Students must start practicing the questions from CBSE Sample Papers for Class 12 Economics with Solutions Set 9 are designed as per the revised syllabus.
CBSE Sample Papers for Class 12 Economics Set 9 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. _______ refers to the ratio of change in the consumer’s expenditure due to the change in disposable income.
(a) MPS
(b) MPC
(c) APC
(d) APS
OR
From the given options in column I and II choose the correct pair of option:
| Column I | Column II |
| (i) MPC | (A) ∆S/∆Y |
| (ii) Autonomous investment | (B) 1/MPS |
| (iii) MPS | (C) Investment expenditure |
| (iv) Investment multiplier | (A) ∆C/∆Y |
Options:
(a) (I)-(D), (II)-(C), (III)-(A), (IV)-(B)
(b) (I)-(C), (II)—(B), (III)—(A), (IV)—(D)
(c) (I)—(A), (II)—(B), (III)—(C), (lV) – (D)
(d) (I)—(A), (lI)—(C), (III)—(B), (IV)—(D)
2. In case of an underempLoyment equilibrium, which of the following is not true?
(a) Aggregate demand is equal to aggregate supply.
(b) There exist excess production capacity in the economy.
(c) Resources are not fully and efficiently utilised.
(d) Resources are fully and efficiently utilised.
3. Borrowings by Indian government from France for infrastructural projects will be shown on the ____ side of _____ account of balance of payments.
(a) credit, current
(b) debit, current
(c) credit, capital
(d) debit, capital
4. After three years of establishment, a firm is at break even level of income. What is the value of saving of a firm?
(a) 0
(b) Negative
(c) Equal to consumption
(d) Can’t be determined [1]
5. Read the following statements—Assertion
(A) and Reason
(R). Choose one of the correct alternatives given below:
(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]
Assertion (A): There is a positive relationship between saving and income.
Reason (R): Savings are positive even at zero level of National Income.
OR
Assertion (A): Full employment does not imply zero unemployment in an economy.
Reason (R): There are certain people in the economy who are both voluntary as well involuntary
6. Read the following statements – Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Purchase of second-hand machinery from abroad is not recorded in a BOP.
Reason(R): The sale and purchase of second-hand machinery from abroad is not included in the estimation of national income.
(a) Both Assertion (A) and Reason (IQ 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]
7. Identify the situation in the given diagram.
The amount of foreign exchange
(a) The Exchange rate
(b) The amount of foreign exchange
(c) Equilibrium under flexible exchange rate
(d) Effect of an increasing demand on exchange rate
OR
Read the following statements carefully:
Statement 1: The difference between sum of credits and sum of debits in the capital account is balance in capital account.
Statement 2: The difference between sum of credits and sum of debits in the current account is the balance in current account.
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]
8. Read the following statements carefully and choose the correct alternative from the following:
Statement 1: Current account is the record of trade in goods and services and transfer payments.
Statement 2: Purchase of foreign goods or imports decreases the domestic demand for goods and services in our country
(a) Statement 1 is true and statement 2 is false.
(b) Statement 2 is true and statement 1 is false.
(c) Both the statements are true.
(d) Both the statements are false. [1]
9. Choose the correct alternative from the following data in terms of pre-Independence Indian economy and that of right after we attained independence:
Statement 1: There was shortage of capital with the private sector.
Statement 2: There was low level of demand for industrial goods because of limited size of the market.
Alternatives:
(a) Statement 1 is true but Statement 2 is false.
(b) Statement 1 is false but Statement 2 is true
(c) Both the statements are true.
(d) Both the statements are false.
10. Read the table given below:
| Initial deposit | 400 |
| Reserve requirements | ? |
| Total deposit | 4000 |
Under the given situation the value of reserve requirements would be ______
(Fill up the blank with correct alternative)
(a) 0.01
(b) 1
(c) 0.1
(d) 0.4
11. “Pradhonmantri Kaushal Vikas Yojana was Launched by the Government to increase working efficiency.” Analyse its impact on Gross Domestic Product (GDP) and welfare of the people.
OR
Calculate Net value added at factor cost with the given data:
| Particulars | ₹ in crores |
| NIT | 20 |
| Purchase of machine | 300 |
| Purchase of intermediate product | 120 |
| Sales | 250 |
| Depreciation | 20 |
| Change in stock | 30 |
12. “Composition of GDP may not be welfare oriented even when the level of GDP tends to rise”. Defend or refute the statement with valid reasons. [3]
13. Can an economy be at equilibrium when there is unemployment in the economy. Explain.
14. Calculate investment expenditure from the following data about an economy, which is in equilibrium.
National income = ₹ 1,000
Marginal propensity to save = 0.20 [4]
15. Giving reason, explain, how should the following be treated in estimation of national income:
(A) Expenditure by a firm on payment of fees to a chartered accountant
(B) Payment of corporate tax by a firm
(C) Purchase of refrigerator by a firm for own use.
