CLASS XII ECO TEST PAPER 1 BY LPCA

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GENERAL INSTRUCTIONS:
There are a total 60 questions in this paper out of which 50 questions are to be attempted. This paper is divided into three Sections:
a. Section A – Contains 24 questions. Attempt any 20 questions.
b. Section B – Contains 24 questions. Attempt any 20 questions.
c. Section C – Contains 12 questions. Attempt any 10 questions.
All questions carry equal marks.
There is no negative marking.

Email *

Section A – Contains 24 questions. Attempt any 20 questions.

All questions carry equal marks.
There is no negative marking.

Q1: Which of the following is the objective of Government Budget: *

1 point

Provision of private goods

High rate of GDP Growth

Maximisation of profits of Public Enterprises

Increasing Revenue of the government

Q2: Service Trade Includes……………… *

1 point

Factor Income

Non factor Income

Both

NOTA

Q3: The main Assets of banks are *

1 point

Building, Furniture Etc….

Building, Furniture Etc…. + Reserve

Building, Furniture Etc…. + Reserve + loans

All of the above

Q4: In BOP, It is difficult to record all international transactions accurately. Thus, we have a third element of BoP (apart from the current and capital accounts) called ………. *

1 point

Errors

Omissions

Either A or B

Both A and B

Q5: Read the following statements carefully and choose the correct alternative from the followingStatement1: Cut in reverse Repo Rate is like to decrease the demand for goods and services in the economy.Statement 2: Money is a mean and not an end Alternatives: *

1 point

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q6: Other Name for Legal Reserve Ratio is *

1 point

Cash Reserve Ratio

Statutory Liquidity Ratio

Both a and b

Variable Reserve Ratio

Q7. According to Media Reports: (1)“USA has accused china’s Central Bank of Intervention in Foreign Exchange market to reduce Yuan’s rate to promote its exports.”Which exchange system does the above statement refer to? *

1 point

Flexible Exchange Rate System.

Floating exchange rate system.

Fixed Exchange rate system.

Managed Floating rate system.

Q8: Read the following statements carefully and choose the correct alternative from the following: Statement 1: Budget is used as an instrument of economic stability Statement 2: Budget controls the level of aggregate demand alternatives: *

1 point

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q9. Unfavourable………can be met out of Favourable ………. *

1 point

BOT, BOP

BOP , BOT

Visible Item ; Invisible Item

Invisible item , Visible

Q10: Find the odd one out: *

1 point

It maintains a current account for keeping there Cash balances

It accepts receipts and make payments

It act as a supervisor

It also act as a financial advisor

Q11: The decision to develop the Indian economy on socialist lines led to the policy of the government controlling the commanding heights of the economy, as the …….. Five Year plan put it. *

1 point

First

Second

Third

Fifth

Q12: During the colonial period Parts of the then Madras Presidency (comprising areas of the present-day of the following states ……) witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors. Find out the state which doesn’t form part of Madras presidency: *

1 point

Tamil Nadu

Kerala

Karnatka

Punjab

Q13: The benefit of green revolution is taken by *

1 point

Small Farmers

Rich Farmers

Marginal farmers

Both a and b

Q14: calorie-based norm not adequate to identify the poor *

1 point

This mechanism groups allpeople together and does not differentiate between a very poor from other poor

This mechanism groups allpeople together and does not differentiate between a Poor from Non Poor

This mechanism groups allpeople together and does not differentiate between a rich from poor

This mechanism groups allpeople together and does not differentiate between a needy from greedy

Q15. Which of the following industries are reserved for the public sector? *

1 point

Defence Equipment

Atomic energy generation

Cement

Both (a) and (b)

Q16: What was one of the major drawbacks in the Industrial Sector *

1 point

Inefficient functioning of the public sector

Mis utilization of resources.

Under utilization of resources

Nota

Q17: From the following set of statements given in Column I and Column II, select the correct statements: *

1 point

Q18: By May 2019, nearly ……. crore women in India have become members in ……. lakh women SHGs. *

1 point

5 and 56

6 and 54

7 and 53

6 and 56

Q19: Interest on Loans advanced is a …….. *

1 point

Revenue Expenditure

Capital Expenditure

Revenue Receipt

Capital Receipts

Q20: Economist Identify poor on the basis of *

1 point

Occupation.

Composition

Ownership of assets

Both A and C

Both B and C

Q21: M1 = *

1 point

Currency with public + Demand Deposit + Other deposit with RBI

Currency with public + Demand Deposit

Currency with public + Demand Deposit + Reserve Deposit

Both a and c

Q22: Tata Airlines , a division of Tata and Sons , was established in ………inaugurating the aviation sector in Inda: *

1 point

1912

1932

1953

1942

Q23: GATT was established in 1948 with …….. countries as the global trade organization to administer all multilateral trade agreements by providing equal opportunities to all countries in the international market for trading purposes. *

1 point

Q.24. Which of the following are not matched correctly? *

1 point

(i), (ii) and (iv)

(iii) and (iv)

(i) and (ii)

(ii) and (iv)

Section B – Contains 24 questions. Attempt any 20 questions.

