Class 12 Economics Official Sample Question Paper (2023-24) | Economics Class 12 - Commerce PDF Download

 Page 1


1 
 
SAMPLE QUESTION PAPER (2023-24) 
ECONOMICS (030)  CLASS XII 
TIME: 3 HOURS                                                                                M.M. – 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 of 1 mark each. 
3. This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 
words. 
4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 
words. 
5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 
words.  
Q.NO. 
SECTION A – MACRO ECONOMICS   
MARKS 
1 
 
Read the following statements carefully: 
Statement 1: Consumption function assumes that, consumption changes at a constant rate as 
income changes. 
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income 
(Y). 
In 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. 
 
 
 
 
 
 
 
 
 
1 
2 For a closed economy (with no foreign trade), which one of the following is correct? 
a) GDP = GNP   b) GDP > GNP 
c) GDP < GNP   d) GDP + GNP=0 
 
 
1 
3 The value of __________ can be greater than one. 
(Choose the correct alternative to fill up the blank) 
a) Marginal Propensity to Consume      b) Average Propensity to Consume 
c) Marginal Propensity to Save            d) Average Propensity to Save 
 
 
 
1 
4 As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022: 
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the 
second quarter (2022-23)" 
The above transaction will be recorded in the _______ account on ______ side of  
Balance of payments account of India.    (Choose the correct alternative to fill up the blanks) 
a) current, credit    b) current, debit 
c) capital, credit    d) capital, debit 
 
 
 
 
 
 
1 
Page 2


1 
 
SAMPLE QUESTION PAPER (2023-24) 
ECONOMICS (030)  CLASS XII 
TIME: 3 HOURS                                                                                M.M. – 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 of 1 mark each. 
3. This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 
words. 
4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 
words. 
5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 
words.  
Q.NO. 
SECTION A – MACRO ECONOMICS   
MARKS 
1 
 
Read the following statements carefully: 
Statement 1: Consumption function assumes that, consumption changes at a constant rate as 
income changes. 
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income 
(Y). 
In 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. 
 
 
 
 
 
 
 
 
 
1 
2 For a closed economy (with no foreign trade), which one of the following is correct? 
a) GDP = GNP   b) GDP > GNP 
c) GDP < GNP   d) GDP + GNP=0 
 
 
1 
3 The value of __________ can be greater than one. 
(Choose the correct alternative to fill up the blank) 
a) Marginal Propensity to Consume      b) Average Propensity to Consume 
c) Marginal Propensity to Save            d) Average Propensity to Save 
 
 
 
1 
4 As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022: 
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the 
second quarter (2022-23)" 
The above transaction will be recorded in the _______ account on ______ side of  
Balance of payments account of India.    (Choose the correct alternative to fill up the blanks) 
a) current, credit    b) current, debit 
c) capital, credit    d) capital, debit 
 
 
 
 
 
 
1 
2 
 
5 “The value of all goods and services can be expressed in monetary units.” 
On the basis of the given statement, identify the function performed by money: 
a) Medium of exchange  b) Store of Value 
c) Unit of account   d) Means of standard of deferred payments 
 
 
 
1 
6 Find the missing figures and choose the correct alternative: 
Round Deposits Loans (80%) Reserve Ratio (20%) 
I 1,000 800 200 
II 800 ….(i)…. 160 
 .. .. .. 
 .. .. .. 
Total …(ii)… …(iii)… …(iv)… 
Alternatives: 
a)  640,1000,4000,5000   b)  960,5000,4000,1000 
c)  640,4000,1000,5000   d) 640,5000,4000,1000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
7 Graphically, Aggregate Demand function can be obtained by vertically adding the 
_________ and _________ function.(Choose the correct alternative to fill up the blanks) 
a) consumption, saving 
b) consumption, investment 
c) investment, saving 
d) aggregate supply, consumption 
 
 
 
 
 
1 
8 Identify the correct reason(s) that may affect the demand for foreign exchange in an 
economy. 
I. Imports of visibles 
II. Exports of invisibles 
III. Remittances by residents working abroad 
IV. Purchase of assets abroad 
Alternatives: 
a)  I and II        b)  II and III 
c)  III and IV    d) I and IV 
 
 
 
 
 
 
 
 
1 
9 Suppose for a given economy, 
S= -60 + 0.1Y 
I= ? 4,000 crore 
(Where S = Saving Function, Y =  National Income and I = Investment Expenditure) 
Equilibrium level of Income would be ? ______ crore. 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
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1 
 
SAMPLE QUESTION PAPER (2023-24) 
ECONOMICS (030)  CLASS XII 
TIME: 3 HOURS                                                                                M.M. – 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 of 1 mark each. 
3. This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 
words. 
4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 
words. 
5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 
words.  
Q.NO. 
SECTION A – MACRO ECONOMICS   
MARKS 
1 
 
Read the following statements carefully: 
Statement 1: Consumption function assumes that, consumption changes at a constant rate as 
income changes. 
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income 
(Y). 
In 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. 
 
