Students must start practicing the questions from CBSE Sample Papers for Class 12 Economics with Solutions Set 10 are designed as per the revised syllabus.
CBSE Sample Papers for Class 12 Economics Set 10 for Practice
Time Allowed: 3 Hours
Maximum Marks: 80
General Instructions:
- This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development - This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
- This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 80 words.
- This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 100 words.
- This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 150 words.
Self Assessment
Section – A (40 Marks)
(Macro Economics)
1. The proportion of deposits kept by commercial banks as reserves is:
(Choose the correct alternative)
(a) Currency deposit ratio
(b) Reverse repo rate
(c) Cash reserve ratio
(d) Statutory liquidity ratio [1]
2. Foreign exchange reserves are maintained by a country to manage the fluctuations of balance of payments. The reserves increases if:
(Choose the correct alternative)
(a) Government increase taxes
(b) Exports increase remain the same and imports
(c) Imports increase remain the same and exports
(d) (a) and (b) above. [1]
OR
____ is a systematic record of all the economic transactions between one country and rest of the world. (Choose the correct alternative)
(a) Balance of trade
(b) Balance of payments
(c) Government budget
(d) None of these
3. “The government can alter income distribution by making transfer payments and collecting taxes”.
Which function of government budget is this?
(Choose the correct alternative)
(a) Allocation function
(b) Distribution function
(c) Stabilisation function
(d) Public provision [1]
4. _____ issues the currency notes in India.
(Choose the correct alternative)
(a) Finance commission
(b) Nationalised banks
(c) Reserve Bank of India
(d) Any individual or organisation with the permission of the government. [1]
5. From the figure given below :
In the above figure, Who are considered as the owner of factors of production in the circular flow of income?
(a) Firms
(b) Household
(c) Government
(d) Rest of the world
6. Read the following statements— Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Real and money flows are the essence of modern economic activity.
Reason (R) : Factor services flow from household to the producers without which production activity is not possible. Likewise, factor incomes flow from producers to the households without which consumption activity is not possible.
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 false, but Reason (R) is true.
(d) Both the statements are false. [1]
7. Which of the following is the correct method for calculating M2?
(a) M2 = M1 + Post Office saving deposits.
(b) M2 = M1 + Post Office demand deposits.
(c) M2 = M1 + Post Office time deposits.
(d) M2 = M1 + Post Office term deposits. [1]
8. Identify the correctly matched pair of items in column A to that of Column B:
| Column A | Column B |
| (I) Function of a Central bank | (A) Lending money to public |
| (II) Function of Government | (B) Issuing currency notes |
| (III) Function of a Central bank | (C) Control of credit |
| (IV) Function of Government | (D) Creation of credit |
(a) (I) – (A)
(b) (II) – (B)
(c) (III) – (C)
(d) (IV) – (D)
9. If the amount of LRR is 20% and the initial deposit is ₹ 1000 crore, then it will create the total amount of money in the economy equal to
(a) ₹ 6,000 crores
(b) ₹ 5,000 crores
(c) ₹ 7,000 crores
(d) ₹ 8,000 crores 1
10. Read the following statements carefully:
Statement I : M1 and M2 are the narrow concepts of money.
Statement II : We include only liquid assets which are easily acceptable for payments.
Alternatives:
(a) Statement I is true and statement II. is false.
(b) Statement II is true and statement I is false.
(c) Both the statements I and II are true.
(d) Both the statements I and II are false.
11. APC and MPC are two parameters. The value of which parameter can be greater than one and when? [3]
12. An economy is in equilibrium. From the following data, calculate the marginal propensity to save and marginal propensity to consume.
(1) Income = ₹ 20,000
(2) Autonomous Consumption = ₹ 2,000
(3) Consumption Expenditure = ₹ 14,000
OR
In a hypothetical economy, C = 600 + 0.6Y and I = ₹ 800, where C is consumption, Y is income and I is Investment. Calculate the following:
(A) Equilibrium level of income
(B) Consumption expenditure at equilibrium level of income. [3]
13. “Inventory is a stock variable.” Explain.
OR
If real GDP is ₹ 300 and Price Index is 120, calculate nominal GDP. Price Index base is 100. [4]
14. Differentiate between ‘trade deficit’ and ‘current account deficit’. [4]
15. Explain the different concepts of budget deficit. [4]
16. Interpret the given picture
[6]
17. Calculate GDP at factor cost by:
(A) Income method and
(B) Expenditure method:
OR
Are the following items included in national income? Give reasons for your answer.
