Economics Sample Paper Class 12 2024 with Solution PDF, Get Model Paper

Alternatives:

a) Interest received on loans

b) Multilateral Loans

c) Portfolio Investment

d) Government Aid

11. ‘Current account deficit in an economy must be financed by a corresponding capital account surplus”.

Do you agree with the given statement? Give valid reason(s) in support of your answer. (3)

12. (A) On the basis of the given data, estimate the value of Domestic Income: (3)

OR

(B) State the meanings of the following:  (3)

(i) Externalities

(ii) Operating Surplus

(iii)Consumption Goods

13 For a hypothetical economy, the government incurs an investment expenditure of ₹ 1,000 crores. If the value of Marginal Propensity to Save (MPS) falls from 0.25 to 0.10. Calculate the value of the increase in income due to a change in the value of Marginal Propensity to Save (MPS).  (4)

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 and employment. (4)

OR

(B) “With an objective to reduce inflation, Reserve Bank of India may promote the commercial banks to park their surplus funds with it.”
Discuss the rationale behind the step taken by the Reserve Bank of India. (4)

15 Elaborate the ‘Banker’s Bank and Supervisor’ function performed by the Reserve Bank of
India.  (4)
16 (A) On the basis of the given information, calculate the value of:
(i) Fiscal deficit (3)
(ii) Primary deficit (2)

(B) State any two features of public goods. (1)

OR

(C) Explain the economic stability objective of the Government Budget. (3)
(D) ‘Under the Ayushman Bharat Scheme, the Government provides free medicines to the
economically backward section of the society’.
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 domestic income?  (3)
(i) Payment made by American tourist for goods purchased in India.
(ii) Tomatoes grown by Ms. Puja in her kitchen garden.
(b) “Machine purchased by a firm is always a capital good.” Do you agree with the given statement? Give valid reasons for your answer.  (3)

Economics Sample Paper Class 12 2024: Section B

Section B of the economics sample paper class 12 2024 is given here –

18. Identify the correct combination of the ‘Goals of Indian Five Year Plans’:
a) Growth, Equality, Modernisation, Self-Reliance
b) Development, Equality, Modernisation, Sustainability
c) Good Health, Education, Modernisation, Sustainability
d) Growth, Equity, Modernisation, Self-Reliance

19 ‘China has performed exceedingly well in various health and economic indicators Identify which of the following is not a health indicator?
a) Infant Mortality Rate (per 1000 live births)
b) Life Expectancy at Birth (years)
c) Percentage of people below poverty line (National)
d) Maternal Mortality Rate (per 1 lakh births)

20 The shackles of agriculture during the colonial rule Revolution that resulted from the application of ___
I. High Yielding Varieties (HYV)
II. Mechanization of Agriculture
III. Chemical Fertilizers and Pesticides
IV. Organic Fertilizers and Pesticides
Alternatives:
a) I, II, IV b) I, II, III
c) II, III, IV d) I, III, IV

Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of
activities may be envisaged under _________ as diversification activity.
a) Animal husbandry c) Horticulture

b) Fisheries d)Poultry

22 Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below.
Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis,
the rupee was devalued against foreign currencies.
Reason (R): Devaluation of currency was eminent, exchange reserves.
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, but Reason (R) is 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. Under _________ in China, farmers and industrial units were required to buy and sell fixed
quantities of inputs and outputs on the basis of prices fixed by the government and the rest
were purchased and sold at market prices. (

Choose the correct alternative to fill up the blank)
a) Commune System

b) Great Leap Forward
c) Dual Pricing

d) Great Proletarian Cultural Revolution

24. Micro credit programmes play a vital role in ensuring an overall development of the rural
economy as they____________.(Choose the correct alternative to fill up the blank)
(i) provide financial support
(ii) lead to women empowerment
(iii) enhance the reach of formal credit system
Alternatives:
a) (i) and (ii) b) (ii) and (iii)
c) (i) and (iii) d) (i), (ii) and (iii)
25 _______may be defined as the measure of the extent of demographic participation in the
social and political decision making.
(Choose the correct alternative to fill up the blank)
a) Economic indicator b) Liberty indicator
c) Health indicator d) Demographic indicator 1

26 Read the following statements carefully:
Statement 1: The nature of the unemployment problem in India is uni-faceted.
Statement 2: Worker-Population ratio is an indicator used for analyzing the employment situation in a country.
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 1

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

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

28 (A) “During the colonial period, a number of socio-economic indicators were in a dilapidated state.”

Economics Model Question Paper 2024 Class 12

Section A: MACRO ECONOMICS

1 Read the following statements carefully:
Statement 1: The level of consumption has a direct impact on the amount of savings the households can accumulate over time.
Statement 2: Higher consumption often lead to lower savings, while lower consumption tend to facilitate higher levels of savings.
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.

