CLASS – 12

ECONOMICS (IMPORTANT QUESTIONS)

1. __________ deposits are payable on demand either through cheque or otherwise.
(a) Demand (b) Time (c) Primary (d) None of these
2. Read the following statements - Assertion (i) and Reason (ii). Choose one of the correct alternatives
given below:
Assertion (i): Total quantity or stock of money available in the economy at particular point of time is
known as money supply.
Reason (ii): Demand deposit is not the part of money supply.
(A) Both Assertion (i) and Reason (ii) are true and Reason (ii) is the correct explanation of Assertion (i)
(B) Both Assertion (i) and Reason (ii) are true and Reason (ii) is not the correct explanation of
Assertion (i)
(C) Assertion (i) is true but Reason (ii) is false.
(D) Assertion (i) is false but Reason (ii) is true.
3. Read the following statements - Assertion (i) and Reason (ii). Choose one of the correct alternatives
given below:
Assertion (i): Lack of double coincidence of wants is not drawbacks of barter exchange.
Reason (ii): Exchange of commodity for commodity is known as barter system.
(A) Both Assertion (i) and Reason (ii) are true and Reason (ii) is the correct explanation of Assertion (i)
(B) Both Assertion (i) and Reason (ii) are true and Reason (ii) is not the correct explanation of
Assertion (i)
(C) Assertion (i) is true but Reason (ii) is false.
(D) Assertion (i) is false but Reason (ii) is true.
4. If LRR=10%, Money Multiplier is:
(a) 10 (b) 20 (c) 30 (d) 40
5. Initial deposits made by the people from their own resources are called
(a) time deposits (b) secondary deposits (c) primary deposits (d) term deposits
6. Institution that accepts deposits for lending purpose is known as __
(a) Commercial Bank (b) Central Bank (c) Government (d) Public
7. Giving permission to withdraw money by an amount more than deposited to is known as _
(a) Advance (b) Overdraft (c) Loan (d) None of these
8. The Tata Iron and Steel Company was established in:
(a) 1857 (b) 1907 (c) 1921 (d) 1951
9. When was India's first official census undertaken?
(a) 1853 (b) 1881 (c) 1901 (d) 1921
10. Suez Canal was opened in:
(a) 1907 (b) 1869 (c) 1921 (d) 1901
11. Arrange the following events in chronological order in context of Indian economy and choose the
correct alternative
i. Establishment of TISCO
ii. First census data collected during British India
iii. Opening of the Suez canal
iv. Introduction of the railway by the British
a. i i,iv.iii,i b. iv,ii,iii,i c. iv,iii,ii,i d. i,ii,iii,iv
12. The main focus of industrial policy persuaded during colonial period was to:
a. Strengthen the Indian industrial base
b. Strengthen the flourishing industrial base of Britain
c. Strengthening the industrial base of India along with Britain
d. Cannot comment as the goals of the industrial policy during colonial period was not clear
13. Read the following statements: Assertion (A) and Reason (R).Choose one of the correct alternative.
Assertion (A): India could not develop a sound industrial base under British Rule;
Reason (R): The colonial government reduced India to the status of a mere exporter of raw materials
to be used by upcoming modern industries in Britain
Alternatives:
(A) Both Assertion (i) and Reason (ii) are true and Reason (ii) is the correct explanation of Assertion (i)
(B) Both Assertion (i) and Reason (ii) are true and Reason (ii) is not the correct explanation of
Assertion (i)
(C) Assertion (i) is true but Reason (ii) is false.
(D) Assertion (i) is false but Reason (ii) is true.
14. Who is the Chairperson of the Planning Commission of India?
a. President b. Prime Minister
c. Finance Minister d. Leader of Opposition
15. The Twelth Five Year Plan covered the period:
a. 1997-02 b. 2002-07 c. 2007-12 d. 2012-17
16. Mention the period of the Third Five Year Plan:
a. 1956-61 b. 1961-66 c. 1951-56 d. 1967-74
17. NITI Aayog is headed by:
a. Finance Minister b. President c. Prime Minister d. Governor of RBI
18. Equity refers to
(a) Equitable distribution of GDP (b) Development of Backward regions
(c ) Both A & B (d) None of the above
19. Post-independence, India has always focused to become a self-sufficient or a self-reliant nation. This
