CBSE Class 12 Economics Question Paper 2020 Set 58-5-2

Series : HMJ/5 SET – 2
 .
Code No. 58/5/2
 .    -  -
Roll No.    
Candidates must write the Code on
the title page of the answer-book.

 NOTE
(I)       -   (I) Please check that this question
 15   paper contains 15 printed pages.
(II) -          (II) Code number given on the right
  -  -    hand side of the question paper
should be written on the title page
of the answer-book by the
candidate.
(III)      -  34  (III) Please check that this question
  paper contains 34 questions.
(IV)         (IV) Please write down the Serial
,       Number of the question in the
answer-book before attempting
it.
(V)  -     15   (V) 15 minute time has been allotted
     -    to read this question paper. The
question paper will be distributed
 10.15     10.15  
at 10.15 a.m. From 10.15 a.m. to
10.30     -   10.30 a.m., the students will read
      -  the question paper only and will
     not write any answer on the
answer-book during this period.

 ()
ECONOMICS (Theory)
  : 3    : 80
Time allowed : 3 hours Maximum Marks : 80

.58/5/2. 326B 1 P.T.O.

  :
           
(i) -     –         
(ii)   1  10  18  27         1    
         
(iii)   11 – 12  28 – 29         3    
   60  80    
(iv)   13  15  30  32          4  
     80  100    
(v)   16 – 17  33 – 34         6    
   100  150    
(vi)                
 
(vii) -       , -     , - 
   , -       -      
               
(viii)  , ,            

 – 
( )
1.          _______      
(       ) 1

2.          ,   ______
(     )
()         
()         
()        
()         1

3.  ,        
“            ’ 1
.58/5/2. 2

General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) Question paper comprises two Sections – A and B. All questions are
compulsory.
(ii) Question number 1 – 10 and 18 – 27 are very short-answer questions
carrying 1 mark each. They are required to be answered in one word or
one sentence each.
(iii) Question number 11 – 12 and 28 – 29 are short-answer questions
carrying 3 marks each. Answers to them should not normally exceed
60 – 80 words each.
(iv) Question number 13 – 15 and 30 – 32 are also short-answer questions
carrying 4 marks each. Answers to them should not normally exceed
80 – 100 words each.
(v) Question number 16 – 17 and 33 – 34 are long answer questions
carrying 6 marks each. Answers to them should not normally exceed
100 – 150 words each.
(vi) Answer should be brief and to the point also the above word limit be
adhered to as far as possible.
(vii) There is no overall choice. However, an internal choice has been
provided in 2 questions of one mark, 2 questions of three marks,
2 questions of four marks and 2 questions of six marks. Only one of
the choices in such questions have to be attempted.
(viii) In addition to this, separate instructions are given with each section
and question, wherever necessary.

SECTION – A
(Macro-economics)
1. _______ deficit includes interest payment by the Government on the past
loans. (Fill up the blanks with correct answer). 1

2. To reduce credit availability in the economy, the Central Bank may ______.
(Choose the correct alternative)
(a) buy securities in the open market.
(b) sell securities in the open market.
(c) reduce reserve ratio.
(d) reduce repo rate. 1

3. State, whether the following statement is true or false :
‘Purchase of machinery by a producer is an intermediate good.’ 1

.58/5/2. 3 P.T.O.

4.              ? (    )
()         
()         
()          
()          1

5.      ‘ ’   ? (    )
()     
()    
()       
()      1

6.   ,             ________
   (       ) 1

7.  ,        
“       ” 1

8.      +    = _________.
(       ) 1

     (GDP) ` 840      120 ,  
   (GDP) ________  
(        )
() ` 700  () ` 900 
() ` 800  () ` 500  1

9.     (MPS) 0.25      ` 250  ,   
  ________   (    )
() ` 1,000  () ` 1,200 
() ` 500  () ` 3,500  1

.58/5/2. 4

4. In case of an underemployment equilibrium, which of the following
alternative is not true ? (Choose the correct alternative)
(a) Aggregate demand is equal to Aggregate supply.
(b) There exist excess production capacity in the economy.
(c) Resources are not fully and efficiently utilised.
(d) Resources are fully and efficiently utilised. 1

