THE INDIAN HIGH SCHOOL,DUBAI

PERIODIC TEST-1 2024-25

DATE :07.06.2024 TIME : 8 hours
GRADE: 12 ECONOMICS MARKS :80

GENERAL INSTRUCTIONS:

a) The first 10 minutes should be devoted lor reading and understanding the question paper.

b) All the questions in both the sections are compulsory. Marks for questions are indicated against

each question.
This question paper contains twosections: Section A Macro Economicsand Section
- B-Indian
c)

EconomicDevelopment.
d) Question 10 and 18 - 27 are Multiple Choice Questions of 1 mark each.
numbers I -

e) Question 11 - 12 and 28 - 29 are short-answer questions carrying 3 marks each. Answers

numbers
to them should not normally exceed 60 - 80 words each.

f) Question numbers 13- 15 and 30 - 32 are also short-answer questions carrying 4 marks each.
Answers tothem should not normally exceed 80- 100 words each.
g) Question numbers 16 - 17 and 383 - 34 are long-answer questions carrying
6 marks each. Answers to
them should not normally exceed 100 - 150 words each.
h) Answers should be brief and to the pointand the above word limit is to be adheredto as far as
possible.
SECTION A
Macro Economics

1
1. Identify the incorrect statements from the following: (Choosethe correct alternative)

at Factor cost plus Net

(a) Gross DomesticProduct a market price =GrossDomesticProduct
Indirect tax

Product at Market Price Gross DomesticProduct at Market Price +NFIA

(b) Gross National
at Factor Cost
(c) NetNational Product at market Price =Net National Product
(d) Net National Product at Factor Cost =National income.

2. Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives
1
given below:
income when Net factor Income from Abroad
Assertion (A):Domesticincome is less than the national

Is positive.

Reason R): National income is an earned income.

Alternatives:
and Reason (R) is the correct explanation of Assertion
a) Both Assertion (A)and Reason (R)are true

(A).
not the correct explanation of
b) Both Assertion (A) and Reason (R)are true and Reason (R) is

Assertion (A).

c) Assertion (A) is true but Reason (R) is false.

d) Assertion (A) is false but Reason (R) is true.

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 statomentscarelully:
3, Read the lollowing WHO located in Indiais a normal
working in the
Statement 1: An Indian a non-rosident of Indin
roaldent of
ina
from India in England is
Statement 2: Ambassador
alternative:
statements, cho0se the correct
In the light of the given

a) Statoment 1 is truo and statemont2 is false.

false and statement2 is
true.
is
b) Statement1
1 and2 are true.
c) Both statements
d) Both statements 1 and 2 are false.
i8
into various factor income components
4. Combined factor income which can't be separated
up the blank)
Known as (Choosethe correct alternative to fill
a) Factor income b) Transfer income
c) Mixed income of the self-employed d) None of these

1
of production capacity in the economy
5. High is a sign of expansion

(Choosethe correct alternatives to fill up the banks)

a) Gross fixed investment b) Inventory investment

c) Gross investment d) Net fixed investment

1
6. Whocirculates mint and one rupee notes in India?
all

a) Ministry of finance b) RBI c) Ministry of external affairs d) StateGovernment

1
7. A has a good that B wants and B has good thatA wants This is referred to as:

a) Unit of account b) Store of value

c) Double coincidence of wants d) None of the above

8. From the set of the items given in Column I and corresponding facts given in Column II, choose
1
the correct Pair of statements

Column I Column II
A. Full bodied
money )Money value>commodityvalue of money

B. Term deposits (ii)Chequable deposits

C. Gross demand deposits (üi) does not include inter banking claims
D. High powered money money
(iv)Base created by RBI in the
economy

Alternatives:
(a) A--(i) (b) B-(i1) (c) Co-(i) (d) D(iv)

9. Read the following statements Assertion (A) and Reason (R). Choose one of the correct alternatives
1
given below:
Assertion (A): All financial institutions are banking institutions
Reason (®): Higher cash deposit ratio implies higher credit ereation capacity of the commercialbank
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (®) is the correct explanation of Assertion
(A).
b) Both Assertion (A) and 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.

) Assertion (A) is false but Reason (R) is true.

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 tho given Mow charlcnrofully nnd chNn the y mct par from tho
altnenatiyw tven haleyw

functons of money

D
<
A Store

Value
of

Measute
of value B

Nternatives;

a) A:Medium of Exchange ;B: Standard of deferred

payments
C: Secondary functions; D: l'rimary functions
b)A: Standard of deferrod payments B: Medium of exchange
C: Primary functions
;
D: Socondary functions
c) A: Standard of deferred payments ;B: Medium of exchange
C:Secondary functionsD: Irimary functions
d) ;
A:Medium of exchange B: Standard of deferred payments
C: Primary functions ; D: Secondaryfunctions

11.State the meaning of the following:

()Intermediate goods (i) Capital goods (iii) Final goods
of National Income of
12. Giving valid reasons explain
whether following will be included in estimation 3
(l mark each).
India?
(a)Taking aged parents
care of
(b) Rent free house to an employee by an employer
(c) Purchasesby foreign tourists.
OR
estimating national income?You must give reasons
How should the following be treated while
in supportof your answer.(1 mark
each)

