CBSE 12 Economics Question Paper-2020 Set-1 by Pavan | Practice Test to Test Your Knowledge
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  2. Practice Tests
  3. CBSE 12 Economics Question Paper-2020 Set-1
CBSE 12 Economics Question Paper-2020 Set-1

CBSE 12 Economics Question Paper-2020 Set-1

This mock test includes actual CBSE Class 12 Economics board exam questions from the year 2020 Set-1, helping students understand exam trends and practice real paper format

2025-08-08
Pavan Pavan
CBSE Class 12 Economics 2020 Grade 12

Duration

30 min

Questions

28

Marking

Negative

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Questions Preview

In which year was the First Industrial Policy Resolution of Independent India announced?

A
1947
B
1948
C
1951
D
1956

State any one outcome of the implementation of Economic Reforms in India in 1991.

A
Increased Industrialization
B
Improved Foreign Exchange Reserves
C
Increased Unemployment
D
Decline in GDP

What is the main aim of the ‘Great Leap Forward’ in China?

A
To ensure rapid increase in the secondary sector
B
To ensure rapid increase in the primary sector
C
To improve the tertiary sector
D
To ensure rapid increase in the tertiary sector

During India’s first seven five-year plans, the Government of India adopted which policy to protect domestic industries?

A
Liberalization Policy
B
Protectionist Policy
C
Import Substitution Policy
D
Export Promotion Policy

Who was the predecessor organization to the World Trade Organization (WTO)?

A
International Bank for Reconstruction and Development (IBRD)
B
International Monetary Fund (IMF)
C
Reserve Bank of India (RBI)
D
General Agreement on Tariffs and Trade (GATT)

What is the main objective of India’s foreign trade policy after the implementation of the 1991 Economic Reforms?

A
To promote self-reliance
B
To increase imports
C
To promote exports
D
To restrict foreign investments

India is not a member of which of the following regional/global economic groupings?

A
European Union
B
BRICS
C
G-20
D
SAARC

Which year did Pakistan introduce its economic reforms?

A
1974
B
1976
C
1978
D
1988

What was the main aim of the ‘White Revolution’ in India?

A
To increase the production of rice
B
To increase milk production
C
To improve crop yields
D
To promote textile industries

State whether the following statement is true or false: ‘Government Budget is an important monetary policy instrument.’

A
True
B
False

Disinvestment is a __ (capital/revenue) receipt of the government.

A
Capital
B
Revenue

What is the most important source of demand for foreign currency?

A
Imports of goods
B
Exports of goods
C
Foreign investments
D
Loans from international institutions

Effective demand is defined as __.

A
Total demand in the economy
B
Demand for goods and services
C
The sum of planned consumption and investment
D
Total market demand

According to Keynesian Economics, the value of Average Propensity to Consume can never be __.

A
Zero
B
Unity
C
More than one
D
Less than one

State whether the following statement is true or false: ‘Expected obsolescence is included in depreciation.’

A
True
B
False

In order to control the money supply in the economy, the Central Bank may __.

A
Buy securities in the open market
B
Sell securities in the open market
C
Reduce cash reserve ratio
D
Reduce repo rate

State the meaning of ‘Trade Deficit’.

A
When exports exceed imports
B
When imports exceed exports
C
When the balance of payments is in surplus
D
When foreign exchange reserves are low

According to the theory of Keynesian Economics, the value of Average Propensity to Consume can never be __.

A
Zero
B
Unity
C
More than one
D
Less than one

State whether the following statement is true or false: ‘As per Keynesian theory in an economy, full employment can never exist.’

A
True
B
False

Define ‘Trade Surplus’.

A
When exports exceed imports
B
When imports exceed exports
C
When there is a positive balance of payments
D
When domestic savings are higher than investments

Which year did India adopt its first Industrial Policy Resolution?

A
1947
B
1948
C
1951
D
1956

What does the Central Bank do to control the money supply in an economy?

A
Buy securities in the open market
B
Sell securities in the open market
C
Reduce cash reserve ratio
D
Reduce repo rate

What is the most important source of demand for foreign currency?

A
Imports of goods
B
Exports of goods
C
Foreign investments
D
Loans from international institutions

Which statement defines ‘Effective demand’?

A
Total demand for all goods and services
B
The sum of planned consumption and investment
C
The total market demand in an economy
D
The demand for foreign goods in the domestic market

What is the formula to estimate Fiscal Deficit?

A
Total Government Expenditure - Government Revenue
B
Total Government Expenditure - Tax Revenue
C
Tax Revenue - Government Debt
D
Government Borrowings + Tax Revenue

What is the definition of ‘Trade Deficit’?

A
When exports exceed imports
B
When imports exceed exports
C
When there is a positive balance of payments
D
When domestic savings are higher than investments

State whether the following statement is true or false: ‘Expected obsolescence is included in depreciation.’

A
True
B
False

Which year did Pakistan introduce its economic reforms?

A
1974
B
1976
C
1978
D
1988