Class 12 Economics Official Sample Question Paper (2021-22- Term I) | Economics for Grade 12 PDF Download

 Page 1


 
SAMPLE QUESTION PAPER
MM: 40     
General Instructions: 
? This is a Subjective Question Paper
? This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
each.  
? 2 marks questions are Short Answer Type 
? 3 marks questions are Short Answer Type 
? 5 marks questions are Long Answer Type 
? This question paper contains Case/Source Based Questions.  
 
Q.No. 
1 Distinguish between Final Goods and Intermediate Goods. 
Distinguish between positive externalities and negative externalities.
 
2 Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
a) Autonomous Investments = 
b) Consumption function, C = 100 + 0.80Y
     
Calculate Change in Income (?Y) for a hypothetical economy
a) Marginal Propensity to Consume (MPC) = 0.8, and 
b) Change in Investment (?I) 
3 ‘As the income increases, people tend to save more’.  Justify the given statement. 
 
4 State and discuss any two indicators that 
 Compare and analyze the ‘Women Worker Population Ratio’ in 
on following information: 
5 ‘Investment in infrastructure contributes 
Justify the given statement with a valid
 
SAMPLE QUESTION PAPER 
    ECONOMICS (030) 
Class XII (TERM II) 2021-22  
 
     Time: 2 Hours
This is a Subjective Question Paper containing 13 questions. 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
2 marks questions are Short Answer Type Questions and are to be answered in 30
3 marks questions are Short Answer Type Questions and are to be answered in 50
5 marks questions are Long Answer Type Questions and are to be answered in 80
This question paper contains Case/Source Based Questions.   
QUESTIONS 
Distinguish between Final Goods and Intermediate Goods.  
Or  
Distinguish between positive externalities and negative externalities. 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
Autonomous Investments = ? 500 crores, and  
Consumption function, C = 100 + 0.80Y 
 Or  
Calculate Change in Income (?Y) for a hypothetical economy. Given that: 
Marginal Propensity to Consume (MPC) = 0.8, and  
nvestment (?I)         = ?1,000 crores  
‘As the income increases, people tend to save more’.  Justify the given statement. 
State and discuss any two indicators that help in measuring the health status of a country. 
Or 
Compare and analyze the ‘Women Worker Population Ratio’ in Rural and Urban 
 
‘Investment in infrastructure contributes to the economic development of a country.’ 
with a valid argument. 
Page | 1 
2 Hours 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
and are to be answered in 30-50 words. 
e to be answered in 50-80 words. 
and are to be answered in 80-120 words. 
MARKS 
2 
 
2 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:  
2 
 
 
 
 
2 
 
‘As the income increases, people tend to save more’.  Justify the given statement.  2 
in measuring the health status of a country.  
rban areas based 
2 
 
development of a country.’  2 
Page 2


 
SAMPLE QUESTION PAPER
MM: 40     
General Instructions: 
? This is a Subjective Question Paper
? This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
each.  
? 2 marks questions are Short Answer Type 
? 3 marks questions are Short Answer Type 
? 5 marks questions are Long Answer Type 
? This question paper contains Case/Source Based Questions.  
 
Q.No. 
1 Distinguish between Final Goods and Intermediate Goods. 
Distinguish between positive externalities and negative externalities.
 
2 Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
a) Autonomous Investments = 
b) Consumption function, C = 100 + 0.80Y
     
Calculate Change in Income (?Y) for a hypothetical economy
a) Marginal Propensity to Consume (MPC) = 0.8, and 
b) Change in Investment (?I) 
3 ‘As the income increases, people tend to save more’.  Justify the given statement. 
 