(i) Bonus paid to employees

(ii) Addition to stocks during a year

(iüi) Purchase of taxi by Taxi driver

year 2020 and 2021 was 200

the country. Its output during the
13. Only one product D is produced in the year was Rs.100 and Rs, 10 1

price of the product during

And 220 units respectively. The market GDP in the year
percentage change in Real GDP and Nominal
Per unit respectively. Calculate the 4
2021 using 2020 as the base year.
OR 4
income of self-employed
From the following data, calculate 'Mixed Rs. In crores
SL No Item
500
Profit
200
(i) Rent 100
(iii) Consumption of fixedcapital
1,000
of employees
(iv) Compensation
2,700
National incomne
200
Corporation tax
150
Net retained earningsof private enterprises
()50 NHA
(viii) Net factor income from abroad
250
(x) Interest
160
Net Indirect taxes
x) Page 3 of8
 andnon-factor inputs. Explain the components of domostic
14. Differentiate factor inputs
Income.

15. (1)Define Money supply.

(ii)Explain the M1 measwe of money supply.
(ii) Writethe suppliers of money.

and (b) Income method from the

16. Estimate National income by (a) Expenditure method 3+3=6
following data.

Items Rs.In Crores

210
Private final consumption expenditure
50
(ii) Government final consumptionexpenditure
(iii)
40
Net domestic capital formation
(iv) Net exports ()5
(v) Wages and salaries
170
10
(vi) Employer's contribution to provident fund
(vii) Profit 45
(viii) Interest 20
(ix) Indirect taxes 30
(x) Subsidies
(xi) Rent 10
(xii) Net factor income from abroad 3
(xiii) Consumption of fixed capital 25
(xiv) Royalty 15

OR
Calculate 'GrossDomestic Product at market price' by (a) Productionmethod and (b) income
Method. 3+3-6
Items Rs. In crores
(1) Intermediate consumption of:
Primary sector 500
Secondarysector 400
Tertiary sector 300
(i) Value of output of:
Primarysector 1,000

Secondary sector 900

Tertiary Sector 700
(iii) Rent 10
(iv) Compensation of employers 400
650
() Mixed income
300
(vi) Operating surplus
(vii) Net factor income from abroad (20
5
(viii)|Interest
40
(ix) Consumption of fixed capital
Net indirect tax 10
(×)

17. Read the following case studyparagraph carefully and Answer: the questions on the basis of the

Same.

The central bank of India Reserve Bank of India, is the apex institution that control the entire
i.e.

financial market.It's one of the major functions is to maintain the reserve of foreign exchange.Also, it

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 excossive Muctuations in the foreign oxchangn
nos in the foroig oxchango market to stabilizo the

the central bank's job to control a country's

economy through monetary policy; i the
other words, it is
to bonst Lhe
are steps that central bank can take
conomy is moving slowly or going backward,there all Involve injecling
purchases or printing more money,
economy.These sleps, whetlher they are asset
and domand economic projection occur and
currency W

more cash into the economy.The simple supply

devalue.
will use various methods
to keep
is growing. the central bank
When the opposite occurs, and the economy Whatever the
factors such as wages and prices.
that growth steady and in-line with other economic Sometimes,it is within the
alfecl the currency of that country.
central bank does or in lact don't do, will example,if the economy i8
eflect the value ofa currency. For
central bank's interest to prpose fully
impor ters of that country's
their currency value becomes
too high,
heavily reliant on exports and
effecting the economy.
commodities will seek cheaper supply; hence directly

any two functions of Central bank and

explain it.
Identify by the Central Bank
methods adopted
policy or the quantitative
(ii) Discuss any two monetary
to control money supply.

SECTION B
Indian Economic Development 1
on the eve findependence?
was the main feature of IndianEconomy
18. Which of the following
b) Urbanised economy
(a)Semi-feudal economy
(d)All of these
(c)Industrial economy
of small-scale industries.
constituted for aiming the development
19. In--.. -Karvecommitteewas
1958
(a) 1951 ()1953 (c1955 (d)
1
fromn the following.
the correct alternative
statements carefully and choose
20. Read the following the colonial
significant change during
structures of Indiashowed
Statement 1: The occupational
Period.
for the largest shareof
sector accounted
British rule, the industrial
Statement2:During the
Workforce.

Alternatives:

(a)Statement 1 and statement2 is false.

is true

is false and statement

1
2 is true.
(b)Statement
(c )Bothstatements 1 and
2 are true.
(d) Both statemnents 1 and 2 are false. alternative:
1
in chronological order and choose the correct
21. Arrange the following events
Column II
ColumnI (i) 1869
(a) First official Census (ii) 1853
(b) Year of Great Divide (iiil) 1921
(c)
Suez Canal
Opening of
India by
(d) Introduction of Railways
in
(iv) 1881
the British

Page 5
Altornativea:

iv ,c- ii d- i
(n) a-i,b-ii .c-ii, d- iv (b) a- ii ,hb-

(c) n-iv, lb-ii, c-i,d- (d) n- iii ,b- iv ,c- iid-

i
ii

22, Bofoo 1921, 1ndia was in the of demographictransition.

