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Board Paper of Class 12-Commerce 2020 Economics Delhi(Set 1) - Solutions

General Instructions:
Read the following instructions very carefully and strictly follow them:
(i) Question paper comprises two Sections – A and B. All questions are compulsory.
(ii) Question number 1 10 and 18 – 27 are very short-answer questions carrying 1 mark each. They are required to be answered in one word or one sentence each.
(iii) Question number 11 – 12 and 28 – 29 are short-answer questions carrying 3 marks each. Answer to them should not normally exceed 60 – 80 words each.
(iv) Question number 13 – 15 and 30 – 32 are also short-answer questions carrying 4 marks each. Answers to them should not normally exceed 80 – 100 words each.
(v) Question number 16 – 17 and 33 – 34 are long answer questions carrying 6 marks each. Answers to them should not normally exceed 100 – 150 words each.
(vi) Answer should be brief and to the point also the above word limit be adhered to as far as possible.
(vii) There is no overall choice. However, an internal choice has been provided in 2 questions of one mark, 2 questions of three marks, 2 questions of four marks and 2 questions of six marks. Only one of the choices in such questions have to be attempted.
(viii) In addition to this, separate instructions are given with each section and question, wherever necessary.

  • Question 1
    To reduce credit availability in the economy, the Centrla Bank may ________.
    (Choose the correct alternative)
    (a) buy securities in the open market.
    (b) sell securities in the open market.
    (c) reduce reserve ratio.
    (d) reduce repo rate.

  • Question 2
    _________ deficit includes interest payment by the Government on the past loans.
    (Fill up the blanks with correct answer.

  • Question 3
    State, whether the following statement is true or false:
    'Inventory is a stock variable.' VIEW SOLUTION

  • Question 4
    Which of the following is not a 'factor payment?
    (Choose the correct alternative)
    (a) Free uniform to defence personnel.
    (b) Salaries to the Members of Parliament.
    (c) Rent paid to the owner of a building.
    (d) Scholarship given to the students. VIEW SOLUTION

  • Question 5
    In case of an underemployment equilibrium, which of the following alternative is not true?
    (Choose the correct alternative)
    (a) Aggregate demand is equal to Aggregate supply.
    (b) There exist excess production capacity in the economy.
    (c) Resources are not fully and efficiently utilised.
    (d) Resources are fully and efficiently utilised. VIEW SOLUTION

  • Question 6
    State, whether the following statement is true or false : ‘All financial Institutions are banking institutions.' VIEW SOLUTION

  • Question 7
    Combined factor income, which can't be separated into various factor income components is known as ____________.
    (Fill up the blanks with correct answer).

  • Question 8
    If Marginal Propensity to Save (MPS) is 0.25 and initial change in investment is ₹ 250 crores, then the final change in income would be ___________.
    (Choose the correct alternative)
    (a) ₹ 1,000 crores
    (b) ₹ 1,200 crores
    (c) ₹ 500 crores
    (d) ₹ 3,500 crores VIEW SOLUTION

  • Question 10
    Net Domestic Fixed Capital Formation + Change in Stock = ________.
    (Fill up the blank with correct answer)


    When Nominal Gross Domestic Product (GDP) is 840 crores and price Index is 120, then the Real Gross Domestic Product (GDP) will be __________.
    (Fill up the blank with correct alternative)
    (a) 700 crores
    (b) 900 crores
    (c) 800 crores
    (d) 500 crores VIEW SOLUTION

  • Question 11
    'Subsidies to the producers should be treated as transfer payments.' Defend or refute the given statement with valid reason.


    Explain circular flow of income in a two sector economy. VIEW SOLUTION

  • Question 12
    Calculate Gross Value Added at Market Price:
    S. No. Particulars  (in lakh)
    (i)  Depreciation 20
    (ii)  Domestic Sales 200
    (iii)  Change in Stocks (–)10
    (iv)  Exports 10
    (v)  Single use producer goods 120

  • Question 13
    'Taxation is an effective tool to reduce the inequalities of income.' Justify the given statement with valid reasons. VIEW SOLUTION

  • Question 14
    In the given figure, what does the gap 'KT' represent ? State any two fiscal measures to correct the situation.


