QP Economics

कें द्रीय विद्यालय संगठन
(जम्मू संभाग )
KENDRIYA VIDYALAYA SANGATHAN

(JAMMU REGION)
SAMPLE PAPER
FOR CLASS XII
ECONOMICS (030)
क्षेत्रीय कायाालय, जम्मू, नज़दीक राजकीय विककत्सालय, गााँधी नगर

जम्मू-180004
Regional Office, Jammu, Near Govt. Hospital,
Gandhi Nagar, Jammu-180004
ECONOMI
CS(
030)
CLASS–XI
I(2022-
23)
Theor
y:80Marks3Hour
s
UNI
T UNI
TNAME MCQ SAT-
1 SAT-
2 LATYPE TOTAL
NO. QUESTI
ONS QUESTIONS
1MARK QUESTI
ONS Mar
ks
3MARK 4MARK
6MARKS
1 Nat
ionalI
ncomeand 5, 11 16 10
Rel
atedAggregat
es
2 MoneyandBanki
ng 3,
7 15 6
3 Det
erminat
ionof 1,
6,
9,
10 13,
14 12
i
ncomeand
employ
ment
4 Gover
nmentBudget 17 6
andEconomy
5 Bal
anceofPay
ment 2,
4,
8 12 6
PARTA 10x1 2X3 3X4 2X6 40(

17)
6 Devel
opment 18,
19 31 34 12
Experi
ence(
1947-90)
andEconomicref
orms
-1991
7 Curr
entchall
enges 21,
23,
25,
26 28,
29 32 33 20
faci
ngIndi
aneconomy
8 Development 20,
22,
24,
27 30 8
ExperiencesofIndi
a-a
compar isonwit
h
Neighbor
PARTB 10x1 2X3 3X4 2X6 40(

17)
TOTAL 20(
20) 4(
12) 6(
24) 4(
24) 34
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ONS
80MARKS
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KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-1
CLASS – XII SUBJECT: ECONOMICS
TIME: 3 HOURS MM:80
General instructions
● All the questions in each section are compulsory
● Marks for questions are indicated against each question
● Questions No. 1-10 and 18-27 are MCQ or objective type questions carrying 1 mark each. They are required
to be answered in one sentence each.
● Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them should
normally not exceed 60 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as possible
Q.No. SECTION A – MACRO ECONOMICS Marks
1 Read the following statements carefully: 1
Statement 1: The consumption curve is downward sloping straight line curve due to the
inverse relationship between income and consumption and the assumption of constant
Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each
other. In the 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 ‘Owing to the covid-19 crisis, the world was experiencing falling crude prices due to 1
demand-side issues.’
Identify the most likely impact on the Balance of Payment situation of the Indian economy
from the following:
a) Production of food grains in India will rise.
b) Production and sale of cycles in India will rise.
c) Inflow of US Dollars in India will rise.
d) Outflow of US Dollars from India will reduce.
3 is an institution, where commercial banks park their surplus funds. 1
(Fill up the blank with correct alternative)
a) Commercial Banks b) Life Insurance Corporation
c) Reserve Bank of India d) Government of India
Statement 1: Export of goods by India will be recorded on credit side of current account.
Statement2: Foreign Direct Investments in India will be recorded on credit side of capital
account.
In the light of the given statements, choose the correct alternative:
Statement 1 – Gross investment is a part of Net investment.
Statement 2 - Capital is a stock concept.
In the light of the given statements, choose the correct alternative from the following:
OR
Read the following figure carefully and choose the correct pair from the alternatives given
below:
Alternatives:
a) Output, Production
b) Value added, Production
c) Output, Disposition
d) Wealth, Development
6 If in an economy, the value of investment multiplier is 2 and Autonomous Consumption is ₹ 1
15 Crore, the relevant consumption function would be:
a) C=15+0.50 Y b) C= (-)15+0.50Y
c) C=15-0.75Y d) C=15-0.50Y
OR
If consumption function is C= 85+0.25Y, identity the value of Marginal Propensity to Save:
a) 0.25 b) 0.50
c) 0.75 d) 1
7 Money supply in India may decrease if, (Choose the correct alternative) 1
1. Reserve Bank of India (RBI) soaked more money in circulation
2. the commercial banks reduce their credit operation
3. tax rates are increased by the Central Government
4. Reserve Bank of India decreases the Bank Rate
Alternatives:
a) 1,2 and 3 are correct
b) 2,3 and 4 are correct
c) 1,3 and 4 are correct
d) 1,2 and 4 are correct
8 Suppose, following data is presented, for an imaginary economy: (all figures in ₹ ‘000 Crore) 1
Year Visible Exports Visible Imports
2010 280 240
2020 580 460
Identify, which of the statement about the period 2010 to 2020 is correct?
a) Improvement in balance of trade
b) Increase in trade deficit
c) Improvement in balance in invisibles items
d) Deterioration of balance of trade
OR
The following information is given for an imaginary country:
Current Account Amount (in ₹’000 Crore)
Visible Exports 100
Visible Imports 150
Invisible Exports 70
Invisible Imports 30
Net current transfer balance 15
Balance on current account will be of ₹ thousand Crore.
a) deficit, 10
b) surplus,5
c) deficit, 5
d) surplus, 10
9 Read the following statement -Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): Ex-post saving represent planned saving; whereas ex-ante saving represent
actual level of saving.
Reason (R): At equilibrium level, Ex-ante Savings and Ex-ante Investments are always
equal.
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 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.
Assertion (A): consumption curve makes a positive intercept on the vertical axis at zero
level of income.
Reason (R): consumption function refers to the functional relationship between
consumption and income. Alternatives:
of Assertion (A).
11 Suppose in a hypothetical economy there are only two Firms A and B, Firm A sold goods for ₹ 3
4,000 to Firm B and purchased goods for ₹ 1,000. Firm B exported goods for ₹ 4,500 and had
domestic sales of ₹ 1,500. Calculate Net Domestic Product at market price, if consumption of
fixed capital is ₹ 600.
12 Explain, how exchange rate is determined under a free market exchange rate system. 3
OR
Distinguish between Balance of trade and balance of Payments Account. 3
13 If an economy plans to increase its income by ₹ 8,000 crore and the Marginal Propensity to 4
Consume is 50%. Estimate the increase in investment required to achieve the targeted
increase in income.
14 As per the following news published in The Economic Times in 2020: 4
‘Reserve Bank of India has purchase government securities worth ₹ 15000 crore in the
secondary market, over the last four weeks’.
Identify the likely cause and the consequences behind, this type of action plan of the
Reserve Bank.
15 Read the following text carefully, discuss briefly the relevant function of the Central Bank, 4
indicated :
Recently, Reserve Bank of India (RBI) issued loan to a commercial bank, when it fails to
take loan from other banks.
As per above information what role was played by RBI in that situation? Explain it?
OR
‘Reserve Ratio and Credit Creation are inversely related.’ Do you agree with the given
statement? Justify your answer with a suitable numerical example.
4
16 a) Explain how ‘externalities’ are a limitation of taking gross domestic product as an 3
index of welfare.
b) Discus various components of the income method that are used to calculate 3
national income.
17 a)“Governments across nations are too much worried about the term fiscal deficit”. Do you 3+3
think that fiscal deficit is necessarily inflationary in nature? Support your answer with valid
reasons.
b)Explain why public goods must be provided by the government?
OR
a) Give the relationship between revenue deficit and fiscal deficit.
3+3
b) Explain the ‘economic stability’ objective of a government budget.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18 When was India’s first official census operation undertaken 1
a) 1872
b) 1881
c) 1891
d) 1901
19 is the current chairman of NITI Aayog. 1
a) Amitabh Kant b) Tapas Majumdar
c) Mahalanobis d) Shri Narinder Modi
OR
First Industrial Policy Resolution of Independent India was announced in the year 1
(Fill in the blank with the correct alternative)
a) 1947 b) 1948 c) 1951 d) 1956
20 One Child Policy was adopted by China in the _________Year. 1
a) 1977
b) 1979
c) 1981
d) 1983
OR
First Five Year Plan of Pakistan commenced in the year --------------- 1
a) 1954
b) 1956
c) 1958
d) 1960
21 When was NABARD set up 1
a) 1962 b) 1972
c) 1982 d) 1992
22 Which Pair is collectively matched 1
Column I Column II
i One child Policy Pakistan
ii Commune system Collective Farming
iii Economic Reforms in China 1991
iv Economic Reforms in India 1978
Alternatives:
a) i – A
b) ii – B
c) iii – C
d) iv – D
23 Read the following statements carefully. 1
Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and
practical experiences.
Statement 2: On-the-job trainings update the employees, with the latest changes in their
work field.
24 Read the following statements carefully. 1
Statement 1: India initiated economic reforms after pressure from the IMF.
Statement 2: China has successfully implemented the SEZ policy and reaped its benefits
using the Export Promotion policy.
25 is a cause for environmental degradation. 1
a) Waste management
b) Plantation
c) Deforestation
d) Guarding green cover
OR
is not the strategy for Sustainable Development. (Choose the
correct alternative)
a) Use of bio-gas
b) Use of solar power
c) Use of thermal power
d) Use of hydel power
Assertion (A): Informal sector is major source of employment in India.
Reason(R): Unemployment is the root cause of all socio-economic evils. Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
Assertion (A): One reason behind great success of China was one Child Policy.
Reason(R): China has witnessed an increase in the proportion of elderly people owing to
stringent family planning programmes.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
28 What is environment? Explain in brief. 3
29 Defend or refute the following statement with valid explanation: 3
‘Disguised unemployment is a common form of unemployment in rural India’
OR
Critically evaluate the role of rural banking system in the process of rural development in 3
India.
30 “Great Leap Forward campaign played important role in industrializing China” Explain the 4
Great Leap Forward campaign of China in the light of given statement?
31 Explain the need and type of land reforms implemented in the agriculture sector. 4
OR
Explain stabilization and structural adjustment programmes in the light of New Economic 4
Reforms in India in 1991.
32 State whether the following statements are true/false, with valid arguments: 2
a) Human Capital and Human Development are one and the same thing. 2
b) India has a poor stock of technical manpower.
33 a) What do you mean by rural development? 2
b) Why is agricultural diversification essential for sustain-able livelihoods? 2
c) Explain how the opportunity costs of negative environmental impact are high. 2
OR
a) “India has failed to implement the recommendations of Education Commission of
3
1964 -66.” Give valid arguments in support of the given statement.
3
b) ‘Casual wage work is the major source of employment in rural India ‘. Defend or
refute the given statement with valid reason.
34 Read the following text carefully and answer the given questions on the basis of the same 3
and common understanding: 3
The Green Revolution in India began in the mid-1960s marking a transition from traditional
agriculture in India to high-yielding varieties of seeds and the associated modern agricultural
techniques. The need for introduction of Green Revolution in India arose due to a shortage
of food-grains in the post-independent period.
The government in the post-independent India wanted to ensure self-dependence in terms of
food-grain production. Such efforts coincided with the development of high-yielding
varieties of seeds of wheat developed by Dr. Norman Borlung and his associates in Mexico.
These seeds also necessitated changes in farming techniques such as the addition of
fertilizers, pesticides and better irrigation facilities. High yielding varieties of seeds were first
introduced in India in the states of Punjab, Haryana and parts of western Uttar Pradesh.
In the early period of the green revolution in India, the focus was to acclimatise the new
system with the more resource-intensive agricultural methods. The argument for
introducing the new crop varieties was to increase agricultural production in terms of
higher crop yields. The seeds introduced during the early period of the green revolution in
Punjab were not high- yielding by themselves. These high yields were possible due to the
seeds being highly responsive to certain inputs such as irrigation water and fertilizers.
The green revolution in India, thus, necessitated a resource-intensive process whereby,
those who could make significant capital investments could benefit, whereas, those others
became more marginalized in regions affected by practices of the green revolution in
India. On one hand, the results derived from the green revolution helped farmers to
increase their yield and income and on the other hand, it helped the government to
procure and preserve more food grains through agencies like Food Corporation of India.
These food grain reserves were helpful in creation of buffer stocks in India, which helped
in the situations of adversities.
a) Why was it necessary for a developing country like India to follow self-reliance as a
planning objective?
b) Explain the statement that green revolution enabled the government to procure sufficient
food grains to build its stocks that could be used during times of shortage.
SAMPLE PAPER SET-2
TIME: 3 HOURS MM:80
● Questions No. 1-10 and 18-27 are MCQ or objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
● Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as
possible
Part A- Macro Economics
Sr no Questions marks
1 Read the following statements -Assertion (A) & Reason (R) 1
Choose the correct alternative.
Assertion (A): The value of Average Propensity to Consume can be greater than one.
Reason (R): It is when total consumption is greater than total income (i.e., C > Y) before
break-even point.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation for Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
2. “India received a loan from IMF in 1991”. How is this transaction recorded in India’s 1
Balance of payments account?
(a) Credit side of current account
(b) Debit side of current account
(c) Credit side of capital account
(d) Debit side of capital account
3 Identify the function which is not performed by a commercial bank? 1
( a) Provide financial services to the general public
(b) Banker to the public
( c) Banker to Government
( d ) Credit creation
4 Read the following statements carefully -Assertion (A) & Reason (R) and choose the
correct alternative.
Assertion (A) : Imports of crude oil by India will have a unfavourable impact on Balance of
payments of India.
Reason (R) : Imports of goods are recorded on the debit side of current account as it leads
to outflow of foreign exchange.
explanation for Assertion (A) .
5 Read the following statements carefully -Assertion (A) & Reason (R) and choose the 1
correct alternative.
Assertion (A) : Real Gross Domestic Product (GDP) is a bad indicator of economic growth
and welfare of people of the country than Nominal Real Gross Domestic Product (GDP)
Reason (R ) : Real Gross Domestic Product (GDP) is not affected by changes in general
price level. Secondly, because increase in real Gross Domestic Product (GDP) means more
goods and services are available to the society during the year, thus, the welfare
increases.
(d ) Assertion (A) is false but Reason (R) is true.
OR
A firm produces ₹ 200 worth of goods per year, ₹ 40 is the value of intermediate goods
used by it during the day year and ₹ 20 is the value of capital consumption. The net value
added will be
(a) ₹ 140
(b) ₹ 160
(c) ₹ 180
(d) ₹ 200
6. Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 8,000 1
crores. As a result, the consumption expenditure rises from ₹ 4,000 to ₹ 5,000 crores .
Marginal propensity to consume in such case would be……………
(a) 0.3
(b) 0.4
(c) 0.5
(d) 0.6
OR
When MPS = 0.5 , then K ( investment multiplier) is :
(a) 1
(b) 2
(c) ∞(infinity)
(d) None of these
7 Which of the following institutions perform activity of credit creation? 1
(a) Commercial banks
(b) Central bank
(c) Both (a) and (b)
(d) None of these
8 Foreign exchange transactions which are independent of other transactions in the 1
Balance of payment accounts are called :
(a) Current transactions
(b) Capital transactions
(c) Autonomous transactions
(d) Accommodating transactions
OR
From the set of statements given in column I and column II, chose the correct pair of
statements:
Column I Column II
(a) Export of software to France (i) Debit side of current
account
(b) Import of Machinery from (ii) Capital Account of

China Balance of Payments
(c) Remittances to relative (iii) Debit side of Current

staying abroad Account of Balance of
Payments
(d) Investment by Apple phones (iv) Credit side of Current

firm in India Account of Balance of
Payments
Options :
1.(a)-(i) 2. (b)-(ii) 3.(c)-(iii) 4.(d)-(iv)
9 Read the following statements – Assertion (A) & reason (R) carefully & choose the correct 1
alternative:
Assertion (A): Average Propensity to Consume represents the slope of the consumption
function.
Reason (R) : Marginal Propensity to Consume represents change in consumption due to a
given change in income.
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
10 Read the following statements :- Assertion (A) & Reason (R) carefully & choose the correct 1
alternative:
Assertion (A): APC is continuously increasing as income increases; and APS is continuously
decreasing as income increases.
Reason (R): As income increases, the proportion of income saved increases and the
proportion of income consumed decreases.
(a) Both assertion (a) and Reason (R) are true and Reason (R) is the correct
explanation for Assertion (A)
11 Compute National income from the following data

3
Sr Particulars Amount (in ₹crores
no )
(i) Private final consumption expenditure 900
(ii) Government final consumption expenditure 400
(iii) Net imports 30
(iv) Gross domestic capital formation 250
(v) Change in stock 50
(vi) Net domestic fixed capital formation 180
(vii) Net indirect taxes 100
(viii) Net factor income from abroad (-) 40
(ix) profits 100
12 Distinguish between Autonomous and accommodating transactions in balance of 3

payments accounts.
OR
What is foreign exchange rate? Distinguish between fixed and flexible exchange rates.
13 In an economy 75% of the increase in income is spent on consumption. Investment is 4
increased by ₹2000 crores. Calculate :
(a) Total increase in income
(b) Total increase in consumption expenditure.
14 “Fiscal measures offer a valid solution to the problem of inflationary gap in an economy”. 4
State and discuss any two monetary measures to justify to given statement.
15 Discuss any one of the following functions of a central bank : 4
(a) As bank of the government
(b) Open market operations
OR
Assuming that initial deposit with bank ₹10000 crore legal reserve ratio 20% , Explain the
process of credit creation by the bank.
16 (A) Real gross domestic product is a better indicator of economic growth then 6
nominal Gross domestic Product (3+3)
Do you agree with given statement? Support your answer with the suitable
numerical example.
(B) Calculate ‘Depreciation on capital asset’ From the following data
Sl.no. Particulars Amount (In ₹
crore)
(i) Capital value of the asset 5,000
(ii) Estimated life of the asset 40 years
(iii) Scrap value nil
17 Identify the following as Revenue expenditure or capital expenditure. Give reason 6

