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.

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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

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QUIZ START

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

Corporate tax

None of these

Income tax

Goods and Services Tax

#2. What is the duration of Union Budget?

Five years

Two years

Annual

Half-yearly

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

Second

Fourth

Third

First

#4. 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

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

Horticulture

Fisheries

Livestock farming

All of these

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

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

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

Export of software to France + Debit side of current account

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

#7. 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:

Discriminatory tariff policy of the state

None of them

All of them

Introduction of railways in India

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

Neither a nor b

Percentage of total government expenditure

Percentage of National Income

Both a and b

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

None of these

AICTE

ICMR

UGC

#10. 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 the correct explanation of Assertion(A).

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

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

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

#11. 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 duty-free export

Heavy duty on exports and duty-free import

Heavy duty on imports and exports

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

Defense aircraft and warships

Cement

Both a and b

Atomic energy generation

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

Sells, sells

Sells, buys

Buys, buys

Buys, sells

#14. 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.

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

Globalization

None of these

Liberalization

Privatization

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

Neither a nor b

Absolute poverty

Relative poverty

Both a and b

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

Rs 750 crore

Rs 9,000 crore

Rs 6,000 crore

Rs 12,000 crore

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

NABARD

Self-help groups

Regional Rural Banks

Land Development Banks

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

$ 10 million

$ 20 billion

$ 7 billion

$ 10 billion

#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

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

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).

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

Current, current

Capital, current

Current, capital

Capital, capital

#22. 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:

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

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).

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

#23. 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 .

Tax revenue

Indirect taxes

Borrowing

Disinvestment

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

There was low contribution of industries to GDP

Public sector played significant role

There was decline in handicraft industries

The British Government promoted capital goods industries

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

Socialist economy

None of the above

Mixed economy

Capitalist economy

#26. 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 50,000 crores

Rs 25,000 crores

Rs 1,25,000 crores

#27. 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

III, IV, I, II

I, IV, III, II

#28. 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 4,000 crores

Rs 3,000 crores

Rs 14,000 crores

Rs 2,000 crores

#29. Outsourcing is good for India because:

It provides excellence in a particular field

It provides employment to large number of unemployed

Both a and b

Neither a nor b

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

Fresh Deposits with banks become zero.

Total Cash Reserves becomes equal to initial Deposits

Legal Reserve Ratio becomes zero

Money Multiplier becomes zero

#31. 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 300 crores

Rs 1,200 crore

Rs 900 crores

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

To bring price stability in the economy

Employment generation in the country

To increase trade surplus

To generate greater tax revenue

#33. High powered money consists of:

Currency and demand deposits

Currency held by public and cash reserves with banks

Currency and coins held by the public

Currency, cash reserves with banks and demand deposits

#34. Supply of money refers to _____________.

Currency held in the government account

Currency held by the public

Currency held by the public and demand deposits with commercial banks

Currency held by RBI

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

PMRY - Pradhan Mantri Rozgar Yojana

NRLM - National Rural Livelihoods Mission

REGP - Rural Employment Generation Programme

SGSY - Swarnjayanti Gram Swarozgar Yojana

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

0.64 percent

3.31 percent

7.92 percent

15.7 percent

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

Occasionally

None of these

Chronic

Churning

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

1986

1966

1956

1977

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

Maharashtra

Andhra Pradesh

Jammu and Kashmir

Gujarat

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

Industrial sector reforms in India

External reforms in India

Banking reforms in India

Land reforms in India

Finish

Results

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Term 1 Examination Practice Paper – ECONOMICS Class XII

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

#2. What is the duration of Union Budget?

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

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

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

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

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

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

#10. 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.

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

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

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

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

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

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

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

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

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

#22. 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:

#23. 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 .

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

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

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

#27. 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

#28. 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___________.

#29. Outsourcing is good for India because:

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

#31. 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:

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

#33. High powered money consists of:

#34. Supply of money refers to _____________.

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

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

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

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

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

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

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

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