CBSE Class 12 Economics Sample Paper 2017 Set C

1 In short run macroeconomic equilibrium analysis Investment is assumed as Autonomous due to:

i) Constant Marginal Propensity to save.

ii) Constant interest rate.

iii) Autonomous consumption

iv) Constant level of income 

2 Name the exchange rate mechanism in which central bank intervenes to moderate the exchange rate movements due to demand and supply of foreign exchange.

3 Which of the following is true to M3 definition of money?

i) It is the most liquid form of money.

ii) It is known as aggregate money supply of the country.

iii) Nationalized savings is a part of M3 definition.

iv) All statements are true.

4 Define Bank money 

5 Which of the following statement is true:

i) All capital goods are final goods

ii) Intermediate goods are durable producer goods

iii) Personal income is used for consumption and saving.

iv) National income is always more than domestic income. 

6 What are flow variable? 

7 Direct tax is a:

i) Regressive tax

ii} Burden can be shifted to many people

iii) Generally they are progressive

iv) Imposed on goods and services 

8 Which of the followingis an example of revenue receipts?

i) Borrowing from RBI

ii) Interest received on loans

iii) Recovery of loan

iv) Sale of shares of public sector enterprises 

9. Define Government Budget.

10. The Balance of trade of country shows deficit.What central bank can do to make surplus in the Balance of trade?

11. How does externality become the limitation of taking national product as an index of welfare?3

12. In India exchange rate of Euro has risen considerably. What is its likely impact on Indian Exports? Why?

13. What is the significance of making distinction between autonomous transactions and accommodating transaction in balance of payment?

14. The level of income in the economy is Rs.250 crores and Marginal Propensity to Save is 0.25. If the autonomous consumption and Investment in the economy is Rs. 75 crores, measure the level of ex-ante aggregate demand.Justify,whether the economy is in equilibrium or not.

15. An economy produces only one good. The prices of the good in 2013 and 2014 are Rs. 60 and Rs. 75 respectively. The quantity of output in 2013 1nd 2014 is 120 and 150 units respectively. Measure the percentage change in real GOP and Nominal GOP 

16. Discuss the basis of classifying the government expenditure in to revenue expenditure and capital expenditure.

OR

Discuss the basis of classifying the government revenue in to capital receipts and revenue receipts. 

17. Explain the term 'Currency Authority'.

OR

Discuss the phrase 'Lender of the last resort'.

18. Explain circular flow of income between households and firms. 

19. The equilibrium level of National income in the economy is RS.20000 crores.The ratio of Marginal propensity to save and Marginal propensity to Consume is 1:4.How much investment is required to increase the national income to Rs 28000 crores.

20 Distinguish the following:

i) Bank rate and Repo rate

ii) Term deposit and demand deposit 

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