Term 1 Examination Practice Paper – ECONOMICS Class XII

CBSE Class 12 Economics Term 1 Board Exam sample paper 2021, practice this to score full marks

Table of Contents

CBSE Term-1 Board Exam 2021: The Central Board of Secondary Education has released sample papers for the upcoming class 10 and 12 Term-1 board exam 2021. As per the schedule, the CBSE class 12 Economics board exam 2021 will be held on December 15, 2021.

WhatsApp Channel Join Now

Telegram Channel Join Now

Instagram Channel Follow Us

General Instructions:

Read questions carefully.
Each question has four choices. Select the best answer.
All the questions in both sections are compulsory.

Test Your Knowledge.

Per Question Time : 6 Minutes

CLICK on Start Quiz for Live Test.

QUIZ START

#1. Choose the correct alternative showing chronological order of the following events: 1- World Trade organization, 2- Opening of Suez Canal , 3- State Bank of India 4- PMEGP

IV, II, III, I

II, III, I, IV

I, IV, III, II

III, IV, I, II

#2. ‘Abolition of intermediaries’ and ‘Land Ceiling’ are part of:

External reforms in India

Industrial sector reforms in India

Banking reforms in India

Land reforms in India

#3. ____________ poor are the ones who regularly move in and out of poverty.

Chronic

Occasionally

None of these

Churning

#4. Read the following case study carefully and answer the question carefully 21-22 on the basis of same. It is the year 1936, Ram is making beautiful handmade items for home decoration. But the British government has imposed strict laws due to which Ram is not being able to sell his goods in the domestic or international market. Answer the following questions with reference to this passage: Question is Foreign demand for the Indian handicrafts was destroyed by:

Duty free exports and imports

Heavy duty on imports and exports

Heavy duty on imports and duty-free export

Heavy duty on exports and duty-free import

#5. ___________ refers to poverty of people, in comparison to other people, regions or nations.

Both a and b

Absolute poverty

Relative poverty

Neither a nor b

#6. Outsourcing is good for India because:

Neither a nor b

It provides excellence in a particular field

It provides employment to large number of unemployed

Both a and b

#7. Supply of money refers to _____________.

Currency held by the public and demand deposits with commercial banks

Currency held by the public

Currency held by RBI

Currency held in the government account

#8. The main aim of monetary policy is _________.

To increase trade surplus

To bring price stability in the economy

Employment generation in the country

To generate greater tax revenue

#9. The expenditure by the government on education is expressed as:

Neither a nor b

Both a and b

Percentage of National Income

Percentage of total government expenditure

#10. The scheme of “Micro Finance “is extended through:

NABARD

Self-help groups

Regional Rural Banks

Land Development Banks

#11. If the total deposits created by commercial banks is Rs 10,000 crores and legal reserve requirements is 40%, then number of initial deposits will be___________.

Rs 2,000 crores

Rs 14,000 crores

Rs 3,000 crores

Rs 4,000 crores

#12. The government budget has a revenue deficit. This gets financed by: a) Borrowing, B) Disinvestment, C) Tax revenue, D) Indirect taxes Choose Two Answers Like a and c or b and d .

Borrowing

Tax revenue

Disinvestment

Indirect taxes

#13. If a balance of trade is showing a deficit of Rs 300 crores and value of exports is Rs 1,200 crores, then the value of imports would be:

Rs 1,500 crore

Rs 900 crores

Rs 300 crores

Rs 1,200 crore

#14. Identify the tax whose burden can be shifted:

Corporate tax

None of these

Goods and Services Tax

Income tax

#15. From the set of statements given in Column I and Column II, choose the correct pair of statements:

Investment by Apple phones firm in India + Credit side of current account of Balance of Payments

Remittances to relative staying abroad + Debit side of current account of Balance of Payments

Import of machinery from China + Capital account of Balance of Payments

Export of software to France + Debit side of current account

#16. Which of the following industries are reserved for the public sector?

