[Latest] Best 15+ CBSE Economic Sample Paper Class 12 | 2024

Last updated on July 13th, 2024 at 10:06 pm

Economics Sample Paper Class 12

Section – A

1. Read the following statement and answer carefully:

Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.

Statement 2: Aggregate demand curve runs parallel to supply curve.

(A) Statement 1 is true and statement 2 is false.

(B) Statement 1 is false and statement 2 is true.

(C) Items 1 and 2 are correct.

(D) Both statements 1 and 2 are incorrect.

2. When subsidies are greater than indirect taxes

(A) GDPmp = GDP fc

(B) GDPmp > GDP fc

(C) GDPmp < GDP fc

(D) None of the above

3. Which of the following may be more than one: (Select the correct option to fill in the blank)

(A) Marginal propensity to consume

(C) Marginal propensity to save

(B) Average propensity to consume

(D ) Average propensity to save

4. Supply problems, also affected by the Russia-Ukraine crisis, caused international oil prices to rise due to supply side issues.

Find out below what will most affect the balance of payments of the Indian economy.

(A) Indian automobile production will increase.

(B) Bicycle production and sales will increase in India.

(C) Inflow of US Dollars in India will rise.

(D) Outflow of US Dollars from India will rise.

5. “Mr. Salvish cannot find a buyer for his remaining milk, which could be exchanged for cloth.”

What kind of money will solve this problem?

(A) Medium of exchange

(B) Unit of account

(C) Store of value

(D) Means of standard of deferred payments

6. Fill out the form:

LRR    Coin Multiplier

10%    —-

20%    —-

25%    —-

Alternatives:

(A) 10, 20, 25 

(B) 10,3,4

(C) 25, 20,10

(D) 4,5,10

7. If the increase in national income is equal to the increase in consumption, determine the value of the marginal propensity to save

Saving

(A) equals to unity

(B) greater than one

(C) less than one

(D) equals zero

8. Determine the country’s foreign exchange capital.

I. Export

II. Lending to abroad

III. Foreign investment

IV. Import

(A) I and II

(B) II and III

(C) I and III

(D) IV only

9 . If the amount of investment in the economy is 4 and personal consumption is 300 million rupees, the relevant benefit is:

(A) C = 30 + 0.75 Y

(B) C = (-) 30+ 0.25 Y

(C) C = 30-0.25 Y

(D) C = 30-0.75 Y

10. Read the following carefully and choose the correct option.

(A) (i)-BOP (ii) BOT

(B) (i)- Debit (ii)- Receivable

(C) (i)- Current Account (ii)- Capital Account

(D) (1)- Fixed (ii)- Flexible

11. “Make in India project has resulted in the increase in MNCs to India. MNCs have invested their capital and promoted employment in the country. This has led to appreciation of domestic currency”

Do you agree with the above statement? Give reasonable reasons to support your answer.

12. Suppose there are only two firms, A and B, in a hypothetical market. Company A sells its inventory for $1,000. If the fixed capital is 200, Company B exports 2,500 goods and sells the domestic goods at the market price.

OR

Please explain the following:

(i) Capital goods

(ii) Real GDP

(iii) Value output

13. If an economy plans to increase its income by 2,000 crore and the Marginal Propensity to Consume is 75%, estimate the increase in investment required to achieve the targeted increase in income.

14. What happens to sales and income in business when planning to save is less than planning to invest?

OR

According to the following news published by The Economic Times on December 26, 2021:

‘Reserve Bank of India has sold government securities worth 78,710 crore in the secondary market, over the last four weeks, to drain out excessive liquidity.

What can be the causes and consequences behind this decision of the RBI?

15 There is a difference between the readiness rate and the credit creation rate. Do you agree with the given statement? Explain your answer with suitable examples.

16. (A) On the basis of the given information, calculate the value of:

(i) Fiscal deficit

(ii) Primary deficit

Total receipts = 4,000 cr

Capital expenditure = 6,500 cr

Revenue expenditure =1,000 cr

Borrowings = 550 cr

Interest paid=  5% of fiscal deficit

(B) Why are National saving certificates issued by the government is a capital receipts?

Or

(A) Distinguish between government’s revenue receipts and capital receipts, with examples. 

(B) “The government recently decided to increase direct taxes and subsidies.” What are the reasons and consequences of the government’s evaluation of this measure?

17. (A) Give an appropriate explanation of how each of the following items should be considered when estimating household income?

(i) Interest on the vehicle loan received from the company.

