Class 12 Economics Official Sample Question Paper (2019-20) | Economics for Grade 12 PDF Download

 Page 1


 
 
 
1 
 
Blue Print  
Section-A Macro Economics 
Unit name 1 mark 3 Marks 4 Marks 6 marks Total 
National Income 1(R) 1(U)  1(A) 10 
Money and Banking 1(U),1(A)  1(U)  6 
Income determination 1(R), 1(U), 1(E) 1(A),   1(U) 12 
Government Budget 1(U), 1(E)  1(R)  6 
Balance of Payment 1(A), 1(E)   1(E)  6 
Section A  10*1=10 2*3=6 3*4=12 2*6=12 40 
Section- B Indian Economic Development 
Development Experience 
and Economic Reforms 
1(R), 1(U), 1(A), 
1(E) 
 1(R), 
1(U) 
 12 
Current Challenges facing 
Indian Economy 
1(R), 1(U), 1(A), 
1(E) 
1(U), 1(A)  1(R), 
1(E) 
22 
Development Experience 
of India 
1(U), 1(E)  1(A)  6 
Section B 10*1=10 2*3=6 3*4=12 2*6=12 40 
Total 20*1=20 4*3=12 6*4=24 4*6=24 80 
 
Creative Answer Type Questions:     Q.No. – 29, 32, 34 
Change in Questions:   
Marks Category 2018-19 2019-20       Changes  
1 mark 8 20 Increased by 12  
3 marks 4 4 No change 
4 marks 6 6 No change 
6 marks 6 4 Decreased by 2 
Total Questions 24 34  
 
 
 
 
 
 
 
 
  
Page 2


 
 
 
1 
 
Blue Print  
Section-A Macro Economics 
Unit name 1 mark 3 Marks 4 Marks 6 marks Total 
National Income 1(R) 1(U)  1(A) 10 
Money and Banking 1(U),1(A)  1(U)  6 
Income determination 1(R), 1(U), 1(E) 1(A),   1(U) 12 
Government Budget 1(U), 1(E)  1(R)  6 
Balance of Payment 1(A), 1(E)   1(E)  6 
Section A  10*1=10 2*3=6 3*4=12 2*6=12 40 
Section- B Indian Economic Development 
Development Experience 
and Economic Reforms 
1(R), 1(U), 1(A), 
1(E) 
 1(R), 
1(U) 
 12 
Current Challenges facing 
Indian Economy 
1(R), 1(U), 1(A), 
1(E) 
1(U), 1(A)  1(R), 
1(E) 
22 
Development Experience 
of India 
1(U), 1(E)  1(A)  6 
Section B 10*1=10 2*3=6 3*4=12 2*6=12 40 
Total 20*1=20 4*3=12 6*4=24 4*6=24 80 
 
Creative Answer Type Questions:     Q.No. – 29, 32, 34 
Change in Questions:   
Marks Category 2018-19 2019-20       Changes  
1 mark 8 20 Increased by 12  
3 marks 4 4 No change 
4 marks 6 6 No change 
6 marks 6 4 Decreased by 2 
Total Questions 24 34  
 
 
 
 
 
 
 
 
  
 
 
 
2 
 
 
SAMPLE QUESTION PAPER (2019-20) 
ECONOMICS (030) 
Time allowed: 3 hours       Maximum Marks: 80 
General instructions: 
i.  All the questions in both the sections are compulsory. Marks for questions are indicated against 
each question. 
ii. Question number 1 - 10 and 18 - 27 are very short-answer questions carrying 1 mark each. They 
are required to be answered in one word or one sentence each. 
iii. Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each. Answers to 
them should not normally exceed 60-80 words each. 
iv. Question number 13 - 15 and 30 - 32 are also short-answer questions carrying 4 marks each. 
Answers to them should not normally exceed 80-100 words each. 
v. Question number 16 - 17 and 33 - 34 are long answer questions carrying 6 marks each. Answers 
to them should not normally exceed 100-150 words each. 
vi. Answer should be brief and to the point and the above word limit be adhered to as far as possible. 
SECTION - A (Macro Economics) 
Q.No QUESTION 
Marks  
1 Value of Money Multiplier ………………(increases/decreases/remains unchanged) 
with an increase in Cash Reserve Ratio.                                 
                (Fill up the blank with correct alternative) 
 
1 
2 Define an intermediate good. 1 
3 Average Propensity to Consume can never be ………………………...   
                        (choose the correct alternative) 
a) positive                                                b) zero  
c)   more than one                                     d) less than one 
 
 
 
1 
4 Name any two quantitative tools to control credit creation in an economy. 
                                          Or 
What are demand deposits? 
 
