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ECONOMICS QP (1)

The document outlines the structure and guidelines for the Pre-Board Exam 2024-25 for Class 12 Economics under Kendriya Vidyalaya Sangathan, Ernakulam Region. It includes instructions on answering questions of varying lengths and marks, covering topics in Macro Economics and Indian Economic Development. The exam consists of multiple-choice questions, short answers, and long answer questions related to economic concepts and data analysis.

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0% found this document useful (0 votes)
7 views9 pages

ECONOMICS QP (1)

The document outlines the structure and guidelines for the Pre-Board Exam 2024-25 for Class 12 Economics under Kendriya Vidyalaya Sangathan, Ernakulam Region. It includes instructions on answering questions of varying lengths and marks, covering topics in Macro Economics and Indian Economic Development. The exam consists of multiple-choice questions, short answers, and long answer questions related to economic concepts and data analysis.

Uploaded by

aadityasaini1712
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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12PB24ECO03

KENDRIYA VIDYALAYA SANGATHAN, ERNAKULAM REGION


PRE-BOARD EXAM 2024-25
ECONOMICS
CLASS: 12
Time allowed: 3 hours Maximum Marks: 80
General instructions:
i. All the questions in both the sections are compulsory. Marks for questions are indicated
against each question.
ii. Question number 1 - 10 and 18 - 27 are very short-answer questions carrying 1 mark each.
They are required to be answered in one word or one sentence each.
iii. Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each.
Answers to them should not normally exceed 60-80 words each.
iv. Question number 13 - 15 and 30 – 32 are 4 marks questions and are to be answered in 80-
100 words each.
v. Question number 16 - 17 and 33 - 34 are long answer questions carrying 6 marks each.
Answers to them should not normally exceed 100-150 words each.
vi. Answer should be brief and to the point and the above word limit be adhered to as far as
possible.

SECTION –A -MACRO ECONOMICS

1 Which of the following is an example of non-debt creating capital receipt? 1


a. Borrowing from RBI
b. Recovery of loans
c. Borrowing from abroad
d. Proceeds from the sale of government securities.

2 Read the following statements – Assertion (A) and Reason (R). Choose the correct 1
alternative given below:
Assertion (A): Before break-even point, APC is greater than 1.
Reason (R): At initial level, consumption is greater than income.
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, but 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.

3 Find the Fiscal Deficit of the government if payment of interest is estimated to be of 1


Rs. 15,000/- crore which is 25% of primary deficit.
a. Rs. 60,000/- b. Rs. 45,000/-
c. Rs. 75,000/- d. 15,000/-
4 There has been an increase in the export of petroleum produced by India to other 1
countries. This will results in
a. BoP Surplus b) BoP deficit c) BoT Surplus d) BoT deficit

5 Which of the following measures is typically used to control excess demand in an


economy?
(i) Decreasing taxes to stimulate consumer spending.
(ii) Increasing government spending on public project
(iii) Tightening monetary policy by raising interest rates
(iv) Implementing expansionary fiscal policy to boost aggregate demand.
a. Only (iii) b. (ii) and (iii)
c. Only (iv) d. (i) and (iv)

6 Identify the correct sequence of alternative given in Column II by matchichng them 1


with respective items in Column 1:
Column 1 Column II
A. Net Export (i) A component of corporate profit
B. Value of Non-factor inputs (ii) Unilateral payments
C. Corporate tax (iii) Intermediate consumption
D. Old age pension (iv) Export - Import
(a) A - (iv), B - (i), C - (ii) D - (iii)
(b) A - (ii), B - (i), C - (iv) D - (iii)
(c) A - (iv), B - (iii), C - (i) D - (ii)
(d) A - (iii), B - (i), C - (ii) D - (iv)
7 If marginal propensity to save (MPS) is 0.25 and initial change in investment is Rs. 1
250 crore, then the final change in income would be —-------------
a. Rs. 1000 crore b. Rs. 1,200 crore
c. Rs. 500 crore d. Rs. 3,500 crore
8 The value of —---------- can never be negative while —--------- can have a value
equal to one.
a. APS, APC b. MPC, APS c. APC, APS d. MPS, APC
9 Read the following statements carefully: choose the correct option 1
Statement 1: Dividends received by a domestic company from its overseas
subsidiaries would be recorded in the balance of current account as a
component of income.
Statement 2: BOP current account records all such transactions that will bring
change in the assets and liabilities status of the economy.
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.
10 Which of the following objective of government budget is required according to the 1
following picture?

a. Re allocation of resources b. Re distribution of income and wealth


c. Stabilisation function d. GDP growth

11a On the basis of the following data, calculate the value of Net Value Added (GVA) at 3
Factor cost:

Sl No Particulars Amount
(in lakh)

1 Price per unit of output 25

2 Output sold (units) 1000

3 Excise duty 5000

4 Consumption of fixed capital 1000

5 Opening stock 1500

6 Intermediate consumption 7000

7 Closing stock 1000

8 Purchase of machine 3000

9 Purchase of raw material 4000

(OR)
b)
What is meant by problem of double counting? How can this problem be avoided?

