AMITY INTERNATIONAL SCHOOL
MOCK EXAMINATION PAPER 2023-2024
TERM 1 : CLASS – XII
SUBJECT – ECONOMICS
Time: 3 HRS
GeneralInstructions :
This question paper contains two parts:
1
Part A - Macro Economics
Part B - Indian Economic Development
2
3
4
Max.Marks :80
Marks for questions are indicated against each question.
Question No. 1-8 and Question No. 16 – 27 are 1 mark questions and are to be answered in one
word/sentence.
Case Based Questions (CBQ’s) are Question No. 11 and Question No. 32.
5
Question No. 9-10 and Question No. 28 – 29 are 3 marks questions and are to be answered in 60 - 80 words
each.
6
Question No. 11-13 and Question No. 30 – 32 are 4 marks questions and are to be answered in 80-100 words
each.
Question No. 14-15and Question No. 33 – 34 are 6 marks questions and are to be answered in 100-150 words
each.
Answers should be brief and to the point and the above word limit be adhered to as far as possible.
7
8
PART A : MACRO ECONOMICS
1. If in a Locality ,a new park is developed by the Municipal Corporations ,it will __________ externalities.
(Positive/Negative)
(1)
2. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given
below:
(1)
Assertion (A): Profits earned by a Company in India owned partly by resident and partly by
non-resident of India will be included in the Calculation of Domestic Income of India.
Reason (R): Profits earned by the Company in India is within the India‟s Domestic territory.
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.
3. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given
below:
(1)Assertion (A): Maintenance of a building by a
Household is treated as residential investment in the Economy.
Reason (R): Profits earned by the Company in India is within the India‟s Domestic territory.
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.
4. Refrigerator purchased by a confectionery shop is an example of :
(1)
a) Final Good
b) Intermediate Good
c) Capital Good
d) Both a) and c)
OR
Value Added method measures the contribution of which of the following with in the domestic
territory of a country?
(1)
a) Household consumers
b) The producing enterprises owned by residents of the country
c) The producing enterprises owned by the non-residents of the country
d) Both b and c
5. Read the Following Statements carefully and choose the correct alternative from the following:
Statement 1: In National Income Accounts, interest income includes interest on loans taken for
Both Productive as well as Consumption Purpose.
Statement 2: Interest income includes only the actual interest and not the imputed interest of
Funds provided by the entrepreneur.
a) Both the Statements are True.
b) Both the Statements are False.
c) Statement 1 is True and Statement 2 is False.
d) Statement 2 is True and Statement 1 is False.
6. Which of the Following statements is correct about Money Supply?
(1)
a) Currency held by the Public
b) Currency held by the Reserve Bank of India
c) Currency held by the Public and Demand Deposits with Commercial Banks.
d) Currency held in the Government Account.
(1)
7. Match the Statements given under A with the correct options given under B.
(1)
(A)
(B)
(i)
Repo Rate
a. Rate of Interest Payable to commercial banks on
their surplus deposits with RBI.
(ii)
Reverse Repo Rate
b. Rate of Interest which RBI provides short –term
credit to Commercial Banks.
(iii)
Bank Rate
c. Policy of the Central Bank
(iv)
Monetary Policy
d. Rate of Interest at which RBI lends money to
Commercial Bank for Long Period.
a) (i)b,(ii)a,(iii)d,(iv)c
b) (ii)b,(i)a,(iii)c,(iv)d
c) (ii)b,(i)d,(iii)a,(iv)c
d) (ii)a,(i)b,(iii)c,(iv)d
8. In India, coins are issued by: (1)
a) State bank of India
b) Reserve bank of India
c) Ministry of finance
d) Ministry of urban development?
9. Discuss briefly the three components of ‘Income from Property and Entrepreneurship’.
(3)
10. Differentiate between Quantitative and Qualitative Instruments of Credit Control as used
by the Central Bank.
OR
(3)
“Central bank is the sole authority to issue currency in the country.” Explain this role of RBI
clearly highlighting its importance in channelizing money supply in the economy.