 
1 
5 The monetary policy generally targets to ensure………….…… 
             (Choose the correct alternative)  
a) price stability in the economy     
b) employment generation in the country. 
c)   stable foreign relations.                  
d)   greater tax collections for the government. 
 
 
1 
6 In an economy, break-even point and equilibrium point may lie at the same level of 
income, if ex-ante investments are …………………           
                  (Fill up the blank with correct answer) 
 
1 
7 State whether the given statement is true or false: 
‘Managed Floating Exchange Rate is decided by market forces but remains within a 
specific range as decided by central bank’.     
1 
8 The formula to calculate Primary deficit is …………..…   
            (Fill up the blank with correct answer) 
 
1 
Page 3


 
 
 
1 
 
Blue Print  
Section-A Macro Economics 
Unit name 1 mark 3 Marks 4 Marks 6 marks Total 
National Income 1(R) 1(U)  1(A) 10 
Money and Banking 1(U),1(A)  1(U)  6 
Income determination 1(R), 1(U), 1(E) 1(A),   1(U) 12 
Government Budget 1(U), 1(E)  1(R)  6 
Balance of Payment 1(A), 1(E)   1(E)  6 
Section A  10*1=10 2*3=6 3*4=12 2*6=12 40 
Section- B Indian Economic Development 
Development Experience 
and Economic Reforms 
1(R), 1(U), 1(A), 
1(E) 
 1(R), 
1(U) 
 12 
Current Challenges facing 
Indian Economy 
1(R), 1(U), 1(A), 
1(E) 
1(U), 1(A)  1(R), 
1(E) 
22 
Development Experience 
of India 
1(U), 1(E)  1(A)  6 
Section B 10*1=10 2*3=6 3*4=12 2*6=12 40 
Total 20*1=20 4*3=12 6*4=24 4*6=24 80 
 
Creative Answer Type Questions:     Q.No. – 29, 32, 34 
Change in Questions:   
Marks Category 2018-19 2019-20       Changes  
1 mark 8 20 Increased by 12  
3 marks 4 4 No change 
4 marks 6 6 No change 
6 marks 6 4 Decreased by 2 
Total Questions 24 34  
 
 
 
 
 
 
 
 
  
 
 
 
2 
 
 
SAMPLE QUESTION PAPER (2019-20) 
ECONOMICS (030) 
Time allowed: 3 hours       Maximum Marks: 80 
General instructions: 
i.  All the questions in both the sections are compulsory. Marks for questions are indicated against 
each question. 
ii. Question number 1 - 10 and 18 - 27 are very short-answer questions carrying 1 mark each. They 
are required to be answered in one word or one sentence each. 
iii. Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each. Answers to 
them should not normally exceed 60-80 words each. 
iv. Question number 13 - 15 and 30 - 32 are also short-answer questions carrying 4 marks each. 
Answers to them should not normally exceed 80-100 words each. 
v. Question number 16 - 17 and 33 - 34 are long answer questions carrying 6 marks each. Answers 
to them should not normally exceed 100-150 words each. 
vi. Answer should be brief and to the point and the above word limit be adhered to as far as possible. 
SECTION - A (Macro Economics) 
Q.No QUESTION 
Marks  
1 Value of Money Multiplier ………………(increases/decreases/remains unchanged) 
with an increase in Cash Reserve Ratio.                                 
                (Fill up the blank with correct alternative) 
 
1 
2 Define an intermediate good. 1 
3 Average Propensity to Consume can never be ………………………...   
                        (choose the correct alternative) 
a) positive                                                b) zero  
c)   more than one                                     d) less than one 
 
 
 
1 
4 Name any two quantitative tools to control credit creation in an economy. 
                                          Or 
What are demand deposits? 
 
 
1 
5 The monetary policy generally targets to ensure………….…… 
             (Choose the correct alternative)  
a) price stability in the economy     
b) employment generation in the country. 
c)   stable foreign relations.                  
d)   greater tax collections for the government. 
 
