CBSE Class 12 Economics Question Paper 2020 Set C Solved

Read and download CBSE Class 12 Economics Question Paper 2020 Set C Solved designed as per the latest question paper pattern and Class 12 examination guidelines issued by CBSE, NCERT and KVS. The past year Question Papers for Class 12 Economics have been provided with solutions which will help students to assess their performance and find out topics in Economics Class 12 which they need to improve to get better marks in Class 12 exams. After solving these last year papers also refer to solved Sample Papers for Class 12 Economics available on our website to build strong understanding of the subject

Economics Question Paper Class 12

Students can refer to the below Class 12 Economics Question Paper designed to help students understand the pattern of questions that will be asked in Class 12 exams. Please download CBSE Class 12 Economics Question Paper 2020 Set C Solved

Economics Class 12 Question Paper

SECTION A (Macro Economics)
 
1 The value of Marginal Propensity to Save is found to be unitary. Investment multiplier could be: (Choose correct alternative)
Zero B. Infinity C. 10 D. 1
 
2 Central Bank has fixed Legal Reserve Ratio as 10% of the deposits collected by the commercial banks. The deposit multiplier could be -------------- times. (Choose correct alternative)
A. 4 B. 5 C. 6 D. 10
 
3 …………………………………… could lead to an increase in the demand for foreign exchange in the economy. (choose the correct alternative)
A. Foreign Direct Investment.
B. Deficit in Balance of Trade
C. Surplus in Balance of Trade
D. Transfer payments from abroad.
 
4 How is ‘Repo Rate’ different from ‘Bank Rate’?
 
5 Giving reason state whether the following statement is true or false.‘Fund collected by the government through provident fund deposits is stated as revenue receipt in government budget’.
 
6 From the set of statements given in Column I and Column II, choose the correct pair of statement.
 
Column I                                               Column II
 
a. Deficient demand                          (i) Accumulation of inventory in the economy
b. Import of goods from abroad         (ii) Increases aggregate demand in the economy
c. Changes in stock                          (iii) Opening stock minus closing stock
d. Average propensity to save           (iv) Can never be negative.
 
7 What does fiat money mean?
 
8 Name any one measure to correct fiscal deficit in government budget.
OR
How is primary deficit calculated in government budget?
 
9 From the following identify the item that could lead to domestic currency depreciation.
A. Foreign Direct Investment flow into the country.
B. Surplus in balance of payment account
C. Large flow of investment by domestic firms to abroad
D. Flow of current transfers from abroad
 
10 Identify the final good from the following.
A. Electricity used by a trader of garments in his shop
B. Petrol purchased by a house hold for using in their car.
C. Readymade garments purchased by a trader for sale.
D. Bread purchased by a restaurant.
 
11 Why do we include export and exclude import in domestic expenditure
OR
Define GDP deflator. How is Real GDP calculated from nominal GDP? Explain the purpose of calculating constant price GDP.
 
12 How does Central Bank of a country use ‘Bank Rate Policy’ to control credit creation and money supply in an economy?
 
13 By providing services like free primary education, free health facilities, maintenance of law and order etc, which of the two objectives that government expects to perform through its budget? Explain.
 
14 An increase of Rs.100 crore in investment in an economy resulted in a total increase income of Rs400/- crores. Calculate the following.
a. Marginal propensity to consume
b. Change in savings
c. Change in consumption expenditure
d. Value of multiplier.
 
15 Are the concepts of demand for domestic goods and domestic demand for goods same? Explain
OR
What are the components of current account of balance of payment account? Also distinguish
between current account and capital account of balance of payment account.
 
16 Define investment multiplier. How is it related to Marginal Propensity to consume? Explain the process of multiplier.
OR
‘An economy is functioning at equilibrium’. What do you mean by this statement? If the economy is not at equilibrium, what adjustment mechanism will take place to bring back the economy at equilibrium? Explain using diagram.
 
17 Calculate national income by income and expenditure method (figures in rupees crores)
1. Compensation of employees                                         1330
2. Government final consumption expenditure                    380
3. Indirect taxes                                                                  400
4. Gross domestic fixed capital formation                           630
5. Mixed income of self employed                                       1600
6. Rent, interest and profits                                                 500
7. Net addition to stock                                                       100
8. Export of goods and services                                         170
9. Import of goods and services                                         180
10. Private final consumption                                              2900
11. Net factor income from abroad                                     100
12. Subsidies                                                                        30
13. Consumption of fixed capital                                         200
 
SECTION B ( Indian Economic Development)
 
18 ------------------------------------ can be considered as the architect of Indian Five Year Plans.
A. P.C. Mahalanobis
B. Dada Bhai Naoroji
C. V. K. R. V Rao
D. Dr. Manmohan Singh
 
19 Golden Revolution indicates:
A. Increase in the production of Organic farming products
B. Increase in the production of livestock
C. Increase in the production of wheat and rice
D. Increase in the production of horticultural crops
 
20 The concept explaining the three phases of falling death and birth rate associated with economic development is known as -----------------------------------.
A. Infant Mortality Rate
B. Life expectancy at birth
C. Demographic Transition
D. Overall Mortality Rate
 
21 Identify the stabilisation measure from the following.
A. Policy to correct balance of payment deficit
B. Policy of Liberalization
C. Policy of globalization
D. Policy to privatization
 
22 People whose income always lie below poverty line and sometimes may get a little more money are grouped under the category of --------------------- poor.
OR
People whose income regularly moves in and out of the poverty line and occasionally poor are categorized as ------------------poor.
 
23 The campaign initiated by china, which was aimed at industrializing the country on a massive scale was known as: ---------------------------.(Choose the correct alternative)
A. The Great Proletarian Cultural Revolution.
B. The Great Leap Forward
C. The policy of Special Economic Zones
D. The Commune system
 
24 A system whereby all the farmers can pool their milk produced according to different grading and the same is processed and marketed to urban centers through cooperatives is referred as -----------------------------------.
 
25 Which one of the following statement is true in the case of India when we compare China and Pakistan?
A. High degree of urbanization
B. Very high fertility rate
C. Growth due to manufacturing sector
D. High density of population


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CBSE Class 12 Economics Question Paper 2020 Set C Solved

We hope you liked the above provided CBSE Class 12 Economics Question Paper 2020 Set C Solved. To get an understanding of the type of questions which were asked in previous year exams, it is important for Class 12 students to refer to CBSE Class 12 Economics Question Paper 2020 Set C Solved that we have provided above. Students can download all the Question Papers for Class 12 Economics which were issued in the exams so that you can practise them and solve all types of questions which have been asked till now. By doing all CBSE Class 12 Economics Question Paper 2020 Set C Solved PYP (previous year papers) you will understand the regular questions and MCQ questions for Class 12 Economics which are always asked and learn them so that you can get full marks in those questions. You can download CBSE Class 12 Economics Previous Year Question Papers and Class 12 Economics Sample Papers in PDF. You should attempt all the last year question paper for Class 12 and Class 12 Economics MCQ Test in examination conditions at home and then compare their answers with the solutions provided by our teachers.
 

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