CBSE 12 Economics Question Paper-2023 Set-5 by Pavan | Practice Test to Test Your Knowledge
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  3. CBSE 12 Economics Question Paper-2023 Set-5
CBSE 12 Economics Question Paper-2023 Set-5

CBSE 12 Economics Question Paper-2023 Set-5

This mock test includes actual CBSE Class 12 Economics board exam questions from the year 2023 Set-5, helping students understand exam trends and practice real paper format

2025-08-17
Pavan Pavan
CBSE Class 12 Economics 2023 Grade 12

Duration

24 min

Questions

23

Marking

Negative

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Questions Preview

In the light of given statement, identify the function of money. 'Money is an asset which can be stored for use in future.'

A
A measure of value
B
A standard of deferred payment
C
A store of value
D
A medium of Exchange

Considering the depreciation of Indian Currency (₹) in the international market, the Reserve Bank of India (RBI) has decided to purchase Indian currency (₹) in the open market. This represents ____ exchange rate system.

A
fixed
B
flexible
C
managed floating
D
manipulated

Read the following statements carefully: Statement 1: In a two-sector economy, consumption expenditure and investment expenditure are the two components of Aggregate Demand. Statement 2: The Aggregate Demand curve is always a positively sloped curve from the origin. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

A 'deficit' in Balance of Payments implies excess of _ over _. (Choose the correct alternative)

A
Current Account Payments over Current Account Receipts
B
Capital Account Payments over Capital Account Receipts
C
Autonomous Payments over Autonomous Receipts
D
Accommodating Payments over Accommodating Receipts

Read the following statements carefully: Statement 1: The government can influence the flow of income and expenditure through its fiscal policy. Statement 2: The monetary policy of the government is a demand-side policy. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

____ is the main component of money supply M₁.

A
Time deposits
B
Demand deposits
C
Inter-bank deposits
D
Post office savings

Read the following statements carefully: Statement 1: Net Domestic Product at Factor Cost is the sum of Net Domestic Product at Market Price and Net Indirect Taxes. Statement 2: Net National Product at Market Price is equal to Gross National Product at Market Price less Depreciation. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

Based on the given figure, identify the value of Marginal Propensity to Consume.

A
0.5
B
0.8
C
0.9
D
1.0

Which of the following is an example of an involuntary unemployed person? (Choose the correct alternative)

A
A person who is not willing to work at the prevailing wage rate.
B
A person who is willing to work at the prevailing wage rate but does not get work.
C
A person who is studying full-time and is not looking for work.
D
A person who is working part-time.

Read the following statements carefully: Statement 1: Green revolution enabled the government to procure sufficient food grains to build a buffer stock. Statement 2: Green revolution led to an increase in the income inequalities of the farmers. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

The major reason for the decline in the handicrafts industry during the British rule was:

A
Decline of Indian princely states
B
Competition from machine-made goods
C
Introduction of railways
D
Rise of the service sector

Read the following statements carefully: Statement 1: The 'Great Leap Forward' campaign of the People's Republic of China aimed at modernizing its economy. Statement 2: The 'Great Proletarian Cultural Revolution' of the People's Republic of China aimed at industrialization. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

Pakistan has a better performance than India in case of ____. (Choose the correct alternative to fill up the blank)

A
Life expectancy at birth
B
Human Development Index
C
Poverty Ratio
D
GDP per capita

Read the following statements carefully: Statement 1: The 'Great Leap Forward' campaign of the People's Republic of China aimed at modernizing its economy. Statement 2: The 'Great Proletarian Cultural Revolution' of the People's Republic of China aimed at industrialization. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

Pakistan has a better performance than India in case of ____. (Choose the correct alternative to fill up the blank)

A
Life expectancy at birth
B
Human Development Index
C
Poverty Ratio
D
GDP per capita

Which of the following is an example of an involuntary unemployed person? (Choose the correct alternative)

A
A person who is not willing to work at the prevailing wage rate.
B
A person who is willing to work at the prevailing wage rate but does not get work.
C
A person who is studying full-time and is not looking for work.
D
A person who is working part-time.

Read the following statements carefully: Statement 1: Net Domestic Product at Factor Cost is the sum of Net Domestic Product at Market Price and Net Indirect Taxes. Statement 2: Net National Product at Market Price is equal to Gross National Product at Market Price less Depreciation. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

Based on the given figure, identify the value of Marginal Propensity to Consume.

A
0.5
B
0.8
C
0.9
D
1.0

Read the following statements carefully: Statement 1: Green revolution enabled the government to procure sufficient food grains to build a buffer stock. Statement 2: Green revolution led to an increase in the income inequalities of the farmers. In the light of the given statements, choose the correct alternative from the following:

A
Statement 1 is true and Statement 2 is false.
B
Statement 1 is false and Statement 2 is true.
C
Both Statements 1 and 2 are true.
D
Both Statements 1 and 2 are false.

The major reason for the decline in the handicrafts industry during the British rule was:

A
Decline of Indian princely states
B
Competition from machine-made goods
C
Introduction of railways
D
Rise of the service sector

The planning commission of India was set up in ____. (Choose the correct alternative to fill up the blank)

A
1947
B
1950
C
1951
D
2015

Micro-finance is the provision of ____ services to the needy. (Choose the correct alternative to fill up the blank)

A
banking
B
financial
C
social
D
medical

India, Pakistan, and China have similar strategies for their developmental path. Which of the following is an example of a similar strategy?

A
Reliance on a mixed economy
B
Introduction of economic reforms
C
Focus on heavy industries
D
Focus on agriculture