\ •

Brigh t Dav Schoo l, Vadod ara

COSE Unit - Vasna
Acadc rnlc Year: 2023 - 2024
Term Test- 1
Subje ct-Eco nomic s (030)
o _a te : 15/09 /2023 Std. XII
Time: 3 Hours
Marks :80
Gene ral _instru ctions ;
,.. This ~uesti on paper contai n s two sectio ns:
Sectio n A- Macro Econo mics
~ Se~tio n B - Indian Econo mic Devel opmen t
each.
T~,s paper contai n s 20 Multip le C hoi ce Quest ions of one mark d
r Quest ions of three marks each to b
,. :his paper co ntains 4 Short Answe e answe re
in 60 to 80 words .
each to b e answe red
;... This paper co ntains 6 Short Answe r Quest ion s of four marks
in 80 to 100 words .
to b e answe red In 100 to
,. Thi s paper contai ns 4 Long Answe r Quest ions of six marks
150 words .
SECTI ON A- MACR O ECON OMICS
1. Read the follow ing statem ents carefu lly:
Statem ent 1: Money receiv ed from the sale of secon d hand cars will be consid ered
while estima ting nation al incom e.
the
Statem ent 2: Their value is alread y includ ed and it does not contri bute to
1
curren t flow of goods and servic es.
ative from the
In the light of the given statem ents, choos e the correc t altern
follow ing:
.iii) Statem ent 1 is true and Statem ent 2 is false.
b) Statem ent 1 is false and Statem ent 2 is true.
c) Both Statem ents 1 and 2 are true.
d) Both Statem ents 1 and 2 are false.
t, the credit creatio n
2. When ever the centra l bank offers securi ties in the open marke 1
capac ity of the bankin g indust ry is expec ted to:
~) Fall b) Rise c) No effect d) May rise or may fall
r than one. 1
3. The value of_ _ _ _ can be greate
a) Margin al prope nsity to consu me c) Margin al prope nsity to save
b) Averag e prope nsity to consu me c;, Avera ge prope nsity to save
which are made. _ _ _ __ 1
4. Transf er payme nts refer to payme nts,
jf') Witho ut any excha nge of goods and service s
b) To worke rs on transf er from one job to anothe r
c) As compe nsatio n to emplo yees
d) None of above
5. The Centra l bank's reduct ion of the Cash Reserv e Ratio has
the follow ing effect on the
1
com mercia l bank's capac ity to create credit.
b) Negat ive c) No effect d) can be positiv e or negat ive
a:) Positiv e
6. GDPm p= Rs 14,000 , NFIA= RS 400 1
Choos e the correc t value of GNP from the followi ng •
cJ5 14,400 b) 18,000 c) 12,000 d) 13,60 0
7. Graph ically, Aggre gate Deman d Functi on can be obtain ed
by vertica lly
_ _ _ and _ _ _ _ _ functio n.(Cho ose the correc t altem atlve to flll
a) Consu mption , saving c) invest ment, saving
pf) Consu mption , invest ment d) aggre gate supply ,
r S . O~r .:, : ,n,J Surplus includes :
a ) \ \.J.;es b) m i xed i ncome c;.)'rent d) all of these
9 . If S =-4 0 + 0 . Sy , t h e v a l ue of autonomou s consumpti on will be :
a) -40 b) o . 8 flJJ 0 . 2 ...d) 40
10. Rea d th e fo llowin g ch art ca r e f u ll y and choose the correct alternative given b
~'o-,,

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H~aeholds
~li:J BBBBBBB
F,rms

(
~ ) T w o sector model \
b ) Three sector model
c ) Four sector model
d ) None of above
11. D i fferent iate between current transfer and capital transfer with suitable examples. 3
12. ( A) Calculate value of 'interest' from the following data : · 3

Particular (Rs in
crores
i Indirect tax 1500
ii Subs id ies 700
iii Profits 1100
\ iv Consumpti on of fixed 700
v capital
vi GDPmp 1 7 500
vii nsumption of 9~DO
employees
, terest
i><' M ixed income of self-
employed
ent ~00

OR
State the meanings of the following:
(i)Operati ng Surplus (ii) Consumpt ion good (Ill) Fac;tor lna,ane

13. For a hypothetic al economy, the governme nt incurs an I

Rs 1,000 crore . If the value of Marginal Propensity to..,.:J:111~
to 0.10. Calculate the value of increase in income due w
Marginal Propensity to Save (MPS).
14. (A) Expla i n the Consumpt ion function, with the help of
OR
(B) Differentia te between APC and MPC.
15. Elaborate the ' Banker to the Governme nt' and 'Banker•
' as the function performed by the Reserve Bank of In
 . ,. -
• - .J

