ST.

THOMAS SCHOOL INDIRAPUKAIVI

HALF-YEARLY EXAM (2023-24)
XII ECONOMICS (030) No. of pages: 6
MARKS: 80

TIME: 3HOURS

General Instructions:
l)Question paper is divided into two sections, section A & section B.
2)Ql to Ql0 and Q18 to Q27 are of MCQs of 1 mark each.
3)Three marks questions should be answered within 70-80 words.
4)Four marks questions should be answered within 90 words.
S)Six marks questions should be answered within 100-120 words.

SECTION A
Ql. Which of the following is not a 'factor payment'? (1)
(a)Free uniform to defence personnel (b)Salaries to member of
Parliament
(c)Rent paid to the owner of a building (d)Scholarship given to the students
Q2. "Intermediate goods are always durable in nature". State true /false. (1)
Q3. Factor income paid to non-residents within the domestic territory of a (1)
country leads to:
(a)lncrease in domestic income (b)Decrease in National income
(c)Both (a) & (b) (d)None of these
Q4. Read the following Assertion(A) and Reason{R). Choose one of the correct (1)
alternatives given below:
Assertion(A) : Money supply is the stock concept.
Reason (R):Money supply is measured over period of time.
Alternatives:
(a)Both Assertion(A) & Reason are true and Reason is the correct explanation
of Assertion(A).
(b)Both Assertion(A) & Reason{R) are true and Reason(R) is not the correct
explanation of Assertion{A).
(c)Assertion(A) is true but Reason(R) is false.
(d)Assertion{A) is false but Reason(R) is true.
QS. Read the following statements carefully and choose the correct alternative (1)
from the following:
Statement 1:The impact and incidence of direct taxes is on the same person.
Statement 2:Direct taxes are generally proportional in nature.
Alternatives:
(a)Both the statements are true.
(b)Both the statements are false.
(c)Statement 1 is true & Statement 2 is false.
{d)Statement 2 is true & Statement 1 is false.
QG. (A} Value of money multiplier_ _ _ _ _ with an increase in Cash Reserve (1)
Ratio. Fill in the blank (increase/decrease/remains unchanged).
OR
(B) What is the value of money multiplier when initial deposits are RsS00 and
LRR is 10%
(a)0.1 (b)0.2
(c)l0 (d)20
1
 ,- - - - . -, .. . - ,- - - ,-
Yojana'.
(a)Reallocation of resources (b)Economic growth
(c)Reducing inequalities in income & wealth (d)None of these

Q9. Unilateral transfers are also known as Transfers.(fill in the blank: (1)
requited/unrequited)
QlO. When there is appreciation of currency: (1)
(a)lmport becomes costlier (b)Export becomes ·cheaper
(c)lmport becomes cheaper (d) No effect on exports

Qll. "To boost falling demand in the economy, the Reserve Bank of lndia(RBI) (3)
recently reduced Repo rate". Elaborate the rationale behind the steps taken
by the Central Bank(RBI).

Q12. (A) Differentiate between Direct Tax & Indirect Tax. (3)
OR
(B) Differentiate between Revenue Receipts & Capital Receipts.

Q13. (A) "Gross Domestic Product(GDP) does not give us a clear indication of (4)
economic welfare of a country". Defend or refute the given statement with
valid reasons.
OR
{B) Calculate Subsidies:
Particulars Rs(in crores)
(i)GNP at FC 27710
(ii)Consumption of fixed capital 4000
(iii)lndirect Taxes 120
(iv) Factor income from abroad 400
{v)NDP at MP 24000
(vi)Factor income to abroad 600
Q14. Explain primary functions of money. (4)

QlS. Classify following into revenue & capital expenditure with reason: (4)
(i)Construction of the school building.
(ii)Expenditure on collection on tax.
(iii)Amount borrowed from World Bank.
(iv)Grants given to states.

Q16. (A) Estimate the missing values(?), if Gross Domestic Product at Factor Cost (6)
(GDPfc) by Income Method and Expenditure Method is Rs370 crores:
2
 Particulars Rs crores
(i)Compensation of employees 175
(ii)Private final consumption expenditure 210
(iii)Employer's contribution to social security schemes 50
(iv)Net indirect taxes 20
(v)Net exports (-)20
(vi)Government final consumption expenditure ?
(vii)Operating surplus ?
(viii}Gross domestic fixed capital formation 70
(ix)Mixed income of self-employed 40
60 I
(x)Changes in stock
(xi)Consumption of fixed capital 70

OR
(B) Whether the following items will be included in National Income? Give
( reason for your answer:
( (i)Construction of new house.
( (ii)Purchases by foreign tourists.
(iii)Old age pension
( (iv}Earnings of shareholders from the sale of shares.
(
( Q17. 'Many large MNCs have recently shifted their investments from China and have (6)
started their production in India, thereby boosting the Make in India plans of
I
C I

C
the government'.
Presuming other factors being constant with the help of diagram discus the
effects of the given statement on foreign exchange rates with reference to the
I
Indian economy.
PART-B
Q18 Which of the following was NOT the feature of 'Fisheries' sector 7 (1)
(a) Widespread Underemployment. (b) Low per capita earnings.
(c) Perfect mobility of labour to other sectors. (d) High illiteracy
Q19. Which of the following is NOT true about foreign trade during the colonial (1)
rule?
(a) Import of Finished Goods. (c) High level of unemployment
(b) Sufficient Capital goods industries (d) Low contribution to GDP
Q20. (A)---------------- is a process, which aims at comprehensive change and (1)
improvement of rural life in all aspects.
(a) Organit farming (b) Agricultural marketing
(c) Agricultural diversification (d) Rural development
OR
(B) ------------- have emerged as an important micro finance system and led to
women empowerment.
{a} NABARD {b) SHG (c) Commercial banks (d) land Development Banks
Q21 (A) Read the following statements -Assertion (A) and Reason (R). Choose one 1
of the correct alternatives given below:
Assertion (A) : Human capital formation only increases the productivity, not
stimulates innovations.
Reason (R) : Human capital creates ability to absorb new technologies .
Alternatives:

