

23. Economic reforms in India were initiated in the year :

A) 1990

B) 1991

C) 1992

D) 1993

24. Which of the following is not an element of fiscal reforms?

A) taxation reforms

B) Public expenditure reforms

C) Change in interest rates

D) Control on public debt

25. Which of the following is the problem of human capital formation in India?

A) brain drain

B) low academic standards

C) Rising population

D) all of these

26.Human capital and Human development are :

A) opposite concepts

B) different concepts
C) both mean the same

D) related concepts but certainly not identical

27. Which of the following is the important way of adding to the stock of human capital?

A) Expenditure on education

B) Expenditure on health

C) On the job training

D) all of these

28. Under score some of the most crucial economic challenges at the time of independence.

Or

Were there any positive contributions made by the British in India? Discuss (3)

29. Answer the question on the basis of the data given below:

Sector 1950-1951(in percentage) 1990-91(in percentage)

Agriculture 72.1 66.8

Industry 10.7 12.7

Services 17.2 20.5

A) Comment upon the occupational distribution of Indian Economy. (2)

B) Which sector has engaged the bulk of working population 1990-91? (1)

30. “Ravya was initially working as an office clerk in a firm. In the pursuit to attain position and income,
she attended a few on contributed positively to her skills and expertise.” Explain the impact of Ravya’s
decision on human capital formation