PSEB 12th Sample Paper 2024 Economics

SAMPLE PAPER
Punjab Board
2024

Model Question Paper
2023-24
Economics (Humanities/Commerce)
Time 3Hrs MM:80
General Instructions:
1. There is total 5 questions in this question paper.
2. All questions are compulsory.
3. Sample calculator can be used.
Q.1. There are 20 sub parts of this question. Attempt all questions. Each question will
carry one mark. 20*1=20
i. Which branch of economics deals with the working of whole of the economy?
(a) Micro economics (b)Macro-Economics
(c) Economic Science (d) Economics of Money and Banking
ii. In the production of sugar, which type of product sugarcane is:
(a) Final good (b) Capital good
(c) Intermediate good (d) Consumer Good
iii. Read the following statement -Assertion (A) and Reason (R). Choose one of the
correct alternatives below:
Assertion (A): Ex-post Investments represent planned Investments; whereas ex-ante
Investments represent actual level of investments.
Reason (R): At equilibrium level, Ex-ante Savings and Ex-ante Investments are
always equal.
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. (iv)
iv. If we are in a system, where we do not have money with ourself and we want to exchange
our goods with the goods possessed by others, then we have to take the help of:
(a) Monetary system (b) Banking system
(c) Barter system (d) Transfer system

v. ………………. is an institution that accept deposits for lending purposes. (Reserve
Bank of India/Commercial Banks)
vi. If a person is ready to work, but he does not get work then this situation is called:
(a) Frictional unemployment (b) Structural unemployment
(c) Involuntary unemployment (d) None of these
vii. Which of the following is not a fiscal measure to correct the problems of deficient
demand and excess demand?
(a) Government Expenditure (b) Government Revenue
(c) Foreign policy (d) Deficit financing
viii. Read the following statements carefully:
Statement 1: Export of financial services by India will be recorded on credit side of current
account.
Statement2: Foreign Direct Investments in India will be recorded on credit side of capital
account.
In the light of the given statements, choose the correct alternative:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false
ix. The difference in the value of imports and exports of material goods is called balance of
trade. (True/False)
x. Which of the following features were not present in the Indian economy when India
attained independence?
(a) Underdeveloped Economy (b) Stagnant Economy
(c) Feudal Economy (d) Depreciated Economy
xi. NITI Aayog followed Top to Bottom Approach. (True/False)
xii. Match the correct with the following statements.
Concepts Year
(a) Green Revolution (i) 1948
(b) New Agricultural Policy (ii) 1956
(c) First Industrial Policy (iii) 1966
(d) Second Industrial Policy (iv) 2000
(a) (b) (c) (d)
(a) i ii iv iii
(b) ii i iv iii

(c) iii iv i ii
(d) ii iii iv i
xiii. In the new economic policy of 1991, which of the following measure was not adopted
by the Government of India?
(a) Reduction in government control over the economy
(b) Reduction in number of licenses taken by the private entrepreneurs
(c) Reduction in foreign direct investment limit in the economy
(d) Reduction in the number of enterprises under the government sector
xiv. Who among the following are included in rural poor?
(a) Landless and marginal farmers (b) Agricultural Labourers
(c) Rural artisans (d) All of these
xv. ………………. is an institutional source of credit. (Regional Rural Banks/Money
Lenders)
xvi. Read the following statements carefully.
Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and
practical experiences.
Statement 2: On-the-job trainings update the employees, with the latest changes in their work
field.
In the light of the given statements, choose the correct alternative:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false
xvii. Read the following statement -Assertion (A) and Reason (R). Choose one of the
correct alternatives given below:
Assertion (A): Unemployment and poverty are inseparable twins.
Reason(R): Unemployment is the root cause of all socio-economic evils.
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.

xviii. Which of the following is an important conventional source of energy in India?
(a) Petroleum (b) Coal
(c) Natural gas (d) All of these
xix. Match the correct with the following statements.
Type of correlation Explanation of correlation
(a) Positive correlation (i) Change in two variables in opposite direction
(b) Negative correlation (ii) when ratio between the variables is constant
(c) Simple correlation (iii) Change in two variables in the same direction
(d) Linear correlation (iv) Analysis of correlation between two variables
(a) (b) (c) (d)
a) i ii iii iv
b) iv iii ii i
c) iii i iv ii
d) iv i iii ii
xx. Out of the following which is not a type of index number?
(a) Cost of living index (b) Retail price index
(c)Wholesale price index (d) Normal index number
Q. 2. Very short answer type questions. Answer any 10 questions. Answer to each
question should be given in 25-30 words.
i. Describe the difference between the capital goods and producer goods.
ii. Why consumption expenditure is not zero, when the level of income is zero?
iii. Find the value of primary deficit from the following data:
Item Amount (in crore Rs)
(a) Revenue Deficit 500
(b) Fiscal Deficit 800
(c) Interest Payments 80
iv. Why surplus on capital account of balance of payment is not a good sign for an
economy?
v. NITI Aayog has many objectives to fulfill. Write any two objectives of it.
vi. What is the difference between liberalization and lassiez faire policy?
vii. Write any two characteristics of the policy of MANREGA of the Government of
India.
viii. How human capital formation is the key factor for the development of the economy?

