KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION

SAMPLE QUESTION PAPER 1 (2023-2024)

TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO. QUESTIONS MARKS
1 At the income level of Rs. 5000 crores, total savings are Rs.1000 crores. Calculate 1
average propensity to consume (APC):
(a) 0.1
(b) 0.2
I 0.8
(d) None of the above
2 The difference between GDP at market price and GDP at factor cost is:- 1
(a) Net indirect taxes
(b) Net factor income from abroad
I Depreciation
(d) None of these
3 Unilateral transfers are included in- 1
(a) Capital Account of BOP
(b) Current Account of BOP
I Foreign Account of BOP
(d)None of these
OR
Define flexible exchange rate.
4 Full employment implies absence of --------------- 1
(a) Unemployment
(b) Voluntary unemployment
I Involuntary unemployment
(d) None of these
5 Which of the following is a qualitative instrument of credit control? 1
(a) Bank rate
(b) Repo rate
I Open market operation
(d) Margin requirements
6 If consumption function in an economy is given as: C= 40 + 0.6Y, then MPS is: 1
 (a)1
I 0.4
(b) 0.6
(d) None of these
7 Find the true statement from the following- 1
(a) There is an inverse relation between foreign exchange rate and supply for foreign
exchange.
(b) An American purchases the goods and services from India creates demand of
foreign exchange.
I An Indian firm to purchase the goods and services from America creates demand of
foreign exchange.
(d) All statements are true.
8 Which one of these is a revenue expenditure: 1
(a) Purchase of shares
(b) Loans advanced
I Subsidies
(d) Expenditure on acquisition of land
9 Define money supply. 1
10 Define Capital receipts. 1
11 How will the following factor income be included in domestic factor income of India? 3
Give reasons for your answer.
1. Compensation of employees to the residents of Japan working in Indian embassy in
Japan.
2. Rent received by an Indian resident from Russian embassy in India.
3. Profits earned by a branch of state bank of India in England.

12 Explain the steps in deriving saving curve from a consumption curve. Use diagram. 3
13 Write two differences between- 4
1. Current Account of BOP and capital account of BOP
2. Balance of Trade and Balance of Payment
14 Explain in brief the function of central bank- 4
1. Banker’s Bank
2. Issuing Authority of currency and notes
15 Giving reasons, categorize the following into revenue expenditure & capital 4
expenditure.
1. Subsidies
2. Grants given to state governments
3. Repayment of loans
4. Salary Payment
OR
Tax rates on higher income group have been increased. Explain the economic value it
reflects.
16 From the following data, calculate Net National Product at Market Price (NNPmp) by 6
–
(i) Income method and (ii) Expenditure method:
Items Rs. (In Crores)
i. Mixed income of self- employed persons 400
ii. Compensation of employees 500
iii. Private final consumption expenditure 900
iv. Net factor income from abroad (-) 20
 v. Net indirect taxes 100
vi. Consumption of fixed capital 100
vii. Net domestic capital formation 280
viii. Net exports (-)30
ix. Profits 350
x. Rent 100
xi. Interest 150
xii. Government final consumption expenditure 450
17 Explain the concept of deflationary gap (deficient demand). How it can be controlled 6
by government spending and taxation policy? Use diagram.
OR
In an economy S = -100 + 0.6Y is the saving function, where S is saving and Y is
national income. If investment expenditure is 1100. Calculate
1. Equilibrium level of national income.
2. Consumption expenditure at equilibrium level of national income.
SECTION B
18 What do you mean by Great Leap Forward 1
19 In which year was India’s first Five year plan launched? 1
20 What percent of GDP was recommended by Education Commission (1964-66) to be 1
spent on education sector?
(a)6%
(b)5%
(c)3%
(d)4%
21 What is not a function of an environment? 1
(a) It supplies resources
(b) It assimilates waste
(c) It sustains life by providing genetic and bio diversity
(d) It is cause of global warming.
22 Reforms in --------------------- were introduced in 1978. (India/China/Pakistan) 1
23 When was the first population data collected through a census in British India 1
(a)1901
(b)1871
(c)1881
(d)1891
24 KUTUMBSHREE is a women oriented community based poverty reduction programme 1
being implemented in which state?
(a) Rajasthan
(b) Tamilnadu
(c) Kerala
(d) Andhra Pradesh
25 Which of the institutional source of credit? 1
(a) Landlords
(b) Bank
(c) Money lenders
(d) Village traders
26 Reforms have not been able to benefit agriculture due to which of the following reason 1
(a) Fall in public investment in agriculture infrastructure
(b) Removal of fertiliser subsidy
(c) Removal of minimum support price
(d) All of the above
27 Read the following statement – Assertion (A) and Reason (R). Choose one of the correct 1
alternative given below:
Assertion (A): Higher employment among women in rural areas (compared with urban
area) only points to widespread rural poverty in India.
Reason (R): Poverty forces women to avoid education and find opportunities of
employment in the rural areas.
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 and Reason (R) are false.
(d) Assertion (A) is false and Reason (R) are true.
OR
Read the following statement – Assertion (A) and Reason (R). Choose one of the correct
alternative given below:
Assertion (A): Higher employment among women in rural areas (compared to urban
areas) suggests higher rural wage rate in India.
Reason (R): The bulk of female workers in rural areas are engaged in low wage and less
productive job just to make a living for their famlies.
(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 and Reason (R) are false.
(d) Assertion (A) is false and Reason (R) are true.
28 Rita is a housewife. Besides taking care of household chores, she works in the cloth shop 3
which is owned and operated by her husband. Can she be considered a worker? Why?
29 What is a green revolution? Why was it implemented and how did it benefit the farmers? 3
30 State the meaning of import substitution. Explain how import substitution can protect the 4
domestic industries.
31 Read carefully the given paragraph and write the answer of following questions:- 2+2
Statistical Office (Previously it was known as National Sample Survey Organisation)
defines unemployment as a situation in which all those who, owing to lack of work, are
not working but either seek work through employment exchanges, intermediaries, friends
or relatives or by making applications to prospective employers or express their
willingness or availability for work under the prevailing condition of work and
remunerations. Suppose a farmer has four acres of land and he actually needs only two
workers and himself to carry out various operations on his farm in a year, but if he
employs five workers and his family members such as his wife and children, this
situation is known as disguised unemployment. One study conducted in the late 1950s
showed about one-third of agriculture workers in India as disguisedly unemployed.
(i) What is unemployment as per NSSO?
(ii) Explain disguised unemployment.
32 Though public sector is very essential for industries, many public sector undertaking 4
incur huge losses and are a drain on the economy’s resources. Discuss usefulness of
public sector undertaking in the light of this fact.
33 What do you mean by rural development? Bring out the key issues in rural development. 6
34 Mention the salient demographic indicators of China, Pakistan and India.OR 6
What similar developmental strategies have India and Pakistan followed for their
respective developmental path? Any four points.
 MARKING SCHEME SAMPLE QUESTION PAPER 1
Q.NO. ANSWER MARKS
1 C 1
2 A 1
3 B ORExchange rate determined by demand -supply forces in foreign exchange market. 1
4 C 1
5 D 1
6 C 1
7 B 1
8 C 1
9 Quantity of total money held by public at point of time 1
10 Either create liabilities or reduce assets. 1
11 1. Included, because Indian embassy in Japan is the part of India’s domestic 1+1+1
territory.
2. Not included, because Russian embassy in Delhi is not the part of India’s
domestic territory.
Not included, because branch of SBI in England is the part of NFIA.it is not the part of
India’s domestic territory.

12 Derive saving curve from consumption curve by following steps:- 3

 Autonomous consumption is equal to autonomous saving when income is equal
to zero.
 When income is equal to consumption or break-even point then saving is equal
to zero.
 Draw line joining above two points and get saving curve from consumption
curve.
 MPS=1 - MPC slope of saving curve.

13 Any two difference between current account of BOP & capital account of BOP. 2+2
Any two difference between current account of balance of trade & balance of payment.
14 Explanation of both functions.
15 1.Subsidies-Revenue Expenditure, Neither creates any assets nor reduce any Liability 1X4
2.Grants given to state government- Revenue Expenditure, Neither creates any assets
nor reduce any liability
3. Repayment of loans-Capital Expenditure, Neither creates any assets nor reduce any
liability
4.Salary Payments- Revenue Expenditure, Either creates any assets or reduce any
liability
OR
Increasing the tax rate on the higher income group implies that the government is
following progressive tax policy.This would reduce the inequalities in the distribution
of income.The purchasing power of higher income people would fall while it would
remain the same for low income people.This would reduce the gap between these two
groups.Also the revenue of government is likely to increase by increasing the tax on
higher income people,which can be used in developmental programs of the economy.
16 Income method 3+3
NNPmp = C O E+ OS + MIXED INCOME + NIT + NFIA
NNPmp = 500 +100 + 150 + 350 + 400 + 100 +( -)20 = 1580
Expenditure method
NNPmp = PFCE + GFCE + NDCF + NET EXPORT + NF IA
 NNPmp = 900 +450 + 280 + (-30) +( -20) = 1580
17 Defination =1 mark 6
Measures to correct deficient demand = 2+2 mark
Diagram = 1 mark
OR
At equilibrium S=I
(i) -100+0.6Y = 1100
Y = 2000 correct solution 3 marks
(ii) Y = C + S
C = Y-S = 2000 – 1100 = 900 correct solution 3 marks
18 Open industries in backyard of the house in China in 1957 1
19 1951 1
20 A 1
21 D 1
22 China 1
23 C 1
24 B 1
25 C 1
26 D 1
27 A ORD 1
28 she can be considered as worker because she contributes to GDP by rendering services 3
29 Explanation in brief 3
30 Import substitution is a strategy of encouraging domestic production of the goods and 4
services which we are importing from rest of the world.
Import substitution can protect domestic industry in two ways
1. Import tariffs are raised, so that demand for imported goods is reduced. So
demand for domestic goods rise. It protect domestic industry.
2 The government restricts or bans FDI in those areas of production where domestic
industry is facing stiff competition on account of foreign supplies. Accordingly
domestic industry is protected.
31 Give answers as per paragraph. 2+2
32 Much public sector enterprise incurred huge losses but continue to function because it 4
is very difficult to close government undertaking even if it is drain of the Nation’s
limited resources. This does not means that private firms always remain profitable
.relevant usefulness of public sector undertaking
33 Definition of rural development and write any four keys used with explanation. 6
34 Write any four demographic indicators of China Pak and India. 6
OR
Write any four similar development Path of India Pak.
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 2 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO. QUESTIONS MARKS

1 Read the following statements carefully:

Statement 1: Slope of Saving function is indicated by MPC.
Statement 2: The value of marginal propensity to save can be greater than one.
In the light of the given statements, choose the correct alternative from the
following: 1
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 false
d) Both statements 1 and 2 are true
2 GDP is not an appropriate indicator of welfare because of:
a) externalities.
b) composition of GDP and distribution of GDP.
c) non-monetary transactions.
d) all of the above.
1

3 The value of __________ can be less than, equals to, or more than one.
(Choose the correct alternative to fill up the blank)
a) Marginal Propensity to Consume b) Average Propensity to Consume 1

c) Average Propensity to Save d) None of the above

4 Under the balance of payments structure of a nation, the two main categories of
accounts for the classification of the transactions are __________ and __________.
(Fill up the blank with correct alternative)
i) Current account ii) Unilateral transfer account
iii) Capital account iv) Loan account
Alternatives:
1
i and ii b) i and iii c)
iii and iv d) iv and i

5 Money can be used to transfer purchasing power from present to future. Which
specific function of money is this called?
1
(a) store of value (c) measure of value
standard of deferred payments (d) medium of exchange

6 Find the missing figures and choose the correct alternative: 1

Round Deposits Loans (60%) Reserve Ratio

(40%)

I 2000 1200 800

II 1200 ….(i)..... 480

… … …

… … …

Total …(ii).... …(iii).... …(iv)....

Alternatives:
a) 980,1000,4000,5000 b) 720,5000,3000,2000
c) 660,4000,1000,5000 d) 640,3000,5000,1000

7 Graphically, Aggregate Supply function can be obtained by vertically adding the —--
---- and —-------- function. (Choose the correct alternative to fill up the blanks)
Alternatives:
a) consumption, saving
b) consumption, investment
c) investment, saving 1
aggregate supply, consumption
8 Identify the correct reason(s) that may affect the supply of foreign exchange in an
economy.
I Imports of visibles II. Exports of invisibles
III. Remittances by residents working abroad IV. Purchase of assets abroad
Alternatives:
a) I and II b) II and III
c) III and IV d) I and IV

9 If C = 100 + 0.75 Y, then the corresponding saving function will be expressed as: 1

(Choose the correct alternative)

Alternatives:
a) S = 100 + 0.25Y b) S = -100 + 0.75Y
c) S = -100 + 0.25Y d) S = 75 + 0.25Y

10 Read the following chart carefully and identify the visible trade: 1

(a) trade in services (c) trade in goods

(b) transfer payments (d) none of these
11 Giving reasons, state whether the following statements are true or false:

(i) Current account of Balance of Payment account records only export and import 1.5+1.5=
of goods and services. 3

(ii) Foreign investments are recorded in the capital account of Balance of Payments.

12 On the basis of the given data, estimate the value of Domestic Income:

S. No. Items Amount (₹ in

crores)

i Rent and royalties 1300

 ii Net Indirect Taxes 200

iii wages and salaries (in cash and kind) 1700 3

iv corporate tax 400

v depreciation 400

vi retained earnings 300

vii dividends 400

viii Net factor income from Abroad (-) 120

ix Mixed income of self employed 1400

x Change in stock (-) 200

OR
State the meaning of the following:
(i) National income (ii) Intermediate goods (iii) capital loss

13 Income rises from ₹50,000 to ₹60,000, consumption increases from ₹40,000 to 4

₹48,000. In this situation, what will be the value of Marginal Propensity to consume
(MPC)?

14 (A) "In an economy, ex-ante Aggregate Demand is less than ex-ante Aggregate
Supply." Elaborate the possible impact of the same, on the level of output, income
and employment. OR

(B) “With an objective to correct the deflationary gap, the Reserve Bank of India may
reduce the Reverse Repo Rate .” Discuss the rationale behind the step taken by the 4
Reserve Bank of India.

15 Elaborate the ‘Banker to the Government’ function performed by the Reserve Bank 4
of India.

16 (A) On the basis of the given information, calculate the value of:
(i) Fiscal deficit 3
(ii) Primary deficit 2
 S. No. Content ₹ (in crore)

1. Revenue expenditure 100

2. Capital receipts 40

3. Net borrowings 38

4. Net interest payments 27

5. Tax revenue 50

6. Non-tax revenue 15

(B) State any two features of private goods.

OR
(A) Explain the ‘reduction of income inequalities among the people’ objective of
the Government Budget. 1

(B) ‘Under the Pradhan Mantri MUDRA Yojana (PMMY), the government
provides loans to the non-corporate, non-farm small/micro enterprises. 3
(C) Identify and discuss the nature of the government expenditure indicated in the
given statement.
3

17 (a) Giving valid reasons, explain how the following would be treated while estimating
National income?
(i) Profits earned by foreign Banks in India.
3
(ii) Bonus given to railway employees.
(b) "Subsidies to the producers should be treated as transfer payments.” Defend or
3
Refute the given statement with valid reason.

SECTION B

18 Identify the correctly matched pair in column A and column B from the following:

Column A Column B

1.Planning commission (a) apex body to planning

2. Characteristic of economic planning (b) maximum utilization of

resources 1
 3. Objective of economic planning (c) economic instability

4. National development council (d) NITI Aayog

Alternatives:
1 - (a) (b) 2 - (b) (c) 3 - (c) (d) 4 - (d)

19 In terms of sectoral contribution to GDP, the economy of China is relying more on:
(a) Primary sector (b) Secondary sector 1
(c) Tertiary sector (d) None of these

20 Fixation of maximum land ceiling is one type of:

(a) Technical reform (b) institutional reform 1
e) (c) structural reform (d) Market reform

21 Study the following picture and answer the given question:

People in coastal areas take up the activity shown in the picture as a diversification
activity for sustainable employment. identify the activity:
Poultry (b) Sericulture (c)
Fisheries (d) Farming

22 Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below.
Assertion (A): Modernisation creates unemployment.
Reason (R): Modernisation as a planning objective implies use of advanced
technology that replaces human resources in the same fields.
 Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true, but 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.

23 India is not a member of which of the following regional/ global economic grouping:
(a) SAARC (b) BRICS (c) G-7 (d) G-20 1

24 National Bank for Agricultural and Rural Development (NABARD) was set up in
1982 as a/the - —----- body to coordinate the activities of all institutions involved in
the rural financing system.
1
Micro Credit (b) Apex (c) private credit (d) Cooperative

25 The nature of Pakistan’s economy is: 1

Capitalist (b) Mixed (c) Socialist (d) Communist

26 Read the following statements carefully: 1

Statement 1: Women empowerment is necessary for improving the employment

condition of India.
Statement 2: Almost 50% of the population are women.
In light of the given statements, choose the correct alternative from the following:
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

27 From the set of the events given in column I and corresponding facts given in Column 1
II, choose the correct pair of statements:

Column I Column II

A India I Economic reforms in 1997

 B Pakistan II Economic reforms in 1991

C China III Economic reforms in 1978

D India IV GST rolled out in 1999

(a) A - I (b) B - II (c) C - III (d) D - IV

28 What was the stage of the secondary sector (Industry) on the eve of independence? 3

OR
(c) Discuss briefly any three salient features of India’s pre-independence
occupational structure.
29 Explain how ‘Investment in Human Capital’ contributes to growth of an economy. 3

30 The phenomenon of male child-preference is common in many developing countries 4

including India, China and Pakistan. Why do people practice discrimination between
male and female children?

31 How is unemployment an economic as well as a social problem? 4

OR
State and elaborate whether the following statements are true or false, with valid
arguments:
(1) Diversification is essential in rural employment generation.
There are a lot of hindrances in the mechanism of agricultural marketing.

32

Identify the situation depicted in the given image. suggest the impact of the indicated
situation, on the Indian economy.
33 (A)“The Green Revolution has made India self-reliant with respect to the food 3
grains.” Justify the statement, giving reasons in support of your answer.
(B) “GST is a game changing reform for the Indian Economy.” Justify.
3
OR
(C) “In India, after 1947 industrial reforms were introduced on a large scale.” In the
3
light of the given statement, discuss any one such industrial reform.
(D) “The Navaratna policy of the government helped in improving the performance
of public sector undertakings in India.” Do you agree with the given statement? Give 3
valid reasons in support of your answer.

34 Read the following text carefully:

Global warming is a gradual increase in the average temperature of the earth’s lower
atmosphere as a result of the increase in greenhouse gases since the Industrial
Revolution. Much of the recent observed and projected global warming is human-
induced. It is caused by man-made increases in carbon dioxide and other greenhouse
gases through the burning of fossil fuels and deforestation. Adding carbon dioxide,
methane and such other gases (that have the potential to absorb heat) to the
atmosphere with no other changes will make our planet’s surface warmer. The
atmospheric concentrations of carbon dioxide and CH4 have increased by 31 per cent
and 149 per cent respectively above pre-industrial levels since 1750. During the past
century, the atmospheric temperature has risen by 1.1°F (0.6°C) and sea level has risen
several inches. Some of the longer-term results of global warming are melting of polar
ice with a resulting rise in sea level and coastal flooding; disruption of drinking water
supplies dependent on snow melts; extinction of species as ecological niches
disappear; more frequent tropical storms; and an increased incidence of tropical
diseases. Among factors that may be contributing to global warming are the burning of
coal and petroleum products (sources of carbon dioxide, methane, nitrous oxide,
ozone); deforestation, which increases the amount of carbon dioxide in the
atmosphere; methane gas released in animal waste; and increased cattle production,
which contributes to deforestation, methane production, and use of fossil fuels. A UN
Conference on Climate Change, held in Kyoto, Japan, in 1997, resulted in an
international agreement to fight global warming which called for reductions in
emissions of greenhouse gases by industrialized nations.
Source: www.wikipedia.org
On the basis of the given text and common understanding, answer the following
questions:
(1) Define Global Warming.
Briefly elaborate two causes and consequences of Global Warming.

2
4
 MARKING SCHEME SAMPLE QUESTION PAPER 2
1 c) Both statements 1 and 2 are false 1
2 d) all of the above. 1
3 b) Average Propensity to Consume 1
4 b) i and iii 1
5 a) store of value 1
6 b) 720,5000,3000,2000 1

7 a) consumption, saving 1
8 b) II and III 1
9 c) S = -100 + 0.25Y 1
10 c) trade in goods 1
11 (i) False, as the current Balance of Payments account also records unilateral transfers. 1.5
(ii) True, as all kinds of foreign investments (foreign direct investments and portfolio +1.5=3
investments) are included in the capital account of Balance of Payments as they affect
the assets positions of the country.
12 Domestic Income (NDP fc) = COE + O.S. + MI 1
= 1700 + 1300 + 400 + 300 + 400 + 1400 1
= 5500 Crores. 1
OR
1. National income is referred to as the total
monetary value of all services and goods that are
produced by a nation during a period of time. In
other words, it is the sum of all the factor income
that is generated during a production year.
2. Intermediate goods are referred to as goods that are
used by businesses for producing goods or
services. These goods are also known as producer
goods.
Capital loss refers to the loss in value of the fixed assets due to unforeseen
obsolescence, natural calamities, thefts, accidents, etc
13 ΔY = Y1-Y0, 1
= 60000 - 50000 = 10000
ΔC = C1-C0, 1
= 48000 - 40000 = 8000
MPC = ΔC/ΔY, 1
= 8000/10000 1 Mark
= 0.8 for
formulas
14 (A) When aggregate supply is more than aggregate
demand or when investment is less than savings,
then the planned inventory rises above the desired
level. To clear the unwanted increase in inventory,
firms plan to reduce the production output till
Aggregate demand becomes equal to Aggregate 4
supply
OR
When the situations are perfect for increasing the inflation, RBI then cuts the reverse
repo rate and repo rate so as to inject liquidity into the economy.
15 RBI acts as a bank to both the central as well as the state
 government. It provides them the short-term loan
whenever necessary. The government deposit accounts are
also maintained by the RBI. 4
On behalf of the government, it collects the receipts of the
funds and makes the payment. It is also responsible for
advising the government on financial and banking
subjects.

16 (A) (i) Fiscal deficit = 38 crores 2+2+2=6

(ii) Primary deficit = Fiscal deficit - Interest
payment
= 38 -27 = 11 crores
(B) Private goods are those goods whose property does not belong to the State, but
to private persons or organizations, and whose main purpose is to satisfy
particular needs. These assets usually require a previously established monetary
contribution to access them. The organization or person who owns these private
goods has the power to dispose of them, at their convenience; therefore, the
owner can make use of this asset in a totally exclusive way, or even offer it in
exchange for an economic contribution if he so wishes.

OR

(C) Reducing Inequalities in Income: – Government through its budget seeks to reduce
the divide between the rich and the poor. This is done by increasing taxes on the rich
and increasing the government's expenditure on the welfare schemes for the poor. Such
a policy, reduces disposable income of the rich and results in increased quality of life
of the poor, thereby reducing the effects of income divide.

(D) MUDRA helped in generation of large-scale employment opportunities at

3+3=6
grassroots level and also proved a game changer while boosting the Indian economy.
PMMY eased collateral free access to credit in a seamless manner to micro enterprises
in the country.
17 (A) (1) It will not be included in the national income of 3
india. Appropriate reason.
(2) Bonus will be included in national income.
Appropriate reason.