(i) Salary paid to government employee
(ii) Purchase of machine from Korea.
(iii) Repayment of loan taken from IMF.
(iv) Interest paid on national debt.
(v) Expenditure on construction of dam.
(vi) Social security benefits paid to retired government employee.
OR
(A) Elaborate the objective of ‘allocation of resources’ in the government budget.
(B) Distinguish between revenue receipts and capital receipts of the government, with
suitable examples.
Part- B Indian Economic Development
18 Which one belongs to the tertiary sector:- 1
a) Growing wheat
b) Making biscuits using wheat flour
c) Trading in wheat
d) None of the above
19 In the Industrial Policy Resolution of 1956, industries were classified in ……………. 1
Categories.
(a) Two (b) three (c) four (d) five
OR
The licensing policy aimed at:
a) Promoting regional equality
b) check undue expansion of industrial sector
c) both a) and b)
20 Introduction of Economic Reforms in Pakistan took place in the year……….. 1
(a) 1978 (b) 1980 (C ) 1988 (d) 1991
Or
Arrange the following events in chronological order and choose the correct answer from
the given alternatives:
(i) Establishment of People’s Republic of China.
(ii) Creation of Pakistan
(iii) First Five-Year Plan of India.
(iv) First Five-year Plan of China.
(a) (i), (iv), (ii), (iii) (b) (iii), (ii), (i), (iv)
( c) (ii), (i), (iii), (iv) (d) (iv), (iii), (ii), (i)
21 full form of NABARD is: 1
a) National Bank for Agriculture and Rural Development
b) National Bank for Agriculture Development
c) National Bank for Agriculture
d) National Bank for Rural Development
22 Identify the correct pair by matching the respective events of China in column I with the 1
year of occurrence in column II:
Column I Column II
(A) Introduction of economic (i) 1949

reforms in China
(B) Establishment of People’s (ii) 1953

Republic of China.
(C) The Commune system in (iii) 1978

China.
(D) Great Leap Forward (iv) 1958

campaign initiated in China.
(a) A- i (b) B-ii

(c ) C-iii (d) D-iv
23 Read the following statements carefully and choose the correct alternative: 1
Statement-I: Human capital is not sold in the market; only the services of the human
capital are sold.
Statement-II: Human capital is perfectly mobile between countries.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement-I is true, Statement-II is false.
(d) Statement-II is true, statement -I is false.
Statement-I: while India and Pakistan became independent nations in 1947, People’s
Republic of China was established in 1949.
Statement-II: while India announced its first Five Year Plan in 1951, Pakistan announced
its first five year plan, now called the Medium Term Development Plan, in 1953. China
announced its First Five Year Plan in 1956.
(d) Statement-II is true, Statement-I is false
25 The use of ……………….as fuel in public transport system may reduce air pollution. 1
(a) LPG (b) CNG
(c)water (d) Electricity
OR
…………………emphasises on protecting the future generation.
(a) Edward Barbier
(b) United Nations Conference on Environment and Development (UNCED)
(c) Brundtland Commission.
(d) Herman Daly.
Statement-I: Work at home includes not only traditional work like weaving, lace making
or variety of handicrafts but also modern jobs like programming work in the IT industry.
Statement-II: During Covid 19 pandemic in 2020-21, millions of workers delivered their
products and services through work from home.
(d) Statement-II is true, Statement-I is false.
27 Read the following statements-Assertion (A) and Reason (R), and select the correct 1
alternative:
Assertion (A): The Great Leap Forward (GLF) campaign initiated in 1958 met with many
problems.
Reason (R): A severe drought caused havoc in China killing about 30 Million people. When
Russia had conflicts with China, it withdrew its professionals who had earlier been sent to
China to help in the industrialisation process.
28 “Sustainable Development Goals (SDGs) of Global Goals are collection of 17 interlinked 3
global goals designed to be a shared blueprint for peace and prosperity for people and
the planet now and into future. Sustainable Development Goals (SDGs) were set up by
United Nations Assembly in 2015 to be achieved by 2030”.
In the context of above statement, suggest any two strategies for achieving sustainable
development.
29 Explain the role of Micro-credit programmers in meeting the credit requirements of the 3
poor.
OR
‘In recent times the Indian Economy has experienced the problem of Casualisation of the
workforce. This Problem has only been aggravated by the outbreak of COVID-19.’ Do you
agree with the given statement?’ Discuss any two disadvantages of casualisation of the
workforce in the light of the above statement.
30 Answer the following questions on the basis of the following data : 4
(a) Comment upon the population growth rates among three countries.
(b) Which country has most skewed in sex ratio
Country Estimated Annual growth of Sex ratio
Population ( in population (in %)
million)
India 1352 1.03 924
China 1393 0.46 949
Pakistan 212 2.05 943
Source: world development indicators 2019, www.worldbank.org
31 Explain how Goods and Services tax (GST) has Simplified the multiplicity of taxes on goods 4
and services.
OR
Explain types of land reforms / institutional reforms implemented in the agriculture sector
in India.
32 “Organic farming can be beneficial on biodiversity and environment at local level “Explain 4
in brief four advantages of Organic farming”.
33 Critically evaluate the role of the rural credit / banking system in the process of rural 6
development in India. Also, give some suggestions to improve the situation.
OR
“Government of India has taken important steps to improve rural marketing in India”.
Justify the statement.
34 “Much needed liberalised industrial policy was announced by government of India in July 6
1991 in the midst of economic instability in country” Explain industrial sector reforms
undertaken by government India in 1991 to reform Indian economy.
SAMPLE PAPER SET-3
CLASS – XII SUBJECT: E CONOMICS
TIME: 3 HOURS MM:80
General Instructions:
● This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
● This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
● This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60
to 80 words.
● This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80
to 100 words.
● This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100
to 150 words.
Q.N SECTION: A MACRO ECONOMICS M.M. : 40 MARK

.
1. Read the following statements carefully -Assertion (A) & Reason (R) and choose the correct 1
alternative.
Assertion (A) : Real GDP is a better indicator of economic growth and welfare of people of the
country than Nominal GDP
Reason (R ) : Real GDP is not affected by changes in general price level. secondly , because
increase in real GDP means more goods and services are available to the society during the
year, thus, the welfare increases.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
for Assertion (A) .
(c) Assertion (A) is true but Reason (R) is false .
(d ) Assertion (A) is false but Reason (R) is true .
Or
A firm produces ₹ 100 worth of goods per year , ₹ 20 is the value of intermediate goods used by
it during the day year and ₹ 10 is the value of capital consumption. The net value added will be
(a) ₹ 100
(b) ₹ 80
(c) ₹ 70
(d) ₹ 130
2. Calculate money multiplier, if legal reserve ratio LRR is 0.4. 1

or
Since banks earn interest from loans they may make any bank would like to land the
maximum possible amount. But there is a limit to money or credit creation by banks and this is
1 | Page
determined by ……
(i) Commercial bank (ii) The central bank (RBI)
(iii) Both (i) and (ii) (iv) None of above
3. The Reserve Bank of India (RBI), cut Repo Rate to 4.4%, the lowest in at least 15 years. Also it 1
reduced the Cash Reserve Ratio(CRR) maintained by banks for the first time in over seven
years. CRR for all banks was cut by 100 basis points to release Rs.1.37 lakh cr. across the
banking system. RBI governor Dr.Shaktikanta Das predicted a big global recession and said
India will not be immune. It all depends how India responds to the situation. Aggregate
demand may weaken and ease core inflation.
Cut in Repo rate by RBI is likely to ……………..the demand for goods and services in the
economy.
(i) Increase (ii) Decrease
( iii) Double (iv) None of these
4. There are two statements given below; Read the statement and choose the correct option. 1
Statement I : APC can be zero.
Statement II : Even at zero income, there has to be a minimum or subsistence level of
consumption expenditure, called autonomous consumption.
(i) Both the statements are true.
(ii) Both the statements are false.
(iii) Statement I is true and Statement II is false
(iv) Statement II is true and Statement I is false
5. Average Propensity to consume can never be ……………… 1
(i) positive (ii) zero
(iii) more than one (iv) less than one
Or
What will be the value of Investment Multiplier if MPS (Marginal propensity to save) is 0.4?
a) 1
b) 2
c) 2.5
d) 3
6. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
Assertion (A): Deficient Demand leads to underemployment equilibrium.
Reason (R): During deficient demand, equilibrium is determined at a level of full-employment

equilibrium.
Alternatives:
a) Both Assertion and Reason are true and Reason (R) is the correct
explanation of Assertion (A)
b) Both Assertion and Reason are true and Reason (R) is not the correct
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
7. C= 100+0.75y, saving function will be .............. 1

(i) S= -100+0.75Y
(ii) S= 100-0.25Y
2 | Page
(iii) S= -100+0.25Y
(iv) S= 100+0.25Y
8. A company located in India receives a loan from a company located abroad. How is this 1
transaction recorded in India’s Balance of payments account.
9 Equilibrium in Balance of Payment is achieved when the net value of all the receipts and 1
payments is …………….
(i) Zero (ii) Positive
(iii) Negative (iv) Equal
Or
FDI (Foreign Direct investment) comes under ___________Account of BOP. )(Current/Capital)
10 In its time of financial crisis, Pakistan approached IMF for a loan to raise imports and to clear 1
old debts. As an Economics student, you will record this as ................ side in the_______
Account of BOP.
(Fill up the blanks with correct alternative)
(i) credit, capital (ii) debit, capital (iii) credit, current (iv) debit, current
11. Which among the following are final goods and which are intermediate goods? Give reasons 3
also.
(i) Milk purchased by tea stall.
(ii) Bus purchased by a school.
(iii) Juice purchased by a student from the school canteen.
12. How is the exchange rate determined under a flexible exchange rate regime? 3
OR
Distinguish between current account and capital account of the balance of payments on the
basis of its components.
13. Explain the ‘lender of last resort’ function of the central bank. 4
OR
Explain in brief the Credit creation by commercial bank with the help of numerical example?
14. What is meant by the excess demand ? Show it on a diagram. Explain three measures to 4
reduce this gap.
15. In an economy, C=100+0.8Y is the consumption function, where C is consumption 4

expenditure and Y is National Income. If investment expenditure is 1,300.
(i) Calculate equilibrium level of National Income.
(ii)Calculate additional investment needed to reach the new equilibrium level of income 8,500.
3 | Page
16 Calculate from the following data, Net National Product at Market Price by 6
(a) Income Method and (b) Expenditure Method
S.N. Particulars Rs. in crore
(i) Compensation of Employees 1180
(ii) Mixed income of self employed 820
(iii) Gross fixed capital formation 400
(iv) Consumption of fixed capital 20
(v) Employers’ contribution to social security scheme 110
(vi) Operating surplus 9500
(vii) Net capital formation 420
(viii) Exports 20
(ix) Imports 50
(x) Indirect taxes 150
(xi) Subsidies 30
(xii) Private final consumption expenditure 2,200
(xiii) Government final consumption expenditure 610
(xiv) Purchase by non-residential households in the domestic market 60
(xv) Net factor income to abroad 100
17 Categorise the following into revenue expenditure and capital expenditure. Give reasons. 6
(i) Investment in shares
(ii) Subsidies
(iii) Construction of school building
(iv) Defence services expenditure
(v) Repayment of loan with interest
(vi) Grants to state governments for creation of assets
OR
(i) “Fiscal deficit indicates the total borrowing requirements of the government from all
sources.” Elucidate.
(ii) “A large fiscal deficit leads to a higher revenue deficit in future.” Do you agree with the
statement? Give reasons in support of your answer.
Q.No SECTION: B INDIAN ECONOMIC DEVELOPMENT M.M. : 40 MARK

.
18 Read the following statements relating to the industrial sector during British rule and choose 1
the correct sequence of these statements.
(i) Cheap imports of British manufactured goods increased in the country.
(ii) The growth rate of the Industrial sector was very low.
(iii) India was reduced to be a mere exporter of raw material.
(iv) India faced shortage of locally made goods.
Alternatives :
(i) (i),(ii),(iii),(iv) (ii) (iv),(iii),(ii),(i)
(iii) (iii),(iv),(ii),(i) (iv) (iii),(iv),(i),(ii)
4 | Page
19 Write the correct sequence of alternatives given in Column II by matching them with 1
respective terms in Column I ;
Column I Column II
A. Growth (i) Adoption of new technology to
increase the production of goods
and services.
B. Modernisation (ii) Avoiding imports of those goods
which could be produced in India
itself.
C. Self-reliance (iii) Every Indian should be able to
meet his/her basic needs such as
food,a decent house,education
and health,and inequality in the
distribution of wealth should be
reduced.
D. Equity (iv) Increase in the country’s capacity
to produce the output of goods
and services within the country.
(i) (i),(iii),(ii),(iv) (ii) (iv),(iii),(ii),(i)

(iii) (iv),(i),(ii),(iii) (iv) (ii),(iv),(iii),(i)
20 _____________is not a cause for environmental degradation. 1
i) Waste management
ii) Deforestation
iii) Global warming
iv) Guarding green cover
OR
______ is not the strategy for Sustainable Development. (Choose the correct alternative)
i) Use of bio-gas
ii) Use of solar power
iii) Use of thermal power
iv) Use of hydel power
Read the following carefully and answer questions no.21-22 on the basis of the same:
The draft National Education Policy 2019 states that “India aspires to take its place beside the
United States and China as the third largest economy by 2030-2032…. India is the sixth largest
economy now and we will reach five trillion in five-seven years taking us to fourth or fifth
position. Then the economy will not be driven by natural resources, but by knowledge
resources. Are we ready to take our place besides the USA and China as the top three largest
economies of the world and be confident of sustaining it in the following years? To do this, we
will need a knowledge based society based on a robust education system, with all the
requisite attributes and characteristics in the context of changes in knowledge demands,
technologies, and the way in which society lives and works.” This policy vision suggests how
human capital formation in India will move its economy to higher growth trajectory.
21 How is government expenditure on education expressed? 1

(i) As % of total government expenditure (ii) As % of Gross Domestic Product (GDP)
(iii) Both (i) and (ii) (iv) None of these
22 By 2030-2032 we will be the third largest economy at over …………. Trillion. 1
(i) Five (ii) Six
5 | Page
(iii) Three (iv) Ten
23 Name the apex institution for rural financing in India. 1
(i) SIDBI (ii) IDBI
(iii) NABARD (iv) None of these
OR
Which of the following is a major source of Human Capital Formation in the country ?
(i) Expenditure on education (ii) Expenditure on subsidy
(iii) Expenditure on defence (iv) Expenditure on fertilisers
24. Arrange the following events of China in chronological order and choose the correct 1
alternative;
(i) Great Proletarian Cultural Revolution (ii) Great Leap Forward campaign
(iii) Introduction of Economic Reforms (iv) First five year plan
Choose the correct alternative;
(i) (ii),(iv),(iii),(i) (ii) (iv),(ii),(i),(iii)
(iii) (ii),(iv),(i),(iii) (iv) (iv),(i),(ii),(iii)
25. Read the following statements carefully and choose the correct alternative: 1
Statement-I: while India and Pakistan became independent nations in 1947, People’s Republic
of China was established in 1949.
Statement-II: while India announced its first Five Year Plan in 1951, Pakistan announced its
first five year plan, now called the Medium Term Development Plan, in 1953. China
announced its First Five Year Plan in 1956.
(d) Statement-II is true, Statement-I is false.
26 Which of the following countries has the lowest density of population? 1
(i) China (ii) India
(iii) Pakistan (iv) None of these
27. Which of the following countries adopted ‘One Child Policy’ as a measure to control 1
population?
(i) Pakistan (ii) India
(iii) China (iv) None of these
Read the following carefully and answer the questions given below on the basis of the same:
An important lesson that the COVID-19 pandemic has taught the policymakers in India is to
provide greater impetus to sectors that make better allocation of resources and reduce
income inequalities. COVID-19 has also taught a lesson that in crisis the population returns to
rely on the farm sector. India has a large arable land, but the farm sector has its own
structural problems. However, directly or indirectly, 50 percent of the households still depend
on the farm sector. Greater support to MSMEs, higher public expenditure on health and
education and making the labour force a formal employee in the economy are some of the
milestones that the nation has to achieve.
One of the imminent reforms to be done in the country is labour reforms. Labour laws are
outmoded in India, and some of these date back to the last century. India’s complex labour
laws have been blamed for keeping manufacturing businesses small and hindering job
creation. Industry hires labour informally because of complex laws and that is responsible for
low wages.
“It is necessary to create employment in the formal sector rather than in the informal sector.’’
6 | Page
28. Defend or refute the given statement with valid argument. 3
29. (i) Raj is going to school. When he is not in school, you will find him working in his farm. Can 3
you consider him as a worker? Why
(ii) Meena is a housewife. Besides taking care of Household chores, she works in the cloth
shop which is owned and operated by her husband. Can she be considered as a worker? Why?
(iii) Victor is able to get work only for two hours in a day. Rest of the day, he is looking for
work. Is he unemployed? Why? What kind of jobs could persons like Victor be doing ?
Or
What are the different causes of unemployment?
30. Discuss briefly any two major steps taken by the government of India on “Financial Sector 4
Front” under the Economic Reforms of 1991.
OR
Explain briefly how Goods and Services Tax (GST) has simplified the multiplicity of taxes on
goods and services.
31 What is organic farming and how does it promote sustainable development? 4
32 What are the areas where India has an edge over Pakistan? 4
33 How far has Indian Economic Planning been successful in achieving its objectives during 6
1951-90? Briefly assess the achievements and failures of planning in India during this period.
34 “Human Capital Formation gives birth to innovation and technological improvements.” Do 6
you agree with the given statement? Support your answer with valid arguments.
OR
‘In recent times the Indian Economy has experienced the problem of Casualization of the
workforce. This problem has only been aggravated by the outbreak of COVID-19.’ Do you
agree with the given statement? Discuss any two disadvantages of casualization of the
workforce in the light of the above statement.
7 | Page
SAMPLE PAPER SET-4
TIME: 3 HOURS MM:80
● Questions No. 1-10 and 18-27 are MCQ or objective type questions carrying 1 mark
each. They are required to be answered in one sentence each.
● Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each.
Answers to them should normally not exceed 60 words each.
● Answers should be brief and to the point and the above word –limits should be adhered
to as far as possible
Q. No. SECTION A –MACRO ECONOMICS MARKS
1 1
Read the following statements Assertion (A) and Reason (R).Choose one of
the correct alternatives given below
Assertion (A) During deflationary gap, actual aggregate demand is more than
potential aggregate demand to maintain full employment.
Reason (R) Recession in an economy leads to fall in demand as compared with

