UNIT TEST EXAMINATION- I
SESSION - 2021-22
SUBJECT - ECONOMICS
CLASS - XII
MM - 40 TIME - 1hr
30 minutes
GENERAL INSTRUCTIONS:
1. The question paper contains two parts-- A and B. Part A contains
questions from Macro Economics and Part B from Indian Economic
Development.
2. Answers to questions carrying 1 mark to be answered in one word or
one sentence.
3. All questions are compulsory
4. This document contains 4 printed pages.
PART A (MACRO ECONOMICS)
1. Which one of the following is an intermediate expenditure? (1)
a. Expenditure on purchase of furniture by a firm for its own use
b. Expenditure on maintenance by a firm
c. Expenditure on purchase of tractor by a firm for its own use
d. Machine bought by a household
2. Two components of money supply are _____ and ______. (1)
3. Which one of the following transactions is not included in national income?
(1)
a. Payment of interest by private firm
b. Payment of interest by banks on deposits
c. Interest paid by an individual on a car loan taken from a bank
d. None of the above
4. National income is the sum of the factor incomes accruing to : (1)
a. Nationals
b. Economic Territory
c. Residents
d. Both residents and non residents
5. Total deposits created by commercial banks are Rs 12000 crore and LRR is
25%. Calculate the amount of initial deposits (1)
a. Rs 6000 Cr
b. Rs 4000 Cr
c. Rs 5000 Cr
d. Rs 3000 Cr
6. Match the terms in column I with their correct definition in column II. (1)
Column I Column II
(a) Intermediate (i) Fixed assets of producers used in
goods production for several years
(b)Final goods (ii) Goods which satisfy current wants of
consumers directly.
(c) Consumption (iii) Goods which meant either for consumption
goods by consumers or investment by firms.
(d)Capital goods (iv) goods used as raw material or for resale in
the same year.
Read the following news report and answer Q7-10 on the basis of the
same:
The Monetary Policy Committee of the RBI kept interest rates on hold even as it
vowed to keep policy sufficiently loose to help survive the Corona virus battered
economy. Accepting a key demand of lenders and the corporate sector, the Central
bank cleared onetime restructuring of loan accounts to bail out stressed borrowers,
including personal, small and medium loans.
The details of the loan restructuring scheme - expected to kick in after the
moratorium on loan repayments ends 31st August- will be worked out by a
committee headed by former ICICI Chairman K V Kamath. The RBI also
continued to provide support on the liquidity front and opened a new target
window for small lenders.
The central bank kept the repo rate unchanged at 4% and reduced the reverse repo
rate to 3.35%.
7. Suppose you are the member of Monetary Policy Committee of the RBI.
You have suggested the ________(restriction / release) of the money supply
be ensured to help revive the coronavirus battered economy. (1)
8. "The Monetary Policy Committee of the RBI kept interest rates on hold ....."
Which of the following is highlighted above by the term 'interest rates'?(1)
A. Bank rate and repo rate
B. Bank rate and lending rate
C. Repo rate and reverse repo rate
D. All of the above
9. What does 'Repo rate ' mean? (1)
A. Rate at which banks borrow from the RBI for short term
B. Rate at which banks borrow from the RBI for long term
C. Rate at which banks deposit excess funds with the RBI
D. Rate at which banks lend funds to the public
10.Reduction in repo rate by RBI' is likely to _______ (increase/ decrease) the
demand for goods and services in the economy. (1)
11."Final goods include only those goods which are consumed by the
households." Defend or refute with valid reasons. (3)
OR
"Circular flow principle is based on the assumption that one's expenditure
will become other’s income." Explain the given statement.
12.Calculate the value of 'change in stock' from the following data : (3)
S.No Items Amount (in Rs cr)
(i) Sales 400
(ii) NVAfc 200
(iii) Subsidies 10
(iv) Change in stock ?
(v) Depreciation 40
(vi) Intermediate consumption 100
13. (a) Define money multiplier. (1)
(b) 'Credit creation is inversely related to the reserve deposit ratio'. Justify the
given statement, using hypothetical example. (3)
14.(a) Describe the 'Banker to the Government' function of the central bank.
(2)
(b) Describe the 'Bank of currency issue' function of the Central Bank. (2)
15.(a) "Real GDP is a better indicator of economic growth than nominal
GDP." Do you agree with the given statement? Support your answer with
the suitable numerical example. (3)
(b) Use the following information of an imaginary economy: (3)
Year 2016 2017 2018
Nominal GDP 6.5 8.4 9
GDP Deflator 100 140 125
(i) For which year is real GDP and nominal GDP same and why?
(ii) Calculate real GDP for the given years. Is there any year for which real GDP
falls?
OR
(a) Compute Net National Product at market price. (3)
S.No Items Rs (in crore)
1. Gross domestic fixed capital formation 350
2. Private Final Consumption Expenditure 8000
3. Government Final Consumption 3000
Expenditure
4. Value of output produced in the 150
economy
5. Current replacement cost of fixed 40
capital
6. Net Exports (-) 60
7. Net Factor income from abroad 80
8. Sales by all firms in the economy 100
(b) Explain any three precautions while calculating National Income by Income
method (3)
PART B (INDIAN ECONOMIC DEVELOPMENT)
16.India entered the _______ stage of demographic transition after the year
1921. ( Choose the correct alternative)
(1)
a. Forth b. Second. c. Third. d. First
17.Read the following statements Assertion (A) and Reason (R). Choose one
of the correct alternatives given below: (1)
Assertion (A) : India became an exporter of primary products and an importer of
finished consumer and capital goods produced in Britain
Reason (R) : restrictive policies of commodity production, trade and tariff pursued
by the colonial government adversely affected the structure, composition and
volume of India's foreign trade.
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.
18.State any one positive contribution made by the British in India. (1)
19.Indicate the volume and direction of foreign trade of India at the time of
independence. (3)
20.Comment upon any two salient features of occupational structure of India
at the time of independence. (4)
