JKG INTERNATIONAL SCHOOL

HALFYEARLY EXAM
ECONOMICS (030)
Class XII Session 2023-24
SET B
Time: 3 Hours Max. Marks: 80
General Instructions:
1.This question paper contains two sections: Section A – Macro Economics
Section B – Indian Economic Development
2.This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3.This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4.This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5.This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Section A -Macro Economics

Multiple Choice Questions (Q1 to Q10) 1 x 10=10
Q1. Which of the following statements is correct?
(i) Supply of money is a stock concept.
(ii) Supply of money does not include stock of money held by the government.
(iii) Supply of money includes the stock of money by the banking system of a country.
(a) (i) and (iii) (b) (i), (ii) and (iii) (c) (ii) and (iii) (d) (i) and (ii)
or
bank nurtures the market for government securities in India.
(a) Central bank (b) Commercial banks (c) World bank (d) All of these
Q2. Two friends discussed the recent changes made in the taxation system by the Government in the
year 2017 and commented, “this revolutionary tax exhibits a unified system of taxation while
subsuming all the other taxes and making the previously cumbersome process of taxes easy.”
Which tax they are discussing and one quality that particular tax possesses?
(a)Corporate tax, burden cannot be shifted (b) Income tax, burden can be shifted
(c) Value-added tax, burden can be shifted (d) Goods and Services tax, burden can be Shifted
Q3. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below: Assertion (A): Banks charge a higher interest rate on loans than what
they offer on deposits.
Reason (R): The difference between what is charged from borrowers and what is paid to depositors
is their main source of income.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false
Q4. Choose the correct alternatives to be filled in given blanks A, B and C.

(a) A - Government budget, B - Revenue receipts, C - Capital receipts

(b) A - Revenue receipts, B - Capital receipts, C - Government budget
(c) A - Capital receipts, B - Revenue receipts, C - Government budget
(d) A - Capital receipts, B - Government budget, C - Revenue receipts
Q5. Read the following statements carefully:
Statement 1: Goods and Services Tax is the recent tax introduced by the Government of India.
Statement 2: Goods and Services Tax was introduced on 1st April 2017.
In the light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true (b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false (d) Both statements 1 and 2 are true

Q6. Which among the following are a part of a country’s Net Domestic Product (NDP) at Market Price?
(Choose the correct alternatives)
1. Net Indirect Taxes
2. Net export
3. Net Factor Income From Abroad
4. Consumption of Fixed capital Alternatives:
a) 1 and 2 only
b) 1 and 3 only
c) 2 and 3 only
d) 3 and 4 only

Q7. The following information is given for an imaginary economy

Particular (Rs. In Crores)
(i) Revenue Expenditure 45000
(ii) Borrowings 12000
(iii) Revenue Receipt 35000
(iv) Interest Payments 30% of Revenue Deficit
Fiscal deficit will be and Primary deficit will be (Choose the correct alternative)
(a) Rs. 10000/ and Rs.8000/
(b) Rs. 10000/ and Rs.9000/
(c) Rs. 12000/ and Rs.9000/
(d) Rs. 12000/ and Rs.5000/
Q8. Ms Meenaskhi is a student of class XII,was asking about the reason for price rise in petroleum
products due to Russia Ukraine crisis.
The teacher was explaining the hike in price of crude oil by the OPEC countries in the
 international market. From the above discussion, which item of the Balance of Payment
explained by them?
(a) Visible items
(b) Invisible item
(c) Unilateral items
(d) Capital items
Q9. Read the following statements carefully and choose the correct alternative from the following:
Statement 1: In accounting sense, Balance Of Payment(BOP) always remain balanced
because of double entry system
Statement 2: Imbalance in BOP account indicates that its sub accounts are imbalanced
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
Q10. The biggest driver of economic growth is:
(a) Gross fixed capital formation (b) Inventory investment
(c) Consumption demand (d) None of these
or
______is crucial for revenue collection.
(a) Net value added (b) National Income (c) Nominal GDP (d) Gross value added
Short Answer Questions (Q11 to Q12) 3 x 2 = 6
Q11. ‘Exchange rate of US$ rose considerably in India.’ Explain the impact of this statement on Indian
exports and analyse its repercussion on the general masses.
or
State the components of the current account of Balance of Payments.
Q12. ‘Many large Multinational Corporations (MNCs) have recently shifted their investments from China
and have started their production in India, thereby boosting the Make in India plans of the
Government’. Presuming other factors being constant, discuss the effects of the given statement
on Foreign Exchange rates with reference to the Indian Economy.

Short Answer Questions (Q13 to Q15) 4 x 3 = 12

Q13. India’s GDP contracted 23.9% in the April-June quarter of 2020-21 as compared to same period of
2019-20, suggesting that the lockdown has hit the economy hard”.
— Hindustan Times, 1st September 2020 State and discuss any two fiscal measures that may be
taken by the Government of India to correct the situation indicated in the above news report.

Q14. ‘Growth of Indian Economy requires investment’. In this context , how Reserve Bank of
Indian(RBI) can use the instrument of Cash Reserve Ratio (CRR)?
Q15. How is GST administered in India?
or
Explain the role of government budget in fighting inflationary and deflationary tendencies.