ix. Write any two properties of Karl Pearson’s coefficient of correlation.
x. Write any two difficulties in the construction of index numbers.
xi. Write down various degrees of coefficient of correlation.
xii. If the value of N= 10 and the value of Σd2 is 20, then find out the value of coefficient
of correlation with the help of spearman’s method.
Q. 3 (i) Source Based Question. Read the following Paragraph and answer the questions
given below; 6*1=6
Education is the qualitative process of imparting knowledge, enhancing skills and cultivating
values in human beings. Against the common belief, it is much more than the ability to read,
write or understand. It is an instrument of initiating a paradigm transformation in the life of
human beings. Since independence, there has been appreciable improvement in the spread of
education in India. This can be analysed on the basis of literacy rate in the country. In 1951,
the literacy rate in India was just 18.3% which, as per Census 2011, improved to 74.0 4% in
2011. In 2011, male literacy rate was 82.14% and female literacy rate was 65.46 %. Among
the states, the highest literacy rate in 2011 was for Kerala at 93.9%, whereas it was the lowest
for Bihar at 63.8%. As per Census 2011, literacy rate in Punjab in 2011 was 76.7 %. Male
literacy rate and female literacy rate for the state were respectively at 81.5% and 71.3%.
(i) What is education?
(ii) What is meant by literacy rate?
(iii) What was the literacy rate in 1951 in India?
(iv) Which state have the highest literacy rate in 2011 in India?
(v) What was the literacy rate in Punjab in 2011?
(vi) What was the percentage increase in literacy rate of India between 1951 to 2011?
Q. 3 (ii) Source Based Question. Read the following Paragraph and answer the
questions given below; 6*1 = 6
An important lesson that the COVID-19 pandemic has taught the policymakers in India is to
provide greater impetus to sectors that make better allocation of resources and reduce income
inequalities. COVID-19 has also taught a lesson that in crisis the population returns to rely on
the farm sector. India has a large arable land, but the farm sector has its own structural
problems. However, directly or indirectly, 50 percent of the households still depend on the
farm sector. Greater support to MSMEs, higher public expenditure on health and education
and making the labour force a formal employee in the economy are some of the milestones
that the nation has to achieve. One of the imminent reforms to be done in the country is
labour reforms. Labour laws are outmoded in India, and some of these dates back to the last

century. India’s complex labour laws have been blamed for keeping manufacturing
businesses small and hindering job creation. Industry hires labour informally because of
complex laws and that is responsible for low wages.
1. What COVID-19 has taught to us?
2. Which types of structural problems are faced by the agricultural sector?
3. “It is necessary to create employment in the formal sector rather than in the informal
sector.’’ Defend or refute the given statement with valid argument.
4. Hired labour comes in …………………. (Informal organisation / formal organisation)
5. Why labour reforms are necessary in India?
6. What do you mean by MSMEs?
Q4. Short Answer Type questions. Attempt 5 questions. Answer to questions can be in
60-70 words. 4*4=16
(i) Describe the circular flow of income in two sector model.
or
In an economy national income is Rs 40000 crores and marginal propensity to
consume is 0.50. If an investment worth of Rs 1200 crores is made, how much will
the total national income be?
(ii) Explain any four functions of central bank.
or
Explain the situation of deficient demand in an economy with the help of a diagram.
(iii) How can you say that Indian economy was a stagnant economy in 1947?
or
Write four main features of industrial policy, 1991.
(iv) Suggest any four remedies to solve the problems of rural credit in India.
Or
What do you mean by pollution? which are various types of it?
Q5. Long Answer Type questions. Attempt 2 questions. Answer to questions can be in
100-150 words. 2*6=12
(i) From the following data, find out national income and net domestic income
(Items) Rupees (in crore)
(i) Wages 65200
(ii) Profit 45000
(iii) Rent 30500
(iv) Interest 40000

(v) mixed income 30000
(vi) Net factor income from abroad 18300
or
What is meant by Flexible Exchange Rate? discuss its merits and demerits in detail.
(ii) Discuss any six problems of Indian agriculture.
Or
Describe any six causes of unemployment in India.