CBSE 2026 Class 12 Economics Question Paper with Solutions PDF - Set 2

Identify which of the following is a `Stock' variable:

• (A) Monthly Salary of a teacher
• (B) Distance between Delhi and Mumbai
• (C) Annual Interest on savings
• (D) Quantity of wheat produced in a year

If \(MPC = 0.5\), what will be the value of the Investment Multiplier (\(K\))?

• (A) 1
• (B) 2
• (C) 4
• (D) 5

Assertion (A): \(APC\) can be greater than 1.

Reason (R): At very low levels of income, consumption can exceed income.

• (A) Both A and R are true and R is the correct explanation.
• (B) Both A and R are true but R is not the explanation.
• (C) A is true, R is false.
• (D) A is false, R is true.

Supply of money refers to:

• (A) Stock of money with the government.
• (B) Stock of money with the banking system.
• (C) Stock of money with the public at a point in time.
• (D) Total gold reserves in the country.

Purchase of a car by a household is an example of:

• (A) Capital formation
• (B) Intermediate consumption
• (C) Final consumption
• (D) Inventory investment

Which of the following is NOT a function of the Central Bank?

• (A) Issue of currency
• (B) Banker to the Government
• (C) Accepting deposits from the general public
• (D) Custodian of foreign exchange

When the exchange rate of domestic currency rises in a managed floating system, it is called:

• (A) Devaluation
• (B) Depreciation
• (C) Appreciation
• (D) Revaluation

``Unilateral Transfers'' are recorded in which account of BOP?

• (A) Capital Account
• (B) Current Account
• (C) Errors and Omissions
• (D) None of these

If the Legal Reserve Ratio (\(LRR\)) is 20%, the Money Multiplier will be:

• (A) 2
• (B) 5
• (C) 10
• (D) 20

Identify the correct statement:

• (A) Revenue deficit includes capital receipts.
• (B) Fiscal deficit is the difference between total expenditure and total receipts excluding borrowings.
• (C) Primary deficit includes interest payments.
• (D) Tax is a non-debt creating capital receipt.

Calculate `Compensation of Employees' (COE) from the following data :

Explain the `Store of Value' function of money.

Distinguish between `Involuntary Unemployment' and `Voluntary Unemployment'.

Distinguish between `Revenue Receipts' and `Capital Receipts' in a Government Budget.

Explain the concept of `Deflationary Gap' with the help of a diagram.

Explain the `Banker to the Government' function of the Central Bank.

Explain the process of `Credit Creation' by Commercial Banks with a numerical example.

In which year was the first Five-Year Plan started in India?

• (A) 1948
• (B) 1950
• (C) 1951
• (D) 1956

The architect of Indian Planning was:

• (A) Jawaharlal Nehru
• (B) P.C. Mahalanobis
• (C) V.K.R.V. Rao
• (D) Manmohan Singh

When were the economic reforms (New Economic Policy) introduced in India?

• (A) 1985
• (B) 1991
• (C) 1999
• (D) 2001

`Great Leap Forward' (GLF) campaign in China was initiated in 1958 to:

• (A) Modernize agriculture
• (B) Industrialize the country on a massive scale
• (C) Promote foreign trade
• (D) Control population

NABARD was established in the year:

• (A) 1969
• (B) 1975
• (C) 1982
• (D) 1991

Special Economic Zones (SEZs) were established in China to attract:

• (A) Rural workers
• (B) Foreign Direct Investment (FDI)
• (C) Agricultural technology
• (D) Political support

Observe the given image of the `Biogas (Gobar Gas) Plant' and identify its benefit:

• (A) It increases the use of chemical fertilizers.
• (B) It is a clean, non-conventional source of energy.
• (C) It causes high air pollution.
• (D) It is an expensive urban energy source.

`Golden Revolution' is associated with:

• (A) Milk
• (B) Horticulture and Honey
• (C) Cereals
• (D) Fisheries

Pakistan's economic reforms were initiated in the year:

• (A) 1978
• (B) 1988
• (C) 1991
• (D) 1995

Define `Sustainable Development'.

Mention any three challenges facing the power sector in India.

Discuss the role of `Self-Help Groups' (SHGs) in rural credit.

Explain the `Great Proletarian Cultural Revolution' of China.

Analyze the following chart regarding `Distribution of Employment by Gender':

Discuss `Organic Farming' as a sustainable alternative.

Compare the development experiences of India and China on the basis of GDP growth and Sectoral contribution.

Evaluate the impact of `LPG Reforms' (1991) on the Indian Economy.