Economics Sample Paper Class 12 CBSE Board Exam 2020


The sample paper is one of the best resources for the student to prepare for the exam. These help the student to get a prior experience before they attempt for the final exam also, they will know if they are prepared for the exam completely or not. They can test their knowledge for all these subjects and get confident about the answer. if any discrepancies occur in the written answer, they can focus more on such a question, so that there are no mistakes happening in the final paper. they can also mark themselves for correct and wrong answers.

Structure of CBSE Class 12th Economics Model Paper 2020
Economics the paper will be of three hours and a total of 80 marks. the paper will consist of 34 questions All the questions are compulsory.

i) 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.
ii) Question number 11 - 12 and 28 - 29 are short-answer questions caring 3 marks each. Answers to them should not normally exceed 60-80 words each.
iii) Question number 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
iv) Question number 16 - 17 and 33 - 34 are a long answer questions carrying 6 marks each. Answers to them should not normally exceed 100-150 words each
v) Should be brief and to the point and the above word limit has adhered to as far as possible.

SECTION - A (Macro Economics)

Q1. Value of Money Multiplier ……………(increases/decreases/remains unchanged) with an increase in Cash Reserve Ratio.
                                                (Fill up the blank with correct alternative)

Q2. Define an intermediate good.



Q3. Average The propensity to Consume can never be …………………...
                                                                     (choose the correct alternative)
                  a) positive                      b) zero
                    c) more than one            d) less than one

Q4. Name any two quantitative tools to control credit creation in an economy
                                            Or
        What are demand deposits?

Q5. The monetary policy generally targets to ensure……….……
                                                                  (Choose the correct alternative)
          a) price stability in the economy
    b) employment generation in the country.
    c) stable foreign relations.
         d) greater tax collections for the government.

Q6. In an economy, break-even point and equilibrium point may lie at the same level of income, if ex-ante investments are ……………
                                                   (Fill up the blank with the correct answer)

Q7. State whether the given statement is true or false:
‘Managed Floating Exchange Rate is decided by market forces but remains within a specific range as decided by central bank’.

Q8. The formula to calculate Primary deficit is …………..…
                                                    (Fill up the blank with the correct answer)

Q9. From the set of statements given in Column I and Column II, choose the correct pair of statements:


Column I            
Column II

a) Export of software to France
(i) Debit side of the current account

b) Import of Machinery from China                  
(ii)  Capital Account of Balance of  Payments

c) Remittances to relative staying abroad
(iii) Debit side of Current Account of Balance of Payments

d) Investment by Apple phones firm in India
(iv) Credit side of Current Account of Balance of Payments

                                                                           
Q10. Government expenditure on Mid-Day Meal scheme running in government (state run) schools are a type of ……………….……….. expenditure in the government budget.                  (Fill up the blank with correct answer)

Q11. India's GDP is expected to expand 7.5% in 2019-20: World Bank”                        –The Economic Times.
Does the given statement mean that the welfare of people of India increases at the same rate? Comment with reason.

Q.12 Calculate the value of Marginal Propensity to Consume (MPC), if in an economy, autonomous consumption is `500 cores, ex-ante investments are `4000crores and the equilibrium level of income of the economy is `18,000 crores.
Or
Suppose in a hypothetical economy, the savings increase by `20 crores when national income increases by `100 crores. Compute the additional investments needed to attain an increase in national income by `6,000 crores?

Q13. Discuss any one of the following functions of a central bank:
a) As the government’s bank        b) Open market operations.

Q14. “Foreign Institutional Investors (FIIs) remained net seller in the Indian capital markets over the last few weeks.    - The Economic Times.
State and discuss the likely effects of the given statement on the foreign exchange rate with reference to the Indian Economy.
Or
‘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.

Q15. Elaborate on the objective of ‘reallocation of resources in the government budget

Q16. a) ‘Real Gross Domestic Product is a better indicator of economic growth than the Nominal Gross Domestic Product.
Do you agree with the given statement? Support your answer with a suitable numerical example.
        b) Calculate Depreciation on Capital Asset’ from the following data

S.no
Particulars
Amount (in `crores)
i.
The capital value of the asset
1,000
ii.
Estimated life of the asset
20 years
iii.
Scrap Value
Nil
Or
a) ‘Circular flow of income in a two-sector economy is based on the axiom that one’s expenditure is others income’.
Do you agree with the given statement? Support your answer with valid reasons.

b) Calculate compensation of employees from the following data:
                    
S.no
Particulars
Amount (in ` crores)
i.
Profit after tax
20
ii.
Interest
45
iii.
Gross Domestic Product at Market Price
200
iv
Goods and Service Tax
10
v
Consumption of Fixed Capital
50
vi
Rent
25
vii
Corporate Tax
5

Q17. ‘An economy is operating at under-employment level of income. What is meant by the given statement? Discuss one fiscal measure and one monetary measure to tackle the situation.