 
1 
6 In an economy, break-even point and equilibrium point may lie at the same level of 
income, if ex-ante investments are …………………           
                  (Fill up the blank with correct answer) 
 
1 
7 State whether the given statement is true or false: 
‘Managed Floating Exchange Rate is decided by market forces but remains within a 
specific range as decided by central bank’.     
1 
8 The formula to calculate Primary deficit is …………..…   
            (Fill up the blank with correct answer) 
 
1 
 
 
 
3 
 
9 From the set of statements given in Column I and Column II,  choose the correct pair 
of statements: 
 
Column I Column II 
a) Export of software to France 
   
(i)    Debit  side of current account 
b) Import of Machinery from     
    China 
(ii)   Capital Account of Balance of 
Payments 
c) Remittances to relative      
    staying abroad 
(iii)  Debit side of Current Account of 
Balance of Payments 
d) Investment by Apple  
     phones firm in India 
(iv)   Credit side of Current Account of 
Balance of Payments 
 
 
 
 
 
 
 
 
 
 
1 
10 Government expenditure on Mid-Day Meal scheme running in government (state 
run) schools is a type of ……………….……….. expenditure in government budget.   
(Fill up the blank with correct answer) 
 
1 
11 “India's GDP is expected to expand 7.5% in 2019-20: World Bank”  
      - The Economic Times.  
Does the given statement mean that welfare of people of India increase at the same 
rate?  Comment with reason. 
3 
12 Calculate the value of Marginal Propensity to Consume (MPC), if in an economy, 
autonomous consumption is ? 500 crores, ex-ante investments are ? 4000crores and 
equilibrium level of Income of the economy is ? 18,000 crores.  
                                                             Or 
Suppose in a hypothetical economy, the savings increase by ? 20 crores when 
national income increases by ? 100 crores. Compute the additional investments 
needed to attain an increase in national income by ? 6,000 crores? 
 
 
3 
 
 
 
 
3 
13 Discuss any one of the following functions of a central bank: 
a) As government’s bank                           b) Open market operations. 
4 
14 “Foreign Institutional Investors (FIIs) remained net seller in the Indian capital 
markets over the last few weeks”.               - The Economic Times. 
State and discuss the likely effects of the given statement on foreign exchange rate 
with reference to the Indian Economy. 
                                                          Or 
‘Many large Multinational Corporations (MNCs) have recently shifted their 
investments from China and have started their production in India, thereby boosting 
the Make in India plans of the Government’. 
Presuming other factors being constant, discuss the effects of the given statement on 
Foreign Exchange rates with reference to the Indian Economy.  
 
 
4 
 
 
 
 
 
4 
15 Elaborate the objective of ‘reallocation of resources’ in the government budget.  
4 
16 a) ‘Real Gross Domestic Product is a better indicator of economic growth than 
Nominal Gross Domestic Product’.  
Do you agree with the given statement? Support your answer with a suitable 
numerical example. 
b)    Calculate ‘Depreciation on Capital Asset’ from the following data 
 
 
 
4 
 
Page 4


 
 
 
1 
 
Blue Print  
Section-A Macro Economics 
Unit name 1 mark 3 Marks 4 Marks 6 marks Total 
National Income 1(R) 1(U)  1(A) 10 
Money and Banking 1(U),1(A)  1(U)  6 
Income determination 1(R), 1(U), 1(E) 1(A),   1(U) 12 
Government Budget 1(U), 1(E)  1(R)  6 
Balance of Payment 1(A), 1(E)   1(E)  6 
Section A  10*1=10 2*3=6 3*4=12 2*6=12 40 
Section- B Indian Economic Development 
Development Experience 
and Economic Reforms 
1(R), 1(U), 1(A), 
1(E) 
 1(R), 
1(U) 
 12 
Current Challenges facing 
Indian Economy 
1(R), 1(U), 1(A), 
1(E) 
1(U), 1(A)  1(R), 
1(E) 
22 
Development Experience 
of India 
1(U), 1(E)  1(A)  6 
Section B 10*1=10 2*3=6 3*4=12 2*6=12 40 
Total 20*1=20 4*3=12 6*4=24 4*6=24 80 
 
Creative Answer Type Questions:     Q.No. – 29, 32, 34 
Change in Questions:   
Marks Category 2018-19 2019-20       Changes  
1 mark 8 20 Increased by 12  
3 marks 4 4 No change 
4 marks 6 6 No change 
6 marks 6 4 Decreased by 2 
Total Questions 24 34  
 