4 State and discuss any two indicators that 
 Compare and analyze the ‘Women Worker Population Ratio’ in 
on following information: 
5 ‘Investment in infrastructure contributes 
Justify the given statement with a valid
 
SAMPLE QUESTION PAPER 
    ECONOMICS (030) 
Class XII (TERM II) 2021-22  
 
     Time: 2 Hours
This is a Subjective Question Paper containing 13 questions. 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
2 marks questions are Short Answer Type Questions and are to be answered in 30
3 marks questions are Short Answer Type Questions and are to be answered in 50
5 marks questions are Long Answer Type Questions and are to be answered in 80
This question paper contains Case/Source Based Questions.   
QUESTIONS 
Distinguish between Final Goods and Intermediate Goods.  
Or  
Distinguish between positive externalities and negative externalities. 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
Autonomous Investments = ? 500 crores, and  
Consumption function, C = 100 + 0.80Y 
 Or  
Calculate Change in Income (?Y) for a hypothetical economy. Given that: 
Marginal Propensity to Consume (MPC) = 0.8, and  
nvestment (?I)         = ?1,000 crores  
‘As the income increases, people tend to save more’.  Justify the given statement. 
State and discuss any two indicators that help in measuring the health status of a country. 
Or 
Compare and analyze the ‘Women Worker Population Ratio’ in Rural and Urban 
 
‘Investment in infrastructure contributes to the economic development of a country.’ 
with a valid argument. 
Page | 1 
2 Hours 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
and are to be answered in 30-50 words. 
e to be answered in 50-80 words. 
and are to be answered in 80-120 words. 
MARKS 
2 
 
2 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:  
2 
 
 
 
 
2 
 
‘As the income increases, people tend to save more’.  Justify the given statement.  2 
in measuring the health status of a country.  
rban areas based 
2 
 
development of a country.’  2 
 
 
6 Giving valid reasons explain which of the following will not be included in estimation of 
National Income of India? 
a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
b) Salaries paid by the French
housekeeping department.
c) Compensation paid by the Government of India to the victims of floods. 
Or 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
of Real Gross Domestic Product and Price Index are given as 
respectively. 
 
7 Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’
 Read the following text carefully and answer question number 8 and 9 given below:
   SINO-PAK FRIENDSHIP CORRIDOR 
The China-Pakistan Economic Corridor (CPEC)
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
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 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
by the French Embassy, New Delhi to the local workers of the 
housekeeping department. 
Compensation paid by the Government of India to the victims of floods. 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
Domestic Product and Price Index are given as ?500 crores and 125 
Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’ 
 
Read the following text carefully and answer question number 8 and 9 given below:
PAK FRIENDSHIP CORRIDOR  
Pakistan Economic Corridor (CPEC) has deepened the decades
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 
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.  
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
Page | 2 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange. 
Embassy, New Delhi to the local workers of the 
Compensation paid by the Government of India to the victims of floods.  
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
?500 crores and 125 
 
 
 
3 
 
 
 
 
3 
Study the following information and compare the Economies of India and Singapore on the 
 
 
 
 
 
 
 
 
 
 
 
3 
Read the following text carefully and answer question number 8 and 9 given below: 
has deepened the decades-long strategic 
relationship between the two nations. But it has also sparked criticism for burdening Pakistan 
to gain access to 
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 
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
 
 
Page 3


 
SAMPLE QUESTION PAPER
MM: 40     
General Instructions: 
? This is a Subjective Question Paper
? This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
each.  
? 2 marks questions are Short Answer Type 
? 3 marks questions are Short Answer Type 
? 5 marks questions are Long Answer Type 
? This question paper contains Case/Source Based Questions.  
 
Q.No. 
1 Distinguish between Final Goods and Intermediate Goods. 
Distinguish between positive externalities and negative externalities.
 
2 Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
a) Autonomous Investments = 
b) Consumption function, C = 100 + 0.80Y
     
Calculate Change in Income (?Y) for a hypothetical economy
a) Marginal Propensity to Consume (MPC) = 0.8, and 
b) Change in Investment (?I) 
3 ‘As the income increases, people tend to save more’.  Justify the given statement. 
 
