CBSE Question Paper for Examination 2020-ECONOMICS (Code-58/5/1, 2, 3)

Code-58/5/1, 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. To reduce credit availability in the economy, the Central Bank may ______.

a. buy securities in the open market.

b. sell securities in the open market.

c. reduce reserve ratio.

d. reduce repo rate.

2. _______ deficit includes interest payment by the Government on the past loans.

(Fill up the blanks with correct answer).

3. State, whether the following statement is true or false :

‘Inventory is a stock variable.’ (Set-1& Set-3)

3. State, whether the following statement is true or false :

‘Purchase of machinery by a producer is an intermediate good.’ (Set-2)

4. Which of the following is not a ‘factor payment’? (Choose the correct alternative)

a. Free uniform to defence personnel.

b. Salaries to the Members of Parliament.

c. Rent paid to the owner of a building.

d. Scholarship given to the students.

5. In case of an underemployment equilibrium, which of the following alternative is not true? (Choose the correct alternative)

a. Aggregate demand is equal to Aggregate supply.

b. There exist excess production capacity in the economy.

c. Resources are not fully and efficiently utilised.

d. Resources are fully and efficiently utilised.

6. State, whether the following statement is true or false: ‘All financial Institutions are banking institutions.’(Set-1 &Set-2)

6. State, whether the following statement is true or false :

‘Margin requirement is raised by the Central Bank to increase money supply.’ (Set-3)

7. Combined factor income, which can’t be separated into various factor income components is known as ________. (Fill up the blanks with correct answer).

8. If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ₹ 250 crores, then the final change in income would be______. (Choose the correct alternative)

a. ₹ 1,000 crores

b. ₹ 1,200 crores

c. ₹ 500 crores

d. ₹ 3,500 crores

9. Define the term ‘Public Goods’. (Set-1&Set-3)

9. Which of the following statement is incorrect? (Set-2)

a. Gross Domestic Product (GDP) at Market price = GDP at factor cost plus Net Indirect taxes.

b. Net National product (NNP) at Market price = NNP at factor cost.

c. Gross National Product (GNP) at Market price = GDP at Market price Plus Net factor income from abroad.

d. Net National Product (NNP) at factor cost = National Income.

If the Real Gross Domestic Product (GDP) in an economy is ₹ 520 crores and Nominal Gross Domestic Product (GDP) is ₹650 crores, calculate the price Index.

10. Net Domestic Fixed Capital Formation + Change in Stock = _________.(Fill up the blank with correct answer)

When Nominal Gross Domestic Product (GDP) is₹ 840 crores and price Index is 120, then the Real Gross Domestic Product (GDP) will be________. (Fill up the blank with correct alternative) (Set-1&Set-2)

a. ₹ 700 crores

b. ₹ 900 crores

c. ₹ 800 crores

d. ₹ 500 crores

10. Rent + Interest + Profit = _______. (Fill up the blank with correct answer.) (Set-3)

When Nominal Gross Domestic Product (GDP) is ₹ 850 crores and Price Index is 170, Real Gross Domestic Product (GDP) will be ______. (Fill up the blank with correct answer)

Three Marks Questions

11. ‘Subsidies to the producers, should be treated as transfer payments.’ Defend or refute the given statement with a valid reason.

Explain Circular Flow of Income in a two-sector economy.

12. Calculate Gross Value Added at Market Price : (Set-1)

S. No.	Particulars	Amount (in ₹ crores)
i.	Depreciation	20
ii.	Domestic Sales	200
iii.	Change in Stocks	(-)10
iv.	Exports	10
v.	Single use producer goods	120

12. Calculate Net Value Added at factor cost from the following data: (Set-2)

S. No.	Particulars	(₹in lakh)
i.	Durable producer goods (with a life span of 10 years)	10
ii.	Single use producer goods	5
iii.	Sales	20
iv.	Unsold Goods (Stock)	2
v.	Goods & Services Tax (GST)	1

12. Calculate Net Domestic Product at factor cost from the following data: (Set-3)

S. No.	Particulars	(₹ in crores)
i.	Interest	700
ii.	Compensation of Employees	3000
iii.	Net Indirect Taxes	500
iv.	Rent and Profit	700
v.	Transfer Payments by Government	10

Four Marks Questions

13. ‘Taxation is an effective tool to reduce the inequalities of income.’ Justify the given statement with valid reasons.

14. In the given figure, what does the gap ‘KT’ represent? State any two fiscal measures to correct the situation.

FOR BLIND CANDIDATES

What is meant by deflationary gap? State any two fiscal measures to correct the situation of deflationary gap.

Explain, how the ‘Reverse Repo Rate’ helps in correcting Excess Demand in an economy?