supply.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason 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
1
(d) Assertion (A) is false, but Reason (R) is true
2 1
------------------ (Current/Capital) account of BOP records transactions
impacting assets and liabilities of the country.
Or
Increase in demand of foreign currency in flexible exchange rate is
a) Appreciate of domestic currency
b) Depreciate in domestic currency
c) Revaluation of domestic currency
d) Devaluation of domestic currency
3 1
Read the following statements Assertion (A) and Reason (R). Choose one of
the correct alternatives given below:
Assertion (A) Currency held by public is a monetary liability of central

bank.
Reason (R) Central bank controls credit, whereas commercial banks

creates credit with the currency held by public.
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
4 Read the following statements Assertion (A) and Reason (R). Choose one of 1
Assertion (A) A country always tries to balance the BOP, i.e. balance in
current account equals to balance in capital account.
Reason (R) Balance BOP indicates stable economic relation with rest of
the world.
Alternatives :
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
2
5 If gross value added at market price is ₹350 crore, change in stock is (-) ₹ 1
50 crore and intermediate consumption ₹ 200 crore, find the total
amount of sales.
(a) ₹ 200 crore (b) ₹ 250 crore
(c) ₹ 600 crore (d) ₹ 500 crore
6 If income increases from 2,500 to 3900 and autonomous investment by 350, 1

the MPC should be:
(a) 0.9 (b) 0.8
(c ) 0.75 (d)0.6
Or
If the income is Rs 400 cr and consumption is Rs 250 cr , what will be the APC?
a) .67
b) .63
c) .60
d) .58
7 Dear money policy of central bank, which is used to keep the growth steady 1
and in-line with other economic factors, refers to:
(a) Tighten the money supply in the economy
(b) Ease the money supply in the economy
(c) Allow commercial banks to work under less strict environment
(d) Both (b) and (c)
8 Write the correct pair : 1

Column -1 Column--2
A. Nominal exchange rate I ) It is the price of one unit of
foreign currency in terms of
domestic currency
B . Real exchange rate (2) It is the exchange rate which
does not account for changes in
price level
C Nominal effective exchange rate (3) It is the ratio of foreign to
domestic prices, measured in same
currency
D Flexible exchange rate (4) It is the rate determined by the
government of the country
Codes (a) A-(i) (b) B—(ii) (c) C-(iii) (d) D-(iv)
OR
3
Column 1 Column II
A. Visible items (1) Items consisting of capital

receipts and capital payments
B . invisible items (2) All types of physical goods
C .Capital transfers (3) All types of services
Write the correct sequence of options in Column II by matching them will

options of column Column 1
Codes
A B C
(a) (i) (ii) (iii)
(b) (ii) (iii) (i)
(c) (iii) (ii) (i)
(d) (i) (iii) (ii)
9 Read the following statements Assertion (A) and Reason (R). Choose one 1
of the correct alternatives given below
Assertion (A) In a economy, if consumption expenditure is high,
investment multiplier will be low.
Reason (R) The velocity by which money change hands, determines the
growth of an economy
Alternatives
10 Read the following statements Assertion (A) and Reason (R). Choose one of
Assertion (A) Higher income groups has lower propensity to consume,as
compared with lower income group. 1
Reason (R) Consumption expenditure can never be zero even when a
person doesn’t have any income.
Alternatives
4
(e) Both Assertion (A) and Reason (R) are true and Reason (R) is the
(f) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
(g) Assertion (A) is true, but Reason (R) is false
(h) Assertion (A) is false, but Reason (R) is true
11 Suppose the Gross Domestic Product (GDP) of Nation X was Rs.2,000 crore in 3
2018-2019, whereas the Gross Domestic Product of Nation Y in the same
year was Rs.1,20,2000crore. If the Gross Domestic Product of Nation X rises
to Rs. 4,000 crore in 2019-20 and the Gross Domestic Product of Nation Y
rises to Rs.2,00,000 crore in 2019-20. Compare the rate of change of GDP of
Nations X and Y, taking 2018-19 as base year.
12 Distinguish between current account and capital account of Balance of 3
Payments.
OR
“ Depreciation is different from devaluation .” Discuss.
13 In an economy , investment increases by Rs. 100 crore . As a result , income 4
increases by Rs. 250 crore . What is the value of multiplier? What does this
imply ? On the basis of the multiplier calculated, find out the change in
income , if investment changes by Rs. 750 crore.
14 Explain how do ‘open market operations’ and ‘bank rate' by Central Bank 4
affect money creation by commercial banks.
15 . 4
Anthony and Ajay were having a conversation on the topic of “money
supply”. Anthony was of the view that since money supply consists of
supply, it is a flow concept, whereas Ajay was of the view that it is a stock
concept. In your view, which of the two is correct? Why ? Also explain the
concept of money supply
Or
Explain the following functions of the Central Bank.
(i) Bank of issue
(ii) Custodian of foreign exchange reserves
16 a) ‘ Real Gross Domestic Product is a better indicator of economic 3

growth than Nominal Gross Domestic Product .’ Do you agree with
the statement? Support your answer with a suitable example.
b) State and discuss any two precautions to be considered while 3
estimating national income by Income Method.
Or
a) Circular flow of income in two sector economy is based on the axiom
that one’s expenditure is other’s income.
5
Do you agree with the given statement ? support your answer with valid
reasons.
b) Explain Externalities as a limitation of welfare?
a) ‘ Mission Develop India’ is the plan of government to create basic

17 infrastructure. It comprises of projects on irrigation, irrigation ,roads , 3+3
housing ,water supply and telecommunication connectivity. Above stated
examples is a government expenditure or government revenue.
Elaborate it . Also ,state the impact of this programme on rural growth.
b) Distinguish between revenue expenditure and capital receipts of the
government , with suitable examples.
SECTION B—INDIAN ECONOMIC DEVELOPMENT

18 Which of the following is correct about the planning in India? 1
(a) Mixed economy has been the framework of planning in India
(b) The duration of the Twelfth Five Year Plan was 2012-17
(c) Planning in India started with a heavy reliance on the public sector
(d) All of these
19 In the context of Indian experience , controls were imposed by the 1
government with a view to :
(a) Checking of growth of private monopiles
(b) Minimizing the hold of large industrial houses on the financial
resources of the country
(c) Both (a) and (b)
(d) None of these
OR
Inward looking trade strategy relies on-------------------
(Fill in the blank with the correct alternative)
a) Export promotion
b) Import substitution
c) Export liberalization
d) Import restriction
20 State any one area in which Pakistan has an edge over India 1
(a)Pakistan has achieved better result with regard to migration of workforce
from agriculture to industry
(b) Pakistan ranks high in human development index
(c)Pakistan has low death rate
(d)none of the above
21 1
…………. unemployment is caused when more workers are engaged in a work
than are actually required.
Or
Read the following statements carefully and choose the correct alternative:
6
Statement-I: Human capital is not sold in the market; only the services of the
human capital are sold.
Statement-II: Human capital is perfectly mobile between countries.
(d) Statement-II is true, statement -I is false.
22 Read the following Statements-Assertion (A) and Reason (R), and select the 1
correct alternative:
Assertion (A): The Great Leap Forward (GLF) campaign initiated in 1958 met
with many problems.
Reason (R): A severe drought caused havoc in China killing about 30 Million
people. When Russia had conflicts with China, it withdrew its professionals
who had earlier been sent to China to help in the industrialization process.
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the
Assertion (A) Lack of training in farming activity leads to low productivity and
growth of agriculture in India .
Reason (R) Reforms in India focused upon development of industries , which

was failed to generate enough employment .
Assertion (A) .In 1970s, there was low population growth in China.
Reason (R). China introduced the one – child norm in late 1970s,
7
(e) Both Assertion (A) and Reason (R) are true and Reason (R) is the
(f) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
(g) Assertion (A) is true, but Reason (R) is false
(h) Assertion (A) is false, but Reason (R) is true
25 Environment is defined as they totality of all biotic and abiotic resources . 1

state whether it is true or false.
OR
Out of the following, which is not the function of environment ?
(a) It supplies resources
(b) It assimilates waste
(c) It sustains life by providing non-genetic and non -biodiversity
(d) It provides aesthetic services like scenery.
26 Out of the following , what are the correct reasons of high opportunity cost 1
of negative environmental impact.
(1) Spending huge amounts on technology and research to explore
alternative resources.
(2) Health costs of degraded environmental quality
(3)Global warming
(4) Ozone depletion
(5) Industrial revolution
(a) 1,2,3,4
(b) Both 1 and 2
(c) 3,4,5
(d) All of these
27 Read the following statements Assertion (A) and Reason (R). Choose one 1
of the correct alternatives given below
Assertion (A) China has done better than India and Pakistan, as it is a
socialist economy.
Reason (R) In socialism, government can implement policies which are in
best interest of people.
(i) Both Assertion (A) and Reason (R) are true and Reason (R) is the
(j) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
(k) Assertion (A) is true, but Reason (R) is false
(l) Assertion (A) is false, but Reason (R) is true
8
28 Is it necessary to generate employment in the formal sector rather than in the 3
informal sector ? Why?
29 Give any three drawbacks of using Monthly Per Capita Expenditure as a 3
measurement of poverty.
OR
Mention some obstacles that hinder the mechanism of agricultural
marketing and create a need for the government to interfere in this sector.
30 Compare and analyse the given data of India and China, with valid reasons. 4
Country Annual growth rate of Gender Ratio (Per

Population thousand males)
(2015)
India 1.2% 929
China 0.5% 941
31 Explain the need and type of land reforms implemented in the agriculture 4
sector.
OR
How does industries help to strength the economy of a country?
32 State whether the following statements are true/ false , with valid arguments
:
(a) India is going to become a knowledge based economy in future. 2
(b) Inputs required in the production process are referred to as physical 2
capital
33 (a) Explain the role of micro-credit in meeting credit requirements of the 3
poor. 3
(b) Enlist any three problems faced by farmers faced by farmers in the
initial years of organic farming.
OR 3
(a) What programme has the government adopted to help the elderly
people ,poor and destitute women.
(b) Why do we observe regional differences in educational attainment in 3
India?
34 Read the following text carefully and answer the given question on the basis
of same and common understanding:
The performance of Indian economy during the period of first five year plans
(1950-1990) was satisfactory if not 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 the protection of the domestic industries against the
9
foreign producers but we failed to promote a strong export surplus .Although
public sector expanded to a large extent but it could not bring 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
industrial sector. Many Public Sector Undertaking (PSU’s) incurred huge
losses due to operational inefficiency, red tapism , poor technology and
similar other reasons. These PSU’s continued to function because it was
difficult to close a government undertaking even it is a drain on country’s 3
limited resources . 3
(a) Discuss the role of PSU’Ss in the economic development of the
country.
(b) Trace the growth of industrial sector during the period 1950-1990.
10
SAMPLE PAPER SET-5
TIME: 3 HOURS MM:80
● Answers should be brief and to the point and the above word –limits should be
adhered to as far as possible
Q.NO SECTION A – MACRO ECONOMICS MAR

. KS
1 Statement 1: Value of MPC ranges between 0 and 1 1
Statement2: APS is negative when C > Y.
2 If the value of Exports = 300, and the Balance of Trade = -200, what will be the 1
value of Imports:
a) 300
b) 500
c) 200
d) 100
3 If LRR = 0.25, the value of money multiplier will be _______ 1
a) 2
b) 5
c) 7
d) 4
4 Another name of Flexible exchange rate system is 1

a) Pegged Exchange rate System
b) Managed Floating system
c) Floating exchange rate system
d) None of these
OR
Depreciation of domestic currency encourages:
a) Exports
b) Imports
c) Foreign Trade
d) All of these
5 Which among the following will not be included while calculation of National 1
Income
a) Imputed rent of owner occupied houses
b) Goods produced for self consumption
c) Income from the sale of second hand goods
d) Construction of new house.
OR
Which of the following statement is correct
a) GNPMP will be greater than GDPMP when NFIA will be zero
b) GNPMP will be greater than GDPMP when NIT will be zero
c) GNPMP will be greater than GDPMP when NFIA will be more than zero
d) GNPMP will be greater than GDPMP when NFIA will be less than zero
6 Break- even point is a situation when 1
a) Consumption= National Income
b) Saving = Investment
c) Consumption = Saving
d) Aggregate Demand = Aggregate Supply
7 Assertion (A): Lower the LRR, higher will be the credit creation; higher the LRR, 1
lower will be the credit creation.
Reason(R): Money Multiplier is a multiple by which total deposits increased
due to primary deposits. It shows the amount by which the initial deposit
multiplies to form final deposits.
Select from the alternatives given below
a) Both Assertion (A) and Reason(R) are true and Reason(R) is the correct
b) Both Assertion (A) and Reason(R) are true but Reason(R) is not the
c) Assertion (A) is true but Reason(R) is false.
d) Reason(R) is true but Assertion (A) is false
8 Above the line items in the balance of payments are also called 1
a) Accommodating items
b) Autonomous items
c) Credit side items
d) Debit side items
OR
Below the line items in Balance of Payments are called
a) Negative items
b) Positive items
c) Accommodating items
d) Autonomous items
9 Which of the following is not correctly matched 1
a) Fiscal Policy – public expenditure
b) Excess Demand - Over full employment of resources
c) LRR- CRR, SLR
d) Deficient Demand – Rise in employment and output level
10 Deflationary gap arises when : 1
a) Actual AD> Required AD
b) Actual AD< Required AD
c) Actual AD= Required AD
d) None of these.
11 Defend or refute the statement ‘GDP as good Index of Economic welfare’? 3
12 Distinguish between Balance of Trade and Balance of Payment? 3
OR
State with reason whether the following will be recorded on the credit or debit
side of Balance of Payment:
i) Repayment of Loan taken from IMF 1
ii) Loan from ADB to finance deficit of BOP 1
iii) Export of Tea to UAE 1
13 If saving Function is S = - 100 + 0.30Y and Equilibrium Income (Y) = 600 crore.
Find the following:
i) Autonomous consumption 1
ii) Investment 1
iii) MPC 1
iv) Multiplier 1
14 Explain the process of adjustment with the help of AD-AS approach 4
i) When AD >AS
ii) When AD < AS
15 Explain the impact of increase in LRR on credit creation by using an imaginary 4
example?
OR
The MPC noted that inflation is projected to remain above the upper tolerance
level of 6 per cent through the first three quarters of 2022-23. Accordingly, the
MPC decided to increase the policy repo rate by 50 basis points to 5.40 per
cent. Money supply (M3) by 7.9 percent as on July 15, 2022.
On the basis of above , answer the following in brief
i) How central bank controls inflation with the help of repo rate?
ii) What is money supply?
16 From the following data, Calculate a) Value of Output b) NVAFC 6
S No. Particulars Rs In crores
i) Operating Surplus 40
ii) Excise duty 55
iii) Sales Tax 80
Iv) Sales 440
v) Consumption of fixed capital 120
vi) Opening Stock 50
vii) Subsidies 40
viii) Closing Stock 35
ix) Intermediate consumption 20
OR
Briefly explain the precautions to be taken while calculating national income 3
by expenditure method.
Explain the ways through which double counting can be avoided in calculation 3
of National Income?
17 Answer the following:

i) What is fiscal deficit? Explain the implications of Fiscal Deficit. 3
ii) Distinguish between Revenue Expenditure and Capital Expenditure 3
by stating examples of each?
SECTION B
INDIAN ECONOMIC DEVELOPMENT
18 Which of the following is true regarding Volume and Direction of India’s 1
Foreign Trade at the time of Independence
a) More than Half of India’s Foreign trade was restricted to Britian
b) More than Half of the India’s trade was with countries like China,
Ceylon and Persia
c) Half of India’s Trade was with USA
d) India had maximum trade with middle east countries.
19 Assertion (A): Financial sector was given autonomy to take decision in many 1
areas without consulting RBI after economic reforms.
Reason (R): Under economic reforms, role of RBI was to facilitate the financial
sector rather to regulate.
Choose one of the correct alternatives given below:
20 Identify the correct chronological order of the following:
i) Great Leap Forward campaign
ii) First five year plan of India
iii) Great Proletarian Cultural Revolution
iv) Reforms in India
Choose the correct answer
a) ii,i,iii,iv
b) i,ii,iv,iii
c) i,ii,iii,iv
d) iii,i,iv,iii
OR
Great Leap Forward campaign was launched by china in
a) 1956
b) 1958
c) 1968
d) 1957
21 Unemployed people are calculated as

a) Workforce – Labour Force
b) Labour Force – Work Force
c) Labour Force + Work Force
d) None of these.
22 Commune System started by China was related with which sector

a) Industry
b) Service
c) Agriculture
d) None of these
23 Assertion (A): Diversification of agricultural production by farmers means
shifting from single cropping to multiple cropping.
Reason (R): Diversification helps farmers in sustainable increase in income.
Reason(R) is true but Assertion (A) is false
24 Which of the following countries are the member of group SAARC
a) India
b) China
c) Pakistan
d) All of the above
25 Statement 1: UGC and NCERT regulates the education sector in India 1
Statement2: ICMR Regulates the medical sector in India
OR
Statement 1: The skill India program as launched by the government of India
in order to increase human capital formation.
Statement2: Human capital formation refers to stock of skill and expertise of
a nation at a point of time.
26 Two Major issues which the world is facing are: 1
a) Global Warming and Ozone depletion
b) Poverty
c) Inequality
d) Sustainable Development.
OR
Which of the following is not the function of Environment
a) Assimilates Waste
b) Provides Scenic Beauty
c) Sustains life
d) Generates wealth
27 Which of the following has maximum contribution in India’s GDP 1
a) Service Sector
b) Primary Sector
c) Manufacturing
d) Agriculture
28 Write the factors which contributes to Human Capital Formation. 3
Or
What is the role of human capital formation in economic growth?
29 What is organic farming and how does it promote sustainable development 3
30 Compare and analyse the following information related to sectoral share of 4
employment and GDP of the three neighbouring nations:
31 a) What is Outsourcing? 1
b) Why green revolution was implemented and how did it benefit the 3
farmers ?
OR 4
Discuss economic reforms in India in the light of social justice and welfare?
32 Is it necessary to generate employment in the formal sector rather than in the 4
informal sector? Why ?
33 Explain the following in brief
i) What is jobless growth? 2
ii) What do you mean by informalisation of workforce? 2
iii) Define Worker- Population Ratio? 2
OR
i) What are the functions of the environment? 3
ii) Explain role of non –farm employment in promoting rural 3
diversificaiton
34 Case Based Question
The GDP is the market value of all the goods and services produced in the
country during a year. You can think of the GDP as a cake and growth is
increase in the size of the cake. If the cake is larger, more people can enjoy it.
The GDP of a country is derived from the different sectors of the economy,
namely the agricultural sector, the industrial sector and the service sector. The
contribution made by each of these sectors makes up the structural
composition of the economy. A country can have high growth; the most
modern technology developed in the country itself, and also have most of its
people living in poverty. It is important to ensure that the benefits of
economic prosperity reach the poor sections as well instead of being enjoyed
only by the rich. So, in addition to growth, modernisation and self-reliance,
equity is also important. Every Indian should be able to meet his or her basic
needs such as food, a decent house, education and health care and inequality
in the distribution of wealth should be reduced. Modernisation does not refer
only to the use of new technology but also to changes in social outlook such as
the recognition that women should have the same rights as men. In a
traditional society, women are supposed to remain at home while men work.
A modern society makes use of the talents of women in the work place — in
banks, factories, schools etc. — and such a society in most occassions is also
prosperous.
Based on the above, answer the following questions: 2
i) Describe in brief Structural composition of economy 2
ii) In addition to growth, modernization and self-reliance, why equity
is important? 2
iii) What do you understand by ‘Modernization’ as objective of
planning
SAMPLE PAPER SET-6
TIME: 3 HOURS MM:80
Q.NO SECTION A – MACRO ECONOMICS MARKS

.
1 The value of Multiplier varies 1
a) Proportionate to MPC
b) Directly with the size of MPC
c) Inversely with the size of MPC
d) Fast in comparison to MPC
2 Assertion(A): Exports of textile will have unfavourable impact on balance of 1
payments in India
Reason (R): Exports of goods are recorded on the credit side of Current
Account as it leads to Inflow of foreign exchange in India
3 To increase credit in the economy, Central bank may 1
a) Decrease repo rate
b) Increase bank rate
c) Sell securities in the open market
d) Increase reverse repo rate
OR
Repo rate relates to:
a) Short term borrowing by the commercial banks
b) Long term borrowing by the commercial banks
c) Overnight borrowing by the commercial banks
4 Statement 1: Depreciation of domestic currency leads to rise in exports 1

Statement2: Devaluation of domestic currency leads to fall in exports
5 Assertion(A): Real GDP in not a better indicator of Growth. 1
Reason (R): Real GDP does not affected by changes in general price level.
6 If MPC is 0.40, Change in income is 100, Change in consumption will be 1
a) 40
b) 50
c) 80
d) 72
7 Which of the following are included in Money Supply 1
a) Currency
b) Demand Deposits
c) Time deposits
d) Both a and b
8 Which of the following items are taken to bring equilibrium in balance of 1
payment
a) Autonomous items
b) Accommodating items
c) Visible items
d) Invisible items
Or
Which of the following is not being including in BOP account:
a) Visible transactions between residence and rest of the world
b) Invisible transactions between people of two states
c) Visible transactions between India and USA
d) Unilateral transactions between India and world bank
9 Which of the following is not a monetary measure to control excess demand in 1
the economy
a) Repo rate
b) Bank rate
c) Taxation
d) Margin requirement
10 If AD is more than AS at full employment level, the situation is called 1
a) Excess demand
b) Deficient demand
c) Deflationary gap
d) Underemployment equilibrium
OR
Deflationary gap is a situation
a) When AD > AS corresponding to full employment level of output
b) When AD < AS corresponding to full employment level of output
c) When AD = AS corresponding to full employment level of output
d) When AD > AS corresponding to under employment level of output
11 Distinguish between Stock and Flow 3
12 Write in brief credit and debit items of current account of balance of payments 3
OR
Differentiate between Fixed exchange rate and Flexible exchange rate
13 Explain working of Investment Multiplier with the help of numerical example 4
14 Explain determination of equilibrium income with the help of saving and 4

investment curves.
15 Demonetisation was a new initiative taken by the Government of India in
November 2016 to tackle the problem of corruption, black money, terrorism
and circulation of fake currency in the economy. This move has had positive
impact . It improved tax compliance as a large number of people were bought
in the tax ambit. The savings of an individual were channelised into the formal
financial system. As a result, banks have more resources at their disposal
which can be used to provide more loans at lower interest rates. It is a
demonstration of State’s decision to put a curb on black money, showing that
tax evasion will no longer be tolerated. Households and firms have begun to
shift from cash to electronic payment technologies
i) What is demonetization 1
ii) What was the impact of demonetization 2
iii) Whether demonetization has led to increase in digital payments 1
16 Calculate from the following data
i) GDP at Factor Cost 3
ii) National Income 3
Particulars ₹ (in crores)
i Rent, interest and profit 410
ii Subsidies 60
iii NFIA 150
iv Indirect taxes 80
v Depreciation 40
vi Mixed income of self employed 210
vii Compensation of Employees 550
OR
i) Difference between Real GDP and Nominal GDP 3
ii) Write the names of different components of final expenditure 3
17 i) What are the objectives of government budget 3
ii) Differentiate between revenue receipts and capital receipts 3
SECTION B
INDIAN ECONOMIC DEVELOPMENT
18 Assertion (A): Green Revolution was successful in Madya Pradesh and 1
Rajasthan.
Reason (R): Major limitation of spread of Green revolution in India was its
uneven spread.
a) Both Assertion (A) and Reason(R) are true and Reason(R) is the
OR
Economic reforms in India was adopted on _____________.
a) July 1991
b) June 1991
c) May 1991
d) April 1991
19 What were the reasons behind the introduction of Reforms in 1991 1
1. Rising prices
2. BOP crisis
3. Fiscal Deficit
4. War in middle east countries
Chose the correct option
a) 1,2 and 3
b) 2,3 and 4
c) 1 and 2
d) All of these
Or
Which of the following is not a economic reforms measure.
a) GST
b) Disinvestment
c) Introduction of new technology
d) Reduction in tariff rates
20 Identify the correct statement in context of Pakistan
a) Overdependance on remittances
b) Sixth largest in Population
c) Political Instability
d) All of the above
21 Statement 1: NABARD is apex body under rural credit system
Statement 2: NABARD Provides financial assistance for farm as well as non-
farm activities.
22 Choose the correct chronological alternative
i) Commune system in China
ii) Economic reforms in Pakistan
iii) Economic reforms in India
iv) One child policy
Alternatives:
a) i, iv, ii, iii
b) iv,i,ii,iii
c) ii, ii, iv, i
d) iv,i,ii,ii
23 The Education Commission (1964-66) recommended ________percent of GDP
should be spent on Education.
a) 6
b) 2
c) 4
d) 9
OR
Curative medicine means
a) Spread of health literacy
b) Expenditure on vaccine
c) Medical intervention during illness
d) All of the above
24 Which sector contributes more to the GDP of China
a) Agriculture
b) Manufacturing
c) Services
25 Sansad Adarsh Gram Yojana (SAGY) was introduced in the year 1
a) 2014
b) 2015
c) 2016
d) 2017
26 Government organization that regulates education sector in India are 1
a) UGC
b) NCERT
c) ICMR
d) Both a and b
27 Statement 1: High fertility rate is the feature of Pakistan 1
Statement 2: Pakistan adopted reform in 1988 under the pressure of IMF
28 Outline the steps involved in attaining Sustainable development in India 3
29 Compared to Urban women, more rural women are found working. Why? 3
Or
Distinguish between open and disguised unemployment.
30 Explain in brief
i) Proletarian Cultural Revolution 2
ii) Great Leap Forward Campaign 2
31 i) What is marketable Surplus? 1
ii) Explain in brief importance of import substitution to protect 3
domestic industry
OR 4
Why is it necessary to become member of WTO?
32 i) What do you understand by Casualisation of workforce 1
ii) What measures or steps government have taken to solve the 3
problem of unemployment in India?
33 i) Discuss the main causes of Environmental Degradation? 3
ii) Explain in brief functions of Environment 3
OR
i) What are the sources of rural Credit? 2
ii) What is agricultural marketing? Explain its problems 4
34 The financial sector in India is regulated by the Reserve Bank of India (RBI). You
may be aware that all banks and other financial institutions in India are
regulated through various norms and regulations of the RBI. One of the major
aims of financial sector reforms is to reduce the role of RBI from regulator to
facilitator of financial sector. This means that the financial sector may be
allowed to take decisions on many matters without consulting the RBI. Foreign
investment limit in banks was raised to around 50 per cent. Liberalisation of
trade and investment regime was initiated to increase international
competitiveness of industrial production and also foreign investments and
technology into the economy. The aim was also to promote the efficiency of
local industries and adoption of modern technologies. Since 1991, there has
been a continuous reduction in the taxes on individual incomes as it was felt
that high rates of income tax were an important reason for tax evasion. It is
now widely accepted that moderate rates of income tax encourage savings 2
and voluntary disclosure of income
On the basis of above, answer the following: 2
i) Discuss role of RBI from regulator to facilitator particularly after
reforms? 2
ii) What steps were taken to bring international competitiveness in
domestic industries.
iii) To deal with tax evasion what reforms were made in taxation
system of India.
SAMPLE PAPER SET-7
TIME: 3 HOURS MM:80
● Answers should be brief and to the point and the above word –limits should be adhered
to as far as possible
1 'At higher levels of income people generally have lower Marginal Propensity 1
to Consume (MPC). (True/False)
2 Read the following statements carefully-Assertion (A) and Reason (R) and 1
choose the correct alternative:
Assertion (A) : Imports of crude oil by India will have a favourable impact on
Balance of Payment of India.
Reason (R): Imports of goods are recorded on the debit side of the current
account as it leads to outflow of foreign exchange.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation for Assertion (A).
b. Both Assertion (A) and Reason (R) are true but Reason (R) is not the
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
Assertion (A) : Central bank provides loans to the commercial banks in the
situation of financial distress.
Reason (R): The Central bank can suggest the government to help the bank
facing the financial crisis.
1
4 In 2020, India's purchasing power parity was 22 national currency units 1

(rupees) per US
dollar.
Source: OECD
What does this mean?
A. Goods that can be bought for 1 dollar in the US would require 22 rupees
in India.
B. Goods in India that can be bought for 1 dollar would require 22 dollars in
the US.
C. Goods that can be bought for 1 dollar in the US would require 22 dollars in
India.
D. Goods in India that can be bought for 1 rupee would require 22 dollars in
the US.
5 Which of the following is an example of a public good? 1

A. medicines and injections
B. books and stationary
C. houses and furniture
D. law and order
6 Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to 1

₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000
to ₹ 4,600 crores. Marginal propensity to consume in such case would
be...............
(a) 0.8
(b) 0.4
(c) 0.2
(d) 0.6
Or
When MPS = 1 , then K ( investment multiplier) is :
(a) 1
(b) 0
(c) ∞(infinity)
(d) None of these
7 Which of the following formulae is INCORRECT? 1

A. M1 = currency + net demand deposits
B. M2 = M1 + savings with post office savings banks
C. M3 = M2 + net time deposits of commercial banks
D. M4 = M3 + total deposits with post office savings banks
8 Foreign exchange transactions which are independence of other transaction 1

in the Balance of Payments account are called.
2
a. Current transaction
b. Capital transactions
c. Autonomous transaction
d. Accommodating transaction
Or
A company located in India receives a loan from a company located abroad.
How is this transaction recorded in India’s Balance of payments account.
9 Aggregate Demand Curve Starts: 1

a. From the origin
b. x-axis
c. y-axis
d. None of these
10 Average Propensity to Consumer can never be_______ 1

a. Positive
b. Zero
c. More than one
d. Less than one
Or
If MPC =0.5, calculate investment multiplier.
11 Estimate the value of Nominal Gross Domestic Product (GDP) for a 3

hypothetical economy. The values of Real Gross Domestic Product (GDP) and
Price Index are given as 500 crores and 125 respectively.
12 Distinguish between trade deficit and current account deficit. 3

Or
Distinguish between Autonomous and accommodating transactions in
balance
of payments accounts.
13 Calculate equilibrium level of income for a hypothetical economy, for which 4

it is given that:
(i) Autonomous Investments(I0) = ₹ 500 crores, and
(ii) Consumption Function; C = 100+ 0.8Y
where C = Consumption and Y = Income
14 Explain how government spending can be helpful in removing deficient 4

demand.
or
Justify the following statement, with valid reason.
‘‘Ex-ante Aggregate Demand is always equal to Ex-ante Aggregate
3
Supply.’’
15 Process of Credit Creation by Commercial Bank if Primary Deposit is 1000 4

and CRR is 0.5
16 a. Find GNPFC 4
S. No Items Amount in (₹ in core)
i. Compensation of Employees 12,000
ii. Rent and Interest 1,800
iii. Indirect Taxes 1,120
iv. Profit 1,500
v. Deprecation 1,100
vi. Subsidies 210
vii. Net Factor Income from abroad (-) 120
viii. Mixed Income for self employed 1,300
b. Distinguish between ‘Value of Output’ and ‘Value Addition’

2
Or
(a) Discuss briefly the three components of ‘Income from Property
and
Entrepreneurship.’
(b) What are ’externalities’? State its types with suitable examples.
17 a. “A large fiscal deficit leads to a higher revenue deficit in future.” Do 4

you agree with the statement? Give reason in support of your
answer.
b. Suppose you are a member of the “Advisory Committee to the 2
Finance Minister of India”. The finance minister is concerned about
the rising Revenue Deficit in the budget. Suggest any two measures
to control the rising Revenue Deficit in the budget.
Indian Economy
Assertion (A) : India could not develop a sound industrial base during the
British rule.
Reason (R): Britishers followed restrictive trade policies, which led to the rise
4
of Indian handicraft industries.
19 Read the following statements carefully and choose the correct alternatives: 1
Statement-I: Indian planners gave more importance to the public sector
during the period of 1950-1990.
Statement-II: Under Industrial Policy Resolution, 1956, the public sector was
given a leading role in Industrial development.
a. Both the statement are true
b. Both the statements are false
c. Statement-I is true, Statement-II is false
d. Statement-II is true, Statement-I is false
Or
First Industrial Policy Resolution of Independent India was announced in the
year _______. (Fill in the blank with the correct alternative)
(A)1947 (B) 1948 (C) 1951 (D) 1956
20 Which of the following countries adopted ‘One Child Policy’ as a measure to

control population? 1
a. India
b. China
c. Pakistan
d. Russia
Or
The main aim of ‘Great Leap Forward’ was to ensure rapid increase in
_______ (primary/secondary/tertiary) sector in China. (Choose the correct
alternative)
21 Read the following statements - Assertion (A) and Reason (R) 1

Assertion (A): Sustainable Development is about changes that transform
impoverished people, communities, and countries into
informed, educated, healthy and productive societies.
Reason (R): Sustainable Development advocates about wealth creation that
generates Socio-economic equality and opportunity.
Select the correct alternative from the following:
a) Both Assertion (A) and Reason (R) are true.
b) Both Assertion (A) and Reason (R) are false.
22 State any one reason for slow economic growth and re-emergence of 1
poverty in Pakistan.
5
23 In which of the following type of unemployment, is the marginal productivity 1
of the worker zero? (Choose the correct alternative)
(A) Structural unemployment (B) Involuntary unemployment
(C) Seasonal unemployment (D) Disguised unemployment
24 State the meaning of commune. 1
25 Define Marketable Surplus. 1

Or
Define organic farming.
26 Which of the following source of Human Capital Formation exhibits a high 1

cost of living and transportation
a. Expenditure of Health
b. Expenditure on Education
c. Expenditure on Migration
d. Expenditure on Information
27 The main aim of “Great Leap Forward’ was to ensure rapid increase in 1
________ (Primary/Secondary/Tertiary) sector of China.
28 Define any two of the following: 3

