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 -8)
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): The investment multiplier is inversely related to the Marginal Propensity to Consume (MPC).
Reason (R): A higher MPC leads to a larger multiplier effect because more of each additional unit of income is spent on consumption.
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. “The government has reported a fiscal deficit of 5% of GDP for the fiscal year 2022-23, which it plans to finance by borrowing from the market. This borrowing is expected to cover the gap between total expenditure and total receipts.”
Source: [Fiscal Policy Statement, 2023](https://www.finmin.nic.in/reports/fiscalpolicy-statement-2023)
Which of the following best describes the fiscal deficit?
(A) Total expenditure minus total revenue receipts
(B) Total expenditure minus total capital receipts
(C) Total expenditure minus total receipts excluding borrowings
(D) Total revenue expenditure minus total revenue receipts
3. Under a flexible exchange rate system, the foreign exchange rate is determined by the forces of demand and ________ in the foreign exchange market without direct government intervention.
Choose the correct option to fill in the blank.
(A) Policy
(B) Supply
(C) Government
(D) Control
4. An economy’s Nominal GDP increased from Rs.150 lakh crore to `165 lakh crore, while the GDP deflator increased from 100 to 110. The Real GDP growth rate is ________ percent.
Choose the correct option to fill in the blank.
(A) 10%
(B) 5%
(C) 15%
(D) 0%
5. From the given diagrams, identify the correct option that indicates the ‘Consumption Curve’ passing through the origin drawn at a particular angle.
(A) (i)
(B) (iii)
(C) (ii)
(D) (iv)
6. If the Marginal Propensity to Consume (MPC) is 0.75, the value of the investment ______ would be 4.
Choose the correct option to fill in the blank.
(A) Deflator
(B) Multiplier
(C) Accelerator
(D) Propensity
7. Read the following statements carefully:
Statement 1: Capital receipts in a government budget include loans raised by the government, disinvestment proceeds, and recovery of loans given by the government, contributing to the financing of capital expenditures.
Statement 2: Revenue expenditures are those that lead to the creation of assets or reduction of liabilities, such as spending on infrastructure projects or repayment of public debt.
In light of the given statements, choose the correct option 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.
8. In a flexible exchange rate system, the exchange rate is determined by the forces of demand and supply in the foreign exchange market without direct intervention from the _______.
Choose the correct option to fill in the blank.
(A) Central Bank
(B) Commercial Banks
(C) Government
(D) Exporters
9. Read the following statements carefully:
Statement 1: Net Factor Income from Abroad (NFIA) is the difference between factor income received from the rest of the world by domestic residents and factor income paid to the rest of the world, and it can be positive, negative, or zero depending on the economic interactions.
Statement 2: If NFIA is negative, it implies that the Gross National Product (GNP) of a country is greater than its Gross Domestic Product (GDP), indicating a net outflow of factor income to abroad.
In light of the given statements, choose the correct option from the following:
(A) Statement 1 is false and Statement 2 is true.
(B) Both Statements 1 and 2 are false.
(C) Statement 1 is true and Statement 2 is false.
(D) Both Statements 1 and 2 are true.
10. Choose the correct alternatives to be filled in given blanks A, B and C.
(A) A – Government budget, B – Revenue receipts, C – Capital receipts
(B) A – Revenue receipts, B – Capital receipts, C – Government budget
(C) A – Capital receipts, B – Revenue receipts, C – Government budget
(D) A – Capital receipts, B – Government budget, C – Revenue receipts
11. ‘Exchange rate of US$ rose considerably in India.’ Explain the impact of this statement on Indian exports and analyse its repercussion on the general masses.
OR
State the components of the current account of Balance of Payments.
12. ‘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.
13. How is GST administered in India?
OR
Explain the role of government budget in fighting inflationary and deflationary tendencies.
14. 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”.
— 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.
15. Read the following text carefully and explain the relevant function of the money indicated here. It was virtually impossible to store surplus value in the barter economy. The discovery of money has eliminated this difficulty. With the help of money, people can store surplus purchasing power and use it whenever they wish to. Savings in the form of money are not only secure but the possibility of it being disrupted is very low. Besides, money can be carried around and is portable. By facilitating accumulation of money, money has become the only basis of promoting capital formation.
16. Read the following text carefully :
Capital expenditure refers to funds used by the government for acquiring or maintaining fixed assets such as infrastructure, machinery, or buildings. Analysing its trends helps assess long-term investments and their impact on economic growth. Interpret the given shown trend in capital expenditure. Also state reason why government has relied on it after Covid-19 disruptions.
17. (a) Calculate GDP at market price by Income Method:
(b) Explain the basis of classifying goods into final goods and intermediate goods, with the
help of suitable examples.