 
 
 
 
 
 
 
 
1 
2 For a closed economy (with no foreign trade), which one of the following is correct? 
a) GDP = GNP   b) GDP > GNP 
c) GDP < GNP   d) GDP + GNP=0 
 
 
1 
3 The value of __________ can be greater than one. 
(Choose the correct alternative to fill up the blank) 
a) Marginal Propensity to Consume      b) Average Propensity to Consume 
c) Marginal Propensity to Save            d) Average Propensity to Save 
 
 
 
1 
4 As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022: 
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the 
second quarter (2022-23)" 
The above transaction will be recorded in the _______ account on ______ side of  
Balance of payments account of India.    (Choose the correct alternative to fill up the blanks) 
a) current, credit    b) current, debit 
c) capital, credit    d) capital, debit 
 
 
 
 
 
 
1 
2 
 
5 “The value of all goods and services can be expressed in monetary units.” 
On the basis of the given statement, identify the function performed by money: 
a) Medium of exchange  b) Store of Value 
c) Unit of account   d) Means of standard of deferred payments 
 
 
 
1 
6 Find the missing figures and choose the correct alternative: 
Round Deposits Loans (80%) Reserve Ratio (20%) 
I 1,000 800 200 
II 800 ….(i)…. 160 
 .. .. .. 
 .. .. .. 
Total …(ii)… …(iii)… …(iv)… 
Alternatives: 
a)  640,1000,4000,5000   b)  960,5000,4000,1000 
c)  640,4000,1000,5000   d) 640,5000,4000,1000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
7 Graphically, Aggregate Demand function can be obtained by vertically adding the 
_________ and _________ function.(Choose the correct alternative to fill up the blanks) 
a) consumption, saving 
b) consumption, investment 
c) investment, saving 
d) aggregate supply, consumption 
 
 
 
 
 
1 
8 Identify the correct reason(s) that may affect the demand for foreign exchange in an 
economy. 
I. Imports of visibles 
II. Exports of invisibles 
III. Remittances by residents working abroad 
IV. Purchase of assets abroad 
Alternatives: 
a)  I and II        b)  II and III 
c)  III and IV    d) I and IV 
 
 
 
 
 
 
 
 
1 
9 Suppose for a given economy, 
S= -60 + 0.1Y 
I= ? 4,000 crore 
(Where S = Saving Function, Y =  National Income and I = Investment Expenditure) 
Equilibrium level of Income would be ? ______ crore. 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
Alternatives:  
a) 4,000        b) 40,000  
c) 40,600      d) 60,400 
10 Read the following chart carefully and choose the correct alternative:
Alternatives: 
a) Interest received on loans  
c) Portfolio Investment          
11 ‘Current account deficit in an economy
surplus’.  
Do you agree with the given statement
12 (A) On the basis of the given data, estimate the value of Domestic Income:
     
S. No. Items 
i. Household Consumption
ii. Gross Fixed Capital 
iii. Change in stock 
iv. Government Final C
v. Net Exports 
vi. Net Indirect Taxes 
vii. Net Factor Income F
viii. Consumption of Fixed Capital
 
      
(B) State the meanings of the following:
(i) Externalities  (ii)
13 For a hypothetical economy, the government incurs an investment expenditure of 
crore. If the value of Marginal Propensity to 
Calculate the value of increase in income due to change in the value of 
to Save (MPS). 
 
Investments
Direct 
Investment _______
carefully and choose the correct alternative: 
 
      b) Multilateral Loans 
      d) Government Aid 
in an economy must be financed by a corresponding capital account 
with the given statement? Give valid reason(s) in support of your answer.
On the basis of the given data, estimate the value of Domestic Income:  
    
Amount
(?in 
onsumption Expenditure 
 Formation 
Consumption Expenditure 
From Abroad 
Consumption of Fixed Capital 
 OR 
the meanings of the following: 
(ii) Operating Surplus     (iii)Consumption Goods
For a hypothetical economy, the government incurs an investment expenditure of 
Marginal Propensity to Save (MPS) falls from 0.25 to 0.10
increase in income due to change in the value of Marginal Propensity 
Capital 
Account
_______
External 
Borrowings 
External 
Assistance
3 
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
capital account 
in support of your answer. 
 