(a) Absorptive capacity of environment
(b) Carrying capacity of environment
29 Casualization of the workforce has become a perennial problem of the 3

Indian Economy.’ Justify the given statement with valid arguments.
Or
‘Human Capital Formation gives birth to innovation, invention and
technological improvements.” Do you agree with the given statement?
Support your answer with valid arguments.
30 Compare and analyse the given data of India and China with valid reasons: 4
Country Annual growth rate of Sex ratio (per thousand
population (2015) males)
India 1.2% 929

China 0.5% 941
Source: World Development Indicators, 2015
31 The policy of liberalisation changed the role of the Reserve Bank of India 4
(RBI) from ‘a regulator’ to ‘a facilitator’ in the financial sector. Defend or
refute the given statement with valid arguments.
Or
State the meaning of import substitution Explain how import
6
substitution can protect the domestic industries.
32 Discuss the role of the rural banking system in the process of rural 4
development in India.
33 a. Define agricultural marketing. 2+2+2

b. Discuss briefly the importance of micro-credit programmes in rural Or
development. 2+4
c. Enlist any two problems faced by farmers in the initial years of
organic farming.
Or
What do you mean by Human Capital Formation? Explain any five
problems of human capital formation.
34 a. Define Quota 2+4

b. “India is often called the ‘outsourcing hub’ of the world.” State and
discuss the prime reasons for this name given to India.
7
SAMPLE PAPER SET-8
TIME: 3 HOURS MM:80
possible
QN SECTION_A Marks
1 Breakeven point occurs when 1

A] Y = S
B] S = 0
C] Y = C
D] both b and c
2 Define trade balance. Read the following statements - Assertion (A) and Reason (R). 1
Assertion (A): Depreciation of domestic currency leads to rise in exports.
Reason (R): Depreciation of domestic currency makes domestic currency relatively

cheaper, which leads to increase in exports.
of Assertion (A).
3 Reserve bank of India established in the year _______. 1
a) 1950
b) 1835
c) 1900
d) 1935
Or
Read the following statements carefully and choose the correct alternative from the
following:
Statement 1 - Central bank is banker to the government.
Statement 2 - Commercial bank accepts deposits and advance loans to the public.
Alternatives:
a) Both the statements are true.

b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false.
e) Statement 2 is true and Statement 1 is false.
4 State whether the given statement is true or false: 1
“Managed floating exchange rate is decided by market forces but remains within a
specific range as decided by central bank “
Or
Define hedging.
5 If real GDP Rs.400 crore and price index is 110, the nominal GDP is……… 1
(a) Rs 250crores (b) Rs 220crores (c) Rs 440crores (d) none of the above
6 In the given figure, what does the gap ‘ao’ represent? 1
a) Autonomous investment (b) Autonomous consumption

(c) Inflationary gap (d) deflationary gap
7 Read the following paragraph and answer Questions 7 on the basis of the same:) 1
Reserve Bank is the only institution which can issue currency. When commercial banks
need more funds in order to be able to create more credit, they may go to market for such
funds or go to the Central Bank. Central bank provides them funds through various
instruments. This role of RBI, that of being ready to lend to banks at all times is another
important function of the central bank, and due to this central bank is said to be the lender
of last resort.
If the RBI increase the bank rate, money supply in the economy will ----------------------
(increase/decrease) (choose the correct alternative)
8 Fill up the blanks with correct alternative 1
An Indian real estate company receives rent from Google in New York. This transaction
would be recorded on……………….side of ……………..account.
a) credit, current
b) credit, capital
c) debit, capital
d) debit, current
9 Aggregate demand can be increased by : 1
(a) Increasing bank rate (c) Selling government securities by RBI
(b) Increasing cash reserve ratio (d) None of the above

Or
Define open market operation.
10 The impact of “Excess Demand” under Keynesian theory of income and employment, in 1
an economy are: (choose the correct alternative)
a. decrease in income, output, employment and general price level
b. decrease in nominal income, but no change in real output
c. increase in income, output, employment and general price level
d. no change in output/employment but increase in general price level
11 How do you treat the following while estimating National Income? Give reasons for your 3
answer.
a) Profit earned by a foreign bank from its branches in India
b) Salaries paid to an Indian who is working in American embassy in India
c) Capital gain
OR
Identify which of the following is stock or flow. Give reasons for your answer.
a) Money Supply
b) Capital formation
c) National Income
12 State, giving valid reasons, whether the following statement are true or false: 3
(a) Current account in balance of payments records only the exports and imports of
goods and services.
(b) Borrowings from abroad are recorded in the capital account of the balance of
payments on the debit side
13 Complete the following table: 4
Income(Y) Consumption(C)
उपभोग MPS APS
0 80 -- --
100 140 0.4 --
200 -- -- 0
300 240 -- 0.20
400 -- 0.8 --
14 Why at equilibrium level of income Aggregate demand must be equal to Aggregate 4

supply? Explain using diagram
15 Explain the process of credit creation by commercial Banks with the help of numerical 4
example? OR
Explain the following functions of Central Bank
a) Bank of Note issue b) Banker’s to the Government
16 Given the following data find the values of “Operating surplus” and “Net Exports”. 6
Sl. No Name of the Item Amount
(Rs in Crores)
1 Wages and Salaries 2400
2 National Income 4200
3 Net Exports ----
4 Factor income from abroad 200
5 Gross domestic Capital formation 1100
6 Mixed Income of Self employed 400
7 Private Final consumption Expenditure 2000
8 Net Indirect Taxes 150
9 Operating surplus ---
10 Government Final consumption Expenditure 1000
11 Depreciation 100
12 Profits 500
17 A] Distinguish between revenue receipts and capital receipts? Give two examples of each. 3+3
B] Distinguish between Direct Taxes and Indirect Taxes.Give two examples of Each
Or
What is the meaning of revenue deficit? What problems does it create?
Section -B
18 Which of the following statement is False? 1

(a) During the British rule 70-75 % of the workforce involved in agricultural sector.
(b) During British rule 10% of the work force involved in manufacturing sector.
(c) The British introduced Railways in 1853.
(d) The life expectancy during colonial rule in India was 64 years.
19 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct 1
Assertion (A): India became an exporter of primary products and an importer of finished
consumer and capital goods produced in Britain.
Reason
(R): Restrictive policies of commodity production, trade and tariff pursued by the colonial
government adversely affected the structure, composition and volume of India’s foreign
trade.
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 and Reason (R) is not the correct
Or
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): The major policy initiatives i.e., land reforms and green revolution helped
India to become self-sufficient in food grains production.
Reason (R): The proportion of people depending on agriculture did not decline as
expected.
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 and Reason (R) is not the correct
20 From the set of events/systems given in column I and corresponding relevant fact given 1
in column II, about China, choose the correct pair of statement:
Column I Column II
A Great Leap Forward i Cultivating land Collectively
B Commune System ii Opening of the Industries in their homes
C Proletarian Cultural revolution iii Students were sent to work and learn from
the countryside
D Economic Reforms in China iv 1988
Alternatives:
a) A - i b) B - ii c) C - iii d) D – iv
21 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
Assertion (A): Dual Pricing policy was initiated in the reforms process of China.
Reason (R): In order to attract foreign investors, special economic zones were setup.
Alternatives:
22 ……………adopted „One Child Policy‟ as a measure to control population. (Choose the 1

correct alternative)
a. India c. Pakistan
b. China d. Russia
23 Read, the following hypothetical Case Study, carefully and answer the question numbers 1
23 on the base of the same.
Since ages, farmers in India have taken recourse to debt. In the earlier times the same
was from informal sources. Since independence with the efforts of the government,
formal sector has actively come into picture. Farmers borrow not only to meet their
investment needs but also to satisfy their personal needs. Uncertainty of income caused
by factors likes crop failure caused by irregular rainfall, reduction in ground water table,
locust/other pest attack etc.
Uncertainty of income for farmers in India is majorly caused by …………….. (irregular

rainfall/unavailability of loans).
24 India entered the …………………………..stage of Demographic Transition after the year 1921. 1
(Choose the correct alternative)
forth b. second c. third d. first
25 The rural banking structure in India consists of a set of multi-agency institutions. 1

……………………… (Regional Rural Banks / Small Industries Development Bank of India) is
expected to dispense credit at cheaper rates for agricultural purposes to farmers.
Or
What are self help groups?
26 ----------- is called the suspended practice. [pollen/ carbon monoxide] 1
Or
Name some green house gases.
Assertion (A): Dual Pricing policy was initiated in the reforms process of China.
Reason (R): In order to attract foreign investors, special economic zones were setup.
Alternatives:
28 Discuss briefly the concept of 'informalisation of workforce', in the context of Indian 3
economy.
29 Agriculture sector appears to be adversely affected by the economic reform process.” 3

Explain the given statement.
Or
If the rate of resource extraction exceeds the rate of regeneration, it leads to reduction
in carrying capacity of the environment.” Discuss the rationale of the given statement
with valid reasons.
30 Compare and analyse the given data of India and China with valid arguments. 4
Annual Growth of Gross Domestic Product (%), 1980-2017
COUNTRY 1980-90 2015-2017
India 5.7 7.3
China 10.3 6.8
Source: Key Indicators for Asia and Pacific 2016, Asian Development Bank, Philippines;
World Development Indicators 2018.
31 “Atamnirbhar Bharat” had been at the roots of the Indian planning process in the form of 4
“self-reliance” as an objective of the planning process.
Do you agree with the given statement?
Justify the rationale of the given statement.
Or
Discuss briefly any two major steps taken by the Government of India on “Financial
Sector” front under the Economic Reforms of 1991
32 A. Why are less women found in regular salaried employment? 4

B. Analyse the recent trends in sectoral distribution of workforce in India: Trends in
Employment Pattern (Sector wise), 1993-2012 (in %)
Sector 1993-94 1999-2000 2011-2012
Primary 64 60.4 24.3
Secondary 16 15.8 24.3
Services 20 23.8 26.8
33 State, giving valid reasons whether the following statements are true or false.
a. Since independence, the benefits of the increase in economic growth in India have
trickled down to the people at the bottom of population pyramid.
3
b. Human Capital Formation gives birth to innovation, invention and technological
improvements. ]
3
34 What is Green Revolution? How did it benefit the farmers? Explain any five points 6
OR
Explain main land reforms introduced by the government after independence in India.
SAMPLE PAPER SET-9
TIME: 3 HOURS MM:80
SECTION A
Q.no. General instructions Mar

● All the questions in each section are compulsory ks
● Questions No. 1-10 and 18-27 are MCQ or objective type questions
carrying 1 marks each. They are required to be answered in one
sentence each.
● Questions No. 11-12 and 28-29 are short-answer questions carrying 3
marks each. Answers to them should normally not exceed 60 words
each.
each.
each.
● Answers should be brief and to the point and the above word –limits
should be adhered to as far as possible
1. Which of the following steps should be taken by central bank to boost demand 1
in the economy during deflationary gap?
a. Decrease tax rate

b. Deficit financing
c. Decrease legal reserve requirements
d. Increase foreign exchange reserves
2. An Indian real estate company receives rent from Google in New York. This 1
transaction would be recorded on _______ side of _________ account.
a. credit, current
b. Credit, capital
c. Debit, capital
d. Debit, current
3. Supply of money refers to_______. 1

a. Currency held by the public.
b. Currency held by RBI.
c. Currency held by the public and demand deposits with commercial
banks.
d. Currency held in the government account.
4. If the supply of foreign exchange increases, demand remaining the same, the 1
exchange rate will fall, implying___________ on domestic currency.
a. appreciation
b. depreciation
c. revaluation
d. devaluation
OR
Which of the following international agency manage foreign exchange rate
system in the world?
a. Central bank
b. IMF
c. World Bank
d. All of these
5. Assertion (A): Goods that are used in the process of production for several 1
years and are of high value are referred to as capital goods.
Reason (R): Yarn is a capital good for a textile manufacturer.
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 true and (R) is false.
d. (A) is false and (R) is true.
Or
Define capital good.
6. Which of the following statements stands true during deflationary gap? 1
a. Actual output falls short of potential output

b. Potential output falls short of actual output.
c. Actual demand is less than expected demand
d. Expected demand is less than demand
Or
Define margin requirement.
7. Demand deposits include_____ and______. 1
I. Saving account deposits

II. Fixed deposits
III. Current account deposits
IV. Post office savings
Codes
a. I. and II
b. II. and III.
c. I. and III.
d. I. and IV
8. Other things remaining the same, when in a country the market price of 1
foreign currency falls, National income is likely_______.
a. To rise.
b. To fall
c. Both a. and b.
d. To remain unaffected
9. What will be the impact on money supply during deflationary gap? 1

a. Increase
b. Decrease
c. Remain constant
d. Can't be predicted
10. Assertion (A): Autonomous consumption leads to negative savings. 1

Reason (R): People have to spend on such consumption from their past
savings.
b Both (A) and (R) are true but (R ) is not the correct explanation of (A).
11. From the following data, calculate Net Value Added at factor Cost: 3
S.no. Contents Rs. (in crore)
i Net factor income from abroad 30
ii Sales 3500
iii Purchase of intermediate goods 2000
iv Consumption of fixed capital 500
v Exports 400
vi Indirect taxes 350
vii Change in stock 50
12 Giving reasons, explain whether the given statements are true or false. 3
a. Trade deficit is always a great cause of worry for an economy.
b. Depreciationof currency has same effect on exports as devaluationof
currency..
c. Indians investing in assets abroad will be recorded under Debit side of
capital account in BOP.
OR
"Trade deficit must exist if a country is facing a situation of current account
deficit." Defend or refute the statement, with valid argument.
13 The savings function of an economy is S= - 200+0.25Y. The economy is in 4

equilibrium when income is equal to Rs. 2000. Calculate the following.
A. Investment expenditure at equilibrium level of income.

B. Autonomous consumption
14 Explain the steps taken in the derivation of saving curve from the consumption 4
curve. Use diagram.
15. Explain the credit creation process of commercial banks with a numerical 4
example.
OR
'Printing of new currency may not be a matter of concern always.' Do you
agree? Why?
16. Calculate Gross National Product at Factor cost (GNP fc) from the following 6
data by:
a. Income method
b. Expenditure method
S. no. Items Rs. (in crores)
I. Private final consumption expenditure 1000
II Net Domestic Capital Formation 200
III Profits 400
IV Consumption of employees 800
V Rent 250
VI Government final consumption expenditure 500
VII Consumption of fixed capital 60
VIII Interest 150
IX Net current transfers from rest of the world -80
X Net factor income from abroad -10
XI Net exports -20
Net indirect taxes 80
17. (a) In the context of government budget, giving reasons, explain whether 6
the following are a revenue receipt or a capital receipt.
I. Tax receipt
II. Sale of public sector undertaking
(b) " A fiscal deficit necessarily leads to inflation." Comment.
OR
India is suffering from the problem of inequalities in the distribution of income
and wealth. How can a budget be used as an instrument?
SECTION B
18 Choose the correct statement from given below: 1

a. Licensing policy was introduced to prevent private sector to work
freely.
b. Present monetary system in India was introduced by colonial
government.
c. Railways started functioning from 1850.
d. Liberalisation is an outcome of privatisation and globalisation.
OR
Choose the correct statement from the given below:

a. TISCO was incorporated in 1807.
b. Telegraph facility was introduced in 1850.
c. First census in India was conducted in 1921.
d. The overall literacy rate during British period was 16%.
19 Which of the following is not a method of privatisation? 1

a. Disinvestment
b. Contraction of PSUs
c. Sale of PSUs to private sector
d. Sale of PSUs to government
20 Maternal mortality rate is highest in: 1

a. India
b. Pakistan
c. China
d. Both b. and c.
Or
The policy of Great Proletarian revolution was announced in :
a. 1955
b. 1950
c. 1958
d. 1966
21 A worker who owns and operate his own enterprise is said to be a 1

a. Casual wage worker
b. Self employed worker
c. Regularly employed Worker
d. None of these
22 Industrial Policy Resolution 1956, formed the basis of _____ five year plan. 1
a. First
b. Second
c. Third
d. Fourth
23 Assertion (A): An educated person is able to generate more income than an 1
uneducated person.
Reason (R): The labour skill of an educated person is more than that of an
uneducated person.
24 Statement I: India has adopted various poverty alleviation programs to reduce 1

poverty in India.
Statement II: Sex ratio refers to the proportion of males per thousand females.
a. Both the statements are true.
b. Both the statements are false.
c. Statement I is true and Statement II is false.
d. Statement I is false and Statement II is true.
25 Which five year plan recognised the importance of human capital? 1

a. Tenth
b. Seventh
c. Sixth
d. Nineth
Or
Define Human Capital Formation.
26 Match the following: 1
I.Green Revolution a. Fruits production
II.Yellow Revolution b. Milk production
III.White Revolution c. Food grains production
IV.Golden Revolution d. Oil seeds production
Codes
I II III IV
a. d a b c
b. c b d a
c. c d b a
d. d c a b
27 China announced its first five year plan in 1

a. 1951
b. 1952
c. 1953
d. 1954
28 Explain the relationship between environment and economic development. 3
29 'Human resource is a main economic factor'. Discuss. 3

OR
Keeping in view the present scenario, what should be the objectives of
education in India?
30 China's rapid industrial growth can be traced back to its reforms in 1978.Do 4
you agree? Elucidate.
31 Enumerate the various problems faced by Small scale industries. 4

