Economics Delhi Set 1 2022-2023 Commerce (English Medium) Class 12 Question Paper Solution

‘Money is an asset which can be stored for use in future.

In the light of given statement, identify the function of money.

A measure of value

A standard of deferred payment

A store of value

A medium of Exchange

“Considering the depreciation of Indian Currency (₹) in the international market, the Reserve Bank of India (RBI) has decided to purchase Indian currency (₹) in the open market.”

This represents ______ exchange rate system.

fixed

flexible

managed floating

manipulated

Statement 1: In a two sector economy, consumption expenditure and investment expenditure are the two components of Aggregate Demand.

Statement 2: Aggregate demand curve always start from point of origin with positive slope.

In the light of 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.

'Deficit' in Balance of payment (BOP) refers to the excess of ______.

Current account payments over Current account receipts.

Capital account payments over Capital account receipts.

Autonomous payments over Autonomous receipts.

Accommodating payments over Accommodating receipt.

From the statements given in Column I and Column II, choose the correct pair. 

A - (i)

B - (ii)

C - (iii)

D - (iv)

Complete the table:

4000, 10400, 4000, 4000

4000, 10400, 4000, 4400 

2000, 6000, 6000, 4400

4000, 10400, 6000, 4000

If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.

C = 30 + 0.75Y

C = (-) 30 + 0.25Y

C = 30 + 0.25Y

C = (-) 30 + 0.25Y

If increase in National Income is equal to increase in Savings, the value of Marginal Propensity to Consume would be ______.

equal to unity

greater than one

less than one

equal to zero

Read the following statements carefully:

Statement 1: Money supply (M₁) in India does not include ‘demand deposits’ with commercial banks.

Statement 2: Money supply (M₁) refers to, assets available with the Commercial Banks during a particular period of time.

In the light of the given statements, choose the correct alternative.

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.

Suppose, the price of one UK Pound (£) has increased from ₹ 70 to ₹ 80, owing to market forces.

This means that value of Indian Currency (₹) has ______.

appreciated

depreciated

revalued

devalued

Suppose, Country X, has more inflation than Country Y. Which of the following is most likely situation to happen in such a case, assuming other factors being constant?

A surplus trade balance in Country X

A deficit trade balance for Country X

A rise in exports from Country X to Country Y

A deficit trade balance for Country Y

Assertion (A): Full employment refers to, absence of involuntary unemployment.

Reason (R): Under full employment situation, all willing and able bodied people get employment at prevailing wage rate.

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.

In an economy, the value of Marginal Propensity to Save (MPS) is 0.25, what will be the value of increase in income, if investments increased by ₹ 200 crores? 

₹ 200 crores

₹ 150 crores

₹ 1,000 crores

₹ 800 crores

Suppose only one Good ‘X' is produced in the country. Output of ‘Good X during 2018 and 2019 were 100 units and 110 units respectively. The market price of the product during the two years was ₹ 50 and  ₹ 55 per unit respectively.

Calculate the percentage change in Real Gross Domestic Product (GDP) in year 2019, using 2018 as the base year. 

Giving valid reason, state whether the following statement is true or false: 

Dividend received from investment abroad is recorded on the credit side of the capital account.

True

False

Giving valid reason, state whether the following statement is true or false:

Depreciation of the Indian Currency will lead to promotion of Indian exports.

True

False

Distinguish between Autonomous transactions and Accommodating transactions. 

If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.

As per the following news published in ‘The Hindu’ on 6^th August, 2022:

'The Monetary Policy Committee (MPC) of the Reserve Bank of India raised the Repo Rate by 50 basis points.'

Identify and explain the likely cause and consequences behind this type of action taken by the Reserve Bank of India.

Explain the role of Central Bank as government's agent and advisor.

Define Reverse Repo Rate.

Discuss briefly, how this instrument helps in controlling credit, creation by commercial banks.

How should the following be treated in estimating National Income of a Country? Give valid reasons. 

Profit earned by Foreign Banks in India.

How should the following be treated in estimating National Income of a Country? Give valid reasons.

Expenditure on upgradation of fixed asset by a firm.

Suppose in a financial year, the Gross. Domestic Product (GDP) at market price of a country was ₹ 1,100 crore. Net factor income from Abroad was ₹ 100 crore, the net indirect taxes was ₹ 150 crore and National income was ₹ 850 crore.