3 
  
Amount 
in crore) 
600 
200 
40 
200 
(-)40 
120 
20 
40 
Consumption Goods 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
3 
For a hypothetical economy, the government incurs an investment expenditure of ? 1,000 
0.10.  
Marginal Propensity 
 
 
4 
Page 4


1 
 
SAMPLE QUESTION PAPER (2023-24) 
ECONOMICS (030)  CLASS XII 
TIME: 3 HOURS                                                                                M.M. – 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 of 1 mark each. 
3. This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 
words. 
4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 
words. 
5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 
words.  
Q.NO. 
SECTION A – MACRO ECONOMICS   
MARKS 
1 
 
Read the following statements carefully: 
Statement 1: Consumption function assumes that, consumption changes at a constant rate as 
income changes. 
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income 
(Y). 
In 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. 
 
 
 
 
 
 
 
 
 
1 
2 For a closed economy (with no foreign trade), which one of the following is correct? 
a) GDP = GNP   b) GDP > GNP 
c) GDP < GNP   d) GDP + GNP=0 
 
 
1 
3 The value of __________ can be greater than one. 
(Choose the correct alternative to fill up the blank) 
a) Marginal Propensity to Consume      b) Average Propensity to Consume 
c) Marginal Propensity to Save            d) Average Propensity to Save 
 
 
 
1 
4 As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022: 
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the 
second quarter (2022-23)" 
The above transaction will be recorded in the _______ account on ______ side of  
Balance of payments account of India.    (Choose the correct alternative to fill up the blanks) 
a) current, credit    b) current, debit 
c) capital, credit    d) capital, debit 
 
 
 
 
 
 
1 
2 
 
5 “The value of all goods and services can be expressed in monetary units.” 
On the basis of the given statement, identify the function performed by money: 
a) Medium of exchange  b) Store of Value 
c) Unit of account   d) Means of standard of deferred payments 
 
 
 
1 
6 Find the missing figures and choose the correct alternative: 
Round Deposits Loans (80%) Reserve Ratio (20%) 
I 1,000 800 200 
II 800 ….(i)…. 160 
 .. .. .. 
 .. .. .. 
Total …(ii)… …(iii)… …(iv)… 
Alternatives: 
a)  640,1000,4000,5000   b)  960,5000,4000,1000 
c)  640,4000,1000,5000   d) 640,5000,4000,1000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
7 Graphically, Aggregate Demand function can be obtained by vertically adding the 
_________ and _________ function.(Choose the correct alternative to fill up the blanks) 
a) consumption, saving 
b) consumption, investment 
c) investment, saving 
d) aggregate supply, consumption 
 
 
 
 
 
1 
8 Identify the correct reason(s) that may affect the demand for foreign exchange in an 
economy. 
I. Imports of visibles 
II. Exports of invisibles 
III. Remittances by residents working abroad 
IV. Purchase of assets abroad 
Alternatives: 
a)  I and II        b)  II and III 
c)  III and IV    d) I and IV 
 
 
 
 
 
 
 
 
1 
9 Suppose for a given economy, 
S= -60 + 0.1Y 
I= ? 4,000 crore 
(Where S = Saving Function, Y =  National Income and I = Investment Expenditure) 
Equilibrium level of Income would be ? ______ crore. 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
Alternatives:  
a) 4,000        b) 40,000  
c) 40,600      d) 60,400 
10 Read the following chart carefully and choose the correct alternative:
Alternatives: 
a) Interest received on loans  
c) Portfolio Investment          
11 ‘Current account deficit in an economy
surplus’.  
Do you agree with the given statement
12 (A) On the basis of the given data, estimate the value of Domestic Income:
     
S. No. Items 
i. Household Consumption
ii. Gross Fixed Capital 
iii. Change in stock 
iv. Government Final C
v. Net Exports 
vi. Net Indirect Taxes 
vii. Net Factor Income F
viii. Consumption of Fixed Capital
 
      
(B) State the meanings of the following:
(i) Externalities  (ii)
13 For a hypothetical economy, the government incurs an investment expenditure of 
crore. If the value of Marginal Propensity to 
Calculate the value of increase in income due to change in the value of 
to Save (MPS). 
 