(ii) Interest on vehicle loan taken by the company

(B) “Gross domestic capital formation is always greater than gross domestic fixed capital formation.”. Do you agree with the above statement? Give reasonable reasons for your answer.

Section – B

18. Which of the following shows the negative aspects of British policy in India:

(A) Introduction of communication network in India

(B) Change in composition of India’s foreign trade

(C) Introduction of modern administrative system in India

(D) Introduction of railways in India

19 . China’s economy is increasingly dependent on:

(A) Primary industry

(B) Secondary industry 

(C) Tertiary industry

(D) None 

20. There are two theories about the changes in India’s industrial structure from 1950 to 1990.

P: Agriculture accounted for the majority of GDP at the beginning of this period.

Q: Increasing agricultural development during this period led to an increase in the share of agriculture in GDP at the end of the period.

Which of the following statements is correct?

(A) Only P 

(B) Only Q 

(C) P and Q 

(D) Neither P nor Q

21. Examine the picture below and answer the questions:

This is the need of the hour as the picture shows the great impact of the environment.

(A) Use of renewable resources

(B) Use of traditional knowledge

(C) Use of LPG and CNG

(D) All of the above

22. Read the following statements: Assertion (A) and reason (R). Select the correct option.

Assertion (A): India has successfully implemented its product promotion policy.

Reason (R): The reported remittances are a result of the Indian economy taking place

(A) Both the (A) and (R), (R) is the correct explanation of (A)
(B) Both the claim (A) and the reason (R) are true, but the reason (R) is not true of the claim (A).

(C) (A) is true but (R) is false.

(D) (A) is false, but why (R) is true.

23. India is not a member of the following regional/world trade groups:

(A) SAARC 

(B) BRICS 

(C) G-7 

(D) G -20

24. Identify which of the following are non-institutional sources of credit in India:

(i) Money lender

(ii) NABARD

(iii) Commercial banks

Alternatives:

(A) (i) and (ii)

(B) only (i)

(C) (i) and (iii)

(D) Only (ii)

25. Number of people living in the city

(A) Economic indicator (B) Liberal indicator

26. Read the following statement carefully:

Statement 1: Unemployment and poverty are twins.

Statement 2: Unemployment is the root of all economic evil. 

(A) Statement 1 is true and Statement 2 is false.

(B) Statement 1 is false and Statement 2 is true.

(B) Statement 1 is false and statement 2 is true.

(C) Items 1 and 2 are both correct.

27. From the set of the events given in column I and corresponding nations given in Column II, choose the correct pair:

Column-I

(A) Highest per capita income

(B) Double digit growth rate

(C) Economic reforms in 1988

(D) Economic reforms introduced due to external pressure

Column-II

(i) India

(ii) India

(iii) Pakistan

(iv) China

Alternatives:

(A) A-I

(B) B-II

(C) C-III

(D) D-IV

28. Land boundaries promote equality. Support instructions with practical explanations.

Or

“Institutional reforms have played a significant role in transforming Indian agriculture.” Prove the above statement with a valid explanation.

29. The Government of India has announced that the government’s New Economic Policy is taking steps to implement this policy at an early stage, which could transform the Indian school system and lead to major changes. Explain the implications of these steps for human resource development.

30. “India, China and Pakistan embarked on the path of development at the same time but followed different paths in terms of contribution to GDP and employment.” Cite valid references to support your answer.

31. Explain whether the following statements are true or not and give arguments:

(A) Human capital and human development are the same thing.

(B) There is a shortage of human resources in India.

“Wage employment is an important aspect of employment in rural India.” Argument.

32. Identify the type of job described in the given diagram. Name three features of this type of work with reference to India.

33. (A) “The Indian economy has changed since the second half of the 19th century.” Share these statements and give reasons to support your answer.

(B) “Indian economy revived after 1991.” Discuss the logic behind this statement.

OR

(A) “For effective planning in the country, growth and justice must be achieved simultaneously.” Follow these words.

(B) “The Green Revolution achieved food self-sufficiency, but it also brought new problems to farmers.

Do you agree with this statement? no? Answer

34. Read the following text carefully:

Sustainable development is synonymous in the minds of many with the color green and for good reasons.

Twenty years ago, at the First Earth Summit at Riode 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 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 MahbubUl 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.

On the basis of the given text and common understanding, answer the following questions:

(A) Why is sustainable development needed?

(B) Briefly explain the concept of sustainable development from the above situation.

Final Words

From the above article you have learnt cbse class 12 Economics sample paper. By solving this Economics sample paper class 12 you will certainly be benefited in your final board exam.