Students must start practicing the questions from CBSE Sample Papers for Class 12 Economics with Solutions Set 11 are designed as per the revised syllabus.
CBSE Sample Papers for Class 12 Economics Set 11 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. _____ demand for money refers to the demand for money to cover the needs of an individual.
(Choose the correct alternative)
(a) Transaction
(b) Precautionary
(c) Speculative
(d) None of these [1]
2. Subsidies are ____ in government budget.
(Choose the correct alternative)
(a) revenue expenditure
(b) capital expenditure
(c) revenue receipt
(d) capital receipt
OR
The difference between fiscal deficit and interest payments is known as:
(Choose the correct alternative)
(a) Primary deficit
(b) Revenue deficit
(c) Budget deficit
(d) Borrowing deficit [1]
3. Export of machinery to Germany will be recorded in the:
(Choose the correct alternative)
(a) Debit side of current account of BOP
(b) Credit side of current account of BOP
(c) Debit side of capital account of BOP
(d) Credit side of capital account of BOP [1]
4. Look at the figure carefully and answer the following question:
Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as ______
(a) Note
(b) Money
(c) Goods
(d) None of the above
5. The difference between fiscal deficit and interest payments is known as:
(Choose the correct alternative)
(a) Primary deficit
(b) Revenue deficit
(c) Budget deficit
(d) Borrowing deficit [1]
6. In which account of BOP, tourism services to tourist are included?
(Choose the correct alternative)
(a) Current account
(b) Capital account
(c) Unilateral transfers
(d) None of these [1]
7. Money supply constitutes money held by public and _____
(a) Demand deposits
(b) Interbank deposits
(c) Time deposits
(d) Both (b) and (c) 1
8. Autonomous consumption = Rs.100
Marginal propensity to consume = 0.70
National income = Rs.1000
From the following above data, the consumption expenditure wilt be:
(a) 600
(b) 100
(c) 800
(d) 1200
OR
If in an economy, Marginal Propensity to Consume (MPC) = 08.
Change in Initial Investment (DI) = Rs. 4,000 crores The value of investment multiplier is ____.
(a) 5
(b) 7
(c) 9
(d) 12
9. Read the statements carefully and choose the correct alternative from the following:
Statement 1: High revenue deficit leads to inflationary situation in the economy.
Statement 2: The revenue deficit is managed by borrowings, or disinvestment.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and statement 2 is false.
(d) Statement 2 is true and statement 1 is false. [1]
10. Identify the correct formula from the following: (Choose the correct alternative)
(a) Money Creation = \(\frac{1}{\text { LRR }}\)
(b) Money Multiplier = \(\frac{1}{\text { LRR }}\)
(c) Initial Deposit = \(\frac{1}{\text { LRR }}\)
(d) Credit Creation = 
11. Distinguish between marginal propensity to consume and average propensity to consume. [3]
12. In an economy, which is in equilibrium,
National Income = ₹ 2,000,
Marginal propensity to save = 0.40 and
Investment expenditure = ₹ 400
Find out autonomous consumption expenditure.
OR
Following is the consumption function in an economy:
C = 25 + 0.8Y,
If the investment level in an economy is ₹ 600 crores, find out:
(A) Equilibrium level of income
(B) APC at equilibrium level
13. Explain the function of central bank as “banker’s bank and act as a supervisor”.
OR
Explain the components of Legal Reserve Ratio. [4]
14. Give arguments in favour of fixed exchange rate. [4]
15. “Fiscal deficit implies greater borrowings by the government.” Explain the implications of higher fiscal deficit. [4]
16. Explain the concept of investment multiplier. What is the range of value of investment multiplier? 6
17. There is a table given below:
Value added through stages of production:
A simple example:
Measurement of natianal income the value added method
Illustrate the following table and diagram and explain value added method. [6]
Section – B (40 Marks)
(Indian Economic Development)
18. When government sells its shares in Public Sector Enterprises to Private Entities, it is known as:
(a) De-nationalisation
(b) Disinvestment
(c) Equity sell off
(d) Joint stock company
OR
_____ and ____ are outside the purview of GST.
(a) Alcohol for human consumption, medicines
(b) Medicines, Electricity
(c) Electricity, Alcohol for human consumption
(d) LPG, CNG [1]
19. Who introduced the One child norm in China?
(a) Deng Xiaoping
(b) Vladimir Lenin
(c) Mao Zedong
(d) Karl Marx [1]
20. Read the following Statement-Assertion (A) and Reason (R). Choose one of the correct alternatives given below: Assertion (A): The role of Reserve Bank of India (RBI) is reduced from regulator to facilitator of financial sector.