 
 
 
 
 
 
 
  
 
 
 
2 
 
 
SAMPLE QUESTION PAPER (2019-20) 
ECONOMICS (030) 
Time allowed: 3 hours       Maximum Marks: 80 
General instructions: 
i.  All the questions in both the sections are compulsory. Marks for questions are indicated against 
each question. 
ii. Question number 1 - 10 and 18 - 27 are very short-answer questions carrying 1 mark each. They 
are required to be answered in one word or one sentence each. 
iii. Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each. Answers to 
them should not normally exceed 60-80 words each. 
iv. Question number 13 - 15 and 30 - 32 are also short-answer questions carrying 4 marks each. 
Answers to them should not normally exceed 80-100 words each. 
v. Question number 16 - 17 and 33 - 34 are long answer questions carrying 6 marks each. Answers 
to them should not normally exceed 100-150 words each. 
vi. Answer should be brief and to the point and the above word limit be adhered to as far as possible. 
SECTION - A (Macro Economics) 
Q.No QUESTION 
Marks  
1 Value of Money Multiplier ………………(increases/decreases/remains unchanged) 
with an increase in Cash Reserve Ratio.                                 
                (Fill up the blank with correct alternative) 
 
1 
2 Define an intermediate good. 1 
3 Average Propensity to Consume can never be ………………………...   
                        (choose the correct alternative) 
a) positive                                                b) zero  
c)   more than one                                     d) less than one 
 
 
 
1 
4 Name any two quantitative tools to control credit creation in an economy. 
                                          Or 
What are demand deposits? 
 
 
1 
5 The monetary policy generally targets to ensure………….…… 
             (Choose the correct alternative)  
a) price stability in the economy     
b) employment generation in the country. 
c)   stable foreign relations.                  
d)   greater tax collections for the government. 
 
 
1 
6 In an economy, break-even point and equilibrium point may lie at the same level of 
income, if ex-ante investments are …………………           
                  (Fill up the blank with correct answer) 
 
1 
7 State whether the given statement is true or false: 
‘Managed Floating Exchange Rate is decided by market forces but remains within a 
specific range as decided by central bank’.     
1 
8 The formula to calculate Primary deficit is …………..…   
            (Fill up the blank with correct answer) 
 
1 
 
 
 
3 
 
9 From the set of statements given in Column I and Column II,  choose the correct pair 
of statements: 
 
Column I Column II 
a) Export of software to France 
   
(i)    Debit  side of current account 
b) Import of Machinery from     
    China 
(ii)   Capital Account of Balance of 
Payments 
c) Remittances to relative      
    staying abroad 
(iii)  Debit side of Current Account of 
Balance of Payments 
d) Investment by Apple  
     phones firm in India 
(iv)   Credit side of Current Account of 
Balance of Payments 
 
 
 
 
 
 
 
 
 
 
1 
10 Government expenditure on Mid-Day Meal scheme running in government (state 
run) schools is a type of ……………….……….. expenditure in government budget.   
(Fill up the blank with correct answer) 
 
1 
11 “India's GDP is expected to expand 7.5% in 2019-20: World Bank”  
      - The Economic Times.  
Does the given statement mean that welfare of people of India increase at the same 
rate?  Comment with reason. 
3 
12 Calculate the value of Marginal Propensity to Consume (MPC), if in an economy, 
autonomous consumption is ? 500 crores, ex-ante investments are ? 4000crores and 
equilibrium level of Income of the economy is ? 18,000 crores.  
                                                             Or 
Suppose in a hypothetical economy, the savings increase by ? 20 crores when 
national income increases by ? 100 crores. Compute the additional investments 
needed to attain an increase in national income by ? 6,000 crores? 
 
 
3 
 
 
 
 
3 
13 Discuss any one of the following functions of a central bank: 
a) As government’s bank                           b) Open market operations. 
4 
14 “Foreign Institutional Investors (FIIs) remained net seller in the Indian capital 
markets over the last few weeks”.               - The Economic Times. 
State and discuss the likely effects of the given statement on foreign exchange rate 
with reference to the Indian Economy. 
                                                          Or 
‘Many large Multinational Corporations (MNCs) have recently shifted their 
investments from China and have started their production in India, thereby boosting 
the Make in India plans of the Government’. 
Presuming other factors being constant, discuss the effects of the given statement on 
Foreign Exchange rates with reference to the Indian Economy.  
 
