Posted by Anjali Kaur on Oct 05, 2021

Sample Paper Economics Class XII – Part 4

Sample Paper Economics Class XII – Part 4. In this post, you will find 22 questions with their solution.

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1. The Government can achieve its budget objective of ‘Redistribution of Income’ by _________

a. managing the General Price Level in the economy to the desired level.

b. increasing the GDP of the economy

c. bringing the production of goods and services under its direct and absolute control.

d. rationalization of taxes in a pro-poor direction.

Solution. d. rationalization of taxes in a pro-poor direction.

2. Balance of Payments of an economy records ______ for a fiscal year.

a. income and expenditure of the government

b. inflow and outflow of funds of the government

c. inflow and outflow of foreign exchange to/from the economy

d. inflow and outflow of loans to/from the rest of the world

Solution. c. inflow and outflow of foreign exchange to/from the economy

3. Identify which of the following bank does not interact directly with the general public?

a. Bank of India

b. State Bank of India

c. Central Bank of India

d. Reserve Bank of India

Solution. d. Reserve Bank of India

4. Identify which of the following is not an example of ‘invisible item’ under Current account of the BOP transactions

a. Air and sea transport

b. Postal and courier services

c. Education-related travel

d. Merchandise linked transactions

Solution. d. Merchandise linked transactions

5. Read the following statements carefully and choose the correct alternative from the following:

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 the 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.

Solution. a) Both the statements are true

6. Read the following statements carefully and choose the correct alternative from the following:

Statement 1 – Public goods are those goods and services that are collectively consumed by the public.

Statement 2 – Public goods are excludable and rivalrous in nature. 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

7. Under the BOP structure of a nation, the 2 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:

a) i and ii b) i and iii c) iii and iv d) iv and i

Solution: b) i and iii

8. Repo rate is the rate at which:

a. Commercial bank purchase government securities from the central bank

b. Commercial bank can take loans from the central bank

c. Commercial bank can keep their deposits with central bank

d. short term loans are given by commercial bank

Solution. b. Commercial bank can take loans from the central bank

9. Industrial Policy Resolution (IPR) 1956 formed the basis of the _____ Five Year Plan

a) First b) Fourth c) Second d) Third

Solution: c) Second

10. Occupational structure refers to _____

a. size of labour force in a country

b. number of people living in a country

c. distribution of workforce among different sectors of an economy

d. nature of different occupation

Solution. c. distribution of workforce among different sectors of an economy

11. ______ is the portion of agricultural produce which is sold in the market by the farmers, after meeting their self-consumption requirements.

a. trade surplus

b. marketable surplus

c. producer surplus

d. consumer surplus

Solution. b. marketable surplus

12. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – Poverty line in India is defined in terms of monetary value of the minimum nutritional requirements of an individual in a day.

Statement 2 – The definition of poverty line in monetary terms has not changed over the years.

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

13. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – India is often called as the ‘Outsourcing hub’ of the world. Statement 2- Availability of skilled manpower is one of the prime factors responsible for the status gained by India at the international platform.

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

14. Before the advent of Green Revolution in 1960’s India was primarily dependent on _____ for the supply of food grains.

a USA b. Britain c. Mexico d. USSR

Solution. a. USA

15. From the following given sets of statements in column I and column II, choose the correct pair of statements.

a. A – i

b. B -ii

c. C – iii

d. D – iv

Solution. d. D – iv This is the only correct pair, and the rest are incorrect.

16. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a ______ body to coordinate the activities of all institutions involved in the rural financing system.

a. Coopertive

b. apex

c. micro credit

d. private credit

Solution. b. apex

17. The Government of India has decided to vaccinate the adult population of India with covaxin/covishield, without any charge. This would be categorized as ______

a. revenue nature income

b. capital nature expenditure

c. revenue nature expenditure

d. capital nature income

Solution. c. revenue nature expenditure

18. ______ is not a reason for poverty in India.

a. Population explosion

b. rise in per capita income

c. low capital formation

d. socio – economic exclusion.

Solution. b. the rise in per capita income.

19. In a hypothetical economy, Mr. Neeraj has deposited Rs 100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ______

a. zero

b. Rs 100

c. not defined

d. 120

Solution. b. Rs 100

20. Since independence, India has witnessed a considerable fall in IMR. Identify which of the following may not be one of the reasons for the fall in IMR?

a. Improvement in health facilities over the years

b. Improvement in educational standards over the years

c. fall in standard of living of the population of the nation over the years

d. technological expansions over the years.

Solution. c. fall in the standard of living of the population of the nation over the years

21. 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.

Solution. d) Statement 2 is true and Statement 1 is false.

22. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – Government of India adopted ‘Trickle Down Approach’ to alleviate poverty to benefir the last man at the bottom of the pyramid. Statement 2 – Empirical data over the years have shown that trickle-down theory did not yield desired results in India.

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

I hope it is understandable to you all.

You can read more posts by me on national income:

  1. Real and nominal GDP
  2. National income
  3. National income formula list
  4. Value-added method
  5. Income method
  6. Expenditure method

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