CBSE Economics Class 12 NODIA Sample Paper 11 Page 1

Sample Paper 11
ECONOMICS (030)
Class XII Session 2023-24
Time: 3 Hours Max. Marks: 80
General Instructions:
1. This question paper contains two sections:
Section A – Macro Economics
Section B – Indian Economic Development
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Section A -Macro Economics

Multiple Choice Questions (Q1 to Q10) 1 ´ 10=10

1. The following news report appeared in The Hindu on 1st June, 2023.
“Saudi Arabia has agreed to provide Pakistan with a ‘sizeable package’ of around $8 billion to help the cash-
starved country bolster dwindling forex reserves and revive its ailing economy.”
On which account and which side, it will be recorded in Pakistan’s BoP statement?
(a) Current account, debit side (b) Current account, credit side
(c) Capital account, debit side (d) Capital account, credit side

2. Assertion (A): Demand curve of foreign currency is negatively sloped.

Reason (R): If price of foreign currency increases, it become costlier for home country.
In the light of the given statements, choose the correct alternative from the following:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false

3. Statement 1: Demonetisation was an initiative taken by the Government of India to curb black money, terrorism
and circulation of fake currency.
Statement 2: Demonetisation has lead people to shift from cash payments to electronic payments.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true

4. All currencies other than the domestic currency of a country are called as_______.
(i) Foreign exchange rate
(ii) Foreign exchange
(iii) Foreign aid
Identify the correct alternative from the following:
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Page 2 NODIA Sample Paper 11 CBSE Economics Class 12

(a) (i) and (iii) (b) (i) and (ii)

(c) Only (ii) (d) (i), (ii) and (iii)

5. The image given below is indicating which of the following options correctly?

(a) Foreign reserve (b) Foreign exchange

(c) Foreign exchange rate (d) Both (b) and (c)

6. “Economic growth means increasing per capita income over a period of time.” Economic growth objective of the
government budget depends on_________.
(a) profit maximisation (b) rate of saving and investment
(c) fair distribution of income (d) removal of poverty

7. Identify the correct pair from the following Column I and Column II:
Column I Column II
A. Devaluation of domestic currency (i) Causes a desired fall in the value of rupee
B. Merchandise (ii) Managed Floating Exchange Rate
C. Current account surplus (iii) Fixed Exchange Rate System
D. Depreciation of domestic currency (iv) Export and Import of Services
Alternatives:
(a) B - (ii) (b) A - (i)
(c) D - (iv) (d) C - (iii)

8. From the following functions of the Central Bank, identify the odd one out:

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CBSE Economics Class 12 NODIA Sample Paper 11 Page 3

(a) D (b) C
(c) B (d) A

9. Demand Deposits include_______and______.

(i) Saving account deposits
(ii) Fixed deposits
(iii) Current account deposits
(iv) Post office savings
Alternatives:
(a) (i) and (iii) (b) (i) and (ii)
(c) (i) and (iv) (d) (ii) and (iii)

10. Find the missing figures and choose the correct alternatives.
Income (Y) Consumption (C) Average Propensity to Consume (APC)
0 300 ––
200 350 ...(i)...
400 ...(ii)... 1
...(iii)... 450 0.75
800 500 ...(iv)...
Alternatives
(a) 0.75, 400, 800, 0.65 (b) 1.75, 400, 600, 0.625
(c) 1.75, 400, 625, 0.6 (d) 1.75, 400, 600, 0.55

Short Answer Questions (Q11 to Q12) 3´2=6

11. The single tax implemented from 1st July 2017 was likely to reduce prices of which kind of products? Give
example of any three items which are exempted from GST and why? Give reason.

12. Government provides essential items of food grains almost free to the families below the poverty line. Which
objective the government is trying to fulfil through the government budget and how ? Explain.


o
The Government, under Ujjwala Yojana, is providing free LPG kitchen gas connections to the families ‘below the
poverty line’. What objective the government is trying to fulfil through the government budget and how? Explain.

Short Answer Questions (Q13 to Q15) 4 ´ 3 = 12

13. “Government incurs expenditure to popularise yoga among the masses.” Analyse its impact on Gross Domestic
Product and welfare of the people.


o
How is Real GDP different from Nominal GDP? Which of these is a better indicator of economic welfare?

14. “Central bank utilises both qualitative and quantitative tools in order to control the credit creation process in the

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Page 4 NODIA Sample Paper 11 CBSE Economics Class 12

economy”. Briefly explain any two qualitative tools used to control money supply in the economy.

