Economics Board Sample Paper 2023-2024 Commerce (English Medium) Class 12 Question Paper Solution

Read the following statements carefully:

Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.

Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).

In light of the given statements, choose the correct alternative from the following:

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statements 1 and 2 are false.

For a closed economy (with no foreign trade), which one of the following is correct?

GDP = GNP

GDP > GNP

GDP < GNP

GDP + GNP = 0

The value of ______ can be greater than one.

Marginal Propensity to Consume

Average Propensity to Consume

Marginal Propensity to Save

Average Propensity to Save

As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022:

"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the second quarter (2022-23)"

The above transaction will be recorded in the _______ account on ______ side of Balance of payments account of India. 

current, credit

current, debit

capital, credit

capital, debit

“The value of all goods and services can be expressed in monetary units.”

On the basis of the given statement, identify the function performed by money:

Medium of exchange

Store of Value

Unit of account

Means of standard of deferred payments

Find the missing figures and choose the correct alternative:

640, 1000, 4000, 5000

960, 5000, 4000, 1000

640, 4000, 1000, 5000

640, 5000, 4000, 1000

Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.

consumption, saving

consumption, investment

investment, saving

aggregate supply, consumption

Identify the correct reason(s) that may affect the demand for foreign exchange in an economy.

1. Imports of visibles
2. Exports of invisibles
3. Remittances by residents working abroad
4. Purchase of assets abroad

I and II

II and III

III and IV

I and IV

Suppose for a given economy,

S = -60 + 0.1Y

I = ₹ 4,000 crore

(Where S = Saving Function, Y = National Income and I = Investment Expenditure)

Equilibrium level of Income would be ₹ ______ crore.

4,000

40,000

40,600

60,400

Read the following chart carefully and choose the correct alternative:

Interest received on loans

Multilateral Loans

Portfolio Investment

Government Aid

‘Current account deficit in an economy must be financed by a corresponding capital account surplus’.

Do you agree with the given statement? Give valid reason(s) in support of your answer.

Agree

Disagree

On the basis of the given data, estimate the value of Domestic Income:

State the meanings of the following:

Externalities

State the meanings of the following:

Operating Surplus

State the meanings of the following:

Consumption Goods

For a hypothetical economy, the government incurs an investment expenditure of ₹ 1,000 crore. If the value of Marginal Propensity to Save (MPS) falls from 0.25 to 0.10. Calculate the value of increase in income due to change in the value of Marginal Propensity to Save (MPS).

"In an economy ex-ante Aggregate Demand is more than ex-ante Aggregate Supply."
Explain its impact on the level of output, income and employment.

“With an objective to reduce inflation, Reserve Bank of India may promote the commercial banks to park their surplus funds with it.”

Discuss the rationale behind the step taken by the Reserve Bank of India.

Elaborate the ‘Banker’s Bank and Supervisor’ function performed by the Reserve Bank of India.

On the basis of the given information, calculate the value of:

1. Fiscal deficit
2. Primary deficit

State any two features of public goods.

Explain the economic stability as objectives of government budget.

‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically backward section of the society’.

Identify and discuss the nature of the government expenditure indicated in the given statement.

Giving valid reasons, explain how the following would be treated while estimating domestic income?

Payment made by American tourist for goods purchased in India.

Giving valid reasons, explain how the following would be treated while estimating domestic income?

Tomatoes grown by Ms. Puja in her kitchen garden.

"Machine purchased by a firm is always a capital good."

Do you agree with the given statement? Give valid reasons for your answer.

Agree

Disagree

Identify the correct combination of the ‘Goals of Indian Five Year Plans’:

Growth, Equality, Modernisation, Self-Reliance

Development, Equality, Modernisation, Sustainability

Good Health, Education, Modernisation, Sustainability

Growth, Equity, Modernisation, Self-Reliance

‘China has performed exceedingly well in various health and economic indicators’.