The statement, 'Subsidies to the producers should be treated as transfer payments. ' is
refuted. Transfer payments are those payments corresponding to which there is no
value addition in the economy, like scholarships to students or old-age pensions. 3
18 (b) 2 - (b) 1
19 (b) Secondary sector 1
20 (b) institutional reform 1
21 (c) Fisheries 1
22 a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
23 (c) G-7 1
24 (b) Apex 1
25 (b) Mixed 1
26 c) Both Statements 1 and 2 are true. 1
27 (c) C - III 1
28 (i) At the time of Independence, the process of 3
industrialisation was limited to the plantation and textile
industry. It was supported by imported ; machinery and
technical know-how.
(ii) It didn’t generate employment opportunities due
to their capital intensive nature.
(iii) As a result, the percentage of the workforce engaged
in the secondary or industrial sector declined from 12.6 in
1901 to 10.7 in 1951. As a result of this, our industrial
sector was very much depressed on the eve of
independence
OR
The salient features of India's pre-independence occupational structure include a
predominance of agriculture, lack of opportunities in the Industries, unequal
distribution among different sectors, unbalanced growth of individuals that affects the
economy, and regional imbalance.
29 Human capital allows an economy to grow. When human capital increases in areas
such as science, education, and management, it leads to increases in innovation, social
well-being, equality, increased productivity, improved rates of participation, all of 3
which contribute to economic growth.
30 Common wisdom is that the preference for sons is motivated by economic, religious,
social and emotional desires and norms that favour males and make females less
desirable: Parents expect sons—but not daughters—to provide financial and emotional
care, especially in their old age; sons add to family wealth and property

4
31 Unemployment is both an economic and a social problem. Unemployment is an
economic problem in the sense that unemployed persons will be consumers only
without being a producer. Non-utilisation of human resources due to unemployment
involves double cost of maintenance and loss of output. Unemployment is a social
problem in the sense that it causes enormous suffering to unemployed workers due to
their reduced or nil income. Many social evils like dishonesty, immorality, drinking, 4
gambling, robbery, etc are the outcome of unemployment. It causes social disruption
in the society and the government has to incur heavy unproductive expenditure on law
and order.
OR
True (2) True Give proper reasons also.
32 a. Casualisation of workforce
It can be shown that casual workers are less psychologically committed to their jobs
and organisations. This leads to employers finding it difficult to motivate staff in their
job and there is an increase in the turnover rate. 4
33 (a) Yes, the green revolution has made India self-sufficient in food grains. India 3
has adopted a new strategy in the field of agriculture. In this, insecticides and
pesticides were used which resulted in great production of wheat and rice. Due
to the green revolution, the highest rate of growth was achieved in Punjab and
Haryana in 1964-65.
 (b) GST is game-changing reform for the Indian
Economy, as it will bring the net appropriate price
of the goods and services. The various factors that
have impacted the Indian economy are: (i) 3
Increases competitiveness: GST has removed the
Cascading effect of taxes, i.e., tax on tax.
OR
(C) 1. Industrial policy 1948
2. Industrial policy resolution 1956 and other reforms
(D) The Government has decided to give special treatment to some of the important
profit-making PSUs. The granting of Navaratna status resulted in better performance of 3
these companies. They were given greater managerial and operational autonomy. In
taking various decisions to run the company efficiently and thus increase their profits
they also became highly competitive and some of them are becoming the giant global
players. Therefore the Navarathna policy has certainly improved the performance of
the PSU’s.

3
34 (1) Global warming is a gradual increase in the average temperature of the earth’s
lower atmosphere as a result of the increase in greenhouse gases since the
Industrial Revolution.
Causes and consequences of global warming. 2+2+2=6
1 c) Both statements 1 and 2 are false 1
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 3 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO SECTIONA–MACROECONOMICS MARK
. S
c Readthefollowingstatementscarefully:
Statement1:Ex-ante savings are the planned savings or expected savings.
Statement2:When people who are willing to work at the giving wage rate do not get work
is called involuntary unemployment.
Inlightofthegivenstatements,choosethecorrectalternativefromthefollowing:
a) Statement1istrueandStatement2isfalse.
b) Statement1isfalseandStatement2istrue.
c) BothStatements1and2aretrue.
BothStatements1and2arefalse.
1
2 Nominal GNP is same as
a) GNP at constant prices
1
b) Real GNP
c) GNP at current prices
d) GNP less Net factor income from abroad

3 Average Propensity to Consume can never be ………………………...

(choose the correct alternative)
a) positive
b) zero 1
c) more than one
d) less than one

4 AspertheReserveBankofIndia(RBI)pressreport,dated29thDecember,2022:
"NetexternalcommercialborrowingstoIndiarecordedanoutflowofUS$0.4billioninthesecondq
 uarter (2022-23)"
Outflow of foreign exchange is recorded on which side of BOP account?
a)current,credit b)current,debit
c)capital,credit d)capital,debit
1
5 ‘Money removes the problem of double coincidence of wants.’
On thebasisofthegivenstatement,identifythefunctionperformedbymoney:
a)Mediumofexchange b)StoreofValue
c)Unitofaccount d)Meansofstandardofdeferredpayments 1
6 Findthemissingfiguresandchoosethecorrectalternative:
The total deposits are -------- if LRR is 25% and initial deposits are Rs. 100000?
a) 250000
b) 500000
c) 400000
d) 800000

1
7 Read the following statements carefully:
Statement 1: Aggregate demand is the sum total of consumption and investment
expenditures.
Statement 2: Total consumption consists of an autonomous component and an induced
component.
Choose the correct option based on the above statements. 1
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

8 Choose the correctly matched pair from the following –

Column A Column B
A. Sum of credit is equals to 1. Accommodating items
B. Unilateral transactions 2. Transfer receipts
C. Autonomous items 3. Sum of debit
D. Change in foreign 4. Transactions above the line
exchange reserves with 1
government

a) A-1
b) B-2
 c) C-3
d) D-4

9 The total consumption and investment curves are given below: 1

Identify which of the following represents “Autonomous Consumption”.

a) OR
b) RC
c) RY
d) RI
10 “Interest on the deposit from a foreign bank is recorded in the current account”. Choose the
correct reason.
a) It is visible good
b) It is invisible service
c) Income from abroad
d) It is a transfer receipt

1
11 State whether the following statements are true or false. Give reasons for your answer.
(i) Difference between value of exports and imports of goods and services are called 3
Balance of Trade.
(ii) External assistance is not recorded in Balance of Payments account. (Delhi 2011C)

12 Do you agree with the statement, ‘Machine purchased is always a final good’.
Give reason for your answer.
OR
Calculate net value added at market price of a firm:
 Items Amount 3

Sale 300

Change in stock -10

Depreciation 20
3
Net in direct taxes 30

Purchase of machinery 100

Purchase of intermediate product 150

13 If in an economy Saving function is given by S = (-) 50 + 0.2 Y and Y = ₹ 2000 crores;

consumption expenditure for the economy would be ₹ 1,650 crores and the autonomous
investment is ₹ 50 crores and the marginal propensity to consume is 0.8. True or False? 4
Justify your answer with proper calculations.

14 (A) ‘An economy is operating at the under-employment level of income’.

What is meant by the given statement? 4
Discuss one fiscal measure and one monetary measure to tackle the situation.
OR
4
(B)As per the following news published in The Economic Times on 26th December 2021:
‘Reserve Bank of India has sold government securities worth ₹ 8,710 crore in the secondary
market, over the last four weeks, to drain out excessive liquidity’.
Identify the likely cause and the consequences behind, this type of action plan of the
Reserve Bank.
16 A) State which budget expenditure does not result in creation of assets or reduction of
liability. Give examples also. 3
2
B) What indicates zero primary deficit?
C) Why is tax treated as revenue receipt?

OR
A) Define the terms “direct” and “indirect” taxes and provide two examples of each.
B) From the following data about a government budget, find out

a. Revenue deficit 1
 b. Fiscal deficit
c. Primary deficit
3
Particulars Rs. (Arab)
Capital receipts net of borrowings 95
Revenue expenditure 100 3

Interest payments 10
Revenue receipts 80
Capital expenditure 110
17 (a)Giving reason, explain whether the following are included in domestic product of India.
1. Profits earned by a branch of foreign bank in India
3
2. Payment of salaries to its staff by embassy located in New Delhi
3. Interest received by an Indian resident from its abroad firms.
(b)What is double counting in the economy? How can it be avoided? 3
SECTION B
1 Consider the following statement with respect to Indian agriculture and mention the correct
8 combination.
I) Green Revolution led to the introduction of new technology
II) Green Revolution started the usage of HYV seeds
III) Green Revolution resulted in the improvement in oilseeds. 1

a) I and II
b) II and III
c) I only
d) None of the above
1 Which of the following statements about fertility rates is correct?
9 A)The fertility rate is very low in India and very high in Pakistan
B)The fertility rate is very low in India and very high in China
C) The fertility rate is very low in China and very high in Pakistan
D) The fertility rate is very low in China and very high in Bangladesh
1
2 Modernization means
0 1) Increase the production of goods and services by adopt goods and services by adopt new
technology
2) Avoiding imports of those goods which could be produced in India itself
3) Recognition the women should have the same right as men
Options are
A) only 1
B) Both 1 and 3
C) Only 3
D) All 1,2,3 1

2 Studythefollowingpictureandanswerthegivenquestion:
1
 _______ is a village based financial intermediary committee usually composed of 10-20 local women or
men. (Fill in the blank with correct alternative) 1
a) RRB
b) Self help group
c) NABARD
d) Banking system
2 Readthefollowingstatements:Assertion(A)andReason(R).Choosethecorrectalternativefromthosegivenbe
2
low.
Assertion(A):The navratnas were granted financial and operational autonomy in the working of the
companies.
Reason(R):The government decided to give special treatment to some profit making PSU.
Alternatives:
a) BothAssertion(A)andReason(R)aretrueandReason(R)isthecorrectexplanationofAssertion(A).
b) BothAssertion(A)andReason(R)aretrue,butReason(R)isnotthecorrectexplanationofAssertion(A).
c) Assertion(A)istrue,butReason(R)isfalse.
Assertion(A)isfalse,butReason(R)istrue.

1
2 Which of the following statements about human development is incorrect?
3 A)The life expectancy at birth of a country is the true indicator of its human development levels
B)The literacy rate of a country is the true indicator of its human development levels
C)The density of population of a country is the true indicator of its human development levels
D)The per capita gross domestic product (GDP) of a country is the true indicator of its human 1
development levels

2 Readthefollowingstatements:Assertion(A)andReason(R).Choosethecorrectalternativefromthosegivenbe
4
low.

ASSERTION: Rural development includes only agricultural development.

REASON: Rural development aims at improving the economic and social conditions of well being.
Alternatives
A) Both assertion and reason are true and reason is the not correct explanation of assertion
1
is true but reason is false
B) Both assertion and reason are true and reason is correct explanation of assertion
C) Assertion is true but reason is false
 D) Assertion is false but reason is true
2 Read the following statement given below and choose the correct alternative
5
Statement 1- China has the lowest density among India , pakistan and Chin
Statement 2- Only 64% of people of India live in urban areas
A)Both are correct 1
B)Both are incorrect
C)Statement 1 is correct and statement 2 is incorrect
D)Statement 1 is incorrect and statement 2 is correct

2 Readthefollowingstatementscarefully:
6
Statement1:Casualisation refers to a situation when the percentage of casually hired workers in the
total workforce tends to rise over time.
Statement2:Informalisation refers to a situation when people tend to find employment more in the
informal sector of the economy, and less in the formal sector of the economy.

Inlightofthegivenstatements,choosethecorrectalternativefromthefollowing:
a) Statement1istrueandStatement2isfalse.
b) Statement1isfalseandStatement2istrue. 1
c) BothStatements1and2aretrue.
BothStatements1and2arefalse
2 FromthesetoftheeventsgivenincolumnIandcorrespondingfactsgiveninColumnII,choosethecorrectpairof
7
statements:

Column I Column II

A. Great proletarian cultural revolution 1. 1966-67

B. Great leap forward 2. 0.557

1

C. Decline in Pakistan’s growth rate 3. 1958

D. Value of HDI in Pakistan 4. 2015-17

Alternatives:

a)A-I b)B-II
c)C-III d)D-IV
2 (A) State the reasons for low agricultural productivity during the colonial period.
8 OR
What were the aims of economic policies pursued by the colonial government in India?

2 “Ravya’s father admitted her in an engineering college toattain higher

9
education.Thiscontributedpositivelyto herskills andexpertise.”
ExplaintheimpactofRavya’sdecisiononhumancapitalformation.
3
3 What are the reasons for the low population growth in China?
0
4
3 (A) Stateandelaboratewhetherthefollowingstatementsaretrueorfalse,withvalidarguments:
1
(i) Agricultural diversification is essential for sustainable livelihoods.
2
(ii)Moneylender and traders exploits small farmers.
2
OR
(B) Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which
is owned and operated by her husband. Can she be considered as a worker? Why? 4
3
2

Identifythesituationdepictedinthegivenimage.Suggesttheimpactoftheindicatedsituation,ontheIndian
economy.
3 (A) ‘The goal of equitable distribution of land was fully served by the abolition of intermediaries,
3 3
in post-independence India.’
Justifythestatement,givingreasonsinsupportofyouranswer.

(B) India’s Green Revolution is an example of how the productivity of scarce land resources can be 3
increased with improved production technology.
Justifythestatement,givingreasonsinsupportofyouranswer.
OR
(C) ‘Though public sector is very essential for industries, many public sector undertakings incur huge
losses and are a drain on the economy’s resources’.
Discuss the usefulness of public sector undertakings in the light of this fact. 3
 (D)‘Modernisation as a planning objective create contradiction in the light of employment generation.’
Doyouagreewiththegivenstatement?Givevalidreasonsinsupportofyouranswer.
3
3 An important lesson that the COVID-19 pandemic has taught the policymakers in India is to provide
4 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 date
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 3
and that is responsible for low wages. 1
2
1. “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.
2. Hired labour comes in …………………. (Informal organisation / formal organisation)
3. What do you mean by MSMEs?
 MARKING SCHEME SAMPLE QUESTION PAPER 3
1 c) BothStatements1and2aretrue 1
2 c) GNP at current prices 1
3 b)Zero 1
4 d)capital,debit 1
5 a)Mediumofexchange 1
6 c) 400000 1
7 c) BothStatements1and2aretrue 1
8 b) B-2 1
9 a) OR 1
10 c) Income from abroad 1

11 (i) False, because Balance of Trade only records the export and import of visible items, i.e.
goods.
(ii) False, because external assistance are included in the current account of Balance of
Payments as unilateral receipts.
3
12 No, I am not agree with the assertion made here. It is up to the user to decide if a machine is a 1½
finished product or not. When a machine is purchased by a household, it is referred to as a
final good. On the other hand, if a machine is purchased by a business, it is referred to as a
final good. However, if it is purchased by a company for resale, it is referred to as an
intermediate good.

13 Yes, all the given values are correct

S= -50+0.2Y
⇒ S= -50+0.2(2000) =-50 +400 = ₹ 350 crores

At equilibrium level of income:

1½
Y=C+S 1½
⇒ 2,000 = C + 350
⇒ C = 2000 – 350 = 1,650 (in ₹ crores) 1

MPC + MPS = 1
⇒ MPC + 0.2 = 1
⇒ MPC = 1-0.2 = 0.8

14 (A) An economy is said to be operating at under employment equilibrium level, if the planned
aggregate expenditure falls short of available output in the economy, corresponding to the full
employment level. It results in excess of output available over the anticipated aggregate
demand at full employment level.
To tackle such a situation the aggregate demand has to be increased up to the level that the
stocks can be cleared.

The following measures may be taken for the same:

  Decrease in taxes: The government under its fiscal policy may decrease the rate of
taxes (both direct and indirect taxes). This will ensure greater purchasing power in the
hands of the general public. This will help to increase aggregate demand and remove
the deflationary gap.
 Increase in money supply: Central bank through its expansionary monetary policy can
increase the money supply in the economy. Central banks can use tools like bank
rates, cash reserve ratios, repo and reverse repo rates etc. to ensure greater money in
the hands of the general public which would in turn increase the aggregate demand in
the economy and be helpful in reducing/removing the deflationary gap.

OR
(B) The given instance where the Reserve Bank of India has sold government securities in the
secondary market indicates inflation as a possible cause behind the action taken by RBI.
By selling off the government securities, RBI withdraws money from circulation and thereby
reducing the lending capacity of the commercial banks. In this process, the economy will
experience a contraction of credit, leading to a reduction in consumption and investment
demand. Consequently, the inflationary pressure in the economy will get eased out.

16 (A)Revenue Expenditure does not result in creation of assets or reduction of liability. Such 1
expenditures are incurred for the normal running of government departments and maintenance 1½
of services. For example: salaries, old age pensions, interest payments, subsidies, grants etc. ½

(B) Zero primary deficits means that the government has to resort to borrowings only to make
interest payments.

(C) Because tax neither create a liability for the govt nor reduces assets of the government.

OR
(A) Direct taxes are those that are imposed right away on a person’s property or income.
These taxes are paid directly to the government by the general public. Examples include 3
income tax, wealth tax, corporate tax, and other taxes.

Indirect taxes are levied on people’s income and assets as a result of their consumer spending.
These taxes are levied on one person, but they are paid by another. Examples include customs
duties, excise duties, sales taxes, service taxes, and other taxes.

(A) Revenue deficit = Revenue expenditure- Revenue receipts=100-80=20

3
Fiscal deficit = Total expenditure-Total Receipts excluding borrowing

= (100+110)-(80+95)=210-175=35

Primary deficit= Fiscal deficit- Interest payments=35-10=25

17 (a) 1. Profits earned by a foreign bank branch in India are included in India's domestic
income because they are earned within the country's borders. 3
 2. Since the embassy in New Delhi is not part of India's domestic territory, salaries paid to
its employees will not be included in the country's domestic income.
3. Interest received by an Indian resident from his or her foreign enterprises is not included
in India's domestic income because it is a factor income.
(b) Doubt counting is the process of calculating the value of goods multiple times at each
stage of production. 3
The following methods can be used to avoid it:
a) When estimating national income, use the value-added technique.
b) Calculating national income only on the basis of the final commodity's worth.
18 a) I and II 1
19 c) The fertility rate is very low in China and very high in Pakistan 1
20 b) Both 1 and 3 1
21 b) Self help group 1
22 a)BothAssertion(A)andReason(R)aretrueandReason(R)isthecorrectexplanationofAssertion(A). 1
23 c)The density of population of a country is the true indicator of its human development levels. 1
24 d)Assertion is false but reason is true 1
25 c)Statement 1 is correct and statement 2 is incorrect 1
26 c)BothStatements1and2aretrue. 1
27 A-1 1
28 (A)Reasons for low agricultural productivity during the colonial period:
 Land settlement systems: Under the zamindari system, the zamindars exploited the
cultivators. They were only bothered about rent collection rather than improving the
condition of the land.
 Terms of Revenue settlement: The terms of revenue settlement forced the Zamindars
3
to act in the above manner. Dates for depositing specified sums of revenue were fixed,
failing which the zamindars were to lose their rights.
 Low level of technology
 Lack of irrigation facilities
 Negligible use of fertilizers
 Lack of investment in terracing, flood control, drainage, and desalinization of soil.
(B) The main aims of the economic policies pursued by the colonial government in India 3
were:
 Protection and promotion of British economic interests.
 Systematic deindustrialization leading to a stagnant economy.
 Making India a raw material supplier for the upcoming modern industries in Britain.
 Making India a sprawling market for the finished products of those industries.

29 Education increases the productive capacity and productivity of Ravya by her increased
skills. Further, education increases the acceptability of modern techniques and also facilitates
a primitive economy to break the shackles of tradition and backwardness. An investment in 3
educational sector has two fold benefits. It not only increases the income earning capacity but
also reduces the skewed distribution of income thereby forming an egalitarian society. The
investment in educational sector has long lasting returns. It not only enhances the present
economic condition but also improves the future prospects of a country. The importance of
education is not only limited to making people educated. but also in facilitating an
underdeveloped economy to solve different but interrelated macro economic problems like,
poverty, income inequality, population, investments, under utilisation of resources.
30 The reasons for the low population growth in China are:
 One Child Policy: For many years, China has rigidly enforced the "one child"
restriction. This rigidly enforced rule meant that many Chinese couples could only 4
 have one child for more than three decades. If they possessed more than one, they
risked hefty penalties and varied degrees of harassment from local authorities.
China's Communist Party authorities implemented the strategy in 1980 in order to
slow the country's out-of-control population growth. This approach also resulted in a
decrease in China's sex ratio, or the proportion of females per thousand males.
However, in 2015, one child policy was ruled out in China, thus allowing families to
have two children owing to massive decline in population growth.
 Costs of Raising Children: In China, raising a child is expensive, especially in cities,
thus it acts as a hindrance for the couples to think of another child.
 Better Socio-Economic Position of Women: The average improvement in female
socioeconomic position over the last 20 years has contributed to a decline in
population rate.

31 (A) (i)True, as it increase income sources, reduce risk and improve nutrition availability. 2
(ii)True , as they charge high interest rate on loans. 2
OR
A person who is involved in the production activity and contributes to the generation of GDP
is referred to as worker. As here Meena works in the cloth shop to support her husband and
contributes to GDP by rendering her services, so, she can be considered as a worker.
4
32 Thegivenimagedepictsthe ways of promoting sustainable development strategies. 1
(i)Solar energy
(ii)Wind energy 3
(iii) Geo thermal energy
33 (A) 1.In some areas, the former zamindars continued to own large areas of land while making
use of some loopholes in the legislation. 3
2. In some cases, tenants were evicted and zamindars claimed to be self cultivators.
3. Even after getting the ownership of land, the poorest of the agricultural labourers did not
benefit from land reforms.
(B) Green Revolution led to an increase in the production of food grains. With the use of
modern technology, extensive use of fertilizers , pesticides and HYV seeds there was a
significant increase in the agricultural productivity and product per farm land. In addition, the 3
spread of marketing system, abolition of intermediaries and easy availability of credit has
enabled farmers with greater portion of marketable surplus. All these factors enabled the
government to procure sufficient food grains to build the buffer stock and to provide cushion
against the shocks of famines and shortages.
OR

(A) Although, the mismanagement and wrong planning in PSUs may lead to misallocation
and, consequently, to wastage of the scarce resources and finance but PSUs do have some
positive and useful advantages.

1. Enhancing Nation’s Welfare: The main motive of the PSU was to provide goods and 3
services that add to the welfare of the country as a whole. For example, schools, hospitals,
electricity, etc. These services not only enhance welfare of country’s population but also
enhance the future prospects of economic growth and development.

2. Long Gestation Projects: It was not feasible and economically viable for the private sectors
 to invest in the big and wide projects like basic industries and electricity, railways, roads, etc.
This is because these projects need a very huge initial investment and have long gestation
period. Hence, PSU is the most appropriate to invest in these projects.

3. Basic Framework: An important ideology that was inherited in the initial five year plans
was that the public sector should lay down the basic framework for industrialisation that
would encourage the private sector at the latter stage of industrialisation.

