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SAMPLE QUESTION PAPER 2020-21
CLASS XII ECONOMICS (030)
MM – 80 TIME: 3 HOURS
General Instructions:
1 This question paper contains two parts:
Part A - Macro Economics (40 marks)
Part B - Indian Economic Development (40 marks).
2 Marks for questions are indicated against each question.
3 Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)
are 1 mark questions and are to be answered in one word/sentence.
4 Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.
5 Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be
answered in 60 - 80 words each.
6 Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be
answered in 80-100 words each.
7 Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be
answered in 100-150 words each.
8 Answers should be brief and to the point and the above word limit be adhered to as
far as possible.
Q.No QUESTIONS Marks
PART A - MACRO ECONOMICS
1 Inventory is a ...................concept whereas the change in inventory is a
...................... concept. (Fill up the blank with correct alternative)
a. stock, flow
b. flow, stock
c. stock, stock
d. flow, flow
Or
1
Page 2
Page | 1
SAMPLE QUESTION PAPER 2020-21
CLASS XII ECONOMICS (030)
MM – 80 TIME: 3 HOURS
General Instructions:
1 This question paper contains two parts:
Part A - Macro Economics (40 marks)
Part B - Indian Economic Development (40 marks).
2 Marks for questions are indicated against each question.
3 Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)
are 1 mark questions and are to be answered in one word/sentence.
4 Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.
5 Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be
answered in 60 - 80 words each.
6 Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be
answered in 80-100 words each.
7 Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be
answered in 100-150 words each.
8 Answers should be brief and to the point and the above word limit be adhered to as
far as possible.
Q.No QUESTIONS Marks
PART A - MACRO ECONOMICS
1 Inventory is a ...................concept whereas the change in inventory is a
...................... concept. (Fill up the blank with correct alternative)
a. stock, flow
b. flow, stock
c. stock, stock
d. flow, flow
Or
1
Page | 2
If in an economy the value of Net Factor Income from Abroad is ? 200
crores and the value of Factor Income to Abroad is ? 40 crores. Identify the
value of Factor Income from Abroad. (Choose the correct alternative)
a) ? 200 crores b) ? 160 crores
c) ? 240 crores d) ? 180 crores
1
2 In the present COVID-19 times, many economists have raised their
concerns that Indian economy may have to face a deflationary situation, due
to reduced economic activities in the country.
Suppose you are a member of the high powered committee constituted by
the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ................
(restriction/release) of the money supply be ensured, by the Reserve Bank
of India (RBI). (Choose the correct alternative)
1
3 Supply of money refers to……................. (Choose the correct alternative)
a. currency held by the public
b. currency held by Reserve Bank of India (RBI)
c. currency held by the public and demand deposits with commercial
banks
d. currency held in the government account
1
4 Identify the correct pair of formula from the following column I and II:
(Choose the correct alternative)
Column I Column II
A Current Account Surplus i. Receipts < Payments
B Current Account Surplus ii. Receipts > Payments
C Balance Current Account iii. Receipts ? Payments
D Current Account Deficit iv. Receipts = Payments
Alternatives:
a) A - i b) B - ii c) C - iii d) D - iv
1
5 Identify which of the following statements is true? (Choose the correct
alternative)
a. The flexible exchange rate system gives the government more
Page 3
Page | 1
SAMPLE QUESTION PAPER 2020-21
CLASS XII ECONOMICS (030)
MM – 80 TIME: 3 HOURS
General Instructions:
1 This question paper contains two parts:
Part A - Macro Economics (40 marks)
Part B - Indian Economic Development (40 marks).
2 Marks for questions are indicated against each question.
3 Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)
are 1 mark questions and are to be answered in one word/sentence.
4 Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.
5 Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be
answered in 60 - 80 words each.
6 Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be
answered in 80-100 words each.
7 Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be
answered in 100-150 words each.
8 Answers should be brief and to the point and the above word limit be adhered to as
far as possible.
