CBSE Economics Class 12 Sample Paper 13 Page 1

Sample Paper 13
ECONOMICS (030)
Class XII Session 2022-23
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, following data is presented, for an imaginary economy:

Autonomous consumption = `100
Marginal propensity to consume = 0.70
National Income = `1000
Identify, which of the following statements is correct for consumption expenditure.
(a) The value of consumption expenditure would be `600.
(b) The value of consumption expenditure would be `500.
(c) The value of consumption expenditure would be `800.
(d) The value of consumption expenditure would be `700.

2. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): At the left of Break-Even point, APC is greater than one.
Reason (R): At the left of Break-Even point, APS is positive.
Alternatives:
(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. Aggregate demand includes_______.

(a) Investment expenditure (b) Consumption expenditure
(c) Neither (a) nor (b) (d) Both (a) and (b)


o
A period of falling aggregate demand is attributed to a fall in:
(a) Investment expenditure and Net exports
(b) Household consumption expenditure and Government consumption expenditure
(c) Neither (a) nor (b)
(d) Both (a) and (b)

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4. A company located in India receives a loan from a company located abroad. This transaction will be recorded on
_____ side of_______.
(a) debit; current account (b) credit; current account
(c) debit; capital account (d) credit; capital account


o
Read the following figure carefully and choose the correct pair from the alternatives given below:

Alternatives:
(a) A : Net income from abroad; B : Foreign direct investment; C : Net current transfers
(b) A : Net current transfers; B : Net income from abroad; C : Foreign direct investment
(c) A : Foreign direct investment; B : Net current transfers; C : Net income from abroad
(d) A : Net current transfers; B : Foreign direct investment; C : Net income from abroad

5. Read the following statements carefully:

Statement 1: Depreciation of domestic currency encourages exports.
Statement 2: Appreciation of domestic currency discourages imports.
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. Read the following statements carefully:

Statement 1: Bank Rate is the rate at which the central bank lends funds to the commercial banks.
Statement 2: Cash Reserve Ratio (CRR) is the proportion of deposits that commerical banks have to keep as cash
reserves with the central bank.
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

7. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Export of sugar is recorded in the capital account.
Reason (R): Atmanirbhar Bharat’ will decrease inflow of foreign exchange.
Alternatives:
(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

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CBSE Economics Class 12 Sample Paper 13 Page 3

8. Read the following statements carefully:

Statement 1: Decline in government consumption is responsible for the decline in the Indian economy. Statement 2:
The government should decrease its expenditure to correct a situation of deficient demand. 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

9. What role does the central bank play when a commercial bank XYZ fails to meet obligation of its depositors?
(a) Issuer of currency (b) Lender of last resort
(c) Banker to the government (d) None of these

10. Savings is a______concept, whereas capital is a_______concept.

(a) stock; stock (b) stock; flow
(c) flow; flow (d) flow; stock


o
If, in an economy, the value of sales is `180 lakhs and change in stock is `15 lakh, identify the value of output.
(a) `180 lakh (b) `165 lakh
(c) `190 lakh (d) `195 lakh

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

11. “India is taking huge leaps in the index of Ease of Doing Business; as a result many MNCs are shifting their
production base to India.” In the light of the given statement, comment upon the flow of foreign exchange and its
likely impact on Indian economy.


o
‘Devaluation and Depreciation of the currency are one and the same thing.’ Defend or refute the above statement
with valid arguments.

12. “India’s GDP is expected to expand 7.5% in 2019-20: World Bank” —The Economic Times
Does the given statement mean that welfare of people of India increase at the same rate? Comment with reason.

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

13. (a) ‘We say that commercial banks create money, while we also say that the central bank has the sole right to issue
currency.’ Justify the given statement.
(b) What is the likely impact of money creation by the commercial banks on national income?

14. In an economy, Savings function is given by S = (-) 50 + 0.2 Y and Y is `2,000 crores. Consumption expenditure
for the economy would be `1,650 crores and the autonomous investment is `50 crores and the Marginal Propensity
to Consume is 0.8. True and False? Justify your answer with proper calculations.


o
Explain the meaning of:
(a) Aggregate supply
(b) Under-employment equilibrium

15. “Indian economy saw its worst contraction in decades. It is in a deep vicious cycle where demand is contracting
heavily.” The Hindu; August 31st, 2020
State and discuss any two monetary measures that may be taken by the government of India to correct the situation
indicated in the above news report.

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

16. (a) ‘All products do not contribute equally to economic welfare.’ Defend or refute the given statement with valid
reasons.
(b) ‘Commission received from sale of second hand goods’ should be included/not included in the estimation of
national income. State with valid reason.


o
(a) The value of Nominal GNP of an economy was `2,500 crores in a particular year. The value of GNP of that
country during the same year evaluated at the prices of base year was `3,000 crores. Calculate the GNP deflator
of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
(b) Giving reason, state how will the following be treated in the estimation of National Income:
(i) Payment of interest by an individual to a bank on a loan to buy a car
(ii) Expenditure by government on providing free services

17. (a) On the basis of given chart, interpret the trend of fiscal deficit as a percent of budget estimates.

(b) Discuss briefly how can the government budget help in reducing inequalities of income in the economy.

