Page 1 NODIA Sample Paper 2 CBSE Economics Class 12

Sample Paper 2
ECONOMICS (030)
Class XII Session 2023-24
Time: 3 Hours Max. Marks: 80
General Instructions:
1. This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Section A -Macro Economics 3. Read the following figure carefully and choose the
correct pair from the alternatives given below:

Multiple Choice Questions (Q1 to Q10) 1 ´ 10=10

1. Read the following statements carefully:

Statement 1: A tax system that is progressive applies
higher tax rates to higher levels of income.
Statement 2: A regressive tax is one where the average
tax burden decreases with income.
In the light of the given statements, choose the correct
alternative from the following:
(a) Statement 1 is false and statement 2 is true
(b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false
(d) Both statements 1 and 2 are true

2. Assertion (A): Highway and road works announced (a) A - Revenue expenditure; B - Fiscal deficit
in Kerala, Tamil Nadu, West Bengal and Assam in (b) A - Revenue expenditure; B - Fiscal budget
budget 2021. (c) A - Capital budget; B - Revenue expenditure
Reason (R): Such announcement will increase (d) A - Revenue expenditure; B - Capital budget
revenue expenditure of the government.
Choose one of the correct alternatives given below:
(a) Both Assertion (A) and Reason (R) are true and 4. “Fiscal policy is a tool used by the government
Reason (R) is not the correct explanation of to stabalise the economy and promote economic
Assertion (A) growth.”
How does fiscal policy aim to stabilise the economy?
(b) Both Assertion (A) and Reason (R) are true and
(a) By controlling interest rates
Reason (R) is the correct explanation of Assertion
(A) (b) By regulating international trade
(c) Assertion (A) is false but Reason (R) is true (c) By managing government spending and taxation
(d) Assertion (A) is true but Reason (R) is false (d) By controlling the money supply

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Page 2 NODIA Sample Paper 2 CBSE Economics Class 12

5. While financing a deficit, under which measure (c) 50, 200, 0.50
government can print more currency? (d) 200, 50, 0.50
(a) Disinvestment
(b) By issuing bonds
9. The shackles of agriculture during the colonial rule
(c) Deficit financing was permanently broken by the given revolution that
(d) None of these resulted from the application of_______.
(i) High Yielding varieties (HYV)
6. On the basis of the given bars, identify the percentage (ii) mechanisation of agriculture
change in the collection of GST in February 2019-20 (iii) chemical fertilisers and pesticides
(iv) organic fertilisers and pesticides
Codes
(a) (i), (ii) and (iv)
(b) (i), (ii) and (iii)
(c) (ii), (iii) and (iv)
(d) (i), (iii) and (iv)

10. Current account is in ‘Balance’ when______.

(a) Receipts on current account < payments on
current account
(b) Receipts on current account > payments on
(a) Negative (b) 8.5% current account
(c) 8.10% (d) 8.20% (c) Receipts on current account = payment on current
account
(d) None of these
7. Flow of Goods and Services and factors of production
across different sectors in a barter economy is known
as:
Short Answer Questions (Q11 to Q12) 3´2=6
(a) Monetary Flow
(b) Circular flow
11. “Foreign Institutional Investors (FIIs) remained net
(c) Capital Flow seller in the Indian capital markets over the last few
(d) Real flow weeks”. —The Economic Times
State and discuss the likely effects of the given
8. Find the missing figures and choose the correct option. statement on foreign exchange rate with reference to
the Indian Economy.
Income C o n s u - TC TY MPC
mption (Marginal
12. Calculate intermediate consumption from the
Propensity
following:
to
Consume) (` in lakhs)
0 300 –– –– –– (i) Value of output 2,000
200 350 50 ...(i)... 0.25 (ii) Depreciation 40
400 400 ...(ii)... 200 0.25 (iii) Subsidy 10
600 450 50 200 ...(iii)... (iv) Sales tax 30
800 500 50 200 0.25 (v) Net Value Added at factor cost 1,600
Alternatives

o
(a) 50, 200, 0.25 If the Real GDP is `300 and Nominal GDP is `330,
(b) 200, 50, 0.25 calculate the Price Index (base = 100).

