Class 12 Economics Sample Paper

Class 12 Economics Sample Paper

Time: 3:00 hour/M.M.-80

General Instructions

  • All questions in both sections are compulsory. There are internal choices in some questions,
  • Question No 1-10 and 18-27 are multiple choice/very short answer questions carrying 1 mark each. They are required to be answered in one sentence
  • Question No 11-12 and 28-29 are short answer I questions carrying 3 marks each. Answers to them should not normally exceed 60-80 words each.
  • Question No 13-15 and 30-32 are also short answer II questions carrying 4 marks each Answers to them should not normally exceed 80-100 words each.
  • Question No 16-17 and 33-34 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100-150 words each.



1- The aggregate demand will continue to rise even beyond the level of full employment. State true or false.

2- M1, and M2, measures of money supply issued by RBI are known as broad money. State true or false.

3- In a two-sector economy, AD is equal to

a) G+ (X-M)

b) C+S

c) C+G

d) C+1

4- What can be the minimum value of investment multiplier?

a) 0

b) 2

c) 1

d) 3

5- Foreign exchange transactions which are ________ of other transactions in the Balance of Payments Account are called autonomous transactions.

6- The difference between narrow money and broad money is ________.

7- Bullish expectations attract ___________expectations.

8- From the set of statements given in column I and column II, choose the correct pair.

Column I

(i) Deicient demand

(ii) Excess demand

(iii) Deflationary Gap

(iv)  Inflationary Gap

Column II

(a) No change on ouiput

(b) No change on omployment

(c) Increase in prices

(d) Decrease in prices

9- If the value of MPS is 0,35, then what would be the value of MPC?


If the value of MPC is 0.75, then what would be the value of MPS?

10- Central banks maintains same relation with commercial banks as commercial banks have with general public. Defend or refute the statement. Explain

11- Money as we see it in its present form has evolved after a long process of evolution Explain.

12- Explain inflationary gap using diagram.


Explain deflationary gap using diagram.

13- Distinguish between Real Gross Domestic Product and Nominal Gross Domestic Product. Which of these is a better index of the welfare of the people and why?

14- Explain the meaning of equilibrium level of income. Can there be unemployment in the economy at equilibrium level of income? Explain.”Or” What is deficient demand in an economy? What is its impact on output, employment and prices?

15- What are official reserve transactions? Explain their importance in the Balance of Payment.

16- Calculate (1) domestic income (ii) compensation of employees.

S.No. Items Rs. (in crore)













Net Factor income From Abroad

Net Exports

Net Indirect Taxes

Rent and Royalty

Consumption of Fixed Capital

Private Final Consumption Expenditure

Corporate tax


Net Domestic Capital Formation


Government Final Consumption Expenditure

Undistributed Prots

Mixed Income
















How will you treat the following while estimating national income of India? Give reasons.

i) Government expenditure on street lighting

ii) Construction of new house.

iii) Financial help received by flood victims


17- Define revenue receipts in a Government Budget. Explain how Government Budget can be used to bring in price stability in the economy.


Section: B

(Indian Economic Development)

18- Identify the correct sequence of alternatives given in column II by matching them with respective terms in column I.

Column I Column II
(i) Consolidation of holdings


(ii) Shift from subsistence to commercial farming

(iii) Limited coverage

(iv) HYV seeds

(a) Major driver of green revolution


(b)Reform in agricultural sector


(c) Achievement of green revolution

(d) Failure of green revolution


19- In which year, railways was introduced in India?

a) 1850

b) 1890

c) 1853

d) 1892

20- Which of the following programme has been merged with MNREGA?

a) Food for Work Programme

b) National Food for Work Programme

c) Rural Employment Generation Programme

d) None of the above

21- Which of these is alternative marketing channel in Tamil Nadu?

a) Hadaspar Mandi

b) Apni Mandi

c) Rythu Bazars

d) Uzhavar Sandies

22- During GLF campaign, due to political conflict, _______ withdrew its professionals from China which were sent to help in the industralisation process.


People’s Republic of China was established in__________.

23- NABARD was set up in________ as an apex body to coordinate the activities of all institutions involved in the rural financing system

24- China has the_______ largest GDP

25- Infant mortality rate was high during the colonial period in India. State True or False

26- How do the PSUs promote equality?

27- What is the contribution of marine and inland sources to total fish production?

28- During the colonial period, Indian wealth was drained. Do you agree with the statement? Give reasons in support of your answer Or Explain the ‘Ryotwari’ and ‘Mahalwari’ System of collecting land revenue prevalent under the British rule.

29- China initiated a campaign in 1958 aiming at industrialising. Explain.

30- Differentiate between strategic and minority sale.


Differentiate between tariff and non-tariff barriers.

31- Why is it important to develop proper storage facilities in rural areas?

32- What is the state of rural infrastructure in India?

33- Explain the relationship between environment and the economic development.

34- Critically evaluate the role of the rural banking system in the process of rural development in India.


“The unemployment level of our country can’t be attributed to one factor.” Defend or refute the statement along with the explanation.



CBSE Sample Paper 12 2020-21 Economics half yearly