CBSEGuess.

com

SAMPLE QUESTION PAPER-2022-23

CLASS-XII
ECONOMICS (030)

Time Allowed: 3 hours Maximum Marks: 80

General Instructions:
i) All questions are compulsory
ii) Marks for questions are indicated against each.
iii) Question No, 1-10 in Section A and 17-24 in Section B are questions carrying 1 mark each. They are
required to be answered in one word or one sentence.
iv) Question No 9-12 in Section A and 25-28 in section B are short answer questions carrying 3 marks each.
Answers to them should not exceed 60-80 words.
v) Question No 13-14 in Section A and 29-30 in Section B are short answer questions carrying 4 marks
each. Answers to them should not exceed 80-100 words.
vi) Question No 15-16 in Section A and 31-32 in section B are long answer questions carrying 6 marks.
Answers to them should not exceed 100-150 words.
vii) Answers should be brief and to the point. Also, the above word limit be adhered to as far as possible.
viii) Graphs& Diagrams are to be labelled properly and drawn neatly.

Qu SECTION-A (MACROECONOMICS) Marks

No
1 Are the following statements true or false ? Give reasons. 1
i. M1 includes time deposits of commercial banks.
ii. Money supply does not include money held by government and
banking system.
iii. Credit money refers to that money which is taken from banks as a
loan.
iv. Money is a commodity.

2 --------------- refers to that investment which remain constant, even if there is 1

increase in income.

3 State the following statement is true or false. Give reason 1

“The central bank sells government securities to increase the
availability of credit.’
4 Read the following statements: Assertion (A) and reason(R). Choose the 1
correct alternatives given below
Assertion (A): Autonomous items cause movements of goods and

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

services across the borders.

Reason (R): Accommodating items cause to clear the deficit or surplus in BOP.
a) Both Assertion (A) and Reason (R) are true, (R) is correct
explanation of (A).
b) Both Assertion (A) and Reason (R) are true but (R) is not correct
explanation of (A).
c) Assertion (A) is true and Reason (R) is false.
d) Assertion (A) is false and Reason (R) is true.

5 An economy is at full employment and AD is greater than AS, what will be the 1
impact on price level in such an economy?
a) Rise
b) Fall
c) Constant
d) None of the above
6 Read the following Statements carefully and choose the correct alternatives 1
from the following:
Statement 1: Public good are those goods and services that are collectively
consumed by the public
Statement 2: Public goods are excludable and rivalrous in nature
Alternatives:
a) Both statements are true
b) Both statements are false
c) Statement 1 is true and Statement 2 is false
d) Statement 1 is false and Statement 2 is true

7 Write the correct pair: 1

Column I Column II
1:GDP of a country a) Absolute measures of welfare
2: Underestimation of GDP b) Non-monetary exchanges
excluded
3: Base Year c) Year of current price
4: GDP deflator d) Real GDP/Nominal GDPx100
Codes: a) 1-a b) 2-b
c) 3-c d) 4-d
8 Read the following hypothetical text and answer the given questions: - 1

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

Each nation has its own currency when monetary transactions are
conducted within the national borders, payments are made in the
currency of that country for example Indian currency is called rupee. To
be more exact it is called Indian rupee payments within the national
borders of India are made in Indian rupees. Similarly, each other nation
has its own currency for example Pakistan currency is called Pakistani
rupee USA currency US dollar Kuwait currency Kuwaiti Dinar UAE
currency dirham and so on payments within the nation borders of
Pakistan are made in Pakistani rupees’ payment within the national
border of USA is USA dollars, etc. When transactions are conducted
across National borders one currency must be converted into another.
Conversion rate between twocurrencies is decided by two ways first
fixed exchange rate second floating or flexible exchange rate.
a: Give the meaning of foreign exchange rate.
b. refers to a system in which exchange rate for a currency is
determined by the market forces.
9 An increase of Rs 200 crores in investment leads to rise of Rs 700 crores in the 1
national income, then the value of multiplier is-------------.

10 Identify which of the following statement is true. 1

a) The difference between planned revenue expenditure and planned
revenue is called fiscal deficit.
b) The difference between total planned revenue expenditure and total
planned revenue is called fiscal deficit.
c) The difference between total planned receipt expenditure and interest
payment is called primary deficit.
d) The sum of primary deficit and interest payment is called fiscal deficit.

11 Government provides essential items of food grains almost free to the families 3
below the poverty line. Which objective the government is trying to fulfill
through its budget and how? Explain.
OR
Suppose you are a member of the’ Advisory Committee to the Finance
Minister of India.’’ What suggestion would you like to give to the committee to
reduce the revenue deficit?
12 Explain the components of Net factor income from abroad. 3
13 Discuss the function of Central bank as ‘Banker’s bank and supervisor. 4

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

14 ‘Rise in reserves of India’s foreign exchange is a sign of our rising exports.’ Do 4

you agree? Justify.
OR
What will be effect of the following on the BOP?
a) Make in India
b) Import of food grains
15 In an economy C=200+0.8Y and I=600. Calculate the following: 4
a) Equilibrium level of income
b) Multiplier
c) Break-even level of income
d) Consumption expenditure at equilibrium level of income

16 Discuss the working of adjustment mechanism in the following situation. 3+3

a) If AD is greater than AS
b) If ex-ante investments are less than ex-ante savings.
17 Calculate GNPmp 3+3
Particulars Rs in
crores
i) Private Final Consumption 1000
Expenditure
ii) Net factor income to abroad (-) 10
iii) Net domestic fixed capital 150
formation
iv) Depreciation 30
v) Net imports 20
vi) Closing stock 40
vii) Government Final consumption 300
Expenditure
viii) Opening stock 50
B) Are the following included in National income? Give reason.
i) Profit earned by a foreign company/bank in India.
(ii) Free medical facilities by the employer.
(iii) Interest paid by an individual on a car loan taken from a bank
SECTION-B (INDIAN ECONOMIC DEVELOPMENT)
18 Choose the correct pair from the following 1
A) One child Norm i) India
B) Dual price system ii) Economic Reform in China

