n SAMPLE PAPER

10 SOLVED
3 Hours Max. Marks: 80
ime Allowed:
CBSE Sample (Question Paper-2021 (Solved).
eneral Instructions: Same as
PART-A (Introductory Macroeconomics)
considered as an index of:
1. Real GDP is (Choose the correct alternative)
(b) Welfare of people
(a) Price level in the economy

(c) Profit maximisation (d) None of these

Or
Price Index (with base
7 210 and Real GDP =7 200, then
Ifthe Nominal GIDP
=

1
= 100) is:
(Choose the correct alternative)

(a) 100 (b) 105

d) 115
c) 110
from 5.40% to 5.15%".
2. RBI lowers repo rate
(increase/decrease) in money supplv. 1
This will lead to.
(Fill up the blank with correct alternative)
3. Fiscal deficit
+Interest Payment. (Revenue Deficit Primarv
1
Deficit)
(Fill up the blank with correct alternative)
Column 1 and
4.Tdentify the Correct pair of statemens from the tollowing
Column II:
(Choose the corvect alternatve)
Column II
ColumnnI
A.Government buying shares of BSNL ) Disinvestment

(u) Revenue expenditure

B. Revenue deficit
- Revenue receip

C. Fiscal deficit (2) Detlationay

(17)Current year expenditure
D. Primary deficit
<Current year revenue

20 Sample Paper 155

 Alternatives:
(a) A-(i) (6) B-i)

(c) C-(ii) (d) D-(iv)

5. Identify which of the following statements is true?
(Choose the correct
alternative)
(a) Accommodating items are called above the line items.
(6) Dirty floating is another form of fixed exchange rate.
(c) Less developed countries often devalue their currency.
(d) If US $ exchanges for 7 120, instead of 7 150 earlier, the Indian currency
shows depreciation.
6. Foreign exchange transactions dependent on other foreign exchange transactions
are called:
(Choose the correct alternative)
(a) current account transactions (6) capital account transactions
(c) autonomous transactions (d) accommodating transactions

Read the following paragraph and answer the questions 7-10 on the basis of the
same:

"In response to the real estate crash of 2008 the Irish government created the
National Asset Management Agency to buy the bad loans from the Irish banks.
After the Irish Finance Minister Brian Lenihan helped the banks stand witha
state guarantee in 2008; the costs of propping the banks up caused Irelands
budget to go into a deep deficit in 2009. To raise the money, as stated by Theodore
Bromund and J.D. Foster of The Heritage Foundation, Ireland was forced to use
crushing tax increases on an already shaky economy along with social welfare cuts
and politically painful pay cuts for the public sector.
The Irish government believed (and continues believe that huge taxes.
to
today)
austerity measures and cutbacks in government workers will allow for Ireland to
be stable again. Irish taxpayers had to raise billions of dollars to pay off the debt
amounted by Irish banks. Ireland miscalculated just how bad the Irish banks werce
which caused the banks to have to borrow from the
ean

emergency money Europe

Central Bank (ECB).

https://www.mtholyoke.rd
7. Even after
increasing the tax rates, the Government of Ireland sufterea i uge
fiscal deficit.
Based on
your understanding, comment if this statement can be correct o"
.
1

1G
 borrowings from
ECB will be reflected in:
on
8 . I n t e r e s t
ayment
p a y m e n

(Choose the correct alternative)

(b) Primary deficit
(a) Revenue deficit
d) Both (a) and (c)
( ) Fiscal deficit
referred
objective of the government budget being
to
the
above paragraph,
9. n the (GDP growth/economic stability).
(Fill up the blank with corect alternative)
Central Bank (ECB) is a revenue
from European
Borrowing
10, Irish Government.
for
capital) receipt Fill up the blank with correct alternative)
statements are true o r false: 3
reason,
whether the tollowing
valid
11 State with
are
included in GDP
(a) Exports estimation of national income.
is included in
Income tax false: 3
(b) s t a t e m e n t s are true o r
valid reason,
whether the following
12. State giving the situation of inflationary
AD o v e r AS always implies
The situation of
excess
(a)
gap of zero unemployment.
a situation
(6) Full employment implies
Or
following data about
an
to consume from the
Calculate marginal propensity 3
economy which
is in equilibrium:
National income
=
1,500.
= 300.
Autonomous consumption expenditure
300. =
Investment expenditure the steps taken in the
curve and
state
13. Given consumption curve, derivesaving 4
process of
derivation. Use diagram.
14. If in an economny:
+ 0.75Y, and
(a) Consumption function given
is by C =100
Autonomous investment is150 crore.
6) and Savings at the
income, and (ü) Consumption
Estimate (i) Equilibrium level of
equilibrium level of income. Or
the
when MPC isand
From the calculations establish
Calculate multiplier 4
and size of MPC.
relation between size of multiplier will the following
transactions
account/currentaccount

State on which side of capital

be recorded and why:
(a) Interest on loan received from Nepal. 4
from China.
(0) Import of mobile phones
157
20t Samo
 16. (a) Giving reasons, classify the following into intermediate goods and final goods:

) Ceiling fan purchased by a tailor for his shop.