5. Which of the following is not a ‘factor payment’ ?
(Choose the correct alternative)
(a) Free uniform to defence personnel.
(b) Salaries to the Members of Parliament.
(c) Rent paid to the owner of a building.
(d) Scholarship given to the students. 1

6. Combined factor income, which can’t be separated into various factor
income components is known as ________.
(Fill up the blanks with correct answer). 1

7. State, whether the following statement is true or false :
‘All financial Institutions are banking institutions.’ 1

8. Net Domestic Fixed Capital Formation + Change in Stock = _________.
(Fill up the blank with correct answer) 1
OR
When Nominal Gross Domestic Product (GDP) is ` 840 crores and price
Index is 120, then the Real Gross Domestic Product (GDP) will be
________. (Fill up the blank with correct alternative)
(a) ` 700 crores (b) ` 900 crores
(c) ` 800 crores (d) ` 500 crores 1

9. If Marginal Propensity to Save (MPS) is 0.25 and initial change in
investment is ` 250 crores, then the final change in income would be
______. (Choose the correct alternative)
(a) ` 1,000 crores (b) ` 1,200 crores
(c) ` 500 crores (d) ` 3,500 crores 1

.58/5/2. 5 P.T.O.

10.          ?
()       (GDP) =    GDP    
()       (NNP) =    NNP
()       (GNP) =    GDP    
  
()       (NNP) =   1

        (GDP) ` 520    
  (GDP) ` 650  ,        1

11. ‘    ,        ’    
        3

 -           3

12.   ,       
..  (`  )
(i)    (10    ) 10
(ii)     5
(iii)  20
(iv)   () 2
(v)     (GST) 1 3

13.     ‘KT’      ?        
     

4
.58/5/2. 6

10. Which of the following statement is incorrect ?
(a) Gross Domestic Product (GDP) at Market price = GDP at factor cost
plus Net Indirect taxes.
(b) Net National product (NNP) at Market price = NNP at factor cost.
(c) Gross National Product (GNP) at Market price = GDP at Market
price Plus Net factor income from abroad.
(d) Net National Product (NNP) at factor cost = National Income. 1
OR
If the Real Gross Domestic Product (GDP) in an economy is ` 520 crores
and Nominal Gross Domestic Product (GDP) is ` 650 crores, calculate the
price Index. 1

11. ‘Subsidies to the producers should be treated as transfer payments.’
Defend or refute the given statement with valid reason. 3
OR
Explain circular flow of income in a two sector economy. 3

12. Calculate Net Value Added at factor cost from the following data :
Particulars (` in lakh)
(i) Durable producer goods (with a life span of 10 years) 10
(ii) Single use producer goods 5
(iii) Sales 20
(iv) Unsold Goods (Stock) 2
(v) Goods & Services Tax (GST) 1 3

13. In the given figure, what does the gap ‘KT’ represent ? State any two fiscal
measures to correct the situation.

4

.58/5/2. 7 P.T.O.

    
      ?        
       4

 ,      ‘  ’       4

14. “            ”     
      4

15.    “  ”      4

16            
(i)   = ` 100 
(ii) C = 50 + 0.50Y
()   
       2
()   
           2
()         2


          
()            3
()    (Ex-Ante Savings)      (Ex-Ante
Investment)    3

17. () ‘     (`)          
   ’             3
() ‘ ’  ‘   ’     3

.58/5/2. 8

FOR BLIND CANDIDATES

What is meant by deflationary gap ? State any two fiscal measures to
correct the situation of deflationary gap. 4
OR
Explain how the ‘Reverse Repo Rate’ helps in correcting excess demand. 4

14. ‘Taxation is an effective tool to reduce the inequalities of income.’
Justify the given statement with valid reasons. 4

15. Explain the ‘bank of note issue’ function of Central Bank. 4

16 Answer the following questions based on the data given below :
(i) Planned Investments = ` 100 crore.
(ii) C = 50 + 0.50 Y
(a) Determine the equilibrium level of income. 2
(b) Calculate the value of Savings at equilibrium level of National Income. 2
(c) Calculate the value of Investment Multiplier. 2
OR
Discuss the working of the adjustment mechanism in the following
situations :
(a) If Aggregate demand is greater than Aggregate supply. 3
(b) If Ex-Ante Investments are less than Ex-Ante Savings. 3

17. (a) ‘Recently Indian Rupee (`) has depreciated significantly. This has
lead to distress for Indian importers.’ Defend or refute the given
statement with valid reasons. 3
(b) Distinguish between ‘trade deficit’ and ‘current account deficit’. 3

.58/5/2. 9 P.T.O.

