Term 1 Sample Paper Class 12 Economics 2021-22

Term 1 Sample Paper Class 12 Economics 2021-22

 

Time: 1.30 hours

Maximum Marks-40

General instructions

> There are a total 60 questions in this paper out of 50 questions are to be attempted.

> This paper is divided into three sections.

>Section A-contains 24 questions. Attempt any 20 questions.

>Section B contains 24 questions. Attempt any 20 questions.

>Section C contains 12 questions. Attempt any 10 questions.

>All questions carry equal marks

 

Section-A

1. Inventory is a _____ concept whereas the change in inventory is a______ concept.

a) stock, flow

b) flow, stock

c) stock, stock

d) flow, flow

 

2. Supply of money refers to…….

a) currency held by the public

b) currency held by the Reserve bank of India

c) currency held by the public and demand deposit with commercial banks

d) currency held in the government account

 

3. Who regulates money supply in India!

a) Government of India

b) RBI

c) commercial banks

d) Planning commission

 

4. Which one of the following is not a capital expenditure?

a) loans advanced by world bank      

b) construction of school building

c) Repayment of loans

d) Purchase of metro coaches from Japan 

 

5. Money supply include…..

a) All deposits in a banks

b) Only demand deposits in bank

c) One time deposits in banks

d) currency with the banks

 

6. Which of the following is not the function of the central bank?

a) banking facilities to government

b) banking facilities to public

c) lending to government

d) lending to commercial banks

 

7. Primary deficit in a govt. budget will be zero, when________.

a) Revenue deficit is zero

b) Net interest payments are zero

c) Fiscal deficit is zero

d) Fiscal deficit is equal to zero

 

8. The non tax revenue in the following is…

a) Export duty

b) Import duty

c) Dividend

d) Excise

 

9. Which of the following is a direct tax?

a) corporation tax

b) Entertainment tax

c) Excise duty

d) Service tax

 

10. Direct tax is called direct because is collected directly from

a) The producers on goods produced

b) sellers on goods sold

c) the buyers of goods

d) the income earners

 

11. Which of the following is not a revenue receipt?

a) recovery of loans

b) foreign grants

c) profits of public enterprises

d) Wealth tax

 

12. A company located in India receives a loan from a company located abroad. How is this transaction recorded in India’s balance of payments account?

a) credit side of current account

b) debit side of current account

c) credit side of capital account

d) debit side of capital account

 

13. Foreign exchange transactions which are independent of other transactions in the balance of payments account are called.___

a) current transaction

b) capital transaction

c) autonomous transaction

d) accommodating transactions

 

14. Which of the following statement is not true?

a) Borrowings from the Asian Development Bank by the government in an accommodating transaction.

b) Loans given to Sri Lanka by the government is an accommodating transaction

c) Buying of machinery from Japan  is an accommodating transaction

d) Borrowing from public is an accommodating transaction.

 

15. _______is the situation when the imports of goods and more than the exports of goods.

a) Trade surplus

b) trade deficit

c) Both

d) none

 

16. An Indian real estate company receives rent from Google in New York. This transaction would be recorded on…… side of………. account.

a) credit, current

b) debit, capital

c) credit, capital

d) debit, current

 

17. An Indian company located in India invests in a company located abroad. This transaction is entered in India’s balance of payments account on_____.

a) credit side of current account

b) debit side of current account

c) credit side of capital account

d) debit side of capital account

 

18. Demand deposits include______

a) Saving account deposits and fixed deposits

b) Saving account deposits and current account deposits

c) Account deposits and fixed deposits

d) All types of deposits

 

19. __________ is the main source of money supply in an economy.

a) Central Bank

b) commercial Bank

c) both

d) Government

 

20. Which of the following statement is true?

a) All Financial institutions are banking institutions

b) RBI has the complete authority to issue currency notes

c) The Government of India issues currency notes

d) Banking institutions issue currency notes.

 

21. India entered the…… stage of demographic transition after the year 1921.

a) Forth

b) second

c) Third

d) first

 

22. During British period Indian economy was____.

a) semi-feudal economy

b) disintegrated economy

c) colonial economy

d) all of the above

 

23. During British regime which one of the following works was not performed?

a) establishment of Railways

b) establishment of telephone system

c) establishment of wireless system

d) establishment of metro in Delhi

 

24. First attempt to estimate the national income in India during British period was made by…

a) Findlay Shirras

b) William Digby

c) Dadabhai Naroji

d) V.K.R.V RAO

 

Section-B

25. Duration of second five year plan in India was…

a) 1950-55

b) 1951-56

c) 1956-61

d) 1953-58

 

26. Main element of green revolution is…

a) HYV seeds

b) use of fertilizers

c) extension of irrigation facilities

d) all of the above

 

27. Founder of green revolution is….

a) Norman E.Borlaug

b) M.S Swaminathan

c) Gerri Baker

d) none

 

28. Which of the following elements is not related with green revolution?

a) Improved seeds

b) New strategy for agriculture

c) Fertilizers

d) increase in population

 

29. Which crop was benefited most by green revolution?

a) Wheat

b) Tea

c) Cotton

d) Oil seeds

 

