SHAHEED RAJPAL D.A.V.

PUBLIC SCHOOL
PRE BOARD EXAM (2019-20)
ECONOMICS (SET - A)
TIME: 1 Hr. Class: XII M.M.: 80

GENERAL INSTRUCTIONS:

1. All the questions in both the sections are compulsory. Marks for questions are indicated
against each question.
2. Questions 1-10 and 18-27 are very short answer questions carrying 1 mark each. These are
required to be answered in one word or one sentence each.
3. Questions 11-12 and 28-29 are short answer questions carrying 3 marks each. Answers to
them should not normally exceed 60-80 words each.
4. Questions 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.
5. Questions 16-17 and 33-34 are long answer questions carrying 6 marks each. Answers to them
should not normally exceed 100-150 words each.
6. Answers should be brief and to the point and the above word limit be adhered to as far as
possible.
___________________________________________________________________________________

SECTION A- MACROECONOMICS

1. Goods purchased for the following purpose would be called final goods: ( choose the correct
alternative). (1)
A) For satisfaction of wants.
B) For investment in firm
C) Both ( a) and (b)
D) None of the above

2. ……………….= 1/ legal reserve ratio (investment multiplier/ money multiplter) (1)

3. In order to encourage investment in the economy, the central bank may…………………. ( Choose
the correct alternative) (1)
A) Reduce cash reserve ratio
B) Increase cash reserve ratio
C) Sell govt. Securities in open market
D) Increase bank rate

4. Average propensity to consume can never be……………. (1)

A) Positive
B) Zero
C) More than one
D) Less than one

5. State with reason whether the following statement is true or false. (1)
“ When marginal propensity to consume is zero, the value of investment multiplier will always
be zero.”

6. Choose the correct equation:. (1)

A) MPC+MPS= 0
B) MPC+MPS=<1
C) MPC+MPS=1
D) MPC+MPS=>1
7. Primary deficit in a government budget will be zero, when ……………. ( Choose the correct
alternative) (1)
A) Revenue deficit is zero
B) Net interest payments are zero
C) Fiscal deficit is zero
D) Fiscal deficit is equal to interest payments

8. Identify capital receipt of the government. (1)

A) Income tax
B) Loan from public
C) Fees and fines
D) Interest and dividends

9. State whether the given statement is true or false . (1)

“ Managed floating exchange rate is decided by market forces but remains within a specific
range as decided by central bank.”

10. Which of the following is not a source of demand for foreign exchange? (1)
A) Remittances by foreigners living in India to their families
B) Import of goods and services
C) Loans from foreigners
D) Tourists going abroad

11. Government incurs expenditure to popularize yoga among the masses. Analyse it’s impact on
gross domestic product and welfare of the people. (3)
OR
Calculate Net National Product at factor cost from the following data:
(RS in Arab)
A) Social security contributions by employees. 90
B) Wages and salaries. 800
C) Net current transfers to abroad. (–)30
D) Rent and royalty 300
E) Net factor income to abroad. 50
F) Social security contributions by employees. 100
G) Profits. 500
H) Interest. 400
I) Consumption of fixed capital. 200
J) Net indirect tax. 250

12. Estimate the change in initial investment if marginal propensity to save (MPS) is 0.10 and
change in final income is RS 15000 crores. (3)

13. Classify the following statements as revenue reciept or capital reciept. Give valid reasons in
support of your answer. (4)
A) Financial help from a multinational corporation for victims in a flood affected area.
B) Sale of shares of s public sector undertaking to a private company.
C) Dividends paid to the Government by the state bank of India.
D) Borrowings from International Monetary Fund.

14. Distinguish between appreciation of home currency and depreciation of home currency. (4)
OR
‘ Devaluation and depreciation of currency are one and the same thing.’ Do you agree? How
do they affect the exports of a country ?

15. Discuss briefly the following functions of a central bank. (4)

A) Banker's bank
B) Lender of last resort
16. From the following data given below, estimate a) Net Domestic product at factor cost by
expenditure method b) Net National Product at factor cost by value added method. (6)
(Rs in crores)
A) Gross Domestic capital formation. 250
B) Net exports. (–) 50
C) Private final consumption expenditure. 900
D) Value of output of
I) Primary sector. 900
J) Secondary sector. 800
K) Tertiary sector. 400
E) Value of intermediate consumption by
I) Primary sector. 400
J) Secondary sector. 300
K) Tertiary sector. 100
F) Consumption of fixed capital. 80
G) Indirect tax. 100
H) Government final consumption expenditure. 100
I) Subsidy. 10
J) Net factor income from abroad. (–) 20

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)
OR
How is saving and investment approach derived from the aggregate demand and supply
approach of income determination? Explain. Use diagram.

