Class 12 Economics Sample Paper

Please refer to the Class 12 Economics Sample Paper below. These CBSE Sample Papers for Class 12 Economics have been prepared based on the latest guidelines and examination patterns issued for the current academic year. We have provided Term 1 and Term 2 sample papers with solutions. You can click on the links below and access the free latest CBSE Sample Papers for Economics for Standard 12. All guess papers for Economics Class 12 have been prepared by expert teachers. You will be able to understand the type of questions which are expected to come in the examinations and get better marks.

CBSE Sample Papers for Class 12 Economics

Term 1 Sample Papers

Class 12 Economics Sample Paper Term 1 with Solutions Set A

Class 12 Economics Sample Paper Term 1 with Solutions Set B

Class 12 Economics Sample Paper Term 1 with Solutions Set C

Term 2 Sample Papers

Class 12 Economics Sample Paper Term 2 with Solutions Set A

Class 12 Economics Sample Paper Term 2 with Solutions Set B

Class 12 Economics Sample Paper Term 2 with Solutions Set C

Class 12 Economics Sample Paper Term 1 with Solutions Set A

Question. Who is not the supplier of money?
a) Central bank
b) Commercial bank
c) Government
d) Households

Question. M1 of money supply does not include-
a) Currency held by the public
b) Net-Time deposits
c) Demand deposits with NABARD
d) Other deposits in RBI

Question. What is the relationship between demand for foreign exchange and exchange rate?
a) Inverse
b) Direct
c) No relationship
d) None of the above

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- A progressive tax is said to be progressive when the rate of tax increases with an increase in income.
Statement 2- the real burden of the tax is more on the poor and less on the rich
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Assertion(A): Export and import of capital goods (machinery) is NOT included in the capital account.
Reason(R): Export and import of all types of goods is recorded as ‘merchandise’ or ‘visible trade’ in the current account of BOP.
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.

Question. Budgetary policy of the government is also known as________.
a) Monetary policy
b) Economic policy
c) Fiscal policy
d) None of the above

Question. Trade Balance is recorded in which of the following component of balance of Payment?
a) Current account
b) Capital account
c) Official reserves account
d) Foreign portfolio

Question. Which of the following is the rate of interest at which the RBI lends money to the commercial banks?
a) Open Market Operations
b) Repo Rate
c) Cash Reserve ratio
d) Bank rate

Question. Which of the following is not the component of capital account of Balance of Payment?
a) NRI deposits
b) Current transfers
c) Borrowing
d) Banking capital

Question. What will be the total demand deposits created when CRR = 10% and initial deposit = Rs.1000?
a) 1000
b) 5000
c) 10000
d) 12000

Question. When was the first five plan started in India?
a) 31st march 1956
b) 31st march 1950
c) 1st April 1951
d) 1st April 1956

Question. When was the first official decennial census conducted in India?
a) 1861
b) 1871
c) 1881
d) 1891

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1-MGNREGA stands for Mahatma Gandhi National Rural Employer Guarantee Act.
Statement 2- It guarantees 100 days of wage-employment in a financial year to urban household.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Expenditure on Health is one of the sources of human capital formation.
Statement 2- It helps to build productive labor force and improve quality of life.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Total fish production accounts for 0.8% of the total GDP in India.
Statement 2- There is a low participation of women in export and internal marketing of fishing.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. From the following given sets of statements in column I and II, choose the correct pair of statements.

Alternatives:
a) A-I
b) B-II
c) C-III
d) D-IV

Question. When was the ‘Operation Flood’ started by National Dairy Development Board?
a) 1950
b) 1960
c) 1970
d) 1980

Question. Which of the following is not one of the causes of poverty?
a) Population Explosion
b) low Agricultural Productivity
c) High literacy rate
d) Inequalities of Income

Question. Which of the following is/are the qualitative instruments of credit control?
1. Cash Reserve Ratio
2. Credit Rationing
3. Open Market Operations
a) Only 1
b) Only 3
c) Both 1 and 3
d) Neither 1 nor 3

Question. Which five-year plan pointed out that “the benefits of economic development must accrue more and more to the relatively less privileged classes of society”?
a) 1st five-year plan
b) 2nd five-year plan
c) 4th five-year plan
d) 5th five-year plan.