Q.No QUESTIONS Marks
PART A - MACRO ECONOMICS
1 Inventory is a ...................concept whereas the change in inventory is a
...................... concept. (Fill up the blank with correct alternative)
a. stock, flow
b. flow, stock
c. stock, stock
d. flow, flow
Or
1
Page | 2
If in an economy the value of Net Factor Income from Abroad is ? 200
crores and the value of Factor Income to Abroad is ? 40 crores. Identify the
value of Factor Income from Abroad. (Choose the correct alternative)
a) ? 200 crores b) ? 160 crores
c) ? 240 crores d) ? 180 crores
1
2 In the present COVID-19 times, many economists have raised their
concerns that Indian economy may have to face a deflationary situation, due
to reduced economic activities in the country.
Suppose you are a member of the high powered committee constituted by
the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ................
(restriction/release) of the money supply be ensured, by the Reserve Bank
of India (RBI). (Choose the correct alternative)
1
3 Supply of money refers to……................. (Choose the correct alternative)
a. currency held by the public
b. currency held by Reserve Bank of India (RBI)
c. currency held by the public and demand deposits with commercial
banks
d. currency held in the government account
1
4 Identify the correct pair of formula from the following column I and II:
(Choose the correct alternative)
Column I Column II
A Current Account Surplus i. Receipts < Payments
B Current Account Surplus ii. Receipts > Payments
C Balance Current Account iii. Receipts ? Payments
D Current Account Deficit iv. Receipts = Payments
Alternatives:
a) A - i b) B - ii c) C - iii d) D - iv
1
5 Identify which of the following statements is true? (Choose the correct
alternative)
a. The flexible exchange rate system gives the government more
Page | 3
flexibility to maintain large stocks of foreign exchange reserves.
b. In the Managed floating exchange rate system, the government
intervenes to buy and sell foreign currencies.
c. In the Managed floating exchange rate system, the central bank
intervenes to moderate exchange rate fluctuations.
d. In the Fixed exchange rate system, market forces fix the exchange
rate.
1
6 An Indian real estate company receives rent from Google in New York. This
transaction would be recorded on………………..side of
……………..account. (Fill up the blanks with correct alternative)
a. credit, current c. debit, capital
b. credit, capital d. debit, current
1
Read the following news report and answer Questions 7-10 on the basis
of the same:
The Reserve Bank of India (RBI), cut Repo Rate to 4.4%, the lowest in at
least 15 years. Also, it reduced the Cash Reserve Ratio (CRR) maintained
by the banks for the first time in over seven years. CRR for all banks was
cut by 100 basis points to release ? 1.37 lakh crores across the banking
system. RBI governor Dr. Shaktikanta Das predicted a big global recession
and said India will not be immune. It all depends how India responds to the
situation. Aggregate demand may weaken and ease core inflation.
The Economic Times; March 27th, 2020
7 Cut in Repo rate by RBI is likely to……….. (increase/decrease) the demand
for goods and services in the economy. (choose the correct alternative)
1
8 Decrease in Cash Reserve Ratio will lead to…...........…
(choose the correct alternative)
a. fall in aggregate demand c.rise in aggregate demand
b. no change in aggregate demand d. fall in general price level
1
Page 4
Page | 1
SAMPLE QUESTION PAPER 2020-21
CLASS XII ECONOMICS (030)
MM – 80 TIME: 3 HOURS
General Instructions:
1 This question paper contains two parts:
Part A - Macro Economics (40 marks)
Part B - Indian Economic Development (40 marks).
2 Marks for questions are indicated against each question.
3 Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)
are 1 mark questions and are to be answered in one word/sentence.
4 Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.
5 Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be
answered in 60 - 80 words each.
6 Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be
answered in 80-100 words each.
7 Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be
answered in 100-150 words each.
8 Answers should be brief and to the point and the above word limit be adhered to as
far as possible.