SECTION B- INDIAN ECONOMIC DEVELOPMENT

18. Name the primary item Of imports made by India during British rule. (1)
A) Raw silk
B) Cotton
C) Sugar
D) Capital goods

19. Which economic system was adopted in India for Economic Development after the
independence in 1947? (1)
A) Capitalism
B) Socialism
C) Mixed economy tilted towards capitalism
D) Mixed economy tilted towards socialism

20. Which of the following is not a feature of Globalization? (1)

A) Disinvestment
B) Liberalization of import licensing
C) Rationalisation of tariff structure
D) Reforms in foreign exchange management

21. During British rule , more than half of India’s foreign trade was restricted to…………………….,(1)

22. National food for work Programme is a ……………………programme. ( Wage employment/ self
employment) (1)

23. Mention any 2 non form activities which should be developed in rural areas. (1)

24. Which five year plan recognised the importance of human capital ? (1)
25. ……………………….is an increase in the average temperature of Earth’s atmosphere and
oceans. (1)

26. In terms of sectoral contribution to GDP, the economy of China is relying more on………….(1)
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Both primary and tertiary sector

27. State with reason, whether the following statement is true or false. (1)
“ Compared with India, lower density of population in China has contributed to it’s faster GDP
growth.”

28. “Education Commission 1964-66 had recommended that atleast 6% of GDP must be spent on
education.” How fast India has been able to achieve the said goal? (3)

29. There is a big gap between demand and supply of electricity in rural areas. Supply of
electricity cannot be increased fie to lack of resources. Explain how demand for electricity can
be increased. (3)
OR
How can creation of income earning assets address the problem of poverty ?

30. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree ?
Elucidate. (4)

31. Those public sector undertakings which are making profits should be privatised. Do you agree
with this view? Give any 3 arguments in favour of your answer. (4)
OR
Though public sector is very essential for industries , many public sector undertakings incur
huge losses and are a drain on the eonomy's resources. Discuss the usefulness of public sector
undertakings in the light of this fact.

32. “ Britishers transformed Indian economy into a colonial economy.” Explain. (4)

33. It had been realised that Agricultural finance is not available in sufficient quantity at right time
and at reasonable rate of interest. As an agriculturist, suggest the various measures to make
the existing system of Agricultural finance serve fully the needs of agriculture effectively. (6)
OR
Discuss the reforms which have been initiated recently to meet the energy crisis in India.

34. The annual report (July 2017-June 2018) of the periodic labour force survey (PLFS) pegs the all
India unemployment rate at 6.1 pecent in the given year. Unemployment was higher in the
urban areas as compared to the rural areas. For the rural areas, the unemployment rate was
5.3 percent, while in the urban areas it was 7.8 percent.
Analyse the given data and give reasons for such trends which are observed in India despite
massive GDP growth and employment generation schemes. (6)
 SHAHEED RAJPAL D.A.V. PUBLIC SCHOOL
PRE BOARD EXAM (2019-20)
ECONOMICS (SET - B)
TIME: 1 Hr. Class: XII M.M.: 80

GENERAL INSTRUCTIONS:

7. All the questions in both the sections are compulsory. Marks for questions are indicated
against each question.
8. Questions 1-10 and 18-27 are very short answer questions carrying 1 mark each. These are
required to be answered in one word or one sentence each.
9. Questions 11-12 and 28-29 are short answer questions carrying 3 marks each. Answers to
them should not normally exceed 60-80 words each.
10. Questions 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.
11. Questions 16-17 and 33-34 are long answer questions carrying 6 marks each. Answers to them
should not normally exceed 100-150 words each.
12. Answers should be brief and to the point and the above word limit be adhered to as far as
possible.
___________________________________________________________________________________

SECTION A- MACROECONOMICS

1. Which of the following is a flow variable? (Choose the alternative) (1)

A) Wealth
B) Population
C) Water in River
D) Water in tank

2. The monetary policy generally targets to ensure……………….(choose the correct alternative) (1)
A) Price stability in economy
B) Employment Generation in the country
C) Stable foreign relations
D) Greater tax collections for the government

3. ………………….means the total quantity of money in circulation in the economy at a given point
of time. ( Credit money/ money supply) (1)

4. In an economy, break even point and equilibrium point may lie at the same level of income’, if
ex- ante investments are…………….. (1)

5. What is the equation of consumption function, when autonomous consumption is RS 100 and
MPC is 0.7? (1)

6. If planned savings are greater than planned investments, what will be the effect on
investment? (1)

7. Government expenditure on Mid day meal scheme running in government (state run) schools
is a type of ……………….. expenditure in government Budget. (1)

8. Khanak textiles is an Indian company located in Chennai, India. It invests in Hopkins LTD.
Located in USA. This transaction will be recorded in India’s Balance of Payment account
on………. (1)
A) Credit side of current account
B) Credit side of capital account
C) Debit side if capital account
D) Debit side of current account
9. ……………………is the revenue reciept of the government. ( Choose the correct alternative) (1)
A) Funds raised by the government by issuing National saving certificates
B) Sale of 40% shares of a public sector undertaking to a private enterprise
C) Profits of LIC, a public enterprise
D) Amount borrowed from Japan for construction of Bullet trains.

