Posted by
Anjali Kaur
on
Nov 01, 2021
Sample Paper 5 – Economics, Class XII
Sample Paper 5 – Economics, Class XII, this post is in continuation to the previous post, sample paper 4.
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23. Read the following statements – Assertion(A) and Reason(R): Assertion(A)- Acquisition of a domestic company by a foreign company will be recorded on the credit side of BOP.
Reason(R)- It leads to outflow of foreign exchange from the domestic economy.
a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion
b) Both assertion and reason are true and reason is not the correct explanation of assertion.
c) Assertion is true and reason is false.
d) Assertion is false but reason is true.
Solution. c) Assertion is true and the reason is false.
24. Suppose in an economy, the initial deposits of Rs 400 crores lead to the creation of total deposits worth Rs. 4000 crores. Under the given situation the value of reserve requirements would be______
a) 0.01 b) 1 c) 0.1 d) 0.4
Solution. Reserve requirement =?
The formula for total deposit creation = Initial Deposit x Money Multiplier
Money Multiplier (MM or K) = 1/ CRR times
CRR is the same as the reserve requirement.
Money Multiplier = 4000/400 = 10
CRR/RR = 1/10 = 0.1
25. Read the following statements – Assertion and Reason:
Assertion (A)- Major policy initiatives helped India to become self-sufficient in food grains production.
Reason(R) – The proportion of people depending on agriculture did not decline as expected after the Green Revolution. Choose the correct alternative:
a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion
b) Both assertion and reason are true and reason is not the correct explanation of assertion.
c) Assertion is true and reason is false.
d) Assertion is false but reason is true.
Solution. b) Both assertion and reason are true and the reason is not the correct explanation of assertion.
26. Identify the incorrect statement from the following:
a) Diversification in agriculture sector provides sustainable livelihood rural population
b) Diversification includes – change in cropping pattern, shift of workforce from agriculture to other allied activities and non-agriculture sector.
c) Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population
d) Diversification reduces the proportion of unemployed population in the rural areas to considerable limits.
Solution. c) Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population
27. Read the following statements – Assertion and Reason: Assertion (A) – Human capital treats human beings as a means to an end (increase in productivity) Reason (R) – HCF decreases by way of investments in education and health. From the given alternatives choose the correct one:
a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion
b) Both assertion and reason are true and reason is not the correct explanation of assertion.
c) Assertion is true and reason is false.
d) Assertion is false but reason is true.
Solution. c) Assertion is true and the reason is false.
28. Define agricultural marketing.
Solution. Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer.
29. From the set of statements given in Column I (Name of the Scheme) and Column II (Objective of Poverty Alleviation Program), choose the correct pair of statements:
Alternatives:
a) A-i
b) B-ii
c) C-iii
d) D-iv
Solution. c) C-iii
30.
On the basis of the above-mentioned information answer the following question:
The Real Per Capita Income of India (as per the given data) has increased by _______________ (approximately) between 1951 and 2016-17. (Fill up the blank with correct alternative)
a) 915% b) 1015 % c) 815% d) 715%
Solution. Real Per Capita Income = Change in Real Per Capita Income divided by original or base year real per capita income x 100
Real Per Capita Income = (77,659 – 7,651) / 7651 x 100
Real Per Capita Income = 70008/ 7651 x 100
Real Per Capita Income = 915%
31. Read the following statements – Assertion (A) and Reason (R):
Assertion (A) – The goal of equitable distribution of land was fully served by abolition of intermediaries, in the post-independence India.
Reason(R) – Big landlords challenged the land ceiling legislation, delaying the implementation and subsequently escaping from the legislation
From the given alternatives choose the correct one: 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.
Solution. d) Assertion (A) is false but Reason (R) is true.
32. Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The emergence of Self-Help Groups (SHG’s) ensured the reduction in the fissures of the formal credit system.
Statement 2 – The borrowings from SHGs mainly confined to consumption purposes by its members.
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
Solution. a) Both the statements are true.
33. Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The value of money multiplier is determined by the reserve ratio prevailing in the monetary system. Statement 2 – The process of credit creation directly relates to the value of reserve ratio.
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
Solution: c) Statement 1 is true and Statement 2 is false
34. Arrange the following event in the correct chronological order:
a. The year of great divide
b. Establishment of TISCO
c. Introduction of Railways in India by the British
d. Opening of Suez Canal.
Alternatives:
1. d,b,a,c
2. a,d,c,b
3. b,c,d,a
4. c,d,b,a
Solution: 4. c,d,b,a
35. Read the following statements:
Assertion (A): Trade of invisible items between two nations is a part of capital account of BOP.
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.
From the given alternatives choose the correct one: 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.
Solution: d) Assertion (A) is false but Reason (R) is true.
Thank You!
- Sample paper 1 on Macroeconomics
- Sample paper 2 on Macroeconomics
- Sample paper 3
- Sample paper 4
- Sample paper 1 on Indian Economy
- Sample paper 2 on Indian Economy
- Practice test on Indian Economy
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