ANGELS’ ACADEMY SR. SEC.

SCHOOL
NAME………………………………….. PEN PAPER TEST-1
ROLL NO……………………………….. CLASS- XII (2024-25)
ECONOMICS (030) [SET-2]
Duration: - 1: 30 HRS. MM: 40
GENERAL INSTRUCTIONS:-
1. This a subjective question paper containing 17 questions.
2. Question 1-10 are objective type questions, carrying 1 mark each.
3. Question 11-12 are short answer type I question carrying 3 marks each. Answer to them should be in
60-80 words each.
4. Question 13-15 are short answer type II question carrying 4 marks each. Answer to them should be
in 80-100 words each.
5. Question 16-17 and are long answer type question carrying 6 marks each. Answer to them should be
in 100-150 words each.
6. Answer should be brief and to the point and the above word limit be adhered as far as possible.
QUESTIONS
1. Assertion (A): India became an exporter of primary products and an importer of finished consumer and
capital goods produced in Britain.
Reason (R): Restrictive policies of commodity production, trade, and tariff pursued by the colonial
government adversely affected the structure, composition, and volume of India’s foreign trade. [1]
a) Both assertion and reason are true. Reason is not the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
2. Assertion(A) : revenue budget consists of revenue receipts of the government both tax revenue and
non-tax revenue and revenue expenditure
Reason (R): capital budget consists of details relating to capital receipts and capital expenditures of the
government of current year. [1]
a) Both assertion and reason are true. Reason is not the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
3. Identify a revenue receipts [1]
a) Recovery of loans c) Borrowings made
b) External grant received d) Disinvestments
4. Assertion (A): Government budget is an annual estimated statement of revenue and expenditure
during coming fiscal year.
Reason (R): Through government budget, it tries to reduce the regional variations. (1)
a) Both assertion and reason are true. Reason is not the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
5. Assertion (A): Transfer Income is not included in the National Income.
Reason (R): Transfer Income is a unilateral (one-sided) concept. [1]
a) Both assertion and reason are true. Reason is not the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
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 c) Assertion is true but reason is not d) Reason is true but assertion is not
6. Suez canal was opened in India during British rule in [1]
a) 1769 b) 1869 c) 1779 d) 1879
7. Assertion (A) at the time of independence agricultural production in India received a set back
Reason (R) due to partition, irrigated and fertile land went in Pakistan [1]
a) Both assertion and reason are true. Reason is not the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
8. Britain had a monopoly control over India’s [1]
a) Exports b) Imports c) Exports and imports d) None of these
9. Statement 1: net investment is a stock concept.
Statement 2: capital is a flow concept. [1]
a) statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both the statements are true
d) Both the statements are false
10. Which of the following is not a final goods? [1]
a) Wheat b) Gold
c) Services of doctor for a household d) Sand and bricks
11. Calculate net value added at factor cost from the following data [3]
Items Rs. In lakhs
a. Durable producer goods (with a life 10
span of 10 years)
b. Single use producer goods 5
c. Sales 20
d. Unsold goods 2
e. Goods and service tax 1

12. What objectives did the British intend to achieve through their policy of developing infrastructure in
India? [3]
13. From the information given in the diagram, categorise the items into revenue receipts and capital
receipts, stating valid reasons. [4]

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14. State what conditions in the following statements may be true: [4]
a. GDPMP is equal to GNP at market price
b. Domestic income is greater than national income
15. Could British follow an industrial policy beneficial for Britain as well as India? Explain. [4]
16. Calculate net national product at market price by
(i) Expenditure method and (ii) income method [6]
Items Rs. In lakhs
a. Personal consumption expenditure 1400
b. Wages and salary 1400
c. Employer’s contribution to social security 200
d. contribution to provident fund by the employees through 100
the employer
e. gross business fixed capital formation 120
f. gross residential construction investment 120
g. gross public expenditure 480
h. rent 100
i. inventory investment 40
j. dividend and corporate profit tax 120
k. corporate saving 80
l. excess of exports over imports 40
m. interest 80
n. mixed income of self employed 200
o. net factor income to abroad 20
p. indirect taxes 40
q. subsidy 20

17. (a) Use the following information of an imaginary country: [2]

YEAR 2014-2015 2015-2016 2016-2017
Nominal GDP 6.5 8.4 9
GDP Deflator 100 140 125

For which year is real GDP and nominal GDP same and why?
(b) Why inflation and externalities are considered the limitation of GDP? [2]
(c) Differentiate between nominal and real GDP. [2]

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