 
4 
 
 
 
 
 
4 
15 Elaborate the objective of ‘reallocation of resources’ in the government budget.  
4 
16 a) ‘Real Gross Domestic Product is a better indicator of economic growth than 
Nominal Gross Domestic Product’.  
Do you agree with the given statement? Support your answer with a suitable 
numerical example. 
b)    Calculate ‘Depreciation on Capital Asset’ from the following data 
 
 
 
4 
 
 
 
 
4 
 
S.no  Particulars  Amount  (in ?crores) 
i.  Capital value of the asset  1,000 
ii. Estimated life of the asset 20 years 
iii.  Scrap Value  Nil 
 
Or 
a) ‘Circular flow of income in a two sector economy is based on the axiom that one’s 
expenditure is other’s income’.  
Do you agree with the given statement? Support your answer with valid reasons. 
 
b) Calculate compensation of employees from the following data: 
S.no  Particulars  Amount   
(in ?crores) 
i.  Profits after tax 20 
ii. Interest  45 
iii.  Gross Domestic Product at Market Price        200 
iv.  Goods and Services Tax   10 
v. Consumption of Fixed Capital                        50 
vi. Rent 25 
vii.  Corporate Tax 5 
                                                                         
 
 
2 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
3 
17 ‘An economy is operating at under-employment level of income’. What is meant by 
the given statement? Discuss one fiscal measure and one monetary measure to tackle 
the situation.  
 
6 
 SECTION-B (Indian Economic Development)  
18 Name any two taxes which were subsumed in Goods and Services Tax (GST).   1 
19 State weather the following statement is true or false: 
‘The latest demonetization of currency was undertaken by the Government of India 
on November 8, 2016’.   
1 
20 Identify the correct sequence of alternatives given in Column II by matching them 
with respective terms in Column I: 
Column – I Column – II 
A. Land Ceiling i. Increase in production of food 
grain using high yielding variety 
seeds 
B. Land reforms ii. Portion of agricultural produce 
sold in the market 
C. Green Revolution iii. Fixing the maximum limit of land 
holding for an individual. 
D. Marketed Surplus iv. Change in the ownership of land 
(land to tillers) 
 
 
 
 
 
 
 
 
1 
 
 
 
 
 
 
21 Agriculture marketing does not comprise of ……………..…      
             (Choose the correct alternative) 
a) Transportation of the produce to the market place for sale. 
  
 
 
Page 5


 
 
 
1 
 
Blue Print  
Section-A Macro Economics 
Unit name 1 mark 3 Marks 4 Marks 6 marks Total 
National Income 1(R) 1(U)  1(A) 10 
Money and Banking 1(U),1(A)  1(U)  6 
Income determination 1(R), 1(U), 1(E) 1(A),   1(U) 12 
Government Budget 1(U), 1(E)  1(R)  6 
Balance of Payment 1(A), 1(E)   1(E)  6 
Section A  10*1=10 2*3=6 3*4=12 2*6=12 40 
Section- B Indian Economic Development 
Development Experience 
and Economic Reforms 
1(R), 1(U), 1(A), 
1(E) 
 1(R), 
1(U) 
 12 
Current Challenges facing 
Indian Economy 
1(R), 1(U), 1(A), 
1(E) 
1(U), 1(A)  1(R), 
1(E) 
22 
Development Experience 
of India 
1(U), 1(E)  1(A)  6 
Section B 10*1=10 2*3=6 3*4=12 2*6=12 40 
Total 20*1=20 4*3=12 6*4=24 4*6=24 80 
 
Creative Answer Type Questions:     Q.No. – 29, 32, 34 
Change in Questions:   
Marks Category 2018-19 2019-20       Changes  
1 mark 8 20 Increased by 12  
3 marks 4 4 No change 
4 marks 6 6 No change 
6 marks 6 4 Decreased by 2 
Total Questions 24 34  
 
 
 
 
 
 
 
 
  
 
 
