CBSE Question Paper for Examination 2020-ECONOMICS (Code-58/1/1, 2, 3)

Question Paper for Examination 2020

Class XII

ECONOMICS

Time allowed: 3 hours Maximum Marks:100

General Instructions:

Read the following instructions very carefully and strictly follow them:

(i) This question paper comprises two sections- A and B. All questions are compulsory.

(ii) Question numbers 1 – 10 and 18 – 27 are very short-answer questions carrying 1 mark each. They are required to be answered in one word or one sentence each.

(iii) Question numbers 11 – 12 and 28 – 29 are short-answer questions carrying 3 marks each. Answers to them should not normally exceed 60 – 80 words each.

(iv) Question numbers 13 – 15 and 30 – 32 are also short-answer questions carrying 4 marks each. Answers to them should not normally exceed 80 – 100 words each.

(v) Question numbers 16 – 17 and 33 – 34 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100 – 150 words each.

(vi) Answers should be brief and to the point. Also the above word limit be adhered to as far as possible.

(vii) There is no overall choice. However, an internal choice has been provided in 2 questions of one mark, 2 questions of three marks, 2 questions of four marks, and 2 questions of six marks. Only one of the choices in such questions have to be attempted.

(viii) In addition to this, separate instructions are given with each section and question, wherever necessary.

SECTION A

(Macro Economics)

One Mark Question

1. In order to control the money supply in the economy, the Central Bank may ________. (Choose the correct alternative)

(a) buy securities in the open market

(b) sell securities in the open market

(d) reduce repo rate

2. State whether the following statement is true or false:

‘‘Government Budget is an important monetary policy instrument.’’

Disinvestment is a ________ (capital/revenue) receipt of the government.

(Choose the correct alternative)

3. Effective demand is defined as ___________________.

(Fill in the blank with the suitable definition)

4. Two components of money supply are ________ and ________.

(Fill in the blanks with correct answers)

5. State whether the following statement is true or false:

‘‘Expected obsolescence is included in depreciation.’’

6. Fiscal deficit can be estimated using the formula ________. (Set-1)

(Fill in the blank with the correct formula)

Primary Deficit can be estimated using the formula ________. (Set-2)

(Fill in the blank with correct formula)

Revenue Deficit can be estimated using the formula ________. (Set-3)

(Fill in the blank with correct formula)

7. According to the theory of Keynesian Economics, the value of Average Propensity to consume can never be ________ (Choose the correct alternative)

(a) zero

(b) unity (1)

(d) less than one

8. ________ is one of the most important sources of demand for foreign currency.

(Fill in the blank with the correct answer)

9. State whether the following statement is true or false:

‘‘As per Keynesian theory in an economy, full employment can never exist.’’

10. Define ‘Trade Surplus’. (Set-1)

10. State the meaning of ‘Trade Deficit’. (Set-2)

10. State the meaning of ‘Current Account Deficit’. (Set-3)

Three Marks Questions

11 ‘‘Final goods include only those goods which are consumed by the households.’’ Defend or refute the given statement with a valid reason.

‘‘Circular flow principle is based on the assumption that one’s expenditure will become other’s income.’’ Explain the given statement.

12. ‘‘Ex-ante Aggregate Demand is always equal to Ex-ante Aggregate Supply.’’Justify the following statement, with valid reason. (Set-1)

12.‘‘Ex-Ante Savings and Ex-Ante Investments are always equal.’’ Defend or refute the given statement with valid reasons. (Set-2)

12.‘‘Ex-Ante Aggregate Demand and Ex-Ante Aggregate Supply are always equal.’’ Defend or refute the given statement with valid reasons. (Set-3)

Four Marks Questions

13. Using a hypothetical numerical example, explain the process of credit creation by a commercial bank.

‘‘Central Bank acts as the banker to the government.’’ Elaborate the given statement.

14. ‘‘India is taking huge leaps in the index of Ease of Doing Business, as a result many MNCs are shifting their production base to India.’’ In the light of the above statement, comment upon the flow of foreign exchange and its likely impact on the Indian Economy.

15. (a) Define ‘Revenue Expenditure’. (Set-1)

(b) Distinguish between Direct tax and Indirect tax. (1+3)

15. (a) Distinguish between Tax Revenue and Non-Tax Revenue. (Set-2)

(b) State any one example of Capital Expenditure. (3+1)

15. (a) Distinguish between Capital Expenditure and Revenue Expenditure. (Set-3)

(b) Define ‘Tax’. (3+1)

Six Marks Questions

16. (a) Calculate the value of ‘Change in Stock’ from the following data:

S. No.	Items	Amount (in ₹ crores)
i.	Sales	400
ii.	Net Value Added at Factor Cost (NVAFC)	200
iii.	Subsidies	10
iv	Change in Stock	?
v	Depreciation	40
vi	Intermediate Consumption	100

(b) Define Real Gross Domestic Product. (4+2)

(a) Discuss briefly the three components of ‘Income from Property and Entrepreneurship’.

(b) What are ‘externalities’? State its types with suitable examples. (3+3)

17. In an economy, if initial investments are increased by ₹ 100 crores, discuss the working of investment multiplier presuming marginal propensity to consume is 0·8.

