NEO CONVENT SCHOOL, PASCHIM VIHAR, NEW DELHI-63

REVISION PAPER -1 (2022-23)

CLASS –XII ECONOMICS(030) ( DATE - 02 .12.22 )
Time Allowed: 3 Hours Roll No. _____ [Maximum Marks: 80] Invigilator’s Sign_______
No. of pages- 4
General Instructions:
1. This question paper comprises two sections A and B. All questions are compulsory.
2. Question numbers 1 – 10 and 18 – 27 are very short-answer questions carrying 1 mark each.
3. Question numbers 11 – 12 and 28 – 29 are short-answer questions carrying 3 marks each.
4. Question numbers 13 – 15 and 30 – 32 are also short-answer questions carrying 4 marks each.
5. Question numbers 16 – 17 and 33 – 34 are long answer questions carrying 6 marks each.
SECTION – A (Macro Economics)
1. Which of the following is not a non-tax revenue receipt ? (Choose the correct alternative)
(A) Goods and Services tax
(B) External grants
(C) Dividends and profits
(D) Disinvestment

2. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Ex-post Investments represent planned Investments; whereas ex-ante Investments represent actual
level of investments.
Reason (R): At equilibrium level, Ex-ante Savings and Ex-ante Investments are always equal.
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. State, whether the following statement is true or false :

‘‘Government budget is an annual statement showing actual receipts and actual payments of the government for
the last fiscal year.’’

4. Money supply in India may increase if, ________________(Choose the correct alternative)
1. Reserve Bank of India(RBI) injects more money in circulation
2. the commercial banks expand their credit operation
3. tax rates are reduced by the Central Government
4. Reserve Bank of India increases the Bank Rate
Alternatives:
A) 1,2 and 3 are correct
B) 2,3 and 4 are correct
C) 1,3 and 4 are correct
D) 1,2 and 4 are correct

5. Under Statutory Liquidity Ratio, commercial banks are required to keep a fraction of _________ in the form of
liquid assets. (Choose the correct alternative)
(A) Total deposits
(B) Term deposits
(C) Total demand and term deposits
(D) Current deposits

6. Primary deficit can be zero if _________ . (Fill in the blank with correct alternative)
(A) Fiscal deficit = Interest payments
(B) Fiscal deficit < Interest payments
(C) Fiscal deficit > Interest payments
(D) Revenue deficit < Fiscal deficit
7. State the meaning of Involuntary Unemployment.

8. State, whether the following statement is true or false :

‘‘The official reserve transactions are taken as the accommodating item in Balance of Payment (BOP).’’

9. Define ‘Foreign Exchange Rate’.

10. If the exchange rate of the home currency rises, the value of exports of the economy is likely to ________ . (Fill in
the blank with correct answer)

11. ‘‘Balance of Payment (BOP) is always balanced in the accounting sense.’’Defend or refute the given statement
with valid reasons.

12. From the following data, calculate (a) Revenue deficit and (b) Fiscal deficit:
Particulars Amount
(inRs. crores)
(i) Tax Revenue 1,000
(ii) Revenue Expenditure 3,821
(iii) Non-tax Revenue 2,000
(iv) Recovery of Loans 135
(v) Capital Expenditure 574
(vi) Disinvestment 100
(vii) Interest Payments 1,013

13. In the given figure, what does the gap ‘KT’ represent ? State and discuss any two fiscal measures to correct the
situation.

14. ‘‘To boost the falling demand in the economy, the Reserve Bank of India recently reduced Repo rate.’’ Elaborate
the rationale behind the steps taken by the Central Bank.

15. Calculate Gross Value Added at Market Price (GVAMP) from the following data :
Particulars Amount(in Rs. lakhs)
(i) Depreciation 20
(ii) Domestic Sales 200
(iii) Change in Stock (–) 10
(iv) Exports 10
(v) Single Use Producer Goods 120
(vi) Net Indirect Taxes 20

16. Answer the following questions based on the data given below :
(i) Planned investment = 100 crore
(ii) C = 50 + 0·5 Y
(a)Determine the equilibrium level of income.
(b)Calculate the saving and consumption expenditure at equilibrium level of National Income.

17(a). Define the problem of double counting in the estimation of National Income. Discuss two approaches to
correct the problem of double counting.
(b)Define the following :
(i)Capital Goods
(ii)Gross Domestic Product
(iii)Income from property and entrepreneurship

SECTION – B (Indian Economic Development)

18.Under the Industrial Policy Resolution of 1956, industries were classified in ____________ (two/three)
categories. (Fill in the blank by choosing the correct alternative)

19. Study the following statements Assertion (A) and Reason (R) :
Assertion (A) : During colonial rule, both mortality rates and infant mortality rates were very high.
Reason (R) : British never paid any heed towards improvement of public health facilities in India.
Choose the correct alternative from the following :
(A) Both Assertion (A) and Reason (R) are true.
(B) Both Assertion (A) and Reason (R) are false.

20. Choose the correct pair of statements given in columns I and II below :

21. Define "Tariffs".

22. In India the maternal mortality rate is higher ___________ (China/Pakistan).

(Fill in the blank by choosing the correct alternative)

23. Study the following information and fill in the blank by choosing the correct alternative :

Country _______ (A/B/C) can be termed as the best on the HDI indicator

Study the following text carefully and answer question numbers 24 -27 :
This is the story of Simran Agro Ltd Project Simran . Project Simran was aimed at strengthening farmers` capacity
for enhancing productivity by ensuring usage of high quality inputs. Project Simran used agricultural best practices
for the same. Simran Agro works towards providing fair price markets to the farmers. Tomato is the major crop of
the area. Objectives of Project Simran :
To set up an ideal tomato crop management system for farmers.
To implement modern technology.
To provide marketing support to the farmers.
Project Simran used the soil testing technique for selection of seeds. It procured all the inputs for farmers, to
reduce the production cost. Training by agro-scientists has also helped in reducing crop failures.

24. Project Simran adopted agricultural best practices for ensuring ____________ . (Fill in the blank with correct
answer)

25. State any one objective associated with Project Simran.

26. Contribution of ____________ (agro-scientists/agro-engineers) played an important role in reducing crop failure.
(Fill in the blank with the correct alternative)
27. ____________ (Use of better technology/Use of costly technology) may not generally lead to higher income for
the farmers. (Fill in the blank by choosing the correct alternative)

28. ‘‘It is necessary to create employment in the formal sector rather than in the informal sector.’’ Defend or refute
the given statement with valid arguments.

29. Comment upon the following statements :

(i) Traditional knowledge and practices are still applicable in ensuring sustainable development.
(ii) A well-structured rural banking system is important for the development of a nation.

30. ‘‘Agriculture sector appears to be adversely affected by the economic reform process.’’ Explain the given
statement.

31. ‘‘India, China and Pakistan have travelled more than seven decades of developmental path with varied results.’’
Explain the given statement with valid arguments.

32. Discuss briefly the rationale behind choosing ‘Self-reliance’ as a planning objective for the Indian economy.

33(a) Define the following :

(i) Carrying capacity of environment
(ii) Absorptive capacity of environment
(b) ‘‘The Indian Health System needs a stronger dose of public expenditure to cure itself.’’ Justify the given
statement with valid arguments.

34.(a) Why are less women found in regular salaried employment ?

(b) Analyse the recent trends in sectoral distribution of workforce in India :
Employment Pattern (Sector wise)

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