CBSE 12 Economics Question Paper-2025 Set-1 by Pavan | Practice Test to Test Your Knowledge
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  2. Practice Tests
  3. CBSE 12 Economics Question Paper-2025 Set-1
CBSE 12 Economics Question Paper-2025 Set-1

CBSE 12 Economics Question Paper-2025 Set-1

This mock test includes actual CBSE Class 12 Economics board exam questions from the year 2025 set-1, helping students understand exam trends and practice real paper format

2025-08-19
Pavan Pavan
CBSE Class 12 Economics 2025 Grade 12

Duration

20 min

Questions

20

Marking

Negative

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Questions Preview

Read the following statement-Assertion (A) and Reason (R) and choose the correct alternative. Assertion (A): Real GDP is a good indicator of the welfare of the people. Reason (R): It accounts for the change in prices of goods and services produced in an economy.

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

Which of the following is an example of 'Final Goods'?

A
Sugar used in a restaurant
B
A car purchased by a taxi driver
C
Flour used by a baker
D
Tyres purchased by a car manufacturer

Read the following statements and choose the correct alternative. Statement 1: Public goods are those goods which are consumed by the public collectively. Statement 2: Public goods are not excludable and non-rivalrous.

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

The value of Average Propensity to Consume (APC) can be greater than '1'.

A
False
B
True
C
Can be true or false
D
Insufficient information

Which of the following functions is performed by a 'Central Bank'?

A
Accepts deposits from the public.
B
Performs the function of 'Lender of Last Resort'.
C
Lends money to the public.
D
Accepts deposits from the commercial banks.

In a hypothetical economy, suppose the government expenditure is ₹ 100 crore and the tax revenue is ₹ 120 crore. The Budget has a:

A
Fiscal deficit of ₹ 20 crore
B
Primary deficit of ₹ 20 crore
C
Budget deficit of ₹ 20 crore
D
Budget surplus of ₹ 20 crore

Which of the following is a component of 'Non-Tax Revenue'?

A
Corporation Tax
B
Income Tax
C
Capital Receipts
D
Fees and Fines

Which of the following is an example of 'Capital Expenditure'?

A
Old Age Pension
B
Grants to State Governments
C
Interest Payments
D
Purchase of shares of foreign company

Choose the correct alternative from the following that correctly represents 'Balance of Trade'.

A
Visible Exports - Visible Imports
B
Exports - Imports
C
Exports of Goods and Services - Imports of Goods and Services
D
Visible Exports + Visible Imports

Read the following statements and choose the correct alternative: Statement 1: Managed floating exchange rate system is also known as a 'dirty floating system'. Statement 2: Managed floating exchange rate system is also known as 'hybrid system'.

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

Which of the following would be considered an intermediate good?

A
A computer purchased by a software engineer for personal use
B
A television set bought by a family
C
A car purchased by a consumer for daily commute
D
Flour purchased by a bakery to make bread

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

A
Accepting deposits from the public
B
Controlling credit
C
Acting as a banker to the government
D
Issuing currency

The value of Marginal Propensity to Consume (MPC) is always:

A
Between 0 and 1
B
Less than 0
C
Greater than 1
D
Equal to 1

A government budget is said to be in deficit when:

A
Government revenue is equal to government expenditure
B
Government tax revenue is greater than total expenditure
C
Government expenditure is greater than government receipts
D
Government expenditure is less than tax revenue

Which of the following is an example of 'Capital Receipt' for the government?

A
Income Tax
B
Corporation Tax
C
Fees and Fines
D
Borrowings

Which of the following is a component of the 'Current Account' in the Balance of Payments?

A
Export and import of goods
B
Foreign Direct Investment
C
Loans from foreign countries
D
Portfolio Investment

What is the primary difference between a 'Fixed' and a 'Floating' exchange rate system?

A
A fixed system allows for more fluctuation than a floating system.
B
A fixed system is managed by the government, while a floating system is determined by the central bank.
C
A fixed system is determined by market forces, while a floating system is set by the central bank.
D
A fixed system is set by the government or central bank, while a floating system is determined by market forces.

The purchase of a new school building by the government is classified as:

A
Capital Expenditure
B
Revenue Expenditure
C
Transfer Payment
D
Non-Plan Expenditure

Which of the following is a characteristic of a public good?

A
Rivalrous in consumption
B
Non-rivalrous and non-excludable
C
Excludable
D
Easily provided by the private sector

Two statements are given below. Read them carefully and select the correct option. Statement 1: Real GDP is a good indicator of economic welfare. Statement 2: It accounts for the effects of inflation by using constant prices.

A
Statement 1 is false, but Statement 2 is true.
B
Both statements are true, but Statement 2 is not the correct explanation of Statement 1.
C
Statement 1 is true, but Statement 2 is false.
D
Both statements are true and Statement 2 is the correct explanation of Statement 1.