(3)
11. Read the Passage given below, answer the Following Questions:
(4)
The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of the value of
goods and services an economy produces in a particular year at current prices to that of prices that
prevailed during the base year. This ratio helps show the extent to which the increase in gross domestic
product has happened on account of higher prices rather than increase in output. GDP price deflator
measures the difference between real GDP and nominal GDP. Nominal GDP differs from real GDP as the
former doesn't include inflation, while the latter does.
I.
Define GDP Deflator.
II.
Write the Formula for estimation of GDP deflator.
III.
Using Examples , explain that increase in GDP is not an indicator of Economic Growth.
IV. GDP deflator explains the relation between Nominal and Real GDP. Each of these two,
explain the growth and development of the Nation. Despite this, Real GDP is considered
To be as a better indicator of Growth. State any 2 Reasons.
12.
State under What Conditions in the Following Statements may be True:
(a) Domestic Income is greater than National Income.
(b) Value of Output is equal to Value Added.
OR
State with the reasons, whether the following statements are true or false:
(a)National income is always more than Domestic income
(b)Both Retirement pension and Old age pension are included in National income.
13.
(4)
(4)
Under Jan Dhan Yojna ,there are initial deposits of 10,000 crore in the banking institutions
Of the Economy. Banks are Legally Required to keep 20 % of their deposits as cash reserves
withRBI and 20% in Liquid Form with themselves.Being a head of Policy implementation
committee, Calculate the total value of Deposits that has been generated under the
scheme. Also, Explain How the value of Total Deposits will change if the LRR goes up by 10 %.
Based on the same, state the relationship between the Value of LRR and Total Deposits
Generated by Commercial Banks.
(4)
14.
Under the data below and find the value of Government Final Consumption Expenditure
And Mixed Income of Self Employed.(6)
S.NO PARTICULARS
(i)
National Income
(ii)
Gross Domestic Capital Formation
(iii)
Government
Final
Consumption
Expenditure
(iv)
Mixed Income of Self –Employed
(v)
Net factor Income from Abroad
(vi)
Net Indirect Taxes
(vii) Profits
(viii) Wages and Salaries
(ix)
Net Exports
(x)
Private Final Consumption Expenditure
(xi)
Consumption of Fixed Capital
(xii) Operating Surplus
AMOUNT (IN RS. CRORES)
71,000
10,000
?
?
1,000
2,000
1,200
15,000
5,000
40,000
3,000
30,000
OR
Given the Following data, calculate the values of Gross Domestic Capital Formation
And Operating Surplus.
(6)
S.NO
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
15.
PARTICULARS
National Income
Wages and Salaries
Private Final Consumption Expenditure
Net Indirect Taxes
Gross Domestic Capital Formation
Depreciation
Government
Final
Consumption
Expenditure
Mixed Income of Self Employed
Operating Surplus
Net Exports
Rent
Net Factor Income From Abroad
AMOUNT (IN RS. CRORES)
22,100
12,000
7,200
700
?
500
6,100
4,800
?
3,400
1,200
(-)150
Discuss the Following Functions of Central Bank.( 3+3)
a) As Government‟s Bank
b) Open Market Operations
PART B : INDIAN ECONOMIC DEVELOPMENT
16.
17.
Which of the following is not a benefit of Demonetisation in India?
(1)
a) Control Over Corruption
b) Counterfeiting use of high denomination notes for illegal activities
c) Control on Black Money
d) More Demanding Customers
The policy of .......................... led to protection of the domestic industries against the
foreign producers but we failed to promote a strong export surplus. fill up the blank with
the correct alternative)
(a)Import substitution
(b) Trade
(c) Exports
(d) None of these
(1)
18. After agreeing to the conditions of ______________________, India announced the New
Economic Policy(NEP).
(1)
a) International Bank for Reconstruction and Development (IBRD)
b) International Monetary Fund(IMF)
c) Reserve Bank of India (RBI)
d) Both (a) and (b)
19. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
(1)
Assertion (A): The major Policy Initiatives i.e Land Reforms and Green Revolution helped
India to become Self Sufficient in Food Grain Productions.
Reason (R) : The Proportion of People depending on agriculture did not decline as expected.
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.
20. The opening of Suez Canal served as a direct route for ship operating between:
a) India and America
b) India and Sri Lanka
c) India and Pakistan
d) India and Britain
21.