12 “Tax revenues, an important component of revenue receipts, can be further 3


classified into two categories.” Imagine yourself as a member of Department of
Revenue of the Government of India. Help your friend to identify and differentiate
between the two categories of taxes.

13(a) “When ex-ante Aggregate Demand (AD) is more than ex-ante Aggregate Supply 4
(AS), it results in an accumulation of unintended inventories.” Defend or refute the
given statement, giving valid reasons in support of your answer.
OR
Assume the following for a hypothetical economy :
(b) (i) Autonomous Consumption Expenditure (C) = Rs. 25 crore
(ii) Marginal Propensity to Save (MPS) = 0.1
(iii) Level of Income (Y) = Rs. 2,000 crore
(iv) Autonomous Investment (I) = Rs. 25 crore
Is the economy in equilibrium situation ? Justify your answer with valid
calculations.

14 Read the passage given below and answer the questions that follow. 4
A change in the rupee-dollar exchange rate represents the change in external value
of rupee. The value of rupee, in terms of dollar, has been falling continuously over a
period of time. Since rupee-dollar exchange rate is determined by the demand for
and supply of dollars, it is possible that the value of rupee slides further if
appropriate measures are not taken.
The Reserve Bank of India, in-charge of both internal and external value of rupee,
has repeatedly emphasised on maintaining stability in the foreign exchange market.
(1) What kind of exchange rate system is being referred to in the passage?
(ii) 'The value of rupee, in terms of dollar, has been falling continuously over a
period of time. Give the economic term for this phenomenon.
(iii) How would this phenomenon affect the export?

15 Explain the concept of excess demand. How can government spending policy be 4
helpful in correcting the situation of deficient demand?

16 Read the passage given below and answer the questions that follow.
The Monetary Policy Committee (MPC) increased the repo rate, at which RBI lends
short term funds to the commercial banks, from 6.25 percent to 6.50 percent. This
increase in repo rate is based on the increase in the key rate by 250 bps. The
Committee also decided to continue the withdrawal of money supply in the
economy.
[Source (Edited): The Economic Times, Feb. 8, 2023) 1
(i) Which function of central bank is hinted at, in the passage given above? 1
(ii) In which situation does central bank adopt the measure given in the above
passage?
4
(iii) Explain any two monetary measures that can be used to accomplish a similar
objective, other than the one given in the above passage.

17 a) Why are net exports added in the total expenditure in measuring National income 2
by Expenditure method?
b) With the help of a reason, explain why the following are included in calculation 2
of National Income.
(i) Goods supplied free of cost by the government
(ii) Own account production
2
c) Outline any two precautions that should be taken in estimation of National
income by Expenditure method.
OR 6
Calculate National Income by (i) income method (ii) expenditure method

Sl no Particulars In crores

(i) Compensation of employees 1200


(ii) Net factor income to abroad. 20
(iii) Net subsidies (-)120
(iv) Dividend 500
(v) Closing stock 200
(vi) Private final consumption expenditure 2000
(vii) Net domestic fixed capital formation 700
(viii) Consumption of fixed capital 130
(ix) Corporate tax 100
(x) Opening stock 130
(xi) Rent 400
(xii) Interest 620
(xiii) Net import 30
(xiv) Undistributed profit 200
(xv) Mixed income of self employed 700
(xvi) Govt. final consumption expenditure 1100

SECTION –B – INDIAN ECONOMIC DEVELOPMENT

18 Read the following statements – Assertion (A) and Reason (R). Choose the correct 1
alternative given below:
Assertion (A): More proportion of female workforce is employed in the primary
sector as compared to proportion of male workforce.
Reason (R): Male workforce get opportunity in both secondary and service sector
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, but 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.

19 Identify the correct statement from the following: 1


a. India adopted the socialistic economic system after Independence.
b. Indian economic planning was implemented through Five Year Plans.
c. Land reforms under industrial sector were implemented by the Government of India.
d. Policy initiatives in the industrial sector were responsible for decline in Gross
Domestic Product (GDP) in India.