Investments
Direct 
Investment _______
carefully and choose the correct alternative: 
 
      b) Multilateral Loans 
      d) Government Aid 
in an economy must be financed by a corresponding capital account 
with the given statement? Give valid reason(s) in support of your answer.
On the basis of the given data, estimate the value of Domestic Income:  
    
Amount
(?in 
onsumption Expenditure 
 Formation 
Consumption Expenditure 
From Abroad 
Consumption of Fixed Capital 
 OR 
the meanings of the following: 
(ii) Operating Surplus     (iii)Consumption Goods
For a hypothetical economy, the government incurs an investment expenditure of 
Marginal Propensity to Save (MPS) falls from 0.25 to 0.10
increase in income due to change in the value of Marginal Propensity 
Capital 
Account
_______
External 
Borrowings 
External 
Assistance
3 
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
capital account 
in support of your answer. 
 
3 
  
Amount 
in crore) 
600 
200 
40 
200 
(-)40 
120 
20 
40 
Consumption Goods 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
3 
For a hypothetical economy, the government incurs an investment expenditure of ? 1,000 
0.10.  
Marginal Propensity 
 
 
4 
4 
 
14 (A) "In an economy, ex-ante Aggregate Demand is more than ex-ante Aggregate Supply." 
Elaborate the possible impact of the same, on the level of output, income and employment. 
OR 
(B) “With an objective to reduce inflation, Reserve Bank of India may promote the 
commercial banks to park their surplus funds with it.” 
Discuss the rationale behind the step taken by the Reserve Bank of India. 
 
4 
 
 
4 
15 Elaborate the ‘Banker’s Bank and Supervisor’ function performed by the Reserve Bank of 
India. 
 
4 
16 (A) On the basis of the given information, calculate the value of: 
(i)   Fiscal deficit 
(ii)  Primary deficit 
S.No. Items 2021-22 
(?in crore) 
(i) Revenue Receipts 20 
(ii) Capital Expenditure 15 
(iii) Revenue Deficit 10 
(iv) Non-debt creating capital receipts 50% of revenue receipts 
(v) Interest Payments 4 
(B) State any two features of public goods. 
OR 
(C)  Explain the economic stability objective of Government Budget. 
 
(D) ‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the 
economically backward section of the society’.  
Identify and discuss the nature of the government expenditure indicated in the given 
statement. 
 
3 
2 
 
 
 
 
 
 
 
 
 
1 
 
 
3 
 
 
 
3 
 
17 (a) Giving valid reasons, explain how the following would be treated while estimating 
domestic income?  
(i) Payment made by American tourist for goods purchased in India.  
(ii) Tomatoes grown by Ms. Puja in her kitchen garden. 
 
(b) "Machine purchased by a firm is always a capital good." Do you agree with the given 
statement? Give valid reasons for your answer. 
 
 
3 
 
 
3 
 
SECTION B – INDIAN ECONOMIC DEVELOPMENT 
18 Identify the correct combination of the ‘Goals of Indian Five Year Plans’: 
a)  Growth, Equality, Modernisation, Self-Reliance 
b)  Development, Equality, Modernisation, Sustainability 
c)  Good Health, Education, Modernisation, Sustainability 
d) Growth, Equity, Modernisation, Self-Reliance 
 
 
 
 
1 
 
Page 5


1 
 
SAMPLE QUESTION PAPER (2023-24) 
ECONOMICS (030)  CLASS XII 
TIME: 3 HOURS                                                                                M.M. – 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 of 1 mark each. 
3. This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 
words. 
4. This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 
words. 
5. This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 
words.  
Q.NO. 
SECTION A – MACRO ECONOMICS   
MARKS 
1 
 
Read the following statements carefully: 
Statement 1: Consumption function assumes that, consumption changes at a constant rate as 
income changes. 
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income 
(Y). 
In 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. 
 
