CBSE Class 12 Economics Sample Paper 2023
We have penned down CBSE Class 12 Economics Sample Paper 2023 to help the students in every possible with the Class 12 Economics Sample Question Paper 2023 along with the proper understanding of the Subject content as well as the accurate solutions to the Class 12 Economics Sample Question Paper 2023.
We have also provided CBSE Class 12 Economics Sample Paper 2023 PDF along with CBSE Class 12 Economics Sample Paper 2023 Marking Scheme to help the students with the sample paper and the solutions to enhance their learning.
Class 12 Economics Sample Question Paper 2023- Questions with Answers
SAMPLE QUESTION PAPER (2022-23)
ECONOMICS (030)
CLASS 12
TIME: 3 HOURS M.M. – 80
GENERAL INSTRUCTIONS:
1. This question paper contains two sections: Section A – Macro Economics
Section B – Indian Economic Development
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.
Class 12 Economics Sample Paper 2023- SECTION A MACROECONOMICS
1. Read the following statements carefully:
Statement 1: The consumption curve is an upward-sloping straight-line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other. In the light of the given statements, choose the correct alternative from the following:
a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
2 ‘Owing to the Russia-Ukraine crisis, the world is experiencing rising crude prices due to supply-side issues.’
Identify the most likely impact on the Balance of Payment situation of the Indian economy from the following:
a) Production of cars in India will rise.
b) Production and sale of cycles in India will rise.
c) Inflow of US Dollars in India will rise.
d) Outflow of US Dollars from India will rise.
3 …………………..is an institution that accepts deposits for lending purposes.
(Fill up the blank with the correct alternative)
a) Commercial Banks
b) Life Insurance Corporation
c) Reserve Bank of India
d) Government of India
4. Read the following statements carefully:
Statement 1: Export of financial services by India will be recorded on the credit side of the current account.
Statement2: Foreign Direct Investments in India will be recorded on the credit side of the capital account.
In the light of the given statements, choose the correct alternative:
a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
5. Read the following statements carefully:
Statement 1 – Net investment is a stock concept.
Statement 2 – Capital is a flow concept.
In the light of the given statements, choose the correct alternative from the following:
a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
OR
Read the following figure carefully and choose the correct pair from the alternatives given below:
Alternatives:
a) Output, Production
b) Value added, Production
c) Output, Disposition
d) Wealth, Development
6. If in an economy, the value of the investment multiplier is 4 and Autonomous Consumption is
₹ 30 Crore, the relevant consumption function would be :
a) C=30+0.75 Y
b) C=(-)30+0.25Y
c) C=30-0.75Y
d) C=30-0.25Y OR
If the increase in National Income is equal to an increase in consumption, identity the value of Marginal Propensity to Save :
a) Equal to unity b) Greater than one
c) Less than one d) Equal to zero
7. Money supply in India may increase if, (Choose the correct alternative)
1. Reserve Bank of India(RBI) injects more money in circulation
2. the commercial banks expand their credit operation
3. tax rates are reduced by the Central Government
4. Reserve Bank of India increases the Bank Rate
Alternatives:
a) 1,2 and 3 are correct
b) 2,3 and 4 are correct
c) 1,3 and 4 are correct
d) 1,2 and 4 are correct
8. Suppose, the following data is presented, for an imaginary economy: (all figures in ₹ ‘000 Crore)
| Year | Visible Exports | Visible Imports |
| 2010 | 280 | 240 |
| 2020 | 580 | 460 |
Identify, which of the statement about the period 2010 to 2020 is correct.
a) Improvement in the balance of trade
b) Increase in the trade deficit
c) Improvement in balance in invisible items
d) Deterioration of balance of trade
OR
The following information is given for an imaginary country:
| Current Account | Amount (in 000 Crore) |
| Visible Exports | 100 |
| Visible Imports | 150 |
| Invisible Exports | 70 |
| Invisible Imports | 30 |
| Net Current Transfer balance | 15 |
Current Account Amount (in ₹’000 Crore)
Visible Exports 100
Visible Imports 150
Invisible Exports 70
Invisible Imports 30
Net current transfer balance 15
Balance on current account will be ₹ thousand Crore.
a) deficit, 10
b) surplus,5
c) deficit, 5
d) surplus, 10
9. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Ex-post Investments represent planned Investments; whereas ex-ante Investments represent the actual level of investments.
Reason (R): At the equilibrium level, Ex-ante Savings and Ex-ante Investments are always equal.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
10. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Saving curve makes a negative intercept on the vertical axis at zero level of income.
Reason (R): Saving function refers to the functional relationship between saving and income. Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
11. Suppose in a hypothetical economy there are only two Firms A and B, Firm A sold goods for ₹ 2,000 to Firm B and purchased goods for ₹ 1,000. Firm B exported goods for ₹ 2,500 and had domestic sales of ₹ 1,500. Calculate Net Domestic Product at market price, if consumption of fixed capital is ₹ 200.