(10) Chalks, dusters, etc., purchased by a school.
(b) I f the Nominal GDP is 1,200 and Price Index (with base = 100) is 120,

calculate Real GDP 4+2

Or
must be taken into
consideration while
(a) State any two precautions that
estimating national income by value added method.
Calculate Value of Output
(b) In economy, following
an transactions took place.
and Value Added by firm B:

A sold firm B goods of 80 crore; to firm C R 50 crore; to

() Firm to
crore remains unsold.
household 30 crore and goods of value 10
firm DR 40 crore; goods of
(i) Firm B sold to firm C goods of F 70 crore; to
30 crore were exported and goods of value 5 c r o r e was sold to
value
2+4
government.
17. What is a barter system? How does money overcome the shortcomings of a barter
6
System?

PART-B (Indian Economic Development)

18. The changing contribution of different economic sectors in GDP over the course
of development of a country is called 1
(Choose the correct alternative)
(a) occupational change b) structural change
(c) sectoral change d) GDP composition change
19. The first train in Indialinked (Bombay/Calcutta) to_
(Durgapur/Thane). 1
(Fill up the blanks with correct alternatiave)
20. Read the following statements-Assertion (A) and Reason (R). Choose one of the
Correct alternatives given below: 1
Assertion (A) : Poverty is closely 1related to unemployment.
Reason (R) :
Unemployment compels indebtedness and reinforces poverty.
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 correte
explanation of Assertion (A).
(c) Assertion (A) is true but Reason
(R) is false.
(d) Assertion (A) is false but Reason
(R) is true.
 Or
Read the foll allowing statementsASSertion (A) and Reason (R). Chocs
of the
c o r r e c t
ternatives given below:
nfrastructure 1S an
important
Assertion (A)
:
Component of economic
development.
Reason (R) I t provides supporting services to the nain areas of industrial
and agricultural production.
Alternatives:

B o t h Assertion (A) and Reason (R) are true and Reason (R) is the correct

explanation of Assertion (A).

(6) Botl Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
is true but Reason (R) is false.
(c) Assertion (A)
but Reason (R) is true.
d) Assertion (A) is false
statements-Assertion (A) and Reason (R). Choose one of the
21. Read the following
1
correct alternatives given below:
important source of finance
Assertion (A) : Self-help group have emerged as an

in rural India.
:The formal sources of finance in rural India are inadequate.
Reason (R)
Alternatives:
are true and Reason (R) is the correct
Reason (R)
a) Both Assertion (A) and
explanation of Assertion (A).
and Reason (R) is not the correct

(b) Both Assertion (A) and Reason (R) are true

explanation of Assertion (A).

(0) Assertion (A) but Reason (R) is false.
is true

is true.
d) Assertion (A) is false but Reason (R) relevant fact in
in Column I and corresponding
Z2. From the set of s t a t e m e n t s given
of statement:
Column II, choose the correct pair
(Choose the conect alternative)
Column II
Column I
China
in GDP

A Largest share of manufacturing India

()
B. Lowfertility rate
Pakistan
(u)
plan
Medium term development ()
Commune system

D. Great Leap Forward

Alternatives: (b) B-i)

(a) A-(i) (d) D-(iv)
c) C-(ii)
159
20 Sample Papers
23. was introduced by Mao.
(Choose the correct
alternatire
(a) Commune system
(b) Great Leap Forward
(c)Great Proletarian Cultural Revolution
(d) Mixed economic system
Read the following paragraph carefully and answer the questions 24 to 27 on the

basis of the same:

The data reveal that GDP firom the primary sector (agriculture and allied entities
cent in l950-51 to 46 per cent in
like forestry and fishing) declined from 59 per
1970-71 and thereafter, sharply declined to 16.1 per cent in 2011-12. This was

neutralized by increase in the share of secondary sector from 13 per

an
partially further increase to about
cent in 1970-71 and
cent in 1950-51 to about 22 per
hike in GDP share occurred in case of
24.3 per cent in 2011-12. But the biggest
to 32 per cent in 1970-71 to 59.0 per
services from about 27 per cent in 1950-51
structural change in GDP shares witnessed a big
cent in 2011-12. The emerging
with a modest increase in the share of
decline in the share of agriculture, coupled
and a much increase in the share of services which now account
sharper
industry
for nearly half of the total GDDP
-Dr. D.N. Sayira Banu, Assistant Professor
Kandasuami Kandar's College.
Tamil Nadu
in
increase in the employment opportunities
24. There has been a corresponding 1
service sector. True/False.
sector
the employment shifts from primary
25. In the normal c o u r s e of development,
(secondary/tertiary) sector.
to
(Fill up the blank with correct alternatine)
in
26. Pakistan has the highest proportion of employment
(agriculture/service) sector.
alternatie)
(Fill up the blank with
correct
(China/Pakistan) has shown
27. The structural change in India and
the sane trajectory.
(Fill up the blank with correct alematne
28. Why did India opt for planning?
Or
d
Deline disinvestment. Write three observations highlighting the need
3
significance of disinvestmernt.

160 Economics-
29. State different types of environmental pollution.
role in the process of growth and
30. Why was public gIven the flagship
sector
4
after independence?
development of the nation
in India till 1991 A
31. State the principal features of economicpolicy pursued
Or
reforms in Indian agriculture.
Write four components of general
any
workforce in India.
trends in sectoral distribution of
32. Analyse the recent
6
to remove poverty.
Explain the principal
measures
33. formation in economic
observations suggesting the role
ofhuman capital
34. Write the 6
growth.
Or
in India.
6
of massive unemployment
Explain the possible
causes