Economics Sample Paper Class 12 2024-25

In this article, we have brought you a list of Economics sample paper for the CBSE Class 12 Economics Pre-board exam and board exam 2024. Economics Class 12 Important Questions 2024 with Answers provides students with targeted practice on crucial topics, allowing them to consolidate their understanding and assess their exam readiness.

Practising Economics Sample Paper for CBSE Class 12 Economics can help students prepare for sample paper exams in several ways:

• Understand economic principles: Important questions help students analyze economic theories, policies, and real-world applications, which can improve their understanding of economic principles. 
• Improve exam performance: Practising important questions can help students improve their performance in exams. 
• Prepare for similar questions: Students can expect to encounter questions in the sample paper similar in style, difficulty level, and format to those in the important questions. 

Here are some other tips for preparing for the Class 12 Economics Board Exam 2024-25:

• Review the syllabus 
• Practice previous year’s question papers
• Manage time effectively
• Familiarize yourself with the question paper pattern
• Plan how to present your answers
• Seek clarification on doubts
• Prioritize high-weightage topics

              Sample Paper (Pre-Board) – I 2024 -25

ECONOMICS (030) CLASS: XII

Time: 3 Hours                                                               Maximum Marks: 80

GENERAL INSTRUCTIONS:

• This question paper contains two sections:

Section A – Macro Economics

Section B – Indian Economic Development

• This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
• This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
• This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
• This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.

Q.No	SECTION A – MACRO ECONOMICS	Marks
Q.1	The interaction between the concept of the price level and the dynamics of aggregate demand in an economy is interconnected as: a) the price level increases, aggregate demand increases b) the price level increases, aggregate demand decreases c) changes in the price level have no impact on aggregate demand d) the relationship between the price level and aggregate demand is unpredictable	1
Q.2	“The World Bank has been extending loans to Country X on favourable terms for infrastructure, poverty alleviation, and rural development projects for four decades.” Identify the reason for these loans to be listed as external assistance under the capital account of the Balance of Payments. A. The loans have been taken from an entity outside the country. B. The loans aim to improve the standard of living in the country. C. The loans have crossed the three-decade period. D. The loans can be paid off over a longer period.	1
Q.3	The Reserve Bank of India can increase the money supply in the economy by__________ . (Choose the correct alternative) demonetisation of currency buying government bonds increasing the cash reserve ratiopersuading banks to discourage loans	1
Q.4	The influence exerted by international borrowing on the foreign exchange supply within an economy is indicated when it:  a) minimally affects the supply of foreign exchange b) tends to diminish the supply of foreign exchange c) intends to increase the supply of foreign exchange d) confined solely to alterations in the supply of domestic currency	1
Q.5	The total consumption and investment curves are given below: Identify which of the following represents “Autonomous Consumption”. a) OR b) RC c) RY d) RI	1
Q.6	As the Marginal Propensity to Save (MPS) increases, the value of the investment multiplier _____________     . (Choose the correct alternative) increasesdecreasesbecomes zerodoes not change	1
Q.7	Supply of money refers to………………….. (Choose the correct alternative) a. currency held by the public b. currency held by Reserve Bank of India (RBI) c. currency held by the public and demand deposits with commercial banks d. currency held in the government account	1
Q.8	Identify the situation that can be certainly deduced from a “capital and current account equilibrium”? a) The current account deficit is financed by the selling of foreign exchanges. b) There is an inverse relationship between the current and the capital account. c) The capital account has to be equal to the current account to achieve equilibrium. d) The country is running into an economic deficit and requires borrowing from foreign reserves.	1
Q.9	There are two statements given below, marked as Statement (1) and Statement (2). Read the statements and choose the correct option. Statement (1): When aggregate supply is plotted as a 45°line graph, the economy is said to be at equilibrium. Statement (2): The total amount spent on aggregate demand is equal to the total expenditure in the country. 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	1
Q.10		1
Q.11		3

