CBSE 12 Economics Question Paper-2022 Set-5 by Pavan | Practice Test to Test Your Knowledge
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  3. CBSE 12 Economics Question Paper-2022 Set-5
CBSE 12 Economics Question Paper-2022 Set-5

CBSE 12 Economics Question Paper-2022 Set-5

This mock test includes actual CBSE Class 12 Economics board exam questions from the year 2022 Set-5, helping students understand exam trends and practice real paper format

2025-08-14
Pavan Pavan
CBSE Class 12 Economics 2022 Grade 12

Duration

25 min

Questions

23

Marking

Negative

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Questions Preview

State any two characteristics of the service sector in India.

A
Low employment and low contribution to GDP.
B
High employment and high contribution to GDP.
C
High employment and low contribution to GDP.
D
Low employment and high contribution to GDP.

Distinguish between 'Formal sector' and 'Informal sector' employment.

A
Formal sector employment is regulated and provides social security benefits, while informal sector employment is unregulated and lacks such benefits.
B
Informal sector employment is regulated and provides social security benefits, while formal sector employment is unregulated and lacks such benefits.
C
Both formal and informal sectors provide social security benefits and are well-regulated.
D
Both formal and informal sectors are unregulated and do not provide social security benefits.

Define the term 'Human Capital Formation'.

A
The process of increasing the amount of physical capital in an economy.
B
The process of acquiring and increasing the number of people in a population.
C
The process of acquiring and increasing a person's skills, knowledge, and abilities through education, training, and healthcare.
D
The process of creating new goods and services in an economy.

State and discuss any one factor responsible for the emergence of the global economic crisis of 2008.

A
The massive investment in global infrastructure projects.
B
The uncontrolled growth of subprime mortgage lending and the subsequent collapse of the housing market in the United States.
C
The strict regulations imposed on the financial markets.
D
The increase in global trade and protectionist policies.

Explain with valid arguments: 'In India, the women's participation rate is lower in urban areas than in the rural areas.'

A
The statement is incorrect, as women in urban areas have better access to education and employment.
B
The statement is correct, as many women in urban areas pursue higher education or are not actively seeking employment due to social norms or family responsibilities, which are not captured in participation rates.
C
The statement is correct, because there are no employment opportunities for women in urban areas.
D
The statement is incorrect, as all women in urban areas are employed in formal sector jobs.

Do you agree with the given statement? Explain: 'Infrastructure contributes directly to the economic development of a country.'

A
No, infrastructure only has an indirect impact on a country's economic development by improving social services.
B
Yes, infrastructure provides a strong foundation for economic activity, improving productivity and quality of life, which directly contributes to economic development.
C
No, a country's economic development is solely dependent on its labor force and natural resources.
D
Yes, but only social infrastructure like schools and hospitals, not economic infrastructure like roads and power.

Distinguish between 'Gross Domestic Product at Market Price' and 'Net Domestic Product at Market Price'.

A
GDP at Market Price includes depreciation, while NDP at Market Price excludes it.
B
NDP at Market Price includes depreciation, while GDP at Market Price excludes it.
C
GDP at Market Price is calculated at factor cost, while NDP at Market Price is calculated at market price.
D
GDP at Market Price and NDP at Market Price are the same.

From the following data, calculate the value of 'Depreciation' for a hypothetical economy: (a) Net National Product at Factor Cost (NNPFC) = ₹ 1,500 crore (b) Net Domestic Product at Factor Cost (NDPFC) = ₹ 1,300 crore (c) Net Indirect Taxes = ₹ 150 crore (d) Net Factor Income from Abroad = ₹ 100 crore

A
₹ 150 crore
B
₹ 100 crore
C
₹ 200 crore
D
₹ 250 crore

Based on the following schedule, what is the value of Marginal Propensity to Save (MPS) at the income level of ₹ 150 crore?

A
0.4
B
0.6
C
0.2
D
0.8

Based on the following schedule, what is the value of Autonomous Consumption?