SECTION-B (Indian Economic Development)

Q18. Name any two taxes which were subsumed in Goods and Services Tax (GST).

Q19. State whether the following statement is true or false:
‘The latest demonetization of currency was undertaken by the Government of India on November 8, 2016’.

Q20. Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I:

Column-I
Column-II
A. Land Ceiling
i. Increase in production of food grain using high yielding variety of seeds.
B. Land reforms
ii. A portion of agricultural products sold in the market
C. Green Revolution
iii. Fixing the maximum limit of land holding for an individual.
D. Marketed Surplus
iv. Change in the ownership of land (land to tillers)
         
Q21. Agriculture marketing does not comprise of ……..…
                                                                   (Choose the correct alternative)
          a)       Transportation of the product to the market place for sale.
 b)       Grading of the products according to the quality.
 c)        Storage of the produce for sale in the future.
          d)       Credit has taken to meet expenditure on agriculture.

Q22. Under …………………type of unemployment, marginal product gained by employing one additional unit of labor is zero.
                                                 (Fill up the blank with correct answer) Or
………………………… an indicator which is used for analyzing the employment situation of a country.
(Fill up the blank with the correct answer)
Q23. In 1955, Karve committee was constituted for aiming the…..……………
                                                 (Fill up the blank with the correct answer)

Q24. Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I
                          
Column-I
Column-II
A. Study Group formed by Planning Commission for Poverty
i. 2005
B. ‘Task Force on Projections of the Minimum Needs and Effective Consumption Demand’
ii. 1962
C. Mahatma Gandhi National Rural Employment Guarantee Act
iii. 2014
D. Jan Dhan Yojana
iv. 1979

     Choose the correct alternative:
              a) ii , iii , iv , i
          b) iii , ii , i, iv
          c) i , ii , iii , iv
          d) ii , iv , i, iii

Q25. Solar      energy     can           be     converted  into   electricity  with          the     help   of ……….……………………. (Photovoltaic cell/Lithium cells).
                                                (Fill up the blank with correct alternative)

Q26. Arrange the following events of China in chronological order and choose the correct alternative:
        i.  Great Proletarian Cultural Revolution 
        ii. Great Leap Forward campaign
        iii. Introduction of Economic Reforms
        iv. First five-year plan

Choose the correct alternative:
  a) ii, iv, iii, i
            b) iv, ii, i, iii
            c) ii, iv, i, iii
            d) iv, i, ii, iii

Q27. Introduction of Economic Reform in Pakistan took place in……………                                                                         (Choose the correct alternative)
          a) 1978       b) 1980       c)1988                  d) 1991

Q28. “Recently Indians have drifted away from the traditional knowledge and practices and caused large scale damage to the environment.
Explain how adopting traditional practices can be helpful in achieving the objective of sustainable development?
Or
‘Power sector in India has major issues with its installed capacity. Discuss the given statement

Q29. ‘Education Commission 1964-66 had recommended that at least 6 percent of GDP must be spent on education’. How far India has been able to achieve the said goal?

Q30. ‘The opening up of the Indian economy has led to a rapid increase in Foreign Direct Investments and Foreign Exchange Reserves of the country’. Defend or refute the given statement.

Q31. Define the following terms
          a) Disinvestment   b) Import Substitution
OR
       Define the following terms
          a) Outsourcing       b) Quota

Q32. Answer the following questions on the basis of the following data:
      a) Comment upon the population growth rates among       
          the three countries.
     b) Which country has most skewed in sex ratio?
Country
Estimated Population (in million)
Annual Growth of Population (in%)
Sex Ratio
India
1311
1.2
929
China
1371
0.5
941
Pakistan
188
2.1
947
Source: World Development Indicators, 2015, www.worldbank.org

Q33. “Rural Economic development is essential for Indian Economic development”. Do you agree with the given statement? Support your answer with valid reasons.

Q.34 In spite of the increase in public health expenditure Indian Health System is an ailing the system in itself’. Defend the statement citing any three major problems of Health the sector in India.
Or
Study the following chart showing the Growth of Employment and Gross Domestic Product and analyze the trend of the two variables from 1990-2012.



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