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12th Standard English Medium Economics Reduced Syllabus Annual Exam Model Question Paper with Answer key - 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. Indicate the contribution of J M Keynes to economics

    (a)

    Wealth of Nations

    (b)

    General Theory

    (c)

    Capital

    (d)

    Public Finance

  2. How many models of circular flow of economy are there?

    (a)

    One

    (b)

    Three

    (c)

    Five

    (d)

    Two

  3. Which is a flow concept ?

    (a)

    Number of shirts

    (b)

    Total wealth

    (c)

    Monthly income

    (d)

    Money supply

  4. According to the year 2001, Indian per capita income is _________ dollar.

    (a)

    520

    (b)

    460

    (c)

    240

    (d)

    900

  5. In disguised unemployment, the marginal productivity of labour is _________

    (a)

    Zero

    (b)

    One

    (c)

    Two

    (d)

    Positive

  6. A situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed_________?

    (a)

    Less than full employment

    (b)

    Full employment

    (c)

    underemployment

    (d)

    structural employment

  7. "The consumption expenditure depends not only on his current income but also past income and standard of living" Who said this?

    (a)

    J.M.Keynes

    (b)

    R.F.Khan

    (c)

    J.R Hicks

    (d)

    Duesenberry

  8. ___________inflation occurs when general prices of commodities increases due to increase in production costs such as wages and raw materials.

    (a)

    Cost-push

    (b)

    demand pull

    (c)

    running

    (d)

    galloping

  9. A Bank is a

    (a)

    Financial institution

    (b)

    Corporate

    (c)

    An Industry

    (d)

    Service institutions

  10. Who among the following enunciated the concept of single factoral terms of trade?

    (a)

    Jacob Viner

    (b)

    G.S.Donens

    (c)

    Taussig

    (d)

    J.S.Mill

  11. According to the classical theory of international trade:

    (a)

    Only countries with low wages will export

    (b)

    Only countries with high wages will import

    (c)

    Countries with high wages will have higher prices

    (d)

    All the above are false

  12. Pick the year of establishment of World Trade Organisation. Pick the year of establishment of World Trade Organisation

    (a)

    1945

    (b)

    2001

    (c)

    1995

    (d)

    1996

  13. The word budget has been derived from the French word "bougette" which means

    (a)

    A small bag

    (b)

    An empty box

    (c)

    A box with papers

    (d)

    None of the above

  14. ___________ occupies an important place in the study of public finance.

    (a)

    Public debt

    (b)

    Public expenditure

    (c)

    Public revenue

    (d)

    Public policy

  15. The process of nutrient enrichment is termed as

    (a)

    Eutrophication

    (b)

    Limiting nutrients

    (c)

    Enrichment

    (d)

    Schistosomiasis

  16. ______________ occur outside of the market i.e. they affect people not directly involved in the production and consumption of a good or service

    (a)

    Fee good

    (b)

    spill-over effects

    (c)

    Public good

    (d)

    private good

  17. Which of the following country adopts indicative planning?

    (a)

    France

    (b)

    Germany

    (c)

    Italy

    (d)

    Russia

  18. The vicious circle of poverty was introduced by______

    (a)

    Adam smith

    (b)

    Nurkse

    (c)

    Dalton

    (d)

    Robbins

  19. Econometrics is the integration of

    (a)

    Economics and Statistics

    (b)

    Economics and Mathematics

    (c)

    Economics, Mathematics and Statistics

    (d)

    None of the above

  20. Which of the statements do not hold true?

    (a)

    Both regression coefficients cannot be greater than 1

    (b)

    Regression coefficients are unaffected by origin shift and scale shift

    (c)

    Both correlation and regression coefficients are of same sign

    (d)

    Two regression lines coincide if r=±1

    1. Part-II

      Answer any seven questions and Question number 30 is compulsory.

    7 x 2 = 14
  21. Mention some of stages of business cycle

  22. Trace the relationship between GNP and NNP

  23. Give short note on frictional unemployment

  24. What are the three motives of liquidity preference?

  25. Explain how the following two equations can both be true: Multiplierk = 1/MPS Multiplier k = 1/1-MPC.

  26. What is Stagflation?

  27. Write a short on - Traveler’s Cheque.

  28. When and where was SAARC Secretariat established?

  29. State the meaning of environment.

  30. Write a brief note on “Traditional Approach” about economic development

    1. Part-III

      Answer any seven questions and Question number 40 is compulsory.

    7 x 3 = 21
  31. Indicate the demerits of socialism

  32. How the gross value of the farm output is obtained In India?

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

  34. Fill in the table below assuming the consumption function has the following form: C = 500 + .9Y.

    Income Consumption
    Rs. 0  
    100  
    200  
    300  
  35. Write a note on paper currency standard

  36. Write a brief note on flexible exchange rate.

  37. Specify the two achievements of BRICS.

  38. What are the causes of water pollution?

  39. Write short notes on National planning commission.

  40. State and explain the different kinds of Correlation

    1. Part-IV

      Answer all the questions.

    7 x 5 =35
    1. Illustrate the functioning of an economy based on its activities

    2. What are the difficulties involved in the measurement of national income?

    1. Narrate the equilibrium between ADF and ASF with diagram

    2. Illustrate the working of Multiplier

    1. List the problems in defining Money Supply.

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

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

    2. List the offers of International specialization

    1. Bring out the functions of World Bank.

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

    1. List the Revenue of State Sources

    2. Explain the concepts of externality and its classification

    1. Elucidate various measures of economic development.

    2. Distinguish between Qualitative and Quantitative data.

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