18. Using a well-labelled diagram, show how Saving curve can be derived from Consumption curve.

For Visually Impaired Candidates:

(a) If the Saving function is S = (–) 10 + 0·2Y, how can Consumption function be derived from the given Saving function?

(b) Distinguish between Average Propensity to Save and Marginal Propensity to Save. (3+3)

SECTION B

(Indian Economic Development)

One Mark Question

18. During India’s first seven five-year plans, the Government of India adopted ________ policy to protect domestic industries.

(Fill up the blank with correct answer)

19. Mention any one advantage of Organic farming. (Set-1)

19. State the meaning of ‘White Revolution’. (Set-2)

19. State the meaning of Golden Revolution. (Set-3)

20. State whether the following statement is true or false:

‘‘In the past few decades, primary sector has created maximum jobs in India.’’

21. ________ was the predecessor organisation to World Trade Organisation (WTO).

(Choose the correct alternative)

(a) International Bank for Reconstruction and Development (IBRD)

(b) International Monetary Fund (IMF)

(d) General Agreement on Tariffs and Trade (GATT)

22. India is not a member of which of the following regional/global economic gr

(Choose the correct alternative)

(a) European Union

(b) BRICS

(d) SAARC

Pakistan introduced its economic reforms in the year ____________ .

(Choose the correct alternative)

(a) 1974

(b) 1976

(d) 1988

23. State whether the following statement is true or false :

‘‘Self-Help Groups (SHGs) are an example of a microcredit organisation.’’

24. The main aim of ‘Great Leap Forward’ was to ensure rapid increase in ________ (primary/secondary/tertiary) sector in China.

(Choose the correct alternative)

25. State any one outcome of implementation of Economic Reforms in India in 1991.

26. Arrange the following events in chronological order and choose the correct answer from the given alternatives:

(i) Establishment of People’s Republic of China

(ii) Creation of Pakistan

(iii) First Five-Year Plan of India

(iv) First Five-Year Plan of China

Alternatives:

(a) (i), (iv), (ii), (iii)

(b) (iii), (ii), (i), (iv)

(d) (iv), (iii), (ii), (i)

27. First Industrial Policy Resolution of Independent India was announced in the year ________.

(Fill in the blank with correct alternative)

(a) 1947

(b) 1948

(d) 1956

Three Marks Questions

28. ‘‘Human Capital Formation gives birth to innovation, invention and technological improvements.’’ Do you agree with the given statement? Support your answer with valid arguments.

Critically evaluate the role of rural banking system in the process of rural development in India.

29. Compare and analyse the given data of India and China, with valid reasons:

Country

Annual Growth Rate of

Population (2015)

Gender Ratio

(Per thousand males)

India

1·2%

929

China

0·5%

941

Source: World Development Indicators, 2015

Four Marks Questions

30. ‘‘India is often called as outsourcing destination of the world.’’ Discuss the prime reasons for this name given to India.

State the meaning of import substitution. Explain how import substitution can protect the domestic industries.

31. (a) State any one positive contribution made by the British in India.

(b) Indicate the volume and direction of foreign trade of India at the time of Independence. (1+3)

31. (a) Name any one prominent economist who estimated India’s National Income during the Colonial period.

(b) Discuss any two causes of India’s agricultural stagnation during the Colonial period. (1+3)

32. Define any two of the following:

(a) Absorptive Capacity of Environment

(b) Carrying Capacity of Environment

Six Marks Questions

33. (a) Why are less women found in regular salaried employment? (Set-1)

(b)Analyse the recent trends in sectoral distribution of workforce in India: (3+3)

Trends in Employment Pattern (Sector-wise), 1993 – 2012 (in %)

Sector	1993 - 94	1999 -2000	2011 - 2012
Primary	64	60.4	48.9
Secondary	16	15.8	24.3
Services	20	23.8	26.8

33. (a) State the names of six Indian Systems of Medicine (ISM) under the AYUSH scheme of the Government of India. (Set-2)

(b) Analyse the recent trends in sectoral distribution of workforce in India: (3+3)

Trends in Employment Pattern (Sector-wise), 1993 – 2012 (in %)

*Sector*	*1993* - 94	*1999* -*2000*	*2011* - *2012*
Primary	64	60.4	48.9
Secondary	16	15.8	24.3
Services	20	23.8	26.8

34. (a) ‘‘Ujjwala Yojana has been a game-changer for rural India.’’ State any three conventional fuels being targeted under the LPG cylinder distribution scheme (Ujjwala Yojana).

(b) ‘‘Indian Health System needs a stronger dose of public expenditure to cure itself.’’ Justify the given statement with valid arguments. (3+3)

Critically examine the results of Poverty Alleviation Programmes implemented in India since Independence.

34. (a) What is meant by ‘Global Burden of Disease’?

(b) Discuss any two problems faced by power sector in India. (2+4)

Critically examine the results of Poverty Alleviation Programmes implemented in India since independence.

Note:

We have tried to present the questions collectively from all three sets of Economics Class XII question paper 2020 so to make it easy for you to read and understand.

Students can also access the Original pdf. of Class XII Question Paper for Examination 2020- Code 58/1/1,2,3 is available on https://www.cbse.gov.in/cbsenew/question-paper.html - A web page of CBSE Website.

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