30. Which of the following is not true regarding the importance of agriculture in the Indian economy?

a) Main source of structural unemployment

b) Contribution in national income

c) Base of industrialization

d) Base of economic development

 

31. In how many categories industries were divided in industrial policy 1956?

a) 3

b) 2

c) 5

d) 4

 

32. Process of industrialization was started in India in____.

a) First plan

b) second plan

c) Third plan

d) Fourth plan

 

33. New economic policy 1991 is also called…

a) L-Turn policy

b) S-Turn policy

c) U-Turn policy   

d) none

 

34. New economic policy includes_____.

a) Liberalization

b) Privatization

c) Globalization

d) all of these

 

 

 35. What kind of Tax is GST?

a) Direct tax

b) Indirect tax

c) depends on the type of goods and services

d) none

 

36. Which of the following statement is not true regarding the benefit of privatization?

a) less political intervention

b) Improvement in economic efficiency and technical efficiency.

c) Destabilisation of economy

d) Increased accountability

 

37. Which of the following statement is not true regarding the benefit of GST?

a) GST provides a comprehensive and wider coverage of input credit set off you can use the service tax credit for the payment of tax on sales of goods etc.

b) All indirect taxes in state and Central level have been included by GST

c) Uniformity of tax rates across the state

d) Ensure better compliance due to aggregate tax rate reduction.

 

38. With which disparity of income and its distribution are associated?

a) Absolute poverty

b) Relative poverty

c) chronic poverty

d) all of the above

 

39. In which category the loan taken for buying agricultural equipment is generally put

a) Short term loan

b) Medium term loan 

c) long term loan

d) All of the above

 

40. Education increases peoples.

a) Productivity

b) skill

c) Income

d) all of the above

 

41. Which of the following statements is true?

a) M1 is the most liquid measure of money supply

b) M2 is the most liquid measure of money supply

c) M3 is the most liquid measure of money supply

d) All the statements are true

 

42. Which of the following is not the function of the central bank?

a) banking facilities to government

b) banking facilities to public

c) lending to government

d) lending to commercial banks

 

43. Fiscal deficit equals….

a) primary deficit minus interest payments

b) primary deficit plus interest payments

c) total budget expenditure minus total budget receipt

d) none

 

44. Primary deficit in a government budget is____

a) revenue expenditure-revenue receipts

b) total expenditure – total receipt

c) revenue deficit-interest payments

d) fiscal deficit – interest payments

 

45. Which of the following statements is true?

a) expenditure on Ujjwal Yojana launched by the government is an example of capital expenditure

b) expenditure on digital Yojana launched by the government is an example of revenue expenditure

c) expenditure on Ujjwal Yojana launched by the government is an example of deferred revenue expenditure

d) none of the statements are correct

 

46. Which of the following is a source of capital receipt?

a) foreign donations

b) dividends

c) Disinvestment

d) Indirect taxes

 

47. In British India cloth industry was concentrated at______.

a) Ahemdabad

b) Hyderabad

c) Bengaluru

d) Ghaziabad

 

48. National Development council has been constituted in…

a) 1950

b) 1947

c) 1951

d) 1952

 

Section-C

49. Indian Planning commission was constituted in…..

a) 1947

b) 1950 

c) 1951 

d) 1971

 

50. Which of the following statement is not true about the characteristics of planning?

a) maximum utilization of resources

b) applicable on the whole economy

c) Central planning authority

d) no interference by the state

 

51. Plan holiday period was….

a) 1961-64

b) 1966-69

c) 1972-75 

d) 1978-81

 

52. Which of the following statements is not true about the planning commission?

a) Planning commission of India was established on 15th March 1952

b) Its objective was to evaluate the physical capital and human resources and on this basis make programs for the plant development and its evaluation

c) The planning commission of India has now been dissolved in 2015

d) It was replaced by National institution for transforming India aayog

 

53. Green revolution implies….

a) increase in area under rice crops

b) increase in area under all the crops

c) increase in area under food grains crops

d) increase in production of food grains in short period

 

54. Fixation of maximum land ceiling is one type of….

a) Technical reform

b) institutional reform

c) structural reform 

d) market reform

 

55. The most benefit state due to green revolution is…

a) Odisha

b) Bihar

c) Kerela

d) Punjab

 

56. To increase the annual growth rate of industries effort should be made for..

a) full utilisation of production capacity

b) use of modern technology

c) industrial peace

d) all of the above

 

57. Problem of small scale industries is

a) shortage of raw material

b) inadequate  use of capacity

c) shortage of capital and credit

d) all of the above

 

58. Trade policy was made liberal in India in____

a) 1990

b) 1991

c) 1992

d) 1993

 

59. Need for import substitution policy is due to…

a) shortage of foreign exchange

b) adverse balance of trade

c) devaluation of money

d) all of the above

 

 

60. Features of new EXIM policy are..

a) evolution of quantitative restriction on export

b) special incentives on exports of agricultural products

c) improvements in facilities of special economic zones

d) all of the above

Leave a Comment

Your email address will not be published. Required fields are marked *