 – 
(   )

18. ‘’ (Quota)     1

19.        1991          ?
(     )
()  () 
()  ()  1

20. ______ (/)               
    (          ) 1

21.  ,        
“GATT    1923  48       ” 1

22.      ‘GLF’   ________   (    )
() Giant Leap Forward () Great Lead Forum
() Great Leap Forward () Giant Lead Forum 1

23. ‘ ’     ______      
(       ) 1

24.                  ?
(    )
()     ()    
()     ()     1

25.    ______ (/)     (        ) 1

.58/5/2. 10

SECTION – B
(Indian Economic Development)
18. Define “Quota’. 1

19. Which of the following countries initiated its process of Economic Reforms
in the year 1991. (Choose the correct alternative)
(a) Pakistan (b) India
(c) Russia (d) China 1

20. Greater proportion of women workers are found in ______ (urban/rural)
areas as a component of Indian work force.
(Choose the correct alternative) 1

21. State whether the following statement is true or false :
“GATT was established in 1923 with 48 member countries.” 1

22. ‘GLF’ with respect to the People’s Republic of China referred to as ______.
(Choose the correct alternative).
(a) Giant Leap Forward (b) Great Lead Forum
(c) Great Leap Forward (d) Giant Lead Forum 1

23. Policy of ‘Import Substitution’ was targeted to protect ______ industries.
(Fill up the blank with correct answer) 1

24. Which of the following is not used as a strategy for Sustainable
Development ? (Choose the correct alternative)
(a) Use of bio-gas (b) Use of solar power
(c) Use of thermal power (d) Use of hydel power 1

25. Maternal Mortality Rate is high in ________ (China/Pakistan).
(Fill up the blank with correct alternative) 1

.58/5/2. 11 P.T.O.

26.  ,        
“2018        180    ” 1

27.                  ,  
   ______ (/)       
(       ) 1

28.   ‘  ’        3



              3

29.                
      (  )
(2015)

 1.2% 929

 0.5% 941

     , 2015 3

30.                4



        ‘    ’     
     4

.58/5/2. 12

26. State whether the following statement is true or false :

“As per the Human Development Report, 2018, India was ranked at 180 th

position.” 1

27. If a construction site Manager hires two workers on daily wages basis,

such a situation is covered under ______ (formal/informal) sector.

(Fill up the blank with correct alternative) 1

28. Discuss briefly the concept of ‘Informalisation of workforce’ in India. 3

OR

State any three challenges facing rural development in India. 3

29. Compare and analyse the given data of India & China, with valid reasons.

Country Annual Growth rate Gender Ratio (Per

of population (2015) thousand males)

India 1.2% 929

China 0.5% 941

Source : World Development Indicators, 2015. 3

30. Discuss briefly any two salient features of India’s pre-independence

occupational structure. 4

OR

Discuss briefly, the rationale behind “equity with growth” as planning

objectives for Indian Economy. 4

.58/5/2. 13 P.T.O.

31. “               ”
      4


“                 4

32.                4

33.               
  6


() ‘          ’    -
                  
() “                 
 GDP  6%    ”
           3, 3

34. ()              3

()               3

___________

.58/5/2. 14

31. “Modernisation as a planning objective shows a dichotomy with
employment generation.” Justify the statement. 4
OR
State the two-fold motive for the systematic destabilisation of indigenous
Indian industries in the British era. 4

32. State and discuss any two problems faced by power sector in India. 4

33. Critically examine the results of Poverty Alleviation Programmes
implemented in India since Independence. 6
OR
(a) “Ujjawala Yojana has been a game changer for rural India.” State
any three conventional fuels being targeted under the Ujjawala
Yojana.
(b) “Economists believe that India should spend atleast 6% of its GDP on
Education for achieving desired results.”
Justify the statement with valid reasons. 3, 3

34. (a) Discuss the need for on-the-job training for a employee. 3
(b) Discuss the role played by horticulture in the direction of rural
development in India. 3
___________

.58/5/2. 15 P.T.O.

.58/5/2. 16