All questions carry equal marks.
There is no negative marking.

Q25:Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): In a state of BOP Equilibrium, there is increase in Official reserve with the central BankReason (R ): Foreign Private loans are included in the capital account of the balance of payment. *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q26: If the total deposit created in the economy is 4 times more than that of Initial deposit, the legal reserve ratio is *

1 point

0.25

015

0.20

0.50

Q27:Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): This long-term plan is called ‘perspective plan’.Reason (R ): The five year plans were supposed to provide the basis for the perspective plan. *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q28: Find the Incorrect statement *

1 point

A significant number of women also find employment in the livestock sector.

Performance of the Indian dairy sector over the last four decades has been quite impressive

Gujarat state is held as a success story in the efficient implementation of milk cooperatives

cattle, goats, fowl are the widely held species.

Q29: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): Expenditure on health is an important source of human capital formation.Reason (R ): Expenditure on Health forces the sick labor to abstain from work. *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q30: *

1 point

i, iii, ii, iv

iv, iii, i, ii

iv, iii, ii, i

ii, iv ,i , iii

Q31: Find the odd one Out: *

1 point

Poverty is being sick and not being able to see a doctor.

Poverty is fear for the future

Poverty in not knowing how to read.

NOTA

Q32: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): Empirical evidence to prove that increase in human capital causes economic growth is rather nebulous Reason (R ): Education measured in terms of years of schooling, teacher-pupil ratio and enrollment rates reflect the quality of education *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q33: Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): Land ceiling was another policy to promote equity in the agricultural sector.Reason (R ): This means fixing the maximum size of land which could be owned by an Zamindars. *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q34: Read the following statements – Assertion (A) And Reason (R). Choose one of the correct alternatives given below:Assertion (A): Addressing the problem of poverty through self-employment schemes is the most effective means of poverty alleviation.Reason (R): Self-employment schemes improve the rate of participation and also empower the poor.Alternatives: *

1 point

Both assertion (a) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both assertion (a) and Reason (R) are true and Reason (R) is not correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true

Q35: Read the following statements carefully and choose the correct alternative from the following Statement1: One of the advantages of Sole authority of Note issue with RBI is that it ensures public faith in currency system.Statement 2: When Government incurs deficit in its budget, it borrows from central bank by selling its securities.Alternatives: *

1 point

Both the statements are true.

Both the statements are false.

Statement 1 is true and Statement 2 is false

Statement 2 is true and Statement 1 is false

Q36. During the Colonial Rule, most studies did find that the country’s growth of aggregate real output during the first half of the twentieth century was less than ……… coupled with a meagre ……. growth in per capita output per year. *

1 point

less than 3 percent: half percent

Less than half percent ; 2 percent

less than 2 percent ; half percent

less than 2 percent ; one percent

Q37:Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): Balance of Trade doesn’t record capital account transactions.Reason (R ): Expenditure on real estate purchased by Non – Resident is recorded in debit side of BOP *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true

Q38: Demand Deposits are ……… *

1 point

Fiat Money

Legal Tender

Not a legal tender

Both A and B

Q39: Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below:Assertion (A): Various steps have been taken by the government in developing rural markets Reason (R): The first step was regulation of markets to creates orderly and transparent market conditions with a view to protect the farmers from the malpractices of Sellers and Brokers.Alternatives: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R)is false.

Assertion (A) is false but Reason (R) is true.

Q40: _________ is that branch of agriculture, which is concerned with the Breeding rearing and caring for farm animals. *

1 point

Animal Husbandry

Live stock farming

Either a or b

Both A and B.

Q41: Commercial Banks are owned and Governed by: *

1 point

Government

Private Sector

Either A or B

NOTA

Q42: *

1 point

Chronic poor , Transient , churning poor , very poor

Transient , chronic poor, Non Poor

very poor, poor, non poor

Chronic poor , Transient , churning poor , non poor.

Q43: Mrs khan spend to acquire information relating to the labour market and other markets like education and health. She want to know the level of salaries associated with various types of jobs. She also want to know whether the educational institutions provide the right type of employable skills and at what cost so that she can chose right type of course for her children.This information is necessary to make decisions regarding the following: *

1 point

Investments in human capital

For Improving the standard of living of the acquired human capital stock.

Both A and B

NOTA

Q44: Trade balance shows a deficit of 300 crore. The value of export of invisible item are 500 crores. The value of export of goods is *

1 point

300

500

800

45. Read the following statements: Assertion (A) and Reason (R) Choose one of the correct alternatives given below:Assertion (A): The poverty Alleviation programmes have been found unsatisfactory Reason (R): Huge amount of resources have been allocated for poverty Alleviation Programmes.Alternatives: *

1 point

Both Assertion (A) and Reason (R)are true and Reason (R)is the correct explanation of Assertion (A)

Both Assertion (A) and reason (R)are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R)is false.