Reason (R): The economic reforms of 1991 brought major changes in finance 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 carefully and choose the correct alternatives given below:
Statement 1: Monocropping relates to a shift of workforce from agriculture to other allied activities.
Statement 2: Diversification provides employment options to rural people.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and statement 2 is false.
(d) Statement 2 is true and statement 1 is false. [1]
22. Arrange the following events of India in chronological order and choose the correct alternative:
(I) Indo Pak War
(II) Industrial policg resolution
(III) First world bank mission
(IV) Second Five year plan
(a) (I), (II), (III), (IV)
(b) (III), (IV), (II), (I)
(c) (IV), (I), (III), (II)
(d) (IV), (III), (II), (I)
23. From the given statements in column I and II choose the correct pair of statement:
| Column 1 | Column II |
| (I) Land reforms | (A) Fixing the maximum limit of land holding for on individual |
| (II) Marketed surplus | (B) Portion of agricultural produce sold in the market |
| (III) Land ceiLing | (C) Financial inclusion to ensure access to financial services |
| (IV) Jhan Dhan (D) yojana | (D) Change In the ownership of Land |
(a) (I)—A
(b) (II)—B
(c) (III)—C
(d) (IV)—D [1]
24. Small farmers and seasonal workers are examples of ____ poor.
(Fill in the blank with correct alternative)
(a) Churning
(b) Chronic
(c) Usually
(d) Urban [1]
25. The farmers suffered from weighing and of accounts.
(Choose the correct alternative)
(a) correct, discrepancy
(b) over, manipulation
(c) under, correction
(d) faulty, manipulation [1]
26. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Public Distribution System (PDS) is a major programme that aim at improving the food and nutritional value of the poor.
Statement 2: Food for work programme was launched in 1984 – 85 to provide nutritional food to the poor.
Alternatives :
(a) Both the stetement are true.
(b) Both the statements are false.
(c) Statement 1 is true and statement 2 is false.
(d) Statement 1 is false and state 2 is true.
27. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: The government has launched National Social Assistance Programme to help young people and provide employment to them.
Statement 2: Prime Minister Rozgar Yojana (PMRY) provide financial assistance to elderly people who do not have anyone to take care of them.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and statement 1 is false.
OR
Those people who are rich most the times but may have a bad patch of luck sometimes are known as _____.
(Choose the correct alternative)
(a) Chronic poor
(b) Transient poor
(c) Churning poor
(d) None of these [1]
28. Neeraj and Pankaj had an argument on the topic of globalisation. Neeraj said that globalisation is a threat as it reduces the role of the state in many sectors while Pankaj counter argued that it is an opportunity as it opens up the markets to compete in and capture. From the above discussion, explain your views whether “globalisation is a threat or blessing”. [3]
29. Interpret the given figure and explain three different types of GST.
OR
Discuss in brief how the industrial sector was regulated before 1991 economic policy reforms? [3]
30. You are making a research project on Green Revolution and its impact. In your project, you not only talked about the positive points associated with it, but also the risks that are there in its implementation. What are those? Discuss both. [4]
31. China’s rapid industrial growth can be tracked back to its reforms in 1978. Do you agree? Elucidate. [4]
32. What is the difference between labour force and work force?
OR
Why are regular salaried employees more in urban areas than in rural areas? [4]
33. “In 1950’s Government identified various PSE’s and declare them as maharatnas, navratnas and miniratnas “in order to improve efficiency, more professionalism and enable them to compete effectively in liberalised world”. Discuss. [6]
Read the following case carefully and answer the questions given below:
Some economists have projected that India will become the third biggest economy in the world a few decades from now. For that to happen, India will have to boost its infrastructure investment. In any country, as the income rises, the composition of infrastructure requirements changes significantly. For low-income countries, basic infrastructure services like irrigation, transport and power are more important. As economies mature and most of their basic consumption demands are met, the share of agriculture in the economy shrinks and more service related infrastructure is required. This is why the share of power and telecommunication infrastructure is greater in high-income countries. Thus, development of infrastructure and economic development go hand in hand.
Agriculture depends, to a considerable extent, on the adequate expansion and development of irrigation facilities. Industrial progress depends on the development of power and electricity generation, transport and communications. Obviously, if proper attention is not paid to the development of infrastructure, it is likely to act as a severe constraint on economic development.
34. (A) “Some economists have projected that India will become the third biggest economy in the world a few decades from now. For that to happen, India will have to boost its infrastructure investment.” Explain the importance of infrastructure in the light of this statement.
(B) “The share of power and telecommunication infrastructure is greater in high-income countries.” Why? [6]