Calculate the value of depreciation, on the basis of above information.

“While estimating Gross Domestic Product (GDP) by expenditure method, entire focus is on expenditures incurred by the residents of the country.” Do you agree with the given statement? Give valid reason in support of your answer.

Agree

Disagree

Calculate the value of Domestic Income from the following data: 

Study the given picture carefully:

Sources of State and Local Government tax revenues for a financial year

Answer the following questions based on common knowledge and picture:

1. Categorise the given items in the picture into tax/non-tax receipts.
2. “Government has started spending more on providing free services like education and health to the poor.”
   In the light of above statement, explain how the government can use the budgetary policy in reducing ‘inequalities of income’.

During the British rule in India, Indian agricultural output witnessed stagnation due to ______.

Decline in handicrafts

Drain of Indian wealth

Land settlement

Introduction of railways

In the first phase of Green Revolution, output was restricted mainly to ______. 

Cereals and Pulses

Wheat and Rice

Cotton and Jute

Jowar and Bajra 

______ is known as the architect of Indian Planning.

Jawaharlal Nehru

P.C. Mahalanobis

Dr. Manmohan Singh

Dr. Rajendra Prasad

Statement 1: Great Proletarian Cultural Revolution was introduced in China in 1950's.

Statement 2: China's growth is mainly contributed by the manufacturing sector.

In the light of 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.

Identify the incorrect statement from the following:

China’s Economic growth rate is better than that of Pakistan.

Pakistan is behind India in HDI ranking.

One Child Policy norm was adopted in Pakistan.

In 1991, India adopted New Economic Reforms.

______ is the apex institution which plans and evaluates policies related to rural credit needs.

Cooperative Credit Societies

Regional Rural Banks

Self Help Groups

NABARD

Assertion (A): During 1980's, economic growth rate of Pakistan was more than that of India.

Reason (R): Pakistan followed the path of mixed economic structure with equal participation of the public and the private sector.

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.

Identify, which of the following are associated with the problem of human capital formation in India?

1. Brain drain
2. Low academic standards
3. Rising population
4. Changes in social outlook

(i) and (ii)

(ii) and (iii)

(i), (ii) and (iii)

(i) and (iv)

Statement 1: Special Economic Zones (SEZ's) policy has led to huge Foreign Direct Investment (FDI) flow to China.

Statement 2: China's rapid industrial growth was the result of its economic reform in 1981.

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

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.

Identify, which of the following is an incorrect function of environment?

Supplies resources

Assimilates waste

Land degradation

Provides aesthetic services

Identify, which of the following is the correct formula for calculating ‘Worker-Population Ratio’? 

`"Total Labour Force"/"Total Population"xx100`

`"Total Workers"/"Total Population"xx100`

`"Total Population"/"Total Labour Force"xx100`

`"Total Population"/"Total Workers"xx100`

Statement 1: First Five Year Plan of China commenced in the Year 1956.

Statement 2: Both India and China adopted Socialist Economy model, following USSR.

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

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.

Interpret the situation of earth as depicted in the given picture, with reference to current environmental challenges:

“In rural areas of India more members of a family are engaged on work, yet the gross income of the family is generally low.”

Identify the type of unemployment indicated in the above statement and explain the paradox associated with it. 

Explain the role of micro-credit in meeting credit requirements of the poor.

Compare and analyse the following information related to Annual Growth of Gross Domestic Product (GDP) of India and China: 

Annual Growth of Gross Domestic Product

State the meaning of 'Privatisation'.

'Agriculture sector has been adversely affected by the Economic reform process.’ Comment. 

State and explain any two main causes behind infrastructural development by British rule.

State with valid reason whether the following statement is true or false:

“Higher productivity and production are the outcome of investment in human resources.” 

True

False

State with valid reason whether the following statement is true or false:

Rising population is not the cause for quality of human capital formation. 

True

False

Define Agricultural diversification.

State the meaning of organic farming. Discuss how does it help in promoting sustainable development.

Discuss the need for promoting women’s education in India.

Explain absorptive capacity of environment with example.

Read the following text carefully and answer the given questions on the basis of the same and common understanding:

1. State and discuss any two objectives of World Trade Organisation.
2. Name any two steps taken by India to strengthen food security.