10. ………………..deficit represents borrowing requirements of the government. ( Revenue/ fiscal )

(1)
11. Gross Domestic Product (GDP) does not give us a clear indication of economic welfare of a
country. Defend or refute the given statement with valid reason. (3)
OR
Discuss briefly the circular flow of income in a two sector economy with the help of a suitable
diagram.

12. Calculate the value of Marginal propensity to consume (MPC) , if in an economy autonomous
consumption is RS 500 crores, ex ante investments are RS 4000 crores and equilibrium level of
income of the economy is RS 18000 crores. (3)

13. Discuss briefly the following functions of a central bank: (4)

A) Government's bank
B) Bank of issue

14. “Governments across Nations are too much worried about the term fiscal deficit.” Do you
think that fiscal deficit is necessarily inflationary in nature? Support your answer with valid
reason. (4)

15. Distinguish between appreciation of home currency and depreciation of home currency. (4)
OR
“Devaluation and depreciation of currency are one and the same thing.” Do you agree? How
do they affect the exports of a country?

16. How is saving and investment approach derived from the aggregate demand and supply
approach of income determination ? Explain. Use diagram. (6)
OR
“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.

17. Given the following data, find the values of Gross Domestic capital formation and operating
surplus. (6)
(Rs in crores )
A) National income. 22,100
B) Wages and salaries. 12000
C) Private final consumption expenditure 7200
D) Net indirect tax. 700
E) Depreciation. 500
F) Government final consumption expenditure. 6100
G) Mixed income of self employed. 4800
H) Net exports. 3400
I) Rent. 1200
J) Net factor income from abroad. (–)150
 SECTION B- INDIAN ECONOMIC DEVELOPMENT

18. ……………….is a system in which a central planning authority seems to utilise country's
resources for development activities. (Capitalism/ Economic planning ). (1)

19. What was the compelling factor behind the introduction of Economic reforms in India in
1991? (1)
A) Initiative by planning commission
B) Initiative by government
C) Initiative by UNO
D) Conditions imposed by World Ban

20. …………………was the most important infrastructure developed during the British period.
(Railways/ road transport) (1)

21. During the British rule, India’s demographic profile indicated …………………….. (1)
A) High death rate
B) High birth rate
C) High infant mortality rate
D) All of the above

22. Name one organisation that collects data on poverty in India. (1)

23. An arrangement in which a worker uses his own resources for his living is known as ………
(self employment/ casual employment) (1)

24. ……………………. Is the main factor contributing to soil erosion. (1)

25. Operating flood is a system of controlling floods in rural areas. True/ false. (1)

26. Introduction of Economic reforms in Pakistan took place in …………………. (1)

A) 1978. B) 1980. C) 1988. D) 1991

27. India and ………………….have adopted mixed Economic system. (1)

28. How can creation of income earning assets address the problem of poverty ? (3)
OR
There is a big gap between demand and supply of electricity in rural areas. Supply of
electricity cannot be increased due to lack of resources. Explain how demand for electricity
can be decreased.

29. “ Recently Indians have drifted away from the traditional knowledge and practices and caused
large scale damage to environment.” Explain how adopting the traditional practices can be
helpful in achieving the objective of sustainable development? (3)

30. “The colonial era was responsible for the decline/ ruin of traditional handicrafts industries.”
Accept/ refute the above statement. (4)

31. Though public sector is very essential for industries, many public sector undertakings incur
huge losses and are a drain on economy's resources. Discuss the usefulness of public sector
undertakings in the light of this fact. (4)
OR
Those public sector undertakings which are making profits should be privatised. Do you agree
with this view? Give any 3 arguments in favour of your answer.
32. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree?
Elucidate. (4)

33. Item 1960-61. 1980-81. 2008-09

Rice. 35. 54. 99.2
Wheat. 11. 36 80.6
A) Total cereals. 69. 119. 219.2
B) Total pulses. 13. 11. 14.7
C) Total food grains (a+b). 82. 130. 233.9
(Shows increase in the production of food crops since 1960-61 in million tones)

Study the table given above carefully and identify the phenomenon being talked about in the
figures. Give it’s features with respect to India. (6)

34. Discuss the reforms which have been initiated recently to meet the energy crisis in India. (6)
OR
“Inspite of the increase in public health expenditure Indian Health System is an ailing system
in itself.” Defend the statement citing any 3 major problems of Health Sector in India.