 
2 
 
 
SAMPLE QUESTION PAPER (2019-20) 
ECONOMICS (030) 
Time allowed: 3 hours       Maximum Marks: 80 
General instructions: 
i.  All the questions in both the sections are compulsory. Marks for questions are indicated against 
each question. 
ii. Question number 1 - 10 and 18 - 27 are very short-answer questions carrying 1 mark each. They 
are required to be answered in one word or one sentence each. 
iii. Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each. Answers to 
them should not normally exceed 60-80 words each. 
iv. Question number 13 - 15 and 30 - 32 are also short-answer questions carrying 4 marks each. 
Answers to them should not normally exceed 80-100 words each. 
v. Question number 16 - 17 and 33 - 34 are long answer questions carrying 6 marks each. Answers 
to them should not normally exceed 100-150 words each. 
vi. Answer should be brief and to the point and the above word limit be adhered to as far as possible. 
SECTION - A (Macro Economics) 
Q.No QUESTION 
Marks  
1 Value of Money Multiplier ………………(increases/decreases/remains unchanged) 
with an increase in Cash Reserve Ratio.                                 
                (Fill up the blank with correct alternative) 
 
1 
2 Define an intermediate good. 1 
3 Average Propensity to Consume can never be ………………………...   
                        (choose the correct alternative) 
a) positive                                                b) zero  
c)   more than one                                     d) less than one 
 
 
 
1 
4 Name any two quantitative tools to control credit creation in an economy. 
                                          Or 
What are demand deposits? 
 
 
1 
5 The monetary policy generally targets to ensure………….…… 
             (Choose the correct alternative)  
a) price stability in the economy     
b) employment generation in the country. 
c)   stable foreign relations.                  
d)   greater tax collections for the government. 
 
 
1 
6 In an economy, break-even point and equilibrium point may lie at the same level of 
income, if ex-ante investments are …………………           
                  (Fill up the blank with correct answer) 
 
1 
7 State whether the given statement is true or false: 
‘Managed Floating Exchange Rate is decided by market forces but remains within a 
specific range as decided by central bank’.     
1 
8 The formula to calculate Primary deficit is …………..…   
            (Fill up the blank with correct answer) 
 
1 
 
 
 
3 
 
9 From the set of statements given in Column I and Column II,  choose the correct pair 
of statements: 
 
Column I Column II 
a) Export of software to France 
   
(i)    Debit  side of current account 
b) Import of Machinery from     
    China 
(ii)   Capital Account of Balance of 
Payments 
c) Remittances to relative      
    staying abroad 
(iii)  Debit side of Current Account of 
Balance of Payments 
d) Investment by Apple  
     phones firm in India 
(iv)   Credit side of Current Account of 
Balance of Payments 
 
 
 
 
 
 
 
 
 
 
1 
10 Government expenditure on Mid-Day Meal scheme running in government (state 
run) schools is a type of ……………….……….. expenditure in government budget.   
(Fill up the blank with correct answer) 
 
1 
11 “India's GDP is expected to expand 7.5% in 2019-20: World Bank”  
      - The Economic Times.  
Does the given statement mean that welfare of people of India increase at the same 
rate?  Comment with reason. 
3 
12 Calculate the value of Marginal Propensity to Consume (MPC), if in an economy, 
autonomous consumption is ? 500 crores, ex-ante investments are ? 4000crores and 
equilibrium level of Income of the economy is ? 18,000 crores.  
                                                             Or 
Suppose in a hypothetical economy, the savings increase by ? 20 crores when 
national income increases by ? 100 crores. Compute the additional investments 
needed to attain an increase in national income by ? 6,000 crores? 
 
 
3 
 
 
 
 
3 
13 Discuss any one of the following functions of a central bank: 
a) As government’s bank                           b) Open market operations. 
4 
14 “Foreign Institutional Investors (FIIs) remained net seller in the Indian capital 
markets over the last few weeks”.               - The Economic Times. 
State and discuss the likely effects of the given statement on foreign exchange rate 
with reference to the Indian Economy. 
                                                          Or 
‘Many large Multinational Corporations (MNCs) have recently shifted their 
investments from China and have started their production in India, thereby boosting 
the Make in India plans of the Government’. 
Presuming other factors being constant, discuss the effects of the given statement on 
Foreign Exchange rates with reference to the Indian Economy.  
 
