CBSE Class 12 Economics 2025 Sample Paper Solved Set 7

SECTION ‘A’

1. Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion(A): At Break-even point, consumption is equal to National
Income. Reason(R): APC falls continuously with an increase in income as the proportion of income spent on consumption keeps on decreasing.
a) Both A and R is true and R is the correct explanation of A
b) Both A and R is correct but R is not the correct explanation of A
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

Answer : b

2. Under Ujjwala Yojana, the Government of India is providing free PG kitchen gas connections to the families living 'below the poverty line'. Identify the objective that the government is trying to fulfil here.
a) Allocation of resources
b) Reducing distribution of income inequalities
c) Economic growth
d) Financial stability

Answer : b

3. In an economy, the value of Net Factor Income from Abroad is Rs. 300 crores and the value of Factor Income to Abroad is Rs. 50 crores, identify the value of Factor Income from Abroad.
a)  Rs. 250 crores
b)  Rs. 350 crores
c)  Rs. 360 crores
d)  Rs. 300 crores

Answer : b

4 Which of the following statement is not true?
a)  Borrowing from the Asian Development bank by the Government is an accommodating transaction.
b)  Loans given to Sri Lanka by the Government are an accommodating transaction.
c)  Buying of machinery from Japan is an accommodating transaction.
d)  Borrowing from the public is an accommodating transaction.

Answer : c

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