Subject

Economics

Class

CBSE Class 12

Pre Boards

Practice to excel and get familiar with the paper pattern and the type of questions. Check you answers with answer keys provided.

Sample Papers

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 Multiple Choice QuestionsShort Answer Type

21.

Distinguish between final goods and intermediate goods. Give an example of each.

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22.

Explain the store of value function of money.
Or
State the meaning and components of money supply.

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23.

Explain the basis of classifying taxes into direct and indirect tax. Give examples


Direct tax refers to those taxes which are directly imposed individuals and companies and are paid directly by them to the government. For example, income tax- the tax burden cannot be shifted to any other person, wealth tax, corporate tax etc.

Indirect tax refers to those taxes which are imposed on an individual but are paid by another person either partly or wholly. Hence, the impact and incidence of taxes are on different persons. Examples of indirect taxes are custom duties, excise dutiesetc. Indirect taxes are those taxes in which the tax burden can be shifted to another person. For example, the sales tax where the tax burden is shifted by the seller of the commodity to the buyer. Example: Direct tax- income tax and indirect tax- sales tax

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24.

Explain ‘banker to the government’ function of the central bank.
Or
Explain the role of reverse repo rate in controlling money supply.

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25.

Explain how government budget can be used to influence distribution of income ?

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26.

An economy is in equilibrium. From the following data about an economy calculate autonomous consumption.
(i) Income = 5000
(ii) Marginal propensity to save = 0.2
(iii) Investment expenditure = 800

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27.

Why does the demand for foreign currency fall and supply rises when its price rises ? Explain.

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 Multiple Choice QuestionsLong Answer Type

28.

Explain ‘non-monetary exchanges’ as a limitation of using gross domestic product as an index of welfare of a country.
Or
How will you treat the following while estimating domestic product of a country ? Give reasons for your answer :
(a) Profits earned by branches of country’s bank in other countries
(b) Gifts given by an employer to his employees on independence day
(c) Purchase of goods by foreign tourists

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29.

Calculate (a) net domestic product at factor cost and (b) gross national disposable income :

s. no.   in RS
1 Private final consumption expenditure 8000
2 Government final consumption expenditure 1000
3 exports 70
4 imports 120
5 Consumption of fixed capital 60
6 Gross domestic fixed capital formation 500
7 change in stock 100
8 Factor income to abroad 40
9 Factor income from abroad 90 
10 indirect taxes 700
11 subsidies 50
12 Net current transfers to abroad (-)30
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30.

Assuming that increase in investment is Rs. 1000 crore and marginal propensity to consume is 0.9, explain the working of multiplier.

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