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

C) LPG model of growth iii) Peoples republic of China

D)Communal system of production iv) Pakistan
19 Read the following statements: Assertion (A) and reason(R). Choose the 1
correct alternatives given below
Assertion (A): The health hazard that have occurred due to degraded
environmental quality has been huge.
Reason (R): There has been exponential rise in the expenditure on health.
a)Both Assertion (A) and Reason (R) are true, (R) is correct explanation of (A).
b)Both Assertion (A) and Reason (R) are true but (R) is not correct explanation
of (A).
c)Assertion (A) is true and Reason (R) is false.
d)Assertion (A) is false and Reason (R) is true.

20 Write the correct pair: 1

Column I Column II
1:Regular workers a) Daily wages
2: Wage employment b) Uses his own resources to earn
wages
3: Formal workers c) Can form trade unions
4: Seasonal unemployment d) More workers are working
than actually required
Codes: a) 1-a b) 2-b
c) 3-c d) 4-d

21 Arrange the following events in chronological order & choose the 1

correct alternatives.
i) Great leap forward
ii) Creation of Pakistan
iii) First five- year plan of India
iv) Economic reform introduced in China

Alternatives:
a) i, iv, ii, iii
b) iii, ii, i, iv
c) ii, iii, i, iv
d) i, ii, iii, iv

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

22 Which of the following was NOT a goal of the Five Year Plans? 1
a) Growth
b) Equality
c) Self- reliance
d) Modernization

23 Read the following Statements carefully and choose the correct alternatives 1
from the following:
Statement 1: Contribution made by British in India has been totally negative.

Statement 2: “Indian handicraft industry enjoyed worldwide reputation before

the British rule”
Alternatives:
a) Both statements are true
b) Both statements are false
c) Statement 1 is true and Statement 2 is false
d) Statement 1is false and Statement 2 is true

24 1

Observe the above picture & answer the following questions:

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

i) Which one of the following is a major source of livelihood for both men and
women?
a) Self-employed b) Regular salaried employees
c)Casual wage labourers d) None of the above
ii) Which one of the following is more popular among men in compared to
women?
a) Self-employed b) Regular salaried employees
c)Casual wage labourers d) None of the above

25 China surpassed India and Pakistan in ........................sector of the economy. 1

(Choose the correct alternative)
(a) primary (b) manufacturing
(c) tertiary (d) None of these

26 Which of the following is NOT included in agricultural marketing? 1

a) Assembling
b) Storage
c) Transportation
d) Labelling

27 Identify which of the following statement is the correct difference between 1

physical & human capital
a) Physical capital can be sold but human capital cannot be sold.
b). Physical capital cannot be separated from its owner while human capital
can.
c) Physical capital provides both private &social benefits while human capital
provides only social benefits.
d)The depreciation of physical capital can be arrested with more investment
while human capital will continue to deplete.

28 Women participation less in regular salaried sector. Defend the statement 3

with valid arguments.
29 ‘‘Sustainable development is a process to be taken as a daily life activity.’’ 3
Establish the rationale of the given statement with valid reasons.
OR
Increase in air, noise & water pollution has an adverse effect on environment
and causes environmental degradation. As an aware citizen what do you think
should be done to minimise degradation.

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

30 Compare and analyse the following information related to trends in sectoral 4

output growth of the three neighboring nations

31 Briefly discuss the various problems of human capital formation. 4

32 a) Explain the Tax Reforms in India in 1991. 4
b) Elucidate Foreign Trade Reforms in India under new economic policy.
OR
Give the meaning of Demonetisation. Briefly explain any three negative
impacts on the Indian economy.

33 6
Critically evaluate the industrial development during the period of 1950-1990.
.
34 Read the following hypothetical text and answer the given questions: - (3+3)
a)Rural Development is the key issue with the government. Without the
development of rural areas India cannot increase its growth to desired level.
Rural development does not mean only to develop its agriculture marketing
and credit but also to develop education, training, and infrastructure in rural
areas. The government has launched many programs especially of provision of
credit and marketing facilities. The farmers often have shortage of funds.
Farmers generally go to non-institutional sources for their short term and
long-term loans. But farmers are generally exploited. To help them
government started provided loan through commercial banks and an apex
bank named NABARD was established in the 80’s. Government is also making
efforts to improve agricultural marketing by removing the role of
intermediaries where farmers can directly sell their produce to seller without
involving any commission agent or middlemen.
i)1.Name the Non-institutional sources of credit
(a) NABARD (b) RRB
(c)Traders and commission agents (d) All of above
2.NABARD is established in the year
a) 1982 b) 1988 c)1928 d)1985

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News
 CBSEGuess.com

3. Non-farm activities are promoted by government for:

(a)regular income to farmer (b) addressing the problem of disguised
unemployment
(c) reducing pressure on land (d) All of the above
ii) Explain three benefits of organic farming

OR
a)How does expenditure on migration leads to human capital formation ?
b) Argue in favour of the need for different forms of government intervention
in education and health sectors.

--------------------------------------------------------------------------------------------------------
CBSE Sample Papers | CBSE Guess Papers | CBSE Practice Papers | Important Questions | CBSE PSA | CBSE OTBA |
Proficiency Test | 10 Years Question Bank | CBSE Guide | CBSE Syllabus | Indian Tutors | Teacher' Jobs CBSE eBooks |
Schools | Alumni | CBSE Results | CBSE Datesheet | CBSE News