OR
'Industrial licensing and industrial shops were used to promote regional
equality.' Discuss.
32 You are residing in a village. If you are asked to advice the village panchayat, 4
what kinds of activities would you suggest for the improvement of your village
which would also generate employment?
33 Do you think that in the last 50 years, employment generated in the country is 6
commensurate with the growth of GDP in India? How?
OR
In recent times, the Indian economy has experienced the problem of
casualisation of the workforce. This problem has only been aggrevated by the
outbreak of covid-19. Do you agree with the given statement? Discuss any two
disadvantages of casualisation of the workforce in light of the above
statement.
34 Discuss the steps taken by the government in the direction of improving 6

agricultural marketing system in India, since independence.
KENDRIYA VIDYALAYA SANGATHAN,JAMMU REGION
SAMPLE PAPER SET: 10
CLASS: XII SUBJECT: Economics (030)
TIME ALLOWED-3 HOURS M.M.-80
SECTION A
Q.no. General instructions : Mar

● All the questions in each section are compulsory ks
● Questions No. 1-10 and 18-27 are MCQ or objective type questions
carrying 1 marks each. They are required to be answered in one
sentence each.
each.
each.
each.
● Answers should be brief and to the point and the above word –limits
should be adhered to as far as possible
1. If the value of average propensity to consume is 1.5, the value of average 1

propensity to save will be:
a. 0
b. 0.5
c. -0.5
d. 1
2. Government transactions include _________ to keep the BOP in balance and 1

which are not carried out for profits.
a. Borrowings from IMF and other financial institutions
b. Grants and donations
c. Foreign exchange reserves
d. Both a. and c.
3. Cheques are the example of_________ money. 1

a. Fiat
b. Fiduciary
c. Legal tender
d. None of these
OR
Bank creates credit

a. On the basis of their securities
b. On the basis of their total assets
c. On the basis of their cash deposits
d. On the basis of their gross liabilities
4. _________ is a situation when managed floating is exercised by the central 1

bank.
a. Crawling peg
b. Spot market
c. Dirty floating
d. None of these
5. Assertion (A): In income phase, factor incomes flow from firms to households. 1
Reason (R): Firms distribute the revenue received from the sale of goods and
services as rent, interest, profit and wages.
Or
Define externalities with the help of an example.
6. When does a situation of deficient demand arise in an economy? 1

a. AD>AS
b. S>I
c. AD<AS
d. S< I
Or
Define inflationary gap.
7. Banks not only accept deposits but also______ savings. 1

a. Distribute
b. Mobilize
c. Convert
d. None of these
8. Suppose that the Balance of Trade of a nation, exhibits a surplus of Rs. 20000 1
crores. The import of merchandise of the nation is half of the exports of
merchandise to the rest of the world. The value of exports would be Rs.
______ crores.
a. 30,000
b. 40,000
c. 24,000
d. 35,000
9. In case of excess demand, RBI______ the bank rate or interest rate which 1
makes the credit dear.
a. Increases
b. Decreases
c. Deposit
d. None of these
10. Assertion (A): Greater the MPS, greater will be the value of multiplier. 1
Reason (R): There is a negative and inverse relationship between MPS and
multiplier.
11. Giving reasons explain the treatment assigned to the following while 3
estimating National Income:
a. Social security contributions by employees
b. Pension paid after retirement
c. Expenditure on maintenance of a building
12 Can there be a deficit in balance of trade without a deficit in Balance of 3
payments?
OR
Would the central bank need to intervene in managed floating system?Explain
why?
13 Discuss briefly the various measures to correct excess demand. 4
14 Explain the meaning of under employment equilibrium. Explain two measures 4

by which full employment equilibrium can be reached.
15. Explain the role of cash reserve ratio in controlling credit creation. 4
OR
Money is dynamic in nature. How?
16. Explain the problem of double counting in the estimation of national income 6
with the help of an illustration. How it can be avoided?
17. (a) How progressive tax structure can help in reducing inequality of 3
income?
(b) Explain the basis of classifying taxes into direct and indirect tax. Give 3
examples.
OR
Classify the following statements as revenue receipts or capital receipts give

valid reasons in support of your answer:
I. Financial help from multinational corporation for victims in a flood 2
affected area.
II. State of shares of a public sector undertaking to a private company, Y 2
Ltd.
III. Dividends paid to the government by the State Bank of India. 2
SECTION B
18 __________ economy is referred to as Laissez- Faire economy. 1

a. Socialist
b. Capitalist
c. Mixed
d. None of these
19 Choose the incorrect statement from given below: 1

a. Low productivity during colonial period was accounted to land tenure
system.
b. Post independence elected Government of India removed land tenure
systems.
c. Schedule C of IPR 1956 comprised of companies which were
cooperated by private and government sector.
d. Demonetization refers to removal of legal tender status of existing
currency.
OR
Assertion (A): During colonial period, Britishers had Monopoly control over
India's foreign trade.
Reason (R): A discriminatory tariff policy leads to drain of India's wealth.
20 The main aim of ' Great Leap Forward' (GLF) in China was to ensure rapid 1
increase of_________.
a. agriculture
b. industries
c. services
d. exports
or
Define life expectancy.
21 Which of the following is not used as a strategy for sustainable development? 1

a. Use of bio- gas
b. Use of solar power
c. Use of thermal power
d. Use of Hyder power
22 What were the outcome of one child norm introduced in China? 1

a. Decline in sex ratio
b. Decline in population growth
c. Decline in population density
d. All of the above
23 Co-operative marketing societies have faced a downfall in the recent years, 1

identify which of the following was not a reason behind its downfall.
a. Lack of coordination between processing and marketing societies.
b. Inefficient financial management.
c. Inadequate coverage of all the members.
d. Intervention of the government is most essential.
24 ____ is a geographical region that has economic laws different from one 1
countries typical economic laws.
a. NEP
b. SEZ
c. GLF
d. None of these
25 Two months ago, Shyam was working as part time salesman on commission 1
basis in a company. Due to his excellent performance company appointed him
as a permanent Sales Manager on fixed monthly salary from the point of view
of employment currently he is a:
a. Skilled worker
b. Regular salaried worker
c. Unskilled worker
d. Casual wage labour
Or
Differentiate between organized and unorganized sector.
26 Assertion (A): Human capital treats human beings as a means to an 1

end(increase the productivity).
Reason (R): Human Capital Formation decreases by way of investments in
education and health.
27 Statement I: Pakistan announced its first five year plan in 1956. 1

Statement II: The rate of urbanization is high in India as compared to pakistan.
a. Both the statements are true.
a. Both the statements are false.
b. Statement I is true and Statement II is false.
c. Statement I is false and Statement II is true.
28 Interpret the given picture on account of current environmental challenges 3

29 What role do trade unions play in protection of workforce? 3
OR
Enlist some of the problems faced by farmers duringthe initial years of organic
farming.
30 Compare and contrast the development of India, China and Pakistan with 4
respect to some salient human development indicators.
OR
Evaluate the various factors that led to the Rapid growth in economic
development in China.
31 "NEP stimulated economic growth ". Give two arguments in favor and against 4
of this statement.
32 Why is unemployment in India considered to be a chronic problem? 4
33 " Human capital formation gives birth to innovation, invention and 6

technological improvements. " Do you agree with the given statement?
Support your answer with valid arguments.
34 'The traditional Handicrafts industries were ruined under the British rule.Do 6
you agree with this view? Give reasons in support of your answer.
OR
" Some economists believe that the economic reforms have adversely affected
the agriculture sector in India." Do you agree with the given statement? Justify
your answer with valid reason.
SAMPLE PAPER SET-11
TIME: 3 HOURS MM:80
possible
Q.NO. SECTION A MARKS
1 Assertion (A): Economy always operates on the level of full employment. 1

Reason (R): Due to changes in the aggregate demand, full employment may not
always exist.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct
(b) Both Assertion (A) and Reason (R) are true and Reason (R)is not correct
2 External borrowing is a component of …………… account.

1
(a) Current (b) capital
(c) Official reserve (d) none of these
3 Under Statutory Liquidity Ration, commercial banks are required to keep a fraction of 1
…………… in the form of liquid assets.
(a) Total deposits (b) Term deposits
(c) Total demand and term deposits (d) Current deposits
1
4 Assertion (A): Managed Floating Exchange rate system is a combination of fixed and
flexible exchange rate system. 1
Reason (R): In managed floating exchange rate system, central bank decides the limit of the
exchange rate and within the limit, exchange rate is decided by market forces of demand
and supply of foreign exchange.
5 State with valid reason, of the following statement is true or false:

Statement : Gross Value Added at market price and Gross Domestic Product at market 1
price are one and the same thing.
(OR)
Unforeseen Obsolescence of fixed asset during the production is:
(a) Consumption of fixed capital (b) Capital loss
(b) Income loss (d) None of the above
6 If marginal propensity to consume is 0.5, calculate the value of investment multiplier. 1

(OR)
When C=100 +0.5Y and Y=1200, autonomous consumption will be:
(a) 100 (b) 1000
(c) 500 (d) 600
7 High powered money is equal to: 1

(a) Money supplied by the RBI only
(b) Total supply of money in the economy
(c) Notes and coins held by the people
(d) Money (notes and coins) held by the people, vault cash of the
commercial banks as well as cash reserves of the commercial banks with
the RBI
8 If 1$=70 INR changes to 1$=74 INR through changes in market forces of demand and 1
supply, then it is called as ………….
(OR)
If balance of trade is (-) RS 600 crore and value of exports is RS 500 crore, then the value
of imports will be:
(a) RS 1,300 crore (b) RS 300 crore
(c) Rs 1,100 crore (d) Rs 1,200 crore
2
9 Assertion (A) : Under deflationary gap, involuntary unemployment occurs in the economy. 1
Reason (R) : In a state of underemployment equilibrium, there is no excess capacity in
the economy.
10 Assertion (A): ex-post investment includes both planned as well as unplanned 1

investment.
Reason (R): Autonomous investment is independent of the level of income.
11 Will the following be included in the domestic products of India? Give reasons for your
answer. 1
(a) Profits earned by foreign companies in India. 1
(b) Salaries of Indians working in the Russian Embassy in India 1
(c) Profit earned by a branch of State Bank of India in Japan.
12 How Appreciation of domestic currency likely to affect exports and imports of domestic 3
country.
(OR)
Distinguish between Autonomous items and accommodating items in balance of
payment.
13 In an economy, government makes some additional investment. Find its value when MPC = 4
0.5 and increase in income =RS 1,000.
14 . “India’s GDP contracted 23.9% in the April-June quarter of 2020-21 as compared to same 4
period of 2019-20, suggesting that the lockdown has hit the economy hard”. State and
discuss any two fiscal measures that may be taken by the Government of India to correct
the situation indicated in the above news report.
15 . “RBI acts as an apex body in the financial system of the economy. It acts as a guardian 4
angel for the commercial banks”. Identify and explain the functions of RBI.
(OR)
How, in your opinion, credit creation by the commercial bank accelerates the pace of
economic growth? Write two observations.
3
16 . (a) Calculate Gross Value Added at market price (GVAmp) from the following data: 3
( Items) Amt ( RS in crore)
(i) Depreciation 20
(ii) Domestic sale 200
(iii) Change in stock (-) 10
(iv) Exports 10
(v) Single use producer goods 120
(vi) Net indirect taxes 20
3
(b) All machines are not Capital goods. Justify.
17 (a) Elaborate the objective of ‘ Reducing inequality’ in the government budget 3

(b) Distinguish between Revenue expenditure and Capital expenditure of
the government with suitable example 3
(OR)
(a) “Fiscal deficit gives the borrowing requirement of the
government”. Elucidate.
(b) Give the relationship between the revenue deficit and the fiscal
deficit.
18 On the eve of independence , India was net exporter of : 1

(a)primary products (b) industrial products
(c)capital goods (d) all of these
19 Industrial Policy Resolution , 1956 laid emphasis on the role of : 1

a) public sector
b) private sector
c) joint sector
d) none of these
OR
The government has managed the loss-making public enterprises through
…………….
a. liberalization
b. Disinvestment
c. Denationalisation
d. Globalization
20 Mao initiated the Great Leap Forward in the year ………………… 1

a)1951 b)1955 c)1958 d)1962
OR
Define commune system.
21 The process of addition to the stock of human capital over time is called : 1
a)human capital addition b) human capital formation
C) human capital augmentation D) human capital stock
4
22 India has …………………… share of service sector in GDP than china . 1
a)higher b) lower
C)equal d)none of these
23 From the set of statement given in Column I and Column II, choose the correct 1
pair of statement:
Column 1 Column 2
A.Non - institutional source of rural credit in India 1. Regional rural
banks
B. Medium - term credit 2. For purchase of additional
land
C. Cooperation credit societies 3. Adequate credit to the
farmers at
reasonable rate of interest
D. Chemical farming 4. Tastier and healthier food
Alternatives:
(a) A-(i) (b) B-(ii)
(b) C-(iii) (d) D-(iv)
24 Introduction of Economic Reform in Pakistan took place in …………………………….. 1

[a] 1978 [b] 1980
[c] 1988 [d] 1991
25 Assertion [A] : The rural economy employs nearly 50 per cent of our work force . 1
Reason [R] : Higher percentage of work force in rural areas suggests a higher contribution
of the rural economy to GDP of India .
[a] Both Assertion (A) and Reason (R) are true and Reason (R) is correct
[b]Both Assertion (A) and Reason (R) are true and Reason (R)is not correct
[c] Assertion (A) is true but Reason (R) is false.
[d]Assertion (A) is false but Reason (R) is true.
OR
Define micro credit?
26 Assertion [A] : Environment crisis occurs when carrying capacity of the environment is 1
challenged .
Reason[R] : Environment crisis has a high opportunity cost .
[b] Both Assertion (A) and Reason (R) are true and Reason (R)is not correct
5
27 Assertion [A] : Great Proletarian Cultural Revolution was launched to address economic 1
recession . Reason [R] : Great Leap Forward failed to accelerate the pace of development .
[b] Both Assertion (A) and Reason (R) are true and Reason (R)is not correct
28 India has an edge over other countries in the adaption of the organic farming . How ? 3
29 Defend or refuse the following statement with valid explanation : Disguised employment 3
lowers efficiency / productivity.
OR
How migration from rural to urban areas leads to environmental degradation ? Write one
significant observation .
30 Compare and analyse the given data of distribution of work force in (2018-19 ) with valid 4
reason.
Country Agriculture(%) Industry(%) Service(%)
India 43 25 32
China 26 28 46
Pakistan 41 24 35
31 Justify the direct Participation of the state in Industrial development of the Country after 4
Independence.
OR
Discuss briefly, Economic reforms in India in the Light of social justice and Welfare.
32 Brain drain is a serious constraint in Human Capital formation and growth process in 4
India.Comment.
33 (a) Human Capital formation increases the efficiency of Physical Capital. How? 3
b)Women in rural areas are ready to work even at low wages. Why? 3
Or
“Casual wage work is the major source of employment in rural India”. Defend or refute the
given statement.
6
34 Read the following text carefully and answer the given questions on the basis Of the same
and common understanding:
Farmers in India are provided support on both the input and output side. On the input side
and an average Indian farmers receives subsidies on fertilizers, seeds, farm machinery and
equipment, electricity, logistics etc. On the output sides, the MSP regime offers support in
states having robust procurement infrastructure. However, small and marginal farmers are
able to get only a small amount of subsidies. In number of subsidies meant for agriculture
also flow to businesses, e.g, grant given to food processing units and cold chain projects.
AS per I CRIER-COED report, despite the plethora of schemes run to support and subsidies ,
Indian farmers because of regressive policies on the market sides, ( both domestic trade
polices) and the deficit of basic infrastructure for storage, transportation etc. Indian
farmers suffered net losses and thus emerged to net tax despite receiving subsidies.
Between 2014 & 2016, Indian farmers were on average net tax to the tune of 6%.
(a) Why farmers are offered subsidies on input side. 3
(b) Agriculture subsidies always been a matter of debate. Do you agree? Explain the 3
statement.
7
SAMPLE PAPER SET-12
TIME: 3 HOURS MM:80
possible
Q.NO. SECTION A MARKS
1 Assertion[A]: In case of deficient demand , government must decrease the rate of taxes in
the economy .
Reason[R]: Taxes affect the disposable income and purchasing power of general public in
the economy .
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct 1
2 Borrowing of rest of the world would be recorded as ……………….. items in the capital
1
account of B.O.P.
[a]debit [b] credit
[c] zero [d] none of these
3 To reduce credit availability in the economy , the central bank may………. .

