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Economics Official Board Paper 2021-2022 ISC (Commerce) Class 12 Question Paper Solution

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Economics [Official Board Paper]
Marks: 40 CISCE
ISC (Commerce)
ISC (Arts)

Academic Year: 2021-2022
Date & