SECTION A (Macro Economics)
1 Identify the final good from the following.
A. Electricity used by a trader of garments in his shop
B. Petrol purchased by a house hold for using in their car.
C. Readymade garments purchased by a trader for sale.
D. Bread purchased by a restaurant.
2 Central Bank has fixed Legal Reserve Ratio as 20% of the deposits collected by the commercial banks. The deposit multiplier could be -------------- times. (Choose correct alternative)
A. 4 B. 5 C. 6 D. 8
3 …………………………………… could lead to an increase in the demand for foreign exchange in the economy. (choose the correct alternative)
A. Foreign Direct Investment.
B. Deficit in Balance of Trade
C. Surplus in Balance of Trade
D. Transfer payments from abroad.
How is ‘Repo Rate’ different from ‘Bank Rate’?
5 Giving reason state whether the following statement is true or false.
‘Fund collected by the government from capital gain tax is stated as capital receipt in government budget’.
6 From the set of statements given in Column I and Column II, choose the correct pair of statement. statement.
Column I Column II
a. Excess demand (i) Accumulation of inventory in the economy
b. Import of goods from abroad (ii) Increases ‘aggregate demand’ in the economy
c. Changes in stock iii) Opening stock minus closing stock
d. Marginal propensity to save (iv) Can never be negative.
7 What does high powered money mean?
8 Name any one fiscal policy measure to correct inequalities in distribution of income and wealth.
OR
Name any one Public good that can be provided through budget allocation.
9 From the following identify accommodating items in Balance of Payment Account?
A. Export and import of goods and services
B. Private sector borrowings to invest in foreign countries
C. Private sector borrowings from abroad to import machineries.
D. Borrowing from IMF to finance deficit in balance of payment.
10 The value of Marginal Propensity to Save is found to be unitary. Investment multiplier could be: (Choose correct alternative)
A. Zero B. Infinity C. 10 D. 1
11 What are the precautions to be taken while calculating national income using expenditure method? State with reason.
OR
What are the precautions to be taken while calculating national income using value added method? State with reason.
12 How does Central Bank of a country use ‘Reserve Ratio Requirement’ to control credit creation and money supply in an economy?
13 By providing services like free primary education, free health facilities, maintenance of law and order etc, which of the two objectives that government expects to perform through its budget? Explain.
14 An increase of Rs.500 crore in investment in an economy resulted in a total increase in come of Rs2000/- crores. Calculate the following.
a. Marginal propensity to consume
b. Change in savings
c. Change in consumption expenditure
d. Value of multiplier.
15 Are the concepts of demand for domestic goods and domestic demand for goods same? Explain
OR
What are the components of current account of balance of payment account? Also distinguish between current account and capital account of balance of payment account.
16 Define investment multiplier. How is it related to Marginal Propensity to consume? Explain the process of multiplier. What is meant by this statement?
OR
‘An economy is functioning at equilibrium’. What do you mean by this statement? If the economy is not at equilibrium, what adjustment mechanism will take place to bring back the economy at equilibrium? Explain using diagram.
17 Calculate national income by income and expenditure method
1. Compensation of employees 7660
2. Government final consumption expenditure 7600
3. Indirect taxes 380
4. Gross domestic fixed capital formation 2860
5. Mixed income of self employed 4260
6. Rent, interest and profits 5620
7. Net addition to stock 200
8. Export of goods and services 340
9. Import of goods and services 360
10. Private final consumption 5800
11. Net factor income from abroad 100
12. Subsidies 120
13. Consumption of fixed capital 440
SECTION B ( Indian Economic Development)
18 A special geographical region that has economic laws different from a country’s typical economic laws in order to attract foreign investment is called -----------------------------------.
19 The campaign initiated by china, which was aimed at industrializing the country on a massive scale was known as: ---------------------------.(Choose the correct alternative)
A. The Great Proletarian Cultural Revolution.
B. The Great Leap Forward
C. The policy of Special Economic Zones
D. The Commune system
20 The concept explaining the three phases of falling death and birth rate associated with economic development is known as -----------------------------------.
A. Infant Mortality Rate
B. Life expectancy at birth
C. Demographic Transition
D. Overall Mortality Rate
21 Identify the structural reform measure from the following.
A. Policy to correct balance of payment deficit
B. Policy to control inflation
C. Policy of globalization
D. Policy to revive automobile industry
22 People whose income always lie below poverty line and sometimes may get a little more money are grouped under the category of --------------------- poor.
OR
People whose income regularly moves in and out of the poverty line and occasionally poor are categorized as ------------------poor.
23 Golden Revolution indicates:
A. Increase in the production of Organic farming products
B. Increase in the production of livestock
C. Increase in the production of wheat and rice
D. Increase in the production of horticultural crops
24 A system whereby all the farmers can pool their milk produced according to different grading and the same is processed and marketed to urban centers through cooperatives is referred as -----------------------------------.
25 Which one of the following statement is true in the case of India when we compare China and Pakistan?
A. High degree of urbanization
B. Very high fertility rate
C. Growth due to manufacturing sector
D. High density of population
Please click on below link to download CBSE Class 12 Economics Question Paper 2020 Set B Solved
