Class 12 Economics Sample Paper

Sample Paper Class 12

We have provided Class 12 Economics Sample Paper as per the latest CBSE examination pattern for the current academic year. The following CBSE Sample Papers for Class 12 Economics has been prepared based on the guess papers issued recently. Students will be able to practice these papers and get good marks in upcoming Economics exams for Class 12.

CBSE Sample Papers for Class 12 Economics

Term 1 Sample Papers
Class 12 Economics Sample Paper Term 1 With Solutions Set A
Class 12 Economics Sample Paper Term 1 With Solutions Set B
Term 2 Sample Papers
Class 12 Economics Sample Paper Term 2 With Solutions Set A
Class 12 Economics Sample Paper Term 2 With Solutions Set B
Class 12 Economics Sample Paper Term 2 With Solutions Set C
Class 12 Economics Sample Paper Term 2 With Solutions Set D

Class 12 Economics Sample Paper Term 1 With Solutions Set A

Question. The deliberate lowering of the value of the domestic currency by the government is known as ______.
a) Revaluation
b) Devaluation
c) Depreciation
d) Appreciation

Answer

B

Question. Who is the principal supplier of money?
a) Grameen Bank
b) Payment bank
c) Reserve bank of India
d) Finance ministry

Answer

C

Question. Which of the following is not the function of RBI?
a) Lender of last resort
b) Custodian of foreign exchange
c) Credit multiplier
d) Banker to the government

Answer

C

Question. If Rs 90 is required to buy $1, instead of Rs.60 earlier, what does this mean?
a) Domestic currency has appreciated
b) Domestic currency has depreciated
c) Both b and d
d) Rupee value of import bill will increase

Answer

C

Question. The Government can achieve its budget objective of ‘Balanced Regional Growth’ by____________.
a) managing the General Price Level in the economy to the desired level.
b) increasing the Gross Domestic Products (GDP) of the economy.
c) bringing the production of goods and services under its direct and absolute control.
d) Establishing SEZ (Special Economic Zones) in the backward regions through liberal taxlaws.

Answer

D

Question. Balance of payments is in disequilibrium when:
a) Current account balance + capital account balance is not equal to zero
b) Current account balance + capital account balance is some negative number
c) Current account balance + capital account balance is some positive number
d) All of these

Answer

D

Question. Which of the following is the rate at which the RBI offers short period loans to commercial banks by buying the government securities in the open market?
a) Reverse Repo Rate
b) Repo rate
c) Open market operations
d) Bank rate

Answer

B

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- In order to protect domestic industries, India was following a regime of quantitative restrictions on imports.

Statement 2- These policies reduced efficiency and competitiveness which led to slow growth of the manufacturing sector
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

Answer

A

Question. Which of the following tools was used to measure the poverty level of a country?
a) Sen Index
b) Poverty Gap Index
c) Squared Poverty Gap
d) All of the above

Answer

D

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- The Tapas Majumdar Committee was appointed by government of India in 1997.
Statement 2- It aims to bring all Indian children in the age group of 6-14 years under the purview of school education.
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

Answer

C

Question. Assertion(A): forward market for foreign exchange is that market which handles such transactions that are meant for future delivery.
Reason(R): It allows ‘Hedging’ effect.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

Answer

A

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- A direct tax is the one the final burden of which is borne by the person on whom it is imposed.
Statement 2- GST is a typical example of the direct tax
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

Answer

C

Question. Surplus in Balance of Payment occurs when:
a) Receipts = payments
b) Receipts > payments
c) Receipts < payments
d) Both a and c

Answer

B

Question. In k=1/CRR, what does k refers to?
a) Investment multiplier
b) Credit multiplier
c) Statutory liquid ratio
d) Interest on deposits

Answer

B

Question. Which of the following are the goals of five-year plans in India?
1. growth
2. equity
3. privatization
4. self-reliance
5. globalization
a) Only 1 and 2
b) Only 2 and 4
c) Only 1,2 and 5
d) Only 1,2 and 4

Answer

D

Question. Which year is described as the ‘Year of Great Divide’?
a) 1901
b) 1911
c) 1921
d) 1929

Answer

C

Question. What is the drawback of Barter system of exchange?
a) Lack of double coincidence of wants
b) Lack of a common unit of value
c) Difficulty of contractual payments
d) All of the above

Answer

D

Question. Which of the following is an example of Direct tax?
a) VAT
b) Excise duty
c) GST
d) Wealth Tax

Answer

D

Question. Who proposed the idea – ‘the real progress of India didn’t mean simply the growth and expansion of industrial urban centers but mainly the development of the villages’?
a) J. Nehru
b) Mahatma Gandhi
c) Kumarappa
d) Mahalanobis

Answer

B

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Import substitution was commonly called as ‘inward looking trade strategy’.
Statement 2- This policy aimed at replacing or substituting imports with domestic production.
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

Answer

A

Question. Whose national income estimation during the colonial period was considered very significant?
a) Dadabhai Naoroji
b) William Digby
c) Findlay Shirras
d) V.K.R.V. Rao

Answer

D

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Around 1990, India had faced Balance of Payment crisis.
Statement 2- India approached the International Bank for Reconstruction and Development (IBRD) and International Monetary Fund (IMF).