Defense aircraft and warships

Atomic energy generation

Both a and b

Cement

#17. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Repayment of borrowings is a capital expenditure. Reason(R): Capital expenditure reduces a liability of the government.

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

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

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

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

#18. What was the share of education in total government expenditure in 2014?

15.7 percent

0.64 percent

7.92 percent

3.31 percent

#19. Under Managed Floating Exchange Rate System, if rupee is getting depreciated fast then RBI:

None of the above

Print more currency notes

Purchase dollars in the foreign exchange market

Sells dollars in the foreign exchange market

#20. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion (A): Every year, government fixes a target for disinvestment of public sector Enterprises (PSEs). Reason(R): Disinvestment is an excellent tool for discarding the loss incurring Public Sector Enterprises (PSEs). Alternatives:

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

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

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

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

#21. ‘Import of machinery’ is recorded in ___ account and ‘Borrowings from abroad’ is recorded in the account.

Capital, capital

Current, current

Capital, current

Current, capital

#22. ____________ involves deregulation and reduction of government controls and greater autonomy of private investment, to make economy more competitive.

None of these

Liberalization

Privatization

Globalization

#23. Which economy produces only the consumer goods that can be sold in the domestic or foreign market profitably?

Socialist economy

Mixed economy

Capitalist economy

None of the above

#24. Name the state which is held as a success story in the efficient implementation of milk cooperatives.

Gujarat

Maharashtra

Andhra Pradesh

Jammu and Kashmir

#25. In India, which of the following organization regulate the health sector?

AICTE

UGC

ICMR

None of these

#26. Which of the following statement is false in the context of industrial sector during British rule?

There was decline in handicraft industries

Public sector played significant role

There was low contribution of industries to GDP

The British Government promoted capital goods industries

#27. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Autonomous transactions are independent of the state of BOP account. Reason(R): Autonomous items are also known as above the line items. Alternatives:

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

Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion(A).

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

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

#28. Which of the following is a non- farm area of employment?

Livestock farming

All of these

Fisheries

Horticulture

#29. Fees of the government college is a revenue receipt because:

It neither creates any asset nor reduces any liability of the government.

It increases asset of the government.

It neither creates any liability nor reduces any asset of the government.

It creates liability of the government.

#30. When the government wants to strengthen the rupee, it ___ foreign currency and _ domestic currency.

Buys, sells

Buys, buys

Sells, sells

Sells, buys

#31. Deposit Creation by banks comes to an end when:

Total Cash Reserves becomes equal to initial Deposits

Legal Reserve Ratio becomes zero

Fresh Deposits with banks become zero.

Money Multiplier becomes zero

#32. In which year, India adopted High Yielding Varieties programme for the first time.

1966

1977

1986

1956

#33. Read the following case study carefully and answer the question carefully 21-22 on the basis of same. It is the year 1936, Ram is making beautiful handmade items for home decoration. But the British government has imposed strict laws due to which Ram is not being able to sell his goods in the domestic or international market. Answer the following questions with reference to this passage: Question is Decay of handicrafts was due to:

None of them

All of them

Introduction of railways in India

Discriminatory tariff policy of the state

#34. Which programme has been renamed as Deendayal Antayodaya Yojna?

NRLM - National Rural Livelihoods Mission

PMRY - Pradhan Mantri Rozgar Yojana

REGP - Rural Employment Generation Programme

SGSY - Swarnjayanti Gram Swarozgar Yojana

#35. In a government budget, revenue deficit is Rs 50,000 crores and borrowings are Rs 75,000 crores. The fiscal deficit will be:

Rs 75,000 crores

Rs 1,25,000 crores

Rs 50,000 crores

Rs 25,000 crores

#36. India entered the ______________ stage of Demographic Transition after the year 1920.

First

Third

Fourth

Second

#37. What is the duration of Union Budget?

