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.

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. 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 1,200 crore

Rs 300 crores

Rs 1,500 crore

Rs 900 crores

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

None of these

Churning

Occasionally

Chronic

#3. 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 .

Disinvestment

Indirect taxes

Borrowing

Tax revenue

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

None of these

Liberalization

Privatization

Globalization

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

Buys, sells

Sells, buys

Buys, buys

Sells, sells

#6. 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 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

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

Fresh Deposits with banks become zero.

Money Multiplier becomes zero

Legal Reserve Ratio becomes zero

Total Cash Reserves becomes equal to initial Deposits

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

Both a and b

Neither a nor b

Percentage of total government expenditure

Percentage of National Income

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

AICTE

UGC

None of these

ICMR

#10. High powered money consists of:

Currency held by public and cash reserves with banks

Currency and demand deposits

Currency, cash reserves with banks and demand deposits

Currency and coins held by the public

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

Andhra Pradesh

Jammu and Kashmir

Maharashtra

Gujarat

#12. 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).

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

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

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

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

NRLM - National Rural Livelihoods Mission

SGSY - Swarnjayanti Gram Swarozgar Yojana

PMRY - Pradhan Mantri Rozgar Yojana

REGP - Rural Employment Generation Programme

#14. 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

II, III, I, IV

I, IV, III, II

III, IV, I, II

IV, II, III, I

#15. 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 3,000 crores

Rs 2,000 crores

Rs 14,000 crores

Rs 4,000 crores

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

NABARD

Regional Rural Banks

Self-help groups

Land Development Banks

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

All of these

Fisheries

Livestock farming

Horticulture

#18. Supply of money refers to _____________.

Currency held in the government account

Currency held by the public

Currency held by RBI

Currency held by the public and demand deposits with commercial banks

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

Rs 9,000 crore

Rs 12,000 crore

Rs 750 crore

Rs 6,000 crore

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

1977

1956

1986

1966

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

Capital, capital

Current, current

Current, capital

Capital, current

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

$ 7 billion

$ 10 million

$ 10 billion

$ 20 billion

#23. 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 creates liability of the government.

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

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

Both a and b

Atomic energy generation

Defense aircraft and warships

Cement

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

Industrial sector reforms in India

Land reforms in India

Banking reforms in India

External reforms in India

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

None of these

Income tax

Corporate tax

Goods and Services Tax

#27. Outsourcing is good for India because:

Both a and b

It provides employment to large number of unemployed

It provides excellence in a particular field

Neither a nor b

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

None of the above

Socialist economy

Capitalist economy

Mixed economy

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

Relative poverty

Both a and b

Neither a nor b

Absolute poverty

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

Export of software to France + Debit side of current account

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

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

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

Employment generation in the country

To increase trade surplus

To bring price stability in the economy

To generate greater tax revenue

#32. 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:

All of them

None of them

Introduction of railways in India

Discriminatory tariff policy of the state

#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 Foreign demand for the Indian handicrafts was destroyed by:

Heavy duty on imports and duty-free export

Duty free exports and imports

Heavy duty on imports and exports

Heavy duty on exports and duty-free import

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

3.31 percent

15.7 percent

7.92 percent

0.64 percent

#35. What is the duration of Union Budget?

Five years

Two years

Half-yearly

Annual

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

Purchase dollars in the foreign exchange market

None of the above

Print more currency notes

Sells dollars in the foreign exchange market

#37. 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

The British Government promoted capital goods industries

There was low contribution of industries to GDP

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

First

Fourth

Second

Third

#39. 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 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).

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

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

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

Rs 50,000 crores

Rs 1,25,000 crores

Rs 75,000 crores

Rs 25,000 crores

Finish

Results

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Term 1 Examination Practice Paper – ECONOMICS Class XII

#1. 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:

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

#3. 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 .

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

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

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

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

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

#10. High powered money consists of:

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

#12. 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.

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

#14. 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

#15. 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___________.

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

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

#18. Supply of money refers to _____________.

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

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

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

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

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

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

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

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

#27. Outsourcing is good for India because:

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

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

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

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

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

#35. What is the duration of Union Budget?

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

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

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

#39. 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:

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

Results

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#5. 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.