कक्षा बारहिीं के ललए संभागीय स्तर द्वितीय परीक्षा (2024-25)
Regional Level II Common Monthly Test for Class XII (2024-25)
Subject : Economics M.M. : 50 Class : XII Time : 120 Minutes GENERAL INSTRUCTIONS: 1. This paper contains 10 Multiple Choice Type Questions of 1 mark each. 2. This paper contains 4 Short Answer Type Questions of 3 marks each to be answered in 60 to 80 words. 3. This paper contains 4 Short Answer Type Questions of 4 marks each to be answered in 80 to 100 words. 4. This paper contains 2 Long Answer Type Questions of 6 marks each to be answered in 100 to 150 words.
1. Read the following statements: Assertion (A) and Reason (R). Choose the 1 correct option from those given below: Assertion (A): Transfer Payments are not included in calculation of national income. Reason (R): Transfer payments such as old age pension, unemployment allowance etc. are part of government expenditure. Options: A. Both (A) and (R) are true and (R) is the correct explanation of (A). B. Both (A) and (R) are true, but (R) is not correct explanation of (A). C. Assertion (A) is true, but Reason (R) is false. D. Assertion (A) is false, but Reason (R) is true. 2. Every bank is required to maintain a fixed percentage of its assets in the 1 form of cash called A. Cash Reserve Ratio B. Statutory Liquidity Ratio C. Both (A) and (B) D. Neither (A) nor (B) 3. ______________savings refers to actual savings during a given year 1 A. Marginal propensity to save B. Ex-ante C. Average propensity to save D. Ex-post 4. TISCO was incorporated in the year 1 A. 1881 B. 1907 C. 1951 D. 1921 5. Who is known as the architect of Indian planning 1 A. Pt. Jawaharlal Nehru B. Dr. B.R. Ambedkar C. Dr. Manmohan Singh D. Prof. P. C. Mahalanobis
Page 1 of 5 6. Statement 1: -An American working in International Labour Organisation 1 located in India is a normal resident of India Statement 2: -Increase in National Income does not always imply increase in welfare. In light of the given statements, choose the correct option from the following: A. Statement 1 is true and Statement 2 is false. B. Statement 1 is false and Statement 2 is true. C. Both Statements 1 and 2 are true. D. Both Statements 1 and 2 are false. 7. 1
Observe the given diagram and chose the option to correct the given situation A. Purchase of treasury bills and government securities by the central bank B. Increase in Margin Requirement C. Decrease in Government Expenditure D. Increase in existing taxes and introducing new taxes 8. Identify, which of the following statement is incorrect about the liberalisation 1 measures introduced in 1991? (Choose the correct option) A. Many goods produced by small-scale industries have now been deserved. B. Foreign investment limit in banks was raised to around 74% C. The rate of corporation tax has been gradually increased D. Change in the role of the Reserve Bank of India from regulator to facilitator 9. Read the following statements carefully: 1 Statement 1: - The goal of equitable distribution of land was fully served by the abolition of intermediaries, in post-independence India. Statement 2: - Big landlords challenged the land ceiling legislation, delaying the implementation and subsequently escaping from the legislation. In light of the given statements, choose the correct option from the following: A. Statement 1 is true and Statement 2 is false. B. Statement 1 is false and Statement 2 is true. C. Both Statements 1 and 2 are true. D. Both Statements 1 and 2 are false. 10. 1
Page 2 of 5 The picture above shows transformation of economy because of A. Goods and Service Tax B. Disinvestment C. Demonetisation D. Devaluation 11. Read the following text carefully : “After setting up a working group to study the possibility of Central Bank Digital Currency(CBDC) in India in 2020, the RBI revealed a concept note on digital rupee (e-rupee) on 7th October, 2022” “ The e-rupee will provide an additional option to the currency available forms of money. It is sustainiability not different from bank notes, but being digital it is likely to be easier, faster and cheaper.” RBI said that it broadly defines CBDC as the legal tender issued by a central bank in a digital form. It is akin to paper currency in a different form. On the basis of the above text and common understanding, answer the following questions : (a) Identify and discuss the function of central bank indicated in the above 2 text. (b) State any two advantages of digital rupee. 1 12. Estimate the value of Aggregate Demand in an economy if: 3 (A) a. Autonomous Investment (I) = ₹ 100 Crore b. Marginal Propensity to Save = 0.2 c. Level of Income (Y) = ₹ 4,000 crores d. Autonomous Consumption Expenditure = ₹ 50 Crore OR 12. With the help of diagram explain the derivation of consumption curve from (B) saving curve. 13. Read the given extract and answer the questions that follow ‘During the colonial period, the occupational structure of India, i.e., distribution of working persons across different industries and sectors, showed little sign of change.’ a. Highlight the salient features of India’s pre-independence occupational structure. 2 b. Name any two states that have shown increase in the share of workforce 1 in agriculture during colonial rule? 14. 3
With reference to above picture explain how modernisation as a goal of plan
is not limited only with adoption of new technology.
