#### Public Exam Model Question Paper Part-II 2019 - 2020

12th Standard

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Economics

Time : 02:45:00 Hrs
Total Marks : 90

Part I

Choose the most suitable answer from the given four alternatives and write the option code with the corresponding answer.

20 x 1 = 20
1. Identify the flow variable

(a)

money supply

(b)

assests

(c)

income

(d)

foreign exchange reserves

2. Which of the following is not a macroeconomic goal?

(a)

Full Employment

(b)

Price Stability

(c)

Economic Security

(d)

All of the above are macro economic goals

3. Tertiary sector is also called as __________sector

(a)

Service

(b)

Income

(c)

Industrial

(d)

Production

4. Secondary sector is __________

(a)

Industry

(b)

(c)

Agriculture

(d)

Manufacture

5. Aggregate supply is equal to___________

(a)

C + I + G

(b)

C + S + G + (x-m)

(c)

C + S + T + (x-m)

(d)

C + S + T + Rf

6. Say’s law of market says:

(a)

Supply creates its own demand

(b)

Demand creates supply

(c)

Income generates demand

(d)

Savings create demand

7. K=1/MPS= ____________

(a)

$\frac{ΔP}{ΔQ}$

(b)

$\frac{C}{4}\times\frac{ΔP}{ΔQ}$

(c)

Value of multiplier

(d)

Value of accelerator

8. ___________inflation is in no way dangerous to the economy

(a)

walking

(b)

running

(c)

creeping

(d)

galloping

9. NBFI does not have.

(a)

(b)

government approval

(c)

Money market approval

(d)

Finance ministry approval

10. Cyclical disequilibrium in BOP occurs because of

(a)

(b)

The income elasticity of demand or' price elasticity of demand is different.

(c)

long-run changes in an economy

(d)

Both (a) and (b)

11. Find the missing flow of concept of H-O Theorem. Abundance of skilled labour → specialisation → ………?……..→ exchange for goods are services produced by countries with abundance of unskilled labour

(a)

import

(b)

export

(c)

devaluation

(d)

factor endowment

12. What are the BENELUX countries?

(a)

Brazil, Nigeria and Luxumburag

(b)

Belgium, Netherland and Luxumbuarg

(c)

Bay of Jamaica, Norway and Luxumbuarg

(d)

None of the above

13. Conversion of public debt means exchange of

(a)

New bonds for the old ones

(b)

Low interest bonds for higher interest bonds

(c)

Long term bonds for short term bonds

(d)

All the above

14. Finance commission is a ……………… set up under Article 280 of the Indian Constitution.

(a)

statutory body

(b)

quasi-judicial body

(c)

permanent body

(d)

international body

15. Which one of the following causes of global warming?

(a)

Earth gravftation force

(b)

Oxygen

(c)

Centripetal force

(d)

Increasing temperature

16. In economic activities of Goods and Service, what the RrP + RrC mean?

(a)

Recycles from Production and Consumption

(b)

Residual Discharges from Consumption and Production

(c)

Consumption and Production

(d)

Final Residual Discharge from Production and Consumption

17. The Chair Person of NIT I Aayog is

(a)

Prime Minister

(b)

President

(c)

Vice - President

(d)

Finance Ministed

18. Find the meaning of the following statement “If People spend larger propotion of their income and time on entertainment liquor and other illegal activities, productive activities may suffer”

(a)

Hayek

(b)

Joseph Waker

(c)

Lipsey

(d)

Thomas Piketty

19. In the regression equation $X={ \beta }_{ 0 }+{ \beta }_{ 1 }{ X }_{ , }$ the X is called:

(a)

Independent varia

(b)

Dependent variable

(c)

Continuous variable

(d)

None of the above

20. If all values of a sample are same, then its variance is

(a)

1

(b)

0

(c)

2

(d)

Cannot be determined

21. Part II

Answer any 7 questions. Question no. 30 is compulsory.

7 x 2 = 14
22. What are the major types of economic systems

23. What is the difference between NNP and NDP?

24. List out the assumptions of Say’s law.

25. Write the equation of effective demand

26. Define Investment Function.

27. What is plastic money? Give example.

28. In which year the state financial corporation was started?

29. When and where was SAARC Secretariat established?

30. State the meaning of environment.

31. Write any two characteristics of UDCs

32. Part III

Answer any 7 questions. Question no. 40 is compulsory.

7 x 3 = 21
33. Describe the different types of economic systems.

34. What is Output method? What is its major challenge?

35. Explain the following in short
(i) Seasonal unemployment
(ii) Frictional unemployment
(iii) Educated unemployment

36. Explain any three limltations of leakages of multiplier.

37. What are the Contingent Functions?

38. Compare the Classical Theory of international trade with Modern Theory of International trade.

39. How India benefited with WTO?

40. What are the causes of water pollution?

41. Classify the various countries on the basis of gross national.income (GNI) per capita?

42. Specify the objectives of econometrics.

43. Part IV

14 x 5 = 70
1. Illustrate the functioning of an economy based on its activities

2. Discuss the importance of social accounting in economic analysis

3. Narrate the equilibrium between ADF and ASF with diagram

4. Explain the operation of the Accelerator

5. Consider M = Rs. 1000. M’ = Rs. 500, V = 3, V’ = 2, T = 4000 goods and Find the value of money using Fisher’s quantity theory of

6. Elucidate the functions of Commercial Banks

7. How the Rate of Exchange is determined? Illustrate.

8. Compare and contrast fixed and flexible exchange rates.

9. Discuss the role of  WTO in India's socio economic development.

10. What are the reasons for the recent growth in public expenditure?

11. Explain the Non-Tax Revenue of a state

12. Explain the importance of sustainable development and its goals.

13. Compare and contrast economic growth and economic development.

14. What are the Steps involved in standard deviation calculation?