4. Socialist Track: In the initial years after independence, Indian planners and thinkers were
more inclined towards socialist pattern. It was justified on the rational ground that if the
government controls the productive resources and production, then it won’t mislead the
country’s economic growth. This was the basic rationale to set up PSUs. These PSUs produce
goods not according to the price signals but according to the social needs and economic
welfare growth of the country.
5. Reduce Inequality of Income and Generate Employment Opportunities: It was assumed that
in order to reduce inequalities of income, eradicate poverty and to raise the standard of living,
government sector should invest in the economy via PSUs

(B)No, modernisation as a planning objective does not contradict employment generation. In

fact both modernisation and employment generation are positively correlated. While
3
modernisation refers to the use of new and modern technology in production process that may
make some people lose their jobs in the initial stages. But gradually, the use of modern
technology and input will raise the productivity and, consequently, the income of the people
that will further raise the demand for goods and services. In order to fulfill this increased
demand, there will be more job opportunities that will lead more people to be hired and,
hence, more employment opportunities will be generated. Hence, both modernisation and
employment generation are not contradictory but are complementary to each other
34 1. I defend this statement, because formal sector provide regular salary, paid leave and 2
better working conditions.
2
2. Formal organisation 2
3.Medium , Small and Micro Enterprises
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 4 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO. QUESTIONS MARKS
Q. 1 Define a capital good. 1
Q. 2 Money is: 1
(a) Anything which does not requires double coincidence of wants.
(b) Anything which is commonly accepted as a medium of exchange.
(c) Anything which is commonly accepted as commodity money.
(d) None of these
Q. 3 What are demand deposits? 1
Q. 4 AD curve: 1
(a) is a diagrammatic presentation of AD schedule.
(b) shows desired expenditure corresponding to different levels of income in the
economy.
(c) indicates ex-post demand in the economy.
(d) both (a) and (b)
Q. 5 In the consumption function, C = 400 + .6y, the value of autonomous saving will be: 1
(a) 400 (b) -400 (c) 0.6 (d) 0.4
Q. 6 The focus of government budget is: 1
(a) to maximize fiscal deficit (b) to minimize fiscal deficit
(c) to maximize expenditure (d) to maximizerevenue
Q. 7 The programmers and policies of government presented in the budget are known 1
as__________. (fiscal policy/monetary policy)
Q. 8 State whether the given statement is true or false: 1
‘Managed Floating Exchange Rate is decided by market forces but is not controlled by
central bank’.
Q. 9 Government expenditure on Mid-Day-Meal scheme running in government schools is 1
a type of ___________ Expenditure in government budget.
(Fill up the blank with correct answer)
Q. 10 If MPC = .5, value of investment multiplier is: 1
(a) 2 (b) 3 (c) 4 (d) 5
Q. 11 Give one example of ‘externality’ which reduces welfare of the people. 3

Q. 12 Complete the following table: 3

Consumption Saving income MPC
expenditure
100 50 150 -
175 75 - -
250 100 - -
325 125 - -
OR
What is the ‘inflationary gap ‘? Explain the role of open market operations in removing
this gap.
Q. 13 Explain the ‘banker’s bank’ function of central bank. 4
Q. 14 What do you mean by balance of payments? Write the components of current account 2+2
of balance of payments.
OR
What is meant by ‘depreciation and appreciation’ of domestic currency. Give
examples.
Q. 15 Give reason whether the following will include in revenue receipt, capital receipt, 2+2
revenue expenditure and capital expenditure in a government budget.
a. Disinvestment
b. Fee and fine
c. Repayment of loan
Pension
Q. 16 Calculate ‘ Operating surplus’ and (ii) Domestic Income, from the given data 3+3
Particulars Rs in
crores
(i) Compensation of employee 2000
(ii) Rent and interest 800
(iii) Indirect taxes 120
(iv) Corporation tax 460
(v) Consumption of fixed capital 100
(vi) Subsidies 20
(vii) Dividends 940
(viii) Undistributed profits 300
(ix) Net factor income to abroad 150
(x) Mixed income 200
OR
(a) Distinguish between stock and flow concept of national income.
(b) Define intermediate and final goods. Give examples.
Q. 17 In an economy C= 400 + .5Y is the consumption function where C is consumption 3+3
expenditure and Y is national income. Investment expenditure is 5000. Calculate
equilibrium level of income and consumption expenditure.
 SECTION B
Q. 18 Name any two taxes which were subsumed in Goods and Services Tax (GST). 1
Q. 19 Planning commission in India has been replaced by NITI AAYOG (true/false) 1

Q. 20 1
Identify the correct sequence of alternatives given in Column II by matching them
with respective terms in Column I:
Column – I Column – II
A. Land Ceiling i. Increase in production of food
grain using high yielding variety
seeds
B. Land reforms ii. Portion of agricultural produce
sold in the market
C. Green Revolution iii. Fixing the maximum limit of land
Holding for an individual
D. Marketed Surplus iv. Change in the ownership of land
(land to tillers)
Choose the correct alternative:
a) ii, iv, iii, i
b) iii, iv, I, ii
c) ii, iv, i, iii
d) iv, i, ii, iii
Q. 21 Identify the correct sequence of alternatives given in column II by matching them with 1
respective items in column I :
Column – I Column – II
(i) private sector (a) uses more of labour than capital
(ii) small-scale industry (b) aimed to promote regional
equality
(iii) Karve committee (c) controlled and run by private
individuals
(iv) Licensing policy of the (d) 1955
government
Choose the correct alternative:
a) ii, iv, iii, i
b) iii, iv, I, ii
c) ii, iv, i, iii
d) iii, i, iv, ii
Q. 22 The Great leap forward campaign was launched in …………………. (name of the 1
country)
Q. 23 Arrange the following events of China in chronological order and choose the correct 1
alternate:
i. Great Proletarian Cultural Revolution
ii. Great Leap Forward campaign
iii. Introduction of Economic Reforms
iv. First five year plan
Choose the correct alternative:
a) ii, iv, iii, i
b) iv, ii, i, iii
c) ii, iv, i, iii
d) iv, i, ii, iii
Q. 24 Brain-drain is a major problem of human capital formation in India. (true/false) 1
Q. 25 The basis objective of the cooperative credit societies is. 1
(a) To ensure timely flow of credit to the farmer
(b) To eliminate the moneylenders from the rural scene
(c) To make available credit facilities to all the region
All of these
Q. 26 Work -force refers to that part of: 1
(a) Labour force which is employed
(b) Population which is unemployed
(c) Population which is forced to work
Labour force which is unemployed
Q. 27 Which of the following is not a component of economic infrastructure? 1
(a) Health of human
(b) Power plants
(c) Communication system
Transport system
Q. 28 Explain any three challenges of rural areas regarding rural development. 3
OR
What are the main deficiencies of rural banking system?

Q. 29 Explain the relationship between human capital and economic growth. 3

Q. 30 How does British rule in India enforced to the decay of Indian handicrafts? State the 4
possible factors.
Q. 31 What do you understand by the term ‘import substitution’? Explain the role of tariffs 4
and quotas in to achieve import substitution.
OR
Was demonetization a good policy decisions? Give your opinion.
Q. 32 Read carefully the given paragraph and write the answer of following questions:- 4
Workers who own and operate an enterprise to earn their livelihood are known as self-
employed. Thus the cement shop owner is self-employed. About 52 per cent workforce
in India belongs to this category. The construction workers are known as casual wage
laborers; they account for about 25 per cent of India’s workforce. Such laborers are
casually engaged in others’ farms and, in return, get remuneration for the work done.
Workers like the civil engineer working in the construction company account for 23
per cent of India’s workforce. When a worker is engaged by someone or an enterprise
and paid his or her wages on a regular basis, they are known as regular salaried
employees.
(i) Define the followings:
a. Self- employed
b. Casual wage labours
c. Regular salaried employees
Hired worker.
Q. 33 (i) Write any three differences between physical and human capital. 3+3
(ii) Write short note on global warming.
Q. 34 Compare and analysis the given data of distribution of workforce (in 2018-2019) with 6
valid reason:
Country Agriculture Industry service
 INDIA 43 25 32
CHINA 26 28 46
PAKISTHAN 41 24 35
OR
What similar developmental strategies have India and Pakistan followed for their
respective developmental path? Explain any four points.
 MARKING SCHEME SAMPLE QUESTION PAPER 4
1 All goods which are used in the production of other goods either as fixed assets or as 1
inventory stock are called Capital Goods.
2 (b) anything which is commonly accepted as a medium of exchange 1
3 Demand deposits are the deposits which can be withdrawn on demand by the 1
depositors from banks.
4 (d) both a and b. 1
5 (b) -400 1
6 (b) to minimize fiscal deficit 1
7 Fiscal policy 1
8 False 1
9 Revenue 1
10 (a) 2 1
11 Externalities refer to benefits or harms of an activity caused by a firm or an individual, 3
for which they are not paid or penalized. For example, environmental pollution
caused by industrial Plants is a negative externality and building a flyover
is a positive externality.
12 INCOME- 250, 350, 450 and MPC- 0.75, 0.75, 0.75 3
OR
Inflationary gap is the excess of aggregate demand over and above its level required to
maintain full employment equilibrium in the economy. Sale of the financial securities
in open market.

13 Explanation of the function of RBI 4

14 BOP an accounting statement that provides a systematic record of all the economic 2+2
transactions between residents of a country and the rest of the world, in a given period
of time.
Components of current account: export and import of goods , export and import of
services, unilateral transfers to and from abroad
OR
Depreciation of domestic currency: fall in the value of domestic currency in relation to
the foreign currency.
Appreciation of domestic currency: rise in the value of domestic currency in relation to
the foreign currency.
15 a. Capital receipt, either create liabilities or reduce assets 2+2
b. Revenue receipt, neither create liabilities nor reduce assets
c. Capital expenditure, either create assets or reduce liabilities
Revenue expenditure, neither create assets nor reduce liabilities
16 (a) Operating surplus 3+3
= rent and interest + undistributed profits + corporation tax + dividends
=800+300+460+940
=2500
(b) compensation of employee + operating surplus +mixed income
= 2000+2500+200
=4700 OR
(a) Stock: refers to that variables are measured at a particular point of time.
Flow: refers to those variables which are measure over a period of time.
(b)Intermediate goods refer to those goods which are used either for resale or for
further production in the same year. Like milk used for making sweets.Goods which
 are used either for final consumption or investment. They are not meant for resale. So,
no value is added to these goods. Their value is included in the national income.
17 Equilibrium level of income = 10800 and consumption expenditure = 5800 3+3
18 Value added tax, service tax, excise duty, sales tax. (any two correct alternatives) 1
19 TRUE 1
20 b) iii , iv, i , ii 1
21 Iii, I, iv, ii 1
22 China 1
23 b) iv, ii, i, iii 1
24 True 1
25 (d) All of these 1
26 Labour force which is employed 1
27 Health of human 1
28 Write any three areas. OR 3
(i)Banking credit or institutional credit has invariably been tied to collateral. So large
section of poor farmers often left out
(ii) Lack of strictness in the recovery of loans.
Apart from commercial banks. Most financial institutions have failed to promote
mobilization of the deposits from the farming families.
29 It Is true, tradition farm practices relied on the use of organic manures. We now have 3
shifted to the use of chemical fertilizers. It has led to an extensive use of water as well
as pollution of water. No doubt we have raised productivity. But we should not forget
that there has been a serious damage to the environment.
30 (i) Discriminatory tariff policy of the state 1X4
(ii) Competition from machine made product
(iii) New patterns of demand
Introduction of railways in India which led to expansion of the domestic market for the
British goods in India.
31 Import substitution: it is a strategy to save foreign exchange by encouraging domestic 2X2
production of such goods which the country has been importing from rest of the world.
(i) Import tariffs are raised to protect the domestic industries.
(ii) Import quotas are fixed for the domestic producers with a view to
minimizing imports and encouraging production of import substitutes.
OR
Demonetization carried its positive And negative impact.
Positive impacts:
(i) It was a good move as it unearthed the stock of black money.
(ii) It induced the people to shift to the digital mode of transactions.
(iii)It improved the degree of financial inclusion in the economy and significantly
raised the liquid assets of the banks.
Negative impacts:
(i) It led to a several cash crunch in our cash-sensitive economy.
(ii) Implying a significant fall in the production activities.
(iii)Decline our GDP
(iv)Opportunity of employment was also deeply hurt. Etc.
32 Define given concepts 1X4
33 (i) Write any three differences. 3X2
Definition and short explanation.
34 Explain all sectors in three countries according to given table. OR Explain any four 6
points
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 5 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO. QUESTIONS MARKS
1 In the followingquestions, two statements are given. Read the statements carefully 1
and choosethe correct alternative:
1. Statement 1: When income is zero consumption never be zero.
2. Statement 2: In initial period APC will more than one

Alternatives:
a. Boththe statements are true
b. Boththe statements are false
c. Statement 1 is true and statement 2 is false
d. Statement 2 is true and statement 1 is false

2. A company located in India receives a loan from a company located abroad. How is 1
this transaction recorded in India’s Balance of payments account?
(a) Credit side of current account
(b) Debit side of current account
(c) Credit side of capital account
Debit side of capital account
3 Which one of following is not a function of the Reserve bank of India? 1
( a) Issue of currency
(b) Banker to the public
( c) Banker to Government
( d ) Controller of money supply

4 Read the following statements carefully -Assertion (A) & Reason (R) and choose the 1
correct alternative.
Assertion (A):Imports of crude oil by India will have a favourable impact on Balance
of payments of India.
Reason (R): Imports of goods are recorded on the debit side of current account as it
 leads to outflow of foreign exchange.

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation for Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation for Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

5 Read the following statements Assertion(A) and Reason(R). Choose one of the correct 1
alternatives given below
Assertion (A): Cement purchase by the constructor is considered and intermediate
good
Reason (R): The cement is used for the construction of a building to be sold to the
consumer.
Alternative
(a) Assertion(A)is true and Reason(R) is a correct reason of assertion
(b)Assertion (A) istrue but Reason (R) are is not a correct reason of Assertion(A)
(c)Assertion(A) a is false Reason (R) are is true
(d) both are false
Or
National income = domestic income, net factor income from abroad is negative:true or
false

6. Suppose in a hypothetical economy, the income rises from ₹ 2,000 cores to ₹ 4,000 1
cores. As a result, the consumption expenditure rises from ₹ 1,000 to ₹ 2,000 cores.
Marginal propensity to consume in such case would be……………
(a) 0.8
(b) 0.4
(c) 0.2
(d) 0.5
Or
When MPS = 1 , then K ( investment multiplier) is :
(a) 1
(b) 0
(c) ∞(infinity)
(d) None of these

7 Which of the following institution (s) perfume the activity of credit creation? 1
(a) Commercial banks
(b) Central bank
(c) Both (a) and (b)
(d) None of these:

8 Foreign exchange transactions which are independent of other transactions in the 1

Balance of payment accounts are called :
(a) Current transactions
(b) Capital transactions
 (c) Autonomous transactions
(d) Accommodating transactions
Or
From the set of statements given in column I and column II, chose the correct pair of
statements:

Column I Column II
(a) Export of software to France (i) Debit side of current
account
(b) Import of Machinery from (ii) Capital Account of
China Balance of Payments
(c) Remittances to relative (iii) Debit side of Current
staying abroad Account of Balance of
Payments
(d) Investment by Apple phones (iv) Credit side of Current
firm in India Account of Balance of
Payments

9 Read the following statements – Assertion (A) & reason (R) carefully & choose the 1
correct alternative:
Assertion (A): MPC represents the slope of the consumption function.
Reason (R): MPC represents change in consumption due to a given change in income.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation for Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation for Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

10 Read the following statements :- Assertion (A) & Reason (R) carefully & choose the 1
correct alternative:
Assertion (A): APC is continuously increasing as income increases; and APS is
continuously decreasing as income increases.
Reason (R): As income increases, the proportion of income saved increases and the
proportion of income consumed decreases.

(a) Both assertion (a) and Reason (R) are true and Reason (R) is the correct
explanation for Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation for Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
11 Compute National income from the following data
3
Sr. Particulars Amount
no (in
₹crores )
(i) Private final consumption expenditure 1000
(ii) Government final consumption expenditure 550
(iii) Net imports 30
(iv) Gross domestic capital formation 250
(v) Change in stock 50
(vi) Net domestic fixed capital formation 180
(vii) Net indirect taxes 100
(viii) Net factor income from abroad (-) 40
(ix) profits 100
12 Distinguish between Autonomous and accommodating transactions in balance of 3
payments accounts.
Or
What is foreign exchange rate? Distinguish between fixed and flexible exchange rates.

13 In an economy 50% of the increase in income is spent on consumption. Investment is 4

increased by ₹1000 corers. Calculate :
(a) Total increase in income
(b) Total increase in consumption expenditure.

14 “Monetary measure offers a valid solution to the problem of inflationary gap in an 4

economy”. State and discuss any two monetary measures to justify to given statement.
15 Discuss any one of the following functions of a central bank : 4
(a) As government bank
(b) Open market operations
Or
Assuming that initial deposit with bank ₹1000 crore legal reserve ratio 20% , Explain
the process of credit creation by the bank.

16 (A) Real gross domestic product is a better indicator of economic growth then (3+3)
nominal Gross domestic Product
Do you agree with given statement? Support your answer with the suitable
numerical example.
(B) Calculate ‘Depreciation on capital asset’ From the following data

Sl.no. Particulars Amount

(In ₹
crore)
 (i) Capital value of the asset 1,000
(ii) Estimated life of the asset 20 years
(iii) Scrap value nil

17 (A) Elaborate the objective of ‘Redistribution of income and wealth’ in the 3+3
government budget.
(B) Distinguish between revenue Expenditure and capital Expenditure of the
government, with suitable examples.
Or
Identify the following as Revenue expenditure or capital expenditure. Give reason
(i) Salary paid to government employee
(ii) Purchase of machine from Korea. 6
(iii) Repayment of loan taken from IMF.
(iv) Interest paid on national debt.
(v) Expenditure on construction of dam.
(vi) Social security benefits paid to retired government employee.

SECTION B
18 Major contribution to the GDP of the country on the eve of independence was from: 1
(a) Secondary sector (b) Tertiary sector (c) Primary sector (d) None of these

19 In the Industrial Policy Resolution of 1956, industries were classified in ……………. 1

Categories.
(a) Two (b) three (c) four (d) five
Or
In 1955, Karve
Committee was constituted for aiming the ……………..
(a) Modernization (b) Industrial development
(c ) Development of small scale industries (d) Self-reliance

20 Introduction of Economic Reforms in China took place in the year……….. 1

(a) 1978 (b) 1980 (C ) 1988 (d) 1991
Or
Choose the correct alternative showing chronological order of the following event:
(i) one child policy in China
(ii)economic reform in Pakistan
(iii) new economic policy in India
(iv)commune system in agriculture in China
Alternatives:
(a) ii,iv,iii,i
(b) iv,ii,i,iii
(c) iii,iv,i,ii
(d) iv,i,ii,iii

21 National Bank for Agriculture and Rural Development (NABARD) was set up in : 1
(a) 1980 (b) 1981
( c) 1982 (d) 1983
22 Identify the correct pair by matching the respective events of China in column I with 1
the year of occurrence in column II:

Column I Column II

(A) Introduction of economic (i) 1949

reforms in China
(B) Establishment of People’s (ii) 1953
Republic of China.
(C) The Commune system in (iii) 1978
China.
(D) Great Leap Forward (iv) 1958
campaign initiated in China.
(a) A- i (b) B-ii
(c ) C-iii (d) D-iv

23 Read the following statements carefully and choose the correct alternative: 1
Statement-I: Human capital is not sold in the market; only the services of the human
capital are sold.
Statement-II: Human capital is perfectly mobile between countries.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement-I is true, Statement-II is false.
(d) Statement-II is true, statement -I is false.

24 Read the following statements carefully and choose the correct alternative: 1
Statement-I: while India and Pakistan became independent nations in 1947, People’s
Republic of China was established in 1949.
Statement-II: while India announced its first Five Year Plan in 1951, Pakistan
announced its first five year plan, now called the Medium Term Development Plan, in
1953. China announced its First Five Year Plan in 1956.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement-I is true, Statement-II is false.
Statement-II is true, Statement-I is false.

25 The use of ……………….as fuel in public transport system may reduce air pollution. 1
(a) LPG (b) CNG
(b) water (d) Electricity
Or
…………………emphasises on protecting the future generation.
(a) Edward Barbier
(b) United Nations Conference on Environment and Development (UNCED)
(c) Brundtland Commission.
(d) Herman Daly.
26 Read the following statements carefully and choose the correct alternative: 1
Statement-I: Work at home includes not only traditional work like weaving, lace
making or variety of handicrafts but also modern jobs like programming work in the IT
industry.
Statement-II: During Covid 19 pandemic in 2020-21, millions of workers delivered
their products and services through work from home.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement-I is true, Statement-II is false.
Statement-II is true, Statement-I is false.
27 Read the following statements-Assertion (A) and Reason (R), and select the correct 1
alternative:
Assertion (A): The Great Leap Forward (GLF) campaign initiated in 1958 met with
many problems.
Reason (R): A severe drought caused havoc in China killing about 30 Million people.
When Russia had conflicts with China, it withdrew its professionals who had earlier
been sent to China to help in the industrialisation process.
(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 but 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.

28 Are environment crises a recent phenomenon? if so, why? 3

29 Explain the role of Micro-credit programmers in meeting the credit requirements of the 3
poor.
Or
‘In recent times the Indian Economy has experienced the problem of Casualization of
the workforce. This Problem has only been aggravated by the outbreak of COVID-19.’
Do you agree with the given statement.’ Discuss any two disadvantages of
casualization of the workforce in the light of the above statement.
30 Study the following table showing distribution by workforce by Industry, 2011-12 and 4
analyse the trend of the workforce on the basis of industry and residence.
Distribution of workforce by Industry, 2011-12
Place of residence
Industrial Category Rural Urban
Primary Sector 64.1 6.7
Secondary Sector 20.4 35.0
Tertiary Sector 15.5 58.3
Total 100.0 100.0
31 Explain how Goods and Services tax (GST) has Simplified the multiplicity of taxes on 4
goods and services.
Or
 Explain types of land reforms / institutional reforms implemented in the agriculture
sector in India.

32 “Human capital formation gives birth to innovation, invention and technological 4

improvements.” Do you agree with the given statement? Support your answer with
valid arguments.

33 Critically evaluate the role of the rural credit / banking system in the process of rural 6
development in India. Also, give some suggestions to improve the situation.
Or
Define Human Capital Formation. What is the source of human capital formation?
Explain.

34 Read the following text carefully and answer the given questions on the basis of the 3+3
same and common understanding:
Special Economic Zones (SEZs) are intended to function as zones of rapid economic
growth by using tax and business incentives to attract foreign investment and
technology. The first four special economic zones were created in 1980 in southern
coastal China and consisted of what were then the small cities of Shenzhen, Zhubai,
and Shantou in Guangdong province and Xiamen (Amoy) in Fujian province. In these
areas, local governments have been allowed to offer tax incentives to foreign investors
and to develop their own infrastructure without the approval of the central government.
Business enterprises have made most of their own investment, production and
marketing decisions, and foreign ownership of such ventures has been legalised.
Though some of them began as little more than small towns, the new SEZs soon
attracted foreign investment and became boom towns, with rapidly expanding light and
consumer goods industries and growing population. Encouraged by the zones success,
the Chinese government in 1984 opened 14 larger and older cities along the coast to
foreign trade and investment. In 1988, Haiman Island was made a separate province
and Special Economic Zone, and in 1990 the Pudong area within the Shanghai
municipality became a Special Economic Zone with policies even more flexible than
those already in force in the original four Special Economic Zones (SEZs)
(a) What are Special Economic Zones (SEZs) ? Name any two cities in which
Special Economic Zones were started in China in 1980.
(b) When were economic reforms initiated in China? What autonomy was given to
local government for motivating foreign investors in China under Special
Economic Zones (SEZs)?
 MARKING SCHEME SAMPLE QUESTION PAPER 5
1 ( a ) Both the statements aretrue 1

2 ( c ) Credit side of capital account 1

3 (b) Banker to the public 1

4 ( d) Assertion (A) is false but Reason (R) is true. 1

5 (a ) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation for Assertion (A) .
Or

(c ) ₹ 70

6 (d ) 0.5 1
Or
(c ) 1

7 (a ) Commercial banks 1

8 (c ) Autonomous transactions 1
or
(c ) Remittances to relative staying (i) Debit side of Current
abroad Account of Balance of
Payments
9 1
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
for Assertion (A).
10 (d ) Assertion (A) is false but Reason (R) is true. 1
11 (1 ) GDPmp = PFCE+GFCE+GDCF+ (X-M) 3
= 1000+550+250+(-30)
= ₹ 1720
(2 ) NNPfc = GDPmp +NFIA-CFC-NIT
= 1720+ (-40 )- 20 -100
=1720 – 160ss
National income (NNPfc ) = ₹ 1560
12 3
Sr.no Autonomous items Accommodating items
1 These refer to those 1. These are not related to profit
economic transactions maximisation.
which take place due to
economic motives i.e. these
are related to the
transaction which are
determined by profit
maximisation.
 2 These transactions take 2. These transactions take place on
place on both account capital account only.
current and capital account.
3 These are known as ‘above These are known as ‘above the line
the line items’ items’

or
The rate, at which currency of one country is converted into currency of the country, is
called foreign exchange rate.

Fixed exchange rate- Fixed exchange rate system refers to the system in which the rate
of exchange for a currency is fixed by the government. Under this system, government
is responsible to stabilise the exchange rate.

Flexible exchange rate system -refers to a system exchange rate between currencies of
different countries is determined by the market forces of demand and supply.

13 Given that MPC = 0.5 and MPS =0. 5 and Investment is increased by 4 (2+2)
₹ 1000 crore.
(a ) Change in Income (∆Y)
K = 1/1-MPC = 1/1-0.5 =2
We know K=∆Y/∆I
2=∆Y/1000
∆Y= ₹ 2000 crore.
(a) Change in consumption expenditure (∆C)
∆C =∆Y- ∆I
∆C = 2000-1000
∆C = ₹1,000 crores.
14 Two monetary measures which may be used to solve the problem of inflation are: 4
( a) As increase in Cash reserve ratio (CRR) – it will reduce credit creation capacity of
commercial bank as a result AD falls and correct the inflationary gap in the economy.
(b ) sale of govt securities in open market - By selling government securities the
central bank soak liquidity from the economy. As a result AD may falls and correct the
inflationary gap in the economy.

15 (a ) The central bank acts as the banker to the government ,maintain accounts of 4
government for the purpose of accepting deposits and advancing loans . The Central
bank purchases and sells govt securities in the open market operations on behalf of the
govt.
( b) open market operations (OMO) -refers to buying and selling of government
securities (bonds) by the central bank from /to the general public.

