Class 12 Sample Paper Economics (Half Yearly)

SAMPLE
PAPER
Half Yearly Examination

Prepared For
NCERT BASED SYLLABUS
Applicable For
CBSE BOARD AND STATE BOARD USING NCERT

WWW.

HALF YEARLY EXAMINATION
SAMPLE QUESTION PAPER
Class - XII Subject – Economics
Time – 3 Hours Maximum Marks- 80

General instructions:
i) All question in both section are compulsory.
ii) Question no. 1-10 and 18-27 are multiple choice questions carrying 1 marks each.
iii) Question no. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answer to them should
normally not exceed 60 words each.
iv) Question no.13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answer to them
should normally not exceed 70 words each.
v) Question no. 16-17 and 33- 34 are long-answer questions carrying 6 marks each. Answer to them should
normally not exceed 100 words each.
vi) Answer should be brief and to the point and the above word limits should be adhered to as far as possible.

SECTION -A
1. Which of the following is not a ‘factor payment’? [1]
a) Free uniform to defence personnel
b) Salaries to member of parliament
c) Rent paid to the owner of a building
d) Scholarship given to students
2. If GVAmp is Rs. 7000 crores, Intermediate consumption is Rs. 3000 and the ratio of sales to change in
stock is 4:1, then sales will be:- [1]
a) 6000
b) 3200
c) 10000
d) 8000
3. When autonomous consumption =75, MPC= 0.6 and Y=1500, consumption will be: [1]
a) 900
b) 975
c) 1050
d) none of these
4. Which of the following statements is correct about money supply? [1]
a) It includes cash reserve of banks
b) It is flow variable
c) It refers to stock of money held by public at a point of time
d) It refers to stock of money held by public over a period of time
5. If the total deposits created by commercial banks is Rs. 12000 crores and legal reserve requirement is
25%, then the amount of initial deposits will be:- [1]
a) 4000

b) 3000
c) 1000
d) 10000

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6. Read the following statement—Assertion (A) and Reason (R). choose one of the correct
alternatives given below: [1]
Assertion (A): money multilplier is the process by which commercial banks create credit.
Reason (R ) : money creation by commercial banks raises the national income.
Alternatives
a) Both Assertion (A) and reason (R ) are true and reason R is the correct explanation of A
b) Both Assertion (A) and reason (R ) are true and reason R is not the correct explanation of A
c) Assertion (A) is true and Reason (R) is false
d) Assertion (A) is false and Reason (R) is true
7. Lockdown compounded the situation of _____________(voluntary/involuntary) unemployment. [1]
8. What is linear consumption function? [1]
OR
When slope of consumption curve remain constant the shape of APC will be
a) Increasing
b) decreasing
c) constant
d) none
9. Fiscal deficit is an estimate of _____________(borrowing/losses incurred) by the government. [1]
10. Tax receipts are revenue receipts because: [1]
a) These do not lead to decreases in assets of the government.
b) These creates additional liabilities of the government.
c) These are unilateral payments
d) These may be direct or indirect
11. Explain the relation between credit creation and cash reserve ratio using an example. [3]
OR
Explain the role of ‘reverse repo rate’ to control credit.
12. “Fiscal deficit is necessarily inflationary in nature”. Do you agree? Support your answer with valid
reason. [3]
13. Keynesian theory tells us that inflationary gap emerges only after full employment is reached. But, in
India we often find high rate of inflation along with high rate of unemployment. How do you explain
this paradox?
OR [4]
What is effective demand principle in Keynesian theory of employment? Discuss using a schedule and
diagram.
14. How will following treated while estimating national income of India? Give reasons. [4]
a) Value of bonus shares received by shareholders of a company.
b) Interest received on loan given to a foreign company in India.
c) Capital gains to Indian residents from sale of shares of a foreign company.
d) Payment of interest on loan taken by an employee from the employer.
15. Calculate Revenue deficit, Fiscal deficit and primary deficit from the following:- [4]
S.No. Particulars Amount(in crores)
i Tax revenue 1000
ii Revenue expenditure 3821
iii Non-tax revenue 2000

iv Recovery of loans 135
v Capital expenditure 574
vi diinvestment 100
vii Interest payment 1013
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16. Outline the steps required to be taken in deriving consumption curve from saving curve. Use diagram.
Also explain in brief the adjustment mechanism when ex-ante Aggregate Demand is less then Aggregate
supply. [6]
17. Calculate (a) GDPmp by income method, and (b) national income by expenditure method:
[6]
items Value
Compensation of employees 240
Exports 50
Mixed income 280
Imports 60
Interest on national debt 10
Private final consumption expenditure 510
Gross fixed capital formation 130
Consumption of fixed capital 80
Subsidies 20
Government final consumption expenditure 70
Inventory investment 40
Indirect tax 90
Net factor income from ROW (-)20
Rent, interest and profit 100
OR
Given the following data, calculate the values of Gross Domestic Capital formation and
Operating Surplus.