 
 
 
 
 
 
 
 
1 
2 For a closed economy (with no foreign trade), which one of the following is correct? 
a) GDP = GNP   b) GDP > GNP 
c) GDP < GNP   d) GDP + GNP=0 
 
 
1 
3 The value of __________ can be greater than one. 
(Choose the correct alternative to fill up the blank) 
a) Marginal Propensity to Consume      b) Average Propensity to Consume 
c) Marginal Propensity to Save            d) Average Propensity to Save 
 
 
 
1 
4 As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022: 
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the 
second quarter (2022-23)" 
The above transaction will be recorded in the _______ account on ______ side of  
Balance of payments account of India.    (Choose the correct alternative to fill up the blanks) 
a) current, credit    b) current, debit 
c) capital, credit    d) capital, debit 
 
 
 
 
 
 
1 
2 
 
5 “The value of all goods and services can be expressed in monetary units.” 
On the basis of the given statement, identify the function performed by money: 
a) Medium of exchange  b) Store of Value 
c) Unit of account   d) Means of standard of deferred payments 
 
 
 
1 
6 Find the missing figures and choose the correct alternative: 
Round Deposits Loans (80%) Reserve Ratio (20%) 
I 1,000 800 200 
II 800 ….(i)…. 160 
 .. .. .. 
 .. .. .. 
Total …(ii)… …(iii)… …(iv)… 
Alternatives: 
a)  640,1000,4000,5000   b)  960,5000,4000,1000 
c)  640,4000,1000,5000   d) 640,5000,4000,1000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
7 Graphically, Aggregate Demand function can be obtained by vertically adding the 
_________ and _________ function.(Choose the correct alternative to fill up the blanks) 
a) consumption, saving 
b) consumption, investment 
c) investment, saving 
d) aggregate supply, consumption 
 
 
 
 
 
1 
8 Identify the correct reason(s) that may affect the demand for foreign exchange in an 
economy. 
I. Imports of visibles 
II. Exports of invisibles 
III. Remittances by residents working abroad 
IV. Purchase of assets abroad 
Alternatives: 
a)  I and II        b)  II and III 
c)  III and IV    d) I and IV 
 
 
 
 
 
 
 
 
1 
9 Suppose for a given economy, 
S= -60 + 0.1Y 
I= ? 4,000 crore 
(Where S = Saving Function, Y =  National Income and I = Investment Expenditure) 
Equilibrium level of Income would be ? ______ crore. 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
Alternatives:  
a) 4,000        b) 40,000  
c) 40,600      d) 60,400 
10 Read the following chart carefully and choose the correct alternative:
Alternatives: 
a) Interest received on loans  
c) Portfolio Investment          
11 ‘Current account deficit in an economy
surplus’.  
Do you agree with the given statement
12 (A) On the basis of the given data, estimate the value of Domestic Income:
     
S. No. Items 
i. Household Consumption
ii. Gross Fixed Capital 
iii. Change in stock 
iv. Government Final C
v. Net Exports 
vi. Net Indirect Taxes 
vii. Net Factor Income F
viii. Consumption of Fixed Capital
 
      
(B) State the meanings of the following:
(i) Externalities  (ii)
13 For a hypothetical economy, the government incurs an investment expenditure of 
crore. If the value of Marginal Propensity to 
Calculate the value of increase in income due to change in the value of 
to Save (MPS). 
 
Investments
Direct 
Investment _______
carefully and choose the correct alternative: 
 
      b) Multilateral Loans 
      d) Government Aid 
in an economy must be financed by a corresponding capital account 
with the given statement? Give valid reason(s) in support of your answer.
On the basis of the given data, estimate the value of Domestic Income:  
    
Amount
(?in 
onsumption Expenditure 
 Formation 
Consumption Expenditure 
From Abroad 
Consumption of Fixed Capital 
 OR 
the meanings of the following: 
(ii) Operating Surplus     (iii)Consumption Goods
For a hypothetical economy, the government incurs an investment expenditure of 
Marginal Propensity to Save (MPS) falls from 0.25 to 0.10
increase in income due to change in the value of Marginal Propensity 
Capital 
Account
_______
External 
Borrowings 
External 
Assistance
3 
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
capital account 
in support of your answer. 
 
3 
  
Amount 
in crore) 
600 
200 
40 
200 
(-)40 
120 
20 
40 
Consumption Goods 
 
 
 
 
 
 
3 
 
 
 
 
 
 
 
3 
For a hypothetical economy, the government incurs an investment expenditure of ? 1,000 
0.10.  
Marginal Propensity 
 
 
4 
4 
 
14 (A) "In an economy, ex-ante Aggregate Demand is more than ex-ante Aggregate Supply." 
Elaborate the possible impact of the same, on the level of output, income and employment. 
OR 
(B) “With an objective to reduce inflation, Reserve Bank of India may promote the 
commercial banks to park their surplus funds with it.” 
Discuss the rationale behind the step taken by the Reserve Bank of India. 
 
4 
 
 
4 
15 Elaborate the ‘Banker’s Bank and Supervisor’ function performed by the Reserve Bank of 
India. 
 