OR
Giving reasons, explain how should the following be treated in estimating gross domestic product at market price:
(A) Fees paid to a mechanic by a firm
(B) Interest paid by an individual on a car loan taken from a bank;
(C) Expenditure on purchasing a car for use by a firm. [4]
16. (A) “The government allocate the resources to bring about the welfare of people in the economy.” Discuss.
(B) “By borrowing, the government transfers the burden of reduced consumption on future generations”. Justify. [6]
17. (A) Identify and eleborate the concept in the given diagram.
(B) “Money is a good servant but a bad master”. Explain. [6]
SECTION – B
(Indian Economic Development)
18. “Growth with social justice” is the primary objective of:
(Choose the correct alternative)
(a) Economic planning
(b) Economic development
(c) Economic growth
(d) Economic infrastructure
OR
Suez Canal was opened for transport in _____
(a) 1850
(b) 1853
(c) 1869
(d) 1901 [1]
19. Match the following:
Codes:
(a) (i)-(B), (ii)-(C), (iii)-(d), (iv)-(A)
(b) (i)-(C), (ii)-(D), (HD-(A), (iv)-(B)
(c) (i)-(A), (ii)-(B). (iii)-(C), (iv)-(D)
(d) (i)-(D), (ii)-(B), (iii)-(C), (iv)-(A) [1]
20. One child norm in China was introduced in the year ______. (Choose the correct alternative)
(a) 1958
(b) 1988
(c) 1970
(d) 1968 [1]
21. In 1978, reforms were introduced in ______
(Choose the correct alternative)
(a) Pakistan
(b) China
(c) India
(d) None of these [1]
22. Read the following statements—Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The portion of agricultural produce which is sold by the farmers in the market by the farmers is called marketed surplus.
Reason (R): The Green revolution refers to the large increase in production of food grains resulting from the use of high yielding variety (HYV) seeds
(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]
23. Read the following statements—Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
(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, and Reason (R) is false
(d) Assertion (A) is false, and Reason (R) is true [1]
Assertion (A): Dr. Manmohan singh is widely recognised as the chief architect of liberalisation in India.
Reason (R): Manmohan Singh was the finance minister who formulated the New Economic policy in 1991.
OR
Assertion (A): The main objective of the first five year plan of India was the development of agriculture.
Reason(R): Prior to first five year plan, Indian economy was backward and agriculture based.
24. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Health is not only absence of disease but also the ability to realise one’s potential as well as yardstick of one’s well being.
Statement 2: Health is the holistic process related to the overall growth and development of the nation.
Alternatives:
(a) Both the statements are correct.
(b) Both the statements are incorrect.
(c) Statement 1 is true and statement 2 is false.
(d) Statement 2 is true and statement 1 is false. [1]
25. Human Development Index measures _____ in an economy.
(Fill up the blank with correct alternative)
(a) death rate
(b) birth rate
(c) quality of life
(d) quality of education [1]
26. Which of the following is not needed to achieve sustainable development?
(Choose the correct alternative)
(a) Limiting the human population
(b) Restricted extraction of renewable resources
(c) Control on pollution
(d) Input consuming technological progress [1]
27. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: 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.
Statement 2: In addition to growth, modernisation and selfreliance, equity is also important.
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
The growth rate of per capita output per year during the first half of the 20th century was
(a) 0.7%
(b) 0.5%
(c) 0.6%
(d) 0.10% [1]
28. Depict the given picture.
https://www.bain.com/insights/ innovation-in-indias-rural-economy/ [3]
29. In your opinion, what are the advantages of privatisation to the economy?
OR
“Growth with equity” is more rational and desirable objective of economic planning of a nation.” Explain with reasons. [3]
30. Explain the functions of the environment.
OR
Mention the salient features of unemployment in India. [4]
31. “Analyze and compare the distribution of workforce in rural and urban areas. [1]
32. Differentiate between biotic and abiotic elements of environment. [4]
33. Explain the need and type of land reforms implemented in the agriculture sector in India.
OR
Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial rule. [6]
Read the following case carefully and answer the question given below:
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 atleast 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 mates 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 o person had worked as a daily wage labourer for four months, as on 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.