By selling government securities the central bank soak liquidity from the economy.
By purchasing government securities the central bank releases liquidity in the economy
.
or
Working of credit creation process : Total credit = initial deposits ×1/ LRR
 Initially ,customer deposits ₹ 1,000 and LRR is 20 % . Bank keeps ₹ 200 reserves to
meet customers’ obligations and give loans of ₹ 800. Those who borrow will spend
this money and same ₹ 800 will ultimately come back to bank as fresh deposits .And
this process goes continuously until initial deposits becomes equals to total reserves.
Credit creation process is give below:

Rounds Deposits (₹) Loans (₹ ) Reserves (₹ )

I 1,000 800 200
II 800 640 160
III 640 512 128
- - - -
Total 5000 4000 1000

Total deposits creation = Initial deposits ×1/ LRR = 1000 × 1/20% = 1000 × 5= ₹ 5000
16 ( a) The given statement is correct .Real GDP is a better indicators 6
Of economic growth than Nominal GDP as it not affected by changes in general price
level.
Numerical example:

Goods Price of Price Quantity of Nominal Real GDP

current of base current year GDP (P0Q1)
year (P1 year (Q1 in
(P1Q1)
in ₹) (P0 in units)
₹)
A 20 10 100 2,000 1,000
B 10 5 200 2,000 1,000
C 30 20 50 1,500 1,000
ℇP1Q1=5,500 ℇP0Q1=3,000
In the above example the difference between Real GDP and Nominal GDP is 5,500-
3,000= 2,500 .
This is the only the monetary difference as the quantity sold in the market remains
unchanged and the variation on the value of GDP is merely due to the change in the
prices in the economy.
( b) Depreciation on capital asset = cost of the asset- scrap value / estimated life of the
capital asset,
Depreciation= 1000-0/20
Depreciation = ₹ 50 crore

17 (a) Through progressive income taxation, the redistribution objective is sought to be 6

achieved. In this case, when the income is higher, the tax rate is higher. On a
proportional basis, the companies will be taxed. The tax rates will be in a particular
proportion of the profits.
 Petroleum products, tobacco and luxury goods will be taxed heavily, semi-luxuries and
comforts will be taxed moderately, and the necessities of life will be taxed at low rates.

(b) Revenue expenditure is that expenditure of govt. during the fiscal year which does
not affect asset or liability status of the government .Example defence expenditure.
Capital expenditure is that expenditure which creates assets for government and
reduces govt. Liability. Example road construction school building.

Or
(a) It is revenue expenditure as it neither creates any asset nor reduces any liability
of the government.
(b) It is a capital expenditure as it increases assets of the government.
(c) It is a capital expenditure as it reduces liability of the government.
(d) It is revenue expenditure as it neither creates any asset nor reduces any liability
of the government.
(e) It is a capital expenditure as it increases assets of the government.
(f) It is revenue expenditure as it neither creates any asset nor reduces any liability
of the government.

18 (b) Primary sector 1

19 (c) three 1
or
(c ) Development of small scale industries

20 (a ) 1978 1
Or
(D) iv,i,ii,iii

21 ( c) 1982 1

22 (D)-iv 1

23 ( c ) Statement-I is true, Statement-II is false. 1

24 ( c) Statement-I is true, Statement-II is false. 1

25 (b) CNG 1
Or
(c ) Brundtland Commission.
26 (a) Both the statements are true. 1

27 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).

28 Yes, the environmental crisis is a recent phenomenon. The environment was able to 3
 perform its functions without any interruption till the resource extraction was not
above the rate of regeneration of the resource and the wastes generated were within the
assimilating capacity of the environment. But today, the environment fails to perform
its vital function of life sustenance resulting in an environmental crisis. The rising
population of the developing countries and the affluent consumption and production
standards of the developed world have placed huge stress on the environment.

29 Micro-credit plays an important role in meeting the credit requirements of the poor. 3
Under micro-credit programmes, farmers get adequate credit at cheaper rates. Micro-
credit programme promotes thrift in small proportions by a minimum contribution
from each member. From the pooled money, credit is given to the needy members,
which is repayable in small instalments at reasonable interest rates.
Micro-credit programme removes the need of any kind of collateral. It also helps in
women empowerment.

or

he given statement is quite appropriate with reference to the ‘casualisation of labour’ in

India.

(i) For casual workers, the rights of the labour are not properly protected by labour
laws. Particularly, during pandemic times, as demand for goods and services fell the
casual workers were left jobless, without any compensation or support.

(ii) During the COVID-19 lockdown millions of casual workers lost their jobs, raising
the question of their survival. Also, additional health expenditure added to their
troubles. Had such workers been working under the formal sector, it would have given
them some respite in their difficult times.

30 analyse the trend of the workforce 4

31 Explain GST 4

Or

agricultural sector in India adopted the following types of land-reform strategies:

(i) Abolition of Intermediaries: The zamindari system was abolished and ownership
rights were given to the actual tiller of land.

(ii) Regulation of Rent: Rent was regulated and a maximum limit of 33% of the value
of the crop was fixed.

(iii) Land Ceiling: The maximum size of landholding that an agricultural household
could own was limited. The surplus land was acquired after paying compensation and
was re-distributed among poor farmers.

(iv) Consolidation of Landholding: To increase productivity, farmers were given a big

piece of land in place of small and fragmented fields.
 (v) Cooperative Farming: Cooperative farming was encouraged to get benefit from the
gains of consolidation of holdings.

32 Yes, the given statement “Human Capital Formation gives birth to innovation, 4
invention and technological improvements” is correct as this process not only increases
productivity of the available human resource but also helps in stimulating innovation
among them, which ultimately helps in creating the ability to adopt
33 Rural banking has raised the level of rural farm and non-farm output, income and 6
employment, especially after the Green Revolution.

The following are the advantages of an increase in rural banking facilities

(i) Raising farm and non-farm output by providing services and credit facilities to
farmers.

(ii) Generating credit for self-employment schemes in rural areas.

(iii) Achieving food security which is clear from the abundant buffer stocks of grains.

However, the expansion and promotion of rural banking sector have taken a back seat
after reforms, and it suffers from the following limitations

(i) Small and marginal farmers receive only a very small portion of the institutional
credit.

(ii) Rural banking is suffering from the problems of a large amount of over dues and
default rate.

(iii) The source of institutional finance is inadequate to meet the requirements of

(iv) There exist regional inequalities in the distribution of institutional credit.

To improve the situation, the banks should build relationship with farmers. Also, the
farmers should be made to understand the importance of thrift and of efficient
utilisation of the loaned amount.

or

Human capital of a country can be increased with the help of different ways. Some of
the sources of human capital formation are as follows:

1. Expenditure on Education

Proper utilisation of manpower depends completely on the education system and

training of people. An educated person can earn more income than an uneducated
person because the former’s labour skill is more than that of the latter.

2. Expenditure on Health

Complete physical, mental, and social well-being is a condition of being in good

 health. The quality of the manpower is negatively impacted by poor health and
underemployment because sick workers who lack access to medical facilities are
compelled to take time off of work, which reduces productivity.

3. On-the-Job Training

As we already know that improvement in human capital automatically improves the

productivity of physical capital. Therefore, many firms invest in on-the-job training for
their employees. This training can be provided to the employees at a fast pace and
without incurring much cost.

4. Expenditure on Migration

People migrate in search of occupations that pay more than what they earn in their
home places. For example, Engineers and physicians migrate to other countries in
search of a higher salaried job. Unemployment is the driving force behind rural-urban
migration in India.

5. Expenditure on Information

People spend money to learn about the labour market and educational institutions. For
example, people need information regarding different salary levels associated with
different types of jobs, etc. This type of information is required to make decisions
about education investment as well as to make optimal use of learned skills and help
people to realise their productive potential.
34 (1)A special economic zone (SEZ) is an area in which the business and trade laws are 3
different from the rest of the country. SEZs are located within a country's national
borders. • Their aims include increased trade balance, employment, increased
investment, job creation and effective administration.
he first four special economic zones were created in 1980 in southeastern coastal China
and consisted of what were then the small cities of Shenzhen, Zhuhai, and Shantou in
Guangdong province and Xiamen (Amoy) in Fujian province.
(2) As part of its economic reforms and policy of opening to the world, between 1978
and 1984 China established special economic zones (SEZs) in Shantou, Shenzhen, and
Zhuhai in Guangdong Province and Xiamen in Fujian Province as well as designating
the entire island province of Hainan as a special economic zone. 3
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 6 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
8. All questions in both the sections are compulsory.
9. Marks for questions are indicated against each question.
10. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
11. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
12. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
13. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
14. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.NO. QUESTIONS MARKS
1 Under the Balance of Payments structure of a nation, the two main categories of
accounts for the classification of the transactions are ______ and _______.
(i) current account (ii) unilateral transfer account
(iii) capital account (iv) loan account
Identify the correct alternatives from the following:
Alternatives:
(a) (iii) and (iv)
(b) (iv) and (i)
(c) (i) and (iii)
(d) (i) and (ii)
1
2 Which out of the following items is not included in the money supply of a country?
(a) Demand deposits (b) Coins and Currency (c) Time deposits (d) All of
these 1
3 ‘Gifts and remittances to abroad’ are recorded on the:
(a) Debit side of Current Account (b) Credit side of Current
Account
(c) Credit side of Capital Account (d) Debit side of Capital Account 1
4 Read the following statements carefully:
Statement 1: Accommodating items of trade are undertaken in order to maintain the
balance in the BoP account.
Statement 2: Accommodating items are net consequences of autonomous
transactions that are undertaken to correct disequilibrium in autonomous items of
BoP.
In the light of the given statements, choose the correct alternative from the 1
following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement
2 is false
 (c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true
5 Aggregate demand can be increased by:
(a) increasing cash reserve ratio
(b) increasing bank rate
1
(c) selling government securities by Reserve Bank of India
(d) None of these
6 The following information is given for an imaginary country:
Sl. No Transactions Rs. in Crore

(i) Imports of goods 400

(ii) Export of goods 340

(iii) Shipping 3

(iv) Travel, tourism, etc. 5

(v) Interest, dividends, profits 50

1

(vi) Unilateral transfers 40

The value of Balance of Trade would be

(a) ` (-) 40 crores (b) ` 60 crores (c) ` 40 crores (d) ` (-) 60 crores
7 Read the following statements carefully:
Statement 1: In India, SLR and CRR are fixed by the commercial banks themselves.
Statement 2: Secondary deposits of a commercial bank are always less than its
primary deposits.
In the light of the given statements, choose the correct alternative from the 1
following:
(a) Statement 1 is false and statement 2 is true
(b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false
(d) Both statements 1 and 2 are true
8 Read the following statements-Assertion (A) and Reason (R). Choose one of the
correct alternatives given below:
Assertion (A): Import of goods and services reflects demand of foreign currency.
Reason (R): Import of goods and services show inflow of foreign exchange.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A) 1
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false
9 Choose the correct alternatives to be filled in given blanks A, B and C. 1
 (a) A - Export of goods, B - Gifts, remittances and grants, C - Net non-factor income
(b) A - Gifts, remittances and grants, B - Export of goods, C - Net non-factor income
(c) A - Net non-factor income, B - Export of goods, C - Gifts, remittances and grants
(d) A - Export of goods, B - Net non-factor income, C - Gifts, remittances and grants
10 Suppose in a hypothetical economy, the income rises from `5,000 crores to `6,000 1
crores. As a result, the consumption expenditure rises from `4,000 crores to `4,600
crores. Marginal propensity to consume in such a case
would be_______.
(a) 0.8 (b) 0.6 (c) 0.4 (d) 0.2

11 It is stated that “amalgamation of many central and state taxes into a single tax called 3
‘Goods and Services tax (GST)’ would facilitate a common national market.” Do
you agree with the statement? Justify your answer.

12 State whether the following statements are true or false. Support your answer with 3
reason.
(a) Taxation is an effective tool to reduce the inequalities of income.
(b) Revenue deficit increases when the government fails to recover loans forwarded to
different nations.
13 On the basis of given figure, answer the questions that follow: 4
(a) Interpret the shown trends of GST collections.

(b) When was GST implemented in India?

14 (A) "In an economy, ex-ante Aggregate Demand is more than ex-ante Aggregate
Supply." Elaborate the possible impact of the same, on the level of output, income 4
and employment.
 OR
(B) “With an objective to combatdeflation, the Reserve Bank of India may lower the
lending interest rate to commercial banks.”
Discuss the rationale behind the step taken by the Reserve Bank of India.
15 Explain the role of the Reserve Bank of India as the “lender of last resort”.
4
16 (a) Calculate Net Domestic Product at Factor Cost from the given data:
Sl.No Items Rs. in Crore.

(i) Net factor income to abroad 30

(ii) Sales 2000

(iii) Subsidies 20

(iv) Consumption of fixed capital 50 4

(v) Closing stock 100

(vi) Opening stock 200

2
(vii) Intermediate costs 1000

(viii) Indirect Tax 150

(b) Transfer payments should not be included in the estimation of National Income?
Do you agree? Give reason in support of your answer.
17 (a) Giving valid reasons, explain how the following would be treated while
estimating domestic income?
3
(i) Payment made by American tourists for goods purchased in India.
(ii) Tomatoes grown by Ms. Puja in her kitchen garden.
3
(b) Given Nominal income, how can we find Real income ?
SECTION B
18 In______, the Great Proletarian Cultural Revolution was introduced in China.
(a) 1985 (b) 1965 (c) 1995 (d) 1975

1
19 Read the following statements carefully:
Statement 1: SAARC stands for South Asian Association for Regional Cooperation.
Statement 2: ASEAN stands for Association of South-East Asian Nations.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true 1
 (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false
(d) Both statements 1 and 2 are true
20 Arrange the following events of China in chronological order and choose the correct
alternative:
(i) Special Economic Zones
(ii) Great Proletarian Cultural Revolution
(iii)Great Leap Forward Campaign
(iv) Economic reforms were initiated
Choose the correct alternative:
(a) (iii), (ii), (iv), (i) (b) (iv), (i), (ii), (iii)
(c) (iv), (ii), (i), (iii) (d) (ii), (iv), (iii), (i) 1
21 Study the following picture and answer the given question:
Rural households take up sheep-rearing as an entrepreneurial activity. Such kind of
activities may be envisaged under as diversification activity.
(Choose the correct alternative to fill up the blank)
a) Animal husbandry b) Fisheries
c) Horticulture d) Poultry

22 Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Rural development in India is of key significance.
Reason (R): Nearly two-third of population in India is dependent on agriculture.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A). 1
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.
23 From the set of events/systems given in Column I and corresponding relevant fact
given in column II, choose the correct pair of statement:
Column I Column II
1
A. The growth rate of the agriculture sector (i) 1995
decelerated to about 3% per annum.
 B. A major change occurred when India (ii) after 1989
adopted social banking.

C. A thrift and credit society was started in (iii) 1995

Kerala.

D. By March end more than seven lakh SHG’s (iv) 2010

been credit linked.

Alternatives:
(a) C - (iii) (b) A - (i)
(c) D - (iv) (d) B - (ii)
24 States where land reforms were successful on account of they being committed to the
policy of ‘land to the tiller’ are:
(a) Punjab and Kerala (b) Kerala and West Bengal
(c) Andhra Pradesh and West Bengal (d) Kerala and Andhra Pradesh 1
25 A person got two job offers, one from Mumbai while other from Chennai. Before
deciding which one to opt for, he goes through the cost and benefit analysis. Which
source of human capital formation he takes into account?
(a) Expenditure on Training (b) Expenditure on Education
(c) Expenditure on Migration (d) Expenditure on Health 1
26 Read the following statements—Assertion (A) and Reason (R). Choose one of the
correct alternatives given below:
Assertion (A): The growth rate of population of Pakistan is lowest as compared to
India and China in 2017-18.
Reason (R): China adopted a one child policy to control population in the year 1979.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false
27 Which of the following is not true for small scale industries?
(a) SSI is capital intensive and therefore, increases productivity.
1
(b) SSI is labor intensive and therefore, employment oriented.
(c) SSI shows locational flexibility and is therefore equality oriented.
(d) SSI needs small investment and is therefore equity oriented.
28 Interpret the given picture on account of the World Trade Organisation (WTO).
3
29 “Subsidies were needed to encourage farmers.” Discuss the importance of subsidies in
relevance to the Indian farmers.
OR
“Small scale and cottage industries are important in the development of the Indian 3
economy.” Elaborate.
30 Answer the following questions on the basis of the following data:
(a) Comment upon the People Below Poverty line among the three countries.
(b) Comment upon the percentage of Undernourished Children among China and 4
Pakistan.
Country People Below Poverty Line (%) Undernourished Children (%)

India 37 39

China 32 9

Pakistan 44 45

31 Elaborate any four positive contributions made by Britishers in India.

OR
(iii) Throw light on the ‘economic drain’ during the colonial period. 4
32 Identify the ‘need for credit depicted’ in the given image. What are the sources of the
creditfor rural farmers?

33 Elucidate the function of Pollution Control Board in India to address the environmental
concerns in India. 3
OR
(a) Give any three causes of backwardness of Indian agriculture. 3
(b) Give any three challenges facing the Indian education system.
34 Read the following text carefully and answer the given questions on the basis of the
same and common understanding: 3
Blessed with a varying climate and soil conditions, India has adopted growing of diverse
horticultural crops such as fruits, vegetables, tuber crops, flowers, medicinal and
aromatic plants, spices and plantation crops. These crops play a vital role in providing
3
food and nutrition, besides addressing employment concerns. The Horticulture sector
contributes nearly one-third of the value of agriculture output and six per cent of Gross
Domestic Product of India. India has emerged as a world leader in producing a variety
of fruits like mangoes, bananas, coconuts, cashew nuts and a number of spices and is the
second largest producer of fruits and vegetables. Economic condition of many farmers
engaged in horticulture has improved and it has become a means of improving
livelihood for many unprivileged classes. Flower harvesting, nursery maintenance,
hybrid seed production and tissue culture, propagation of fruits and flowers and food
processing are highly remunerative employment options for women in rural areas.
(a) Differentiate how the term ‘Golden Revolution’ is different from ‘Green
Revolution’?
(b) How horticulture as an alternative source of employment improves the economic
condition of farmers?
 MARKING SCHEME SAMPLE QUESTION PAPER 6
1 (c) (i) and (iii) 1
2 (c) Time deposits 1
3 (a) Debit side of Current Account 1
4 (d) Both statements 1 and 2 are true 1
5 (d) None of these 1
6 (d) ` (-) 60 crores 1
7 (c) Both statements 1 and 2 are false 1

8 (d) Assertion (A) is true but Reason (R) is false 1

9 (d) A - Export of goods, B - Net non-factor income, C - Gifts, remittances and grants 1
10 (b) 0.6 1

11 Agree with the statement 1 mark

(i) The Government wants to build a stable tax regime to address the concern of for each
industries and foreign investors. point.
(ii) Simplification of the indirect tax system leads to easier administration. (1x3)
(iii) Free movement of goods from one state to another.
Any other relevant point.

12 (a) True, as higher taxes are imposed on the rich and lower rates on the poor reduce 1.5
the inequalities of income.
(b) False, Because recovery of loans is a capital receipts. 1.5

13 (a) Explanation and Interpretation of increasing tendency of GST collections over 3

the time. 1
(b) 1 July 2017
14 (A) When ex-ante Aggregate Demand is more than ex-ante Aggregate Supply, it
means that households are planning to consume more than what the firms 4
expect them to. This will lead to unintended fall in inventories. To restore the
desired /intended level of inventories, producers may expand production. As a
result, there may be an increase in the level of output, employment and income
in the economy.
OR
(B) Repo rate is the rate at which RBI lends money to commercial banks in the short
run. In order to combat deflation in an economy, the Reserve Bank of India (RBI) may
decrease the repo rate. With lower repo rate, commercial banks can provide credit at
cheaper rates. Consequently, this may lead to expansion in their lending capacity.
Thereby, increase in the Aggregate Demand curbs the level of deflation.
15 The total amount of deposits held by all commercial banks in the country is much
4
larger than the total size of their reserves. If all the account-holders of all commercial
banks in the country want their deposits back at the same time, the banks will not
have enough means to satisfy the needs of every account holder and there will be
bank failures.
 The Reserve Bank of India plays a crucial role In case of a crisis like the above it
stands by the commercial banks as a guarantor and extends loans to ensure the
solvency of the latter. This system of guarantee assures individual account-holders that
their banks will be able to pay their money back in case of a crisis and there is no need
to panic thus avoiding bank runs. This role of the monetary authority is known as the
lender of last resort.
16 NDP@FC or NVA= sales+change in stock- IC-NIT-DEP 2
NVA= 2000+(100-200)-1000-(150-20)-50 1
NVA=720 Cr. 1
(b) Agree with the statement,Transfer payments should not be included in the 2
estimation of National Income because it does not generate new service/output and just
one sided payment.
17 (a) Giving valid reasons, explain how the following would be treated while
estimating domestic income?
(i) Yes, because American touristsspent on goods produced in Indian domestic 1.5
territory. 1.5
(ii) Not included as this activity is not done for monetary gain .

(b) Real income is calculated on the basis of the formula. 1

Real income = Nominal Income /price index multiply 100 1
Numerical example.
1
18 (b) 1965 1

19 (d) Both statements 1 and 2 are true 1

20 (a) (iii), (ii), (iv), (i) 1
21 a) Animal husbandry 1
22 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).