Q.No QUESTIONS Marks
PART A - MACRO ECONOMICS
1 Inventory is a ...................concept whereas the change in inventory is a
...................... concept. (Fill up the blank with correct alternative)
a. stock, flow
b. flow, stock
c. stock, stock
d. flow, flow
Or
1
Page | 2
If in an economy the value of Net Factor Income from Abroad is ? 200
crores and the value of Factor Income to Abroad is ? 40 crores. Identify the
value of Factor Income from Abroad. (Choose the correct alternative)
a) ? 200 crores b) ? 160 crores
c) ? 240 crores d) ? 180 crores
1
2 In the present COVID-19 times, many economists have raised their
concerns that Indian economy may have to face a deflationary situation, due
to reduced economic activities in the country.
Suppose you are a member of the high powered committee constituted by
the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ................
(restriction/release) of the money supply be ensured, by the Reserve Bank
of India (RBI). (Choose the correct alternative)
1
3 Supply of money refers to……................. (Choose the correct alternative)
a. currency held by the public
b. currency held by Reserve Bank of India (RBI)
c. currency held by the public and demand deposits with commercial
banks
d. currency held in the government account
1
4 Identify the correct pair of formula from the following column I and II:
(Choose the correct alternative)
Column I Column II
A Current Account Surplus i. Receipts < Payments
B Current Account Surplus ii. Receipts > Payments
C Balance Current Account iii. Receipts ? Payments
D Current Account Deficit iv. Receipts = Payments
Alternatives:
a) A - i b) B - ii c) C - iii d) D - iv
1
5 Identify which of the following statements is true? (Choose the correct
alternative)
a. The flexible exchange rate system gives the government more
Page | 3
flexibility to maintain large stocks of foreign exchange reserves.
b. In the Managed floating exchange rate system, the government
intervenes to buy and sell foreign currencies.
c. In the Managed floating exchange rate system, the central bank
intervenes to moderate exchange rate fluctuations.
d. In the Fixed exchange rate system, market forces fix the exchange
rate.
1
6 An Indian real estate company receives rent from Google in New York. This
transaction would be recorded on………………..side of
……………..account. (Fill up the blanks with correct alternative)
a. credit, current c. debit, capital
b. credit, capital d. debit, current
1
Read the following news report and answer Questions 7-10 on the basis
of the same:
The Reserve Bank of India (RBI), cut Repo Rate to 4.4%, the lowest in at
least 15 years. Also, it reduced the Cash Reserve Ratio (CRR) maintained
by the banks for the first time in over seven years. CRR for all banks was
cut by 100 basis points to release ? 1.37 lakh crores across the banking
system. RBI governor Dr. Shaktikanta Das predicted a big global recession
and said India will not be immune. It all depends how India responds to the
situation. Aggregate demand may weaken and ease core inflation.
The Economic Times; March 27th, 2020
7 Cut in Repo rate by RBI is likely to……….. (increase/decrease) the demand
for goods and services in the economy. (choose the correct alternative)
1
8 Decrease in Cash Reserve Ratio will lead to…...........…
(choose the correct alternative)
a. fall in aggregate demand c.rise in aggregate demand
b. no change in aggregate demand d. fall in general price level
1
Page | 4
9 The difference by which actual Aggregate Demand exceeds the Aggregate
Demand, required to establish full employment equilibrium is known
as……….………(inflationary gap/deflationary gap).
(choose the correct alternative)
1
10 The impact of „Excess Demand? under Keynesian theory of income and
employment, in an economy are: (choose the correct alternative)
a. decrease in income, output, employment and general price level
b. decrease in nominal income, but no change in real output
c. increase in income, output, employment and general price level
d. no change in output/employment but increase in general price level.
1
11. State with valid reason, which of the following statement is true or false:
a. Gross Value Added at market price and Gross Domestic Product at
market price are one and the same thing.
b. Intermediate goods are always durable in nature.
3
12 State, giving valid reasons, whether the following statements are true or
false:
a. Current account in Balance of Payments records only the exports and
imports of goods and services.
b. Borrowings from abroad are recorded in the Capital Account of the
Balance of Payments on the debit side.