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

Answer

A

Question. What were the characteristics of money?
a) Medium of exchange
b) Store of value
c) Standard of deferred payments
d) All of the above

Answer

D

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Fiscal deficit is the excess of total expenditure over total receipts (other than borrowings)
Statement 2- Fiscal deficit is the estimation of total borrowings by 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

Answer

A

Question.

a) A-1, B-2, C-3
b) A-3, B-1, C-2
c) A-2, B-3, C-1
d) A-2, B-1, C-3

Answer

C

Question. Assertion(A): The green revolution was a harbinger of major changes in the credit system.
Reason(R): It led to Homogenization of the portfolio of rural credit towards production-oriented lending.
a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
c) Assertion(A) is true but Reason(R) is false.
d) Assertion(A) is false but Reason(R) is true

Answer

A

Question. Assertion(A): There was a widening gap between the growth of GDP and employment.
Reason(R): In Indian Economy, there is large hike in employment without producing more goods and services.
a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
c) Assertion(A) is true but Reason(R) is false.
d) Assertion(A) is false but Reason(R) is true

Answer

C

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Deutsche Bank published its report- “India and the knowledge economy- Leveraging strengths and opportunities”.
Statement 2- The report states that if India uses its knowledge as much as Ireland does, then the per capita income will increase from US $1000 in 2002 to US $3000 in 2020.
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

Answer

C

Question. What was the measure taken to increase the competitive position of Indian goods in the international markets?
a) Abolishment of import duties
b) High tariffs on imports
c) Removal of export duties
d) All of the above

Answer

C

Question. Government taxation and expenditure policy is known as
a) Trade policy
b) Monetary policy
c) Fiscal policy
d) Taxation policy

Answer

C

Based On The Following Table, Answer The Following Questions.

Figure showing Educational Attainments in India, 1990-2015 (%),

Question. What is the % increase in Adult Literacy Rate of females from 1990 to 2015?
a) 7.5%
b) 25.1%
c) 22.1%
d) 45.4%

Answer

B

Question. What is the primary completion rate of females in 2000?
a) 99
b) 85
c) 69
d) 68.4

Answer

C

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Dadabhai Naoroji proposed the idea of ‘Jail cost of living’.
Statement 2- He assumed half of the population consisted of children and rest adults and
arrived at the weighted average of consumption.
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

Answer

C

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

a) A-1
b) B-2
c) C-3
d) D-4

Answer

B

Question. Assertion(A): Credit creation is inversely related to the Legal Reserve Ratio.
Reason(R): LRR is fixed by the market forces of demand and supply.
(a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
(b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
(c) Assertion(A) is true but Reason(R) is false.
(d) Assertion(A) is false but Reason(R) is true

Answer

C

Question. Indirect tax is a tax whose
a) The liability to pay and incidence do lie on the same person
b) The liability to pay lies on one and incidence lies on the other person
c) The liability to pay and incidence do lie on the government
d) The liability to pay and incidence do not lie on the different person

Answer

B

Question.

What refers to the point where the consumption(C) and Income(Y) is equal?
a) Total consumption point
b) Break-even point
c) Convergence point
d) High Savings point

Answer

B

Question. Statement 1- Before 1901, india was in the first stage of demographic transition.
Statement 2- Neither the total population of India nor the rate of population growth at this
stage was very high at the second stage of transition.
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

Answer

D

Question. Assertion(A): The government should increase allocation for higher education and also improve the standard of higher education.
Reason(R): As per NSSO data, in 2011-12, nearly 30% of young rural female graduates were unemployed.
(a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
(b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
(c) Assertion(A) is true but Reason(R) is false.
(d) Assertion(A) is false but Reason(R) is true

Answer

A

Question. Statement 1- In 1950, the planning commission was set up in India.
Statement 2- the Prime Minister was its chairperson.
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

Answer

A

Question. Assertion(A): CRR (Cash Reserve Ratio) is also called as LRR (Legal Reserve Ratio).
Reason(R): CRR is determined not by the commercial banks themselves but by the RBI.
(a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
(b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
(c) Assertion(A) is true but Reason(R) is false.
(d) Assertion(A) is false but Reason(R) is true