Identify which of the following is not a health indicator?

Infant Mortality Rate (per 1000 live births)

Life Expectancy at Birth (years)

Percentage of people below poverty line (National)

Maternal Mortality Rate (per 1 lakh births)

The shackles of agriculture during the colonial rule were permanently broken by the Green Revolution that resulted from the application of ______.

1. High Yielding Varieties (HYV)
2. Mechanization of Agriculture
3. Chemical Fertilizers and Pesticides
4. Organic Fertilizers and Pesticides

I, II, IV

I, II, III

II, III, IV

I, III, IV

Study the following picture and answer the given question:

Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of activities may be envisaged under ______ as diversification activity.

Animal husbandry

Fisheries

Horticulture

Poultry

Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, the rupee was devalued against foreign currencies.

Reason (R): Devaluation of currency was eminent, to replenish the deteriorated foreign exchange reserves.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Under ______ in China, farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices.

Commune System

Great Leap Forward

Dual Pricing

Great Proletarian Cultural Revolution

Micro credit programmes play a vital role in ensuring an overall development of the rural economy as they ______.

1. provide financial support
2. lead to women empowerment
3. enhance the reach of formal credit system

(i) and (ii)

(ii) and (iii)

(i) and (iii)

(i), (ii) and (iii)

______ may be defined as the measure of the extent of demographic participation in social and political decision-making.

Liberty Indicator

Human development index

Infant mortality rate

None of the above

Economic indicator

Health indicator

Demographic indicator

Read the following statements carefully:

Statement 1: The nature of unemployment problem in India is uni-faceted.

Statement 2: Worker-Population ratio is an indicator used for analysing the employment situation in a country.

In light of the given statements, choose the correct alternative from the following:

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statements 1 and 2 are false.

From the set of the events given in column I and corresponding facts given in Column II, choose the correct pair of statements:

A - I

B - II

C - III

D - IV

“During the colonial period, a number of socio-economic indicators were in a dilapidated state.”

List any three such indicators that led to the worsening of India’s demographic profile.

“The pre-independent India’s occupational structure experienced growing regional variation.”

Justify the above statement with valid explanation.

“Ravya was initially working as an office clerk in a firm. In the pursuit to attain, a higher position and income, she attended a few on-the-job training sessions. These sessions contributed positively to her skills and expertise.”

Explain the impact of Ravya’s decision on human capital formation.

“In the late 1970s, China introduced the One-child policy that led to arrest in the population coupled with skewed sex ratio.”

Justify the given statement with valid arguments in support of your answer.

State and elaborate whether the following statement is true or false, with valid arguments:

Agricultural marketing is a process that ensures the transportation of various agricultural commodities only.

True

False

State and elaborate whether the following statement is true or false, with valid arguments:

Jan-Dhan Yojana has been a crucial step for financial resource mobilization in the Indian economy.

True

False

“Since independence, the government has been playing an important role in generating employment directly or indirectly.” Discuss.

Identify the situation depicted in the given image. Suggest the impact of the indicated situation, on the Indian economy.

“Green revolution transformed India from a subsistent food grain economy to a food surplus economy.”

Justify the statement, giving reasons in support of your answer.

“In order to protect domestic industries, India followed the regime of restrictions on imports.”

Briefly outline and discuss such steps taken by the government to promote import substitution policy.

“In India, after 1947 land reforms were introduced on a large scale.”

In the light of the given statement, discuss any one such land reform.

“In the post-reform period, the Government of India decided to retain profit-making Public Sector Undertakings (PSUs). It provided a special status to PSUs to enable them to expand in the global market.”

Do you agree with the given statement? Give valid reasons in support of your answer.

Agree

Disagree

Read the following text carefully:

On the basis of the given text and common understanding, answer the following questions:

1. Define sustainable development.
2. Briefly elaborate, any two reasons behind the objective of Green Growth being set up by the Indian Government.