: :. ~ '! :, S '.:."=.. i?
ro~~ !.c. ,.. ~ --e

,y;.,. Pe-t a'"':i - te~e-st

t ,._ Pre' t ~.c o
,-. In~ rect ta• e s ( GST) 5 0
.. , S1..=- s :: es 10

OR
G , v,ng ,-ea sons, e xp l a in the treat m e nt a ss ;- e: :j t::> t..~e • :.. · -:;;,,, - --; "' .....
r. .a~onal ,ncome.
(i) S oci a l security contri buti on b y er-;:i c y ees
(1i) Pe n s ion p a id a ~ e r r e tirement
( 111) Fa mily m e m bers w ork in g free on t.~ e fa rm o.-.n e::1 b f , ~,,_ f
(i v ) Pa ym e nt of i nte r est o n borrowin;s b y c;e n eral ;:i ; er-f""'e--~
( v) Exp e n d i t ure on m a in te n a n ce cf a bui: c: ,n g
( v i ) Expen d it ure o n add in g a fl oor to the bu ;: :: :n g
17. D ,ffe r e ritia t e betw een :
( a ) Stock s a n d f lo w s
~b ) f in a l goods a n d i n termed iate goods

Section B- Indian Economic Devlopment

18 . Occupational structure refers to :
( a } r ~ature cf d ifferent occupation
(b ) Si ze of worki ng force in a country
~) D istribution of worki ng force in a country
( d ) Humber of people living in a country
19 . Ms Ramanpreet has started a new busi ness venture, she i nten~s t::, sp r I•$ 12
amount towards ' on-the-job tra in ing' cf her workers before pu~~ng tt: . . 1 L.
It e x hib its t h e r ight step in the d irection of Human capita l Form2~:;n.
Spot w hich of the following does not d irectl y contribute to the procesa f/11
capita l formatio n by Ms Ramanpreet:
( a) Adds skill and expertise ( b ) improves e:~1cies&:17
{£.)' ensures gender equ,ty { d ) i ncreases ot..t?Utp II
20. Wh ich of the following statement i s correct w i t h reference to tt,a I A
system i n India?
(a.) Predominance of free market econom ic system over the 901• • S
economy.
U ;~ I
<.b) Absence of economic planning
u.) Ownership of factors of production only to pri vate sector
(l:H Co - existe nce of public and private sector
 r

21 . Every ind1v1dual wants to develop hi m self by d oing sorn

.,_::,
h,mse f/therhscl f, facing competitio n a n d a lwa ys learni n g t o s h ow b~~~~~'JP, u r ..1- ·
1 ..t ~
C omp 1e e t e 0 ow chart by choosing suitabl e al t ernative fro m th ose 01
erfr:,rrri •
9 '"en br,1 a,
- ~---- 0~
education Learning ·