20 Under IPR 1956, the private sector was kept under state control through licensing 1
system. The objective of such policy was
(a) to promote regional equality
(b) to ensure that production exceeds what the economy required
(c) to ensure that private sector enterprises should not create monopoly
(d) Both (a) and (c)

21 What does the image given below indicate related to the environment? 1

a. Carrying capacity of environment falls short of its usage


b. Carrying capacity is more than rate of usage
c. Carrying is same as the rate of usage
d. None of the above

22 Green Revolution leads to marketable surplus. What does it refers to? 1


a. Production of crops for self-consumption
b. Production of crops for selling in market
c. Production of crops for maintaining sufficient stock
d. All of the above

23 Measures to reduce unemployment in very short period time 1


a. Reducing growth rate of population
b. Reducing inequalities in the distribution of income and wealth
c. Increasing investment in private and public sectors
d. None of these

24 Economic reforms were introduced in the year ------ in India and in the year -------in 1
Pakistan.
a. 1978, 1988 b. 1988, 1978
c. 1978, 1991 d. 1991, 1988

25 Identify the correct sequence of alternative given in Column II by matching 1


them with respective items in Column 1:

Column 1 Column II

A. Labour force (i) Secondary sector


B. Mining (ii) Number of people who are employed plus the
unemployed who are looking for work.
(iii) Primary sector
C. Workforce
(iv) Total number of people who work in a company
D. Paper productiion

a. A - (iv), B - (i), C - (ii) D - (iii)


b. A - (ii), B - (i), C - (iv) D - (iii)
c. A - (iv), B - (iii), C - (ii) D - (i)
d. A - (ii), B - (iii), C - (iv) D - (i)

26 In 1995, a thrift and credit society was started as a small savings bank for poor women 1
with the objective to encourage savings. Identify the society.
a. Kudumbashree
b. Tamil Nadu Women in Agriculture (TANWA)
c. National Bank for Agriculture and Rural Development (NABARD)
d. Community Investment Support Fund (CISF)

27 Institutional source of agricultural credit are: 1


a. Land development Banks b. NABARD
c. Self-Help groups d. All of these

28 On the basis of the data given below, outline and discuss the shift in employment and 3
output for China and Pakistan.

OR
3
Give reason for the slow growth and re-emergence of poverty in Pakistan
29 Identify the situation depicted in the given figure and explain any one strategy to 3
effectively overcome the problem.

30 Read the following hypothetical text and answer the given questions: The performance
(a) of the Indian economy during the period of first seven five year plans (1950-1990) was
satisfactory if not very impressive. On the eve of independence, India was an
industrially backward country, but during this period of first seven plans our industries
became far more diversified, with the stress being laid on the public investments in the
industrial sector. The policy of import substitution led to protection of the domestic
industries against the foreign producers but we failed to promote a strong export
surplus. Although the public sector expanded to a large extent, it could not bring the
desired level of improvement in the secondary sector. Excessive government
regulations prevented the natural trajectory of growth of entrepreneurship as there was
no competition, no innovation and no modernization on the front of the industrial
sector. Many Public Sector Undertakings (PSU’s) incurred huge losses due to
operational inefficiencies, red-tapism, poor technology and other similar reasons.
These PSU’s continued to function because it was difficult to close a government
undertaking even if it was a drain on the country's limited resources. On the
Agricultural front, due to the measures taken under the Green Revolution, India more
or less became self-sufficient in the production of food grains. So the need for reform
of economic policy was widely felt in the context of changing the global economic
scenario to achieve desired growth in the country.
2
Q-1 What are the reasons for the public sector to play a major role in the initial phase
of Indian Economic Planning?
Q - 2 Give benefits of inward looking trade strategy. (Any two) 2

31 Group the following features pertaining to the economies of India, China and Pakistan 4
under three heads
 One-child norm
 Lack of Political stability
 High degree of urbanisation
 Mixed economy
 Very high fertility rate
 Growth due to manufacturing sector
 Over dependence on remittances and foreign aid
 High density of population

32 a) “Expenditure on different levels of education in India is in the same proportion.” 4


Defend or refute the given statement, giving valid reasons.
OR
“A sound agricultural marketing system works as the backbone of any agro-system of
b) 4
any nation.” Justify the above statement by listing any two steps taken by the Indian
government in this direction

33 a) (i) What do you understand about the ‘drain of Indian wealth’ during the colonial 3
period? 3
(ii) While subsidies encourage farmers to use new technology, they are a huge burden
on government finances. discuss the usefulness of subsidies in the light of this fact
OR
3
(i) Various fiscal reforms were initiated in the New Economic Policy of 1991. One
b) fiscal measure undertaken was to reduce taxes. How in your views is it justifiable?
(ii) Why did RBI have to change its role from controller to facilitator of financial 3
sector in India?

34 (i) Why is agricultural diversification essential for sustainable livelihoods? 3


(ii) Critically evaluate the role of the rural banking system in the process of rural 3
development in India.

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