4 State and discuss any two indicators that 
 Compare and analyze the ‘Women Worker Population Ratio’ in 
on following information: 
5 ‘Investment in infrastructure contributes 
Justify the given statement with a valid
 
SAMPLE QUESTION PAPER 
    ECONOMICS (030) 
Class XII (TERM II) 2021-22  
 
     Time: 2 Hours
This is a Subjective Question Paper containing 13 questions. 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
2 marks questions are Short Answer Type Questions and are to be answered in 30
3 marks questions are Short Answer Type Questions and are to be answered in 50
5 marks questions are Long Answer Type Questions and are to be answered in 80
This question paper contains Case/Source Based Questions.   
QUESTIONS 
Distinguish between Final Goods and Intermediate Goods.  
Or  
Distinguish between positive externalities and negative externalities. 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
Autonomous Investments = ? 500 crores, and  
Consumption function, C = 100 + 0.80Y 
 Or  
Calculate Change in Income (?Y) for a hypothetical economy. Given that: 
Marginal Propensity to Consume (MPC) = 0.8, and  
nvestment (?I)         = ?1,000 crores  
‘As the income increases, people tend to save more’.  Justify the given statement. 
State and discuss any two indicators that help in measuring the health status of a country. 
Or 
Compare and analyze the ‘Women Worker Population Ratio’ in Rural and Urban 
 
‘Investment in infrastructure contributes to the economic development of a country.’ 
with a valid argument. 
Page | 1 
2 Hours 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
and are to be answered in 30-50 words. 
e to be answered in 50-80 words. 
and are to be answered in 80-120 words. 
MARKS 
2 
 
2 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:  
2 
 
 
 
 
2 
 
‘As the income increases, people tend to save more’.  Justify the given statement.  2 
in measuring the health status of a country.  
rban areas based 
2 
 
development of a country.’  2 
 
 
6 Giving valid reasons explain which of the following will not be included in estimation of 
National Income of India? 
a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
b) Salaries paid by the French
housekeeping department.
c) Compensation paid by the Government of India to the victims of floods. 
Or 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
of Real Gross Domestic Product and Price Index are given as 
respectively. 
 
7 Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’
 Read the following text carefully and answer question number 8 and 9 given below:
   SINO-PAK FRIENDSHIP CORRIDOR 
The China-Pakistan Economic Corridor (CPEC)
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
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 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
by the French Embassy, New Delhi to the local workers of the 
housekeeping department. 
Compensation paid by the Government of India to the victims of floods. 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
Domestic Product and Price Index are given as ?500 crores and 125 
Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’ 
 
Read the following text carefully and answer question number 8 and 9 given below:
PAK FRIENDSHIP CORRIDOR  
Pakistan Economic Corridor (CPEC) has deepened the decades
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 
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.  
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
Page | 2 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange. 
Embassy, New Delhi to the local workers of the 
Compensation paid by the Government of India to the victims of floods.  
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
?500 crores and 125 
 
 
 
3 
 
 
 
 
3 
Study the following information and compare the Economies of India and Singapore on the 
 
 
 
 
 
 
 
 
 
 
 
3 
Read the following text carefully and answer question number 8 and 9 given below: 
has deepened the decades-long strategic 
relationship between the two nations. But it has also sparked criticism for burdening Pakistan 
to gain access to 
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 
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
 
 
Page | 3 
 
harvest projects met this need, leading to a dramatic increase in Pakistan’s power generation 
capacity, bringing an end to supply-side constraints that had made rolling blackouts a regular 
occurrence across the country. 
 
Pakistan leaned into CPEC, leveraging Chinese financing and technical assistance in an 
attempt to end power shortages that had paralyzed its country’s economy. Years later, 
China’s influence in Pakistan has increased at an unimaginable pace.   
 
China As Pakistan’s Largest Bilateral Creditor: China’s ability to exert influence on 
Pakistan’s 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 Pakistan’s 
finance ministry, Pakistan’s total public and publicly guaranteed external debt stood at $44.35 
billion in June 2013, just 9.3 percent of which was owed to China. By April 2021, this 
external debt had ballooned to $90.12 billion, with Pakistan owing 27.4 percent —$24.7 
billion — of its total external debt to China, according to the International Monetary Fund 
(IMF). 
 
Additionally, China provided financial and technical expertise to help Pakistan build its road 
infrastructure, 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 socioeconomic welfare of Pakistani citizens. 
(https://www.usip.org/publications/2021/05/pakistans-growing-problem-its-china-economic-corridor - Modified) 
 
8 Outline and discuss any two economic advantages of China Pakistan Economic Corridor 
(CPEC) accruing to the economy of Pakistan. 
 