23 (a) C - (iii) 1
24 (b) Kerala and West Bengal 1
25 (c) Expenditure on Migration 1
26 (c) Assertion (A) is false but Reason (R) is true 1
27 (b) SSI is labor intensive and therefore, employment oriented. 1
28 The given picture indicates India's and WTO relationship and as an important member 3
India has been in the frequent of framing fair Global rules regulations and advocating
the interest of developing World .India has taken responsible steps to liberalise trade
by removing quantitative restrictions on imports and reducing tariff rates. There is
also an ongoing debate between Scholars about weather India should be a member of
WTO or not and as per some Scholars there is no use for a developing country like
India to be a member of WTO since
(a) major volume of International Trade occurs among developed nation .
(b)developing countries are being cheated as they are force to open up their mistakes
for developed countries on other hands are not allowed to the markets of developed
countries
Marks to be given for any other relevant points.
29 1.Subsidy provide an incentive to use the new HYD Technology for the farmers in
general and small farmers in particular
 2. subsidies are needed to increase the farmers to test the new Technology as farming
in India continues to be a risky business. 3
3. provision of subsidies to reduce the inequality between the rich and the poor
farmers and facilitated equity to some extent.
4. but as far as possible the government should take steps to ensure that the benefits of
subsidies reach the poor farmers in the right earnest. (any other relevant points)
OR
1. These industries are labor intensive and generate more employment.
2. These Industries make use of local resources thus better and proper utilization takes
place.
3. These industries are helpful in reducing regional imbalances in industrialisation.
4. It also supplements the income of those people who do not get sufficient income
from agriculture and allied activities. (any other relevant points)
30 (A) The given data shows that percentage of people living below poverty line is
maximum in Pakistan 44% followed by India 37% and China comparatively
has the least 32% of its people who are poor. 2+2
Comparing the undernourished children among India China and Pakistan we notice the
percentage of Undernourished children is just 9% in China that Notting healthy
children there because of small size family and contrast in Pakistan the percentage is
very high at 45% this is because of the large sized families and poverty prevalent in
Pakistan in India the percentage is high too at 39%.
31 1.Introduction of railway and other means of transportation.
2. Commercialisation of agriculture which changed the outlook of the self-sufficient
farmers . 4
3. The introduction of money as a medium of exchange replaced the traditional
system of barter.
4.Last but not the least, the British also left a legacy of well Run administration in the
country.
(1 mark for every right and any relevant point)
OR
1. Export surplus was being used to finance the war or in colonial expansion.
2. forced commercialisation of agriculture resulted in vested move of raw
materials from India.
3. Systematic de-industrialisation and decline of world famous handicrafts made
people unemployed and pushed them into poverty.
Railway facilitated turning India into a large market for finished items imported from
Britain .
32 Indian farmers need the credit facility for
1. Child’s marriage, education and providing other facilities. 4
2. For building houses, godowns etc.
3. For medicare facilities.
4. For purchasing new equipment, devices, vehicles and technology (Modern
inputs for agriculture).
5. For purchasing seeds, fertilizers etc. (1 marks for every relavent point).
Formal sources of credit like Banks, NBFC, NABARD, Cooperatives and
SHGs
informal sources like friends , relatives, moneylenders, traders and zamindars etc.
33 1. CPCB was set up by the government in 1974 . It address the all environmental
 concern at the state level 3
2. It provides technical assistance to the respective government.
3. They carry out and sponsor investigations and research about problems of
water and air pollution.
4. Mass awareness programs are also organized by them with the help of the
media .
5. Board collects college and disseminates technique and statistical data
regarding pollution. 1.5
OR
(a)- Disparity between rich and poor farmers, Lack of credit facilities, Lack of 1.5
irrigation, lack of awareness about modern inputs etc.
(b)- High dropout rate, Low level of expenditure, Dominance of private sector in
Education etc.
34. (a) Differentiate the term ‘Golden Revolution’ and the ‘Green Revolution. 3
(b) Small and marginal farmers can usually earn much higher farm incomes growing
horticultural crops compared to cereal crops, and horticultural production results in
rural economic growth and the creation of off-farm jobs through value-added 3
industries and the local/export marketing of these goods.
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 7 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
15. All questions in both the sections are compulsory.
16. Marks for questions are indicated against each question.
17. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
18. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
19. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
20. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
21. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.N QUESTIONS MARK
O. S
1 Which among is the direct tax? 1
(A) Income tax
(B) Gift and Corporation tax
(C) Wealth tax
(D) All of these
करमसे कौनसाहै ?
(ए) आयकर
(बी) उपहारऔरिनगमकर
(सी) धनकर
(डी) येसभी
2 Foreign exchange transactions which are independent of other transactions in the balance of 1
payment account are called…
(a) current transactions (b) capital transactions
(c) autonomous transactions (d) accommodating transactions
िवदे शीमु ालेनदे नजोभु गतानसं तुलनखाते मअ लेनदे नसे तं ह, कहलातेह…
(ए) चालू लेनदे न (बी) पूंजीलेनदे न (सी) ाय लेनदे न (डी) समायोजनलेनदे न
3 The ratio of total deposits that a commercial bank has to keep with Reserve Bank of India is 1
called …
(a) statutory liquidity ratio ( b) deposit ratio
(c) cash reserve ratio (d) legal reserve ratio
एकवािण कबककोभारतीय रजवबककेपासरखे जाने वाले कुलजमाओंकेअनु पातको ाकहते ह?..
.
(ए) वै धािनकतरलताअनु पात (बी) जमाअनु पात (सी) नकदआरि तअनुपात (डी)
कानू नीआरि तअनु पात
4 foreign exchange rate refers to 1
(a) the price of one currency in terms of gold in the domestic market
(b) the price of one currency in relation to other currencies in the international money market
 (c) the price of domestic currency in relation to foreign currency in the international money
market
(d) both b and c
िवदे शीिविनमयदरकोसं दिभतकरताहै
(ए) घरे लूबाजारमसोने केसं दभमएकमु ाकीकीमत
(बी) अं तररा ीयमु ाबाजारमअ मु ाओंकेसं बंधमएकमु ाकीकीमत
(सी) अं तररा ीयमु ाबाजारमिवदे शीमु ाकेसंबंधमघरे लूमु ाकीकीमत
(डी) बीऔरसीदोनों
5 Read the following statements carefully and choose the correct alternative from the following 1
:
Statement 1 – Intermediate goods are not required to enter into further stage of production or
resale to change their form.
Statement 2 – Measurement of GDP includes only the aggregate value of final goods.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and 2is false.
(d) Statement 2 is true and 1 is false.
OR
Read the following statements carefully and choose the correct alternative from the
following :
Statement 1 – Inventory investment is a component of gross domestic capital formation.
Statement 2 – Gross investment excludes depreciation.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and 2is false.
(d) Statement 2 is true and 1 is false.
िन िल खतकथनोंको ानपूवकपिढ़एऔरिन िल खतमसेसहीिवक काचयनकीिजए:
कथन1 -
म वत व ु ओक ं ोअपना पबदलने केिलएउ ादनयापु निव यकेआगेकेचरणम वे शकरने कीआव
कतानहींहै।
कथन2 - सकलघरे लू उ ादकेमापनमकेवलअं ितममालकाकुलमू शािमलहोताहै।
(ए) दोनोंकथनस ह।
(बी) दोनोंबयानझूठेह।
(सी) कथन1स है और2गलतहै ।
(डी) कथन2स है और1गलतहै ।
या
िन िल खतकथनोंको ानपूवकपिढ़एऔरिन िल खतमसेसहीिवक काचयनकीिजए:
कथन1 - मालसू चीिनवे शसकलघरे लू पूंजीिनमाणकाएकघटकहै।
कथन2 - सकलिनवे शममू ासशािमलनहीह ं ै।
(ए) दोनोंकथनस ह।
(बी) दोनोंबयानझूठेह।
(सी) कथन1स है और2गलतहै ।
(डी) कथन2 स है और1 गलतहै ।
6 What is a fiscal measure of correcting deficient demand? 1
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these
 मां गकीकमीकोठीककरने काएकराजकोषीयउपाय ाहै ?
(ए) सावजिनक यमवृ औरकरोंमकमी
(बी) सावजिनकऋणमकमी
(सी) घाटािव पोषण
(डी) येसभी
7 If legal reserve ratio is 20% the value of money multiplier would be. 1
(a) 2 (b) 3 (C)5 (D)4
यिदकानू नीआरि तअनु पात20%है तोधनगुणककामू होगा।
(ए) 2 (बी) 3 (सी) 5 (डी) 4
8 Give the meaning of balance of payment. 1
भु गतानसं तुलनकाअथबताइए।
9 Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. 1
As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores.
Marginal propensity to consume in such a case would be ______
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6
मानलीिजएएकका िनकअथ व थाम, आय₹ 5,000करोड़सेबढ़कर₹
6,000करोड़होजातीहै ।प रणाम प, खपत य₹ 4,000करोड़से बढ़कर₹
4,600करोड़होगया।ऐसे मामलेमउपभोगकरने कीसीमां त वृ ि ______ होगी
(ए) 0.8
(बी) 0.4
(सी) 0.2
(डी) 0.6
10 The value of multiplier is: 1
(A) 1/MPC
(B) 1/MPS
(C) 1/1−MPS
(D) 1/MPC−1
गुणककामानहै :
(ए) 1 / एमपीसी
(बी) 1 / एमपीएस
(सी) 1/1−एमपीएस
(डी) 1/एमपीसी−1
11 Find out net value added at market Prices: 3
s.no. ITEMS IN Rs.

(i) Intermediate cost 10000

(ii) Change in stock 1000
(iii) Output sold 750
(iv) Price per unit of output 40
(v) Import duty 2000
(vi) Consumption of fixed capital 3000
बाजारकीमतोंपरजोड़ागयाशु मू पताकर:
s.no. ITEMS IN Rs.
(i) Intermediate cost 10000
 (ii) Change in stock 1000
(iii) Output sold 750
(iv) Price per unit of output 40
(v) Import duty 2000
(vi) Consumption of fixed capital 3000

12 Distinguish between current account and capital account. 3

चालू खातेऔरपूंजीखाते मअं तर कीिजए।
13 What is involuntary unemployment? 4
अनै कबे रोजगारी ाहै ?
14 Given consumption function C = 100 + 0.75Y (where C = consumption expenditure and y = 4
National Income and investment expenditure ₹ 1000. Calculate:
(i) Equilibrium level of National Income
(ii) Consumption expenditure at equilibrium level of National Income
िदयागयाउपभोगफलनC = 100 + 0.75Y (जहाँ C = उपभोग यऔरy = रा ीयआयऔरिनवे श य₹
1000।गणनाकर:
(i) रा ीयआयकासं तुलन र
(ii) रा ीयआयकेसं तुलन रपरउपभोग य
15 Explain the following functions of the central bank 2+2
(i) Authority of currency issue (ii) banker to the government.
क ीयबककेिन िल खतकाय की ा ाकर
(i) मु ाजारीकरने काअिधकार (ii) सरकारकाबकर।
16 (a) Distinguish between Real GDP and Nominal GDP. Which of these is a better index of 3+3
welfare of the people and why?
(b) What are externalities? Give an example of a positive externality and its impact on
welfare of the people.
(ए)
वा िवकजीडीपीऔरनाममा जीडीपीकेबीचअंतरकर।इनमसेकौनलोगोंकेक ाणकाबे हतरसू चकां कहै
और ों?
(बी) बा ता ाह? सकारा कबा ताऔरलोगोंकेक ाणपरइसके भावकाएकउदाहरणदीिजए।
17 Is the following a revenue receipt or a capital receipt in the context of government budget and 3+3
why?
(i) Tax receipts
(ii) Disinvestment
िन िल खतसरकारीबजटकेसं दभमराज ा यापूं जी ा है और ों?
(i) कर ा यां
(ii) िविनवे श
SECTION B
18 The real motive behind the development of infrastructure under the colonial regime was : 1
(a) to provide basic amenities to the people
(b) to subserve various colonial interests
(c) to develop Indian economy
(d) (d) all of the above

औपिनवे िशकशासनकेतहतबुिनयादीढां चेकेिवकासकेपीछे असलीमकसदथा:

(ए) लोगोंकोबुिनयादीसु िवधाएं दानकरने केिलए
 (बी) िविभ औपिनवेिशकिहतोंकोपू राकरने केिलए
(सी) भारतीयअथ व थाकोिवकिसतकरनेकेिलए (डी) उपरो सभी
19 Which of the following is incorrect regarding small scale industries? 1
(a) Karve committee for village and small scale industries was set up in 1951.
(b) Small scale industries are more labour intensive.
(c) Small scale industries were given concessions such as lower excise duty
(d) None of the above.1

OR
Industrial policy resolution ,1956 , classified the Indian industries into
………………categories.
(a) 2
(b) 4
(c) 3
(d) 5

लघुउ ोगोंकेसंबंधमिन िल खतमसे कौनसागलतहै ?

(ए) गां वऔरछोटे पैमाने केउ ोगोंकेिलएकवसिमित1951म थािपतकीगईथी।
(बी) लघुउ ोगअिधक म धानह।
(सी) लघु उ ोगोंकोकमउ ादशु जै सी रयायतदीगईं
(डी) उपरो मसे कोईनही।ं
या
उ ोगनीितसं क , 1956, भारतीयउ ोगोंको……………… ेिणयोंमवग कृतकरताहै ।
(ए) 2 (बी) 4 (सी) 3 (डी) 5
20 Choose the correct alternative showing chronological order of the following events 1
(i) Great Leap Forward launched ,
(ii) economic reforms in Pakistan
(iii) great proletarian cultural Revolution
(iv) peoples Republic of China
िन िल खतघटनाओंकेकालानु िमक मकोदशाने वालेसहीिवक काचयनकर
(i) ेटलीपफॉरवडलॉ
(ii) पािक ानमआिथकसु धार
(iii) महानसवहारासां ृ ितक ां ित
(iv) पीपु रप कऑफचाइना
Choose the correct alternative:
(a) (i),(iv),(ii),(iii)
(b) (iv),(i),(iii),(ii)
(c) (iii),(i),(ii),(iv)
(d) (ii),(i),(iii),(iv)
21 Consider the following statements: 1
1.The Sustainable Development Goals were first proposed in 1972 by a global think tank
called the 'Club of Rome'
2. The Sustainable Development Goals have .to be achieved by 2030.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) neither 1 nor 2
 िन िल खतकथनोंपरिवचारकर:
1.सततिवकासल ोंकोपहलीबार1972म' बऑफरोम'
नामकएकवै ि किथं कटक ारा ािवतिकयागयाथा।
2. सततिवकासल ोंको2030तकहािसलकरनाहै ।
ऊपरिदएगएकथनोंमसे कौन-सा/से सहीहै/ह?
ए) केवल1
बी) केवल2
सी) 1और2दोनों
डी) नतो1 औरनही2
22 Introduction of economic reforms in Pakistan took place in 1
(a) 1978 (b) 1998 (c) 1988 (d) 1991
पािक ानमआिथकसुधारोंकीशु आत ई|
(ए) 1978 (बी) 1998 (सी) 1988 (डी) 1991
23 Assertion (A): Human capital treats human beings as means to an end. 1
Reason (R): Human capital formation decreases by way of investment in education and
health.
(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.
अिभकथन (A) : मानवपूं जीमानवकोसा केसाधनके पममानतीहै ।
कारण (R) : िश ाऔर ा मिनवे शकेमा मसे मानवपूंजीिनमाणकमहोजाताहै ।
(ए) दोनोंकथन (ए) औरकारण (आर) स हऔरकारण (आर) दावा (ए) कासही ीकरणहै ।
(बी) दोनोंअिभकथन (ए) औरकारण (आर) स हऔरकारण (आर) अिभकथन (ए)
कीसही ा ानहींहै।
(सी) दावा (ए) सचहै लेिकनकारण (आर) गलतहै।
(डी) दावा (ए) गलतहै लेिकनकारण (आर) सचहै ।
24 In term of the sectoral contribution to GDP, economy of China is relying more on 1
(a) Primary sector (b) Secondary sector (c) Tertiary sector (d) none of these
सकलघरे लू उ ादम े ीययोगदानकेसं दभम, चीनकीअथ व थाअिधकिनभरहै|
(ए) ाथिमक े (बी) मा िमक े (सी) तृतीयक े (डी) इनमसेकोईनहीं
25 The ozone layer is depleting due to high levels of ______ & _______ compounds in the 1
stratosphere:
a) Carbon and methane
b) Chlorine and bromine
c) Methane and nitrogen
d) Sulphur and carbon
समतापमं डलम______ और_______ यौिगकोंकेउ रकेकारणओजोनपरतका ासहोरहाहै :
ए) काबनऔरमीथे न
बी) ोरीनऔर ोमीन
सी) मीथे नऔरनाइटोजन
डी) स रऔरकाबन
26 Which of the following statements is true about unemployment? 1
a. Seasonal unemployment occurs when there are more people working in a job than is
 required
b. Open unemployment occurs when there are more people working in a job than is
required
c. Disguised unemployment occurs when there are more people working in a job than is
required
d. Educated unemployment occurs when there are more people working in a job than is
required
Or
Diversification of agriculture implies……
A. Shift of workforce from agriculture to other allied activities and change in cropping
pattern
B. Commercialization of agriculture.
C. Use of modern technology
D. None of these
िन िल खतमसे कौनसाकथनबे रोजगारीकेबारे मसहीहै ?
एक।मौसमीबे रोजगारीतबहोतीहै जबनौकरीमआव कतासे अिधकलोगकामकरतेह
बी।खु लीबे रोजगारीतबहोतीहै जबनौकरीमज रतसे ादालोगकामकरतेह
सी। बेरोजगारीतबहोतीहै जबनौकरीमआव कतासेअिधकलोगकामकरतेह
डी।िशि तबे रोजगारीतबहोतीहै जबनौकरीमआव कतासेअिधकलोगकामकरते ह
या
कृिषकेिविवधीकरणकाता यहै ……
ए. कृिषसे अ सं ब गितिविधयोंमकायबलका थानांतरणऔरफसलपैटनमप रवतन
B. कृिषका ावसायीकरण।
C. आधु िनकतकनीकका योग
D. इनमसे कोईनहीं
27 In China , commune system is related to: 1
(a) agriculture (b) industry (c) service (d) None of these
चीनम, क ू निस मसं बंिधतहै:
(ए) कृिष (बी) उ ोग (सी) से वा (डी) इनमसेकोईनहीं
28 “The soul of India lives in villages" Comment on the necessary components of rural 3
development in the light of M.K.Gandhi's statement.
"भारतकीआ ागां वोंमबसतीहै "
एम.के.गां धीकेकथनकेआलोकम ामीणिवकासकेआव कघटकोंपरिट णीकीिजए।
29 Given the fact that organic farming offers lower yield than conventional farming, should 3
it be promoted in our country where millions of people are not getting enough to eat?
Write your observations in brief.
इसत कोदे खते एिकजै िवकखे तीपारं प रकखेतीकीतुलनामकमउपजदे तीहै ,
ाइसे हमारे दे शमबढ़ावािदयाजानाचािहएजहां लाखोंलोगोंकोखाने केिलएपया नही ंिमलरहाहै ?
अपने अवलोकनसं े पमिलख।
30 Answer the following questions on the basis of the following data 4
Demographic Indicators 2017-18
(I) Comment upon the population growth rates among the three countries
(ii) Which country has less density among the countries give appropriate reason?
िन िल खतआँ कड़ोंकेआधारपरिन िल खत ोंकेउ रदीिजए:
जनसां कीयसं केतक2017-18
Country Estimated Annual Density Sex Ratio Fertility Urbanizatio
Population Growth of (per sq. Ratio n
 (in million) Population km)
India 1352 1.03 455 924 2.2 34
China 1393 0.46 148 949 1.7 59
Pakistan 212 2.05 275 943 3.6 37
(I) तीनदे शोंमजनसं ावृ दरपरिट णीकर
(ii) दे शोंकेबीचिकसदे शकाघन कमहै , उिचतकारणबताएं ।
31 (a) What was the purpose of land ceiling? 4
(b) What were the objectives behind the introduction of GST ?

OR
Do you think the Navaratna policy of the government helps in improving the
performance of public sector undertakings in India?
(क) भूिमसीिलं गकाउ े ाथा?
(बी) जीएसटीकीशु आतकेपीछे ाउ े थे ?
या
(iv) ाआपकोलगताहै िकसरकारकीनवर नीितभारतमसावजिनक े केउप मोंके दश
नकोबे हतरबनाने ममददकरतीहै?
32 Empowerment of women related to employment of women. Comment. 4
OR
Analyse the recent trends in sectoral distribution of workforce in India. Trends in
Employment pattern (sector wise) 1993- 2012(in percentage)
Sector 1993-94 1999-2000 2011-2012
Primary 64 60.4 48.9
Secondary 16 15.8 24.3
Service 20 23.8 26.8

मिहलाओंकेरोजगारसे संबंिधतमिहलाओंकासश करण।िट णीिल खए|

या
भारतमकायबलके े ीयिवतरणमहालके झानोंकािव े षणकर।रोजगारपैटनम झान ( े वार)
1993- 2012 ( ितशतम)
33 Define sustainable development. Explain briefly its features. 2+4
सततिवकासकोप रभािषतकीिजए।इसकीिवशेषताओंकोसं े पमसमझाइए।
34 Read the following text carefully and answer the given questions on the basis of the same 6
and common understanding:
Now a days, privatization is being seen as a solution towards the problems of public
enterprises as these enterprises on being transferred from the public to the private hands
will become less politicized which as a result will help in ceasing the administrative
corruption. It will also help in increasing the tax revenue from profit and strengthening
the public treasury. The advantages of privatization can be perceived from both
microeconomic and macroeconomic impacts that privatization exerts. Globalization has
intensified interdependence and competition between economies in the world market.
This is reflected in interdependence in regard to trading in goods and services and in
movement of capital. As a result domestic economic developments are not determined
entirely by domestic policies and market conditions, rather they are influenced by both
domestic and international policies and economic conditions. It is thus clear that a
globalizing economy, while formulating and evaluating its domestic policy cannot afford
to ignore the possible actions and reactions of policies and developments in the rest of
the world. This constrained the policy options available to the government which implies
loss of policy autonomy to some extent, in decision making at the national level.

a) What, in your opinion are the advantages of privatizing public enterprises?

b) Do you think there is any influence of international policies on the domestic
development of an economy?

िन िल खतपाठको ानसे पढ़औरउसीऔरसामा समझकेआधारपरिदएगए ोंकेउ रद:

आजकल,
िनजीकरणकोसावजिनकउ मोंकीसम ाओंकेसमाधानके पमदे खाजारहाहै ोंिकइनउ मोंको
जनतासेिनजीहाथोंम थानां त रतकरनेपरराजनीितकरणकमहोजाएगािजसकेप रणाम प शास
िनक ाचारकोसमा करने ममददिमलेगी।यहलाभसे करराज कोबढ़ाने औरसावजिनकखजाने
कोमजबू तकरने मभीमददकरे गा।िनजीकरणकेलाभोंकोिनजीकरणकेसू आिथकऔर ापकआिथ
क भावोंदोनोंसेमानाजासकताहै ।
वै ीकरणने िव बाजारमअथ व थाओंकेबीचअ ो ा यताऔर ित धाकोते जकरिदयाहै ।यहव
ु ओऔ
ं रसे वाओंके ापारऔरपूंजीकीआवाजाहीकेसं बंधमअ ो ा यतामप रलि तहोताहै ।प र
णाम पघरे लूआिथकिवकासपूरीतरहसेघरे लूनीितयोंऔरबाजारकी थितयोंसेिनधा रतनहीह
ं ोतेह,
ब वे घरे लूऔरअंतरा ीयनीितयोंऔरआिथक थितयोंदोनोंसे भािवतहोतेह।इस कारयह है
िकएकवै ीकरणअथ व था,
अपनीघरे लूनीितकािनमाणऔरमू ां कनकरतेसमयशे षिव मनीितयोंऔरिवकासकीसं भािवति या
ओंऔर िति याओंकीउपे ानही ंकरसकतीहै।इसने सरकारकेिलएउपल नीितिवक ोंकोबािधत
करिदया, िजसकाअथहै िकरा ीय रपरिनणयलेनेमकुछहदतकनीित ाय ताकानु कसान।

क) आपकीरायमसावजिनकउ मोंकेिनजीकरणके ालाभह?

ख)
ाआपकोलगताहै िकिकसीअथ व थाकेघरे लूिवकासपरअंतरा ीयनीितयोंकाकोई भावपड़ताहै ?
 MARKING SCHEME SAMPLE QUESTION PAPER 7
1 (D) All of these 1
2 C 1
3 C 1
4 D 1
5 D or C 1
6 (D) All of these 1
7 C 1
8 Balance of payment is statement of accounts recording all economic transactions of a 1
country with rest of the world in an accounting year
9 (D) 0.6 1
10 (B) 1/MPS 1
11 NVA at MP = (iv)*(iii)+(ii)-(i)-(vi) 3
= 40*750+1000-10000-3000
= 18000
12 The basic difference between the current account and the capital account of balance of 3
payment is one current account includes receives and payment of foreign exchange on
account of all items of exports and imports visible as well as invisibles. Capital
account includes receipts and payments of foreign exchange only on account of change
in ownership of assets across the borders. Capital account does not involved trading of
goods and services across the border .