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Unilateral transfers are one sided payment, Eg. Gifts, Grants and Remittances.
Statement 2- They are accounted in the capital account of BoP.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Pradhan Mantri Jan-Dhan Yojana is formulated in 2015 which encourages people to open bank accounts.
Statement 2- This scheme intends to transfer all the benefits of government schemes and subsidies to account holders directly.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- GATT was founded in 1995 as the successor organization to the World Trade Organization (WTO).
Statement 2- WTO was established in 1948 with 23 countries as the global trade organization.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- More than half of the India’s foreign trade was restricted to Ceylon.
Statement 2- The opening of the Suez Canal intensified British control over India’s foreign trade.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Assertion(A): Industrial growth has also recorded a slowdown after LPG reforms
Reason(R): This was because of decreasing demand of industrial products due to cheaper imports, inadequate investment in infrastructure.
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.

Question. From the following given sets of statements in column I and II, choose the correct pair of statements.

    A B C D
a) 4 3 1 2
b) 3 1 2 4
c) 1 3 4 2
d) 4 1 3 2

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- Through banks, the government provides partial financial assistance to SHGs which provides the loan for self-employment activities.
Statement 2- Swarna Jayanti Gram Swarozgar Yojana (SGSY) is one such programme.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Assertion(A): Export duties have been removed as part of Trade and Investment Policy reforms. Reason(R): It reduces the competitive position of Indian goods in the international markets.
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.

Question. Assertion(A): Managed floating exchange rate system is a blend of flexible exchange rate system and a fixed exchange rate system.
Reason(R): Under Managed floating exchange rate system, though exchange rate is determined by market forces but central banks intervene to moderate the exchange rate system.
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.

Question. Assertion(A): The capital deficit is more harmful to the country than the revenue deficit.
Reason(R): The Capital deficit shows the maladministration and inefficiency of the government of the country.
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 false 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

Question. 

Figure showing Number of poor (in Millions) in India, 1973-2012,
On the basis of the given diagram, identify the year when the number of poor recorded in Rural India is highest as compared to other time period between 1973-2012.
a) 1993-1994
b) 1999-2000
c) 2004-2005
d) 2009-2010

Question. 

On the basis of the above-mentioned information answer the following question:
What was the impact of the increase in demand of foreign currency in relation with domestic currency?
a) Currency Appreciation
b) Currency revaluation
c) Currency devaluation
d) Currency depreciation

Question. Consider the statements regarding Rural Employment Generation Programme (REGP) and choose the incorrect option.
1. This programme aim to create wage-employment opportunities in rural areas.
2. It was implemented by Khadi and Village Industries Commission.
3. Under this programme, one could get financial assistance in the form of bank loans to set up irrigation, power and transport for agriculture.
a) Only 2
b) Only 1 and 2
c) Only 1 and 3
d) All of the above

Question. When was the Tata Iron and Steel Company (TISCO) incorporated?
a) 1901
b) 1905
c) 1907
d) 1927

Question. Assertion(A): Dividend received on investment is the capital receipt of government.
Reason (R): Capital Receipt either reduces assets or increases liability.
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 false 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.

Question. Assertion(A): In India, the farming community uses the mixed crop-livestock farming system.
Reason(R): Livestock production provides increased stability in income, food security without disrupting other food-producing activities.
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 false 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.

Question. Assertion(A): The railways affected the structure of the Indian economy in two important ways.
Reason(R): It enabled people to undertake long distance travel and break geographical and cultural barriers and fostered commercialization of agriculture.
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 false 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.

Question. Assertion(A): Import of goods and services reflects the demand of foreign currency.
Reason(R): Import of goods and services shows inflow of foreign exchange.
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 false 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.

Question. Consider the following statements regarding Indian economy during reforms.
1. The post-1991 witnessed a rapid growth in GDP on a continual basis for two decades.
2. The growth of agriculture has declined during the reform period.
3. Industrial sector reported an exorbitant growth.
4. The growth of Service sector has drastically declined.
5. This indicates that this growth is mainly driven by growth in Secondary sector.
a) Only 1 and 2 are correct
b) Only 1, 3 and 5 are correct
c) Only 4 and 5 are correct
d) All of the above

Question. Read the following statements carefully and choose the correct alternative from the following:
Statement 1- India was following an inward-looking trade strategy which is commonly called import substitution.
Statement 2- This policy aims at replacing or substituting domestic production with imports.
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Question. Assertion(A): There was the growing Uniformity in the share of workforce in different sectors across the Indian sub-continent.
Reason(R): Parts of the then Madras, Bombay and Bengal presidency witnessed a decline in the dependence of the workforce on the primary sector and vice-versa in Orissa, Rajasthan and Punjab.
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 false 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.

