CLASS: XII

DELHI PUBLIC SCHOOL

PRE BOARD-2
INSTRUCTIONS
Read all the questions carefully before attempting them. Write using only SUB: Economics
blue/black ink. Duration: 3 HOURS. Avoid writing anything/ticking
answers in the question paper. Attach graph paper/map etc. (if
any) in between the main answer booklet.
SESSION: 2024-25 MAX.
GENERAL INSTRUCTIONS:
I. This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
II. This paper contains 20 Multiple Choice Type Questions of 1 mark each.
III. This paper contains 4 Short Answer Type Questions of 3 marks each to be
answered in 60 to 80 words.
IV. This paper contains 6 Short Answer Type Questions of 4 marks each to be
answered in 80 to 100 words.
V. This paper contains 4 Long Answer Type Questions of 6 marks each to be
answered in 100 to 150 words.
SECTION A – MACRO ECONOMICS
1. Complete the table: [1]

Alternatives:
a) 4000, 10400, 4000, 4000
b) 4000, 10400, 4000, 4400
c) 2000, 6000, 6000, 4400
d) 4000, 10400, 6000, 4000
2. Read the following statements carefully:
[1]
Statement 1: Primary deposits are the cash deposits by general public with
commercial banks.
Statement 2: Secondary deposits are those deposits which arise on account of credit
provided by the commercial banks to the people.
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.
Page 1 of 10
 DELHI PUBLIC SCHOOL

c) Both Statements 1 and 2 are true.

d) Both Statements 1 and2 are false.
3. Money is an asset which can be stored for use in future.'
[1]
In the light of given statement, identify the function of money.
(Choose the correct alternative)
a) A measure of value
b) A standard of deferred payment
c) A store of value
d) A medium of Exchange
4. Read the following statements: Assertion (A) and Reason (R), Choose the correct
alternative given below:
[1]
Assertion (A): Before reaching the Break-Even level of income, the value of Average
Propensity to Consume (APC) in greater than 0ne.
Reason (R): The Average Propensity to Consume (APC) is the ratio of the total
consumption and total income.
Alternatives:
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 and Reason (R) is false.
d) Assertion (A) is false and Reason (R) is true.
5. If the value of investment multiplier = 4 and Dissavings = (-) 60, identify the
correct Saving function from the following:
[1]
a) S = (-) 60 +025 Y
b) S= (-) 60 +0 75 Y
c) S= (-) 60 +0.20 Y
d) S= (-) 60 + 0-60 Y
6. Read the following statements carefully:
[1]
Statement 1: In a two sector economy, consumption expenditure and investment
expenditure are the two components of Aggregate Demand.

Page 2 of 10
 DELHI PUBLIC SCHOOL

Statement 2: Aggregate demand curve always start from point of origin with positive
slope.
In the light of 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.
7. Deficit' in Balance of Payment (BOP) refers to the excess of __________
(Choose the correct alternative)
[1]
a) Current account payments over Current account receipts.
b) Capital account payments over Capital account receipts.
c) Autonomous payments over Autonomous receipts
d) Accommodating payments over Accommodating receipts
8. Gifts and remittances sent abroad are recorded on the ___________ side of the
_________ account in Balance of Payment.
[1]
(Choose the correct alternative to fill up the blanks)
a) credit, capital
b) debit, capital
c) credit, current
d) debit, current
9. Which of the following is not an implication of fiscal deficit?
[1]
a) Fiscal deficit leads to increased dependence on foreign countries
b) Fiscal deficit helps to determine the total borrowing requirements of any
government
c) The repayment of loans with interest helps to reduce the fiscal deficit
d) The fiscal deficit increases the liability of any government
10. Which of the following items is an example of capital expenditure undertaken by
the government?
[1]
a) Subsidies and defence services expenditure
b) Construction of roads and repayment of loans
c) Both (a) and (b) are correct

