CBSE Class 12 Economics Question Paper 2005 (Set 58/1/1)

CBSE CLASS XII Questions

• 1.

  In an economy, when __________ is insufficient to achieve the level of output corresponding to the full employment, the difference is termed a deflationary gap. 
   

  • ex-ante Aggregate Demand
    
  • ex-post Aggregate Demand
    
  • ex-ante Aggregate Supply
    
  • ex-post Aggregate Supply
    
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• 2.

  In an economy, exclusion of _______ may lead to under estimation of the value of Gross Domestic Product (GDP). 
   

  • Barter Transactions
    
  • Services provided by family members
    
  • Illegal activities
    
  • Depreciation of Assets
    
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• 3.

  "Under a study, examining the spending habits of a hypothetical economy, it was observed that even households with zero income managed to consume basic necessities. As the income of people increased, their consumption also increased, but not as rapidly as income."
  Based on the given text and common understanding, answer the following questions: (i) Identify and elaborate the type of consumption indicated in the first para of the above text. (ii) Explain, the reason behind the positive slope of Aggregate Demand Curve.

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• 4.

  Read the following statements carefully:
  Statement 1: Under the flexible exchange rate system, a deficit or surplus in the Balance of Payments is automatically corrected.
  Statement 2: Under the flexible exchange rate system, there is always a possibility of over/under valuation of currency.
  In the light of the above given statements, choose the correct option from the following:

  • Statement 1 is true and Statement 2 is false.
    
  • Statement 1 is false and Statement 2 is true.
    
  • Both Statements 1 and 2 are true.
    
  • Both Statements 1 and 2 are false.
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• 5.

  "Under the provisions stated in Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India."
  In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.

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• 6.

  Read the following statements carefully:
  Statement 1: During the British rule in India, the export surplus was utilised to import invisible items from Britain.
  Statement 2: Indians paid for the expenses incurred by an office set up by the colonial government in Britain. In the light of above statements, choose the correct option from the following:

  • Statement 1 is true and statement 2 is false.
    
  • Statement 1 is false and statement 2 is true.
    
  • Both statements 1 and 2 are true.
    
  • Both statements 1 and 2 are false.
    
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