Or
„Trade Deficit must exist if a country is facing a situation of Current
Account Deficit?.
Defend or refute the statement, with valid argument.
3
3
13 a. Define money multiplier.
b. „Credit creation is inversely related to the reserve deposit ratio?.
Justify the given statement, using a hypothetical example.
1
3
14 In an economy C= 200 + 0.5 Y is the consumption function where C is the
consumption expenditure and Y is the national income. Investment
expenditure is ? 400 crores.
Is the economy in equilibrium at an income level ?1500 crores? Justify your
answer.
4
Page 5
Page | 1
SAMPLE QUESTION PAPER 2020-21
CLASS XII ECONOMICS (030)
MM – 80 TIME: 3 HOURS
General Instructions:
1 This question paper contains two parts:
Part A - Macro Economics (40 marks)
Part B - Indian Economic Development (40 marks).
2 Marks for questions are indicated against each question.
3 Question No. 1-10 and Question No. 18 – 27 (including two Case Based Questions)
are 1 mark questions and are to be answered in one word/sentence.
4 Case Based Questions (CBQ’s) are Question No. 7-10 and Question No. 25-27.
5 Question No. 11-12 and Question No. 28 – 29 are 3 marks questions and are to be
answered in 60 - 80 words each.
6 Question No. 13-15 and Question No. 30 – 32 are 4 marks questions and are to be
answered in 80-100 words each.
7 Question No. 16-17 and Question No. 33 – 34 are 6 marks questions and are to be
answered in 100-150 words each.
8 Answers should be brief and to the point and the above word limit be adhered to as
far as possible.
Q.No QUESTIONS Marks
PART A - MACRO ECONOMICS
1 Inventory is a ...................concept whereas the change in inventory is a
...................... concept. (Fill up the blank with correct alternative)
a. stock, flow
b. flow, stock
c. stock, stock
d. flow, flow
Or
1
Page | 2
If in an economy the value of Net Factor Income from Abroad is ? 200
crores and the value of Factor Income to Abroad is ? 40 crores. Identify the
value of Factor Income from Abroad. (Choose the correct alternative)
a) ? 200 crores b) ? 160 crores
c) ? 240 crores d) ? 180 crores
1
2 In the present COVID-19 times, many economists have raised their
concerns that Indian economy may have to face a deflationary situation, due
to reduced economic activities in the country.
Suppose you are a member of the high powered committee constituted by
the Reserve Bank of India (RBI).
You have suggested that as the supervisor of commercial banks, ................
(restriction/release) of the money supply be ensured, by the Reserve Bank
of India (RBI). (Choose the correct alternative)
1
3 Supply of money refers to……................. (Choose the correct alternative)
a. currency held by the public
b. currency held by Reserve Bank of India (RBI)
c. currency held by the public and demand deposits with commercial
banks
d. currency held in the government account
1
4 Identify the correct pair of formula from the following column I and II:
(Choose the correct alternative)
Column I Column II
A Current Account Surplus i. Receipts < Payments
B Current Account Surplus ii. Receipts > Payments
C Balance Current Account iii. Receipts ? Payments
D Current Account Deficit iv. Receipts = Payments
Alternatives:
a) A - i b) B - ii c) C - iii d) D - iv
1
5 Identify which of the following statements is true? (Choose the correct
alternative)
a. The flexible exchange rate system gives the government more
Page | 3
flexibility to maintain large stocks of foreign exchange reserves.
b. In the Managed floating exchange rate system, the government
intervenes to buy and sell foreign currencies.
c. In the Managed floating exchange rate system, the central bank
intervenes to moderate exchange rate fluctuations.
d. In the Fixed exchange rate system, market forces fix the exchange
rate.
