AHGHSS / REHEARSAL EXAMINATION / 2022-23 CLASS : XII FULL MARKS: 70 SUBJECT : ECONOMICS TIME : 3 HOURS General Instructions; This question paper contains 34 questions (total) divided in two sections: Section A ~ Macro Economies Section B — Indian Economic Development This paper contains 20 Multiple Choice Questions type questions of | mark each, This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words. This paper contains 6 Short Answer Questions type of 4 marks each to be answered in 80 to 100 words. This paper contains 4 Long Answer Questions type questions. of 6 marks each to be answered in 100 to 150 words. questions ON A (MACROECONOMICS) 40 MARKS MULTIPLE CHOICE QUESTIONS (10 X 1 = 10) Q. 1-10 1. Which one is a better indicator of economic growth? a) CPI b) GDP deflator c) Real GDP d) Nominal GDP 2. In an economy the impact of Excess Demand under Keynesian theory of income and employment are: (choose the correct alternative) Page | 1a. decrease in income, output, employment and general price level b, decrease in nominal income, but no change in real output c. increase in income, output, employment and general price level d. no change in output/employment but increase in general price level. 3. There is a need of intervention by central bank sometimes in a) Flexible exchange rate 5) Managed floating c) Fixed exchange rate d) All the above 4, Revenue Deficit is Rs 50000 Crores and borrowings is Rs 75000 Crores how much is Fiscal Deficit? a) Rs 75000 crores b) Rs 50000crores c) Rs 125000 crores d) Rs 25000 crores 5, Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below: Assertion (A): Expenditure on Ujjwala Yojana launched by the Government is an example of revenue expenditure. Reason (R): It is the expenditure that neither created assets nor ities of the Government. reduced liabi Alternatives: Page | 2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 and Reason (R) is not the correct explanation of Assertion (A). ¢) Assertion (A) is true but Reason (R) is False d) Assertion (A) is False but Reason (R) is true 6, Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below: Assertion (A): All transactions recorded in Balance of Payment are autonomous transactions. Reason (R): Autonomous transactions are recorded in both the current and capital accounts of the BOP. Alternatives: 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 and 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 7. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below: Assertion (A): Money supply is a stock concept. Reason (R): Money supply is measured over a period of time. Page | 3Alter 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 and 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 8. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below: Assertion (A): Rich people have a lower propensity to consume as compared to poor people. Reason (R): Consumption can never be zero even if the national income is zero. Alternatives: 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 and Reason (R) is not the correct explanation of Assertion (A). ) Assertion (A) is true but Reason (R) is False d) Assertion (A) is False but Reason (R) is true 9. Who supplies money in India? a) RBI b) Govt. Page | 4¢) Commercial Banks d) All of these 10. IF MPC = 0.20 value of investment multiplier is: a)3.5 b)2.5 ©) 0.25 d) 1.25 SHORT ANSWER TYPE QUESTIONS (2X3 =6) Q. 11,12 11. How will the following be treated in the estimation of national income of India? a) Capital gains to Indian residents from the sale of shares of foreign company b) Profits earned by an American in India c) Imputed rent of self -occupied house 12. Read the following news report and answer basis of the same: The Reserve Bank of India (RBI), cut Repo Rate to 4.4%, the lowest in at least 15 years. Also, it reduced the Cash Reserve Ratio (CRR) maintained by the banks for the first time in over seven years. CRR for all banks was cut by 100 basis points to release & 1.37 lakh crores across the banking system. RBI governor Dr.Shaktikanta Das predicted a big global recession and said India will not be immune. It all depends how India responds to the situation, Aggregate demand may weaken and ease core inflation, The Economic Times; March 27th, 2020‘A) Cut in Repo rate by RBI is likely to... increase/decrease) oes B) the demand for goods and services in the economy. (Choose the correct alternative) B) Decrease in Cash Reserve Ratio will lead to... (choose the correct alternative) a) fall in aggregate demand b) no change in aggregate demand ©) rise in aggregate demand d) fall in general price level C) The difference by which actual Aggregate Demand exceeds the Aggregate Demand, required to establish full employment equilibrium is known as........c00000+ - (inflationary gap/deflationary gap). ( choose the correct alternative) SHORT QUESTIONS (3 X 4 =12) Q. 13-15 13. Given the consumption functior -~- C=150+0.80Y and investment expenditure is Rs 2000.Calculate i) Equilibrium level of national income ii) Consumption expenditure at equilibrium level of national income, iii) Find MPC & MPS iv) Give the saving function. 