Assertion (A) is false but Reason (R) is true.

Q46: :Read the following statements Assertion (A) and reason (R). Choose one of the correct alternatives given below:Assertion (A): Repayment of loans advanced by Indian Government will be reflected as credit as credit item in BOP.Reason (R ): As it leads to inflow of foreign exchange *

1 point

Both A and R were true and R is the correct explanation of A.

Both A and R are true but R is not the correct explanation of A.

A is true but R is false

A is false but R is true.

Q47: Identify the correct statement: *

1 point

Another significant drawback of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation, communications, ports and some other manufacturing undertakings.

Another significant drawback of the new industrial sector was the very limited area of operation of the Private sector. This sector remained confined only to the railways, power generation, communications, ports and some other departmental undertakings.

Another significant drawback of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, transportation, communications, ports and some other departmental undertakings.

Q48: Match the statements given under A with the correct options given under B. *

1 point

i (a)

i (b)

Section C – Contains 12 questions. Attempt any 10 questions.

All questions carry equal marks.
There is no negative marking.

Q49: *

1 point

2,500

1,700

500

700

Q50 Fiscal deficit: *

1 point

2735

735

1935

935

Q51: Non Debt Creating Capital Receipts are : *

1 point

145

120

245

265

Q52: Find the odd one Out *

1 point

Borrowings

Revenue deficit + Capital Deficit C

Revenue Deficit + Capital expenditure – Non debt creating capital receipt

Total Budget Deficit + Borrowing

Q53: Subsidy given by Central Govt to state Government is *

1 point

Capital expenditure for Central Government and Revenue Expenditure for State Government

Capital Receipt for Central Government and Revenue receipt for state Government

Revenue Expenditure for Central Government And Capital Receipt for state Government

Revenue Expenditure for Central Government And Revenue Receipt for state Government

Q54: Although the budget document relates to the receipts and expenditure of the government for a particular financial year, the impact of it will be there in ………. *

1 point

Previous year

Subsequent years

Only Current year

Both A and B

Q55: Read the following case study careful and answer the questions 55-60 on the basis of the same: The economic crisis of 1990-91 was turned by the new government of prime Minister P.V. Narasimha Rao and Finance Minister Dr. Manmohan Singh into an opportunity for introducing far reaching economic reform. Politicians in ruling parties as well as in opposition did not understand much of the economic mess the country had fallen into these politicians, therefore wanted to give time to new Finance Minister to prove his worth. In the early days of the economic crisis Dr. Singh with the full support of the Prime Minister found it relatively easy to get his prescriptions accepted by the Union Cabinet. At Cabinet meetings other politicians kept quiet only to wait and watch the evolving policy measures being formulated by Dr Manmohan singh. The first action taken by Dr Singh towards restoring macroeconomic stability and external confidence was to devalue the Indian rupee in two steps, in 1991 aggregating 18 per cent against Special Drawing Rights. This was ably supported by the Reserve Bank of India through a tighter monetary policy. With economic skill and little political interference India succeeded in overcoming its macro-economic crisis in about two years. This was probably the fastest and least painful recovery under the stabilization package agreed with IMF by any developing country-Charan D. Wadhua, Journal of south Asian Studies, 2000Choose the correct option:Q55. _____________ is known as the prime Architect of economy reform in India. *

1 point

Dr. Manmohan Singh

P.V. Narasimha Rao

R. Venkataraman

None of these

Q56. When India approached World Bank and IMF, it was sanctioned a loan of: *

1 point

$ 8 billion

$ 8 Million

$ 7 Billion

$ 7 Million

Q57. Which of the following was not a condition that Indian economy had to agree to before it was sanctioned the loan? *

1 point

Opening up to foreign investors

Liberalising to ensure private participation

Removal of quantitative restrictions

None of these

Q58. Which of the following is not the outcome of economic reforms? *

1 point

Consumer sovereignty

Multiple rise in growth of industrial sector

India became an emerging economic power

Increase in foreign exchange reserves

Q59: Read the following statements –Assertion (A) and Reason ( R)Assertion (A): Many public sector undertakings incurred huge losses due to operational inefficiencies.Reason (R): Red-tapism was one of the reasons for continuation of such enterprises.Select the correct alternative from the following: Alternatives: *

1 point

Both Assertion(A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion(A).

Both Assertion (A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion (A).

Assertion (A) is true butReason(R)isTrue.

Assertion (A) is false but Reason(R) are is true.

Q60: Read the following statements –Assertion (A) and Reason ( R)Assertion (A): Many of these profitable PSEs were originally formed during the 1950s and 1960s when self-reliance was an important element of public policy.Reason (R): The granting of status resulted in better performance of these companies Select the correct alternative from thefollowing: Alternatives: *

1 point

Both Assertion(A) and Reason(R) are true and Reason (R) is the correct explanation of Assertion(A).

Both Assertion (A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason(R) is false.

Assertion (A) is false but Reason(R) are is true.

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