[a] buy securities in the open market . [b] Sell securities in the open market
[c] reduce reserve rate . [d] reduce repro rate. 1
1
4 Assertion[A]: Fixed Exchange rate system involves active involvement of central bank/
government of the respective countries. 1
Reason[R]: In fixed exchange rate system , once the exchange rate is decided it is usually
kept as fixed in order to maintain the stability in economic transactions.
5 State with valid reason , of the following statement is true or false

Statement : Intermediate goods are always durable in nature. 1
OR
Foreign Embassies in India are a part of India’s:
(a) Economic territory (b) Geographical Territory
(c)Both a & b (d) None of the above
6 Which of the following is correct? 1

[a] MPC+ MPS=1 [b] 1- MPC=MPS
[c] 1-MPS=MPC [d] All of these
OR
When C=300+0.8Y and Y=500,saving at zero income level will be:
[a] 300 [b] -300
[c] 1,100 [d] 800
7 Supply of money is a : 1
[a] flow variable [b] stock variable
[c] real flow [d] none of these
8 If balance of trade is showing a deficit of Rs 200 crore and value of imports is Rs 900 crore , 1
then the value of exports would be :
[a] Rs 200 crore [b] RS 500 crore
[c] Rs 700 crore [d] RS 900 crore
OR
……………… account balance includes the balance of trade as well as balance on indivisible.
(Current/Capital)
9 Assertion[A]: Excess demand refers to the situation when AD is the excess of 1

AS corresponding to full employment in the economy.
Reason: AD is in excess when there is excess capacity in the economy
[a] Both Assertion [A] and Reason [R] is correct explanation of Assertion [A]
[b] Both Assertion (A) and Reason (R) are true and Reason (R)is not correct explanation of
2
Assertion (A).
[c]Assertion (A) is true but Reason (R) is false.
[d] Assertion (A) is false but Reason (R) is true.
10 Assertion [A] : Value of investment multiplier varies between one and infinity . 1
Reason [R] : When investment multiplier is one , value of marginal propensity to consume is
also one .
11 Will the following be included in the national income of India ? Give reason for 3
your answer .
[a] Financial assistance to flood victims.
[b] Profit earned by the branches of a foreign bank in India.
[c] Salaries of Indians working in the Americans Embassy in India .
12 How depreciation of Domestic currency likely to affect exports and imports of domestic 3
Country.
OR
What is fiscal deficit .What are its implications .
13 If MPC=0.75, how much additional investment is required to increase income by RS 600 ? 4

Also, find the multiplier.
14 To boost the falling demand in the economy , the Reserve Bank of India recently reduced 4
Repo rate. Elaborate the rationale behind the steps taken by the central Bank.
15 The central government relies on RBI just like , general public relies on commercial banks . 4
Identify and explains the function of RBI .
OR
How improvements in banking habits of the people pushes up credit availability from the
commercial banks ?
16 (a) What is real GDP and nominal GDP. Which is the best indicator . 3
(b) Calculate National income from the following data. 3

ITEMS Amt(Cr.)
i) Wages 1000
ii)Rent 5000
iii)Interest 400
Iv)Dividend 3000
3
v)Mixed income 400
Vi)Undistributed profit 200
Vii)Social Security contribution 400
Viii)Corporation profit tax 400
ix)Net factor income from abroad 1000
17 (a) Distinguish between the revenue receipts and capital receipts of the government with 3
suitable examples.
(b) Elaborate the objective of “Reallocation of resource” in the government budget. 3
(OR)
(a) Budgetary deficit points to failure of the government to manage its budget. defend or
refute
(b) Do you agree that revenue deficit increases when the government fails to recover its
loans.
18 During the colonial period, Indian’s demographic profile showed: 1
(a) High birth rate (b) high death rate
(b) High infant mortality (d) all of these
19 Investment limit for small-scale industries is: 1
(a) Rs 1 crore (b) Rs 5 crore
(b) Less then Rs 10 crore (d) Less then Rs20 crore
(OR)
------------------------- is the process of involving private sector in operation of a state-owned

enterprise.
A. Liberalization b. Privatization
B.Globalization d. laissez-faire
20 The main aim of a ‘Great Leap forward’ was to ensure rapid increase in ------------------------ 1
a.Primary sector b. Secondary sector
B. Tertiary sector d. Quaternary sector
4
OR
In which year peoples republic of china established?

A) 1949 b) 1965 c)1947 d) 1969
21 The stock of ‘skill and expertise’ of a nation at a point of time is known as: 1
A. Social Infrastructure b. Human Capital
c.Physical Capital d. None of these
22 ………………has higher Population density than Pakistan. 1
A. India b. China
B. Pakistan d. all of these
23 a. Identify the correct pair of alternatives given in column II by matching them with 1
respective items in Column I:
Column I Column II
A. Horticulture crops (i) Sustains soil Fertility
B. Short-term credit (ii) Shift from single -cropping to

multi-cropping
C. Diversification of crop production (iii) Purchase of inputs
D. Organic Farming (iv) Fruits,Vegetables and flowers
Alternatives:
(A) a-iii, b-iv, c-i, d-ii (B) a-i, b-iv, c-iii. D-ii
(B) a-ii, b-iii, c-iv, d-i (D) a-iv, b-iii, c-ii, d-i
24 Which of the following Countries Initiated its Process of Economic Reforms In the Year 1
1991?
A. India b. China
B. Pakistan d. Russia
5
25 Assertion: A large segment of workforce continues to depend on primary activities to make 1
a living.
Reason: In India trade, commerce, banking, tourism and related services are developing
faster than other production activities.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is correct
explanation of Assertion.
(b)Both Assertion (A) and Reason (R) are true and Reason (R)is not correct
OR
What is casualization of work force?
26 Assertion: Widespread Poverty causes massive erosion of environmental 1

resources.
Reason: Urbanization caused by rapid and unplanned urban growth results in
poor infrastructure.
27 Assertion: China has the lowest density of population as compared to India 1

and Pakistan
Reason: China has a very large geographical area.
28 How is green revolution different from golden revolution . 3
29 Sustainable development is a process to be adapted as a daily life activity . Write you 3

observation .
OR
Write two problems related to environment.
6
30 Compare analyse the given data of India and china with valid reasons. 4
Country Annual growth Gender ratio
rate of (per thousand
population males )
(2016)
India 1.2% 929
China 0.5% 941
31 land reforms have played a Significant role in transforming Indian 4

agriculture.How?
OR
Do you think Outsourcing is good for India? Why are developed Countries
Opposing it?
32 (a) Migration Leads to human Capital formation.How? 2

(c) Education is an important ingredient of growth. Comment. 2
33 (a) How does investment in human Capital contributes to growth? 3

(b)Analyse the recent trends in Sectoral distribution of workforce in India. 3
or
What are the key issues of rural development?
34 Read the following text carefully and answers the given questions on the basis
of the same and common understanding:
From the time of Independence, India has been one of the important trading
countries, exporting primary items like, cotton, raw, silk, sugar, wool, jute, and
indigo,etc. And importer of finished consumers goods like woolen clothes,
cotton, silk, and capital goods like light machinery manufactured in Britain.
During this period, Britain held the monopoly over India’s imports and
export’s. Britishers ensured that there is complete decay in demand of Indian
handicrafts at global level through its discriminatory tariff policy. Therefore,
most of the foreign trade was restricted only to Britain and while the rest of
half was allowed to trade with other countries like Ceylon (Sri Lanka), China,
and Persia (Iran). India was a large exporter in the colonial period; however, it
did not affect the country’s economy because even though India had surplus in
its trade account, The entire amount was drained by Britishers for their own
use. It was after the independence; Indian economic Thinkers felt the need to
introduce a well-structured foreign trade policy. The policy introduced resulted 2
in positive changes in composition, volume and direction of India’s trade. 2
(a) Why Britishers drained India’s wealth? 2
(b) Define composition of Trade. Discuss the changes in India’s
composition of trades pre- and post- independence period.
(c) “India adopted a well-structure foreign trade policy after
independence”. Highlight the salient features of the policy.
7
SAMPLE PAPER SET-13
TIME: 3 HOURS MM:80

● Questions No. 1-10 and 18-27 are MCQ or objective type questions carrying 1
mark each. They are required to be answered in one sentence each.
● Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks
each. Answers to them should normally not exceed 60 words each.
Q.NO. QUESTIONS MARKS

PART A (MACRO ECONOMICS)
1. In which one of the following situations, there will be unplanned increase 1
in inventory of unsold goods?
a) AD>AS
b) AD = AS
c) AD< AS
d) None of these
2. In Covid-19 situation India like many countries borrow fund from 1
international financial to meet medical purchase requirements this will
lead to:
i) Increase fiscal deficit
ii) Reduce growth
iii) Increase primary deficit
iv)All of these
3. Variation in Cash Reserve Ratio and Open Market Operations are 1
instruments of
a. Budgetary policy b. Trade policy c. Fiscal policy d. Monetary policy
4. Under Floating Exchange Rate System, exchange rate is determined by- 1
a) Central Bank
b) Government
c) Market Forces of Demand and Supply
d) None of these
or
Read the following statements carefully -Assertion (A) & Reason (R) and
choose the correct alternative.
Assertion (A) : Imports of crude oil by India will have a favourable impact
on Balance of payments of India.
Reason (R ) : Imports of goods are recorded on the debit side of current
account as it leads to outflow of foreign exchange.
correct explanation for Assertion (A) .
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation for Assertion (A) .
5. Which of the following is Factor Income? 1

a. Old Age Pension
b. Net Current Transfer from ROW
c. Rent from Land
d. None of these
or
GNP fc +…………………………. = GNP mp
a. NFIA
b. NIT
c. Depreciation
d. None
6. When planned saving is less than planned investment, it indicates a 1
situation when-
a) AD<AS
b) AD=AS
c) AD>AS
d) None of these
or
C = c +b(Y), what is b here?
a. MPC
b. MPS
c. APC
d. Both (a ) and (b)
7. How will a reduction in Bank Rate affect the availability of credit? 1
a. Credit will increase
b. Credit will not increase
c. Credit will decrease
d. None of these
8. ________ is the difference between value of goods sold to the rest of the 1
world nd value of goods imported from rest of the world
a) Balance of Payment
b) Balance of Trade
c) Balance f Current account
d) Balance of Capital account
9. Other things remaining the same, when in a country the market price of 1
foreign currency falls, national income is likely
a) to rise
b) to fall
c) to rise or fall
d) to remain unaffected
10. During Excess Demand, Central Bank ______ the margin 1
a) decreases
b) increases
c) removes
d) does not change
11. “Gross domestic product does not give us a clear indication of economic 3
welfare of country.” Defend or refute the given statement with valid
reasons.
12. Why is there negative relationship between rate of foreign exchange and 3
demand for foreign currency? Explain.
Or
Differentiate between Balance of Trade and Balance of Payment.
13. Distinguish between excess demand and deficient demand. State two 4
physical major by which they can be corrected
14. Outline the steps undertaking in driving the saving curve from the given 4
consumption curve. Use diagram.
Or
Define Deflationary Gap. Explain some monetary measures adopted by
central bank to correct this situation.
15. What is Legal Reserve Ratio? How does Legal Reserve Ratio influence 4
credit creation?
16. From the following data calculate NDPFC by 6
a. Value added method b. Expenditure method
S.no. Items (in
crores)
i) Net imports (-)50
ii) Net Domestic Fixed Capital Formation 200
iii) Private Final Consumption Expenditure 1450
iv) Consumption of Fixed Capital 50
v) Change in stock (-)50
vi) Government Final Consumption expenditure 200
vii) Value of output in economic territory 4100
viii) Intermediate purchase 2000
ix) Indirect Taxes 100
Or
a. What precautions are taken while estimation National Income
by Income method.
b. Write three limitations of GDP as a measure of welfare.
17. Define Government Budget. Explain the various objectives of a 6
government budget.
PART B (INDIAN ECONOMY)
18. Which of the following can describe mixed economy? 1
a. Modern and traditional industries
b. Public and private sectors
c. Commercial and subsistence
d. none of these
19. On the eve of Independence, India was net exporter of 1
a. Primary products
b. Industrial Products
c. Capital Goods
d. Agricultural goods
or
Who was the architect of planning of India?
a. P.C. Mahalnobis
b. V.K.R.V. Rao
c. Indira Gandhi
d. Marorji Desai
20. The Great Leap Forward (GLF) Campaign in China focused on 1
a. Wide spread industrialization
b. New agricultural strategy
c. Privatization
d. Economic Reforms
21. Human Capital consists of 1
a. Entire population b. Workers c. Entrepreneurs d. Both B and
C
Or
What was the purpose of British rule in India?
a. To reduce the country into a feeder economy to promote British
interest
b. To develop infrastructure in India.
c. To develop basic industries in India.
d. To develop agriculture in India
22. India is not a member of which of the following regional/global economic 1
grouping?
a. SAARC
b. BRICS
c. G-7
d. G-20
23. When percentage of workforce in the formal sector decline and in the 1
informal sector rises, it is known as............. of work force.
(Casualisation/Informalisation)
24. In which country communal system was started? 1
a. India b. Pakistan. c. China d. China and Pakistan.
25. The number of persons, who are actually employed at a particular time 1
are known as-
a. Labour Force
b. Work force
c. Both a) and b)
d. Neither a) or b)
or
Define Labourforce Participation Rate.
26. Land Development Bank is_______ source of rural credit 1
a. Institutional
b. Non- Institutional
c. Both a and b
d. Neither a nor b
27. Which of the following country adopted “One Child Norm” to control its 1
population?
a. Pakistan
b. China
c. India
d. Bangladesh
28. Explain the role of human capital formation in accelerating the rate 3
of economic growth?
Or
What are the problems of Human Capital Formation?
29. Discuss any two principal causes of environmental degradation. 3
30. Answer the following questions on the basis of the following data 4
Country Estimated Annual growth Sex ratio
Population (in of population
millions)
India 1311 1.2 929
China 1371 0.5 941
Pakistan 188 2.1 947
a. Comment upon the population growth rates among the three countries
b. Which country has most skewed in sex ratio?
31. Discuss the various objective of five year planning in India. 4
Or
What were the negative impacts of British rule in India?
32. Although rural banking has gone a long way to revolutionalise rural 4
credit, much needs to be done in this regard. Defend or refute.
33. What is Agriculture marketing? Write the step taken by the 6
government to improve Agriculture marketing. Mention some
factors which hinder the mechanism of agricultural marketing in
India
Or
Critically evaluate the role of rural credit/banking system in the
process of rural development in India. Also give some suggestion to
improve the situation.
34. Explain Demonetization. Mention its positive and negative effects in 6
each sector of the country briefly.
SAMPLE PAPER SET-14
TIME: 3 HOURS MM:80
Q.NO. QUESTIONS MARKS
SECTION A (MACRO ECONOMICS)
1. C=100+0.75y Saving Function will be ______ 1
2. A decrease in the price of a domestic currency in term of foreign 1

currency under flexible exchange rate is called.
3. The RBI can influence money supply by changing the rate at which it 1
gives loans to the commercial bank for long -term periods. The rate is
called the_________ in India.
• Bank rate
• High powered money
• Repo rate
• Lending rate
4. An Indian Company acquires a British car company. This transaction 1

would be recorded on _________side of __________ account.
a) Debit, Capital
b) Credit, Capital
c) Debit, Current
d) Credit, Current
5. Depreciation expenses are included in 1

a. GDPMP
b. NNPMP
c. NNPPC
d. None of these
Or
Read the following statements carefully -Assertion (A) and Reason (R)
and choose the correct alternative:
Assertion (A): National income is always more than the domestic
income.
Reason (R) : National income can be less than domestic income when
net factor income from abroad (NFIA) is negative. National income can
also be equal to domestic income if NFIA is zero.
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
c)Assertion (A) is true ,but Reason (R) is false.
d)Assertion (A) is false, but Reason (R) is true.
6. If MPC is 0.6, what will be the change in consumption, if income 1

increases by 100
a) 40
b) 50
c) 60
d) 70
Or
Give two examples of non-tax revenue.
7. Which one of the following is not a function of the central bank in an 1

economy?
a. Dealing with foreign exchange
b. Controlling monetary policy
c. Controlling government spending
d. Acting as a banker’s bank
8. Devaluation of currency means 1
a) Reduction in the value of domestic currency by the market forces
b) Reduction in the value of domestic currency by the government
c) Both a) and b)
d) Neither a) nor b)
Or
.............is a situation when 'managed floating exercised by the Central
Bank.
(a) Crawling peg (b) Spot market
(c) Dirty floating (d) none
9. Assertion (A) Government imposes heavy taxes on alchohol and gives 1
subsidy of LPG gas.
Reason (R) The government undertakes such a measure to ensure
economic stability in the country.
Alternatives
a)Both (A) and (R) are correct and (r) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of
(A)
c) (A) is correct, but (R) is incorrect
d) (A)is incorrect and (R)is correct
10. The government starts selling its securities to private sector. What is 1
this process called?
(a) Open market operation (b) Disinvestment
(c) Monetary expansion d) multiplier
11. Distinguish between Consumption goods and Capital Goods. 3

or
Differentiate between stock and flow variables. With suitable
examples.
12. Distinguish between Autonomous and accommodating transactions in 3

balance of payments accounts.
13. Measure the level of ex - ante aggregate demand when autonomous 4

investment and consumption expenditure ( A ) is 50 crore , and MPC is
0.8 and level of income ( Y ) is 4000 crore ,state whether the economy
is equilibrium or not .
14. why must aggregate demand be equal to aggregate supply at the 4

equilibrium level of income and output? Explain with the help of
diagram.
15. Explain the process of money creation by commercial bank with the 4
help of the numerical example .
or
a) What is money multiplier?
b) Explain 'lender of last resort ' function of RBI.
16. From the following data, show that the National Income will be same 6
from both Income method and Expenditure method
S.no. Items (in crores)

i) Net Exports (-)60
ii) Net Indirect Taxes 150
iii) Operating Surplus 740
iv) Compensation of Employees 1,400
v) Net Factor Income from Abroad 40
vi) Mixed Income of Self Employed 1,000
vii) Net Domestic Fixed Capital Formation 500
viii) Change in Stock (-) 100
ix) Depreciation 100
x) Private Final Consumption Expenditure 2,000
xi) Government Final Consumption Expenditure 1,000
17. From the following data about a government budget, find- 6
a) Revenue Deficit
b) Fiscal Deficit
c) Primary Deficit
Particulars (In Arab)
Tax Revenue 47
Capital Receipts 34
Non-Tax Revenue 10
Borrowings 32
Revenue Expenditure 80
Interest Payments 20
Or
A)Explain "reallocation of resource" objective of govt. budget.
B)Differentiate between revenue receipts and capital receipts.
SECTION B (INDIAN ECONOMY)
18. Read the following statements - Assertion ( and Reason (R). 1
Assertion (A) Many public sector undertaking incurred huge losses due
to operation inefficiencies.
Reason (R) Red-tapism was one of the reasons for continuation of
such enterprises.
Select the correct alternative from the following
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
b)Both Assertion (A) and Reason (R) are true and Reason (R) is not the
19. The measures undertaken by Indian Government to promote growth 1

in agricultural sector can be broadly categorized as
a. Green Revolution
b. Land Reforms
c. Both a. and b.
d. None of these
Or
What is the benefit that the domestic industries get by reduction in
the tariff?
20. Read the following statement Assertion (A) and Reason(R). Choose 1
one of the correct alternatives given below.
Assertion (A): Great leap forward was during China’s second five year
plan from 1958-1962.
Reason(R) :China wanted to industrialize, and modernize the economy
in the shortest amount of time
Alternatives:
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not
d. Assertion (A) is false but Reason (R) is true
Or
When did China announce its first Five Year Plan?
21. In India, ____ accounts for the largest share in the livestock 1
a. Cattle and Buffaloes
b. Poultry
c. Sheep and Goats
d. None of the above
22. Introduction of Economic Reforms in Pakistan took place in 1
a. 1978
b. 1980
c. 1988
d. 1991
23. The period between ____ is known as ‘ Golden Revolution Period’ 1
a. 1991-2001
b. 1991-2003
c. 1993-2001
d. 1990-2003
24. In China, commune system is related to 1
a. Agriculture
b. Industry
c. Service
d. Informal
25. When was the term “Sustainable Development” came into existence? 1
a. 1979
b. 1980
c. 1981
d. 1982
Or
What is organic farming?
26. Who amongst the following has received the greatest investment in 1
human capital formation?
a. A nurse in a clinic who is frequently absent because of his ill health
b. A 12-year-old who helps her mother with construction work
c. A 10th pass girl who works as a store manager in a mall
d. A computer science graduate who works at a call centre
27. Which of the following countries initiated its process of Economic 1
Reforms in the year 1991?
a. Pakistan
b. India
c. Russia
d. China
28. “Recently Indians have drifted away from the traditional knowledge 3
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?
Or
State and discuss any environmental concerns faced by India in the
present times .
29. Differentiate between Human Capital and Physical Capital. 3
30. Evaluate the various factors that led to the rapid growth in economic 4
development in China.
31. What do you understand by drain of Indian wealth during the colonial 4
period?
32. Discuss the concept of Informalisation of workforce in India. 4

