#### 12th Standard English Medium Economics Reduced syllabus Annual Exam Model Question Paper - 2021

12th Standard

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Economics

Time : 02:30:00 Hrs
Total Marks : 90

Part-I

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

20 x 1 = 20
1. The country following Capitalism is ________________

(a)

Russia

(b)

America

(c)

India

(d)

China

2. Identify which is not an example of capitalistic economy.

(a)

The USA economy

(b)

Germany economy

(c)

Indian economy

(d)

Australia economy

3. The average income of the country is________

(a)

Personal Income

(b)

Per capita income

(c)

Inflation Rate

(d)

Disposal Income

4. _________ Income is the buying power of nominal income.

(a)

Gross Income

(b)

Real Income

(c)

Percapita Income

(d)

National Income

5. J.B. Say is a ___________

(a)

Neo Classical Economist

(b)

Classical Economist

(c)

Modern Economist

(d)

New Economist

6. Every economy in the world aims at attaining the level of _________

(a)

Full employment

(b)

Unemployment

(c)

Seasonal unemployment

(d)

Educated unemployment

7. According to Keynes the most important determinant of investment

(a)

MEC

(b)

Effective demand

(c)

Aggregate demand

(d)

Rate of interest

8. Irving Fisher’s Quantity Theory of Money was popularized in

(a)

1908

(b)

1910

(c)

1911

(d)

1914

9. A Commercial Bank is an institutions that provides services

(a)

Accepting deposits

(b)

Providing loans

(c)

Both a and b

(d)

None of the above

10. Which of the following is a modern theory of international trade?

(a)

absolute cost

(b)

comparative cost

(c)

Factor endowment theory

(d)

none of these

11. Suppose the exchange rate between Indian Currency and US Dollar is Rs.1= $65. If it changes to Rs.1 =$55, the value of which currency increased and decreased?

(a)

both currency value will increase

(b)

both currency value will decrease

(c)

Indian currency value will increase and US Dollar Value will decrease

(d)

Indian currency value will decrease and US Dollar Value will increase

12. Match the items in the List – I with items in List – II. Select the correct answer from the code given below

(a)

(b)

Customs Union

(c)

Common Market

(d)

13. Deficit Budget means

(a)

An excess of government's revenue over expenditure

(b)

An excess of government's current expenditure over its current revenue

(c)

An excess of government's total expenditure over its total revenue

(d)

None of above

14. Assertion (A): There has been enormous increase in defence expenditure in India during planning period.
Reason (R): The defence expenditure of the government was Rs. 10,874 crores in 1990-91 which increased significantly to Rs. 2,95,511crores in 2018-19.

(a)

Both A and R are true and R is the correct explanation of A.

(b)

Both A and R are true but R is not the correct explanation of A

(c)

A is true but R is false

(d)

A is false but R is true

15. Primary cause of Soil pollution is ________

(a)

Pest control measures

(b)

Land reclamation

(c)

Agricultural runoff

(d)

Chemical fertilizer

16. Assertion (A): Environmental quality is a set of properties and characteristics of the environment either generalized or local, as they impinge on human beings and other organisms.
Reason (R): It is a measure of the condition of an environment relative to and to any human need.

(a)

Both A and R are true and R is the correct explanation of A.

(b)

Both A and R are true but R is not the correct explanation of A.

(c)

A is true but R is false

(d)

A is false but R is true.

17. Economic growth measures the_______

(a)

Growth of productivity

(b)

Increase in nominal income

(c)

Increase in output

(d)

None of the above

18. Who wrote ‘Poverty and Un- British Rule in India’ that the drain of wealth from India under the British rule was the major cause of the increase in poverty in India?

(a)

Vallabhai Patel

(b)

Mahatma Gandhi

(c)

(d)

Pandit Nehru

19. If the points on the scatter diagram indicate that as one variable increases the other variable tends to decrease the value of r will be:

(a)

Perfect positive

(b)

Perfect negative

(c)

Negative

(d)

Zero

20. Given the diagram, find the correct answer.
Degrees of correlation :

(a)

all the above are correct

(b)

all the above are incorrect

(c)

I and II are correct, III and IV are incorrect

(d)

I and II are incorrect, III and IV are correct

1. Part-II

Answer any seven questions and Question number 30 is compulsory.

7x 2 = 14
21. Write down the countries that have capitalistic, economy.

22. What is the difference between NNP and NDP?

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

24. Write a note on “wage-price rigidity” Keynes.

25. Write a short note of induced investment?

26. What is Stagflation?

27. Define contractionary monetary policy.

28. Mention any two objectives of ASEAN.

29. Specify the meaning of seed ball.

30. Write a note on the demand-side of the vicious circle of poverty.

1. Part-III

Answer any seven questions and Question number 40 is compulsory.

7 x 3 = 21
31. State the importance of Macro Economics

32. What is Depreciation?

33. Explain about aggregate supply with the help of diagram.

34. What are the limitations of accelerator.

35. What is money? Explain the three functions that money performs. Which one is the primary function of money?

36. What are import quotas?

37. Explain the achievements of WTO.

38. State the meaning of e-waste.

39. List the economic and non-economic determinants of economic development.

40. Find the Standard Deviation of the following data:14,22,9,15.20,17,12.11

1. Part-IV

7x 5 = 35
1. Compare the feature among Capitalism, Secularism and Mixedism

2. Explain the importance of national income

1. Critically explain Say’s law of market

2. Explain the operation of the Accelerator

1. Explain the Secondary Functions.

2. Explain the role of Commercial Banks in economic development.

1. Explain briefly the Comparative Cost Theory.

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

2. State and explain instruments of fiscal policy.

1. What are the causes for the increase in public debt?

2. Briefly explain the relationship between GDP growth and the quality of environment.

1. Elucidate various measures of economic development.

2. Distinguish between correlation and regression.