skill

~) H uman Cap,tal b) Employme nt c ) Individual d) Physic al Cap,101

22. Following que stion co nsi st o f t w o statements - Assertlon(A ) and Reason (R ) . Choose
I
the correct alternative from those g iven below. 1
Assertion ( A ): T o overcome econom ic crises and accelerate the growth rate of Indian
eco nomy, New Economic Policy was adopted by the governme nt in
Ju lyl991 wi th elements of Liberalisati on, Privatisatio n and Globalisati on.
Rea son ( R): In 1991 India met with an economic crisis relating to Its external debt.
The gove rnment was not able to make repayment s on its borrowings
from abroad . Foreign exchange reserves dropped to levels that were not
suffici ent for even fortnight.
a1 B o th Assertion and Reason are true and Reason ( R ) ls the correct explanation of
A sse rtion ( A).
b ) Bot h Assertion and Reason are true and Reason ( R ) Is not the correct
e xplanation of Assertion (A).
c ) Asse rtion (A) is true but Reason (R) is false.
d ) Assertion {A) is false but Reason is true .
23. In it iative towards self-reliant India is focusing:
.{er) Encourage ment to local capacity building
( b) Freezing entreprene urship from bureaucrat ic hurdles
(c) Both (a) and (b)
(d) Neither (a) and (b)
24. _ _ __ of Public sector enterprises by selling off part of the equity to PSEs to the
p~b.Jic is known as disinvestm ent. 1
(-a) Pri vatization (b) Globalizati on (c) Liberalizati on (d) OUtsourdn g
25. First industrial policy Resolution of Independe nt India was announced In the year. 1
( a) 1947 (t,) 1948 (c) 1951 (d) 1956
26. Read the following statement s carefully:
Statement 1 : Under IPR 1956, the First Category comprised lndustal•
owned by state.
Statement 2 : Second Category comprised of Industries
private sector.
whale••
In the light of the statements given above, choose the
following:
a) Statement 1 Is true and Statement 2 Is false.
b) Statement 2 Is true and Statement 1 Is false.
,'-). Both Statement s 1 and 2 are true.
d) Both Statement s 1 and 2 are false.
...,.. v,0.91: Z.7. M a t c h th e ite m s of colu mn I and c olum n II and cho ose the correct alte rna tl v c ; ~
;o~a-,'\ J
oJ.s.. Colu mn - I
. _ -----.-------__.J
( l) Goo ds prod uce d b_y_ s_m_a_ ll; -----·- f--- - Colu mn - II-
(a) - Tax refo rms
scal e Indu strie s wer e
des erve d (b) Fore ign
(ii) Fore ign inve stm ent limi t exch ang e
rais ed to 50 % refo rms
(lil)T he rate of corp orat ion tax
has bee n redu ced (c) Fina ncia l sec tor
(iv) Mar ket dete rmin es refo rms
exc han ge rate s syst em was
ado pted (d) Der egu latio n of
indu stria l sec tor
a) (1)- (d), (ii)- (c ),(ii i)-(a ),(iv )-(b )
b) (i)-( c),( il)- (d ),(ii i)-(a ),(iv )-(b )
c) (i)-( d),( ii)- (c ),(ii i)-(b ),(iv )-(a )
d) (i)-( c),( ii)- (d ),(ii i)-(b ),(iv )-(a ) rs wer e i n a
a num ber of soc io-e con omi c indi cato
28. (A) " During the colo nial peri od, Indi cato rs tha t led to the wor sen ing of
d i lapi date d stat e." List any thre e such 3
Indi a's dem ogra phic prof ile.
OR
g
occ upa tion al stru ctur e exp erie nce d gro win
( 8) " The pre- inde pen den t Indi a's vali d exp lana tion .
ve stat eme nt with
regi ona l vari atio n." Jus tify the abo thin k the
and cha llen ges in edu cati on sec tor. Do you
29. The re are so man y inad equ acie s Wh at will be the valu able
rven tion in this sec tor?
gov ern men t sho uld incr eas e its inte 3
gov ernm ent?
imp act of suc h inte rven tion by the self -rel ianc e as a
ing cou ntry like Indi a to follo w
30. Why was it nec ess ary for a dev elop .::i
plan ning obje ctiv e? 2
. Def und or Ref ute
31.( A) A goo d indi cato r of gro wth is GDP vidu al.
imu m limi t of land hold ing for an indi
( B)L and ceil ling mea ns fixin g the min -
2
- --...
Jus tify the stat eme nt
32.

revo lutio n. Men tion any thre e lnl po;

...,_
The abo ve ima ge is rela ted to whic h ..
of the revo lutio n iden tifie d . ttw ., ~
tion of inco me from agr icul ture s■d
33. Insp ite of hav ing . maj or con tribu ' -., , . . .
draw bac ks. Exp lain thos e elab orat ely.
. OR
o ·ff ialis m and Mix ed Eco nom y.
' eren t,ate betw een Cap itali sm, Soc
 Re ad the fo ll ow in g t ex
t ca r efu lly an d an sw er t h
34 - Fo rei gn t ra d e m
ea ns e giv en q_ue sti on s
the ex ch an ge of g o o ~s • ,·
co un t r ies/ bo rde r s o r ter an d :e rv1 ce s be tw ee n
ri tories . Fro m the t, me t wo o r r"r\tre
on e of the i m po rta nt tra _of
d ing co un trie s , e xp or tin tn~ ep en ~e nc e , !n d la ha s be~"'
s ilk , su ga r , w oo l j ute , ind g ~n ma ry ite m ~ l_,ke
igo e t c . mo re o v e r, it is c ot to n, r 0 '#,
go od s li k e w oo lle n clo the an i m po rte r of fin ish ed co
s, c o tto n , si lk, an d c n su rne r
m a nu fac tured in Br ita in . ap ita l go od s l i ke lig ht
ma ch ine ry
Du ri n g t his pe rio d, B rita
in he ld the mo no po ly
Th e re for e , mo st of the ov er In d ia 's Im po rts
for eig n tra de w as re str an d ex po rts .
h a lf w as a llo w ed to tra d e i cte d on ly to Br ita in, W
w it h ot he r co un trie s lik e h i le th e re st
Ind ia w as la r ge ex po rte Ce ylo n, Ch ina an d Pe rs
r i n the co lon ia l pe rio d. i a.
co u n t ry' s ec on om y . Co mm Ho we ve r, it did no t
od itie s li ke foo d gr ain s, clo af fe ct th e
co u ntr y ha rd wi th its sc a the s, ke ro se ne , et c hi
r c ity . t th e
Q l D isc u ss t h e sta te of I
n d ia 's f ore ign tra de du rin
Q2 Na m~ t h e pro du c;s t~ g co lon ial ru le.
a t w e re ex po rte d fro m In
Q3 Ex p la in t h e ter m d r a dia to ot he r co un tri es .
rn o f w ea lt h ' . Ho w wa s it
im ple me nte d in th e co
lon ial pe rio d?