OR
(a) Calculate Net National Product at Market Price from the following data:
(b) Explain how the following should be treated while estimating national income:
(i) Free medical facilities by the employer
(ii) Income arising out of the sale of shares
S-B – Indian Economic Development
18. As per the image given below, which of the following facilitates free trade?
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) Both (A) and (C)
19. Read the following statements carefully:
Statement 1: The British colonial rule significantly improved India’s per capita income on the eve of independence.
Statement 2: The infrastructure developed during colonial rule primarily benefited the British economy rather than India’s.
In light of the given statements, choose the correct option from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
20. Read the following statements carefully: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion (A): The Five Year Plans aimed to achieve self-sufficiency in food production in India.
Reason (R): The Green Revolution was a part of the Five Year Plans to boost agricultural productivity.
Options:
(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.
21. Liberalisation policies in India led to the reduction of ______ and ______, thereby attracting more foreign investment and fostering economic growth.
Choose the correct option to fill up the blank.
(A) trade barriers; regulatory constraints
(B) taxes; subsidies
(C) agriculture; services
(D) public sector; private sector
22. Human capital refers to the skills and knowledge possessed by individuals. Which of the following are sources of human capital?
Which of the following is/are correct ?
(i) Education
(ii) Health
(iii) Training
(iv) Natural resources
Option :
(A) (i), (ii), and (iii)
(B) (ii) and (iv)
(C) (i) and (iv)
(D) (i), (ii), (iii), and (iv)
23. Identify which of the following are key issues in rural credit systems in India.
Which of the following is correct ?
(A) Limited access to credit and high interest rates
(B) Abundance of credit facilities and low interest rates
(C) Excessive formal banking presence
(D) Overregulation of credit markets
24. Which of the following are characteristics of the informal sector in India?
Which of the following is correct ?
(A) High job security and benefits
(B) Formal employment contracts
(C) Regular working hours
(D) Lack of job security and limited social benefits
25. Which of the following factors have contributed to India’s slower economic growth compared to its neighbours?
Which of the following is correct ?
(A) Strong governmental planning
(B) Bureaucratic red tape
(C) Higher investment in infrastructure
(D) Export-oriented policies
26. “On the eve of India’s independence, the industrial sector was characterized by the dominance of traditional handicrafts and cottage industries, which had declined significantly due to stiff competition from machine-made goods imported from Britain. The lack of modern industries and technological innovation led to regional imbalances and widespread unemployment among artisans and craftsmen.”
What was a significant consequence of the industrial scenario in pre-independent India?
(A) Equitable regional development across the country
(B) Growth of indigenous technological innovations
(C) Massive unemployment and regional disparities
(D) Increase in foreign direct investment in traditional industries
27. Identify which of the following policies were introduced under the Industrial Policy Resolution of 1956.
Which of the following is correct ?
(A) Promotion of public sector enterprises
(B) Deregulation of private industries
(C) Encouraging foreign direct investment in all sectors
(D) Privatization of key industries
28. Highlight the positive contributions made by the British in India.
OR
What was the two-fold motive behind the systematic deindustrialisation affected by the British in pre-independent India?
29. Observe the given figure carefully and answer the question that follows:
What was the offer before green revolution and why Indian farmers were not ready for the same offer after green revolution?
30. ‘Under the colonial regime the real motive behind the development of infrastructure was to meet various colonial interests.’ Accept/Refute the above statement. Give reason in support of your answer.
31. Elucidate the functions of Central Pollution Control Board (CPCB) to address the environmental concerns in India.
OR
“Indiscriminate felling of trees led to environmental problems.” Do you agree? Give reason to justify your answer.
32. On the basis of the following data answer the following questions.
(a) Comment on the Infant Mortality Rate among India and Pakistan.
(b) ‘Pakistan is more urbanised than India.’ Do you agree?
33. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
India’s land is undergoing degradation or desertification. In 2011-2013, it stood at 29.3 per cent of the total land, representing an increase of 0.57 per cent (which is 1.87 million hectares in area) compared with 2003-2005, according to a report-cum-atlas by ISRO’s Space Applications Centre. Soil erosion due to water and wind, and degradation of vegetation cover were the main processes that has led to land degradation. Almost 90 per cent of the states experienced a rise —
notably Delhi and the northeastern states — in land degradation in 2011-2013 compared with 2003 2005 while four states showed slight decreases in land degradation. Reclaiming degraded lands will require a strict land-use policy and better watershed management initiatives, say experts.
Land degradation can exacerbate climate change and threaten agricultural productivity, water quality, biodiversity, sustainable development, and the living conditions of humans and wildlife, among other effects. Globally, a third of our land is degraded, affecting 3 billion people, and it is expected to worsen with rising demand for food.
(a) What is land degradation? State the factors responsible for land degradation.
(b) State and discuss any two principal causes of environmental degradation.
34. ‘We have a moral obligation to hand over the planet earth in good order to the future generation’. Do you agree with the above statement? Suggest any five measures to achieve the above obligation.
OR
‘The reform process initiated in the early 1990s resulted in a decline in the number of workers employed in the formal sector.’ Critically analyse.