1
6 An Indian real estate company receives rent from Google in New York. This
transaction would be recorded on………………..side of
……………..account. (Fill up the blanks with correct alternative)
a. credit, current c. debit, capital
b. credit, capital d. debit, current
1
Read the following news report and answer Questions 7-10 on the basis
of the same:
The Reserve Bank of India (RBI), cut Repo Rate to 4.4%, the lowest in at
least 15 years. Also, it reduced the Cash Reserve Ratio (CRR) maintained
by the banks for the first time in over seven years. CRR for all banks was
cut by 100 basis points to release ? 1.37 lakh crores across the banking
system. RBI governor Dr. Shaktikanta Das predicted a big global recession
and said India will not be immune. It all depends how India responds to the
situation. Aggregate demand may weaken and ease core inflation.
The Economic Times; March 27th, 2020
7 Cut in Repo rate by RBI is likely to……….. (increase/decrease) the demand
for goods and services in the economy. (choose the correct alternative)
1
8 Decrease in Cash Reserve Ratio will lead to…...........…
(choose the correct alternative)
a. fall in aggregate demand c.rise in aggregate demand
b. no change in aggregate demand d. fall in general price level
1
Page | 4
9 The difference by which actual Aggregate Demand exceeds the Aggregate
Demand, required to establish full employment equilibrium is known
as……….………(inflationary gap/deflationary gap).
(choose the correct alternative)
1
10 The impact of „Excess Demand? under Keynesian theory of income and
employment, in an economy are: (choose the correct alternative)
a. decrease in income, output, employment and general price level
b. decrease in nominal income, but no change in real output
c. increase in income, output, employment and general price level
d. no change in output/employment but increase in general price level.
1
11. State with valid reason, which of the following statement is true or false:
a. Gross Value Added at market price and Gross Domestic Product at
market price are one and the same thing.
b. Intermediate goods are always durable in nature.
3
12 State, giving valid reasons, whether the following statements are true or
false:
a. Current account in Balance of Payments records only the exports and
imports of goods and services.
b. Borrowings from abroad are recorded in the Capital Account of the
Balance of Payments on the debit side.
Or
„Trade Deficit must exist if a country is facing a situation of Current
Account Deficit?.
Defend or refute the statement, with valid argument.
3
3
13 a. Define money multiplier.
b. „Credit creation is inversely related to the reserve deposit ratio?.
Justify the given statement, using a hypothetical example.
1
3
14 In an economy C= 200 + 0.5 Y is the consumption function where C is the
consumption expenditure and Y is the national income. Investment
expenditure is ? 400 crores.
Is the economy in equilibrium at an income level ?1500 crores? Justify your
answer.
4
Page | 5
Or
Define: i) Ex-Ante Savings ii) Full Employment
2+2
15 „India?s GDP contracted 23.9% in the April-June quarter of 2020-21 as
compared to same period of 2019-20, suggesting that the lockdown has hit
the economy hard?. The Hindustan Times, 1st September 2020
State and discuss any two fiscal measures that may be taken by the
Government of India to correct the situation indicated in the above news
report.
4
16 a. „Domestic/household services performed by a woman may not be
considered as an economic activity?.
Defend or refute the given statement with valid reason.
b. „Compensation to the victims of a cyclone is an example of a welfare
measure taken by the government?.
State with valid reason, should it be included/not included in the
estimation of national income of India.
Or
Suppose the Gross Domestic Product (GDP) of Nation X was ? 2,000 crores
in 2018-19, whereas the Gross Domestic Product of Nation Y in the same
year was ? 120,000 crores. If the Gross Domestic Product of Nation X rises
to ? 4,000 crores in 2019-20 and the Gross Domestic Product of Nation Y
rises to ? 200,000 crores in 2019-20.
Compare the rate of change of GDP of Nations X and Y, taking 2018-19 as
base year.
3
3
6
17 a. Elaborate the objective of „allocation of resources? in the
Government budget.
b. Discuss briefly how the Government budget can be used as an
effective tool in the process of employment generation.
3
3
PART B - INDIAN ECONOMIC DEVELOPMENT
18 …………….was the Indian Finance Minister in 1991, acknowledged for his
capabilities to steer away the economic crisis looming large on the erstwhile
Indian Economy. (Choose the correct alternative)
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