SAMPLE QUESTION PAPER (2021-22)
ECONOMICS
TERM II
CLASS 12
Time: 2 Hrs Max. Marks: 40
GENERAL INSTRUCTIONS
1. This is a subjective question paper containing 13 questions.
2. This paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks each.
3. 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words
4. 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words
5. 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words
6. This question paper contains Case/Source Based Questions.
Short Answer (SA) Type 1 Questions
1. How is stock different from flow? Give one example.
OR
Distinguish between consumption goods and capital goods.
2. In an economy, the equilibrium level of income is ₹12,000 crore. The ratio of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) is 3:1.
Calculate the additional investment needed to reach a new equilibrium level of income of ₹20,000 crore
OR
Answer the following parts
(i) If the value of Average Propensity to Consume (APC) is 1.5, what will be the value of Average Propensity to Save (APS)?
3. What will happen to an economy if aggregate demand falls below full employment level?
4. Compared to women, more men are found working in India. It has been observed that for every 100 urban females, only about 15 work. In rural areas, for every 100 rural women, only about 25 work. Why are women not working? Give any two reasons.
OR
“Regional inequality exists in health infrastructure in India”. Comment.
5. Explain any two measures by which the situation of excess demand can be corrected.
Short Answer (SA) Type Questions
6. Giving reasons, explain the treatment assigned to the following while estimating national income.
(i) Expenditure on adding a floor to a factory.
(ii) Payment of fees to an architect engaged by a firm.
(iii) Payment of royalty by a government firm.
OR
In a hypothetical economy, Real GDP is given as ₹200 crores and price index is given as 120. From the given data, estimate the value of nominal GDP.
7. In a simple Keynesian two-sector model, government sector is expected not to involve in the production activity. Government is expected to stay out of market and maintain law and order. However, in a general economy, government has to play its part directly or indirectly. Directly, government is involved in production activities where market mechanism fails to attain desirable target, Indirectly, government is involved in terms of collecting tax and non-tax revenues.
Explain the impact on aggregate demand, if government involves in the economy both directly and indirectly.
Read the following text carefully and answer questions 8 and 9 below:
Comparative development of India and its neighbours is an important knowledge to possess as an Indian Citizen.
As a rational citizen of a country, it is crucial to have a deep understanding of the developments in your country. In fact, it is also very important to learn about the developmental processes of your neighbouring countries.
Not only citizens but countries are also eager to understand the developmental system of their neighbours. This understanding enables comprehension of strengths and weaknesses of yours as well as the neighbouring countries. Due to the process of globalisation, it is essential for every nation to compete with developed countries. Hence, it is important to study the comparative development of India and its neighbours.
The Chinese reform process began more strongly and comprehensively during the 1980s. At this time, India was in the midstream of a rather slow growth process. Although the countries (Pakistan and India) started together, Pakistan has seen a better result in certain areas. However, India is better placed than Pakistan in the area of skilled manpower and research and development institutions.
It is common to find developmental strategies of a country as a model to others for lessons and guidance for their own development. It is particularly evident after the introduction of the reform process in different parts of the world.
In order to learn from economic performance of our neighbouring countries, it is necessary to have an understanding of the roots of their successes and failures. It is also necessary to distinguish between and contrast, the different phases of their strategies.
8. “India, China and Pakistan have many similarities in their development strategies”. Elaborate any three points.
9. Mention the areas where Pakistan have performed better than India.
10. Distinguish between inflationary gap and deflationary gap.
Long Answer (LA) Type Questions
11. Explain the following systems of Indian medicine.
(i) Ayurveda
(ii) Unani
(iii) Homeopathy
12. Calculate national income by (i) Product Method (ii) Expenditure Method
| S. No | Items | ₹ (in crores) |
| (a) | Gross Value Added at Market Price by Primary Sector | 2,400 |
| (b) | Private Final Consumption Expenditure | 6,000 |
| (c) | Consumption of Fixed Capital | 1,200 |
| (d) | Net Indirect Taxes | 960 |
| (e) | Gross Value Added at Market Price at Secondary Sector | 1,600 |
| (f) | Net Domestic Fixed Capital Formation | 1,760 |
| (g) | Change in Stock | (-) 160 |
| (h) | Gross Value Added at Market Price by Tertiary Sector | 5,600 |
| (i) | Net Imports | 400 |
| (j) | Government Final Consumption Expenditure | 1,200 |
| (k) | Net Factor Income from Abroad | 160 |
OR
Calculate (i) Gross domestic product at market price and (ii) Factor income from abroad from the following data
| S. No | Items | ₹ (in crores) |
| (a) | Gross National Product at Factor Cost | 3,075 |
| (b) | Net Exports | (-) 25 |
| (c) | Compensation of Employees | 1,500 |
| (d) | Rent | 400 |
| (e) | Interest | 450 |
| (f) | Profit | 650 |
| (g) | Net Indirect Taxes | 150 |
| (h) | Net Domestic Capital Formation | 400 |
| (i) | Gross Fixed Capital Formation | 425 |
| (j) | Change in Stock | 25 |
| (k) | Dividend | 150 |
| (l) | Factor Income to Abroad | 40 |
13. (i) “Unemployment is one of the major problems that most of the developing countries face owing to multiple factors. However, unemployment needs to be involuntary in nature and not voluntary.” Based upon the above information, discuss the causes of unemployment in India.
(ii) “Development and growth are two interrelated concepts. Development surely depend upon growth. But any country’s development is not considered as good unless it is sustained over different generation.” Based upon this information, discuss any three strategies of sustainable development.