CBSE 12 Economics Question paper-2021 Term-2 by Pavan | Practice Test to Test Your Knowledge
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  3. CBSE 12 Economics Question paper-2021 Term-2
CBSE 12 Economics Question paper-2021 Term-2

CBSE 12 Economics Question paper-2021 Term-2

This mock test includes actual CBSE Class 12 Economics board exam questions from the year 2021 Term-2, helping students understand exam trends and practice real paper format

2025-08-12
Pavan Pavan
CBSE Class 12 Economics 2021 Grade 12

Duration

30 min

Questions

30

Marking

Negative

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Questions Preview

What is the difference between Final Goods and Intermediate Goods?

A
Final goods are goods used for further production, and intermediate goods are goods used for consumption.
B
Final goods are used for consumption, and intermediate goods are used for further production.
C
Final goods are not included in GDP, but intermediate goods are.
D
Both are the same in their use and economic function.

What is the capital of France?

A
Berlin
B
Madrid
C
Paris
D
Rome

Calculate the equilibrium level of income given the following: Autonomous Investments = ₹500 crores, Consumption function, C = 100 + 0.80Y

A
₹1,000 crores
B
₹1,250 crores
C
₹1,500 crores
D
₹2,000 crores

Which of the following is an indicator to measure the health status of a country?

A
Life expectancy
B
Government spending
C
Monetary policy
D
Unemployment rate

What is the impact of investment in infrastructure on the economic development of a country?

A
It reduces GDP growth.
B
It boosts productivity and employment.
C
It harms the environment.
D
It has no significant effect.

Which of the following is not included in the estimation of National Income?

A
Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
B
Salaries paid by the French Embassy in New Delhi to the local workers of the housekeeping department.
C
Compensation paid by the Government of India to the victims of floods.
D
Government expenditure on roads and infrastructure.

What does the Women Worker Population Ratio measure?

A
The percentage of women in the total population.
B
The percentage of working women in the working-age population.
C
The number of women employed in agriculture.
D
The number of women in rural areas only.

What is the implication of the bilateral ‘debt-trap’ situation of Pakistan vis-à-vis the Chinese Economy?

A
It strengthens Pakistan’s sovereignty.
B
It enhances Pakistan’s control over its domestic resources.
C
It creates long-term debt and dependency on China.
D
It reduces Pakistan’s reliance on foreign aid.

Which of the following is a non-monetary exchange?

A
Barter trade
B
Investment in shares
C
Wages paid for work
D
Purchase of goods

Which of the following is a monetary policy measure to combat inflation?

A
Reducing the reserve ratio
B
Increasing government spending
C
Lowering interest rates
D
Raising taxes

Which of the following is true regarding the value of output and value added?

A
Value of output includes the value of intermediate goods.
B
Value added is the final value of goods and services produced.
C
Value of output equals the total income of the economy.
D
Value added does not include labor costs.

In the context of GDP estimation, what does 'Nominal GDP' represent?

A
The total value of goods and services produced in current prices.
B
The total value adjusted for inflation.
C
The total income from foreign trade.
D
The total value produced by the public sector.

Which of the following is a characteristic of a ‘mixed economy’?

A
Complete government control over the economy.
B
Private ownership of production alongside government regulation.
C
All industries are nationalized.
D
Economy controlled entirely by market forces.

Which of the following is a primary sector activity?

A
Manufacturing of goods
B
Mining of minerals
C
Retailing of products
D
Banking services

What does GDP per capita measure?

A
Total income of the economy
B
Average income per person in the economy
C
The income from foreign trade
D
The wealth of the richest individuals

What is the primary purpose of the China-Pakistan Economic Corridor (CPEC)?

A
To reduce military tensions between China and Pakistan.
B
To improve trade routes and infrastructure in Pakistan.
C
To make Pakistan self-sufficient in energy production.
D
To strengthen Pakistan's financial autonomy.

What is the ‘Debt-trap diplomacy’ theory in relation to China’s involvement in CPEC?

A
China provides loans with no interest.
B
China lends money with the intention of gaining strategic control over assets.
C
China focuses only on soft infrastructure.
D
China invests primarily in small businesses in Pakistan.

Which of the following best describes the main challenge of CPEC for Pakistan?

A
High inflation rates due to excessive foreign debt.
B
Heavy dependence on foreign aid for funding infrastructure projects.
C
Increasing debt burden and loss of economic sovereignty.
D
Excessive internal migration due to job creation.

Which of the following is not a feature of Pakistan’s ‘debt-trap’ situation?

A
Increasing Chinese influence over Pakistan's policies.
B
Pakistan's reliance on domestic loans for infrastructure.
C
Pakistan owing a significant portion of its debt to China.
D
Pakistan’s strategic assets being used to secure loans.

What is the impact of the China-Pakistan Economic Corridor (CPEC) on Pakistan's infrastructure?

A
It has minimal impact on Pakistan’s infrastructure.
B
It has led to a dramatic improvement in road and power infrastructure.
C
It has only focused on agricultural infrastructure.
D
It has hindered infrastructure development due to mismanagement.

Which of the following is an example of a non-monetary exchange?

A
Barter trade
B
Exchange of goods for money
C
Transfer of money for goods
D
Buying services with credit

What does the term ‘Nominal GDP’ refer to?

A
The total value of goods and services produced, adjusted for inflation.
B
The total value of goods and services produced in current market prices.
C
The value of goods and services produced after tax adjustments.
D
The total value of goods and services produced by the government.

Which of the following is an example of investment in infrastructure contributing to economic development?

A
Reducing interest rates to increase consumer spending.
B
Building new roads, power plants, and transportation systems.
C
Increasing taxes on luxury goods to reduce consumption.
D
Encouraging foreign countries to invest in agriculture.

What is the key feature of a mixed economy?

A
Government owns all industries.
B
Private ownership and public sector regulation coexist.
C
Complete reliance on market forces to regulate the economy.
D
All economic decisions are made by a central planning authority.

Which of the following is not a characteristic of a developing economy?

A
High levels of income inequality
B
Lack of infrastructure
C
Extensive poverty
D
High technological advancement

What is the primary focus of the China-Pakistan Economic Corridor (CPEC)?

A
Military cooperation between China and Pakistan.
B
Improving economic cooperation and infrastructure.
C
Reducing cultural differences between the two countries.
D
Building nuclear reactors for energy production.

Which of the following is true about Pakistan’s foreign debt in relation to China?

A
Pakistan’s foreign debt to China has decreased over the years.
B
China is Pakistan’s largest creditor, contributing to over 27% of its foreign debt.
C
Pakistan owes no foreign debt to China.
D
Pakistan’s debt to China is only related to military aid.

What is the primary cause of the economic challenges faced by Pakistan due to CPEC?

A
Lack of infrastructure development.
B
Increasing debt burden due to loans from China.
C
High unemployment rates due to unskilled labor.
D
Dependence on foreign trade for economic growth.

How has CPEC contributed to Pakistan’s energy sector?

A
By reducing Pakistan’s dependency on renewable energy.
B
By helping Pakistan build additional power plants to alleviate energy shortages.
C
By focusing on solar power and wind energy projects.
D
By encouraging Pakistan to import energy from China.

What is a potential long-term risk of the China-Pakistan Economic Corridor (CPEC) for Pakistan?

A
Overdependence on Chinese loans and increased debt.
B
Loss of political autonomy in trade agreements.
C
Decreasing foreign investments in Pakistan’s private sector.
D
Stagnation in technology development within Pakistan.