Long Answer Questions (Q16 to Q17) 6 x 2 = 12

Q16. (a) Calculate GDP at market price by Income and expenditure Method:
(₹ in crores)
(i) Compensation of employees 120
(ii) Exports 25
(iii) Mixed Income of the self-employed 140
(iv) Imports 30
(v) Interest on national debt 5
(vi) Private final consumption expenditure 255
(vii) Gross fixed capital formation 65
 (viii) Consumption of fixed capital 40
(ix) Subsidies 10
(x) Government’s final consumption expenditure 35
(xi) Change in stocks 20
(xii) Indirect tax 45
(xiii) Net factor income from rest of the world (—) 10
(xiv) Rent, interest and profit 50

or
(a) Calculate Net National Product at Market Price from the following data:
(₹ in thousand crores)
(i) Compensation of employees 250
(ii) Mixed income of self-employeds 600
(iii) Profit 80
(iv) Interest 40
(v) Rent 30
(vi) Net factor income to abroad (—) 10
(vii) Net exports 15
(viii) Consumption of fixed capital 20
(ix) Net indirect taxes 10
(x) Net current transfers to abroad 8
(b) Explain how the following should be treated while estimating national income:
(i) Free medical facilities by the employer
(ii) Income arising out of the sale of shares

Q17. Interpret the given shown trend in capital expenditure. Also state reason why government has
relied on it after Covid-19 disruptions.

Section B -Indian Economic Development

Multiple Choice Questions (Q18 to Q27) 1 x 10=10

Q18. Read the following statements carefully:
 Statement 1: The production of a diverse variety of crops rather than one specialized crop is called
diversification of crop production.
Statement 2: The ‘Golden Revolution’ was a period of very high productivity in horticulture. In the
light of the given statements, choose the correct alternative from the following:
(a) Statement 1 is false and statement 2 is true
(b) Statement 1 is true and statement 2 is false
(c) Both statements 1 and 2 are false
(d) Both statements 1 and 2 are true

Q19. According to some Economists, which of the following arguments against the subsidy is correct?
(a) Subsidies do not benefit the poor and small farmers
(b) Substantial amount of subsidies go to fertilizer industry
(c) Subsidies put a huge burden on government finance.
(d) All of these.

Q20. Identify the correct pair from Column I and Column II and choose the correct alternative:

Column I Column II
A. Objective of planning (i) Equal distribution
B. MRTP Act (ii) Protection of large scale industries
C. Second five year plan (iii) 1956-1961
D. Full employment (iv) A situation of zero unemployment
Alternatives:
(a) C - (iii) (b) A - (i) (c) D - (iv) (d) B - (ii)

Q21. Human capital formation of a country leads to (choose the correct alternative)
(a)Efficient Utilisation of resources
(b)Increase in stock of physical capital
(c)Increase in GDP Growth
(d)Both (a) and (c)
Q22. Read the following statements carefully and choose the correct alternative among those given
below:
Statement 1:- When India approached the World Bank and IMF,it received a loan of US $8
billion.
Statement 2:- New economic policy was more a matter of compulsion rather than a
considered independent choice of the government.
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
Q23. Three-tire system of rural co-operative credit societies is:
(a) Central Co-operative Banks (b) State Co-operative Banks
(c) Primary Agricultural Credit Societies (PACS) (d) All of these
or
Before introducing new technology, a firm provides the basic skills to the workers regarding its
usage. Which of the following sources of human capital formation is being highlighted here?
(a) Expenditure on information (b) Study programme for adults
(c) Investment in education (d) On-the-job training
Q24. One of the following statements about the Indian economy is not true. Identify the statement:
(a) Indian economy was flourishing before the advent of British.
(b) British developed the railway system in India for their own benefit.
(c) India had a sound industrial base under the British.
 (d) India’s foreign trade throughout the colonial period was marked by a large export
surplus
Q25. Arrange the following events in the correct chronological order in context of Indian economy and
choose the correct alternative:
(i) First phase of green revolution
(ii) Launch of First Five Year Plan
(iii) First Industrial policy resolution
(iv) Constitution of Karve committee
Alternatives;
(a) (i),(ii),(iv),(iii)
(b) (iii),(ii),(iv),(i)
(c) (iv),(i),(iii),(ii)
(d) (iii),(i),(iv),(ii)

Q26. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below: Assertion (A): Privatisation process leads to a change in management
with a change in ownership.
Reason (R): Change in management is not a necessary condition for the process of privatization.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(c) Assertion (A) is false but Reason (R) is true
(d) Assertion (A) is true but Reason (R) is false

Q27. The ‘Operation Flood’ programme was successfully implemented from the year .
(a) 1970 (b) 1892 (c) 1995 (d) 1982
or
Data on unemployment in India can be obtained from
(a) National Sample Survey Organisation (b) Directorate General Employment of India
(c) Reports of Census of India (d) All of these

Short Answer Questions (Q28 to Q29) 3 x 2 = 6

Q28. Observe the given figure carefully and answer the question that follows:

What was the offer before green revolution and why Indian farmers were not ready for the same
offer after green revolution?
Q29. Highlight the positive contributions made by the British in India.
or
What was the two-fold motive behind the systematic deindustrialisation affected by the British in
pre-independent India?
Short Answer Questions (Q30 to Q32) 4 x 3 = 12
Q30. What is the need for diversification?
Q31. What are the main problems of human capital formation in India?

Q32. ‘Under the colonial regime the real motive behind the development of infrastructure was to meet
various colonial interests.’ Accept/Refute the above statement. Give reason in support of your
answer.
Long Answer Questions (Q33 to Q34) 6 x 2 = 12
Q33. “Existence of widespread unemployment in India is the cumulative result of many causes.” Explain
any four main causes of unemployment in India.
Q34. Discuss how the use of Information Technology can help in rural development of India