13 The involuntary unemployment refers to a situation in which the workers are willing to 4
work at the prevailing wage rates but the jobs are not available to them.
14 (i) The consumption function and investment are given as 4
C = 100 + 0.75Y …(1)
I = 1,000 …(2)
Equilibrium level of National Income is determined as:
Y = C + 1 … (3)
Substituting appropriate values in (3); we get
Y= 100 + 0.75Y + 1000
Y – 0.75Y= 1,100
0.25 Y = 1,100
= 4,400
Thus, the equilibrium level of National Income is ₹ 4,400.
(ii) Substituting Y = 4400 in (1); we get
C= 100 + 0.75(4,400)
= 100 + 3,300 = 3,400
Thus, the consumption expenditure at equilibrium level of National Income is ₹ 3,400.
15 Authority of currency issue the central bank is the sole note-issuing authority in the 4
country. Often the central bank divides its function into two departments banking
department and issue department. It is the issue department that is responsible for not
issuing. It issues currency to cope with the demand for it, with depends upon the level
of economic activity in the economy.
Bankers to the government; As a banker to government it keeps the account from all
government banks and manage government treasuries .The loans are given to the
government without any interest for short term. It also transfers government funds. It
also buys and sells securities treasury bills on behalf of the government. Being The
Apex Bank of the country it advises the government from time to time on economic
financial and monetary matters
16 (a) Real GDP is national income at constant prices and measure real change in output. 3+3
Nominal GDP is national income at current prices and does not measure real
change in output.
Real GDP is true indicator as it measure real change in output unaffected by
change in prices
(a) Externalities are the benefits or harms of an activity caused by a firm
or an individual, for which they are not paid or penalized.
Example and its impact: Use of public parks by the people for pleasure for which no
payments are made by the public. It increases welfare through positive effect on health.
17 (i) Tax receipts are revenue receipts for the government because neither they create a 3+3
liability nor they lead to reduction in any assets.
(ii) Disinvestment refers to the withdrawal of existing investment, e.g. the government
of India is undertaking disinvestment by selling its shares in Maruti Udyog Ltd. It is a
capital receipt for the governments as it reduces the assets of the government.
18 C 1
19 A or C 1
20 B 1
21 C 1
22 C 1
23 C 1
24 B 1
25 B 1
26 C or A 1
27 A 1
28 The development of villages is essential for the overall development of the country as 3
the majority of Indians live in villages. That development of the country is not possible
without the development of its villages.” “If villages are prosperous, self-reliant and
with good facilities, the country will be prosperous. It will help achieve the dream of
Atmanirbhar Bharat (self-reliant India) and making India a five trillion-dollar
economy,”
29 It is not denying the fact that organic farming is environment-friendly. But the hard 3
fact cannot be denied that organic farming is less productive compared with
conventional farming (using chemical fertilizers, insecticides and pesticides). We must
strike a balance between environment and productivity. The planners and politicians in
the country must see to it that environmental degradation is minimised without
suffering a substantial loss of productivity. Rejection of conventional farming in favour
of organic farming should not push us to a point where food problem becomes an
emerging challenge
30 (i)As evident from the table the rate of growth of population is the highest in Pakistan 4
which stands at 2.1% per annum the corresponding rates for India and China are 1.2%
and 0.5% respectively the low rate of growth of population in case of China is on
account of its successful implementation of one child policy introduced in 1979 the
growth rate of population continuous to be fairly high in India 1.2% and alarmingly
high in Pakistan 2.1%
Answer (ii) China has low density of population compared with India and Pakistan it is
because of a very large geographical area of China then India and Pakistan it is
estimated to be 148 persons per square kilometer in China compared to 455 and 275
persons (per square kilometer) in India and Pakistan, respectively
31 (a) to reduce the concentration of land ownership in a few hands. 4
(b) subsume most indirect taxes into a single taxation system , reduce the need for
 multiple documentation , widen the tax base in India. ( any other relevant objective)
OR
Yes , as it give greater managerial and operational autonomy in taking decision ,
increase competitiveness and profit .
32 Ans. It is since ages that the women have suffered gender- discrimination. Men have 4
been getting priority in matters relating to education, health, inheritance, marriage and
policies. Empowerment of women aims at achieving gender equality. Of all the
measures related to empowerment of women, employment of women is of central
significance. Employment makes the women economically independent. This enhances
their ability as decision- makers in all of walk of life. Once the women are independent
decision- makers, they can always strive for gender equality. It is, therefore, required
that the participation of women is raised, particularly in secondary and tertiary sectors
of the economy.
OR
The given data indicates that over the given period, the proportion of workforce in
primary sector has gone down significantly. Whereas, the employment share of both
secondary sector and the service sector has increased gradually. While the share of
secondary sector has gone up by approximately 9% recently, the corresponding figure
for service sector has gone up by approximately 7.1 %. This also shows that
dependency on agriculture remained high as secondary and service sector was not
created in of employment
33 Sustainable development refers to the development strategy to meet the needs of the 2+4
present generation without compromising the needs of future generations. It enables all
generations (present and future) to make best use of the resources.
Features of sustainable development
( i ) sustainable rise in per capita income ( real ) and economic welfare
( ii ) ability of future generations to meet their needs
( iii ) rational use of environmental resources
( iv ) control on pollution
34 (a) reduce corruption , increase income , improve management , better customer 6
service ( any other relevant point )
(b) Influence positively as well as adversely while making policies. any other relevant
point
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 8 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
22. All questions in both the sections are compulsory.
23. Marks for questions are indicated against each question.
24. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
25. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
26. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
27. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
28. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
Q.N QUESTIONS MAR
O. KS
Q-1 Read the following statements carefully: 1
Statement 1: The increase in aggregate income will lead to increased consumption or saving:
it is not possible for savings and consumption to decrease when income increases.
Statement 2: Aggregate consumption increases with increase in aggregate income but the
increase in consumption is less than the increase in the income. Aggregate consumption
decreases with decrease in aggregate income but the decrease in consumption is less than the
decrease in the income.
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
िन िल खतकथनोंको ानसे पढ़:
कथन 1: कुलआयमवृ से उपभोगयाबचतमवृ होगी।आयबढ़नेपरबचत
औरउपभोगमकमीसं भवनहीह ं ै।
कथन 2:
सकलआयमवृ केसाथसकलउपभोगमवृ होतीहै लेिकनउपभोगमवृ आयमवृ सेकमहोतीहै ।कुल
आयमकमीकेसाथसकल उपभोगकमहोजातीहैलेिकनउपभोगमकमीआयमकमीसेकमहोतीहै ।
a. कथन 1 स है औरकथन 2 अस है।
b. कथन 1 गलतहै औरकथन 2 स है ।
c. कथन 1 और 2 दोनोंस ह।
d. कथन 1 और 2 दोनोंअस ह।
Q-2 Write a component of demand for foreign exchange. 1
िवदे शीमु ाकीमाँ गकाएकघटकिल खए।
Q-3 Narrow money refers to- 1
M4,M1 (b) M3, M4 (C) M1,M2 (d) M2 , M3
 सं कीणमु ासे आपका ाता यह ?
M4,M1 (b) M3, M4 (C) M1,M2 (d) M2 , M3

Q4 Read the following statements carefully: 1

Statement 1: Export and import of goods and services will be included in the balance of trade.
Statement2: Borrowing form IMF by 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

िन िल खतकथनोंको ानपूवकपिढ़ए:
कथन 1: व ु ओऔ ं रसे वाओंकेिनयातऔरआयातको ापारसंतुलनमशािमलिकयाजाएगा।
कथन 2: भारत ारा IMF से उधारलेनापूं जीके े िडटप परदजिकयाजाएगा
खाता।
िदएगएकथनोंकेआलोकम, सहीिवक चु िनए:
a) कथन 1 स है औरकथन 2 अस है
b) कथन 1 अस हैऔरकथन 2 स है
c) कथन 1 और 2 दोनोंस ह
d) कथन 1 और 2 दोनोंअस ह
Q-5 National income refers to— 1
(a)NNPmp (b) NNPfc (c) NDPmp (d) GDPfc
रा ीयआयसे ाता यह?
(अ)NNPmp (ब) NNPfc (स) NDPmp (द) GDPfc
Q-6 If the ratio of marginal propensity to consume and marginal propensity to save is 8 : 2, 1
identify the change in income:
a) Increase in income will be greater than increase in investment.
b) Decrease in income will be greater than decrease in investment.
c) Change in income is equal to change in investment.
d) Both A and B
यिदसीमां तउपभोग वृ ि औरसीमां तबचत वृ ि काअनुपात 8 : 2 है,
तोआयमप रवतनकीपहचानकीिजए।
a) आयमवृ िनवे शमवृ से अिधकहोगी।
b) आयमकमीिनवे शमकमीसे अिधकहोगी।
c) आयमप रवतनिनवे शमप रवतनकेबराबरहोगा।
d) एऔरबीदोनों
Or
अथवा
If in an economy the value of Autonomous Investment is ₹ 5 Crore and Consumption function
is 𝐶 = 10 + 0.75𝑌., the relative aggregate demand function would be:
a) 𝐴𝐷 = 5 + 0.75𝑌
b) 𝐴𝐷 = 10 + 0.75𝑌
c) 𝐴𝐷 = 15 + 0.75𝑌
d) 𝐴𝐷 = 5 + 0.50𝑌

यिदिकसीअथ व थाम ाय िनवे शकामू ₹ 5 करोड़हैऔरउपभोगफलन C=10+.75Y

 तोसम माँ गफलनहोगा –
a) 𝐴𝐷 = 5 + 0.75𝑌
b) 𝐴𝐷 = 10 + 0.75𝑌
c) 𝐴𝐷 = 15 + 0.75𝑌

𝐴𝐷 = 5 + 0.50𝑌
Q-7 Credit money refers to – 1
(a) Credit money = Commodity money
(b) Credit money < Commodity money
(c) Credit money> Commodity money
(d) None of these
साखमु ाको ाअथह
(अ)मोि कमू = व ु मू (ब) मोि कमू <व ु मू
(स) मोि कमू >व ु मू (द) इनमेसेकोईनही ं
Q-8 Export of goods is 200 cr and balance of trade is (-) 100 Cr Calculate Value of Import of 1
goods.
Or
What is a foreign exchange rate?
व ु ओक ं ािनयात 200 करोड़ पयेऔर ापारसंतुलन (-) 100
करोड़है व ुओक ं े आयातकेमू कीगणनाकर।
अथवा
िवदे शीिविनमयदर ाहै ?

Q-9 Read the following statement -Assertion (A) and Reason (R). Choose one of the correct 1
alternatives given below:
Assertion (A): In a situation of excess demand, there is under employment in an economy.
Reason (R): Excess demand raises the nominal value of the output.
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.
e)
िन िल खतकथनकोपढ़ - अिभकथन (A) औरकारण (R)।नीचे िदएगएिवक ोंमसे एकसहीिवक चु न:
अिभकथन (A) : अिधकमां गकी थितमअथ व थामअ रोजगारहोताहै ।
कारण (R) : अिधकमां गसे उ ादनकामौि कमू बढ़जाताहै।
िवक :
क) अिभकथन (A) औरकारण (R) दोनोंस हऔरकारण (R) अिभकथन (A)
कीसही ा ाहै ।
ख) कथन (A) औरकारण (R) दोनोंस हऔरकारण (R) अिभकथन (A)
कीसही ा ानहींहै।
ग) अिभकथन (A) सहीहै लेिकनकारण (R) गलतहै ।
दावा (A) गलतहै लेिकनकारण (R) सहीहै ।
Q-10 1
Read the following statement -Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
 Assertion (A): Aggregate Demand is deficient when it is less than Aggregate Supply
corresponding to full employment in the economy.

Reason (R): Government has increased the expenditure for the development as well as
welfare projects in the economy.

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.

िन िल खतकथनकोपढ़ - अिभकथन (A) औरकारण (R)।नीचे िदएगएिवक ोंमसे एकसहीिवक चु न:

अिभकथन (A):
मां गमकमीतबहोतीहै जबअथ व थामपूणरोजगारकेअनु पसम पूितसेसम मांगकमहोतीहै ।
कारण (R): सरकारने अथ व थामिवकासकेसाथ-
साथक ाणकारीप रयोजनाओंकेिलए यमवृ कीहै ।
िवक :
क) अिभकथन (A) औरकारण (R) दोनोंस हऔरकारण (R) अिभकथन (A) कीसही ा ाहै ।
ख) कथन (A) औरकारण (R) दोनोंस हऔरकारण (R) अिभकथन (A) कीसही ा ानहींहै।
ग) अिभकथन (A) सहीहै लेिकनकारण (R) गलतहै।
घ) दावा (A) गलतहै लेिकनकारण (R) सहीहै।
Q-11 Draw the circular flow of income of open economy? 3
खु लीअथ थाकेआयकेच ीय वाहकािच बनाईये ?

Q-12 What is depreciation and appreciation of foreign currency. 3

OR
What is devaluation and revaluation of foreign currency.
िवदे शीमु ाकामू ासऔरमू वृ ाहै ।
अथवा
िवदे शीमु ाकाअवमू नऔरपुनमू न ाहै ।
Q-13 In an economy if the saving function is 𝑆 = (−)10 + 0.20𝑌 and ex-ante investments are 240 4
Crore. Estimate the increase in investment required to double the present level of equilibrium
income.
एकअथ व थामयिदबचतफलन S=(-)10+0.20Y हैऔर ािशतिनवेश 240
 करोड़है ।सं तुलनआयकेवतमान रकोदोगुनाकरनेकेिलएआव किनवे शमवृ काअनुमानलगाएं ।
Q-14 As per the following new press releases by RBI 0n 05Aug 2022 4
Date : Aug 05, 2022
Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC)
August 3-5, 2022
On the basis of an assessment of the current and evolving macroeconomic situation,
the Monetary Policy Committee (MPC) at its meeting today (August 5, 2022) decided to:
Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points
to 5.40 per cent with immediate Identify the likely cause and the consequences behind,this
type of action plan of the Reserve Bank.
05अग 2022 कोआरबीआई ारािन िल खतनई ेसिव योंकेअनु सार
िदनां क: अग 05, 2022
मौि कनीितव , 2022-23 मौि कनीितसिमित (एमपीसी) कासं क 3-5 अग , 2022

मौि कनीितसिमित (एमपीसी) ने आज (5 अग , 2022)

अपनीबैठकमवतमानऔरिवकिसत ापकआिथक थितकेआकलनकेआधारपरिनणयिलया:
चलिनिधसमायोजनसु िवधा (एलएएफ) केतहतपॉिलसीरे पोदरम 50 आधारकीवृ त ालकेसाथ 5.40
ितशतकीओरइशाराकरताहै
रज़वबककीइस कारकीकाययोजनाकेसं भािवतकारणऔरउसकेपीछे केप रणामोंकीपहचानकर।
Q-15 Discuss the lenders last resort function and Bank of banks function of reserve bank of India. 4
रज़वबककेअं ितमआ यदाताकेकायएवमबकोकाबककायकोसमझाइए
Q-16 Calculate (a) Gross National Product at Market Price by Income method, and (b) National 6
income by Expenditure method on the folowing data:-
1. Net exports 10
2. Rent 20
3.Private final consumption expenditure 400
4. Interest 30
5.Dividend 45
6. Undistributed profit 5
7. Corporate tax 10
8. Gorenment final consumption expenditure 100
9. Net domestic capital formation 50
10. Compensation of employees 400
11. Consumption of fixed capital 10
12. Net indirect tax 50
13. Net factor income from abroad (-) 10

िन िल खतआं कड़ोसे (अ) आयिविध ारासकलराि यउ ादबाज़ारमू परएवम (ब)

यिविध ाराराि यआयकीगणनािकिजये :-
िनवलिनयात 10
लगान 20
िनजीअं ितमउपभोग य 400
ाज 30
लाभां श 45
िनगमकेअिवत रतलाभ 5
िनगमकर 10
सरकारीअं ितमउपभोग य 100
िनवलगे लूपूंजीिनमाण 50
 कमचा रयोंकेपा र िमक 400
थाईपूंजीकाउपभोग 10
िनवलअ कर 50
िवदे शोसे शु साधनआय (-)10
Q-17 Answer the following- 6
a) Elaborate the objective of “Provision of Public Goods” in the Government budget.
b) Identify the examples of tax revenue receipts from the following figure.

Or
a) If fiscal deficit is 35% then calculate primary deficit in percent with the help of given
figure.
a) यिदराजकोषीयघाटा 35% है तोिदएगएिच कीमददसे ितशतम ाथिमकघाटे कीगणनाकर।

b) Distinguish between revenue expenditure and capital expenditure of the government,

with suitable examples.
ख) उपयु उदाहरणोंकेसाथसरकारकेराज यऔरपूंजीगत यकेबीचअंतरकर।
 SECTION B
Q-18 _____ is the portion of agricultural produce which is sold in the market by the farmers, 1
after meeting their self-consumption requirements. (Fill in the blank with correct
alternative)
a) Trade Surplus
b) Marketable Surplus
c) Producer Surplus
d) Consumer Surplus
———————————कृिषगतउ ादोंकावहभागहै जोिकसानों ारा -
उपभोगकीज़ रतकोपू राकरने केबादबाज़ारमबेचाजाताहै ।
अ) ापारअितरे क
ब) िवपणनयो अितरे क
स) उ ादकअितरे क
द) उपभो ाअितरे क
Q-19 Before the advent of Green Revolution in 1960’s, India was primarily dependent on 1
_____for the supply of food grains. (Fill in the blank with correct alternative)
१९६०केदशकमह रत- ां ितक़ेआगमनसे पूव , भारतखा ा ोंकीआपूितकेिलएमु तः ————
परिनभरथा।
a) United States of America (USA) सं यु रा अमे रका
b) Britain (United Kingdom) ि टे न
c) Mexico मै को
a) Union of Soviet Socialist Republics (USSR) सोिवयतसंघ
or अथवा
Prior to India's independence, the stagnation in the agricultural sector was mainly caused
by _____. (Fill up the blank with correct alternative)
a) investment in technology
b) investment in agriculture facilities
c) advanced infrastructural facilities
d) land settlement system
भारतकी तं तासेपहले , कृिष े म थरताका मु खकारण—————————था।
अ) तकनीकीमिनवेश
ब) कृिषगतसुिवधाओंमिनवे श
स) आधारभू तसु िवधाओंकाउ यन
द) भू-बंदोब व था
Q-20 What of the following are major event of the pre-1978 period of development in China? 1
I. Great Leap Forward
II. Great Proletarian Cultural Revolution
III. Special Economic Zone
IV. Economic Reforms
Alternatives:
(a) I and II (b) II and III
(c) I, II and IV (d) I, III and IV
Or
Under ________________, peasants pooled their land to create larger fields that could
yield greater output .
(a) Commune system (b) Joint farming system
(c) Great Proletarian Cultural (d) None of these
चीनम 1978 से पहलेकेिवकासकी मुखघटनाएंिन िल खतमसे ाह?
 । ेटलीपफॉरवड
II. महानसवहारासां ृ ितक ां ित
III. िवशे षआिथक े
IV. आिथकसु धार
िवक :
(क) I और II (ख) ि तीयऔरतृतीय
(ग) I, II और IV (घ) I, III और IV
अथवा

…………………………………….केअं तगतिकसानोंनेबडे खेतोंकासृ जनकरने केिलएअपनीभू

िमएकि तकीिजससे अिधकउ ादनहोसके .
(क) क ू न णाली (ख) सं यु कृिष णाली
(ग) महानसवहारासां ृ ितक (घ) इनमसे कोईनही ं
Q-21 Which of the following organizations enforces rules and regulations regarding technical/ 1
engineering education in the country?
(a) UGC (b) AICTE (c) ICMR (d) NCERT
िन िल खतमसे कौनसासं गठनदे शमतकनीकी /
इं जीिनय रं गिश ाकेसं बंधमिनयमोंऔरिविनयमोंकोलागू करताहै ?
(a) UGC (b) AICTE (c) ICMR (d) NCERT
Q-22 From the set of statements given in column I and II, choose the correct pair of 1
statements:

Column I Column II
A. Reforms introduced in China (i) 1976
B. First five year plan in Pakistan (ii) 1955
C. India (iii) Has the most skewed sex ratio
D. Introduction of commune system in China (iv) 1976
Alternatives:
(a) A – (i) (b) B – (ii)
(c) C – (iii) (d) D – (iv)

ं भ I और II मिदएगएकथनोंकेसमूहमसे , कथनोंकीसहीजोड़ीचुिनए:
ं भ I ंभ II
A. चीनमशु िकएगएसु धार (i) 1976
B. पािक ानमपहलीपंचवष ययोजना (ii) 1955
C. भारत (iii) सबसे िवषमिलंगअनु पातहै
घ. चीनमक ू न णालीकाप रचय (iv) 1976
िवक :
(a) A – (i) (b) B – (ii)
(c) C – (iii) (d) D – (iv)
Q-23 Read the following statement carefully. 1
Statement 1: Credit provisions by the SHGs are known as Macro-credit programmes.
Statement 2: These loans are offered without any security and at a moderate rate of
interest.
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
िन िल खतकथनको ानपू वकपिढ़ए।
कथन 1 एसएचजी ाराऋण ावधानोंकोमै ो- े िडटकाय मोंके पमजानाजाताहै।
कथन 2: येऋणिबनािकसी ितभू ितकेऔरम म ाजदरपरिदएजातेह।
िदएगएकथनोंकेआलोकम, सहीिवक चु िनए:
(a) कथन 1 स है औरकथन 2 अस है
(b) कथन 1 अस है औरकथन 2 स है
(c) कथन 1 और 2 दोनोंस ह।
(d) कथन 1 और 2 दोनोंअस ह
Q-24 Read the following statement carefully. 1
Statement 1: China has a very high density of population.
Statement 2: It is very large in terms of geographical area.
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
िन िल खतकथनको ानपू वकपिढ़ए।
कथन 1: चीनमजनसं ाकाघन ब तअिधकहै ।
कथन 2: भौगोिलक े की ि से यहब तबड़ाहै।
िदएगएकथनोंकेआलोकम, सहीिवक चु िनए:
(a) कथन 1 स है औरकथन 2 अस है
(b) कथन 1 अस है औरकथन 2 स है
(c) कथन 1 और 2 दोनोंस ह।
(d) कथन 1 और 2 दोनोंअस ह
Q-25 _____________ refers to a situation in which a person is actively seeking a job but is 1
unable to find work.
(a) Unemployment (b) Underemployment
(c) Jobless (d) None of these

Or

The use of ______________ is focused under the Ujjwala Yojana.

(a) LPG (b) CNG
(c) Gobar gas (d) Solar power
.....................................एकऐसी थितकोसंदिभतकरताहैिजसमएक सि य पसे नौकरी
कीतलाशकररहाहै लेिकनकामखोजने मअसमथहै ।
(क) बेरोजगारी (ख) अ रोजगार (ग) बेरोजगार (घ) इनमसे कोईनहीं
अथवा
उ लायोजनाकेतहत ____________ काउपयोगकि तहै .
(क) एलपीजी (ख) सीएनजी
(ग) गोबरगैस (घ) सौरऊजा
Q-26 Read the following statement carefully. 1
Statement 1: Economic crises occurs when carrying capacity of the environment is
challenged.
 Statement 2: This happens when waste generation is below the absorptive
capacity of the environment.
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
िन िल खतकथनको ानपू वकपिढ़ए।
कथन 1: आिथकसं कटतबहोताहै जबपयावरणकीवहन मताकोचुनौतीदीजातीहै ।
कथन 2: यहतबहोताहै जबअपिश उ ादनपयावरणकीअवशोषण मतासे नीचेहोताहै।
िदएगएकथनोंकेआलोकम, सहीिवक चु िनए:
(a) कथन 1 स है औरकथन 2 अस है
(b) कथन 1 अस है औरकथन 2 स है
(c) कथन 1 और 2 दोनोंस ह।
(d) कथन 1 और 2 दोनोंअस ह
Q-27 Read the following statement carefully. 1
Statement 1: Pakistan has experienced a phenomenal rise in its growth rate.
Statement 2: Domestic investment and FDI has been shrinking in Pakistan.
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
िन िल खतकथनको ानपू वकपिढ़ए।
कथन 1: पािक ानने अपनीिवकासदरमअभूतपू ववृ काअनु भविकयाहै ।
कथन 2: पािक ानमघरे लूिनवे शऔरएफडीआईिसकुड़रहाहै।
िदएगएकथनोंकेआलोकम, सहीिवक चु िनए:
(a) कथन 1 स है औरकथन 2 अस है
(b) कथन 1 अस है औरकथन 2 स है
(c) कथन 1 और 2 दोनोंस ह।
(d) कथन 1 और 2 दोनोंअस ह
Q-28 Explain the given picture as a problem for human capital formation in India? 3
दीगईत ीरकोभारतममानवपूं जीिनमाणकेिलएएकसम ाके पमसमझाइए|

Q-29 Defend or refute the following statement with valid explanation: 3

‘Credit is the lifeline of farming activity in India.’
Or
Diversification of crop production is the need of the hour for Indian agriculture.
Comment.
मा ीकरणकेसाथिन िल खतकथनकाबचावयाखं डनकर:
 ' े िडटभारतमकृिषगितिविधकीजीवनरे खाहै ।
अथवा
फसलउ ादनकािविवधीकरणभारतीयकृिषकेिलएसमयकीमां गहै ।िट णी।
Q-30 Compare and analyse the given data of distribution of workforce (in 2018-19) with valid 4
reasons:
वै धकारणोंकेसाथकायबलकेिवतरण (2018-19 म) केिदएगएआं कड़ोंकीतु लनाऔरिव ेषणकर:
Country दे श Agriculture कृिष Industry उ ोग Services सेवाएँ
(%) (%) (%)
India भारत 43 25 32
China चीन 26 28 46
Pakistan पािक ान 41 24 35
Q-31 When was Karve committee constituted? Explain lPR- 1956. 4 4
Or
What do you mean by import substitution? Why it was adopted by India ? Give valid
reasons.
कावसिमितकागठनकबिकयागया ? आईपीआर-१९५६की ा ाकीिजये।
अथवा
(v) आयात- ित थापनसे आप ासमझते है ? भारतने इसे ोंअपनाया? वै धकारणिल खये।
Q-32 State giving valid reasons, whether the following statements are true or false: 4
a) Global warming is a wake-up call to save environment.
b) Check on population growth in India will lead to a check on environmental pollution.
मा कारणबताइएिकिन िल खतकथनस हयाअस :
क) ोबलवािमगपयावरणकोबचाने केिलएएकवेक-अपकॉलहै ।
ख) भारतमजनसं ावृ कीजां चसेपयावरण दू षणपरअंकुशलगे गा।
Q-33 Define the following 6
a)Jobless growth
b) What is meant by casualization of workforce?
c) What is meant by disguised unemployment?