(A) Construction of a residential building
(B) Vegetables grown in kitchen garden
(C) Stock of raw material left last year
(D) Seeds purchased by farmer. [6]
Section – B 40 Marks
(Indian Economic Development)
18. In _____ economy, only free market determine the supply, demand and prices of the product.
(Choose the correct alternative)
(a) Socialist
(b) Capitalist
(c) Mixed
(d) None of these
19. Match the following.
| Column I (Economies) |
Column II (Infrastructural Needs) |
| (A) Low income economies | (1) Telecommunications and power |
| (B) Developing economies | (2) Health, housing and sanitation |
| (C) Developed economies | (3) Irrigation and transportation |
Codes for A, B and C respectively:
(a) (i) (ii) (iii)
(b) (iii) (ii) (i)
(c) (ii) (i) (iii)
(d) (i) (iii) (ii)
20. Read the following statements – Assertion (A) and Reason (R). Choose one of the alternatives given below
Assertion (A): Dharrnendra is a Restaurant owner and transacts all his business through bank. He has a staff of eight employees whom he pays salaries on regular basis. Ravi is the accountant in his restaurant. Dharmendra pays fair salaries to his employees but do not provide any extra benefits to its employees.
Reason (R): Ravi is employed in the informal sector.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true 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. [1]
21. Read the following statements – Assertion (A) and Reason (R). Choose one of the alternatives given below:
Assertion (A): There are several goods and services that the society needs; however, the private sector does not produce all of them.
Reason (R): Private sector is profit driven.
(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. [1]
22. Which country adopted more rigorous model of growth in 1949 and decided to bring all critical areas of production activity under government control? (Choose the correct alternative)
(a) China
(b) India
(c) Pakistan
(d) None of these [1]
23. Industrial Policy Resolution formed the basis of the second five year plan. In which year was this resolution adopted?
(Choose the correct alternative)
(a) 1947
(b) 1951
(c) 1956
(d) 1955
OR
Legally stipulated maximum size beyond which no individual farmer can hold any land
(a) Tenancy reforms
(b) Abolition of intermediaries
(c) Land consolidation
(d) Land ceiling [1]
24. Choose the correct alternative:
Institutional structure of rural banking does not comprise of ______ (Commercial banks/IDBI). [1]
25. Read the following statements carefully:
Statement I : Economic infrastructure and social infrastructure are interdependent on each other.
Statement II : Infrastructure such as power, water, transport, communication, etc. are used as inputs- for production in the directly productive sector.
Alternatives:
(a) Statement I is true and statement II is false.
(b) Statement II is true and statement I is false.
(c) Both the statements I and II are true.
(d) Both the statements I and II are false. [1]
26. _____ (NABARD / RBI) is the apex institution at national level which provide re-finance facilities to institutions engaged in providing rural credit. (Choose the correct alternative).
27. Read the following statements carefully:
Statement I: There has been a reduction in infant mortality rate in India.
Statement II: Factors contributing to this slowing decline include the lower social, cultural and health status of women in India. Thus, improving female education and nutrition, as well as increasing the use of health services during pregnancy and delivery would lower child mortality.
Alternatives:
(a) Statement I is true and statement II is false.
(b) Statement II is true and statement I is false.
(c) Both the statements I and II are true.
(d) Both the statements I and II are false. [1]
28. How is human development a broader concept as compared to human capital? [3]
29. “Industrial licensing was abolished for all product categories in New Economic Policy, 1991“. Discuss three ways through which industries were regulated before this policy. [3]
30. Compare and contrast the development of India, China and Pakistan with respect to some salient human development indicators.
Some Selected Indicators of Human Development, 2017-2019
Note: * for the year 2011: for the year 2015.
Sources : Human Development Report 2019 and 2020 and Word Development Indicators (www. worldxink.org); Key indicators for Asia and the Pacific 2019. Asian Development Bank (ADB).
31. Discuss the development strategies of Pakistan. [4]
32. “The world is facing some major environmental issues which is a real matter of concern”. Discuss any two such issues.
OR
“Self Helps Groups plays a crucial role in meeting the credit requirements of the poor”. Elucidate. [4]
33. “India follows a mixed economy system to promote welfare of all rather than few”. Discuss. [6]
Read the following case carefully and answer the question:
As per the Census 2001, the Indian workforce is over 400 million strong, which constitutes 39.1 % of the total population of the country. The workers comprise 312 million main workers and 88 million marginal workers (i.e., those who did not work for at least 183 days in the preceding 12 months to the census taking). Sex differential among the number of male and female worker in the total workforce is significant Of the total 402 million workers., 275 million are males and 127 million females. This would mean that 51.7 percent of the total males and 25.6 percent of the total females are workers. The number of female workers is about less than half the number of male workers. In terms of proportion, 68.4 percent of the workers are males and 31.6 percent females.
Among the main workers, female workers, are only 23.3 % and 76.7% are male workers. Majority of female workers (87.3 percent) are from rural areas. This is also twice that of male workers, which may be due to their being employed predominantly in activities like cultivation and agricultural labour. In the urban areas, majority of female workers are engaged in Households industry and other work.
34. (A) “If a person had worked as a daily wage Labourer for four months, as an agricultural labourer for one month”. Identify the type of worker he will be considered?
(B) “The nature of employment in India is multifaceted.” Justify the statement. [6]