Q.12	When does a Current Account Surplus situation arise? Discuss its significance in an economy. OR Venture capital refers to the funding provided by investors to small or start-up businesses with strong potential for growth. In light of the above statement, how does the process of devaluation of a currency affect Foreign Direct Investment or Portfolio investment?	3
Q.13	In an economy, the initial income was ₹1000 crore which increased by ₹ 2500 crore. Given MPS = 0.3, = ₹500, calculate the investment expenditure at the increased level of income.	4
Q.14	Assuming that there exists a situation of excess demand in an economy leading to an inflationary gap. What is the impact of excess demand in the economyExplain any two monetary measures that can help to control this situation.	4
Q.15	‘During the last few years’ initiatives such as Jan Dhan Yojna, Aadhar-enabled payment systems, e-Wallets, National Financial Switch (NFS) and others have strengthened the government’s resolve to go cashless.’ Source: NCERT Elaborate on how such initiatives may have affected the Indian economy. OR Explain the process of credit creation by commercial banks with the help of a numerical example.	4
Q.16	“Machine purchased by a firm is always a capital good.” Do you agree with the given statement? Give valid reasons for your answer.Suppose the Gross Domestic Product (GDP) of Nation X was ₹ 2,000 crores in 2018-19, whereas the Gross Domestic Product of Nation Y in the same year was ₹ 120,000 crores. If the Gross Domestic Product of Nation X rises to ₹ 4,000 crores in 2019-20 and the Gross Domestic Product of Nation Y rises to ₹ 200,000 crores in 2019-20. Compare the rate of change of GDP of Nations X and Y, taking 2018-19 as base year.	3   3
Q.17	Answer the following questions. (a) “National highway is a private good because it is funded by taxes.” Defend or refute the given statement with valid arguments. (b) How does the government budget ensure economic equality in an economy?
	OR
	(a) In the 2022-23 budget in India, a lot of importance has been given to reforming the education system and all-inclusive welfare. Analyse the value of such an allocation.
	(b) State which category of receipts or expenditures the following are categorised as: i) custom duty ii) government acquisition of land iii) Sale of PSUs
SECTION B – INDIAN ECONOMIC DEVELOPMENT
Q.18	Identify the result of the large export surplus during the colonial period. (Choose the correct alternative) a) domestic markets flooded with raw materials b) an increase in gold and silver reserves c) scarcity of essential commodities d)cheap imported consumer goods	1
Q.19	Arrange the following events in the correct chronological order: (i) Constitution of Karve Committee. (ii) Beginning of First Five Year Plan. (iii) Establishment of Planning Commission.            (vi) Establishment of NITI Aayog. Alternatives: (a) (i), (ii), (iv), (iii)                (b) (ii), (i), (iii), (iv)                      (c) (ii), (iii), (iv), (i)                (d) (iii), (ii), (i), (iv)	1
Q.20	Identify the developmental initiatives oriented by Pakistan during the 1970s and 80s that helped the country in stimulating economic growth. agrarian reformsde-nationalisationimport substitutioninvestment in education and health	1
Q.21	Kavitha, a farmer in rural India, is a recipient of a government scheme named _________ . This scheme helps her set up a bank account and provides insurance, overdraft and other social security benefits.   a) Sansad Adarsh Gram Yojana b) Jan-Dhan Yojana c) Kudumbashree d) NABARD	1
Q.22	Study the following picture and answer the given question: Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of activities may be envisaged under________ as diversification activity.       (Choose the correct alternative to fill up the blank) a) Animal husbandry                               b) Fisheries c) Horticulture                                        d) Poultry	1
Q.23	There are two statements given below, marked as Assertion (A) and Reason (R). Read the statements and choose the correct option. Statement(1): The ratio of employed women in urban areas is generally lower than that of employed women in rural areas. Statement(2): There are a higher number of low-income employment opportunities available in rural areas than in urban areas. 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	1
Q.24	There are two statements given below, marked as Statement (1) and Statement (R). Read the statements and choose the correct option. Statement (1): Both India and China initiated industrial reforms with the creation of agricultural communes. Statement (2): Both countries are primarily agrarian in nature with all sectors depending on the primary one. 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	1
Q.25	United Nations General Assembly has enlisted a list of 17 Sustainable Development Goals (SDGs) to be achieved by 2030. Accordingly, SDG 7 is to “Ensure that everyone has access to enough, trustworthy, sustainable, and modern energy.”              ________does not constitute a step toward achieving SDG 7.   a) CNG b) solar energy c) thermal power c) mini-hydel plants	1
Q.26	Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below. Assertion (A): In 1991, as an immediate measure to resolve the Balance of Payments crisis, the rupee was devalued against foreign currencies. Reason (R): Devaluation of currency was eminent, exchange reserves. 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, but Reason (R) is explanation of Assertion (A). c) Assertion (A) is true, but Reason (R) is false. d) Assertion (A) is false, but Reason (R) is true	1
Q.27	There are two statements given below, marked as Statement (1) and Statement (2). Read the statements and choose the correct option. Statement (1): The contribution of the industrial sector to the GVA in India and Pakistan is much lower than that of China. Statement (2): India and Pakistan are directly moving from agriculture to services. 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	1

Q.28	Define sustainable development.Everyone has a moral obligation to promote sustainable development. Do you agree with the given statement? Justify your answer with a valid argument.					3
Q.29	Why has the industrial sector performed poorly in the reform period?   OR ‘Information technology plays a very significant role in achieving sustainable development and food security’ — comment.					3
30
Q.31	“The world has experienced two primary types of economic systems along with a hybrid one” Elaborate on the given statement. OR Briefly describe why the government had to intervene in the implementation of the Green Revolution, and the various steps it took to protect small farmers.					4
Q.32	Why should migration and social medicine be viewed as investments in human capital? Justify with reasons.					4
Q.33	‘Kudumbashree’ is a woman-oriented community-based poverty reduction programme being implemented in Kerala. In 1995, a thrift and credit society was started as a small savings bank for poor women with the objective to encourage savings. The thrift and credit society mobilised ₹1 crore as thrift savings. These societies have been acclaimed as the largest informal banks in Asia in terms of participation and savings mobilised. Source: www.kudumbashree.com, NCERT Based on this passage, a) Discuss the role of Self-Help Groups (SHGs) in meeting the credit requirements of the poor. b) List some of the drawbacks of such micro-credit programmes. or a) Identify the situation depicted in the given image. Categorize the three main causes of it in the country. List some economic costs of unemployment. b) List some economic costs of unemployment.					6