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Page 3 NODIA Sample Paper 2 CBSE Economics Class 12

Short Answer Questions (Q13 to Q15) 4 ´ 3 = 12 regulates the issue and supply of the Indian rupee. It
also looks after the central government’s money. The
central bank plays the role of the bankers’ bank and
13. Explain the concept of ‘Excess demand’ with the help
regulates the banking sector. It also plays an important
of a diagram.
role in India’s development story by supporting
the government in its developmental projects and
14. Explain the concept of ‘deficient demand’ with the policies.
help of a suitable diagram.


o
Explain any one fiscal and two monetary measures to Section B -Indian Economic Development
correct the deflationary gap.

Multiple Choice Questions (Q18 to Q27) 1 ´ 10=10
15. Explain the concept and working of multiplier with
the help of a suitable schedule. 18. Statement 1: Environment is able to perform its
functions easily as long as the demand on these

Long Answer Questions (Q16 to Q17) 6 ´ 2 = 12 functions is within its carrying capacity.
Statement 2: The Environment (Protection) Act was
in passed 1990.
16. (a) Distinguish between stock and flow variables In the light of the given statements, choose the correct
with suitable examples. alternative from the following:
(b) Calculate Gross Domestic Product at factor cost (a) Statement 1 is false and statement 2 is true
from the following data:
(b) Statement 1 is true and statement 2 is false
(Z in (c) Both statements 1 and 2 are false
crores) (d) Both statements 1 and 2 are true
(i) Gross national product at 3,750
factor cost
19. Assertion (A): Disguised unemployment is present
(ii) Compensation of employees 2,000 in India.
(iii) Net exports (—)50 Reason (R): Agricultural productivity at the margin
(iv) Profit 700 is close to zero.
(v) Net domestic capital formation 1,000 In the light of the given statements, choose the correct
alternative from the following:
(vi) Opening stock 150
(a) Both Assertion (A) and Reason (R) are true and
(vii) Closing stock 200 Reason (R) is not the correct explanation of
(viii) Gross fixed capital formation 1,050 Assertion (A)
(ix) Interest 600 (b) Both Assertion (A) and Reason (R) are true and
(x) Rent 400 Reason (R) is the correct explanation of Assertion
(xi) Factor income from abroad 20 (A)
(c) Assertion (A) is false but Reason (R) is true


o
Explain the precautions that should be taken while (d) Assertion (A) is true but Reason (R) is false
estimating national income by value added method.
20. Jobless growth leads to unemployment because:
17. Read the following text carefully and discuss briefly (a) GDP growth is slow
the relevant function of the Central Bank, indicated. (b) Labour refuses to migrate
The Reserve Bank of India (RBI) is the central bank (c) Growth is due to technology
of India whose primary function is to manage and (d) Labour is very expensive
govern the financial system of the country. It is a
statutory body established in the year 1935 under the
Reserve Bank of India Act, 1934. The central bank 21. “Green revolution was a major reason of rise in
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Page 4 NODIA Sample Paper 2 CBSE Economics Class 12

productivity of farming”. What is/ are the advantage(s) countries. Select the reason(s) for the same.
of conventional farming methods?
(a) Higher output
(b) Cost effective
(c) Wider range
(d) All of these

22. Due to the recent efforts of which international body

the Indian government, initiated the modernization of
informal sector?
(a) WTO
(b) World Bank
(c) G-20
(d) International Labour ganisation (a) Leads to managerial interference
(b) Leads to unemployment in their country
23. When extraction is above the rate of regeneration of (c) Neither (a) nor (b)
the resource and the wastage are outside the absorptive (d) Both (a) and (b)
capacity of the environment, then environment fails
to perform its one of the vital function. What is that
function? 27. From the set of events/systems given in Column I
(a) It supplies resources and corresponding relevant fact given in Column II,
choose the correct pair of statement:
(b) It assimilates waste
(c) It sustains life Column I Column II
(d) It provides aesthetic services A. Economic reforms in (i) 1988
China
B. Great Leap Forward (ii) 1968
24. Along with horticultural crops, golden revolution
Campaign
caused an increase in the production of_______.
(a) milk C. Great Proletarian Cultural (iii) B e t w e e n
(b) honey Revolution 1980 - 1984
(c) livestock D. Special Economic Zones (iv) 1975
(d) dry fruits Alternatives:
(a) C - (iii)
(b) D - (iv)
25. Small Finance Banks had mobilised deposits of
82,488 crores and extended credit of 90,576 crores (c) A - (i)
to small and marginal farmers and Micro, Small and (d) B - (ii)
Medium Enterprises (MSMEs) by the end of FY
2019-20. How will it affect the economy?
(a) Economic strengthening of rural areas
Short Answer Questions (Q28 to Q29) 3´2=6
(b) Financial inclusion of people
(c) Growth of MSMEs and agriculture sector become 28. Elaborate the exploitative nature of the colonial
faster government in India with the help of suitable
examples.
(d) All of these