3
 -~-----
( ) are true and Reason (R) is the
a) Both Assertion(A) and Reaso~ R( )
( t" n of Assertion A • ).
correct exp 1ana io (R) are true and Reason (R ,s not
(b) Both Assertion(A) and Reason . (A)
the correct explanation of Assertion . f. I
(c) Assertion (A) is true, but Reason (R) t~ a s:-
(d) Assertion (A) is false, but Reason (_R) is tru .
OR .
- . hare of total education
(B) Which level of education takes a maJor s

---- ----- --
expenditure in India? . (d) none of th ese
(a) Secondary (b) Tertiary (c) Elementary
_ _L - -- - - - - - - - --:-~=d : ;:ihc;:-:;:--;thhoe~ co~r~re~ct alternatives 1.
Q22. Read the following statements carefully an c oose
from the following: · ulture sector
Statement 1: The new economic policy has neglected the agnc
as compared to other two sectors. .
Statement 2: The new economic policy has discouraged consumerism.

Alternatives :
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement 1 is true and statement 2 is false.
(d) Statement 2 is true and statement 1 is false.

i Q23. "Ability of a stream to accept modest biodegradable water" has shown the --- (1)
---------- function of environment.
(a} Provides resources for production
(b} Environment assimilates waste
(c} Environment sustains life
(d} It provides aesthetic services

Q24. From the set of the events given in Column - I and the corresponding year in (1)
column - II, choose the incorrect pair:
COLUMN -I COLUMN-II
(a) Opening of Suez Canal (i) 1869
(b) First railway bridge linking (ii) 1853
Bombay with Thane
(c) Battle of Plassey (iii) 1757
(d) Setting up of TISCO (iv) 1917
Alternatives:
(b) b - (ii) (c) C- (iii) (d) D - (iv)
(a) A- (i)

Q25. Read the following statements carefully and choose the correct alternatives 1

from the following:

Statement 1: India followed mixed economic system after independence.
Statement 2: Under mixed economic system, the central problems are
solved by the private sector.
Alternatives:
(a) Both the statements are true.
(b) Both the statements are false .
(c) Statement 1 is true and statement 2 is false.
(d) Statement 2 is true and statement 1 is false I
 (1)
Q26 · On the basis of given data, identify the Incorrect statement:
The proportion of GDP co nt n·b·ut edb y,·ndustrial sector. -

,
\
Year Proportion of GDP
1950-51 11.8%
\
1990-91 24.6%
Source: NCERT Indian Economic Development XII.
' Alternatives:
(a) Industrial sector contribution had increased.
(b) Industrial sector did not become well di~er~ified. f development.
0
(c) Industry's share of GDP is an important indicator
(d) Employment increased in industrial sector.
(e) (1)
Q27.
(A) The policy of----------- is another name for inward Looking Tr~~e S:rategey.
(c) Import stab1hzat1on
(a) Import Promotion .. .
. . (d) export stab1hzat1on
(b) Import subst1tut1on
OR
( B) The spread of---------------,-- technology enabled India to achieve self-
sufficiency in food grains. (c) Blue revolution
(a) White revolution (d) Golden revolution
(b) Green revolution .
3
Q28. "Many resources have become extinct and the wastes generated are beyond ( )
the 'Absorptive Capacity'.

In the light of the above statement and images discuss any two reasons of
environmental crisis.
Q29. (A) "To provide adequate credit to farmers, Govt. established the institutional 3.
sources." In the light of above statement, explain two significant sources
of institutional sources .
OR
(B) 'Human capital benefits only the owner and not the society'. Defend or
Refute.
Q30. "Just after independence, it was felt by the policy makers that the objective of 4
industrial development could not be left to the free play of market forces of
demand and supply".
Do you agree with given statement? Give reasons in support of your answer.

Q31. (A) 'Expenditure on Health is an important means of human capital 4

formation in an economy''.
Give valid reasons to justify the given statement.
. OR
(B) Organic Farming is the need of the hour to promote sustainable
development but, has its own limitations."

5
 (6)
independence.
OR
(B) Explain the following terms:
(a} Quota (b} Privatization (c) Animal husbandry

Q34. Read the following passage and answer the following question on the basis of
same:
India's growth path grabbed the attention of_the world after the introduction
of the New Economic Policy in 1991. Economic reforms introduced stabilization
and structural reforms.
Liberalisation led to the breakdown of the "License raj". Reforms were
introduced in various sectors with the aim of decreasing govt. intervention. It
was done in order to build a new frame work to make markets more
compe~ ; :
India's foreign exchange reserves was one of the reasons for the
introduction of reforms. At present, India enjoys a leading position in terms of
foreign exchange reserves across the world. These reforms completely
transformed the Indian economy. However, today many economist feel the
need for a new set of reforms.
(a). Mention reason for reforms, given in case study. (1)
(b) Mention the one -one objective of stabilization and structural reforms. (2)
(C) "Breakdown License raj" introduced in which sector, explain other reforms (3)
introduced in this sector.