Professional Documents
Culture Documents
QP Economics
QP Economics
(जम्मू संभाग )
SAMPLE PAPER
FOR CLASS XII
ECONOMICS (030)
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
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
TOTAL 20(
20) 4(
12) 6(
24) 4(
24) 34
QUESTI
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each. Answers to them should
normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each. Answers to them should
normally not exceed 100 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
4 Read the following statements carefully: 1
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:
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
5 Read the following statements carefully: 1
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:
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
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
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.
10 Read the following statement -Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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:
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.
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.
In the light of the given statements, choose the correct alternative:
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
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.
In the light of the given statements, choose the correct alternative:
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
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
26 Read the following statement -Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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
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.
27 Read the following statement -Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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
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.
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.
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-2
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as
possible
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
explanation for Assertion (A).
(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.
(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
explanation for Assertion (A) .
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
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.
(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
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 ₹ 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
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.
(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 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.
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)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not 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.
Column I Column II
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.
26 Read the following statements carefully and choose the correct alternative: 1
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.
(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.
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.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
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
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.
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-3
CLASS – XII SUBJECT: E CONOMICS
General Instructions:
● 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.
(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
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
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
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.
(a) Credit side of current account
(b) Debit side of current account
(c) Credit side of capital account
(d) Debit side of capital 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.
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.
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.
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.
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
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-4
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each.
Answers to them should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each.
Answers to them should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be adhered
to as far as possible
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.
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:
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
4 Read the following statements Assertion (A) and Reason (R). Choose one of 1
the correct alternatives given below
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 :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
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
OR
3
Column 1 Column II
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
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
10 Read the following statements Assertion (A) and Reason (R). Choose one of
the correct alternatives given below
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
correct explanation of Assertion (A)
(f) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(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
5
Do you agree with the given statement ? support your answer with valid
reasons.
b) Explain Externalities as a limitation of welfare?
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.
(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.
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.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
23 Read the following statements Assertion (A) and Reason (R). Choose one of 1
the correct alternatives given below:
Assertion (A) Lack of training in farming activity leads to low productivity and
growth of agriculture in India .
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
24 Read the following statements Assertion (A) and Reason (R). Choose one of 1
the correct alternatives given below:
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
correct explanation of Assertion (A)
(f) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(g) Assertion (A) is true, but Reason (R) is false
(h) Assertion (A) is false, but Reason (R) is true
(i) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(j) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of Assertion (A)
(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
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
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-5
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each.
Answers to them should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each.
Answers to them should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be
adhered to as far as possible
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?
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
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-6
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each.
Answers to them should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each.
Answers to them should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be
adhered to as far as possible
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each.
Answers to them should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each.
Answers to them should normally not exceed 100 words each.
● 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
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.
3 Read the following statements carefully-Assertion (A) and Reason (R) and 1
choose the correct alternative:
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.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation for Assertion (A).
1
b. Both Assertion (A) and Reason (R) are true but Reason (R) is not 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.
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.
(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
Supply.’’
16 a. Find GNPFC 4
v. Deprecation 1,100
Indian Economy
18 Read the following statements carefully-Assertion (A) and Reason (R) and 1
choose the correct alternative:
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.
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
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.
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
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
27 The main aim of “Great Leap Forward’ was to ensure rapid increase in 1
________ (Primary/Secondary/Tertiary) sector of China.
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)
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.
7
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-8
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as
possible
QN SECTION_A Marks
2 Define trade balance. Read the following statements - Assertion (A) and Reason (R). 1
Choose one of the correct alternatives given below:
Assertion (A): Depreciation of domestic currency leads to rise in exports.
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.
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:
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
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
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
Income(Y) Consumption(C)
उपभोग MPS APS
0 80 -- --
200 -- -- 0
400 -- 0.8 --
15 Explain the process of credit creation by commercial Banks with the help of numerical 4
example? OR
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
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
alternatives given below:
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:
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
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.
24 India entered the …………………………..stage of Demographic Transition after the year 1921. 1
(Choose the correct alternative)
forth b. second c. third d. first
Or
Or
27 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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:
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
28 Discuss briefly the concept of 'informalisation of workforce', in the context of Indian 3
economy.
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
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.
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-9
CLASS – XII SUBJECT: ECONOMICS
TIME: 3 HOURS MM:80
SECTION A
1. Which of the following steps should be taken by central bank to boost demand 1
in the economy during deflationary gap?
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
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.
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
ii Sales 3500
v Exports 400
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.
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
V Rent 250
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
OR
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.
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.
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
30 China's rapid industrial growth can be traced back to its reforms in 1978.Do 4
you agree? Elucidate.
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.
SECTION A
OR
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.
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 externalities with the help of an example.
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.
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.
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?
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
SECTION B
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.
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.
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.
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.
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.
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.
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.
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-11
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as
possible
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.
(a) Both Assertion (A) and Reason (R) are true 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 Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
(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
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.
(a) Both Assertion (A) and Reason (R) are true 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 Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
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.
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)
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
explanation of Assertion (A).
[b]Both Assertion (A) and Reason (R) are true and Reason (R)is not 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.
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 .
[a] Both Assertion (A) and Reason (R) are true 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 Assertion (A).
5
[c] Assertion (A) is true but Reason (R) is false.
[d]Assertion (A) is false but Reason (R) is true.
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 .
[a] Both Assertion (A) and Reason (R) are true 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 Assertion (A).
[c] Assertion (A) is true but Reason (R) is false.
[d]Assertion (A) is false but Reason (R) is true.
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
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-12
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
● Answers should be brief and to the point and the above word –limits should be adhered to as far as
possible
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
explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R)is not 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.
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
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.
(a) Both Assertion (A) and Reason (R) are true 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 Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
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)
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 .
(a) Both Assertion (A) and Reason (R) are true 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 Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
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 .
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
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.
(OR)
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
4
OR
A. India b. China
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
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
explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
OR
What is casualization of work force?
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
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
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-13
CLASS – XII SUBJECT: ECONOMICS
General instructions
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.
● Questions No. 13-15 and 30-32 are short-answer questions carrying 4 marks each.
Answers to them should normally not exceed 70 words each.
● Questions No. 16-17 and 33-34 are short-answer questions carrying 6 marks each.
Answers to them should normally not exceed 100 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. QUESTIONS MARKS
SECTION A (MACRO ECONOMICS)
1. C=100+0.75y Saving Function will be ______ 1
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
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
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
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?
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?
KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-15
CLASS – XII SUBJECT: ECONOM ICS
General instructions
6. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): Presence of autonomous consumption expenditure ensures that increase will
definitely increase in initial phases of development.
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
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
8. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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:
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
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.
Column I Column II
3 | Page
China 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
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.
19 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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:
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
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.
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
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
23 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
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:
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
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
OR
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
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:
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
6 | Page
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True
24. There are two statements given below; Read the statement and choose the correct option. 1
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.
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
25. There are two statements given below; Read the statement and choose the correct option. 1
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