3 
9 Analyse the implication of bilateral ‘debt-trap’ situation of Pakistan vis-à-vis the Chinese 
Economy. 
 
3 
10 Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an 
index of economic welfare.  
3 
Page 4


 
SAMPLE QUESTION PAPER
MM: 40     
General Instructions: 
? This is a Subjective Question Paper
? This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
each.  
? 2 marks questions are Short Answer Type 
? 3 marks questions are Short Answer Type 
? 5 marks questions are Long Answer Type 
? This question paper contains Case/Source Based Questions.  
 
Q.No. 
1 Distinguish between Final Goods and Intermediate Goods. 
Distinguish between positive externalities and negative externalities.
 
2 Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
a) Autonomous Investments = 
b) Consumption function, C = 100 + 0.80Y
     
Calculate Change in Income (?Y) for a hypothetical economy
a) Marginal Propensity to Consume (MPC) = 0.8, and 
b) Change in Investment (?I) 
3 ‘As the income increases, people tend to save more’.  Justify the given statement. 
 
4 State and discuss any two indicators that 
 Compare and analyze the ‘Women Worker Population Ratio’ in 
on following information: 
5 ‘Investment in infrastructure contributes 
Justify the given statement with a valid
 
SAMPLE QUESTION PAPER 
    ECONOMICS (030) 
Class XII (TERM II) 2021-22  
 
     Time: 2 Hours
This is a Subjective Question Paper containing 13 questions. 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
2 marks questions are Short Answer Type Questions and are to be answered in 30
3 marks questions are Short Answer Type Questions and are to be answered in 50
5 marks questions are Long Answer Type Questions and are to be answered in 80
This question paper contains Case/Source Based Questions.   
QUESTIONS 
Distinguish between Final Goods and Intermediate Goods.  
Or  
Distinguish between positive externalities and negative externalities. 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:
Autonomous Investments = ? 500 crores, and  
Consumption function, C = 100 + 0.80Y 
 Or  
Calculate Change in Income (?Y) for a hypothetical economy. Given that: 
Marginal Propensity to Consume (MPC) = 0.8, and  
nvestment (?I)         = ?1,000 crores  
‘As the income increases, people tend to save more’.  Justify the given statement. 
State and discuss any two indicators that help in measuring the health status of a country. 
Or 
Compare and analyze the ‘Women Worker Population Ratio’ in Rural and Urban 
 
‘Investment in infrastructure contributes to the economic development of a country.’ 
with a valid argument. 
Page | 1 
2 Hours 
This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks 
and are to be answered in 30-50 words. 
e to be answered in 50-80 words. 
and are to be answered in 80-120 words. 
MARKS 
2 
 
2 
Calculate equilibrium level of income for a hypothetical economy, for which it is given that:  
2 
 
 
 
 
2 
 
‘As the income increases, people tend to save more’.  Justify the given statement.  2 
in measuring the health status of a country.  
rban areas based 
2 
 
development of a country.’  2 
 
 
6 Giving valid reasons explain which of the following will not be included in estimation of 
National Income of India? 
a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
b) Salaries paid by the French
housekeeping department.
c) Compensation paid by the Government of India to the victims of floods. 
Or 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
of Real Gross Domestic Product and Price Index are given as 
respectively. 
 
7 Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’
 Read the following text carefully and answer question number 8 and 9 given below:
   SINO-PAK FRIENDSHIP CORRIDOR 
The China-Pakistan Economic Corridor (CPEC)
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
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 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
by the French Embassy, New Delhi to the local workers of the 
housekeeping department. 
Compensation paid by the Government of India to the victims of floods. 
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
Domestic Product and Price Index are given as ?500 crores and 125 
Study the following information and compare the Economies of India and Singapore on the 
grounds of ‘Investment in infrastructure as a percentage of GDP’ 
 
Read the following text carefully and answer question number 8 and 9 given below:
PAK FRIENDSHIP CORRIDOR  
Pakistan Economic Corridor (CPEC) has deepened the decades
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 
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.  
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
Page | 2 
Giving valid reasons explain which of the following will not be included in estimation of 
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange. 
Embassy, New Delhi to the local workers of the 
Compensation paid by the Government of India to the victims of floods.  
Estimate the value of Nominal Gross Domestic Product for a hypothetical economy, the value 
?500 crores and 125 
 