A
₹ 10 crore
B
₹ 20 crore
C
₹ 30 crore
D
₹ 40 crore

When does Net Factor Income from Abroad (NFIA) show Negative Value?

A
When factor income paid to the rest of the world is greater than factor income received from the rest of the world.
B
When factor income received from the rest of the world is greater than factor income paid to the rest of the world.
C
When factor income received from the rest of the world equals factor income paid to the rest of the world.
D
When the domestic income is greater than the national income.

State the meaning of retained earning.

A
The portion of profits that a company distributes to its shareholders as dividends.
B
The portion of a company's profits that are held back for future investment or to pay off debt.
C
The total revenue of a company before deducting any expenses.
D
The total amount of a company's sales in a fiscal year.

In an economy, 75% of an increase in income is spent on consumption. Investment has increased by ₹ 1,000 crore. Based on the given information, calculate the total increase in income.

A
₹ 4,000 crore
B
₹ 3,000 crore
C
₹ 1,000 crore
D
₹ 5,000 crore

What is the concept of 'investment multiplier' in the Keynesian theory?

A
The ratio of the change in investment to the change in income.
B
The multiple by which a change in investment increases the national income.
C
The effect of a change in taxes on consumption.
D
The relationship between saving and investment.

Which of the following is an example of an expansionary fiscal policy?

A
Increasing taxes to reduce aggregate demand.
B
Decreasing government spending to control inflation.
C
Increasing government spending and decreasing taxes to boost aggregate demand.
D
The central bank selling government securities in the open market.

What is the 'paradox of thrift' in macroeconomics?

A
An increase in savings leads to an increase in national income.
B
Increased savings by individuals may lead to a decrease in aggregate demand, national income, and overall savings.
C
An increase in investment leads to a decrease in national income.
D
Government spending is always equal to private savings.

State a key difference between the development strategies of India and China post-independence.

A
China relied on a mixed economy model, while India adopted a more state-led approach.
B
India focused on a free market system from the beginning, while China followed a socialist path.
C
India's development was characterized by a democratic, mixed economy, while China adopted a command economy with significant state control, later transitioning to market-oriented reforms.
D
Both countries adopted a similar development path with a focus on heavy industry.

How does investment in health and education contribute to 'human capital formation'?

A
It decreases the productivity of the workforce by creating more job-seeking individuals.
B
It improves the skills, knowledge, and health of the workforce, leading to higher productivity and economic growth.
C
It leads to a reduction in the overall population, which is beneficial for the economy.
D
It is a form of expenditure that does not provide any economic return.

What is the formula to calculate the 'investment multiplier' if the Marginal Propensity to Consume (MPC) is given?

A
1 / (1 - MPC)
B
1 / MPC
C
MPC / (1 - MPC)
D
1 - MPC

Which of the following is a quantitative tool of monetary policy used by the central bank?

A
Moral suasion.
B
Selective credit control.
C
Open Market Operations (OMO).
D
Margin requirements.

Define the 'GDP Deflator' and explain its use.

A
It is an index of the price of consumer goods and services, used to measure inflation.
B
It measures the change in the price level of all new, domestically produced, final goods and services in an economy, used to convert Nominal GDP to Real GDP.
C
It is a measure of the total value of imported goods and services.
D
It is an index of the stock market performance.

State any two measures to promote rural development in India.

A
Increasing taxes on agricultural income and reducing investment in rural infrastructure.
B
Improving rural education and health services, and providing access to credit for farmers.
C
Promoting large-scale industries and neglecting small-scale enterprises.
D
Encouraging migration from rural to urban areas to reduce population pressure.

What does a negative value of Net Factor Income from Abroad (NFIA) indicate?

A
The national income is greater than the domestic income.
B
Factor income received from abroad is greater than factor income paid to abroad.
C
Factor income paid to abroad is greater than factor income received from abroad.
D
The economy has no international transactions.