Or
Discuss the following as source of human Capital formation:
a) Health infrastructure
b) Expenditure on migration
िन प रभािषतकर
(क) रोजगारिवहीनवृ
ख) कायबलकेआक ककरणसे ाअिभ ायहै ?
ग) बेरोजगारीका ाअथहै ?
अथवा
मानवपूं जीिनमाणके ोतके पमिन िल खतपरचचाकीिजए:
(क) ा अवसं रचना
(ख) पलायनपर य
Q-34 Q34. Read the following text carefully and answer the given questions on the basis of the
same and common understanding:
In a 40 minutes long speech Prime Minister Narendra Modi announced the
demonetisation of existing notes of ₹500 and ₹ 1000 during a televised address on
Tuesday evening.
Modi announced that the notes of ₹500 and ₹1000 “will not be legal tender from
midnight tonight “ and these will be “just worthless pieces of paper. PM also argued
people to join this mahayojana against the ills of corruption.
Demonetisation for us means that Reserve Bank of India has withdrawn the old ₹500 and
₹1000 notes as an official mode of payment. Demonetisation is the act of stripping a
currency unit of its status as legal tender.
In this scenario the reasons given by Modi was tackle black money in the economy and
lower the cash circulation in the country. In his speech Modi also said that this step will
eliminate fake currency and dodgy funds.
The Economic times said that due to demonetisation it pushed India towards cashless
economy, brought an end of black money , curbed terrorist funding and raised tax
receipts of the Government .
-“What the demonetisation and why was it done “-The Economic times- Nov09,
2020

a) Define demonetisation. What are the purposes behind demonetisation?

b) Describe the effects of 2016 demonetisation.
नीचे िदएगएग ां शकोसावधािनपूवकपढ़कर ,
इसकेआधारपरअपनीसमझकेअनु सारपूछेगए ोंकेउ रदीिजए- 3
3
मंगलवारकीरातमदे शके धानमं ी ीनर मोदीने एकटे िलिवज़नपर४०िमनटकेअपने स ोधनम च
िलत₹५००व१०००केनोटोंकोिवमुि तकरिदया।
मोदीने घोषणाकीिकआजआधीरातसे ही₹५००व१०००केनोटवैधमु ानहीरं हगेअबयेमा काग़ज़केमू
हीनटु कड़े हीरहगे। धानमं ीने जनतासे आ ानिकयाकी ाचारकीबीमारीकेिख़लाफ़इसमहायोजना
कािह ाबन।
नोटबंदीसे हमाराता यहै िकभारतीय रज़वबकने ₹५००व₹१०००कोमानकलेनदे नसेबाहरकरिदयाहै ।
िकसीभीमौि कइकाईकोवे मु ासे अलगकरनेकी ि यािवमु ि करणकहलातीहै ।
इसे ि गतरखते एमोदीने देशबतायािकअथ व थामकालेधनपरनकेलकसने ,
रोकड़लेनदे नकमकरने ममददिमले गीसाथहीअपने उ ोधनमकहािकजालीमु ापरअं कुशलगाने औरप
तरे बाज़ीपरनकेलडालने मभीयहकदमउिचतरहेगा।
दइकोनोिमकटाइ ज़नेबतायािकनोटबं दीसेभारतमरोकड़लेनदे नऔरकालेधनमजहां कमी ईवहीआ ं
तंकीफ़ंिडं गमभीकमीआईऔरसरकारीकोषमकरराज बढ़ाहै।
अ) नोटबंदीकोप रभािषतकीिजये ।इसकेपीछे ाउ े रहेह ?
ब) २०१६कीनोटबंदीके भावबताईये।
 MARKING SCHEME SAMPLE QUESTION PAPER 8
Q-1 Both statements 1 and 2 are true 1
Q-2 Imports of goods. Investment in foreign countries (any One) 1
Q-3 c 1
Q4 b) Statement 1 is false and statement 2 is true 1
Q-5 b 1
Q-6 d)Both A and B orc)𝐴𝐷 = 15 + 0.75𝑌 1
Q-7 c 1
Q-8 Balance of trade = value of Exports –value of Imports 1
-100==200-M
-M= -100-200
-M= -300
Value of import =300
Or
It refers to the rate at which currency of one country is exchanged with the currency of
another country.Example - 1$=82 Rs
Q-9 d)Assertion (A) is false but Reason (R) is true. 1
Q-10 c)Assertion (A) is true but Reason (R) is false. 1
Net Transfer payment
Q-11 3
External Sector Net Factor Payment
GOVT.

wing
Borro
Payments
Receipts

Transfer
Imports

Payments
g
Savin

Ta x e s
Export

Saving Saving
PRO DUCER FM HOUSEHOLD
Loans Borrowing

Factor Payments (Rent, Wages, Interest, Profit)

Household Consumption Expenditure

Govt. Purchase
Taxes

Subsidies
Q-12 Depreciation –refers to a situation when domestic currency loses its value in relation to a 3
foreign currency.so you need more domestic currency to buy foreign currency.
Appreciation – refers to a situation when domestic currency gains its value in relation to a
foreign currency.so you need less domestic currency to buy foreign currency.
OR
Devaluation-of currency occurs when the value of domestic currency deliberately reduced
by the government by raising exchange rates. The market forces of demand and supply
play no role whatsoever.
Revaluation- of currency occurs when the value of domestic currency deliberately
increased by the government by reducing exchange rate. The market forces of demand and
supply play no role whatsoever.
Q-13 Given MPS = 0.20 4
I = 240 Crore
At equilibrium S=I
240= -10+0.20Y
 250=0.20Y
Y=1250
For double Y, Increase in Y= 1250
K=5
ΔY
K=
ΔI
1250
5=
ΔI
1250
ΔI =
5
Change in investment = 250
Q-14 It is the situation of inflationary gap or excess demand .The causes behind this is the excess 4
supply of money and huge demand of credit. People have more money and no possibility
of increasing production in an economy.
Now if RBI raises repo rate it increases the cost of credit. This leads to fall in demand of
credit. People avoid the loans due to high rate of interest and postpone there demand. Due
to less demand inflation will be controlled. (The rate at which the RBI offers short period
loans to the commercial banks by buying the govt. securities in open market. In fact, It is a
Repurchase Rate.)
Q-15 (a)Lender’s last resort means when a commercial bank fails to get its financial requriement 4
from market or other commercial banks or from any other source than RBI lends the
money to that bank against securities , when bank approaches to the RBI.
Bank of banks function mean all banks workunder the supervision and guidance of the
apex bank. RBI guide, monitor andregulated all the actions of the commercial banks by
various monetay tools.
Q-16 (a) IncomeMethod 6
Gross National Product at Market Price
=Compensation of employees + Rent+ Interest+ Dividend+
Undistributedprofit+ Corporate tax+ Consumption of fixed capital+ Net
indirect tax+ Netfactor income from abroad
= 400+20+30+45+5+10+10+50+-10
= 560

(b) Expenditure Method

National Income
= Private final consumption expenditure+ Gorenment final
consumptionexpenditure+ Net domestic capital formation+
Consumption of fixed capital+Net exports- Net indirect tax+ Net factor
income from abroad- Consumption offixed capital

= 400+100+50+10+10-10-50-10
= 500
Q-17 a)Supply and demand forces in a market economy do not allow enough production of 6
public goods. These are those goods which satisfy collective needs of the people. Law &
order and defense of the country are important examples of public goods. It is through
budgetary allocation of funds that these goods are sufficiently provided to the people.
b.1)Examples of tax revenue receipt are income tax, union exercise duty corporation tax
GST.
Or
A)Primary deficit = Fiscal deficit-Interest payment.
= 35 %-20 %
 = 15%.
The significance of primary deficit is that it reflects borrowings on account of current year
expenditure exceeding the current year receipts of the government. Interest payment on the
accumulated borrowings is not accounted for.
B.
Revenue Expenditure Capital Expenditure
Revenue expenditure does not impact Capital expenditure impacts asset-
asset-liability status of the government. liability status of the government.
Assets and liabilities are not increased or Assets are raised. Or Liabilities are
decreased lowered.
Capital expenditure (public investment)
(ii) Difference in Significance: focuses on GDP growth. It directly
Revenue expenditure (subsidies and law contributes to GDP growth.
& order) focuses on welfare of the High capital expenditure by the
people. It does not directly contribute to government points to the lack of private
GDP growth. investment in the economy. Capital
High revenue expenditure by the expenditure by the government is raised
government (by way of subsidies or old- when the economy is suffering from
age pensions) points to poverty of the deflationary gap.
people or backwardness of the economy Examples:-
Examples:- (a) Construction of Roads,
(a) Expenditure on payment of interest. (b) Expenditure on machinery.
(b) Expenditure on payment of salaries. (c) Expenditure on purchase of shares.
(c) Expenditure on payment of pension. (d) Expenditure on purchase of building.
(d) Expenditure on payment of (e) Expenditure on purchasing
subsidies. computers.
(e) Expenditure on collection of taxes. (f) Expenditure on building a bridge.
(f) Expediture on scholarships

Q-18 b) Marketable Surplus 1

Q-19 a) USA. Or d) Land settlement system 1
Q-20 (c) I, II and IV 1
Or
(a) Commune system
Q-21 (b) AICTE 1
Q-22 (c) C – (iii) 1
Q-23 (b) Statement 1 is false and statement 2 is true 1
Q-24 (b) Statement 1 is false and statement 2 is true 1
Q-25 (a) Unemployment 1
Q-26 (a) Statement 1 is true and statement 2 is false 1
Q-27 (b) Statement 1 is false and statement 2 is true 1
Q-28 Brain drain is a serious threat to the to the process of human capital formation in the 3
country. Those who migrate are persons of high caliber such as scientist, doctors,
engineers, etc. This slow down the process of capital formation in domestic country.
Q-29 The given statement is true. Credit is the lifeline of farming activity in india because most 3
farming families in India are small & marginal holders and they seldom have enough funds
for the diverse farming operations.
Or
Diversification of crop production involves a shift from single cropping system to multi-
cropping system. It involves a shift in cropping pattern from food grain to cash crops. In
India, agriculture is still dominated by subsistence farming and farmers give prime
 importance to cereals in cropping system. Multi-cropping system reduces the dependence
of farmers on one or two crops as they are engaged in growing variety of crops.
To augment farmers’ income and to minimize their risks, there is a need to resort to crop
diversification.
Q-30 As evident from the above table, the percentage of workforce engaged in agricultural sector 4
is the highest in case of India, which stands at 43%. The corresponding rate for
China and Pakistan are 26% and 41% respectively.
The percentage of workforce engaged in industry is the highest in China, which
stands at 28%. The corresponding rates for India and Pakistan are 25% and 24%
respectively.
The percentage of workforce engaged in services sector is again the highest in
China, which stands at 46%. The corresponding rates for India and Pakistan are
32% and 35% respectively.
These observations point to a fact that China is far ahead of India and Pakistan in
industrializing its production activity which is a sign of long period growth and
development.
Higher percentage of workforce in service sector in China is also a sign of its faster growth
compared to India and Pakistan. However, the fact should also be not ignored that Pakistan
has taken over India as regards the growth of services sector. This points to rapid
urbanization in Pakistan.
Q-31 4
In 1955. 1
Explanation: Industries were divided into 3 categories in Industrial policy Resolution of
1956. (1+1+1)
Schedule A - Industries that are exclusively owned by the state.
Schedule B - Industries can be under the private sector, but the starting of the new units
will be under the public sector control.
Schedule C - Some industries will be under the private sector, but these have to take a
license from the public sector.
Or
It is a process to produce the alternative or close substitutes of imported goods country
itself. 1
It was adopted by India due to following reasons: any three (1+1+1)
- due to scarcity of foreign exchange.
- due to unfavourable balance of trade.
- for self-sufficiency purpose
- for industrial development.
Q-32 a) True. Global warming is a wake-up call to save environment because it causes consistent 4
increase in global temperature leading to loss of biotic and abiotic components of
environment.
b) True. Because, India is sustaining excessive population, much in excess of what our
resources permit us. It leads to excessive exploitation of resources as well as
excessive environmental pollution.

Q-33 a) Jobless growth is a situation when the level of output in the economy tends to rise owing 6
to innovative technology without any perceptible rise in the level of employment.
b) Casualization of workforce refers to a situation when people tend to find
employment more in unorganized (or informal) sector of the economy, and less in
organized (or formal) sector of the economy.
c) Disguised unemployment refers to a situation in which more people are engaged
in a given job than are actually needed.
 Or
a) Health Expenditure: - Expenditure on health makes a man more efficient and,
therefore, more productive. His contribution to the production process tends to rise. He
adds more to GDP of the nation than a sick person.
b) Expenditure on Migration: - Migration contributes to human capital formation as it
facilitates utilization of inactive skills of the people, or it facilitates better utilization of the
skills. Gains of migration (in terms of higher salaries ) are greater than the cost of
migration.
Q-34 a)Demonetisation is the act of stripping a currency unit of its status as legal tender.
Purposes
1 to tackle black money in the economy.
2 for lower the cash circulation in the country.
3 control over fake currency circulation.
4 to eliminate dodgy funds. (Any three )
b)
1 control on corruption
2 decrease in tax evasion
3 end of black money
4 pushed India towards cashless economy. (Any three )
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 9 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
29. All questions in both the sections are compulsory.
30. Marks for questions are indicated against each question.
31. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
32. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
33. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
34. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
35. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
1. नकारा कबा ताओंकाएकउदाहरणदीिजए I
1. Give one example of negative externalities. (1)

2. वािण कबकों ारासाखिनमाणकी ि यािनधा रतकीजातीहै ? (सहीउ रकाचुनावकीिजये )

Credit creation by commercial banks is determined by (Choose the correct alternative) (1)

a. Cash Reserve Ratio (CRR) नगदकोषानु पात (CRR)

b. Statutory Liquidity Ratio (SLR) तरलतावैधािनकअनु पात ( SLR)
c. Initial Deposits ाथिमकजमाएँ
d. All the above इनमसेसभी

3. मु ापूितके M1 मापकेदोघटकोंकेनामबताइये I
State the two components of M1 measure of Money Supply. (1)

4. सम पूितकोप रभािषतकीिजए I

Define aggregate supply. (1)

5. गृह थ ारािवदे शीमु ाकीमां गकेकोईदो ोतबताइए I

Name any two sources of demand for foreign exchange by households in an economy.
(1)
6. सरकारीबजटमे ाथिमकघाटाशू कबहोताहै .............(सहीिवक काचु नावकीिजये) (1)
Primary deficit in a government budget will be zero when _______. (Choose the correct alternative)

a. Revenue deficit is zero राज घाटाशू होनेपर

b. Net interest payments are zero शु ाजकाभु गतानशू होनेपर
c. Fiscal deficit is zero राजकोषीयघाटाशू होनेपर
 d. Fiscal deficit is equal to interest payment राजकोषीयघाटा ाजकेभु गतानकेबराबरहोने पर

7. भारतीय रजवबक ाराजारीएक रपोटकेअनु सार,

उपभो ामू सू चकां ककेआधारपरमापीगईमु ा ीितकीदरिपछलेवषकीतु लनामे8% से िगरकर5% एचपीगईहै I
िन मेसेकौनसाकथनस है ?

According to a report forwarded by the Reserve Bank of India, there was a fall in rate of inflation as measured
by Consumer Price Index (CPI) on a year-on-year basis to 5% from 8% in the previous year. Which of the
following statements represents the situation? (1)
a. CPI has fallen\ CPI मकमी ईहै
b. CPI has risen at a rate lower than the preceding year\ CPI मिपछलेवषकीतु लनामेधीमीदरसे वृ ईहै
c. CPI is constant \CPI थरहै
d. None of the above इनमेसेकोईनही

8. करसे आप ासमझते ह ? (1)

What do you mean by a direct tax?

अथवा /OR

अ करसेआप ासमझते ह ?

What do you mean by an indirect tax?

9. मु ागुणककोप रभािषतकीिजये I

Define ‘Money Multiplier’.

(1)

10. भावीमां गकोप रभािषतकीिजये I

Define effective demand. (1)

11. रा ीयआयकीगणनाकीिजए, यिदसीमा उपभोग वृ ित (MPC) 0.8 और ार किनवे शमेप रवतन1000 करोड़है I

Calculate change in final income, if Marginal Propensity to Consume (MPC) is 0·8 and change in initial
investment is Rs1,000 crores. (3)

12. रोजगारकेकी िस ां तकेआधारपर “मां गआिध ” काअथ व थापर ा भावपड़ताहै ?

(3)

State the impact of ‘‘Excess Demand’’ under the Keynesian theory on employment, in an economy.

अथवा /OR

िन काअथ कीिजए/ State the meaning of the following:

a. पूव-िनयोिजतबचत / Ex-Ante Savings
b. पूणरोजगार/ Full Employment
 c. ाय उपभोग / Autonomous Consumption

13. नीचे िदएगएव ोंकोराज ा योंऔरपूं जीगत ा योंमेकारणबताते एवग कृतकीिजए I

Classify the following statements as revenue receipts or capital receipts. Give valid reasons in support of your
answer. (4)

a) बाढ़पीिड़तोंकोअंतरा ीयिनगम ारा ा आिथकसहायता

Financial help from a multinational corporation for victims in a flood affected area.

b) सावजिनक े केउप म ारा , Y फमजोकीएकिनजीफमहै कोबेचेगएशेयर I

Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd.

c) े टबकऑफइं िडया ारासरकारकोिदयेगएलाभां श I

Dividends paid to the Government by the State Bank of India.

d) अं तरा ीयमु ाकोषसे ा उधार I

Borrowings from the International Monetary Fund (IMF).

14. थरऔर वाहचरको उदाहरणसिहतसमझाए I (4)

Distinguish between stock and flow variables with suitable examples.

15. क ीयबक ारासाखिनयं णकेिलएकाममे िलएजाने वाले ‘गुणा कऔरमा ा कउपायों’ मअंतर कीिजए I
(4)

Distinguish between ‘Qualitative and Quantitative tools’ of credit control as may be used by a Central
Bank.

16. िन थितयोंकेसमायोजनकी ि याकोसमझाये I (6)

Discuss the adjustment mechanism in the following situations:

(a) सम मां गसम पू ितसे कमहोने पर / Aggregate demand is lesser than Aggregate Supply.

(b) पूविनवे शपूवबचतसे अिधकहोने पर / Ex-Ante Investments are greater than Ex-Ante Savings.

17. िन कोप रभािषतकीिजए / Define the following: (6)

1. Value Addition / मू वृ
2. Gross Domestic Product / सकलघरे लू उ ाद
3. Flow Variables / वाहचर
4. Income from property and entrepreneurship / उधमीऔरसंपितसे ा आय

अथवा / OR
िन आं कड़ोंकीसहायता “सरकारीअं ितमउपभोग य: और िनयोिजतोंकीिमि तआयकाप रकलनकीिजए I

. स. मद पए
I रा ीयआय 7100
II सरकारीअं ितमउपभोग य ?
III सकलघरे लूपूंजीिनमाण 1000
IV िनयोिजतोंकीिमि तआय ?
V शु अ कर 200
VI िवदे शोंसे ा शु कारकआय 100
VII िनजीअं ितमउपभोग य 4000
VIII थरपूं जीकाउपभोग 300
IX लाभ 120
X वे तनऔरमजदू री 1500
XI शु िनयात 500
XII चालनअिधशे ष 3000

Given the following data, find the values of ‘Government Final Consumption Expenditure’ and ‘Mixed
Income of Self- Employed’ :

S.
Particulars Amount (in Rs Crores)
No
I National Income 7,100
Ii Government Final Consumption Expenditure ?
Iii Gross Domestic Capital Formation 1,000
Iv Mixed-Income of Self-Employed ?
V Net Indirect Taxes 200
vi Net Factor Income from Abroad 100
vii Private Final Consumption Expenditure 4,000
viii Consumption of Fixed Capital 300
Ix Profits 120
X Wages and Salaries 1,500
Xi Net export 500
xii Operating Surplus 3,000

SECTION B

18. िन मेसेिकससमयकालमेभारतमेजनां िककीसं मणकीदू सरीअव था ार ईथी ? (1)

(अ) 1921 केबाद (ब) 1921 से पहले (स)1921 से (द) इनमेसेकोईनहीं
In which of the following time periods did the second stage of demographic transition in India begin?
(a) After 1921 (b) Before 1921 (c ) From 1921 (d) None of these
19. इं ड ीपॉिलसीरे सोलुशन1956, उ ोगोंकोिकतने भागोंमेवग कृतकरताहै ? (1)
(अ) 2 (ब) 5 (स) 3 (द) 4
The Industrial Policy Resolution, 1956 classified industries into …………
(a) 2 (b) 5 (c ) 3 (d) 4
20. भारतकीिक ीदोनवर कंपनीज़केनामिल खए I (1)
Name any two Navratna companies in India.
21. नाबाड ारािकएजाने वाला मुखकायकौनसाहै ? (1)
State the major function performed by NABARD.
22. कृिषगतसु धार ाहै ? (1)
What are agrarian reforms?
23. चीनने िकसवष “वनचाइ पॉिलसी” कोबंदिकया ? (1)

(अ) 2013 (ब) 2016 (स ) 1980 (द) 1990

In which year China discontinued its ‘one child policy?’
(a) 2013 (b) 2016 (c ) 1980 (d) 1990
24. पयावरणकोप रभािषतकीिजये I (1)
Define the environment.
OR/ अथवा
‘ ोबलवािमग’ ाहै ?
What is Global warming?
25. िन मेसेकौनसादे शि कासद नही ंहै ? (1)

(अ) ाज़ील (ब) स (स) चीन (द) ीटजरलड

Which of the following countries is not part of BRICS?
(a) Brazil (b) Russia (c ) China (d) Switzerland
26. िवदे शी ापारकेमा ा क ितबं धोसेआप ासमझते हो ? (1)
What do you mean by quantitative restrictions?
27. बाज़ारअिधशे ष ाहै ? (1)
What is marketable surplus?
28. मानवपूं जीिनमाणमेिकयागयाकमिनवे शभारतमेवतमानमे बेरोजगारीकीसम ाकेिलएकैसे िज़ ेदारहै ? (3)
How is low investment in Human Capital Formation responsible for the existing problem of unemployment in
the country?
29. मिहलाओंके ा से संब तसम ोंपरिवशेष ानदे नेकीआव कता ोंहै ? (3)
Why has women’s health become a matter of great concern?
OR/ अथवा

कीिजयेकीकैसे ा थलोगोंकेजीवनकीगुणव ाऔरआिथकिवकासमेएकसकारा क भावडालताहै I

 Explain how health has a positive impact on the quality of life and overall economic development.
30. महा ागांधीरा ीय ामीणरोजगारगारं टी ीमकासं ेपमवणनकीिजये|
ायहअपने उ े ोंकोपू राकरने मसफलरहीहै ?
(4)
Explain the Mahatma Gandhi National Rural Employment Guarantee Scheme. Is the scheme successful
to achieve its goals?
31. (अ) चीनकेसु धारा क यासोंमेदौहरीकीमत णालीकीभूिमकाको कीिजये I (4= 2+2)
Discuss the dual pricing policy in the reform process of China.
(ब) भारत, चीनऔरपािक ानने अपनेदेशमेआिथक यासोंकोएकसाथशु िकया, य पीचीन,
भारतऔरपािक ानसे ब तआगे है, ों ?
Why has China far ahead in the growth process even though India, China and Pakistan started with the
strategy of economic development around the same time?
32. भारतमे मकेआक करण / अिनयिमितकरणमवृ ोंहोरहीह? कोईचारकारणबताइयेI (4)
Why is the casualization of the workforce increasing in India? State any four reasons.

अथवा / OR

ामीण े मिकसतरहकीबे रोजगारीदे खने कोिमलतीहै ? इसके मुखकारणकौनकौनसे ह ?

What type of unemployment exists in rural areas? What are the main reasons responsible for it?
33. नईआिथकनीितके पमेिनजीकरणकाएकआलोचना कमू ां कनिल खए I (6)
Critically evaluate the policy of privatization as part of the New Economic Policy.
34. बागवानी ाहै ? यहिपछड़े वग केजीवन रकोबढ़ाने मेिकसतरहसहायकहै ?
इस े के ारािकनचु नोितयोंकासामनािकयाजारहाहै ? (6)
What is horticulture? How has it become a means of improving livelihood for the unprivileged classes? What
are the challenges being faced in this sector?
अथवा / OR
बाज़ार णालीकोसु धारने केिलएसरकार ाकदमउठारहीहै ?
What measures have been initiated by the government to improve the market system?
MARKING SCHEME SAMPLE QUESTION PAPER 9
1 Pollution created by factories/vehicles 1
2 (d) All of the above 1
3 Currency held by public and demand deposits held by banks. 1
4 Aggregate Supply refers to the estimated money value of all the final goods and services 1
planned to be produced in an economy.
5 For import, for tourism in abroad 1
6 (d) Fiscal Deficit is equal to interest payment 1
7 (b) CPI has risen at a rate lower than the preceding year 1
8 Direct taxes are those taxes which cannot be shifted to the other person/entity. Their 1
monetary burden is borne by those on whom they are levied.

