1
Academic Year 2023-24
CYCLIC-TEST 1
GRADE:12 K
SUBJECT: Economics
DAY & DATE: 1/04/2025 & Tuesday
MAX MARKS: 40
TIME: 90 minutes
General Instructions:
 Answer all questions
 No choice
1
Are the following statements true or false? Give reasons
1
a) Capital formation is a flow.
b) National Income of a country is a stock concept.
2
Which one of the following is not an example of final goods?
1
3
a) Chalk, dusters, etc. purchased by a school
b) Wheat used by the flour mill
c) Fertilizers used by the farmers
d) All of the above
Which of the following are covered under the domestic territory of India?
1
a) Google office in India
b) Russian Embassy in India
c) State Bank of India in London
d) Office of Tata Motors in Australia
4
Calculate “Depreciation” from the following data:
Particulars
(i) Gross value of output
(ii) Net value added at factor
cost
(iii) Subsidies
(iv) Intermediate Consumption
3
` crore
300
100
15
185
5
Subsidies to the producers ,should be treated as transfer payment.Defend 3
or refute the given statement with valid reason
6
Explain phases of Circular flow of Income
3
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2
7
‘‘Final goods include only those goods which are consumed by the 4
households.’’ Defend or refute the given statement with valid reason.
8
Explain Circular flow of income in two sector Economy
4
9
Calculate GDP mp from following data
4
Items
(₹in Lakhs)
GNPfc
600
Consumption of fixed capital
30
Factor income received from 400
Abroad
Factor income paid to Abroad
200
Net indirect taxes
10
11
40
Define NFIA?Explain its components.
4
a) Calculate Subsidies from following data (4)
Items
(₹in Lakhs)
Net factor income from Abroad
-10
GNPfc
158
Consumption of fixed capital
25
Indirect taxes
45
NDPmp
180
6
b) Differentiate between Factor income and Transfer Income(2)
12
Read the following report carefully and answer the questions 1-6 on the 6
basis of the same:
The Economic Survey, 2018-19 describes the virtuous cycle of growth
wherein increase in the rate of fixed investment accelerates the growth
of GDP that in turn induces a higher growth in consumption improves the
investment outlook, which results in still higher growth of fixed investment
that further accelerates the growth of GDP, inducing a still higher growth
of consumption. This virtuous cycle of higher fixed investment-higher GDP
growth-higher consumption growth generates economic developmnent in
the country.
-Economic Survey, 2019-20
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3
i.
High --------------is a sign of expansion of production capacity in the
economy.
(Fill up the blank with correct alternative)
(a) inventory investment
(b) gross fixed investment
(c) net fixed investment
(d) gross investment
ii.
--------------includes investment for the maintenance of fixed assets.
(Fill up the blank with correct alternative)
(a) Net investment
(b) Gross investment
(c) None of these
(d) Fixed investment
iii.
Inventory investment includes:
(Choose the correct alternative)
(a) stock of fnished goods
(b) stock of semi-finished goods
(c) stock of raw material
(d) all of these
iv.
Depreciation is a component of:
(Choose the correct alternative)
(a) gross investment
(b) net investment
(c) fixed investment
(d) none of these
v.
Read the following statements carefully and choose the correct
alternative among those given below:
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4
Statement 1 : Gross investment includes only inventory investment.
Statement 2 : Gross investment shows net addition to the existing capital
stock.
Alternatives:
(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
vi.
The stock of finished goods enables the producers to meet the
future demand for their product.(True or False")
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