Dav collegiate school Lacchipur
Term 1 exam (Session 2025-26)
Subject :- Economics Time :-3hours
Class :-12th Max marks:-80
Section -A (macro economics )
Objective type questions (each carry one mark) .
1.Assertion (A): Gross Domestic Product (GDP) does not include the value of intermediate
goods.
Reason (R): Including intermediate goods in GDP will lead to double counting.
Options:
A. Both A and R are true, and R is the correct explanation of A
B. Both A and R are true, but R is not the correct explanation of A
C. A is true, R is false
D. A is false, R is true
2. Which of the following is included in the estimation of National Income?
A. Sale of old car. B. Purchase of shares
C. Commission earned by a broker
D. Transfer payments
3. Net Factor Income from Abroad is added to:
A. Domestic Income to get National Income
B. Net Indirect Taxes to get National Income
C. Personal Income to get Private Income
D. GDP to get Personal Income
4. Which of the following is a flow concept?
A. Wealth
B. Capital
C. Income
D. Land
5.Which of the following is a qualitative method of credit control by the Central Bank?
A. Bank Rate
B. Cash Reserve Ratio
C. Open Market Operations
D. Margin Requirements
6.Demand deposits are:
A. Fixed deposits
B. Deposits which can be withdrawn on demand
C. Deposits with lock-in period
D. Loans provided to the public
7.Capital expenditure includes:
A. Salaries of employees
B. Interest payments
C. Grants to states
D. Expenditure on building highways
8.Balance of Trade refers to:
A. Import and export of services
B. Import and export of goods
C. Net capital inflow
D. Remittances from abroad
9.When Marginal Propensity to Consume (MPC) is 0.8, the value of multiplier is:
A. 2
B. 4
C. 5
D. 8
10.If Aggregate Demand exceeds Aggregate Supply, there will be:
A. Excess demand
B. Deficient demand
C. Full employment
D. Price stability
Short answer type questions (each carry 3marks)
Q11 Describe the economic value of the distinction between gross investment and net
investment.
Q12 “India’s GDP is expected to expand 7.5%in 2019-20:world bank.”
Does the given statement mean that welfare of people of india will increase at the same
rate ? Comment with reason .
Or
Does increase in domestic income always lead to increase in national income ?if not , give
an illustration in support of your answer .Also ,write two suggestion to accelerate the growth
of domestic income .
Long answer type questions (each carry 4marks)
Q13 Do you agree with the view that the excess of money supply hinders the process of
economic growth ? Give reasons
Q14 State any four main functions of central bank ?
Q15 what are the causes of Deficient Aggregate demand
Or
Government has raised its expenditure on free services like education and health to the poor
.explain the economic value it reflects .
Very long answer type questions (each carry 6marks)
Q16 “India is taking huge leaps in the index of ease of doing business,as a result many
MNCs are shifting their production base to india.” In the light of the above
statement ,comment upon the flow of foreign exchange and its likely impact on the indian
economy .
Q17 Define the problem of double counting in the estimation of nation income .Discuss two
approaches to correct the problem of double counting.
Or
Define effective demand. Discuss how effective demand can be restored if ex-ante saving is
less than ex-ante investment.
Section -B (Indian economy )
Objective type questions
18.Which sector contributed the most to India's GDP on the eve of independence?
a) Agriculture
b) Industry
c) Services
d) Manufacturing
19. What was the major cause of India’s agricultural stagnation during British rule?
a) Lack of technology
b) Commercialisation of agriculture
c) Absence of irrigation
d) High land revenue system
Which of the following was the main objective of the First Five-Year Plan?
a) Industrial development
b) Self-reliance
c) Agriculture and irrigation
d) Global trade expansion
The Industrial Policy Resolution of 1956 emphasized:
a) Liberalisation
b) Privatisation
c) Socialistic pattern of society
d) Capitalist economy
Which of the following sectors was given priority in the Second Five-Year Plan?
a) Agriculture
b) Heavy industries
c) Service sector
d) Transport
Which of the following was the main objective of the First Five-Year Plan?
a) Industrial development
b) Self-reliance
c) Agriculture and irrigation
d) Global trade expansion
The Industrial Policy Resolution of 1956 emphasized:
a) Liberalisation
b) Privatisation
c) Socialistic pattern of society
d) Capitalist economy
Which of the following sectors was given priority in the Second Five-Year Plan?
a) Agriculture
b) Heavy industries
c) Service sector
d) Transport
20.Which of the following was the main objective of the First Five-Year Plan?
a) Industrial development
b) Self-reliance
c) Agriculture and irrigation
d) Global trade expansion
21.The Industrial Policy Resolution of 1956 emphasized:
a) Liberalisation
b) Privatisation
c) Socialistic pattern of society
d) Capitalist economy
22.Which of the following sectors was given priority in the Second Five-Year Plan?
a) Agriculture
b) Heavy industries
c) Service sector
d) Transport
Instructions: Choose the correct option:
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true, but R is false.
d) A is false, but R is true.
23.Assertion (A): India's foreign trade during colonial rule was beneficial to Britain.
Reason (R): India was a supplier of raw materials and a consumer of finished goods for
Britain.
24.Assertion (A): The public sector was given more importance in early planning years.
Reason (R): It was believed the private sector alone could not bring economic growth
25.In which year was the New Economic Policy (NEP) introduced in India?
a) 1981
b) 1985
c) 1991
d) 1995
26.Globalisation refers to:
a) Increasing domestic trade
b) Reducing imports
c) Integration of the domestic economy with the world economy
d) Increasing subsidies
27.Privatisation involves:
a) Increasing public sector control
b) Ownership shift from private to public
c) Ownership shift from public to private
d) None of these
Short answer type questions (each carry 3marks )
Q 28 what was the state of agriculture sector of the indian economy on the eve of
independence ?
Q29 state three main features of indian economy at the time of independence .
Or
Indicate the volume and direction of trade at the time of independence .
Q30 Do you find the concept market forces in contradiction with the concept of
comprehensive planning in india ?write your opinion with a logical reasoning.
Q31Does modernisation as a planning objective create contradiction in the light of
employment generation ?explain .
Q32 How far would you rely on technology as a means to increase productivity in
agriculture ?
Or
How has the shift from inward looking strategy to outward looking strategy impacted india’s
exports in the post NEP era ?
Q33 How are bilateral trade aggrements different from multilateral trade aggrements ?who
facilitates these aggreements ?
Q34 It is said new economic policy is liberal .Do you agree ?Give arguments in support of
your answer.
Or
What is meant by globalisation of the economy ?state the measures adopted by the
government to promote globalisation.