Or
Explain why less women are found in regular salaried jobs?
33. Bring out the importance of Animal Husbandry, Fisheries and 6
Horticulture as a source of diversification.
or
"The Green revolution would have favoured the rich farmers only if
the state did not play an extensive role in ensuring that the small
farmer also gains the new technology." Do you agree with the above
statement ? Give valid reasons in support of your answer.
34. What were the factors that led to decline of industrial sector in India 6
.What were the conditions of handicrafts industries at the Time of
Independence?
SAMPLE PAPER SET-15
CLASS – XII SUBJECT: ECONOM ICS
TIME: 3 HOURS MM:80

possible
Q.N. SECTION: A MACRO ECONOMICS M.M. 40 MARK
1. Calculation of National Income at Market Prices is known as _________ 1

(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these.
2. The central bank can increase the availability of credit by: 1

(A) Raising repo rate
(B) Raising reverse repo rate
(C) Buying government securities
(D) Selling government securities
Read the following case study paragraph carefully and answer the questions on the basis of 1
the same. The Reserve Bank of India raised inflation forecasts on the back of higher oil and
other raw materials while it maintained the growth forecast at 9.5% for FY22 despite anemic
investment demand. Governor Shaktikanta Das said inflation measured by the consumer price
index (CPI) might remain close to the upper tolerance band of 6% up to September expecting
easing of pressure thereafter on kharif harvest arrivals. [RBI has fixed inflation rate target in
between 2%-6 %.] The central bank projected CPI at 5.7% for FY22 compared to its earlier
projection of 5.1%. “The supply-side drivers could be transitory while demand-pull pressures
remain inert, given the slack in the economy. A pre-emptive monetary policy response at this
stage may kill the nascent and hesitant recovery that is trying to secure a foothold in
extremely difficult conditions,” Das said. Crude oil prices are volatile with implications for
imported cost pressures on inflation, RBI said. “The combination of elevated prices of
1 | Page
industrial raw materials, high pump prices of petrol and diesel with their second-round effects,
3. and logistics costs continue to impinge adversely on cost conditions for manufacturing and
services, although weak demand conditions are tempering the pass-through to output prices
and core inflation
Why does RBI fix the inflation target?

a) To make growth process fast.
b) To make coordination with government.
c) To manage exchange rate.
d) To stabilize economy
Statement I : Inflationary gap is the gap showing excess of current aggregate demand over
aggregate supply at the level of full employment
Statement II : Fiscal policy is the policy of the central bank of a country to control money
supply.
(i) Both the statements are true.
(ii) Both the statements are false.
(iii) Statement I is true and Statement II is false
(iv) Statement II is true and Statement I is false
5. Foreign exchange transactions which are independent of other transactions in the Balance of 1
payment accounts are called :
(a) Current transactions
(b) Capital transactions
(c) Autonomous transactions
(d) Accommodating transactions
Assertion (A): Presence of autonomous consumption expenditure ensures that increase will
definitely increase in initial phases of development.
Reason (R): Due to Autonomous consumption expenditure, Aggregate demand is always

greater than income in initial phases due to which income and output increases in the initial
level.
Alternatives:
7. Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As 1
a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal
propensity to consume in such a case would be ______
2 | Page
(A) 0.8
(B) 0.6
(C) 0.2
(D) 0.4
Or
If in an economy, the value of investment multiplier is 2 and Autonomous Consumption is ₹
80 Crore, the relevant saving function would be :
a) S=80+0.50Y b) S=(-)80+0.50Y
c) S=80-0.50Y d) S= (-)80-0.2Y
Assertion (A): If a family's marginal propensity to consume is 0.70, then it will necessarily
consume seven-tenths of its total income.
Reason (R): Average Propensity to Consume represents the ratio of absolute consumption
expenditure to the corresponding level of income.
Alternatives:
Read the following hypothetical text and answer the 9 & 10 questions: -
9 India's foreign exchange reserves have jumped by $100 billion in 10 months to a record high of
$534.5 billion. The rise has been led by strong foreign fund inflows recently and decline in
import bill due to dip in crude oil prices and trade impact following COVID-19 pandemic.
Reduced imports of gold also cut down India's import bill.
Import of Petroleum from Iran will be mentioned: 1

a) Credit side of Capital Account
b) Debit side of Capital Account
c) Credit side of Current Account
d) Debit side of Current Account
Or
From the set of statements given in column I and column II, chose the correct pair of
statements:
Column I Column II
(a) Export of software to France (i) Debit side of current

account
(b) Import of Machinery from (ii) Capital Account of
3 | Page
China Balance of Payments
(c) Remittances to relative (iii) Debit side of Current

staying abroad Account of Balance of
Payments
(d) Investment by Apple phones (iv) Credit side of Current

firm in India Account of Balance of
Payments
10 Increase in import duty of gold will lead to: 1
a) Reduction in import of gold

b) Import of gold will increase
c) No effect on import of gold
d) Outflow of Foreign Exchange
11. Giving reason, explain whether the following are included in domestic product of India. 3
i. Profits earned by a branch of foreign bank in India.
ii. Payment of salaries to its staff by an embassy located in New Delhi.
iii. Interest received by an Indian resident from its abroad firms.
12. What is meant by appreciation and depreciation of domestic currency? 3

OR
Distinguish between Autonomous and Accommodating items of the balance of payments.
13. Bring out the role of Central Bank as the controller or money supply or credit. 4
OR
Explain the effect of an increase in bank rate on credit creation by commercial banks
14. Discuss relationship between MPC and multiplier. 4
15. The saving function of an economy is S = −200 + 0.25Y. The economy is in equilibrium when 4
income is equal to 2000. Calculate
a. Investment expenditure at equilibrium level of income

b. Investment multiplier
16 Explain how ‘distribution of gross domestic product’ is a limitation in taking domestic product 6
as an index of welfare.
17 Classify the following receipts into revenue receipts and capital receipts. Give reasons in 6
support of your answer.
(i) Recovery of loans.
(ii) Interest received on loans.
(iii) Dividend received from public enterprises.
(v)Grants from foreign government.
OR
Governments across nations are too much worried about the term fiscal deficit”. Do you think
4 | Page
that fiscal deficit is necessarily inflationary in nature? Support your answer with valid reasons.
Q.No SECTION: B INDIAN ECONOMIC DEVELOPMENT M.M. : 40 MARK

.
18 Which of the following is not an element of fiscal reforms? 1
(a) Taxation reforms
(b) Public expenditure reforms
(c) Change in interest rate
(d) Control on public debt
Or
Policy of ‘Import substitution’ was targeted to protect ___________ indusdries.
a) Foreign
b) Domestic
c) Village
d) Small scale
Assertion (A): Growth and social justice is the central objective of Indian plans.
Reason (R): India opted for planning to utilize available resources efficiently and to
establish social justice.
Alternatives:
20 There are two statements given below; Read the statement and choose the correct option. 1
Statement I : Land degradation is cause due to soil erosion and water logging.
Statement II : deforestation is the major cause of soil erosion.
A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true and Statement II is false
D. Statement II is true and Statement I is false
OR
There are two statements given below; Read the statement and choose the correct option.
Statement I : water and soil pollution are two major environment concern in India
Statement II : the seminal report- our common future give the definition to sustainable
development.
Read the following carefully and answer questions no.21-22 on the basis of the same:
5 | Page
In agriculture, due to long time gap between crop sowing and realisation of income, farmers
are in strong need for credit. Farmers need money to meet initial investment on seeds.
fertilisers, implements and other family expenses of marriage, death, religious ceremonies,
etc. So, credit is one of the important factors, which contribute to agricultural production. An
efficient and effective rural credit delivery system is crucial for raising agricultural productivity
and incomes.
21 Which one of the following is not a non-institutional source of credit? 1
(a) Money lenders
(b) Co-operative Credit
(c) Trader and commission agents
(d) Land development bank
22 In the Industrial Policy Resolution of 1956, industries were classified in ……………. Categories. 1
(a) Two (b) three (c) four (d) five
Or
In 1955, Karve committee was constituted for aiming the ……………..
(a) Modernization (b) Industrial development
(c ) Development of small scale industries (d) Self-reliance
Assertion (A): Rural people not only face problems with regard to finance, but also
encounter difficulties in marketing their goods.
Reason (R): Agriculture Marketing’ needs urgent attention in the scheme of securing
rapid rural development.
Alternatives:
OR
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
Assertion (A): Rapid expansion of the banking system had a positive effect on rural farm and
non-farm output, income and employment.
Reason (R): The institutional credit arrangement continues to be inadequate as they have
failed to cover the entire rural farmers of the country.
Alternatives:
6 | Page
Statement I : In all three sectors, service sector is emerging as a major player of development.
Statement II : Pakistan growth is contributed by the manufacturing and service sector.
Statement I : urbanisation is high in china.
Statement II : China has the second largest GDP in the world
E. Both the statements are true.
F. Both the statements are false.
G. Statement I is true and Statement II is false
H. Statement II is true and Statement I is false
26 Which of the following countries has the Highest density of population? 1
(A) China (B) India
(C) Pakistan (D) None of these
27. Which of the following statements is true in relation to Pakistan, India and China? 1
A. Pakistan is ahead both of India and China in terms of the total population
B. Pakistan is ahead both of India and China in terms of the rate of urbanization
C. Pakistan is ahead both of India and China in terms of the density of population
D. Pakistan is ahead both of India and China in terms of the fertility rate
28. "The gap between the growth of GDP and Employment is widening." State the trend 3
Which highlight this phenomenon?
29. You are residing in a village. If you are asked to advise the village panchayat, what 3
kinds of activities would you suggest for the improvement of your village which
would also generate employment.
OR
What is seasonal unemployment? Suggest measures for reducing this kind of
Unemployment in India.
30. What were the objectives behind Trade and Investment Policy reforms? 4
OR
Explain the occurrence of events which led to introduction of economic reforms in India..
Read the following hypothetical text and answer the given questions:
Sustainable development is the synonymous in the minds of many with the colour green and
for good reasons. Twenty years ago, at the First Earth Summit at Rio de Janerio, in Brazil,
world leaders set out what today is conventional wisdom: SOCIAL AND ECONOMIC HUMAN
PROGRESS - cannot be divorced from environmental protection unless both are advanced
together, both will flounder together. Sustainable development is as much about health,
education and jobs, as it is about the ecosystems. It is about ever widening inclusion and
movement away from decisions that erode democratic space and do not address social
inequality, intolerance, and violence. Sustainable Development is about changes that
transform impoverished people, communities, and countries into informed, educated healthy
and productive societies. It is about wealth creation that generates equality and opportunity.
Sustainable Development is about consumption and production patterns that respect
7 | Page
planetary boundaries; it is also about increasing tolerance and respect for human rights at all
levels. Building on human development legacy that oriented with Economists like Amartya
Sen and Mahbub Ul Haq and was captured by the first Human Development Report in 1990.
United Nations Development Programme (UNDP) has long promoted alternative approaches
to measure human progress, along with the Human Development Index (HDI). Today, we are
building on this legacy by exploring how to adjust the index to reflect environmental
sustainability, so that governments and citizens might better track real progress towards truly
sustainable development. This must be our collective objective.
31 As per the UNDP Report education and health are the broader issues of human development. 4
How to tackle this problem in India?
32 Explain the Great Leap Forward campaign of China as initiated in 1958. 4
33 While subsidies encourage farmers to use new technology, they are a huge burden on 6
government finances. Discuss the usefulness of subsidies in light of this face.
34 Establish the need for acquiring information relating to health and education expenditure for 6
the effective utilisation of human resources.
OR
Explain the various self-employment and wage generation programmes initiated by the
government to solve the problem of unemployment.
8 | Page

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कें द्रीय विद्यालय संगठन

KENDRIYA VIDYALAYA SANGATHAN

क्षेत्रीय कायाालय, जम्मू, नज़दीक राजकीय विककत्सालय, गााँधी नगर

PARTA 10x1 2X3 3X4 2X6 40(

PARTB 10x1 2X3 3X4 2X6 40(

2020 580 460

Part A- Macro Economics

(b) Import of Machinery from (ii) Capital Account of

(c) Remittances to relative (iii) Debit side of Current

(d) Investment by Apple phones (iv) Credit side of Current

11 Compute National income from the following data

12 Distinguish between Autonomous and accommodating transactions in balance of 3

(i) Capital value of the asset 5,000

(ii) Estimated life of the asset 40 years

(iii) Scrap value nil

17 Identify the following as Revenue expenditure or capital expenditure. Give reason 6

(A) Introduction of economic (i) 1949

(B) Establishment of People’s (ii) 1953

(C) The Commune system in (iii) 1978

(D) Great Leap Forward (iv) 1958

(a) A- i (b) B-ii

Source: world development indicators 2019, www.worldbank.org

TIME: 3 HOURS MM:80

● This question paper contains two sections:

Section A – Macro Economics

Section B – Indian Economic Development

Q.N SECTION: A MACRO ECONOMICS M.M. : 40 MARK

2. Calculate money multiplier, if legal reserve ratio LRR is 0.4. 1

Assertion (A): Deficient Demand leads to underemployment equilibrium.

Reason (R): During deficient demand, equilibrium is determined at a level of full-employment

7. C= 100+0.75y, saving function will be .............. 1

15. In an economy, C=100+0.8Y is the consumption function, where C is consumption 4

Q.No SECTION: B INDIAN ECONOMIC DEVELOPMENT M.M. : 40 MARK

(i) (i),(iii),(ii),(iv) (ii) (iv),(iii),(ii),(i)

21 How is government expenditure on education expressed? 1

Q. No. SECTION A –MACRO ECONOMICS MARKS

Reason (R) Recession in an economy leads to fall in demand as compared with

Assertion (A) Currency held by public is a monetary liability of central

Reason (R) Central bank controls credit, whereas commercial banks

6 If income increases from 2,500 to 3900 and autonomous investment by 350, 1

8 Write the correct pair : 1

Codes (a) A-(i) (b) B—(ii) (c) C-(iii) (d) D-(iv)

A. Visible items (1) Items consisting of capital

B . invisible items (2) All types of physical goods

C .Capital transfers (3) All types of services

Write the correct sequence of options in Column II by matching them will

16 a) ‘ Real Gross Domestic Product is a better indicator of economic 3

a) ‘ Mission Develop India’ is the plan of government to create basic

SECTION B—INDIAN ECONOMIC DEVELOPMENT

Reason (R) Reforms in India focused upon development of industries , which

25 Environment is defined as they totality of all biotic and abiotic resources . 1

Country Annual growth rate of Gender Ratio (Per

Q.NO SECTION A – MACRO ECONOMICS MAR

4 Another name of Flexible exchange rate system is 1

17 Answer the following:

21 Unemployed people are calculated as

22 Commune System started by China was related with which sector

Q.NO SECTION A – MACRO ECONOMICS MARKS

4 Statement 1: Depreciation of domestic currency leads to rise in exports 1

13 Explain working of Investment Multiplier with the help of numerical example 4

14 Explain determination of equilibrium income with the help of saving and 4

4 In 2020, India's purchasing power parity was 22 national currency units 1

5 Which of the following is an example of a public good? 1

7. Demand deposits include_ and__. 1