15. Explain the meaning of ‘underemployment equilibrium’. Give two monetary measures by which full employment
equilibrium can be reached.

Long Answer Questions (Q16 to Q17) 6 ´ 2 = 12

16. (a) On the basis of given table, comment on the performance of total consumption, private consumption and
government consumption in context or tneir recovery.

Components 2019-20 (1st RE) 2020-21 (PE) 2021-22 (1st AE) Recovery over 2019-20
Total Consumption 5.9 -7.3 7.0 99.2
Government Consumption 7.9 2.9 7.6 110.7
Private Consumption 5.5 -9.1 6.9 97.1
Gross Fixed Capital Formation 5.4 -10.8 15.0 102.6
Exports -3.3 -4.7 16.5 111.1
Imports -0.8 -13.6 29.4 111.8
GDP 4.0 -7.3 9.2 101.3

Source: NSO
Note: RE - Revised Estimates, PE - Provisional Estimates, AE - Advance Estimates
(b) From the following data, calculate Gross Domestic Product at market price.

(` in crores)
(i) Compensation of employees 1,000
(ii) Net exports (-)50
(iii) Profits 400
(iv) Interest 250
(v) Rent 150
(vi) Gross national product at factor cost 1,850
(vii) Gross domestic capital formation 220
(viii) Net fixed capital formation 150
(ix) Change in stock 20
(x) Factor income from abroad 30
(xi) Net indirect taxes 100


o
Find the missing values of ‘Private Final Consumption Expenditure’ and ‘Operating Surplus’ from the following
data:
(` in crores)
(i) Profits 500
(ii) Wages and Salaries 10000
(iii) National Income 25000
(iv) Net Indirect Taxes 200
(v) Private Final Consumption Expenditure ?
(vi) Gross Domestic Capital Formation 9000

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CBSE Economics Class 12 NODIA Sample Paper 11 Page 5

(vii) Government Final Consumption Expenditure 6500

(viii) Consumption of Fixed Capital 400
(ix) Mixed Income of Self-employeds 7000
(x) Net Exports 1000
(xi) Operating Surplus ?
(xii) Net Factor Income from Abroad 250

17. In a economy, investment increased by 1,100 and as a result of it, income increased by 5,500. Had the marginal
propensity to save been 25%, what would have been the increase in income?

Section B -Indian Economic Development

Multiple Choice Questions (Q18 to Q27) 1 ´ 10=10

18. ________medicine includes medical practices which are designed to avoid or avert diseases.
(a) Preventive medicine (b) Curative medicine
(c) Social medicine (d) Any of the above

19. Assertion (A): Animal husbandry is the part of diversification of productive activities in rural areas.
Reason (R): It provides stable employment opportunities in off season.
In the light of the given statements, choose the correct alternative from the following:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false

20. The main thrust of the economic policies pursued by the government considers_______.
(a) ensuring balanced regional development
(b) expanding the urban-rural wage gap
(c) a complete switch from agricultural to manufacturing sector
(d) None of the above

21. Statement 1: India has an edge over Pakistan in skilled manpower, investment in education and health facilities.
Statement 2: Special Economic Zones (SEZs) policy has proved to be a boon for FDI flow in China.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true

22. Which of the following gives the correct sequence explaining the commencement of five year plans in chronological
order?
(a) India, China and Pakistan (b) Pakistan, China and India
(c) China, India and Pakistan (d) India, Pakistan and China

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Page 6 NODIA Sample Paper 11 CBSE Economics Class 12

23. “Most of the agricultural labourers depend upon loans from informal sector”. Which of the following statements
about this sector is correct?
(a) There are government bodies to supervise informal sector
(b) Money lenders ask for a reasonable rate of interest
(c) Cost of informal loans to the borrower is quite high
(d) Money lenders use fair means to get their money back

24. Arrange the following events of China in chronological order and choose the correct alternative:
(i) Great Leap Forward Campaign
(ii) First Five Year Plan
(iii) Economic Reforms introduced
(iv) Great Proletarian Cultural Revolution
Choose the correct alternative:
(a) (iv), (i), (ii), (iii)
(b) (ii), (iv), (i), (iii)
(c) (ii), (i), (iv), (iii)
(d) (ii), (iv), (iii), (i)

25. From the set of events/systems given in Column I and corresponding relevant fact given in Column II, choose the
correct pair of statement:
Column I Column II
A. Human capital (i) Overall development and well-being of a nation’s human capital
B. Human development (ii) Movement of people in search of jobs from one place to another
C. Migration (iii) Stock of nation’s skill and expertise at a particular point of time
D. Physical capital (iv) Capital completely mobile between countries except for trade restriction
imposed
Alternatives:
(a) D - (iv)
(b) C - (iii)
(c) B - (ii)
(d) A - (i)

26. Main intention of the British rulers behind the introduction of railways in India was:
(a) to break geographical and cultural barriers.
(b) to earn profit through foreign trade.
(c) to develop India’s cotton and jute industry.
(d) cheap and rapid movement of people from one place to another.

27. System where farmers and industrial units were to buy and sell fixed quantities of raw material and products on
the basis of price fixed by government was termed as:
(a) Dual pricing
(b) Great Leap Forward
(c) Special Economic Zones
(d) Great Proletarian Cultural Revolution

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CBSE Economics Class 12 NODIA Sample Paper 11 Page 7

Short Answer Questions (Q28 to Q29) 3´2=6

28. Answer the following questions on the basis of given data on employment pattern in India:
Employment pattern (Status wise) 1972-2012 (in %)
Status 1972-73 2011-12
Self-employed 61.4 52.0
Regular salaried employees 15.4 18.0
Casual wage labourers 23.2 30.0
Total 100.0 100.0
(a) Analyse the trend in the employment pattern on the basis of the above table.
(b) Which source is the major employment provider?
(c) What is the above process of status movement termed as?


o
How is agricultural diversification helpful for farmers? Explain.

29. On the basis of given image, answer the questions that follow in context to National Education Policy, 2020.

(a) How much gross enrolment ratio is expected in Pre-school to Secondary Level by 2030?
(b) How much investment in education sector of GDP is targeted and what is the current level of investment in
education sector?

Short Answer Questions (Q30 to Q32) 4 ´ 3 = 12

30. ‘Colonial era was responsible for the decline of traditional handicraft industries.’ Accept/Refute the above
statement by giving reason.


o

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Page 8 NODIA Sample Paper 11 CBSE Economics Class 12

Enumerate the main causes of limited success of planning in India.

31. ‘A skilled worker like software professional generates more income than an unskilled worker.’ Substantiate the
above statement.

32. Write a short note on the following:

(a) SAARC (b) European Union
(c) ASEAN (d) G-8 or G-7

Long Answer Questions (Q33 to Q34) 6 ´ 2 = 12

33. Define environment. What are its main functions?

o
Elaborate how the following factors contribute to the environmental crisis in India:
(a) Air pollution
(b) Water contamination
(c) Illiteracy

34. Read the following text carefully and answer the given questions on the basis of the same and common
understanding:
Indian agricultural economy was largely subsistence in nature before Independence. It had dismal performance
in the first half of twentieth century. This period witnessed severe droughts and famines. During partition, about
one-third of the irrigated land in undivided India went to Pakistan. This reduced the proportion of irrigated area
in independent India. After independence, the immediate goal of the Government was to increase foodgrains
production by switching over from cash crops to food crops; intensification of cropping over already cultivated
land; and increasing cultivated area by bringing cultivable and fallow land under plough. Initially, this strategy
helped in increasing foodgrains production. But agricultural production stagnated during late 1950s. To overcome
this problem, Intensive Agricultural District Programme (IADP) and Intensive Agricultural Area Programme
(IAAP) were launched. But two consecutive droughts during mid-1960s resulted in food crisis in the country.
Consequently, foodgrains were imported from other countries.
New seed varieties of wheat (Mexico) and rice (Philippines) known as High Yielding Varieties (HYVs) were
available for cultivation by mid-1960s. India took advantage of this and introduced package technology
comprising HYVs, along with chemical fertilisers in irrigated areas of Punjab, Haryana, Western Uttar Pradesh,
Andhra Pradesh and Gujarat. Assured supply of soil moisture through irrigation was a basic pre-requisite for the
success of this new agricultural technology. This strategy of agricultural development paid dividends instantly
and increased the foodgrains production at very fast rate. This spurt of agricultural growth came to be known as
‘Green Revolution’. This also gave fillip to the development of a large number of agro-inputs, agro-processing
industries and small-scale industries. This strategy of agricultural development made the country self-reliant in
foodgrain production. But Green Revolution was initially confined to irrigated areas only. This led to regional
disparities in agricultural development in the country till 1970s, after which the technology spread to the Eastern
and Central parts of the country.
(a) Why was Green Revolution implemented and how did it benefit the farmers?
(b) What were the spillover benefits of Green Revolution and how did it led to regional disparities?


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