CBSE(NCERT) GRADE 12 ECONOMICS 2024 SET4

Read the following statements carefully : Statement 1 : A consumption function describes the relationship between consumption and savings. Statement 2 : Consumption function consists of two components autonomous consumption and induced consumption. In the light of the given statements, choose the correct alternative from the following :

Identify which of the following is not one of the merits of fixed exchange rate system.

Identify which of the following will appear on the debit side in the Capital Account of India

Study the following figure carefully and choose the correct alternative to fill in the blank :

Read the following statements carefully: Statement 1: Economic territory and political frontier of a nation are one and the same thing. Statement 2: American Embassy in India is a part of the economic territory of India. In the light of the given statements, choose the correct alternative from the following:

Read the following statements carefully: Statement 1: Money is a commodity which is generally accepted as a medium of exchange. Statement 2: Money solved the problem of double coincidence of wants. In the light of the given statements, choose the correct alternative from the following:

Suppose in an imaginary economy, autonomous consumption = $500$ crore and marginal propensity to consume = $0.8$. The saving function for the economy would be ___________. (Choose the correct alternative to fill in the blank)

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity. Reason (R): At the break-even level of income, savings are zero. Alternatives:

Identify the incorrect statement with reference to Cash Reserve Ratio (CRR):

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: Assertion (A): The equilibrium level of income is determined, when ex-ante spending and ex-ante output are equal. Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output. Alternatives:

Accommodating transactions are undertaken to maintain stability in _____ . Justify the given statement with valid explanation.

Depreciation of currency may promote exports of a nation. Defend or refute the given statement with valid arguments.

On the basis of the data given below, estimate the value of Gross National Product at Factor Cost ($GNP_{FC}$): S.No. Items Amount (in crore) (i) Wages and Salaries 2,000 (ii) Rent and Interest 700 (iii) Corporate Tax 500 (iv) Undistributed Profit 300 (v) Consumption of Fixed Capital 200 (vi) Dividend 150 (vii) Net factor income from abroad 50

For a hypothetical economy, assume the government increased an infrastructural investment by 10,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.

If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may lead to an unintended accumulation of inventories. Do you agree with the given statement? Give valid reasons in support of your answer.

Reserve Bank of India undertakes the important function of managing the governments banking transactions. Discuss the above stated function performed by the Reserve Bank of India.

Complete the following table. Construct the consumption function at 200 crore level of income. Income (Y) (in crore) | Savings (S) (in crore) | Average Propensity to Consume (APC) | Marginal Propensity to Save (MPS) 0 | 50 | 100 | 1 | 200 | 3/4 | 300 | 2/3 |

(a) (i) Distinguish between direct tax and indirect tax with the help of suitable examples. (ii) Explain the redistribution of income objective of the Government Budget. OR (b) (i) Suppose the following data is presented for an imaginary economy: S.No. Items Amount (in Crore) (i) Tax Receipts 1,200 (ii) Revenue Expenditure 3,700 (iii) Non-Tax Receipts 2,000 (iv) Recovery of Loans 145 (v) Capital Expenditure 500 (vi) Disinvestment 120 (vii) Interest Payments 1,070 Calculate Revenue Deficit and Fiscal Deficit. (ii) Differentiate between public provision and public production.

Distinguish between direct tax and indirect tax with the help of suitable examples.

s foreign trade had various features except ______________. (Choose the correct alternative to fill in the blank)

Explain the redistribution of income objective of the Government Budget.

China was able to control its rapid population growth rate owing to ________________. (Choose the correct alternative to fill in the blank)

China was able to control its rapid population growth rate owing to ________________.

Suppose the following data is presented for an imaginary economy: S.No. Items Amount (in Crore) (i) Tax Receipts 1,200 (ii) Revenue Expenditure 3,700 (iii) Non-Tax Receipts 2,000 (iv) Recovery of Loans 145 (v) Capital Expenditure 500 (vi) Disinvestment 120 (vii) Interest Payments 1,070 Calculate Revenue Deficit and Fiscal Deficit.

Modernization is an important economic planning objective that focuses on _______________.

Differentiate between public provision and public production.

The present day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where _______________.

____________ farming is a system that is helpful in restoring, maintaining and enhancing the ecological balance.

Read the following statements carefully : Statement 1 : India, Pakistan and China have similar physical endowments, but totally different political systems. Statement 2 : Both India and Pakistan laid great emphasis on creating a large private sector. In the light of the given statements, choose the correct alternative from the following :

Identify the sources of Human Capital Formation and choose the correct alternative to fill in the blanks.

(a) Help Groups provide stimulus to socio-economic development. Justify the given statement with valid explanation. OR (b) Government of India has taken various measures to align the agricultural marketing system with the growing production activities in the rural areas. Do you agree with the given statement? Give any two valid reasons in support of your answer.

Interpret the given picture and explain any one strategy to control it from becoming an ecological disaster.

State any two strategies to achieve the objective of sustainable development.

(a) Discuss any two factors that lead to stagnating Indian agriculture sector during British rule. OR (b) Discuss any two liberalization measures pertaining to the tax reforms, introduced by the government, during the economic reform process of 1991.

There exists a positive correlation between human capital formation and Justify the given statement with valid explanation.

On the basis of the data given below, discuss the shift in output and employment sector-wise, in India and China :

(a) (i) Amita is a regular worker in a private firm that employs twelve hi Is she working in the formal/informal sector? Give valid reasons in support of your answer. (ii) State any two sources of data on unemployment in India. (iii) OR (b) (i) The participation rate of people in economic activities in rural areas is more than that in urban areas. Justify the given statement. (ii) Define disguised unemployment. State its implications on output and employment in a country.

Read the following text carefully : Indias industrial policy since independence has been shaped broadly in terms of the Industrial Policy Resolution of 1948. It emphasized on the sole responsibility of the government in the matter of promoting, assisting and regulating the development of industries in the national interest. It envisaged an active and dominant role of public sector. The next Industrial Policy Resolution was placed before the Parliament by the Prime Minister on 30th April, 1956. It suggested that, There is a need for adoption of the socialist pattern of economy as the national objective, along with the need for planned and rapid development. It required that all industries of basic and strategic importance, or in public utility services, should be in the public sector. Other industries which are essential and require investment on a massive scale (which only the State could provide) have also to be in the public sector. Thus, the State has to assume direct responsibility for the future development of industries. This Resolution classifies industries into three categories : The first category given in Schedule A, consists of industries the future development of which will be the exclusive responsibility of the State. In the second category given in Schedule B, are industries which will be progressively State-owned. However, in them, private enterprise will also be expected to participate. The third category comprises all the remaining industries, the further development of which will be left to the initiative and enterprise of the private sector. On the basis of the given text and common understanding, answer the following questions : (i) The Government of India, in the initial years of economic development, emphasized on a greater role of the public sector in the industrial development. Justify the statement, giving reasons in support of your answer. 3 (ii) Outline and discuss the classification of industries into various categories as per Industrial Policy Resolution, 1956. 3

The Government of India, in the initial years of economic development, emphasized on a greater role of the public sector in the industrial development. Justify the statement, giving reasons in support of your answer.

Outline and discuss the classification of industries into various categories as per Industrial Policy Resolution, 1956.