Reg.

No: SET I

CONFEDEFRATION OF KERALA
SAHODAYA COMPLEXES
COMMON MODEL EXAMINATION (2021-2022)
Class: XII
ECONOMICS (030)

Maximum Marks:40 Time: 2Hrs

GENERAL INSTRUCTIONS:
Read the following instructions carefully.
 This is a subjective Question Paper containing 13 questions.
 This paper contains 5 questions of 2 marks each, 5 questions of 3marks each and 3
questions of 5 marks each
 2 marks questions are Short Answer Type Questions and are to be answered in 30 –
50 words.
 3 marks questions are Short Answer Type Questions and are to be answered in 50-
80words.
 5 marks questions are Long Answer Type questions and are to be answered in 80-
120 words.
 This question paper contains Case/Source Based Questions.

Q. No. QUESTIONS Marks

Distinguish between stocks and flows. Give one example each. 2
1 Or
Describe the circular flow of income.

If in an economy: (a) Consumption function is given by C = 100 + 0.75 Y, and (b) Autonomous 2
2 Investment Is 150 crores. Estimate (I) Equilibrium level of Income

Or
As a result of increase in investment by Rs. 125 crores, national income increases by Rs. 500
crores. Calculate marginal propensity to consume.

3 What is deficient demand in an economy? What is its impact on output, employment and 2
prices?

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 How does economic growth contribute to the growth of infrastructure? 2
4 Or
What is the situation of women’s health in India?

5 “In spite of the increase in public health expenditure, Indian Health System is an ailing system
in itself”. Defend the statement citing any two major problems of Health sector in India. 2

6 How will you treat the following items in the calculation of ‘Domestic Income and ‘National
Income’ of India? Give reason for your answer.
a. Taking care of aged parents 3
b. Payment of corporate tax.
c. Expenditure on providing police service by the government.
Or
The value of the nominal GDP of an economy was Rs. 2,500 crores in a particular year. The
value of GNP of that country during the same year, evaluated at the base year price was Rs.
3,000 core. Calculate the value of the GNP deflator of the year in percentage terms. Has the
price level risen between the base year and the current year?

7 Some infrastructural facilities have a direct impact on production of goods and services while 3
others give indirect support by building the social sector of the economy. Using the above
information, differentiate between social and economic infrastructure

Read the following text carefully and answer question number 8 and 9 given below:
India and China command special attention, not just in Asia (for example, in the Asia-
Pacific Economic Cooperation [APEC] forum and the Council for Security Cooperation
in the Asia Pacific [CSCAP]) but also in the global economy and in the biennial, multi-
country consultative summit meeting known as the G-20, which is acquiring growing
importance in the international arena. China and India are the world’s two most populous
countries. They have sustained the world’s highest annual gross domestic product
(GDP) growth rates over the past decade—9 percent for China and 6 or 7 percent for
India. The two countries have been among the world’s most successful in weathering
the challenges of the global economy’s Great Recession since 2008. China has
accomplished this through a combination of a large government stimulus program (as a
share of its GDP twice as large as that of the United States) and an effective
infrastructure-building program. India’s similarly successful efforts in sustaining rapid
growth despite the global recession have been due to its lesser dependence on exports to
drive its economyand an expansion of domestic demand.
The two countries arguably have the greatest influence and leverage among the ten
emerging-market countries in the G-20. Their joint influence has been decisive in
aborting the World Trade Organization’s Doha Development Round of negotiations on
trade liberalization, as well in the failure—whether for good or ill—of the 2009 UN
Climate Change Conference (also known as the Copenhagen Summit). China has
become the world’s largest source of net capital outflows (Wolf et al., forthcoming).
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 India’s popularity as a destination for foreign capital inflows is rapidly increasing, and
India is the world’s largest recipient of foreign outsourcing of computer-based
services.1 China and India are both heavily dependent on imported oil: They are the
world’s second- and fourth- largest importers, respectively. Shifting to a very different
realm, China is the most aggressive opponent of the Dalai Lama and Tibetan autonomy,
while India is their most vigorous supporter.
The prominence of India and China in all of these issues is indisputable. But the
relevance of the four domains to each of the above issues varies. The two countries’
demographics have some bearing on most of these issues. China’s and India’s likely
economic growth trajectories affect and are affected by most of them. Science and
technology in the two countries will affect their respective competitive positions in
several of these issues, as will their respective performance in the domain of defense
spending and procurement.

8 Mention the strategies followed by India and China which helped them to maintain a high growth rate for 3
a decade?

9 Mention some of the domains which are relevant in context of two countries. 3

10 Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on GDP and 3
welfare.

11 What is meant by inflationary gap? State two measures to reduce this gap 3

12 a.Find National Income from following using expenditure method:

3
Items In crores
i. Current transfers from rest of the world 50
ii. Net Indirect taxes 100
iii. Net Exports -25
iv. Rent 90
v. Private Final Consumption Expenditure 900
vi. Net Domestic Capital Formation 200
vii. Compensation of Employees 500
viii. Net Factor Income from Abroad -10
ix. Government Final Consumption Expenditure 400
x. Profit 220
xi. Mixed Income of Self Employed 400 2
xii. Interest 23

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 b.State three precautions to be taken while measuring national income by expenditure method.

Or 3

(a) From the following data calculate Gross domestic product at market price.

Items In crores
(i) Gross National Product 6150
(ii) Net export (-)50
(iii) Compensation of employees 3,000
(iv) Rent 800
(v) Interest 900
(vi) Profits 1,300
(vii) Net direct taxes 300
(viii) Net domestic capital formation 800 2
(ix) Gross fixed capital formation 850
(x) Change in stock 50
(xi) Dividend 300
(xii) Factor income from abroad 80

a. Describe the expenditure method of calculating Gross Domestic Product at market price

13 a. It is our moral and social responsibility to work hard for sustainable development: Do 3
you agree? If yes, what should be done to achieve the objective of sustainable
development?

b. Is it necessary to generate employment in the formal sector rather than in the informal 2
sector? Why?

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