 
4 
 
 
 
 
 
4 
15 Elaborate the objective of ‘reallocation of resources’ in the government budget.  
4 
16 a) ‘Real Gross Domestic Product is a better indicator of economic growth than 
Nominal Gross Domestic Product’.  
Do you agree with the given statement? Support your answer with a suitable 
numerical example. 
b)    Calculate ‘Depreciation on Capital Asset’ from the following data 
 
 
 
4 
 
 
 
 
4 
 
S.no  Particulars  Amount  (in ?crores) 
i.  Capital value of the asset  1,000 
ii. Estimated life of the asset 20 years 
iii.  Scrap Value  Nil 
 
Or 
a) ‘Circular flow of income in a two sector economy is based on the axiom that one’s 
expenditure is other’s income’.  
Do you agree with the given statement? Support your answer with valid reasons. 
 
b) Calculate compensation of employees from the following data: 
S.no  Particulars  Amount   
(in ?crores) 
i.  Profits after tax 20 
ii. Interest  45 
iii.  Gross Domestic Product at Market Price        200 
iv.  Goods and Services Tax   10 
v. Consumption of Fixed Capital                        50 
vi. Rent 25 
vii.  Corporate Tax 5 
                                                                         
 
 
2 
 
 
 
 
 
3 
 
 
 
 
 
 
 
 
3 
17 ‘An economy is operating at under-employment level of income’. What is meant by 
the given statement? Discuss one fiscal measure and one monetary measure to tackle 
the situation.  
 
6 
 SECTION-B (Indian Economic Development)  
18 Name any two taxes which were subsumed in Goods and Services Tax (GST).   1 
19 State weather the following statement is true or false: 
‘The latest demonetization of currency was undertaken by the Government of India 
on November 8, 2016’.   
1 
20 Identify the correct sequence of alternatives given in Column II by matching them 
with respective terms in Column I: 
Column – I Column – II 
A. Land Ceiling i. Increase in production of food 
grain using high yielding variety 
seeds 
B. Land reforms ii. Portion of agricultural produce 
sold in the market 
C. Green Revolution iii. Fixing the maximum limit of land 
holding for an individual. 
D. Marketed Surplus iv. Change in the ownership of land 
(land to tillers) 
 
 
 
 
 
 
 
 
1 
 
 
 
 
 
 
21 Agriculture marketing does not comprise of ……………..…      
             (Choose the correct alternative) 
a) Transportation of the produce to the market place for sale. 
  
 
 
 
 
 
5 
 
b) Grading of the produce according to the quality. 
c) Storage of the produce for sale in future. 
d) Credit taken to meet expenditure on agriculture. 
 
1 
22 Under ………………………type of unemployment, marginal product gained by 
employing one additional unit of labour is zero.             
            (Fill up the blank with correct answer) 
                                                             Or 
………………………… an indicator which is used for analyzing the employment 
situation of a country.                        
          (Fill up the blank with correct answer) 
 
1 
23 In 1955, Karve committee was constituted for aiming the…..…………… 
                                                        (Fill up the blank with correct answer) 
 
1 
24 Identify the correct sequence of alternatives given in Column II by matching them 
with respective terms in Column I 
Column – I Column -II 
A. Study Group formed by Planning 
Commission for Poverty 
i. 2005 
B. ‘Task Force on Projections of the 
Minimum Needs and Effective 
Consumption Demand’  
ii. 1962 
C. Mahatma Gandhi National Rural 
Employment Guarantee Act 
iii. 2014 
D. Jan DhanYojana iv. 1979 
Choose the correct alternative: 
a) ii , iii , iv , i 
b) iii , ii , i,  iv  
c) i , ii , iii , iv   
d) ii , iv , i, iii 
 
 
 
 
 
 
 
 
 
 
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25 Solar energy can be converted into electricity with the help of 
……….……………………. (Photovoltaic cell/Lithium cells).           
   (Fill up the blank with correct alternative) 
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26 Arrange the following events of China in chronological order and choose the correct 
alternative: 
i. Great Proletarian Cultural Revolution  
ii. Great Leap Forward campaign  
iii. Introduction of Economic Reforms  
iv. First five year plan  
Choose the correct alternative: 
a) ii, iv, iii, i 
b) iv, ii, i, iii 
c) ii, iv, i, iii 
d) iv, i, ii, iii 
 
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27 Introduction of Economic Reform in Pakistan  took place  in……………  
            (Choose the correct alternative) 
 a) 1978  b) 1980  c)1988  d) 1991 
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