4 
16 (A) On the basis of the given information, calculate the value of: 
(i)   Fiscal deficit 
(ii)  Primary deficit 
S.No. Items 2021-22 
(?in crore) 
(i) Revenue Receipts 20 
(ii) Capital Expenditure 15 
(iii) Revenue Deficit 10 
(iv) Non-debt creating capital receipts 50% of revenue receipts 
(v) Interest Payments 4 
(B) State any two features of public goods. 
OR 
(C)  Explain the economic stability objective of Government Budget. 
 
(D) ‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the 
economically backward section of the society’.  
Identify and discuss the nature of the government expenditure indicated in the given 
statement. 
 
3 
2 
 
 
 
 
 
 
 
 
 
1 
 
 
3 
 
 
 
3 
 
17 (a) Giving valid reasons, explain how the following would be treated while estimating 
domestic income?  
(i) Payment made by American tourist for goods purchased in India.  
(ii) Tomatoes grown by Ms. Puja in her kitchen garden. 
 
(b) "Machine purchased by a firm is always a capital good." Do you agree with the given 
statement? Give valid reasons for your answer. 
 
 
3 
 
 
3 
 
SECTION B – INDIAN ECONOMIC DEVELOPMENT 
18 Identify the correct combination of the ‘Goals of Indian Five Year Plans’: 
a)  Growth, Equality, Modernisation, Self-Reliance 
b)  Development, Equality, Modernisation, Sustainability 
c)  Good Health, Education, Modernisation, Sustainability 
d) Growth, Equity, Modernisation, Self-Reliance 
 
 
 
 
1 
 
19 ‘China has performed exceedingly well in various health and economic indicators
Identify which of the following is not a health indicator?
a)  Infant Mortality Rate (per 1000 live births)
b)  Life Expectancy at Birth (years)
c)  Percentage of people below poverty line (National)
d)  Maternal Mortality Rate (per 1 lakh births)
20 The shackles of agriculture during the colonial rule 
Revolution that resulted from the application of ___
I. High Yielding Varieties (HYV)
II. Mechanization of Agriculture
III. Chemical Fertilizers and Pesticides
IV. Organic Fertilizers and Pesticides
Alternatives: 
a) I, II, IV         b) I, II, III 
c) II, III, IV      d) I, III, IV 
21 Study the following picture and answer the given question:
Women in rural households take up bee
activities may be envisaged under _________ as diversification activity.
a) Animal husbandry                              
c) Horticulture                             
22 Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative 
from those given below. 
Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, 
the rupee was devalued against foreign currencies.
Reason (R): Devaluation of currency was eminent, 
exchange reserves.  
Alternatives: 
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, but Reason (R) is 
explanation of Assertion (A).
c) Assertion (A) is true, but Reason (R) is false.
d) Assertion (A) is false, but Reason (R) is true.
China has performed exceedingly well in various health and economic indicators
Identify which of the following is not a health indicator? 
a)  Infant Mortality Rate (per 1000 live births) 
(years) 
Percentage of people below poverty line (National) 
Maternal Mortality Rate (per 1 lakh births) 
The shackles of agriculture during the colonial rule were permanently broken by the Green 
Revolution that resulted from the application of ___. (Choose the correct alternative to fill up the blank)
High Yielding Varieties (HYV) 
Mechanization of Agriculture 
Chemical Fertilizers and Pesticides 
Fertilizers and Pesticides 
Study the following picture and answer the given question: 
 
 
Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of 
activities may be envisaged under _________ as diversification activity. 
(Choose the correct alternative to fill up the blank)
                              b) Fisheries 
                                        d) Poultry 
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative 
In 1991, as an immediate measure to resolve the Balance of Payments crisis, 
rupee was devalued against foreign currencies. 
Devaluation of currency was eminent, to replenish the deteriorated foreign 
a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
b) Both Assertion (A) and Reason (R) are true, but Reason (R) is n o t
explanation of Assertion (A). 
c) Assertion (A) is true, but Reason (R) is false. 
d) Assertion (A) is false, but Reason (R) is true. 
5 
China has performed exceedingly well in various health and economic indicators’.   
 
 
 
 
1 
permanently broken by the Green 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
1 
activity. Such kind of 
(Choose the correct alternative to fill up the blank) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative 
In 1991, as an immediate measure to resolve the Balance of Payments crisis, 
to replenish the deteriorated foreign 
a)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of 
n ot the correct 
 
 
 
 
 
 
 
 
 
 
 
1