Class 11 Sample Paper 2024 Economics

Sample Paper

CLASS-XII SUBJECT- ECONOMICS
TIME-3:00 HOURS M.M.:80MARKS

GENERAL INSTRUCTIONS

i. All questions in both the sections are compulsory.
ii. Question Nos. 1-10 and 18-27 are very short-answer questions carrying 1 mark each. They are
required to be answered in one sentence each.
iii. Question Nos. 11- 12 and 28- 29are short-answer questions carrying 3 marks each. Answer
to them should not normally exceed 60 words each.
iv. Question Nos. 13- 15 and 30 - 32 are also short-answer questions carrying 4 marks each.
Answer to them should not normally exceed 70 words each.
v. Question Nos. 16-17 and 33 -34 are long-answer questions carrying 6 marks each. Answer to
them should not normally exceed 150 words each.
vi. Answers should be brief and to the point and the above word limit be adhered to as for as
possible.
SECTION ‘A’

In India, paper notes are_---------legal tender & ---------legal tender .
1 1
(Fill in the blanks with the correct answers)
2 During COVID-19 the present government, provided monetary relief to daily wage workers to 1
meet their basic needs. While estimating National Income, how shall you treat this payment?
It will be (included/ not included) in the National income.
(Choose the correct alternative)
3 A company located abroad gives loan to a company located in India . How will this transaction 1
be recorded in India’s balance of payments account?
(Choose the correct alternative)
(a) Credit side of current account
(b) Debit side of current account
(c) Credit side of capital account
(d) Credit side of capital account
OR
An Indian company located in India invests in a company located abroad. This transaction is
entered in India’s balance of payments account on:
(Choose the correct alternative)
(a) Credit side of current account
(b) Debit side of current account
(c ) Credit side of capital account
(d) Debit side of capital account
4 Choose one of the correct alternatives from the given Assertion & Reason: 1
Assertion(A): At Break-even point, Consumption=National Income.
Reason(R): APC falls continuously with increase in income as proportion of income

spent on consumption keeps on decreasing.
a) Both Assertion(A) & Reason(R) are true and R is the correct explanation of A.
b) Both Assertion(A) & Reason(R) are true and R is not the correct explanation of A.
c) Assertion(A) is true but Reason(R) is false.
d) Assertion(A) is false but Reason(R) is true.

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5 If interest payment is Rs.40,000 cr. and total Borrowing requirements are Rs.70,000 cr. then 1
Primary deficit is---------------.
When a government action causes increases in the exchange rate in a fixed exchange rate system,
it is called .
(Fill in the blank with the correct alternative)
(a) Depreciation (b) Appreciation
(c ) Devaluation (d) Revaluation
----------- is the “Lender of the last Resort” to the commercial banks.
(Fill in the blank with correct answer)
Read the following news report and answer Question 8 and 9 on the basis of same:
The Reserve Bank of India said it will conduct the first-ever purchase auction of State Development
Loans (SDLs) under Open Market Operations on 22nd October.
The purchase auction amount has been kept at this level considering this is the first ever OMO purchase
of SDLs, RBI said. The size of the auctions may be enhanced in the subsequent auctions depending on
market response. The Indian Express , October 17, 2020
8 The open market operation conducted by RBI is likely to.............. (decrease /increase ) the 1
money supply in the economy .
9 When Reverse Repo Rate is increased , it has a ---------effect on the lending capability of the 1
commercial banks. ( positive/negative)
10 Choose one of the correct alternatives from the given Assertion & Reason: 1
Assertion(A): Current account transactions bring a change in the current level of country’s
income.
Reason(R): Current Account includes all items expressing change in stock.
a) Both Assertion(A) & Reason(R) are true and R is the correct explanation of A.
b) Both Assertion(A) & Reason(R) are true and R is not the correct explanation of A.
c) Assertion(A) is true but Reason(R) is false.
d) Assertion(A) is false but Reason(R) is true.
11 Which is a better indicator of growth of an economy—Nominal GDP or Real GDP? Justify 3
your answer with valid reasons.
OR
How will you treat the following in the calculation of ‘Domestic Income’ & ‘National
Income’ of India? Give reason for your answer.
a) Retained earnings of foreign companies from India.
b) Salary of residents of France working in Indian embassy in France.
c) Profits of Tata Industries from its business in Australia.
12 Distinguish between balance of payments and balance of trade. 3
13 (a) Distinguish between Capital Receipts & and Revenue Receipts. 4
(b) Distinguish between Direct Tax & Indirect Tax.
14 Define Investment Multiplier. What is the range of it’s values? Bring out the relation of 4
Investment Multiplier with MPC & MPS.
OR
Due to COVID-19, our industrial sector has seen a huge decline. People's sources of income have
reduced on a large scale. As a result, there is a decrease in overall demand in the economy. An
increase in aggregate demand is being suggested by economists.
Describe any two fiscal measures to be taken by the Government of India to correct the above
situation.
15 Describe the process of Multiple credit creation by commercial banks giving an example. 4

Answer the following questions based on the data given below : 6
(i) Planned level of investment = Rs.200 crores
(ii) C = 100 + 0·8 Y
(a) Determine the equilibrium level of income.
(b)Calculate the saving and consumption expenditure at equilibrium level of income.

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16 Calculate Net National Product at Market Price(NNP at MP) from data given: 6
S.N. Description (Rs.cr.)
i Mixed income of self-employed. 400
ii Compensation of employees 500
iii Private Final Consumption Expenditure 900
iv Net factor income from Abroad --( 20)
V Net Indirect Tax 100
Vi Consumption of fixed capital 100
Vii Net domestic capital formation 280
Viii Net exports --(30)
Ix Profits 350
X Rent 100
Xi Interest 150
Xii Government final consumption expenditure 450

OR
Explain the following concepts:
(a) Producer Goods
(b) Real flow
© Gross National Product at Factor cost /

SECTION ‘B’
18 A women oriented project to train the women about the latest agricultural techniques in Tamil 1
Nadu.
(a) Kudumbshree
(b) Self Help Groups
(c) TANWA
(d) None of these
19 The number of people actually employed at a particular time is called---------(Work force/ 1
Labour force)
20 Read the following statements - Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): In India, over the 40 years between1973-74 and 2013- 2014, while production
in all the three sectors has increased, it has increased most in tertiary sector
Reason (R): Tertiary sector is the only organized sector in the economy so the
government spends a lot of money for creating jobs in tertiary sector.
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.
21 Kamla devi owns an acre farm in which she and her elder son work together. The total production 1
is 20 quintals due to the effort of both. The next year, her younger son who used to work in
Mumbai came back home and he also started working in the field with them. But even after the

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hard work of the three people, the total production remained 20 quintals.
Which unemployment is being discussed in the above paragraph?
(a) Seasonal unemployment
(b) Educational unemployment
(c) Disguised unemployment
(d) voluntary unemployment
22 Name two prominent Indian economists who calculated Per Capita Income during the colonial 1
period.
ORDuring the British rule, which year is known as the ‘Year of the Great Divide’ in
India?
23 was the predecessor organisation to World Trade Organisation (WTO).
(Choose the correct alternative)
(A) International Bank for Reconstruction and Development (IBRD)
(B) International Monetary Fund (IMF)
(C) Reserve Bank of India (RBI)
(D) General Agreement on Tariffs and Trade (GATT)
Read the following news report and answer Question 24 and 25 on the basis of same:
Prime Minister Narendra Modi on Tuesday said his government's 'historic' farm reforms will create
opportunities to take farmers to entrepreneurship and added his regime is focused on increasing their
income.Modi was speaking after releasing the autobiography of former Union Minister Balasaheb Vikhe
Patil and renaming the Pravara Rural Education Society in Ahmednagar district after the Padma Bhushan
recipient, via video conferencing. Terming the farm reforms as historic, the prime minister said, "Today
opportunities are being created to take farming and farmers from the role of annadata (food provider) to
entrepreneurship."
Referring to high milk, sugar, and wheat production in Gujarat, Maharashtra, Haryana and Punjab, Modi
said such models of local enterprise will take the country forward. He said there was a time after
Independence when the country did not have sufficient food stock.
"The governments priority then was to increase food production. So the entire focus was on increasing
production. Farmers toiled hard to achieve the objective,"
Modi said."But the attention of the governments and policies, while being concerned about increasing
productivity. did not go towards profitability of farmers," he said. "People forgot about income for farmers.
But for the first time, this thinking has been changed," he said and listed steps the Centre has taken for the
welfare of farmers.
Modi listed measures taken by his government like implementing and increasing MSP, urea neem coating
and better crop insurance for "doing away worries of farmers".
He also spoke of direct transfer of Rs one lakh crore in the bank accounts of farmers under the Pradhan
Mantri Kisan Samman Nidhi Yojana."And there are no middlemen (involved). Not only this, there has
been unprecedented work on setting up cold chains, mega food parks and agro processing infrastructure,"
he said.
The Economics Times , October , 13, 2020
24 From the past now the focus of government policies in relation to food production has shifted 1
to ......................... ( Increasing production / increasing Productivity )
25 As per above passage......... (Profitability /Productivity) concern of the farmers is being 1
focused upon by the government for the first time.
26 The main aim of ‘Great Leap Forward’ (GLF) in China was to ensure rapid increase of
.(Choose the correct alternative)
(a) Agriculture (b) industries (c) services (d) exports
27 Maternal Mortality Rate is high in (China/Pakistan). 1

(Fill up the blank with correct alternative)
28 "In developed countries like USA salaries are higher than developing economies like India”. 3
Evaluate this using your knowledge of relationship between Human capital formation and
Economic development.

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29 What was the two-fold motive behind the systematic deindustrialization effected by the 3
British in pre-independent India?
OR
Mention three causes which were responsible for economic reforms.
30 ‘‘India, China and Pakistan have travelled more than seven decades of developmental path 4
with varied results.’’ Explain the given statement with valid arguments.
31 What is Rural development? Write its major issues. 4
OR
What is Organic farming and how does it promote Sustainable development?
32(a) State the names of six Indian Systems of Medicines (ISM) under AYUSH scheme of the 4
Government of India.
(b) Give the meaning of Jobless Growth.
33 Explain the condition of India’s Foreign Trade at the time of Independence. 6
OR
Explain the features of Industrial Policy Resolution 1956.
34 What is meant by sustainable development? Discuss briefly any three strategies of 6
sustainable development.

Thank You

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