    Explain how the 'Reverse Repo Rate' helps in correcting excess demand. VIEW SOLUTION

  • Question 15
    Discuss the function of Central bank as 'Banker, Agent and Advisor' to the Government. VIEW SOLUTION

  • Question 16
    (a) Differentiate between the concepts of 'demand of domestic goods and services' and 'domestic demand for goods and services'.
    (b) Distinguish between 'Current Account Deficit' and 'Current Account Surplus'.

  • Question 17
    Answer the following questions based on the data given below :
    (i) Planned Investments = ₹ 100 crore.
    (ii) C = 50 + 0.50 Y
    (a) Determine the equilibrium level of income.
    (b) Calculate the value of Savings at equilibrium level of National Income.
    (c) Calculate the value of Investment Multiplier.


    Discuss the working of the adjustment mechanism in the following situations :
    (a) If Aggregate demand is greater than Aggregate supply.
    (b) If Ex-Ante Investments are less than Ex-Ante Savings. VIEW SOLUTION

  • Question 18
    Policy of 'Import Substitution' was targeted to protect ______ industries.
    (Fill up the blank with correct answer)

  • Question 19
    Which of the following is not used as a strategy for Sustainable Development ?
    (Choose the correct alternative)
    (a) Use of bio-gas
    (b) Use of solar power
    (c) Use of thermal power
    (d) Use of hydel power 1 VIEW SOLUTION

  • Question 20
    Maternal Mortality Rate is high in ________________ (China/Pakistan).
    (Fill up the blank with correct alternative)

  • Question 21
    State the meaning of 'Marketed Surplus'.


    State the meaning of 'Subsidy'. VIEW SOLUTION

  • Question 22
    State whether the following statement is true or false :
    "As per the Human Development Report, 2018, India was ranked at 180th position." VIEW SOLUTION

  • Question 23
    If a construction site Manager hires two workers on daily wages basis, such a situation is covered under ______ (formal/informal) sector.
    (Fill up the blank with correct alternative)

  • Question 24
    Which of the following countries initiated its process of Economic Reforms in the year 1991.
    (Choose the correct alternative)
    (a) Pakistan
    (b) India
    (c) Russia
    (d) China VIEW SOLUTION

  • Question 25
    Greater proportion of women workers are found in (urban/rural) areas as a component of Indian work force.
    (Choose the correct alternative)

  • Question 26
    State whether the following statement is true or false :
    "GATT was established in 1923 with 48 member countries." VIEW SOLUTION

  • Question 27
    'GLF' with respect to the People's Republic of China referred to as ________.
    (Choose the correct alternative).
    (a) Giant Leap Forward
    (b) Great Lead Forum
    (c) Great Leap Forward
    (d) Giant Lead Forum VIEW SOLUTION

  • Question 28
    Discuss briefly the concept of 'Informalisation of workforce' in India.


    State any three challenges facing rural development in India. VIEW SOLUTION

  • Question 29
    Compare and analyse the given data of India & China, with valid reasons.
    Country Annual Growth rate of population (2015) Gender Ratio
    (Per thousand males)
    India 1.2% 929
    China 0.5% 941

    Source: World Development Indicators, 2015. VIEW SOLUTION

  • Question 30
    Discuss briefly any two major steps taken by the Government of India on 'Financial Sector' front under the Economic Reforms of 1991. VIEW SOLUTION

  • Question 31
    Discuss briefly any two salient features of India's pre-independence occupational structure.


    Discuss briefly, the rationale behind "equity with growth” as planning objectives for Indian Economy. VIEW SOLUTION

  • Question 32
    State and discuss any two problems faced by power sector in India. VIEW SOLUTION

  • Question 33
    (a) Explain, how does 'Investment in Human Capital' contributes to growth of an economy.
    (b) State the meaning of 'Agricultural Marking'. VIEW SOLUTION

  • Question 34
    Critically examine the results of Poverty Alleviation Programmes implemented in India since Independence.


    (a) “Ujjawala Yojana has been a game changer for rural India.” State any three conventional fuels being targeted under the Ujjawala Yojana.
    (b). “Economists believe that India should spend atleast 6% of its GDP on Education for achieving desired results."
    Justify the statement with valid reasons. VIEW SOLUTION
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