12. Explain, how the exchange rate is determined under a free market exchange rate system.
OR
Distinguish between autonomous and accommodating transactions in Balance of Payments Accounts.
13. If an economy plans to increase its income by ₹ 2,000 crores and the Marginal Propensity to Consume is 75%. Estimate the increase in investment required to achieve the targeted increase in income.
14. As per the following news published in The Economic Times on 26th December 2021:
‘Reserve Bank of India has sold government securities worth ₹ 8,710 crores in the secondary market, over the last four weeks, to drain out excessive liquidity.
Identify the likely cause and the consequences behind, this type of action plan of the Reserve Bank.
15. Read the following text carefully, discuss briefly the relevant function of the Central Bank, indicated :
Recently, the Reserve Bank of India (RBI) conducted a statutory inspection for supervisory evaluation against a Commercial Bank. The commercial bank was imposed with stringent penalties, owing to deficiencies in regulatory compliance.
As per the Central Bank, the inspection revealed non-compliances vis-à-vis different directions issued by RBI, on the following fronts:
i. ATM Card frauds
ii. Ensuring integrity and quality of data
iii. Loans to small borrowers (adapted/moderated -livemint.com)
OR
‘Reserve Ratio and Credit Creation are inversely related.’ Do you agree with the given statement? Justify your answer with a suitable numerical example.
16. a) Define Gross Domestic Product (GDP) deflator and discuss its importance.
b) State and discuss any two precautions to be considered while estimating national income by Expenditure Method. 3
17. a) Compare the trends depicted in the figures given below:
b) Elaborate on the objective of ‘the allocation of resources in the Government budget.
OR
a) Distinguish between revenue receipts and capital receipts of the government, with suitable examples.
b) Distinguish between direct and indirect taxes, with suitable examples.
Class 12 Economics Sample Paper 2023- SECTION B – INDIAN ECONOMIC DEVELOPMENT
18. Identify, which of the following indicates the adverse impact of British rule in India.
a) Introduction of communication networks in India
b) Change in composition of India’s foreign trade
c) Introduction of the modern administrative system in India
d) Introduction of railways in India
19. …………….committee was set up for the development and promotion of small-scale industries in India.
a) Karve
b) Tapas Majumdar
c) Mahalanobis
d) TRYSEM
Or
The First Industrial Policy Resolution of Independent India was announced in the year…………………. (Fill in the blank with the correct alternative)
a) 1947 b) 1948 c) 1951 d) 1956
20……………………. and are the reasons for the slowdown of the Pakistan economy since independence.
I. political instability
II. over-dependence on remittances from abroad
III. stable performance of the agriculture sector
IV. growth of service sector Alternatives:
a) I and II
b) II and III
c) III and IV
d) I and IV
OR
‘GLF’ with respect to the People’s Republic of China is referred to as (Choose the correct alternative).
a) Giant Leap Forward
b) Great Lead Forum
c) Great Leap Forward
d) Giant Lead Forum
21. Identify which of the following is a source of non-institutional credit in the rural areas of India.
a) NABARD
b) Regional Rural Banks
c) Money Lenders
d) Commercial Banks
22. From the set of the events given in column I and corresponding facts given in Column II, choose the correct pair of statements:
| Country | Exports from India (in ₹ Crore) | Imports to India (in ₹ Crore) | ||||
| 2004-
05 |
2018-19 | The annual rate of growth (%) | 2004-05 | 2018-19 | The annual rate of growth (%) | |
| Pakistan | 2,341 | 14,426 | 3.7 | 427 | 3,476 | 5.1 |
| China | 25,232 | 1,17,289 | 2.6 | 31,892 | 4,92,079 | 10.3 |
Alternatives:
a) i – A
b) ii – B
c) iii – C
d) iv – D
23. Read the following statements carefully.
Statement 1: On-the-job training help to bridge a gap between theoretical concepts and practical experiences.
Statement 2: On-the-job pieces of training update the employees, with the latest changes in their work field.
In the light of the given statements, choose the correct alternative:
a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
24. Read the following statements carefully.
Statement 1: Both India and Pakistan initiated their economic reforms without any external pressures.
Statement 2: Pakistan has successfully implemented the SEZ policy and reaped its benefits using the Export Promotion policy.
In the light of the given statements, choose the correct alternative:
a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
25………………………. is not a cause for environmental degradation.
a) Waste management
b) Deforestation
c) Global warming
d) Guarding green cover
OR
……………….is not the strategy for Sustainable Development. (Choose the correct alternative)
a) Use of biogas
b) Use of solar power
c) Use of thermal power
d) Use of hydel power
26. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Unemployment and poverty are inseparable twins. Reason(R): Unemployment is the root cause of all socio-economic evils. Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
27. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): In the late 1970s, China’s population growth rate sharply declined. Reason(R): China has witnessed an increase in the proportion of elderly people owing to stringent family planning programs.