Five years

Half-yearly

Two years

Annual

#38. How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

$ 10 million

$ 7 billion

$ 10 billion

$ 20 billion

#39. If amount of initial deposits with commercial banks is Rs 3,000 crore and LRR is 25%, then total deposits created will be:

Rs 6,000 crore

Rs 750 crore

Rs 9,000 crore

Rs 12,000 crore

#40. High powered money consists of:

Currency and coins held by the public

Currency held by public and cash reserves with banks

Currency, cash reserves with banks and demand deposits

Currency and demand deposits

Finish

Results

Click Here to Join Our Telegram Channel

Best Deals for Teachers and Students - Know More Shop Now

Term 1 Examination Practice Paper – ECONOMICS Class XII

#1. Choose the correct alternative showing chronological order of the following events: 1- World Trade organization, 2- Opening of Suez Canal , 3- State Bank of India 4- PMEGP

#2. ‘Abolition of intermediaries’ and ‘Land Ceiling’ are part of:

#3. ____________ poor are the ones who regularly move in and out of poverty.

#5. ___________ refers to poverty of people, in comparison to other people, regions or nations.

#6. Outsourcing is good for India because:

#7. Supply of money refers to _____________.

#8. The main aim of monetary policy is _________.

#9. The expenditure by the government on education is expressed as:

#10. The scheme of “Micro Finance “is extended through:

#11. If the total deposits created by commercial banks is Rs 10,000 crores and legal reserve requirements is 40%, then number of initial deposits will be___________.

#12. The government budget has a revenue deficit. This gets financed by: a) Borrowing, B) Disinvestment, C) Tax revenue, D) Indirect taxes Choose Two Answers Like a and c or b and d .

#13. If a balance of trade is showing a deficit of Rs 300 crores and value of exports is Rs 1,200 crores, then the value of imports would be:

#14. Identify the tax whose burden can be shifted:

#15. From the set of statements given in Column I and Column II, choose the correct pair of statements:

#16. Which of the following industries are reserved for the public sector?

#17. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Repayment of borrowings is a capital expenditure. Reason(R): Capital expenditure reduces a liability of the government.

#18. What was the share of education in total government expenditure in 2014?

#19. Under Managed Floating Exchange Rate System, if rupee is getting depreciated fast then RBI:

#21. ‘Import of machinery’ is recorded in ___________ account and ‘Borrowings from abroad’ is recorded in the ________ account.

#22. ____________ involves deregulation and reduction of government controls and greater autonomy of private investment, to make economy more competitive.

#23. Which economy produces only the consumer goods that can be sold in the domestic or foreign market profitably?

#24. Name the state which is held as a success story in the efficient implementation of milk cooperatives.

#25. In India, which of the following organization regulate the health sector?

#26. Which of the following statement is false in the context of industrial sector during British rule?

#27. Read the following statements: Assertion (A) and Reason(R). Choose one of the correct alternatives given below: Assertion(A): Autonomous transactions are independent of the state of BOP account. Reason(R): Autonomous items are also known as above the line items. Alternatives:

#28. Which of the following is a non- farm area of employment?

#29. Fees of the government college is a revenue receipt because:

#30. When the government wants to strengthen the rupee, it _________ foreign currency and _______ domestic currency.

#31. Deposit Creation by banks comes to an end when:

#32. In which year, India adopted High Yielding Varieties programme for the first time.

#34. Which programme has been renamed as Deendayal Antayodaya Yojna?

#35. In a government budget, revenue deficit is Rs 50,000 crores and borrowings are Rs 75,000 crores. The fiscal deficit will be:

#36. India entered the ______________ stage of Demographic Transition after the year 1920.

#37. What is the duration of Union Budget?

#38. How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?

#39. If amount of initial deposits with commercial banks is Rs 3,000 crore and LRR is 25%, then total deposits created will be:

#40. High powered money consists of:

Results

9 thoughts on “Term 1 Examination Practice Paper – ECONOMICS Class XII”

Leave a Comment Cancel reply

Latest News

#21. ‘Import of machinery’ is recorded in ___ account and ‘Borrowings from abroad’ is recorded in the account.

#30. When the government wants to strengthen the rupee, it ___ foreign currency and _ domestic currency.