Dear students, if you are in Class 12 for the academic year 2024-25, this information is very important for you. Today, we are going to share a CBSE Board Class 12 Economics Sample Paper through this website. This sample paper can be extremely useful for your exam, and with the help of these sample papers, you can score well in your examination.
Note: CBSE Board Class 12 Economics Sample Paper has been created by experienced teachers, and some questions from it may appear in your exam.
CBSE Board Class 12 Economics Sample Paper (Set -4)
Class – 12th Exam – 2024 – 25
Economics (030)
Time : 3 Hours Max. Marks : 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 Type Questions of 1 mark each.
3. This paper contains 4 Short Answer Type Questions of 3 marks each to be answered in 60 to
80 words.
4. This paper contains 6 Short Answer Type Questions of 4 marks each to be answered in 80 to
100 words.
5. This paper contains 4 Long Answer Type Questions of 6 marks each to be answered in 100 to
150 words.
SECTION-A – Macro Economics
1. Read the following statements carefully:
Assertion (A): Capital receipts in the government budget include loans raised by the government
from the public through the sale of government securities.
Reason (R): Capital receipts do not create any liability for the government and are a permanent
source of funds.
Choose the correct option from those given below:
(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 not the correct explanation
of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
2. “Due to a surge in imports of electronic goods and a slowdown in exports, the country’s
current account deficit has widened to 2.5% of GDP in the first half of 2023. Policymakers are concerned about the sustainability of this deficit.”
Source: [Balance of Payments Statistics, 2023](https://www.rbi.org.in/Scripts/BS_
PressReleaseDisplay.aspx?prid=54004)
What does a current account deficit signify in the balance of payments?
(A) Exports exceed imports
(B) Imports exceed exports
(C) Capital inflows exceed outflows
(D) Foreign exchange reserves are increasing.
3. In the calculation of national income accounting, the value of ________ goods is deliberately excluded to prevent the issue of double counting of goods and services within the economy.
Choose the correct option to fill in the blank.
(A) Final
(B) Intermediate
(C) Capital
(D) Consumer
4. The Reserve Bank of India increases the ________ Rate to control inflation by making
borrowing more expensive for commercial banks.
Choose the correct option to fill in the blank.
(A) Statutory Liquidity
(B) Repo
(C) Reverse Repo
(D) Cash Reserve
5. From the given diagrams, identify the correct option that indicates the ‘Total Revenue Line’ passing through the origin drawn at a particular angle.
(A) (i)
(B) (ii)
(C) (iii)
(D) (iv)
6. “Considering the depreciation of Indian currency (`) in the international market, the Reserve Bank of Indian (RBI) has decided to purchase Indian currency (`) in the open market.”
This represents________exchange rate system.
(A) fixed
(B) flexible
(C) managed floating
(D) manipulated
7. Demand deposits include:
(A) Saving account deposits and current account deposits
(B) Saving account deposits and fixed deposits
(C) Current account deposits and fixed deposits
(D) All types of deposits
8. Which bank in India is the controller of credit?
(A) Axis bank
(B) State Bank of India
(C) Reserve Bank of India
(D) Punjab National Bank
9. Goods purchased for _______ purpose(s) are final goods.
(A) investment
(B) satisfaction of wants
(C) Both (A) and (B)
(D) None of these
OR
Read the following figure carefully and choose the correct option from the alternatives given below:
Alternatives:
(A) Real
(B) Nominal
(C) Circular
(D) Both (A) and (C)
10. Assertion (A): A country always tries to balance the BoP, i.e., balance in current account equals to balance in capital account.
Reason (R): Balanced BoP indicates stable economic relations with rest of the world.
In the light of the given statements, choose the correct alternative from the following:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(C) Assertion (A) is false but Reason (R) is true
(D) Assertion (A) is true but Reason (R) is false
11. Statement 1: Balance of Payments is a systematic record of all economic transactions that take place between one country and the rest of the world during a given period (say a year).
Statement 2: Balance of Trade is the difference between the value of goods exported and value of goods imported in a given year.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is false and statement 2 is true
(B) Statement 1 is true and statement 2 is false
(C) Both statements 1 and 2 are false
(D) Both statements 1 and 2 are true
12. “Indian Rupee (`) plunged to all time low of `80.10 against the US Dollar ($).”
—The Economic Times
In the light of the above report, discuss the impact of the situation on Indian imports.
13. Government is incurring expenditure on “Child immunisation programme”. Does the given statement mean that welfare of the people of India will increase along with increase in its GDP.
Comment with reason.
OR
Calculate net value added at factor cost from the following:
14. State whether the following statements are true or false. Give reason for your answer.
(a) When MPC is greater than MPS, the value of investment multiplier will be greater than 5.
(b) The value of MPS can never be negative.
15. Define frictional and structural unemployment.
16. Define full employment. Can an equilibrium situation be reached in an economy at less than full employment level? Explain.
OR
Explain the role of margin requirements in dealing with the problem of excess demand.
17. (a) Calculate GNPFc from the given data:
(b) “Non-monetary exchanges are not included in the estimation of National Income.” Do you agree with the above statement? Give reasons.
OR
(a) Explain the ‘mixed income of self-employed’ with the help of a suitable example.
