NIRMALA CONVENT SCHOOL, RAJKOT

PRE BOARD 1 EXAMINATION 2024

SUB – ECONOMICS (CODE 030)
STD – XII MARKS - 80
Time Allowed: 3 Hours
General Instructions:
1. This question paper contains two sections:
Section A – Micro Economics
Section B – Statistics
2. Questions No. 1 to 10 and 18 to 27 are Multiple Choice Questions of 1 mark each.
3. Questions No. 11 to 12 and 28 to 29 are Short Answer questions of 3 marks each, to
be answered in 60 to 80 words.
4. Questions No. 13 to 15 and 30 to 32 are Short Answer questions of 4 marks each, to
be answered in 80 to 100 words.
5. Questions No. 16 to 17 and 33 to 34 are Long Answer questions of 6 marks each, to
be answered in 100 to 150 words.
Qn SECTION A – MACRO ECONOMICS M
1) Foreign embassies in India are a part of India’s: 1
a. Economic Territory
b. Geographical Territory
c. Special Territory
d. Both (a) and (b)
2) Read the following statements: 1
Assertion (A): NNPFC is a national concept
Reason (R): National income includes value of final goods and services produced in
the entire world by all producers who are the normal residents of the country.
a. Assertion (A) and Reason (R) are true and R is the correct explanation of A
b. Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c. Assertion (A) is true and Reason (R) is false
d. Assertion (A) is false and Reason (R) is true
3) Which of the following can have a not- defined value? 1
a. APC
b. MPC
c. MPS
d. APS
4) Which of the following is the capital receipt in the Government Budget? 1
a. Income Tax
b. Interest Receipt
c. Sale of shares of a Public Sector Undertaking to X Limited
d. Dividend from a Public Sector Undertaking
5) Zero Primary Deficit means: 1
a. Fiscal deficit is also zero
b. No interest payments
 c. Government has to resort to borrowings only to meet interest payments
d. No borrowings requirements
6) Disinvestment by government means: 1
a. Selling of its fixed capital assets
b. Selling of shares of public enterprises held by it
c. Selling of its buildings
d. All of these
7) Banks create credit: 1
a. Out of nothing
b. On the basis of their securities
c. On the basis of their total assets
d. On the basis of deposits
8) Break - even point is achieved when: 1
a. National Income = Consumption
b. Consumption = Savings
c. Consumption = Investment
d. National Income > Consumption
9) Identify the tax whose burden can be shifted: 1
a. Income Tax
b. Goods and Service Tax
c. Corporate Tax
d. None of these
10) Which of the following will increase the money supply? 1
a. Fall in the repo rate
b. Purchase of securities in open market
c. Decrease in cash reserve ratio
d. All of these
11) Which of the following is/are included in the capital budget of the government and 3
why?
a. Borrowing from the public
b. Expenditure of acquisition of assets like roads, buildings, machinery etc.
c. Loans and advances granted to the State Government
12) Calculate Net Value Added at Factor Cost from the following: 3
Sr. No Particulars Amount(Rs.)
1 Fixed Capital Goods (Average life span – 5 years) 15
2 Domestic Sales 220
3 Change in Stock -10
4 Exports 10
5 Single use producer goods 100
6 Net Indirect Taxes 20
13) a. State the meaning of unintended accumulation of inventories. 4
b. In an economy AD > AS. What will be the impact on the output, income and
employment levels
14) From the following data calculate Investment Multiplier and Equilibrium level of 4
Income in the economy.
 i. Change in initial investment = Rs. 1000 crore
ii. Marginal Propensity to Save = 0.5
iii. Autonomous Consumption = Rs. 50 crore
iv. Planned Investment = Rs. 100 crore
15) ‘Open Market Operations’ by the RBI help in regulating the money supply in India. 4
Explain.
16) a. In what sense can defence and security services provided by the government be 6
treated as intermediate services?
b. Government has raised its expenditure on free services like education and health to
the poor. Explain the economic value it reflects
17) a. How can budgetary policy be used to reduce the inequalities of income? 6
b. Write any three implications of Primary Deficit.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18) Read the following statements carefully: 1
Statement 1: Casual workers are hired on a permanent basis and also get social
security benefits.
Statement 2: Workforce comprises of both employed and unemployed persons
a. Statement 1 is true and Statement 2 is false
b. Statement 1 is false and Statement 2 is true
c. Both the statements 1 and 2 are true
d. Both the statements 1 and 2 are false
19) _______ takes place when the surface soil is washed away through excessive rains 1
and floods.
a. Land Degradation
b. Soil Erosion
c. Biodiversity loss
d. Deforestation
20) India’s jute industry suffered heavily due to ____________ after partition. 1
a. Lack of raw material
b. Famines
c. Earthquakes
d. None of these
21) The scheme of ‘Micro Finance’ is extended through ________ credit provision. 1
a. Self help groups
b. Land Development Banks
c. Regional Rural Banks
d. Commercial Banks
22) Read the following statements carefully: 1
Statement 1: Outsourcing is one of the important outcome of globalization process
Statement 2: Owing to globalization, many Indian companies have expanded their
operations abroad.
a. Statement 1 is true and Statement 2 is false
b. Statement 1 is false and Statement 2 is true
c. Both the statements 1 and 2 are true
d. Both the statements 1 and 2 are false
23) ____________ farming is a system that is helpful in restoring, maintaining and 1
enhancing the ecological balance.
a. Multi – layered
b. Chemical
c. Organic
d. Conventional
24) Seasonal unemployment occurs mainly in ___________ 1
a. Private sector industry
b. Public sector industry
c. Agriculture
d. Banks
25) Which of the following economic reforms were initiated by the government under 1
liberalization?
a. Industrial sector reforms
b. Tax reforms
c. Financial sector reforms
d. All of these
26) From 1881 onwards, census operations in India were carried out after every 1
________ years.
a. 5
b. 15
c. 20
d. 10
27) The Central Pollution Control Board has identified _________ categories of large 1
and medium industries as polluting industries.
a. 15
b. 17
c. 19
d. 13
28) ‘Opening up of Suez Canal helped in establishing the British monopoly over India’s 3
foreign trade.’
29) ‘Process of Globalization has produced only positive results for India and other 3
countries.’ Comment.
30) Throw light on the ‘Chipko Movement’ in the Himalayas 4
31) What is human capital? Explain atleast three areas where expenditure made is 4
considered to be expenditure on human capital formation.
32) ‘In a nation like India, self employment provides an important avenue for 4
employment generation.’ Defend or refute the given statement with valid arguments.
33) a. ‘Direct and active participation of state was considered essential in the Industrial 3+3
Development process in the period 1950-1990.’ Justify
b. New Economic Policy 1991 altered the role of Reserve Bank of India in the
economy. Explain the statement.
34) a. Why is agricultural diversification essential for sustainable livelihoods? State any 3+3
three merits of ‘Sustainable Development.’
b. How ‘Brain – Drain’ can be a problem for human capital formation in India?
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