Answer

A

Question. Find Primary deficit from the following data.

a) 8,800
b) 10,000
c) 13,200
d) 3,200

Answer

B

Question. Which of the following is correct regarding privatization?
a) Withdrawal of government from ownership and management of public sector companies.
b) By outright purchase of private companies by the government.
c) Both a and b
d) Neither a nor b

Answer

A

Question. Consider the statements regarding Education commission and choose the correct one.
a) Education commission was formulated between 1964-1966.
b) It recommended at least 5% of GDP be spent on education.
c) Both a and b
d) Neither a nor b

Answer

C

Question. Assertion(A): Milk production in the country has increased by more than 8 times between 1951-2014.
Reason(R): This can be attributed mainly to the successful implementation of ‘Blue revolution’
(a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
(b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
(c) Assertion(A) is true but Reason(R) is false.
(d) Assertion(A) is false but Reason(R) is true

Answer

C

Question. Which organization estimates poverty based on consumption expenditure?
a) Census of India
b) Indian Statistical Organization
c) Planning Commission
d) National Sample Survey Organization

Answer

D

Question. Assertion(A): The firms spend on giving on-the-job-training to their workers.
Reason(R): The return of such expenditure in the form of enhanced labor productivity is more than the cost of it.
(a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
(b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
(c) Assertion(A) is true but Reason(R) is false.
(d) Assertion(A) is false but Reason(R) is true

Answer

A

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

a) A-i
b) B-ii
c) C-iii
d) D-iv

Answer

C

Answer is to be given on the basic of following data.

Question. What defines the revenue deficit?
a) Revenue receipts – revenue expenditure
b) Revenue expenditure – interest payments
c) Revenue expenditure – Revenue receipts
d) Borrowing – Interest payments

Answer

C

Question. Calculate the primary deficit based on the information given above.
a) 5,000
b) 10,000
c) 15,000
d) 20,000

Answer

B

Question. Calculate the revenue deficit based on the information given above.
a) 55,000
b) 20,000
c) 50,000
d) 15,000

Answer

B

Question. What is the interest payment based on the information given above?
a) 5,000
b) 10,000
c) 15,000
d) 20,000

Answer

A

Question. Calculate the fiscal deficit based on the information given above.
a) 5,000
b) 15,000
c) 20,000
d) 70,000

Answer

B

Question. Consider the following statements regarding fiscal deficit and choose the correct options.
a) It is the excess of total expenditure over total receipts.
b) It is equal to the borrowings
c) Both a and b
d) Neither a nor b

Answer

B

Answer is to be given on the basic of following data.

India’s economy under the British Colonial rule remained fundamentally agrarian. About 85% of the country’s population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. However, despite being the occupation of such a large population, the agricultural sector continued to experience stagnation and deterioration. This stagnation was mainly due to the various systems of land settlement, particularly the zamindari system. Under this system, the profit accruing out of the agricultural sector went to the zamindars instead of the cultivators who did nothing to improve the condition of agriculture. To a large extent, the terms of the revenue settlement were also responsible for the zamindars adopting this attitude. Other factors responsible for the low levels of agricultural productivity were low levels of technology, lack of irrigation facilities and negligible use of fertilizers.
Despite some progress made in irrigation, India’s agriculture was starved of investment in terracing, flood control, drainage and desalinization of soil.

Question. In which presidency, the zamindari system was successfully implemented by colonia government?
a) Bombay
b) Bengal
c) Madras
d) All of the above

Answer

B

Question. Assertion(A): The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.
Reason(R): Dates for depositing specified sums of revenue were fixed, failing which the zamindars were to lose their rights.
a) Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion(A).
c) Assertion(A) is true but Reason(R) is false.
d) Assertion(A) is false but Reason(R) is true

Answer

A

Question. The main reason for stagnation in agriculture was:
a) Commercialization of agriculture.
b) decline of handicraft Industries.
c) discriminatory trade policies.
d) land settlement system.

Answer

D

Question. Choose the factors responsible for the low levels of agricultural productivity.
a) Low levels of technology
b) Lack of irrigation facilities
c) Negligible use of fertilizers
d) All of the above

Answer

D

Question. What was the reason for the higher yield of cash crops in certain areas of the country?
a) This could help farmers in improving their economic condition.
b) Commercialization of agriculture
c) More investment in irrigation development
d) All of the above

Answer

B

Question. How much percentage of Indian population derived livelihood from agriculture?
a) 60%
b) 70%
c) 76%
d) 85%

Answer

D

Class 12 Economics sample papers