Occupational Structure refers to
(1)
a) Distribution of working force among the different occupations
b) Nature of Different Occupations
c) Size of Working Force in a Country
d) Number of People Living in a Country
OR
Identify the Statement which is true in the context of Demographic Condition of
India during British Rule:
(1)
a) High Birth Rate
b) Low Death Rate
c) Low Infant Mortality Rate
d) High Literacy Rate
22. Economic Growth combined with _________________(Equity and Disparity) was the
Principal goal of Planning in India.
(1)
23. Which of the Following is a Non-Farm area of Employment?
(1)
a) Livestock Farming
b) Horticulture
c) Fisheries
d) All of the above
24. The scheme of Micro –Finance is extended through ______________(Regional Rural Banks/
Self Help Groups ).
(1)
25. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
(1)
Assertion (A):Indian Government took various measures to improve Agricultural Marketing.
Reason (R) : Farmers were often forced to sell at low Prices due to lack of required Market
Information.
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.
26. Agriculture marketing does not comprise of ……………
A. Transportation of produce to the market place for sale.
B. Grading of the produce according to the quality
C. Storage of the produce for sale in future
D. Credit taken to meet expenditure on agriculture
(1)
27. Which production does come under Agricultural diversification? (1)
A. Food grains
B. Commercial crops
C. Horticulture and Dairy
D. All of these
28. “Agriculture sector appears to be adversely affected by the Economic Reform Process.”
Explain the given statement.
(3)
29.
Explain the Steps taken by the Government in Developing Rural Markets.
OR
Discuss the following as a source of human capital formation:
a)Health infrastructure
b)Expenditure on migration
(3)
(3)
30. Critically appraise some of the shortfalls of the Industrial Policy Pursued by the British
Colonial Administration .
(4)
31. India is often called as „Outsourcing Destination‟ of the world. Discuss the prime reasons
for this name given to India.
(4)
OR
“ Does Modernisation as a Planning Objectives shows a dichotomy with employment
Generation.” Justify the Statement.
(4)
32.
Read the Passage given below, answer the Following Questions (i )to (iv ): (4)
Crop diversification is intended to give a wider choice in the production of a variety of crops
in a given area so as to expand production related activities on various crops and also to lessen
risk. Crop diversification in India is generally viewed as a shift from traditionally grown less
remunerative crops to more remunerative crops. The crop shift (diversification) also takes place
due to governmental policies and thrust on some crops over a given time, for example creation
of the Technology Mission on Oilseeds (TMO) to give thrust on oilseeds production as a
national need for the country's requirement for less dependency on imports. Market
infrastructure development and certain other price related supports also induce crop shift. Often
low volume high-value crops like spices also aid in crop diversification. Higher profitability and
also the resilience/stability in production also induce crop diversification, for example sugar
cane replacing rice and wheat. Crop diversification and also the growing of large number of
crops are practiced in rainfed lands to reduce the risk factor of crop failures due to drought or
less rains Crop substitution and shift are also taking place in the areas with distinct soil
problems. For example, the growing of rice in high water table areas replacing oilseeds, pulses
and cotton, promotion of soybean in place of sorghum in vertisols (medium and deep black
soils) etc.
(i)
Diversification of crop production________________(Maximizes/Minimize) market
risk.
(ii)
Diversification of Crop Production involves a shift in cropping pattern
from______________grains to _______________________crops.
(iii) Diversification of Crop Production will __________(Increase/Decrease) income of
farmers.
(iv)
The main aim of diversification of crop production is to promote shift from___________
(Subsistence/Commercial) farming to crops.
a) “ Demand for Indian Handicrafts in Indian Market as well as market was systematically
destroyed by Britishers . ” Defend or Refute.
b) Explain how import substitution can protect Domestic Industry .
(3+3)
34. Though Public Sector is very essential for Industries ,Many PSU‟s incur huge losses and
are a drain on the Economy‟s Resources. Discuss the usefulness of PSU‟s in the light of
this fact.
(6)
OR
What is Green Revolution ?Why was it implemented and how did it benefit the Farmers?
(2+2+2)
33.