goal in the present Modi-era has been termed as
(a) Safal Bharat (b) Kaushal Bharat (c) Atmanirbhar Bharat (d) Apna Bharat
20. Read the following statements: Assertion (A) and Reason (R).Choose one of the correct alternative.
Assertion: (A) The price of food grains declined relative to other items of consumption.
Reason: (B) A good proportion of the rice and wheat produced during the green revolution period
(Available as marketed surplus) was sold by the farmers in the market.
Alternatives:
(A) Both Assertion (i) and Reason (ii) are true and Reason (ii) is the correct explanation of Assertion (i)
(B) Both Assertion (i) and Reason (ii) are true and Reason (ii) is not the correct explanation of
Assertion (i)
(C) Assertion (i) is true but Reason (ii) is false.
(D) Assertion (i) is false but Reason (ii) is true.
21. Explain circular flow of income in 2 sector Economics.
22. What are the limitations of GDP. Explain?
OR
Is Gross Domestic Product a true index of economic welfare of the people? Give two reasons in
support of your answer.
23. Explain problem of double counting and how it should be avoided?
24. Explain precaution in the estimation of national income or domestic income.
25. What is meant by money supply? Discuss in brief, the component of money supply.
26. Explain the following functions of Central Bank & Commercial Bank.
27. Explain the process of money creation by commercial bank, giving a numerical example.
28. Explain the relationship b/w MPC, MPS & K/with maximum and minimum value of each.
29. Show the derivation not saving curve form consumption curve.
30. Explain the working of investment multiplier by giving example used diagram.
31. In an economy, equilibrium is determined when planned Saving is equal to planned investment.
However, both these concepts are equal only at equilibrium level of income. Why does these both
concepts not equal at different level except equilibrium level. Give reasons.
32. Define inflationary gap and deflationary gap. Also explain how to correct this through Monetary and
fiscal policy?
33. What are the objective of Govt. Budget also define primary deficit, fiscal deficit?
34. How exchange rate is determined in flexible Exchange rate.
35. Write short notes on given topics.
a) MEI and ROI
b) Depreciation
c) NFIA and its components
d) real flow and money flow
36. Give three reasons of each of demand and supply of foreign exchange rate.
37. Define managed flouting exchange rate.
38. Write Merits and demerits of fixed and flexible exchange rate.
39. Explains components of Capital A/C and Current A/c in Balance of payment.
40. Differentiate b/w the following.
a) Real GDP U/S normal GDP (with formula).
b) Final Goods V/S intermediate Goods (with examples)
c) Voluntary unemployment v/s involuntary unemployment.
d) Autonomous v/s Accommodating transaction in GDP.
e) Devaluation V/S Dep of Domestic Currency.
f) Revenue Exp V/S Capital exp.
g) APC V/S MPS.
h) Balanced Trade V/s balance of payment.
i) Current a/c V/s capital a/c.
j) Depreciation v/s capital loss.
k) Current a/c surplus v/s current a/c deficit.
l) Direct taxes v/s indirect taxes (with example)
m) Stock v/s flow.
41. Numerical Questions.
a) National income, Indirect tax subsides Depreciation
b) Budget
c) Multiplier, AD – AS
42. (a) Calculate the value of operating surplus.
Amt.(₹in crores)
Value of output = 900
Intermediate consumption = 200
Compensation of employees = 200
Indirect taxes = 30
Depreciation = 20
Subsidies = 50
Mixed income = 100
(b) Domestic/household services performed by a woman may not be considered as an economic activity‟.
Defend or refute the given statement with valid reason.
43. From the following information calculate (i) Revenue deficit and (ii) Fiscal deficit
Tax Revenue =1000
Revenue Expenditure=3821
Non tax Revenue =2000
Recovery of loan=135
Capital expenditure=574
Disinvestment =100
Interest payments=1013
(B) What are the sources of financing fiscal deficit. Explain the sources.
44. There are various ways of credit used by people to improve their life but many if them are not
approved and suitable ….how are institutional source and non institutional source of explain in detail?