Page 3 of 10
 DELHI PUBLIC SCHOOL

d) Both (a) and (b) are incorrect

11. Suppose the Gross Domestic Product (GDP) of Nation X was ₹ 2,000 crores in
2018-19, whereas the Gross Domestic Product of Nation Y in the same year was ₹
120,000 crores. If the Gross Domestic Product of Nation X rises to ₹ 4,000 crores in
2019-20 and the Gross Domestic Product of Nation Y rises to ₹ 200,000 crores in
2019-20. Compare the rate of change of GDP of Nations X and Y, taking 2018-19 as
base year. [3]
Or
Explain the concept of Double Counting in the context of calculating National Income
and provide a practical way to avoid it.
12. In an economy planned spending is greater than planned output. Explain all the
changes that will take place in the Economy.
[3]
13. Using a numerical example, elaborate the credit creation process as handled by
the commercial banks.
[4]
14. From the given information, determine the following:
[2+2]
(i) Capital expenditure
(ii) Interest payments
Particulars (₹ in crores)
Fiscal deficit 12,000
Revenue deficit 9,000
Primary deficit 5,000
Revenue receipts 6,000
Non-debt capital receipts 10,000
Or
“Tax revenue collection of the government may be categorized under two heads.”
State and explain the two heads of tax revenue. Give one example of each.
15. Giving valid reasons, state whether the following statements are true or false:
[4]
(i) Dividend received from investment abroad is recorded on the credit side of the
capital account.
(ii) Depreciation of the Indian Currency will lead to promotion of Indian exports.
(iii) BOT refers to balance of both Visible and Invisible Items of Current account.

Page 4 of 10
 DELHI PUBLIC SCHOOL

(iv) ‘Foreign Portfolio Investment (FPI) witnessed a sharp turnaround during 2023-24
with net FPI inflows of US$ 32.4 billion.’ This will be recorded on the credit side of
current account.
16. (i) In what situation will the Real Gross Domestic Product be greater than the
Nominal Gross Domestic Product?
(ii) If the Nominal Gross Domestic Product is ₹2200 crores, and the price index (base
= 100) is 110. Calculate the Real Gross Domestic Product.
[3+3]
17. Explain the concept of Inflationary Gap in macroeconomics. Also explain the role
of bank rate in correcting it.
[6]
Or
“Saving curve can be derived from the consumption curve” Justify the statement,
citing valid steps with the help of a well-labelled diagram
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18. Read the following statements: Assertion (A) and Reason (R), Choose the correct
alternative given below:
[1]
Assertion (A): Agricultural productivity became low during British rule in India.
Reason (R): The productivity was low due to various systems of land settlement
introduced by the colonial government.
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 and Reason (R) is false.
d) Assertion (A) is false and Reason (R) is true.
19. " In 1994, Maulik worked in an automotive manufacturing company owned by the
government of India. It was soon to be disinvested and privatized by the government.
As a result, Maulik planned for a job shift and explored other sectors that could
guarantee him greater growth in the future."
In light of the nation's political and economic situation at the time, which of the
following professions would have fulfilled his expectations?
[1]
a) Mining

Page 5 of 10
 DELHI PUBLIC SCHOOL

b) Tourism
c) Textile Industry
d) Information technology
20. Read the following statements: Assertion (A) and Reason (R), Choose the correct
alternative given below:
[1]
Assertion (A): Poverty leads to environmental degradation.
Reason (R): Affluence in living standard is causing environmental degradation.
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 and Reason (R) is false.
d) Assertion (A) is false and Reason (R) is true.
21. “Assuming in a hypothetical economy, Real Gross Domestic Product recorded a
growth rate of 9% during a fiscal year. However, the economy faced a significant
challenge in terms of creating an adequate number of employment opportunities.”
Identify the situation indicated in the given statement and choose the correct option.
[1]
a) Casualization of workforce
b) Informalisation of workforce
c) Formalisation of workforce
d) Jobless growth
22. Skill India' programme launched by the Government is not an attempt to increase
in India. (Choose the correct alternative to fill up the blank)
[1]
a) human capital formation
b) efficient utilisation of inputs
c) increase in GDP growth
d) inadequate spread of vocational education
23. Read the following statements carefully and choose the correct alternative from
the following:
[1]
Statement 1: In rural area, poor people are mostly found among landless agriculture
workers, Marginal farmers, landless laboures engaged in other jobs etc.

