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 slot gacor hari ini 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 situs slot online terbaik 2021 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✓