INDIAN ECONOMICS DEVELOPMENT IMPORTANT QUESTIONS FOR

MARCH 2025 EXAMINATION.
1. What are the main reasons for stagnation in agricultural sector? Explain land settlement system.
2. What are the indicators of demographic profile in India on the use of independencies?
3. Discuss the role of small state industries in the generation of employment and only they need
protection for their growth?
4. Goals of 5 year plan.
5. Discuss the industrial sector reforms introduced under the new Economics policy.
6. When and why Reforms introduced in the India?
7. What are the savours of human Capital formation in India?
8. Difference b/w.
a) Institutional v/s non-institutional sources.
b) Carrying capacity v/s Absorptive Capacity of the __________.
c) Bilateral V/s multilateral trade.
d) Tariff v/s non-tariff barriers.
9. Why is agricultural diversification required? State the benefit of diversification and what are the two
types of diversification?
10. What are the Sources of Rural Credit (Explain every point)
11. Reveal economic development is essential for Indian Economics development do you agree with the
above statement? Support your answer with valid reasons.
12. What are the measures taken by the government of India to improve agricultural marketing?
13. What do you mean by formal and informal sector? Discuss the condition of workers in each of these
sector.
14. Since independence, the govt. Has playing an important role in generating Employment Directly or
indirectly. Explain.
15. Explain the following.
a) Green revolution and its impact.
b) Positive Contribution by Britishers.
c) Functions of pollution Control Board.
d) Function of WTO.
e) NABARD
f) Outsourcing
g) Self Hop group
h) Horticulture
i) Organic farming
j) Sustainable development fuils aim.
16. Answer the following brief.
a) Function of environment.
b) Casualisation and information of workface.
c) Ozone Depletion
d) Global Warming
e) Iandi degradation.
f) Step to be taken for atlasing Sustainable development.
17. What similar comparative growth strategies have India, china and Pakistan followed for their
respective development paths?
18. Explain the ‘Great leap forward Campaign” and Cultural revolution of China.
19. Explain any 3 major components of Human Development Index Indicators.
20. What are the reasons for the slowdown of growth and re-exergonie of poverty in Pakistan’s economy.
21. Data fused questions form each chapter.
a) Employment (Gender Basis, Rural Urban Basis)
b) Comparative Development Experience India, Pakistan & China.
22. Purely financial transfers, such as the transfer of funds between individuals or entities without any
corresponding production or exchange of goods and services, are not considered in national income
calculations.” Do you agree with the given statement? Give valid reasons for your answer.
23. In contemporary times, there is a growing trend among individuals to prioritize modern employment
opportunities over traditional environmentally friendly practices, contributing to ecological challenges.
Discuss how embracing traditional practices can serve as a catalyst for both environmental
preservation and the creation of sustainable employment opportunities."
24. "‘The education sector in India faces significant challenges in its infrastructure and delivery
mechanisms.’ Discuss the given statement, highlighting key issues and potential solutions.
25. ‘Under the Delhi Declaration, the G-20 nations pledged to reach global net zero emissions
approximately by mid-century and to triple global renewable energy capacity by 2030.’
Discuss briefly the rationale behind the commitment by G-20 nations in the direction of achieving
sustainable development.
26. ‘It would be unclear to say that, the growth of human capital lays the ground for economic growth of a
nation.’
Do you agree with the given statement? Support your answer with valid illustrations.

27. Compare and analyse the given data of India and China with valid arguments.
Annual Growth of Gross Domestic Product (%), 1980-2017
1980-90 2015-2017
India 5.7 7.3
China 10.3 6.8
Source: Key Indicators for Asia and Pacific 2016, Asian Development Bank, Philippines; World
Development Indicators 2018.
28. "India‟s GDP contracted 23.9% in the April-June quarter of 2020-21 as compared to same period of
2019-20, suggesting that the lockdown has hit the economy hard‟.
(The Hindustan Times, 1st September 2020)
State and discuss any two fiscal measures that may be taken by theGovernment of India to correct the
situation indicated in the above news report.
29. Explain the function 'Currency Authority' of Reserve Bank.
30. Why are less women found in regular salaried employment?
b. Analyse the recent trends in sectoral distribution of workforce in India:
Trends in Employment Pattern (Sector wise), 1993-2012 (in %)
Sector 1993-94 1999-2000 2011-2012
Primary 64 60.4 24.3
Secondary 16 15.8 24.3
Services 20 23.8 26.8

31. (A).In order to understand the complexities of the industrial sector in India on the eve of
independence, elaborate on the prevailing conditions that contributed to “Systematic de-
industrialization" and technological backwardness.
(B) Analyze the complex challenges posed by India's foreign trade situation on the eve of independence.
Investigate the factors that led to the trade imbalances and dependence on imports during this period.
32. What is the basis aim behind Montreal protocol explain in detail about it?
33. Write about the comparative growth strategies of India China Pakistan in your own words?

**************************