26. From the given image, it is clear that outsourcing 29. Why were the benefits of Green Revolution restricted
from India is not always an advantage for developed to few states and few crops in initial stages of

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Page 5 NODIA Sample Paper 2 CBSE Economics Class 12

planning? Place of Workforce (in millions)

o Residence Male Female Total
How did the government promote regional equality in
industrial development? Rural 125 69 195
Urban 32 7 39

Short Answer Questions (Q30 to Q32) 4 ´ 3 = 12

34. Read the following text carefully and answer the
given questions on the basis of the same and common
30. (a) Interpret the given picture on account of current understanding:
environmental challenges. The China-Pakistan Economic Corridor (CPEC) has
deepened the decades-long strategic relationship
between the two nations. But it has also sparked
criticism for burdening Pakistan with mountains of
debt and allowing China to use its debt-trap diplomacy
to gain access to strategic assets of Pakistan.
The foundations of CPEC, part of China’s Belt and
Road Initiative, were laid in May 2013. At the time,
Pakistan was reeling under weak economic growth.
China committed to play an integral role in supporting
Pakistan’s economy.
Pakistan and China have a strategic relationship that
goes back decades. Pakistan turned to China at a time
when it needed a rapid increase in external financing
to meet critical investments in hard infrastructure,
particularly power plants and highways. CPEC’s
early harvest projects met this need, leading to a
(b) What do you mean by biocomposting? How is it dramatic increase in Pakistan’s power generation
helpful in promoting sustainable development? capacity, bringing an end to supply-side constraints
that had made rolling blackouts a regular occurrence
across the country.
31. Evaluate the role of the rural banking system in India. Pakistan leaned into CPEC, leveraging Chinese


o financing and technical assistance in an attempt to
“Is it possible to develop Information Technology as end power shortages that had paralysed its country’s
an alternate livelihood option”? Give reasons. economy. Years later, China’s influence in Pakistan
has increased at an unimaginable pace.
32. Enlist all the factors involved in the introduction of China as Pakistan’s Largest Bilateral Creditor:
the economic reforms by way of the announcement China’s ability to exert influence on Pakistan’s
of the New Economic Policy (NEP). economy has grown substantially in recent years,
mainly due to the fact that Beijing is now Islamabad’s
largest creditor. According to documents released by

Long Answer Questions (Q33 to Q34) 6 ´ 2 = 12 Pakistan’s Finance Ministry, Pakistan’s total public
and publicly guaranteed external debt stood at $44.35
33. Suggest measures to make the rural areas in India billion in June 2013, just 9.3 per cent of which was
more vibrant (Include two success stories of rural owed to China. By April 2021, this external debt had
development experiments carried out in India). ballooned to $90.12 billion, with Pakistan owing 27.4


o per cent - $24.7 billion - of its total external debt to
The following table shows distribution of workforce China, according to International Monetary Fund
in India for the year 1972-73. Analyse it and give (IMF).
reasons for the nature of workforce distribution. Additionally, China provided financial and technical
expertise to help Pakistan build its road infrastructure,

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Page 6 NODIA Sample Paper 2 CBSE Economics Class 12

expanding north-south connectivity to improve the

efficiency of moving goods from Karachi all the
way to Gilgit-Baltistan (PoK). These investments
were critical in better integrating the country’s ports,
especially Karachi, with urban centers in Punjab and
Khyber-Pakhtunkhwa provinces.
Despite power asymmetries between China and
Pakistan, the latter still has tremendous agency in
determining its own policies, even if such policies
come at the expense of the long-term socio- conomic
welfare of Pakistani citizens.
(a) Outline and discuss any two economic advantages
of China Pakistan Economic Corridor (CPEC)
accruing to the economy of Pakistan.
(b) Analyse the implication of bilateral ‘debt-
trap’ situation of Pakistan vis-a-vis the Chinese
economy.


******

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