(b) Find net value added at factor cost: (Rupee in lakhs)
18. (a) Interpret the given data on the basis of fiscal and primary deficit.
(b) The government under “UJJWALA Yojana” is providing free LPG connections to the families ‘below the poverty line’. What objective the government is trying to fulfil through the government budget and how? Explain.
Section-B – Indian Economic Development
19. The main objective of the zamindars during the land settlement system was to
(A) improve the economic condition of the cultivators
(B) improve the crop yield by making significant contributions in technology and fertilisers usage
(C) collect rent with no interest in the economic condition of the cultivators
(D) cooperate with colonial government to improve the condition of agriculture
20. What does the picture indicate about Indian economy on the eve of independence?
(A) Low productivity
(B) Traditional methods of farming
(C) Lower yield of production
(D) All of the above
21. _______ are the institutional sources of agricultural credit.
(A) Commercial Banks
(B) Cooperative Credit Societies
(C) Both (A) and (B)
(D) Neither (A) nor (B)
22. Statement 1: The emergence of Self-Help Groups (SHGs) ensured the reduction in the fissures of the formal credit system.
Statement 2: The borrowings from SHGs mainly confined to consumption purposes by its
members.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is false and statement 2 is true
(B) Statement 1 is true and statement 2 is false
(C) Both statements 1 and 2 are false
(D) Both statements 1 and 2 are true
23. Assertion (A): Major policy initiatives (land reforms and green revolution) helped India to become self-sufficient in food grains production.
Reason (R): The proportion of people depending on agriculture did not decline as expected after the Green Revolution.
In the light of the given statements, choose the correct alternative from the following:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(C) Assertion (A) is false but Reason (R) is true
(D) Assertion (A) is true but Reason (R) is false
24. Demonetisation is the ______ policy wherein the legal status of a currency unit is cancelled and new one comes into circulation.
(A) Legal
(B) Social
(C) Political
(D) Economic
25. ______ campaign aimed at industrialising the China on a large scale.
(A) Great Proletarian Cultural Revolution
(B) Commune System
(C) Great Leap Forward
(D) None of these
26. Arrange the following events of Pakistan in chronological order and choose the correct alternative:
(i) Nationalisation of Capital goods
(ii) First Five Year Plan
(iii) Fertility Rate in Pakistan was 3.7
(iv) Agriculture grew at the rate of 4%
Choose the correct alternative:
(A) (iv), (ii), (i), (iii)
(B) (iv), (i), (ii), (iii)
(C) (ii), (iv), (i), (iii)
(D) (ii), (i), (iv), (iii)
27. From the set of events/systems given in Column I and corresponding relevant fact given in Column II, choose the correct pair of statement:
Alternatives:
(A) B – (ii)
(B) C – (iii)
(C) A – (i)
(D) D – (iv)
28. Which one of the following is not a non-institutional source of credit?
(A) Relatives
(B) Moneylenders
(C) Land Development Bank
(D) Traders and commission agents
29. “Green Revolution enabled the government to procure sufficient food grains to build its stocks that could be used during times of shortage.” Do you agree with the above statement? Give reason.
30. “Industrial Policy Resolution of 1956 (IPR 1956) formed the basis of the Second Five Year Plan.” Elaborate.
OR
Explain the two forms of protection from imports.
31. Interpret the given chart in context of Employment as per 2011-12.
32. Explain the focus of the economic policies pursued by the colonial government in India. Analyse the impact of these policies.
OR
How did the government ensure that the small farmers also benefit from the Green Revolution as the rich farmers?
33. Study the following table showing distribution by workforce by Industry, 2011-12 and analyse the trend of the workforce on the basis of industry and residence.
Distribution of Workforce by Industry, 2011-12
34. “Micro-credit programmes are playing vital role in meeting credit requirements of the poor.” Elaborate.
OR
Explain the principal role of human capital formation in accelerating the rate of economic growth.
35. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
Special Economic Zones (SEZs) are intended to function as zones of rapid economic growth by using tax and business incentives to attract foreign investment and technology. The first four special economic zones were created in 1980 in southeastern coastal China and consisted of what were then the small cities of Shenzhen, Zhuhai, and Shantou in Guangdong province and Xiamen (Amoy) in Fujian province. In these areas, local governments have been allowed to offer tax incentives to foreign investors and to develop their own infrastructure without the approval of the central government. Business enterprises have made most of their own investment, production and marketing decisions, and foreign ownership of such ventures has been legalised. Though some of them began as little more than small towns, the new SEZs soon attracted foreign investment and became boom towns, with rapidly expanding light and consumer goods industries and growing population. Encouraged by the zones’ success, the Chinese government in 1984 opened 14 larger and older cities along the coast to foreign trade
and investment. In 1988, Hainan Island was made a separate province and a special economic zone, and in 1990 the Pudong area within the Shanghai municipality became a special economic zone with policies even more flexible than those already in force in the original four Special Economic Zones (SEZs).
(a) What are Special Economic Zones (SEZs)? Name any two cities in which special economic zones were started in China in 1980.
(b) When were economic reforms initiated in China? What autonomy was given to local
government for motivating foreign investors in China under Special Economic Zones?
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