15. Discuss the function of Central Bank as ‘Banker, Agent and Advisor’ to the Government. (Set-1)

15. Explain the ‘bank of note issue’ function of Central Bank. (Set-2)

15. Explain the function of Central Bank as ‘Banker’s Bank and Supervisor’. (Set-3)

Six Marks Questions

16. a. Differentiate between the concepts of ‘demand for domestic goods and services’ and ‘domestic demand for goods and services’.

b. Distinguish between ‘Current Account Deficit’ and ‘Current Account Surplus’. (Set-1)

16. a. ‘Recently Indian Rupee (`) has depreciated significantly. This has lead to distress for Indian importers.’ Defend or refute the given statement with valid reasons.

b. Distinguish between ‘trade deficit’ and ‘current account deficit’. (Set-2)

16. a. Explain the relationship between fall in price of a US Dollar ($) and its demand.

b. Distinguish between Autonomous items and Accommodating items. (Set-3)

17. Answer the following questions based on the data given below:

(i) Planned Investments = ₹100 crore.

(ii) C = 50 + 0.50 Y

a. Determine the equilibrium level of income.

b. Calculate the value of Savings at equilibrium level of National Income.

c. Calculate the value of Investment Multiplier.

Discuss the working of the adjustment mechanism in the following situations:

a. If Aggregate demand is greater than Aggregate supply.

b. If Ex-Ante Investments are less than Ex-Ante Savings.

SECTION B

(Indian Economic Development)

One Mark Question

18. Policy of ‘Import Substitution’ was targeted to protect ______ industries.

(Fill up the blank with correct answer)

19. Which of the following is not used as a strategy for Sustainable Development? (Choose the correct alternative)

a. Use of bio-gas

b. Use of solar power

c. Use of thermal power

d. Use of hydel power

20. Maternal Mortality Rate is high in ________ (China/Pakistan). (Fill up the blank with correct alternative)

21. State the meaning of ‘Marketed Surplus’. (Set-1)

State the meaning of ‘Subsidy’.

21. Define “Quota’. (Set-2)

21. ______ is one of the main positive contribution made by the British in India. (Fill up the blank with correct answer) (Set-3)

22. State, whether the following statement is true or false :

“As per the Human Development Report, 2018, India was ranked at 180^th position.”

23. If a construction site Manager hires two workers on daily wages basis, such a situation is covered under ______ (formal/informal) sector. (Fill up the blank with correct alternative)

24. Which of the following countries initiated its process of Economic Reforms in the year 1991? (Choose the correct alternative)

a. Pakistan

b. India

c. Russia

d. China

25. Greater proportion of women workers are found in ______ (urban/rural) areas as a component of Indian work force.(Choose the correct alternative)

26. State, whether the following statement is true or false:

“GATT was established in 1923 with 48 member countries.”

27. ‘GLF’ with respect to the People’s Republic of China referred to as ______.

(Choose the correct alternative).

a. Giant Leap Forward

b. Great Lead Forum

c. Great Leap Forward

d. Giant Lead Forum

Three Marks Questions

28. Discuss briefly the concept of ‘Informalisation of workforce’ in India.

State any three challenges facing 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. Discuss briefly any two major steps taken by the Government of India on ‘Financial Sector’ front under the Economic Reforms of 1991.

31. Discuss briefly any two salient features of India’s pre-independence occupational structure.

Discuss briefly, the rationale behind “equity with growth” as planning objectives for Indian Economy. (Set-1 & Set-3)

31. “Modernisation as a planning objective shows a dichotomy with employment generation.” Justify the statement.

State the two-fold motive for the systematic destabilization of indigenous Indian industries in the British era. (Set-2)

32. State and discuss any two problems faced by power sector in India. (Set-1)

Six Marks Questions

33. a. Explain, how does ‘Investment in Human Capital’ contributes to growth of an economy.

b. State the meaning of ‘Agricultural Marketing’. (Set-1) (4+2)

33. a. Discuss the need for on-the-job training for a employee.

b. Discuss the role played by horticulture in the direction of rural development in India. (Set-2) (3+3)

33. a. Distinguish between ‘Green Revolution’ & ‘Golden Revolution’.

b. How has women’s health become a matter of great concern in India? Explain. (Set-3) (2+4)

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

a. “Ujjawala Yojana has been a game changer for rural India.” State any three conventional fuels being targeted under the Ujjawala Yojana.

b. “Economists believe that India should spend atleast 6% of its GDP on Education for achieving desired results.”Justify the statement with valid reason.

Note:

The above question paper for CBSE Economics 2020- Code 58/5/1/2/3 combines the questions from all three sets so as to make it easy for the students to understand and analyse all the questions while preparing for their Board Examination. Uncommon questions that belong to all three sets are given their set number.

Original pdf. of Class XII Question Paper for Examination 2020- Code 58/5/1,2,3 is available on https://www.cbse.gov.in/cbsenew/question-paper.html

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