Question. Who was the first person in the pre-independent india to discuss the concept of a poverty line?
a) Shaheen Rafi Khan
b) Damian Killen
c) Dadabhai Naoroji
d) Findlay Shirras

Question. Assertion(A): There is convergence in the measure of human capital but no sign of convergence of per capita real income.
Reason(R): The causality between human capital and economic growth flows in either direction.
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 false 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.

Question. Assertion(A): A good indicator of economic growth is steady increase in Gross domestic product (GDP).
Reason(R): GDP is the market value of all goods and services produced in a country during a year
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.

Question. Assertion(A): Government discourages production of harmful products through heavy taxes and
encourages production of socially useful goods like Khadi by providing subsidies.
Reason(R): Government reallocates resources in accordance with the economic and social priorities of the country.
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

Question. Assertion(A): Rapid expansion of the banking system had a negative effect on rural farm and non-farm output.
Reason(R): Rural banking helped farmers to avail services and credit facilities and loans for meeting their production needs.
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

Question. Goods and Services Tax Act, 2016 which came into effect from July 2017, is expected to:
(Choose the correct alternative)
a) Generate additional revenue for the government
b) Reduce tax evasion
c) Create ’one nation, one tax and one market’
d) All of these

Question. An Indian Real Estate Company receives rent from Google in New York. This transaction would be recorded on ______ side of ______ account.
a) Credit, current
b) Credit, capital
c) Debit, capital
d) Debit, current

Answer is to be given on the basic of following data.

Question. Which of the following exactly defines the ‘trade balance’?
a) It is the difference between the export and import of the country.
b) It is recorded in the current account of Balance of Payment.
c) Both a and b
d) Neither a nor b

Question. What is the trade balance of the above data released by Economic survey 2017-18?
a) +2,80,138
b) +1,12,442
c) -1,12,442
d) -2,80,138

Question. Assertion(A): Export of goods and services are recorded as negative (-) items.
Reason(R): Exports cause flow of foreign exchange into the domestic economy.
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

Question. Consider the following statements regarding current transfers and choose the incorrect option.
1. These are unilateral transfers by residents settled abroad.
2. In BoP accounts, current transfers are treated as an element of ‘invisibles’
3. For example, Gifts, Grants and remittances.
a) Only 1 and 2
b) Only 1 and 3
c) Only 2 and 3
d) None of the above

Question. What is the invisible balance of the above data released by Economic survey 2017-18?
a) 67,455
b) 97,147
c) 55,983
d) 26,291

Question. What is the current account balance of the above data released by Economic survey 2017-18?
a) -1,12,442
b) +97,147
c) -44,987
d) -15,296

Answer is to be given on the basic of following data.

Colonial policies of the British government almost reversed the composition, or structure of output, as well as the composition of exports and imports. Also, the pace of growth was severely hit. No systematic official attempts were ever made of estimating per capita income (indicating per-head availability of goods and services in the economy). However, some individuals made some modest attempts to measure per capita income during the British period. These included VKRV Rao, Dadabhai Naoroji, Findlay Shirras, William Digby and RC Desai. Rao’s study was most comprehensive and systematic. He found that during the first half of the 20th century, while national income showed a modest growth of about 2 per cent, per capita income showed a dismal growth of about 0.5 per cent.

Question. Who was the first to estimate national income under British rule?
a) VKRV Rao
b) Dadabhai Naoroji
c) Findlay Shirras
d) William Digby

Question. Assertion(A): The products of handicraft industries enjoyed a worldwide market.
Reason(R): The imports from India had the reputation of the fine quality of materials used and high standards of craftsmanship.
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

Question. Assertion(A): There was higher yield of cash crops in certain areas of Indian sub-continent during British rule.
Reason(R): The agriculture in British India was highly commercialized.
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

Question. Whose attempts to measure per capita income during the British period was the most comprehensive and systematic?
a) VKRV Rao
b) Dadabhai Naoroji
c) Findlay Shirras
d) William Digby

Question. In the history of demographic transition, which year is regarded as the year of great divide?
a) 1900
b) 1909
c) 1911
d) 1921

Question. What was the growth of national income in the first half of 20th century?
a) 1.5%
b) 2.0%
c) 0.5%
d) 2.5%