OR
Indirect taxes are those taxes which can be shifted to another person/entity. Their
monetary burden is ultimately borne by final users of goods and services, rather than the
person on whom the tax is levied.
9 Money multiplier is the number by which total deposits can increase due to a given 1
change in deposits. It is inversely related to legal reserve ratio.
10 Effective demand refers to the Aggregate demand corresponding to full employment level 1
of output.
11 Investment Multiplier (K) = 1/1−MPC=1/1−0.8 3
K=1/0.2=5
Also, K=ΔY/∆I
5=ΔY/1000
ΔY = Rs5,000 crores
Change in final income = 5,000 crores
12 In case of ‘Excess Demand’ under the Keynesian Theory, there will be no change in the 3
employment as the economy is already working at the full employment. Thus, there is no
further scope of creation of employment.

OR

Ex-Ante Savings - refers to the planned savings, at different levels of income in an

economy.
Full employment – refers to a situation of no involuntary unemployment.
Autonomous consumption - refers to the minimum level of consumption for survival even
at a zero level of income.
13 a. Revenue receipt of the government, as it is neither creating any liability 4
nor reducing any assets for the government.
b. Capital receipt of the government, as it is reducing the assets of the
government.
c. Revenue receipt of the government, as it is neither creating any liability
nor reducing any assets for the government.

d. Capital receipt, as it is increasing the liability of the Government.

14 Any economic variable which is measured at a point of time is known as stock, e.g. 4
capital, etc.
Whereas, any economic variable measured during a period of time is known as flow, e.g.
income, etc. (any other relevant example)
15 The tools used by the Central bank to control money supply can be quantitative tools or 4
 qualitative tools. Quantitative tools control the extent of money supply by changing the
CRR or bank rate or open market operations. Qualitative tools include persuasion by the
Central bank in order to make commercial banks discourage or encourage lending which
is done through moral suasion, margin requirement, etc.
16 6
a. When Aggregate Demand is lesser than Aggregate Supply (AD S)means
buyers are planning to buy more output as to what producers are planning
to produce.
It will lead to rise in planned inventories above the desired level. The
producers in turn will produce less, which will reduce the income level i.e.
AS. This process will continue till AD becomes equal to AS.
b. Ex-ante investments are greater than ex-ante saving (I > S)means buyers
are planning to buy more output as to what producers are planning to 6
produce. It will lead to fall in planned inventories below the desired level.
As a result the producers will raise production, leading to increase in
income till savings becomes equal to investments.

17.

a. Value addition – is the excess of value of output over the value of

intermediate consumption.
b. Gross Domestic Product – is the money value of all final goods and
services produced in an economy during an accounting year.
c. Flow variables - are those economic variables which can be measured over
a period of time e.g.national income, money creation etc.
d. Income from property and entrepreneurship - are incomes earned by
property owners. It includes, rent and royalty, profit, interest. It can also be
termed as Operating Surplus.

OR

Government final Consumption Expenditure= i-iii - vii -xi + v + viii – vi

= 7100-1000-4000-500+200+300-100
= Rs2,000crores
Mixed Income of Self Employed = i - x – xii – vi
= 7100 - 1500 - 3000 – 100
= Rs 2500 crore
18 (a) After 1921 1
19 (c ) 3 1
20 ONGC, BPCL etc. 1
21 Coordinate the activities of all institution providing rural credit. 1
22 Various policies and programmers initiated by the govt. in agriculture. 1
23 (b) 2016 1
24 All the surroundings that have an impact on human being. 1
OR
It refers to gradual increase in the temperature of the earth’s atmosphere
25 (d) Switzerland 1
26 It refers to quotas that specify the quantity of goods which can be imported. 1
27 The portion of agriculture product which is sold by the farmer in the market. 1
28 Low level of income in the economy result in low level of saving which adversely affects 3
the level of investment. Or any other relevant answer
29 Women’s health in India is the matter of great concern because of the following reasons- 3
(i) Approximately 50% of total women are suffering from anaemia
and related disease.
(ii) Maternal mortality rate is high
Or any other relevant answer
OR
(I) Increase the efficiency of workers
(II) Minimum loss of production due to leave taken by worker in illness
Increase the enrollment of children in the school
30 MGNREGA launched in 2ndfeb. 2006… initially implemented in 200 4
districts.This act is based on the principle of 'right to work', launched in 2005.
Under this Act, all those who are willing to undertake unskilled manual work at
the minimum wage are offered employment for a minimum period of 100 days.
This programme was later in 2008 renamed as Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA).
NREGA is a successful programme because it is providing the employment to all the rural
people for 100 days and the works have been done under the programme are productive
and creation of assets.
31 (a) China’s dual policy.. 4
(i) Farmers and industries units are required to buy and sell fixed quantities of
inputs and outputs on the basis of price fixed by the govt.
(ii) For other transaction, the inputs and output were purchased at market price.
(b)
(i) Availability of cheap labour which gave China a cost advantage
(ii) The great Leap forward Campaign launched in 1958
Focus of export oriented policy…
32 (i) Slow growth of employment in the organized sector
(ii) Privatization and disinvestment in public sector
(iii) Small and marginal farmer shifting to casual work… 4
OR
Disguised and seasonal unemployment are the two types in rural areas…
And relevant answer
33 Critically evaluate the policy of privatization Merits :-
1. Improvement in the efficiency of management
2. Financial discipline
3. Reduction in deficit 6
4. Competitiveness
5. Diversification of production
Demerit :--
1. Neglect of social interest
2. Monopolistic control
3. Hindrance in achieving the objective of full employment.
Less scope of development of infrastructure
34 Horticulture refers to the science or art of cultivating fruits, vegetables, tuber crops,
flowers, medicinal and aromatic plants, species and plantation crops. These crops play a
vital role in providing food and nutrition besides addressing employment concern. The
Period between 1991-2003 is called Golden Revolution as investment in Horticultural 6
became highly productive and immerge as sustainable livelihood options.
-India has blessed with a varying climate and soil condition.
-It is an important factor for potential diversification and value addition in agriculture
-It has been estimated that this sector provides employment to around 19 % of total labour
 force.
- This sector is highly productive and the sector emerged as a sustainable livelihood
option.
- India has emerged as a world leader in producing a variety of fruits, vegetables,
mangoes, bananas, coconuts, cashew nuts and number of spices.
Horticulture has improved economic condition of many farmers and has become a
means of improving livelihood for many unprivileged classes.
And relevant answer…….
OR
1. Regulated market
2. Cooperative agricultural marketing societies
3. Provision of warehousing facilities
4. Subsidies transport
5. Dissemination of information
Minimum support price (MSP) policy.
1 Pollution created by factories/vehicles 1
 KENDRIYA VIDYALAYA SANGATHAN, JAIPUR REGION
SAMPLE QUESTION PAPER 10 (2023-2024)
TIME: 3 HOURS CLASS: XII M.M.: 80

General Instructions:
1. All questions in both the sections are compulsory.
2. Marks for questions are indicated against each question.
3. Questions No. 1-10 and 18-27 are MCQ or Objective type questions carrying 1 mark each. They are
required to be answered in one sentence each.
4. Questions No. 11-12 and 28-29 are short-answer questions carrying 3 marks each. Answers to them
should normally not exceed 60 words each.
5. Questions No. 13-15 and 30-32 are also short-answer questions carrying 4 marks each. Answers to them
should normally not exceed 70 words each.
6. Questions No. 16-17 and 33-34 are long-answer questions carrying 6 marks each. Answers to them
should normally not exceed 100 words each.
7. Answers should be brief and to the point and the above word limits should be adhered to as far as
possible.

SECTION A
1. “CRR cut will improve bottom line “, says Karnataka Bank CEO Private
Mahabaleshwara MS on Friday said the Reserve bank of India (RBI) slashing the Cash
Reserve Ratio (CRR) by 100 basis points (BPS) from 4% to 3% will improve the
bottom line of banks.
Identify the quantitative function of Central bank among the given
options.
a)Repo rate
b) Margin requirement
c) Cash reserve ratio
d) Option a) and c)
2. If the value of Average Propensity to Save (APS) is 0.2 and National Income is ₹4,000
crore, then consumption will be -----
a)₹4,000 crores
b) ₹3,200 crores
c) ₹3,800 crores
d) ₹2,600 crores
3. Balance of Payments account records:
a) A country’s inflow & outflow of foreign exchange during a fiscal year.
b) International transactions in goods, services, and assets during a fiscal year.
c) Transactions affecting foreign exchange assets & liabilities during a fiscal year.
d) Transactions relating to exports & import of goods & services, and transfers
during a fiscal year.
OR
From the following given sets of statements in column I and II, chose the correct pair of statements.
 Column I Column II

A Exports of goods and services (i) Excess of Exports of goods over the
imports of goods
B Trade Surplus (ii) An element of invisible items
C Current Transfers to rest of the world (iii) Recorded as a positive item in the BOP
account
D Portfolio Investments (iv) Foreign Institutional investors

Alternatives:
a) A-(i)
b) B-(ii)
c) C-(iii)
d) D-(iv)

4.On the basis of following schedule, what is the value of MPS?

Income 0 50 100 150 200

(in ₹crores)
Saving -20 -10 0 10 20
(in ₹crores)

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

5. Read the following statement – Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Demand Deposits are considered as a convenient mode of payment for
execution of even the high value transactions.
Reason (R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn
against issue of cheques and other similar instruments of payment.
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.

6. Read the following statement – Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Trade of invisible items between two nations is a part of capital account of
Balance of Payment.
Reason (R): transactions that affect the asset liability status of a country in relation to the
rest of the world are known as capital account transaction.
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.

7. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Subsidies do not add any burden on the financial health of a nation.
Statement 2: Complete removal of subsidies may violate the aim of equitable distribution
of income
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

8. Two friends Riya and Surendra were discussing about aggregate demand. “The
components of aggregate demand in an open economy are household consumption
expenditure, private investment expenditure and government expenditure.”
Identify the one of the components that is missing in the above statement.
a) Household investment expenditure
b) Net exports
c) Factor payments
d) Transfer payments
9. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: Demonetization was the step taken by the government of India in order to
tackle the problems of corruption, black money, terrorism and circulation of fake
currency in the Indian economy.
Statement 2: demonetization has ensured improved tax compliance in India over a period
of time.
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
10.Inventory is a ............ concept whereas the change in inventory is a
.......concept
a)Stock, Flow
b) Flow, Stock
c) Stock, Stock
d) Flow, Flow
OR
If in an economy the value of Net factor Income from Abroad is ₹200 crores and the
value of Factor Income to Abroad is ₹40 crores, Identify the value of factor Income
from Abroad
11. “GDP only measures goods and services produced in an economy and ignores those
transactions that do not come under monetary terms”. In view of the above statement,
discuss the limitations of GDP as an index of welfare of a country.
12. The ratio of MPC and MPS is 4:1. The consumption at zero level of income is ₹40
crores.
A. Frame a consumption equation.
B. Find the value of investment multiplier.
C. Find the break-even level of income.
OR
What is investment multiplier? If change in investment of ₹100 crores is
required to bring a change in income by ₹1000 crores calculate MPC and
MPS.

13.“Loans are children of deposits and deposits are children of loan” Explain
OR
“The Central Bank acts as a banker, adviser and agent to the government.” Explain
14. A country with trade deficit cannot have current account surplus in its balance of
payments. Do you agree with the given statement? Give reasons.
15. Define inflationary gap. Show inflationary gap with a well labelled diagram. Give one
monetary measure to control it.
16. A. “Government uses the fiscal policy to stabilize economic fluctuations in an
economy”. Discuss.
B. “Government across nations are worried about the term fiscal deficit”. Do you think
fiscal deficit is necessarily inflationary in nature? Support your answer with reasons.
17. Calculate Gross Domestic Product at factor cost and Factor Income to Abroad
Particular ₹
(in crores)
I Compensation of employees 800
Ii Profits 200
Iii Dividends 50
Iv GNP at MP 1400
V Rent 150
 Vi Interest 100
Vii Gross Domestic Capital Formation 300
Viii Net fixed Capital Formation 200
Ix Change in stocks 50
X Factor income from abroad 60
xi NIT 120
OR
A. Elaborate the objective of “Allocation of resources” in the government budget
B. Discuss briefly how the government budget can be used as an effective tool in the process
of employment generation.
SECTION B
18. Match the situations given in Column I with their respective implications given in
Column ii :
Column I Column II

A Migration (i) Reduced per capita economic growth

B Low level of academic standards (ii) Imbalance between demand and supply of
human resource
C Population: High growth rate (iii)Brain drains
D Lack of proper manpower (iv) Mismatch between required skill and academic
planning standards
a) A-(ii) B-(iii) C-(iv) D-(i)
b) A-(iii) B-(iv) C-(i) D-(ii)
c) A-(i) B-(ii) C-(iii) D-(iv)
d) A-(ii) B-(iv) C-(i) D-(iii)
19. Just as a country can turn physical resources like land into physical capital like factories,
similarly, it can also turn human resources like nurses, farmers, teachers, students into
human capital like engineers and doctors. Which of these justifies the need for human
capital?
a)It leads to efficient use of resources
b) It leads to economic growth.
c) It helps in creating a society free of discrimination.
d) It allows individual freedom.
Or
Which of the following is working in the informal sector?
a) A private school teacher in a leading school in a big city.
b) The owner of a textile shop employing 9 workers.
c) Driver of a bus company which has more than 10 buses with 20 drivers,
conductors & other workers.
d) Civil engineer working in a construction company which has 10 workers.
20. Arrange the following events of China and Pakistan in chronological order and choose
the correct alternative:
i. Great Leap Forward
ii. Nationalization of capital goods in Pakistan
iii. Introduction of reforms in China
 iv. Pakistan’s First five year plan
Alternatives:
a) i, ii, iii, iv
b) ii, iii, iv, i
c) iv, i, ii, iii
d) iv, iii, ii, i
OR
Which of the following countries has the highest infant mortality rate per 1000 live births?
a)India
b) China
c) Pakistan
d) None of these
21. ----adopted “One Child Policy" as a measure to control population
a)India
b) China
c) Pakistan
d) Russia
22. Read the following statement – Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): Basic education and basic health are important in themselves, irrespective
of their contribution to labour productivity.
Reason (R): human welfare should be increased through investment in education and
health even if such investments do not result in higher labour productivity.
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.

23. Read the following statement – Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): NABARD do not provide direct loan to farmers.
Reason (R): National Bank for Agriculture and Rural Development is an apex regulatory
body for overall regulation and licensing of regional rural banks and apex cooperative
banks in India.
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.
 24-------- is not the reason for the stagnation in the agriculture sector?
a)Use of fertilizers.
b) Lack of irrigation facilities
c) Low levels of technology
d) Various systems of land settlement.
Or
_____________ have been removed to increase the competitive position of Indian goods in the
international markets.
a) Import licensing c) Quantitative restrictions
b) Export duties d) Tariffs

25. In the year……………… the Indian Government made education free & compulsory for all
children between 6 to 14 years.
a) 2001 c) 2003
b) 2009 d) 2007

26. Read the following statements carefully and choose the correct alternatives given below:
Statement 1: India announced the New Economic Policy in 1991 consisting of wide range of
economic reforms
Statement 2: World Bank and International Monetary Fund granted ₴ 7 billion to
manage the Economic crisis in late 1990, with conditions.
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

27--------- is regarded as architect of Indian Planning, responsible for formulating Five Years Plans.
a) Prashant Chandra Mahalanobis
b) J.C. Kumarappa
c) DadbhaiNaaroji
d) Amiya kumarBagchi

28. The given picture shows the main causes of India’s agricultural stagnation during the
colonial period, explain the cause shown in the picture
 29. Give two instances of :
A. Overuse of environmental resources
B. Misuse of environmental resources
OR
Explain the function of the environment.

30.“The rural areas in India suffer from lack of adequate financing facilities”.
State the reason for the requirement and sources available to meet out this
problem.
OR
“Agricultural marketing has come a long way with the intervention of
the government”. Discuss

31. With reference to the table below, list points stating a comparison of the demographic
features of India, China and Pakistan.
Country India China Pakistan
Est. population 1311 1371 188
(in millions)
Annual Growth of 1.2 0.5 2.1
population
2015
Density (per 441 146 245
sq.km)
Sex Ratio 929 941 947
2015
Fertility Rate 2.3 1.6 3.7
2015
Urbanization 33 56 39
2015

32. Do you think that in the last 50-60 years, employment generated in the country is
commensurate with the growth of GDP in India? How?

33. Discuss in brief the goals of five-year plans

 OR
” Though public sector is very essential for industries, many public sector undertakings
incur huge losses and are a drain on the country’s resources”. Discuss the usefulness
of public sector undertakings in the light of this fact.

34.Read the following text carefully and answer questions given below
NEW DELHI: India and Pakistan – two of the biggest south Asian nations- started their economic
journey around the same time after gaining independence. Not many know that there was a point in the
1960s when Pakistan’s per capita GDP used to be higher than that of India’s. However, over the years,
India has not only surpassed Pakistan’s per capita GDP but taken a commanding lead on almost every
economic front.
Pakistan today is facing global criticism for failing to rein in homegrown terror groups even
as it grapples with an ailing economy and mounting global debt. India, on the other hand, has
become a global front runner which recently surpassed the UK to become the fifth largest
economy in the world. The stark economic contrast between the two neighbors shows that
Pakistan’s unstable government, conflicting power centers, convert support to terror groups
and involvement in global terror strikes such as the 26/11 Mumbai attacks, have bled its
economy. From a higher per capita GDP of ₴83.33 in 1960. Pakistan’s today lags much
behind India which witnessed multi-fold rise its per capita GDP over the years. From 2007,
India’s per capita GDP has consistently stayed higher than that of Pakistan’s.
India is today the fastest growing trillion-dollar economy in the world and the fifth largest
overall, according to data compiled by IMF’s World Economic Outlook. It jumped from 9th
spot in 2010 to the 5th spot in a span of just 9 years. The GDP of India’s is almost 10 times
that of Pakistan, which is placed at the 45th position.
India’s rise has been even more dramatic across the past couple of years. Since 2008,
India’s GDP
has risen almost 140 per cent as against an increase of about 63 per cent for Pakistan Questions:
A. “India and Pakistan started their economic journey at the same time but now India is
far ahead of Pakistan’ in the light of above statement, give any two reasons.
Compare and analyses India and Pakistan economy in the term of GDP growth.
 MARKING SCHEME SAMPLE QUESTION PAPER 10
1 d) Option a) and c) 1
2 b) ₹3,200 crores 1
3 a) b) 1
OR
d) D-(iv)
4 0.2 1
OR
d) Resources are fully and efficiently utilized.
5 c) Assertion (A) is true but Reason (R) is false. 1
6 d) Assertion (A) is false but Reason (R) is true. 1
7 d) Statement 2 is true and Statement 1 is false 1
8 b) Net exports 1
9 a) Both the statements are true. 1
10 a) Stock, Flow 1
OR
₹240 crores
11 Limitation of using GDP as an indicator of welfare of a country are asfollows 3
1. Inflation
2. GDP ignores externalities
GDP disregards income pattern (or any three limitation)
12 A) 40 + 0.8Y
B) 5 3
C) ₹200 crores OR
OR 1+2
Investment multiplier refers to the concept that any increase in investment spending has
a more than proportionate positive impact on income
MPC = 0.1
MPS = 0.9
13 Loans are children of deposit and deposits are children of loans. It means deposits are the 4
results of loan activities of a bank and loans are given after the deposit in the bank. This
is the most important function of commercial bank , credit creation
OR
It is the important function of Central Bank
As a banker to the government: as a banker, the central bank performs banking functions
for the government by accepting the government deposits and granting loans to the
government.
As an advisor to the government : as an advisor , the central bank gives advice to the
government regarding economic policy matters, money market , capital market and
government loans.
14 4
No, trade deficit occurs when value of goods/ visibles imported is more than the value of
 goods / visibles exported.

Trade deficit = Value of imports – Value of exports.

Trade deficit is only one of the four components of current account. So even though there
is a trade deficit there can be a surplus in other 3 components which will ultimately lead
to surplus in current account.
15 inflationary gap refers to a situation when aggregate demand is greater than the AD
required at the level of fuller utilisation of resources. 4
appropriate diagram
any monetary measure...
16 A. 1.Stabilization policy is a strategy enacted by the government to maintain a 2
healthy level of economic growth 1
2. Fiscal policy can do this by increasing or decreasing aggregate 1
demand 2
3. To smooth out the business cycle
(0r any relevant three answers )
B. 1.It shows fiscal policy of the government
2. Government approach to allocation of resources in the country
3. Correct the situation of inflationary / deflationary gap
(0r any relevant three answers )
18 b) A-(iii);B-(iv);C-(i);D-(ii) 1

19 b) It leads to economic growth 1

or
b)
20 c) iv, i, ii, iii 1
OR
c)Pakistan
21 b)China 1
22 b)Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct 1
explanation of Assertion (A).
23 b)Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct 1
explanation of Assertion (A).
24 a) use of fertilizers 1
or
b)
25 b 1
26 a)Both the statements are true. 1
27 a)Prashant Chandra Mahalanobis 1
28 Cause – Zamindari system 1+2
Explanation -
29 A. Overuse of environmental resources 3
1. Excess use of electricity leads to depletion of resources like coal and water
2. Excess use of petrol and diesel in vehicles.
 (or any two relevant instances of overuse )
B. Misuse of environmental resources
1. Soil degradation due to improper use of fertilizers
2. Drying up of rivers due to supply of water from them to dams and reservoirs.
( or any two relevant instances of misuse)
OR
Environment performs four functions: supplies resources, assimilates wastes, sustains life
by providing genetic and bio diversity and provides aesthetic services.
30 Growth of rural economy depends on timely infusion of capital. Credit in rural areas is 1+1+1
required:

1. To meet certain expenses because the gestation period between crop sowing and
realization of income after production is too long.
2. To invest in seeds, manure and fertilizers. Non-farm sectors such as cottage and
small scale industries also require capital.
3. For rural people for self-employment.

The sources of credit in rural system are:

1. Non institutional sources: Money lenders, friends, relatives and land owners.
2. Institutional sources: National Bank for Agriculture and Rural Development
(NABARD), Self Help Groups (SHGs), Regional Rural Banks, Commercial
Banks, Co-operative Banks, Co-operative
Financing societies.
OR
Both growth and equity are the two important aspects of India’s five year plans. While
growth refers to the increase in GDP over a long period of time equity refers to an
equitable distribution of GDP so that the benefits due to higher economic growth are
shared by all sections of population. Equity implies social justice. Growth itself is
desirable but growth in itself does not guarantee the welfare of people. Growth is assessed
by the market value of goods and services (GDP) and it may be possible that the goods
and services that are produced may not benefit the majority of population. In other words,
only a few with high level of living and money income may get the share of GDP. Hence,
growth with equity is a rational and desirable objective of planning. This objective
ensures that the benefits of high growth are shared by all the people equally and, hence,
this not only leads to reduction of inequality of income, poverty promotion of egalitarian
society but also enables everyone to be self-reliant.
31 Comparison should be done on 2+2
Population
Density of population
Growth of population
Sex ratio
Fertility rate
Urbanization
 (Any four)
32 No, employment generated in the country does not commensurate with the growth of 4
GDP in India because India has experienced Jobless growth in the last 50-60 years.
Causes of jobless growth -
33 The goals of Five Years Plan 2+2+2
1. Growth Or 2
2. Modernization
3. Self-reliance
4. Equity 2+4
5. Full employment
6. Rising investment income ratio
OR
Meaning of Agricultural marketing
Marketing Prior to independence
Steps –
Transparent marketing conditions
Physical infrastructure facilities
Cooperative marketing
MSP
Buffer stock
PDS
34 A. 1. Unstable government, 2. Homegrown Terror Groups or Ailing Economy 6
B. 1.India GDP has consistently stayed higher
2. India is today the fastest growing Trillian-dollar economy in the world
3. It jumped from 9th spot in 2010 to the 5th spot in a spam of just 9 years
4. India’s GDP has risen almost 140 percent
the GDP of India is almost 10 times that of Pakistan
1 Pollution created by factories/vehicles 1