2. The scenario which would lead to an increase in GDP, but might not necessarily improve overall welfare?
a) Reduction in income inequality
b) Rapid growth of the financial sector
c) Expansion of environmentally harmful industries
d) Increased government investment in education and healthcare

3. If the government implements a tax cut and people use most of their extra money to increase their consumption, this suggests to the MPC that:

a) It is not applicable in this situation
b) It is low, indicating people prefer saving over spending
c) It is negative, indicating people are decreasing their consumption
d) It is high, indicating people are responsive to changes in income

4. A positive balance in the Capital Account of the Balance of Payments of a country indicates that:
a) trade balance is positive
b) currency is depreciating
c) it is experiencing a budget surplus
d) it is receiving more foreign investments than it is making abroad

5. In the web of financial interactions, when individuals harmoniously enter into agreements to honor the repayment of a loan at a designated point in the future, they are engaging in which pivotal function of
money:
a) a safe place to keep the wealth
b) a tool that helps to compare the value of different things
c) a bridge between people who want to buy things and people who want to sell things
d) a steady foundation that helps to agree on how to settle debts or loans at a later time

6.  Punjab National Bank receives a deposit of 80,000 and the reserve requirement is 10%. If the bank decides to hold reserves equal to 20% of the deposit instead of the required amount, how much excess reserve
does the bank hold?
a) 4,000
b) 8,000
c) 12,000
d) 16,000

7.  The interaction between the concept of the price level and the dynamics of aggregate demand in an economy is interconnected as:
a) the price level increases, aggregate demand increases
b) the price level increases, aggregate demand decreases
c) changes in the price level have no impact on aggregate demand
d) the relationship between the price level and aggregate demand is unpredictable

8.  The influence exerted by international borrowing on the foreign exchange supply within an economy is indicated when it:
a) minimally affects the supply of foreign exchange
b) tends to diminish the supply of foreign exchange
c) intends to increase the supply of foreign exchange
d) confined solely to alterations in the supply of domestic currency

9.  Given an economy with a Consumption Function of C = 750 + 0.5Y, where C represents Consumption Expenditure, Y represents National
Income and an Investment Expenditure of 2,300, what would be the
Consumption Expenditure at the equilibrium level?
a) 1,400
b) 6,100
c) 3,050
d) 3,800

10.  Which of the following best defines ‘Unilateral Transfers’ in the context of international transactions?
a) Funds transferred internationally as loans for a specified tenure and interest rate.
b) Trade transactions involving goods and services between two countries.
c) Payments made by one party without expecting any return in the future.
d) Investments made by a country in the stock market of another country.

11.  Elucidate the distinction between Autonomous Items and Accommodating Items concerning a nation’s Balance of Payments. Give examples to demonstrate country’s international economic interactions.

12. (A) Calculate Gross Domestic Product at market price using the Expenditure method:

OR
(B) Explain the concept of Double Counting in the context of calculating National Income and provide a practical way to avoid it.

13.  If National Income is 250 crore and Savings is 80 crore, find out Average Propensity to Consume. When National Income rises to 390 crore and Savings to 115 crore, what will be the Average Propensity to Consume and the Marginal Propensity to Save?

14. (A) Describe the economic scenario when ex-post Aggregate Demand surpasses ex-post Aggregate Supply and its potential consequences on price levels, production and employment.
OR

(B) Demonstrate your understanding of how the Reserve Bank of India can apply monetary policy tools to tackle a scenario of Deficient Demand in the economy? Identify and discuss four specific measures that the Reserve Bank of India can employ to effectively correct the situation.

15.  Explore four main functions of the Reserve Bank of India and how Each of these functions contributes to the overall growth of the Indian economy.

16.  (A). Utilizing the provided data, compute Revenue Deficit, Fiscal
Deficit and Primary Deficit:
Given Data ( in crore)
A Revenue expenditure 80,350
B Capital expenditure 92,000
C Interest payments 18,000
D Revenue receipts 63,875
E Borrowings 59,640
F Capital receipts 74,000

(B) Outline a hypothetical scenario where a government is considering implementing a new tax policy. In this scenario, explain how the introduction of a Progressive Tax would affect individuals with low, middle and high incomes.
OR
(C) Explain the Government’s Budget and its various sources of revenue. Present three actual instances of non-tax revenue earnings that a government could accumulate during its fiscal year.
(D). Highlight three main objectives that guide the government to frame their policies and decisions. Explain these three objectives providing examples.

17. (a). In the estimation of a country’s National Income, are the following items included? Provide reasons for each.
(i) Rent-free house to an employee by an employer
(ii) Purchases by foreign tourists
(iii) Purchase of a truck to carry goods by a production unit
(b). Elaborate on the concepts of Nominal Gross National Product and
Real Gross National Product with examples to illustrate the significance of these measures in economic decision-making.