14. What are autonomous transactions? Discuss the role of accommodating items in BOP of a country, a OR E xplain why does the demand for foreign currency fa E I when its price rises. = AE: State any two implications of Fiscal Deficit. Categorise the following into Revenue or Capital Expenditure--(With Reasons) Page |6a) Grants given to state Govt. b) Repayment of loans, LONG ANSWER TYPE QUESTIONS Q. 16,17 16, What is deficient demand? Explain the role of open market operations and bank rate to control deficient demand. OR What is excess demand? Explain the role of SLR and margin requirement in case of excess demand? 17. Calculate Gross National Product at factor cost from the following data both by i) Income Method and ii) Expenditure Method: (2X6=12) ITEMS EXPENDITURE (Rs In Crores) Net domestic capital formation 500 _ Compensation of employees 1850 | Consumption of fixed capital 100 Govt. final consumption 1100 expenditure | Private final consumption 2600 Lexpenditure Rent 400 Dividend 200 Interest 500 Net exports (-) 100 Profit 1100 Net factor income earned from (-) 50 abroad Net indirect taxes 250 SECTION B (INDIAN ECONOMICS) 40 MARKS MULTIPLECHOICE QUESTIONS (10 X 1 =10) Q. 18-27 Page | 718. Who is the ex officio chairman of the NITIAAYOG? a) Finance Minister b) Prime Minisrter c) President d) Home Minister 19, Which of the following is not true for SSI? a) SSI shows locational flexibility b) SSI is labour intensive c) SSI promotes equity d) SSlis capital intensive \—20. The reason behind implementing economic reforms in India in 1991 was : a) Mounting fiscal deficits b) Gulf Crisis c) Declining foreign exchange reserves d) All of the above ° 21. Which of the following is a reason for poor human capital formation in India/ a) Brain drain b) Insufficient resources c) High growth of population ~—d) All of these xf Why is Minimum Support Price fixed by the Government? a) To safeguard the interest of the Government b) To safeguard the interest of the farmers c) To safeguard the interest of the consumers d) None of these 23. Workers hired on a permanent basis who get social securi — benefits are called : una) Casual workers b) Regular workers c) Self employed workers d) None of these © 24, Assertion@A) All Five Year Plans give equal importance to the goals Of growth equity, modernisation and self reliance. Reason(R): All the Plans are allotted ample resources to achieve the above goals. a) Both A and R are true and R is the correct explanation of A b) Both A and R are true but R is not the correct explanation of A ©) Ais true and R is false 4) Both A and R are false 25. Which one is not a success for Pakistan out of the following: a) Inspite of high growth rate of Population , Pakistan is succeeding in doubling. its per capita income b) The use of modern technology is improving in Pakistan c) Growth rate of GDP and its sectoral constituents have fallen in 1990s d) Pakistan has achieved self sufficiency in the production of food. 26. Which one of the following is not the objective of GST; a)To bring uniformity in tax rates b) to ensure simplification in registration, filling of return C) to put more pressure in the movement of goods across the countries 4) to prevent unhealthy competition among the states. Page [927. Which one of the following is true? a) In the first phase of Green Revolution it targeted all the backward states of the country b) This revolution helped all the poor farmers of the country to improve their economic condition in a greater extent. c) It was restricted to wheat, pulses and vegetables. d) None of the above SHORT ANSWER TYPE QUESTIONS = (2.X3 = 6) Q. 28, 29 28. Give two instances of -- a) overuse of environmental resources. b) Misuse of environmental resources 29-Import Substitution protects domestic industries----Defend or Refute the statement giving valid reasons SHORT QUESTIONS (3X4=12) Q. 30-32 30. a) Explain two main sources of Human Capital formation in India... b) Differentiate between Human Capital and Human Development: 31. In India there is a mismatch between GDP growth and Employment growth----- Justify this statement. 32. How is outsourcing beneficial for India? Give one reason why developed countries are opposing outsourcing. Page | 10OR Discuss the financial sector reforms in India under Liberalisation LONG ANSWER TYPE QUESTIONS (2X 6=12) Q.33, 34 33. Discuss the measures initiated by Govt. Of Indi ‘a to improve agricultural marketing system, OR a) Discuss the deficiencies present in Rural Banking system in India. b) Mention any three functions of NABARD 34, Discuss any three common success and failure stories of India & ZA. Pakistan