 
 
3 
 
 
 
 
3 
Study the following information and compare the Economies of India and Singapore on the 
 
 
 
 
 
 
 
 
 
 
 
3 
Read the following text carefully and answer question number 8 and 9 given below: 
has deepened the decades-long strategic 
relationship between the two nations. But it has also sparked criticism for burdening Pakistan 
to gain access to 
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 
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 
in hard infrastructure, particularly power plants and highways. CPEC’s early 
 
 
Page | 3 
 
harvest projects met this need, leading to a dramatic increase in Pakistan’s power generation 
capacity, bringing an end to supply-side constraints that had made rolling blackouts a regular 
occurrence across the country. 
 
Pakistan leaned into CPEC, leveraging Chinese financing and technical assistance in an 
attempt to end power shortages that had paralyzed its country’s economy. Years later, 
China’s influence in Pakistan has increased at an unimaginable pace.   
 
China As Pakistan’s Largest Bilateral Creditor: China’s ability to exert influence on 
Pakistan’s 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 Pakistan’s 
finance ministry, Pakistan’s total public and publicly guaranteed external debt stood at $44.35 
billion in June 2013, just 9.3 percent of which was owed to China. By April 2021, this 
external debt had ballooned to $90.12 billion, with Pakistan owing 27.4 percent —$24.7 
billion — of its total external debt to China, according to the International Monetary Fund 
(IMF). 
 
Additionally, China provided financial and technical expertise to help Pakistan build its road 
infrastructure, 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 socioeconomic welfare of Pakistani citizens. 
(https://www.usip.org/publications/2021/05/pakistans-growing-problem-its-china-economic-corridor - Modified) 
 
8 Outline and discuss any two economic advantages of China Pakistan Economic Corridor 
(CPEC) accruing to the economy of Pakistan. 
 
3 
9 Analyse the implication of bilateral ‘debt-trap’ situation of Pakistan vis-à-vis the Chinese 
Economy. 
 
3 
10 Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an 
index of economic welfare.  
3 
Page | 4 
 
 
11 ‘Monetary measures offer a valid solution to the problem of Inflationary gap in an economy’.  
State and discuss any two monetary measures to justify the given statement.  
 
5 
12 a) From the following data calculate the value of Domestic Income:  
S.No. ITEMS  Amount  
(in ? Crores) 
i) Compensation of Employees  2,000 
ii) Rent and Interest  800 
iii) Indirect Taxes  120 
iv) Corporate Tax  460 
v) Consumption of Fixed Capital  100 
vi) Subsidies  20 
vii) Dividend  940 
viii) Undistributed Profits 300 
ix) Net Factor Income from Abroad 150 
x) Mixed Income of Self Employed  200 
b) Distinguish between ‘Value of Output’ and ‘Value Added’. 
      
Or 
a) Given the following data, find Net Value Added at Factor Cost by Sambhav (a farmer) 
producing Wheat: 
 Items (? in crore) 
i) Sale of wheat by the farmer in the local market 6800 
ii) Purchase of Tractor 5000 
iii) Procurement of wheat by the Government from the farmer 200 
iv) Consumption of wheat by the farming family during the Year 50 
v) Expenditure on the maintenance of existing capital stock 100 
vi) Subsidy 20 
 
b)  State any two components of ‘Net Factor Income from Abroad’.   
 
3 
 
 
 
 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
3 
 
 
2 
13 a) ‘Pesticides are chemical compounds designed to kill pests. Many pesticides can also pose 
health risks to people even if exposed to nominal quantities. ‘ 
In the light of the above statement, suggest any two traditional methods for replacement of  
the chemical pesticides. 
 
b) ‘In recent times the Indian Economy has experienced the problem of Casualisation of the 
workforce. This problem has only been aggravated by the outbreak of COVID-19.’ 
Do you agree with the given statement? Discuss any two disadvantages of casualisation of the 
workforce in the light of the above statement.  
 
2 
 
 
 
3