Scribd
Upload
99 views4 pages

Mock Test - 2024-25-gr12-MACRO ECONOMICS

This document is a practice paper for Class XII Economics at Bright Riders School, Abu Dhabi, dated December 4, 2024. It includes multiple-choice questions and descriptive questions covering various topics in introductory macroeconomics. The paper is structured into sections with a total of 40 marks and a time allowance of 1.5 hours.

Uploaded by

May Haruka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
99 views4 pages

Mock Test - 2024-25-gr12-MACRO ECONOMICS

This document is a practice paper for Class XII Economics at Bright Riders School, Abu Dhabi, dated December 4, 2024. It includes multiple-choice questions and descriptive questions covering various topics in introductory macroeconomics. The paper is structured into sections with a total of 40 marks and a time allowance of 1.5 hours.

Uploaded by

May Haruka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

BRIGHT RIDERS SCHOOL, ABU DHABI

PRACTISE PAPER- 1(2024-25)


CLASS: XII
DATE: 04-12-2024 MAX. MARKS: 40
SUBJECT: ECONOMICS TIME ALLOWED: 1 1/2Hours

SECTION-A
INTRODUCTORY MACRO ECONOMICS

1. Under _______ exchange rate system, the Central Bank and Government of the country do not have any
authority to interfere in the exchange rate determination. (Choose the correct alternative to fill in the
blank) (1)

(A) fixed (B) floating (C) managed floating (D) gold standard

2. ___________ is the total volume of money held by the public, for the purpose of disposing off, at a
particular point of time. (Choose the correct alternative to fill in the blank)

(A) Term deposits (B) Demand for money (C) Money supply (D) Credit creation . (1)

3. Read the following statements carefully:


Statement 1: Gross National Product (GNP) can be greater than Gross Domestic Product (GDP) in a
two-sector economy.
Statement 2: Net factor income from abroad is zero in a two-sector economy.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.

4. Keeping all other factors constant, trade surplus may arise in the Balance of Payments of a
nation because of ________. (Choose the correct alternative to fill in the blank) (1)
(A) rise in export of coffee to Japan
(B) fall in import of banking services
(C) fall in exports of cereals
(D) rise in remittances to abroad

5. Suppose in a hypothetical economy, the Central Bank increases the reserve ratio from 10% to
25%. Keeping the amount of initial deposits constant at ₹ 1,000 crore, the amount of total
money creation would be ₹_______ crore. (Choose the correct alternative to fill in the blank) (1)
(A) 10,000 (B) 4,000 (C) 6,000 (D) 5,000

Page 1 of 4
6. Identify, which of the following options exhibits the proportional relation between consumption and
disposable income. (1)
(A) Marginal Propensity to Consume (MPC) /Average Propensity to Consume (APC)
(B) Marginal Propensity to Consume (MPC) < Average Propensity to Consume (APC)
(C) Marginal Propensity to Consume (MPC) = Average Propensity to Consume (APC)
(D) Marginal Propensity to Consume = 1

7. In an economy, break-even level of income can be determined, when _______.


(i) Marginal Propensity to Consume (MPC) = Marginal Propensity to Save (MPS)
(ii) Income (Y) = Consumption (C)
(iii) Savings (S) = 0
(iv) Average Propensity to Consume (APC) = Average Propensity to Save (APS)
(Choose the correct alternative to fill in the blank) . (1)
Alternatives:
(A) Only (i)
(B) (i) and (ii)
(C) (ii) and (iii)
(D) (i) and (iv)

8. The ___________ account of Balance of Payments reflects the net changes in financial claims on the
Rest of the World (ROW). (Choose the correct alternative to fill in the blank) (1)
(A) Trade (B) Capital (C) Current (D) Visible

9. For a hypothetical economy, it is known that:


Average Propensity to Save (APS) = 0.4
Income (Y) = ₹100 crore
Autonomous Consumption (C) = ₹ 10 crore
The value of investment multiplier would be __________. (Choose the correct alternative to fill in the
blank) (1)

(A) 5 (B) 2 (C) 4 (D) 10

10. Read the following statements carefully:


Statement 1: Average Propensity to Consume (APC) represents the change in total income with
respect to a given change in total consumption.
Statement 2: When income changes, change in consumption (∆C) can never exceed the change
in income (∆Y).
In the light of the given statements, choose the correct alternative from the following: (1)
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.

Page 2 of 4
11. On the basis of the given data, estimate the value of Net Value Added at Factor Cost (NVAFC). (3)

12. “Devaluation of currency and depreciation of currency have the same implications, but they originate
from divergent sources.”
Do you agree with the given statement? Give valid reason in support of your answer. (3)
OR
Outline the meaning and reasons behind narrowing down of Current Account Deficit.

13. Assume the following for a hypothetical economy:


(i) Autonomous Consumption Expenditure (C) = ₹ 25 crore
(ii) Marginal Propensity to Save (MPS) = 0.1
(iii) Level of Income (Y) = ₹ 2,000 crore
(iv) Autonomous Investment (I) = ₹ 25 crore
Is the economy in equilibrium situation? Justify your answer with valid calculations.: (4)
OR
“When ex-ante Aggregate Demand (AD) falls short of ex-ante Aggregate Supply (AS) it results
in fall in unintended inventories.”
Defend or refute the given statement, giving valid arguments.
14. “The Reserve Bank of India (RBI) performs the same function for the government as the commercial
banks perform for the general public.”
Discuss briefly any two such functions performed by the Central Bank for the Government of India. (4)

15. Study the following image: (1+3)

Page 3 of 4
(i) Identify the indicated situation.
(ii) Explain any two steps which may be taken by RBI to correct the situation.

16. Answer the following:


(3+3)
a. Differentiate between stock variables and flow variables with suitable example.
b. “Externalities can be classified into negative or positive, however it is not necessary that they
will be directly correlated with the Gross Domestic Product.”
Do you agree with the given statement? Give valid reasons in support of your answer.

17. Answer the following questions: ( 4+2)


I. “The Union Budget 2023 – 24 had proposed an allocation of ₹ 22,138 crore to the Micro, Small and
Medium Enterprise (MSME) Ministry.” Identify and explain the objective that the government is
trying to achieve with the proposed expenditure.
II. State the formulae for calculating fiscal deficit and revenue deficit.

OR (3+3)
(i) “Tax revenues, an important component of revenue receipts, can be further classified into two
categories.” Imagine yourself as a member of Department of Revenue of the Government of India.
Help your friend to identify and differentiate between the two categories of taxes.

(ii) “A budget can be deficit, surplus or balanced.” Do you agree with the given statement? Give valid
reasons in support of your answer.

**********************************************************************

Page 4 of 4

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy