Class 12 PT II Question Paper 2023-24 Economics

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Question Paper based on NCERT Syllabus
CBSE Board Question Paper / KV Schools Question Paper
CLASS: XII MAX MARKS: 40
SUBJECT: ECONOMICS (UT – 2) Time : 90 Minutes
General Instructions:
i) Attempt all questions. ii) All questions are compulsory.
1 In a hypothetical economy, money supply is 10,000 crore there is no other currency circulating in the 1
economy other than bank deposits, providing the value of money multiplier 5 find the initial deposits in
bank
(a) 20000 crore (b) 5000 crore (c) 2000 crore (d) 50000 crore
2 The Government of India annual spends 20 crores of money on maintenance This would be categorized as 1
(a) Revenue nature income (b) Capital nature expenditure
(c) Revenue nature expenditure (d) Capital nature income
3 Which one of the following statements is correct? 1
a) NNPMP = NDPFC - Net Factor Income From . abroad b) GDPFC = GDPMP +Net indirect taxes.
c) NNPFC = NDPFC + Net Factor Income From - . d) GDPMP = NDPFC + consumption of
abroad fixed capital.

4 Define plan expenditure. 1

5 Identify the correct function of central bank? 1
(a) Carryout banking operations of commercial
(b) Agent of commercial banks
(c) Banker's supervisor
(d) Deals directly with public
6 If Real GDP is ₹ 800 crore and Nominal ₹ 1600 GDP , Calculate GDP deflator ( Price Index) 1
7 Mrs. Shweta, an economist, was explaining the concept of 'minimum percentage of net demand and time 1
liabilities to be kept by commercial banks with the central bank'.
From the following, choose the correct alternative which specifies towards the concept explained by her?
(a) Cash Reserve Ratio (b) Repo Rate (c) Bank Rate (d) Statutory Liquidity Ratio

8 Read the following statements carefully: 1
Statement I: Domestic Income is a territorial concept.
Statement II: Domestic Income includes the value of final goods and services produced in the entire
world.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement I is true and statement II is false.
(B) Statement I is false and statement II is true.

(C) Both statements I and II are true.
(D) Both statements I and II are false.

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9 Statement 1: Money received from the sale of second-hand cars will be considered while estimating 1
national income.
Statement 2: Their value is already included and it does not contribute to the current flow of goods and
services.
Choose the correct alternative from the following:
(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.
10 True or False 1
Deficit budget is desired during period of inflation
11 Distinguish between intermediate goods and final goods 2
OR
Distinguish between Revenue Expendature and capital expendature
12 Explain the process of money creation function of commercial banks 2
13 (A)Calculate the (A) Revenue deficit (B) Fiscal deficit from the following data : 3+3
S No. Particulars Amount (in ₹ crore)
i Tax revenue 1,000
ii Revenue Expendature 3821
iii Non Tax Revenue 2,000
iv Recovery of loans 135
v Capital expendature 574
vi Retained Earnings 300
vii Disinvestment 100
viii Net Factor Income from Abroad (-) 120
ix Mixed Income of Self Employed 1400
x Interest payments 1013
(B) Briefly discuss the function of central bank.

ECO/GH 23-24
.
Indian economic development

Read the following hypothetical text and answer the given questions: -
The economy of India had undergone significant policy shifts in the beginning of the 1990s. This new
model of economic reforms is commonly known as the LPG or Liberalisation. Privatisation and
Globalisation model. The primary objective of this model was to make the economy of India the fastest
developing economy in the globe with capabilities that help it match up with the biggest economies of the

world. The concepts of liberalization, globalization and privatization are actually closely related to one
another. This LPG phenomenon was first initiated in the Indian Economy in 1990 when the Indian
Economy experienced a severe crisis. At that time the government decided to introduce the New
Industrial Policy (NIP) in 1991 to start liberalizing the Indian economy. These economic reforms had
influenced the overall economic growth of the country in a significant manner.

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Liberalisation refers to the slackening of government regulations. Promoting FDI (Foreign Direct
Investment) by means of raising the highest limit on the contribution of international capital in business
ventures or partnerships to 51% Privatization is the transfer of control of ownership of economic
resources from the public sector to the private sector. It means a decline in the role of the public sector as
there is a shift in the property rights from the state to private ownership. The public sector had been
experiencing various problems, since planning, such as low efficiency and profitability, mounting losses,
excessive political interference, lack of autonomy, labour problems and delays in completion of projects.
Often privatisation of state-owned monopolies occurs alongside deregulation-ie. policies to allow more
firms to enter the industry and increase the competitiveness of the market. It is this increase in
competition that can be the greatest spur to improvements in efficiency. Globalization essentially means
integration of the national economy with the world economy
1990 के दशक की शरु
ु आत में भारत की अर्थव्यवस्था में महत्वपर्ण
ू नीतिगत बदलाव हुए थे। आर्थिक सध
ु ारों के इस
नए मॉडल को आमतौर पर एलपीजी या उदारीकरण के नाम से जाना जाता है । निजीकरण और वैश्वीकरण मॉडल.
इस मॉडल का प्राथमिक उद्दे श्य भारत की अर्थव्यवस्था को दनि
ु या की सबसे तेजी से विकासशील अर्थव्यवस्था
बनाना था, जिसमें ऐसी क्षमताएं हों जो इसे दनि
ु या की सबसे बड़ी अर्थव्यवस्थाओं के साथ बराबरी करने में मदद
करें । उदारीकरण, वैश्वीकरण और निजीकरण की अवधारणाएँ वास्तव में एक दस
ू रे से निकटता से संबंधित हैं। यह
एलपीजी घटना भारतीय अर्थव्यवस्था में पहली बार 1990 में शरू
ु हुई थी जब भारतीय अर्थव्यवस्था ने एक गंभीर
संकट का अनभ
ु व किया था। उस समय सरकार ने भारतीय अर्थव्यवस्था का उदारीकरण शरू
ु करने के लिए 1991 में
नई औद्योगिक नीति (एनआईपी) शरू
ु करने का निर्णय लिया। इन आर्थिक सध
ु ारों ने दे श की समग्र आर्थिक वद्
ृ धि
को महत्वपर्ण
ू तरीके से प्रभावित किया था। उदारीकरण का तात्पर्य सरकारी नियमों को ढीला करना है । व्यावसायिक
उद्यमों या साझेदारियों में अंतरराष्ट्रीय पंज
ू ी के योगदान की उच्चतम सीमा को 51% तक बढ़ाकर एफडीआई (प्रत्यक्ष
विदे शी निवेश) को बढ़ावा दे ना, निजीकरण आर्थिक संसाधनों के स्वामित्व के नियंत्रण को सार्वजनिक क्षेत्र से निजी
क्षेत्र में स्थानांतरित करना है । इसका मतलब सार्वजनिक क्षेत्र की भमि
ू का में गिरावट है क्योंकि संपत्ति के अधिकार
राज्य से निजी स्वामित्व में स्थानांतरित हो रहे हैं। योजना बनाने के बाद से सार्वजनिक क्षेत्र विभिन्न समस्याओं
का सामना कर रहा था, जैसे कम दक्षता और लाभप्रदता, बढ़ता घाटा, अत्यधिक राजनीतिक हस्तक्षेप, स्वायत्तता की
कमी, श्रमिक समस्याएं और परियोजनाओं के परू ा होने में दे री। अक्सर राज्य के स्वामित्व वाली एकाधिकार का
निजीकरण डीरे ग्यल
ू ेशन-यानी के साथ होता है । अधिक कंपनियों को उद्योग में प्रवेश करने और बाजार की
ु ति दे ने वाली नीतियां। प्रतिस्पर्धा में यह वद्
प्रतिस्पर्धात्मकता बढ़ाने की अनम ृ धि ही दक्षता में सध
ु ार के लिए सबसे
बड़ा प्रोत्साहन हो सकती है । वैश्वीकरण का मल
ू तः अर्थ राष्ट्रीय अर्थव्यवस्था का विश्व अर्थव्यवस्था के साथ
एकीकरण है ।
Find out answer from 14 to 18 :- from above passage
14 Liberalization involves and greater autonomy of private investment 1
(a) Greater control of government (b) Regulating reform
(c) Deregulation and reduction of government control (d) Licensing reforms
15 . Read the following statements carefully and choose the correct alternatives 1
Statement 1- To make the Indian economy the fastest growing economy the new model of economic
reforms commonly known as LPG was adopted. development and social integration.
Statement 2-In 1991, to undertake industrial LPG reforms were introduced.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and Statement 1 is false
16. Read the following statements - Assertion (A) and Reason (R): 1

Assertion (A): The purpose of privatization was mainly to improve financial discipline
and facilitate modernization.
Reason (R): As the public sector enterprises had been experiencing huge losses dur to inefficient working
increasing corruption, excessive political interference and many more.
From the given alternatives choose the correct one: Alternatives:

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(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.
17. In the light of the given text and common knowledge, identify the incorrect statement: 1
(a) The foreign direct investment policy was liberalized due to this reason FDI inflow increased.
(b) Lack of competition in the market was the main reason for the low industrial development in India.
(c) The new policy abolished industrial licensing for all projects, excepts for a short list of industries.
(d) Under Privatization, there is decline in the role of private sector in industrial development of the
country.
18. Read the following statements carefully and choose the correct alternatives given below: 1
Statement 1:- Liberalisation involves deregulation and reduction of government controls and greater
autonomy of private investment, to make economy more competitive.
Statement 2- Globalisation refers to protecting national economy from the foreign competition through
imposing trade barriers. Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and Statement 1 is false.
19 Read the following statements - Assertion (A) and Reason (R): Assertion (A): The crisis, in turn paved the 1
way for the liberalization of the indian economy.
:-
Reason (R): These economic reforms has influenced the overall performance of the country in a
significant manner. From the given alternatives choose the correct one:
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.
20:- According to Industrial Policy Resolution 1956, the industries were reclassified into categories. 1
(a) 17 (b) 4 (c) 17 (d) 3
21:- Read the following statements carefully and choose the correct alternatives given below. 1
Statement 1-WTO agreements cover trade in goods as well as services, to facilitates international trade.
Statement 2-WTO was founded in 1995 as the successor organization to the GATT.
: Alternatives:
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and Statement 1 is false.
22 True or False 1
First five year plan was inspired by united states of America
23 What is LPG policy 1
24 What were the main causes of India’s agriculture stagnation during the colonial period ? 3
25 Were there any positive contribution made by the British rule India ? Discuss 3

26 Discuss the various reasons for making economic reforms 1991 4
or
Discuss the economic reforms in India in the light of social justice and welfare

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