Page 3 of 5 15 a. Define Gross Domestic Product. 1 b. Calculate the operating surplus from the given data 3 S.No. Items Amount (in ₹ crores) i. Compensation of Employees 300 ii. Indirect Taxes 200 iii. Consumption of Fixed capital 100 iv. Subsidies 50 v. Gross Domestic Product at Factor Cost 650 OR a. What do you mean by depreciation of fixed assets. b. With valid reason state how are following treated in estimation of domestic income of India. i. Rent received by an Indian resident from Russian Embassy in India. ii. Payment of fees to a chartered accountant by a firm. iii. Gifts given by an employer to his employees on independence day. 16 Look at the balance sheet of an imaginary banking system below and explain 4 the credit creation process of this bank with all necessary calculations
17 Based on the given extract answer the questions that follows.
In order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalised global environment, the government identifies PSEs and declare them as maharatnas, navratnas and miniratnas. They were given greater managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. Greater operational, financial and managerial autonomy has also been granted to profit-making enterprises referred to as miniratnas. The granting of status resulted in better performance of these companies. Scholars allege that instead of facilitating public enterprises in their expansion and enabling them to become global players, the government partly privatised them through disinvesment. Of late, the government has decided to retain them in the public sector and enable them to expand themselves in the global markets and raise resources by themselves from financial markets. i. Do you think the navaratna policy of the government helps in improving 2 the performance of public sector undertakings in India? How? ii. Distinguish between strategic and minority sale. 2 18 ‘Arvind Panagariya, the 16th Finance Commission chairman, stressed the 4 need for India to privatize banks, open its economy further, and implement factor market reforms to boost growth beyond 6.5-7%. He pointed out that Page 4 of 5 previous government cleanups of non-performing assets led to growth spurts and underscored the importance of private sector involvement and land and labour reforms.’ Source: https://economictimes.indiatimes.com/news/economy/finance/india-needs- to-open-economy-further-privatise-banks-finance-commission-chairman- arvind-panagariya/ With reference to the above article do you think that those public sector enterprises which are making profit should be privatised? Justify your answer with valid reasons. 19 Read the following text carefully and answer questions that follows One implicit assumption in study of national income is that the prices of goods and services do not change during the period of our study. If prices change, then there may be difficulties in comparing GDPs. If we measure the GDP of a country in two consecutive years and see that the figure for GDP of the latter year is twice that of the previous year, we may conclude that the volume of production of the country has doubled. But it is possible that only prices of all goods and services have doubled between the two years whereas the production has remained constant. Therefore, in order to compare the GDP figures (and other macroeconomic variables) of different countries or to compare the GDP figures of the same country at different points of time, we cannot rely on GDPs evaluated at current market prices. For comparison we take the help of real GDP. (i) The value of the nominal GNP of an economy was Rs 2,500 crores in a 3 particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration? 3 (ii) Write down some of the limitations of using GDP as an index of welfare of a country. 20 How an initial increase in investment affects the level of final income of the 6 economy? Show its working with a suitable numerical example. How is it related with Marginal Propensity to Consume and save? OR Describe the economic scenario when ex-post Aggregate Demand surpasses ex-post Aggregate Supply and its potential consequences on production and employment. Describe any one fiscal measure and one monetary measure to tackle the situation.