(Choose the correct alternative to fill up the blank)

a) lirst stage b) Second stage c) Third stage d) None of the above

28. IRead the lollowing stalements - Assertion (A) and Reason (R). Ch008eone of the correct alternative
given below:

Assertion (A): Growth and social justice is the central objective of Indian plans.

Keason (R): India opted for planning to utilize available resources efficiently and to establish

social justice.

a) Both Assertion (A) and Reason (R) are true and Reasn (R) is the correct explanation
of assertion(A)

D) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A)

c) Assertion (A)is true but Reason (R)is lalse.

d) Assertion (A)is false but Reason (R) is true

24. Before the adventof Green Revolution in 1960's, India was prímarily dependenton for

the supplyof food grains. (Fill in the blank with correct alternative) 1

a) United States of America UŠA) b) Britain (United Kingdom)

c) Mexico d) Union of Soviet Socialist Republics (USSR)
25. Under economicsystem, means of production are owned,controlled and managed
bythe Government. (Fill in the blank with correct alternative) 1

(a) Capitalistic Economy ()Socialistic Economy ()Mixed Economy (d) Feudalistic Economy

26.Who is known as the architect of Indian planning? 1

(a) JawaharlalNehru (b) DR. B.R Ambedkar

()PCMahalanobis (d) SardarVallabh bhai Patel

1
27. Read the following statementscarefully and choose the correct alternative from the following.

Statement 1: A tariff is a dutyon importedcommodities

Statement 2:Fall in tariff increases the price of imported commodities.

Alternatives:

(a)Statement1 is true and statement2 is false.

(b)Statement1 is false and statement2 is true.
(c )Both statementsl and 2 are true.
(d) Both statementsl and 2 are false.

Page 6 of 8
 roservoa
saveforeign exchango
Jrt
substitution wusimposod tho duol objoctive to
in India with
3
& to be
self-sufficiont.
"Justify stalement with valid argument.
the givon
29.
Discuss briefly the objoctive
fortho
rationalo bohind as a planning
lchoosing 'Modornization'

Indian economy

OR
Land India's
in transforming
reforms (institulional
reforms) played a significant role

agriculture. How ?
30

Europo

'sUEZ
CANAL"
Riotiynere
ALripä.
3800.

t:dian
Dieen

Atiésiic

in context ofopening of Suez

between India and
Britain
PG ne given map related to trade 4
Canal.
on government
new technology, they are a huge burden
O Wnle subsidies encouragefarmersto use 4
subsidies in light of this lact.
inances.Discuss the usefulness of 2
larmers?
and how did it benefit the
Revolution implemented
32. (A). Why was the Green the
'Greenrevolution enabled
statement with a valid explanation:
(B). Justify the
folowing
its stocks that could
be used during the
suficient food grains to build
Government to Procure 2
time of shortage'.
OR
4
Analyzethe given table.

1950-51 (in percentage)

1990-91(in percentage)
Sector
72.1
66.8
Agriculture 12.7
10.7
lndustry 20.5
17.2
Services

industrieswere ruined under the Britishrule.

33. (AYThe traditional handicrafts
answer. 4
Doyou agree with this view? Give reasons in support of your

de-industrialization effected by the British

(B)State the two-fold motive for thesystematic 2
in Pre-independent Inda.
OR
6
Briefly discussthe condition of agricultural sector atthetime of independence.

Page 7 of 8
 and angwor the given questions:
34. Read the following hypothetical text
1990)
of frst sevenfive-year plans (1950-
The performance of Indian economy during the period
of independence, India was an industrially
was satisfactory if not very impressive. On the eve
this period of fhrst seven plans our industries became far more
Backward country, but during
sector. The policy
diversified, with the stress being laid on the public investments in the industrial
of the domestic industries against the foreign producers but we
of import substitution led to protection
strong export surplus. Although public sector
expanded to a large extent but it
failed to promote a
could not bring desired level of improvement in the secondary sector.
of growth of entrepreneurship as
Excessive government regulations prevented the natural trajectory
no modernization on the front of the industrial sector.
there was no competition, no innovation and
Many Public Sector Undertakings (PSUS) incurred huge losses due to operational inefficiencies,
Red-tapism, poor technology and other similar reasons. These PSU's continued to function becauseit
limited resorces.On
was dificult to close a government undertaking even it is a drain on country's
the Agricultural front, due to the measures taken under the
Green Revolution, India more or less
of economicpolicy was
became self-sufficient in the production of food grains, So the needs for reform
in the context of changing global economic scenario
to achieve desired growth in the
widely felt
country
Define import substitution.
1
(ii) Write the meaning of self-suficiency
(iii) Though public sector is very essential forindustries ,
many public sector under
takingsincur huge losses and are a drain on the economy's resources.
Discuss any two reasons behind it. Why was public sector given a leading role in
2+2=4
industrial development during the planning period?

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