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.
28. Interpret the given picture on account of current environmental challenges.
Source: https://www.theenvironmentalblog.org/current-environmental-issues
29. Defend or refute the following statement with a valid explanation:
‘Disguised unemployment is a common form of unemployment in rural India’
Or
Critically evaluate the role of the rural banking system in the process of rural development in India.
30. Compare and analyze the following information related to Imports and Exports of the three neighboring nations:
| Country | Exports from India (in ₹ Crore) | Imports to India (in ₹ Crore) | ||||
| 2004-
05 |
2018-19 | The annual rate of growth (%) | 2004-05 | 2018-19 | The annual rate of growth (%) | |
| Pakistan | 2,341 | 14,426 | 3.7 | 427 | 3,476 | 5.1 |
| China | 25,232 | 1,17,289 | 2.6 | 31,892 | 4,92,079 | 10.3 |
31 a) Name any one Maharatana company.
b) ‘Land ceiling promotes equity.’ Support the given statement with a valid explanation.
OR
Discuss briefly, how institutional reforms (land reforms) have played a significant role in transforming Indian agriculture.
32. State whether the following statements are true/false, with valid arguments:
a) Human Capital and Human Development are one and the same thing
b) India has a poor stock of technical manpower.
33. a) Define agricultural marketing.
b) Discuss briefly the importance of micro-credit programs in rural development.
c) Enlist any two problems faced by farmers in the initial years of organic farming.
OR
a) “India has failed to implement the recommendations of Education Commission of 1964 -66.” Give valid arguments in support of the given statement.
b) ‘Casual wage work is the major source of employment in rural India ‘. Defend or refute the given statement with valid reason.
34. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
The Green Revolution in India began in the mid-1960s marking a transition from traditional agriculture in India to high-yielding varieties of seeds and the associated modern agricultural techniques.
The need for the introduction of the Green Revolution in India arose due to a shortage of food grains in the post-independent period. The government in post-independent India wanted to ensure self-dependence in terms of food-grain production. Such efforts coincided with the development of high-yielding varieties of seeds of wheat developed by Dr. Norman Borlung and his associates in Mexico.
These seeds also necessitated changes in farming techniques such as the addition of fertilizers, pesticides, and better irrigation facilities. High-yielding varieties of seeds were first introduced in India in the states of Punjab, Haryana, and parts of western Uttar Pradesh.
In the early period of the green revolution in India, the focus was to acclimatize the new system with the more resource-intensive agricultural methods. The argument for introducing the new crop varieties was to increase agricultural production in terms of higher crop yields.
The seeds introduced during the early period of the green revolution in Punjab were not high-yielding by themselves. These high yields were possible due to the seeds being highly responsive to certain inputs such as irrigation water and fertilizers.
The green revolution in India, thus, necessitated a resource-intensive process whereby, those who could make significant capital investments could benefit, whereas, those others became more marginalized in regions affected by practices of the green revolution in India.
On one hand, the results derived from the green revolution helped farmers to increase their yield and income and on the other hand, it helped the government to procure and preserve more food grains through agencies like the Food Corporation of India. These food grain reserves were helpful in the creation of buffer stocks in India, which helped in situations of adversities.
a) Why was the Green revolution implemented and how did it benefit the farmers?
b) Justify the following statement with a valid explanation:
‘Green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during the time of shortage’.
CBSE Class 12 Economics Sample Paper 2023 PDF
We have shared CBSE Class 12 Economics Sample Paper 2023 PDF to help the students to know the subject content as well as the paper pattern of the CBSE. You can download it from the link provided below-
https://drive.google.com/file/d/1Ozur7D2aXlMJN_3_xJfJctEmGlPyvdVJ/view?usp=sharing
CBSE Class 12 Economics Sample Paper 2023 Marking Scheme
We have also provided the CBSE Class 12 Economics Sample Paper 2023 Marking Scheme to help the board-appearing students with the sample paper as well as the answer key to give the best solutions and help the students to boost their preparation. You can download the CBSE Class 12 Economics Sample Paper 2023 Marking Scheme from the link given below-
https://drive.google.com/file/d/1P0Gsai2hJ3FW61KytZcaCFp5OWwQtKHk/view?usp=sharing
Conclusion
We provide you with CBSE Class 12 Economics Sample Paper 2023 to help the students in every possible with the Class 12 Economics Sample Question Paper 2023 along with the accurate solutions to the Class 12 Economics Sample Question Paper 2023.
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