S.NO. PARTICULARS AMOUNT(in crores)
1 National Income 22100
2 Wages and Salaries 12,000
3. Private Final Consumption expenditure 7200
4 Net Indirect Taxes 700
5 Gross Domestic Capital formation ?
6. depreciation 500
7. Government final consumption expenditure 6100
8 Mixed income self employed 4800
9 Operating surplus ?
10. Net exports 3400
11 Rent 1200
12 Net factor income from abroad (-) 150

SECTION B
18. India entered the _________ Stage of Demographic transition after 1921. [1]
a) Fourth
b) Second
c) First
d) Third

19. Suez canal was opened for transport in: [1]
a) 1850
b) 1853
c) 1869
d) 1901
3

20. What is meant by modernization in the planning objective? [1]
OR
What was the primary objective of land reforms in India?
21. Read the following statements—Assertion (A) and Reason (R). choose one of the correct
alternatives given below: [1]
Assertion (A):Even after Industrial Development took kick start after independence, India was still the
net exporter of primary products.
Reason (R ) : Public Sector was insufficient and corrupt in the process of industrial development.
Alternatives
a) Both Assertion (A) and reason (R ) are true and reason R is the correct explanation of A
b) Both Assertion (A) and reason (R ) are true and reason R is not the correct explanation of A
c) Assertion (A) is true and Reason (R) is false
d) Assertion (A) is false and Reason (R) is true
22. Read the following statements—Assertion (A) and Reason (R). choose one of the correct
alternatives given below: [1]
Assertion (A): With New economic policy 1991, growth process in India was not inclusive.
Reason (R ) : There has been limited growth in agriculture and industrial sector of India since
independence.
Alternatives
a) Both Assertion (A) and reason (R ) are true and reason R is the correct explanation of A
b) Both Assertion (A) and reason (R ) are true and reason R is not the correct explanation of A
c) Assertion (A) is true and Reason (R) is false
d) Assertion (A) is false and Reason (R) is true
23. Which of the following is not an advantage of GST? [1]
a) Development of a common national market
b) Boost of foreign investment
c) Expansion of tax base
d) Differences in prices throughout the country
24. In the year ____________, the Indian Government made education free and compulsory for all children
between 6-14 years. [1]
a) 2001
b) 2009
c) 2003
d) 2007
25. Define Human Capital formation. [1]
26. Which is one of the apex body to take care of the Rural financing system of country. [1]
a) RBI
b) NABARD
c) ICICI
d) IDBI
27. Which of the following is not an advantage of organic farming? [1]
a) Cheap inputs
b) Attractive returns on investment

c) Greater possibilities for Imports
d) High nutritional value

4

28. Give a quantitative appraisal of India’s demographic profile during the colonial period. [3]
OR
The period of British Rule has been called as an economic drain despite a favorable balance of trade.
Why?
29. Why direct participation of state was considered essential in Industrial development process in period
1950-1990. What policy measures adopted by the Government for rapid Industrial development. [3]
30. Establish the need for migration and on-job training for human capital formation. [4]
31. What do you mean by agriculture marketing? Discuss the various measures taken by the government to
improve agriculture marketing. [4]
OR
How does organic farming promotes sustainable development? Identify the limitations of organic
farming.
32. Explain the financial sector reforms introduced under the policy of liberalisation. [4]
33. “All that glitters is not Gold”. There is a negative side to the story of New economic policy as well.
Justify the given statement by giving arguments in support of your answer. [6]
34. Discuss the need for rural credit. Explain the steps taken by the government in developing the rural
credit. What are its limitations. [6]
OR
Human capital formation is a process which gets affected by presence of various problems. Discuss
problems related to future prospects of human capital formation.

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