Page 6 of 10
 DELHI PUBLIC SCHOOL

Statement 2: In urban area, poor are largely due to overflow of rural poor who had
migrated urban centres in search of alternative employment.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
24. Kavitha, a farmer in rural India, is a recipient of a government scheme named
__________. This scheme helps her set up a bank account and provides insurance,
overdraft and other social security benefits.
[1]
a) Sansad Adarsh Gram Yojana
b) Jan-Dhan Yojana
c) Kudumbashree
d) NABARD
25. Read the statements and choose the correct option.
[1]
Statement (1): The ratio of employed women in urban areas is generally lower than
that of employed women in rural areas.
Statement (2): There are a higher number of low-income employment opportunities
available in rural areas than in urban areas.
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
26. United Nations General Assembly has enlisted a list of 17 Sustainable
Development Goals (SDGs) to be achieved by 2030. Accordingly, SDG 7 is to "Ensure
that everyone has access to enough, trustworthy, sustainable, and modern energy."
______ does not constitute a step toward achieving SDG 7.
[1]
a) CNG
b) solar energy
c) thermal power
d) mini-hydel plants

Page 7 of 10
 DELHI PUBLIC SCHOOL

27. Identify the correct alternative with reference to the following statement:
[1]
"Between 1966- 76, Mao introduced this movement under which professionals and
students were asked to work and learn from real life situations prevailing in the
countryside of China."
a) Commune System
b) Great Leap Forward
c) Open Door Policy
d) Great Proletarian Cultural Revolution
28. “It is necessary to create employment in the formal sector rather than in the
informal sector.’’ Defend or refute the given statement with valid argument.
[3]
Or
“India has failed to implement the recommendations of Education Commission of
1964 -66.” Give valid arguments in support of the given statement.

29. Sectoral contributions to GDP in % of three countries are given below: [3]

Analyse the data and compare the trends in the output growth in different sectors for
the three countries.
30. Critically appraise the Globalization policy initiated by the government during the
reforms of 1991.
[4]
Or
Briefly describe why the government had to intervene in the implementation of the
Green Revolution, and the various steps it took to protect small farmers.
31. 'Kudumbashree' is a woman-oriented community-based poverty reduction
programme being implemented in Kerala. In 1995, a thrift and credit society was
started as a small savings bank for poor women with the objective to encourage
savings. The thrift and credit society mobilised ₹1 crore as thrift savings. These

Page 8 of 10
 DELHI PUBLIC SCHOOL

societies have been acclaimed as the largest informal banks in Asia in terms of
participation and savings mobilised.
Source: www.kudumbashree.com, NCERT Based on this passage.
[3+1]
i) Discuss the role of Self-Help Groups (SHGs) in meeting the credit requirements of
the poor.
ii) List some of the drawbacks of such micro-credit programmes.
32. ‘The reform process implemented in the late 1970s, commonly known as China’s
open door policy, encompassed a wide range of reforms across sectors like
agriculture, investment, industry etc. These reforms played a pivotal role in driving
the rapid growth of the Chinese economy over subsequent decades.’
In the light of the given text, discuss any two reforms responsible for the rapid
economic growth of China.
[4]
33. (i) Highlighting three significant adverse impacts, conduct a comprehensive
analysis to evaluate the potential negative repercussions of implementing the
economic strategy of Import Substitution in developing nations.
(ii) 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-industrialization" and technological backwardness.
[3+3]
34. (i) State any three measures that a government in a developing country can
implement to enhance the efficiency and effectiveness of the agricultural marketing
system.
(ii) Interpret the given picture on account of current environmental challenges.
[3+3]

Or

Page 9 of 10
 DELHI PUBLIC SCHOOL

(i) Interpret the given picture based on the Saansad Adarsh Gram Yojana (SAGY)
initiated by the Government of India.

(ii) "Recently Indians have

drifted away from the traditional
knowledge and practices and caused large scale damage to environment".
Explain how, adopting the traditional practices can be helpful in achieving the
objective of sustainable development?

Page 10 of 10