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. In an economy, investment increases by ₹100 crore. As a result, income increases by ₹250 crore. What is the value of multiplier? What does this imply? On the basis of the multiplier calculated, find out the change in income, if investment changes by ₹750 crore.
OR
If MPC is 0.9, what is the value of multiplier? How much investment is needed to increase national income by ₹5,000 crores?
2. Are the following included in the estimation of national income of a country? Give reasons for your answer.
(i) Government expenditure on street lighting.
(ii) Receipts from the sale of land
OR
Why should exports be included in GDP?
3. Explain the role of legal reserve in correcting the inflationary gap in an economy.
4. “Unemployment is related to poverty.” Comment.
OR
The following table shows the population and worker population ratio for India in 1999-2000
Can you estimate the workforce (rural and urban) for India?
5. “Sustainable development is a paradigm shift in development thinking.” Comment.
Short Answer (SA) Type Questions
6. Government of India has recently launched ‘Jan-Dhan Yojana’ aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect national income of the country.
OR
Suppose the GDP at market price of a country in a particular year ₹2,200 crore. Net factor income from abroad was ₹200 crore. The value of indirect taxes less subsides was ₹300 crore and national income was ₹1,700 crore. Calculate the aggregate value of depreciation.
7. Observe the table give below carefully and answer the question
Public Health Infrastructure in India, 1951 – 2018
| Item | 1951 | 1981 | 2000 | 2018 |
| Hospitals (Government) | 2,694 | 6,805 | 15,888 | 25,778 |
| Beds (Government) | 1,17,000 | 5,04,538 | 7,19,861 | 7,13,986 |
| Dispensaries | 6,600 | 16,745 | 23,065 | 27,951 |
| PHCs | 725 | 9,115 | 22,065 | 25,743 |
| Sub-centres | – | 84,736 | 1,37,311 | 1,58,417 |
| CHCs | – | 761 | 3,043 | 5,624 |
Sources: National commission on Macroeconomics and Health, Ministry of Health and Family Welfare, Government of India, New Delhi, 2005: National Health Profile for various years available on www.cbhidghs.nic.in
Based upon the above table, critically evaluate the progress in India’s health infrastructure.
Read the following text carefully and answer questions 8 and 9 below:
8. Highlight the importance of seller and more productive employment of the self-employed in India and suggest some measures that would help to increase their productivity.
9. “Infrastructure contributes to the economic development of a country”, Do you agree? Explain.
10. What do you understand by Aggregate Demand (AD)? Briefly explain two of its components.
Long Answer (LA) Type Questions
11. Given that national income is ₹80 crore and consumption expenditure is ₹64 crore, find out Average Propensity to Save (APS). When income rises to ₹100 crore and consumption expenditure to ₹78 crore, what will be the Average Propensity to Consume (APC) and Marginal Propensity to Consume (MPC)?
12. (i) Calculate Gross Domestic Product at Market Price (GDPMP) by using income method
| S. No | Items | ₹ (in crores) |
| (a) | Intermediate Consumption of Primary SectorSecondary SectorTertiary Sector | 1,000 800 600 |
| (b) | Value of Output of Primary SectorSecondary SectorTertiary Sector | 2,000 1,800 1,400 |
| (c) | Rent and Royalty | 20 |
| (d) | Compensation of Employee | 800 |
| (e) | Benefits of Rend Free Accommodation and Interest Free Loans to the Employees | 400 |
| (f) | Mixed Income of the People Using Family Inputs | 1,300 |
| (g) | Operating Surplus | 600 |
| (h) | Net Factor Income to Rest of the World | 40 |
| (i) | Interest | 10 |
| (j) | Consumption of Fixed Capital | 80 |
| (k) | Net Indirect taxes | 20 |
(ii) How do you distinguish between old age pensions and retirement pensions in the context of estimation of national income?
OR
(i) GNP is the estimated value of the total worth of production and services earned by the normal residents of a country. But to find out NNP, GNP deducts depreciation, why should we deduct depreciation from GNP?
(ii) Find net value added at market price.
| S.No | Items | ₹ (in lakhs) |
| (a) | Fixed Capital Good with a Life Span of 5 years | 60 |
| (b) | Raw Materials | 24 |
| (c) | Sales | 100 |
| (d) | Net Change-in-stock | (-) 8 |
| (e) | Taxes on Production | 4 |
13. (i) “Out of the three countries namely India, China and Pakistan, China has outperformed rest of neighbours in almost all areas, through its variety of reforms. Though the structural reforms of China are not free from criticism.” In the light of the statement, enumerate the failures of the structural reforms in China
(ii) “Poverty is one of the major problems that every developing country faces. In case of Pakistan, its initial phases of reforms helped in reducing poverty, though it re-emerged later. In the light of the statement, state the reasons for the re-emergence of poverty in Pakistan.