Section B -Indian Economic Development

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

18. Read the following statements carefully:

Statement 1: China joined World Trade ganisation (WTO) in the year 2005.
Statement 2: Pakistan shifted its policy orientation in late 1970s and 1980s.
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

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CBSE Economics Class 12 Sample Paper 13 Page 5

19. Density of population is lowest in______.

(a) Pakistan
(b) China
(c) India
(d) Both (b) and (c)


o
In China, commune system is related to ______ sector.
(a) informal
(b) services
(c) industry
(d) agriculture

20. The major share of total education expenditure is taken by______.

(a) Higher education
(b) Technical education
(c) Elementary education
(d) Secondary education

21. Read the following statements carefully:

Statement 1: China introduced reforms originally in 1978 and then subsequently in a phased manner. Statement 2:
The Great Leap Forward (GLF) campaign took place in 1958.
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

22. Which of the following statement(s) is/are not true about the foreign trade in context of Indian economy during the
British rule?
(i) India became exporter of primary products and an importer of finished consumer goods and capital goods from
Britain.
(ii) India traded with many countries of the world despite discriminatory tariff policy pursued by the British
Government.
(iii) India generated huge export surplus.
(iv) Britain had a monopoly control over India’s foreign trade.
(a) (i) and (iv) (b) Only (ii)
(c) (ii) and (iii) (d) (i) and (iii)

23. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Land ceiling was a land reform to promote equity in the agricultural sector.
Reason (R): Land ceiling was introduced to reduce the concentration of land ownership in the hands of a few.
Alternatives:
(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


o

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Page 6 Sample Paper 13 CBSE Economics Class 12

Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The Green Revolution enabled the government to procure sufficient amount of food grains to build
a stock.
Reason (R): Food availability was to be ensured in times of food shortage.
Alternatives:
(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. In India, 14 big scheduled commercial banks were nationalised in:

(a) 1949
(b) 1969
(c) 2000
(d) 1955


o
The two major sources of human capital in a country are:
(a) Investment in Education and Migration
(b) Investment in Education and Health
(c) Investment in Education and Information
(d) Investment in Education and On-the-job Training

25. ______service remained inadequate throughout the colonial regime.

(a) Ports (b) Railways
(c) Postal (d) Law and Order

26. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): From 2014, Pradhan Mantri Jan Dhan Yojana is available to people in India to open a bank account.
Reason (R): To facilitate the transfer of all the benefits of government schemes and subsidies to the accountholders
directly.
Alternatives:
(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

27. From the set of events/systems given in Column I and corresponding relevant fact given in Column II, about China,
choose the correct pair of statement:
Column I Column II
A. Commune system (i) 1966-76
B. Special Economic Zones (ii) to attract foreign investors
C. One-child norm (iii) cultivating land collectively
D. Great Proletarian Cultural Revolution (iv) major reason for low population growth
Alternatives:
(a) C - (iii) (b) D - (iv)
(c) A - (i) (d) B - (ii)

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CBSE Economics Class 12 Sample Paper 13 Page 7

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

28. Interpret the given picture on account of current environmental challenges.

29. “Subsidies provide an incentive for wasteful use of resources.” Defend the statement with valid arguments.


o
“India failed to develop a strong export sector.” Defend the statement with valid reasons.

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

30. “It is necessary to generate more employment in the formal sector.” Do you agree with the above statement? Justify.

31. State, giving valid reasons, whether the following statements are true or false:
(a) Casualisation of workforce refers to a situation when the percentage of casually hired workers in the total
workforce tends to rise over time.
(b) Global warming is caused by man-made factors.


o
Argue in favour of the need for different forms of government intervention in education sector.

32. Compare and analyse the given data of India and China with valid arguments.
Country People below the poverty line (%) Infant Mortality Rate (per 1000 live births)
India 37 38
China 32 9

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

33. (a) “The colonial era was responsible for the decline of traditional handicraft industries.” Discuss the rationale of
the given statement with valid reasons.
(b) “The Green Revolution enabled the government to procure sufficient food grains to build its stocks that could
be used during the times of shortage.” Establish the rationale of the given statement with valid reasons.


o
(a) Analyse the trend in the growth of GDP in the major sectors post 1991 on the basis of the data given below.
(b) Which sector has witnessed growth higher than the overall GDP growth in 2014-15?

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Page 8 Sample Paper 13 CBSE Economics Class 12

Growth of GDP and major sectors (in %)

Sectors 1980-91 2007-12 2013-14 2014-15
Agriculture 3.6 3.2 4.2 -0.2
Industry 7.1 7.4 5.0 7.0
Services 6.7 10.0 7.8 9.8
Total 5.6 8.2 6.6 7.4
Source: Economic Survey for various years

34. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
Human development is a process of enlarging the range of people’s choices, increasing their opportunities for
education, healthcare, income and empowerment and covering the full range of human choices from a sound
physical environment to economic, social and political freedom.
Thus, enlarging the range of people’s choices is the most significant aspect of human development. People’s choices
may involve a host of other issues, but, living a long and healthy life, to be educated and have access to resources
needed for a decent standard of living including political freedom, guaranteed human rights and personal self-
respect, etc. are considered some of the non-negotiable aspects of the human development.
Concerted efforts were made to look at development critically at various times in the past. But, most systematic
effort towards this was the publication of the First Human Development Report by United Nations Development
Programme (UNDP) in 1990. Since then, this organisation has been bringing out World Human Development Report
every year. This report does not only define human development, make amendments and changes its indicators but
also ranks all the countries of the world based on the calculated scores. According to the Human Development Report
1993, “progressive democratisation and increasing empowerment of people are seen as the minimum conditions for
human development”. Moreover, it also mentions that “development must be woven around people, not the people
around development” as was the case previously.
(a) The concept of human development is different from that of human capital. How?
(b) What are the important aspects of human development?

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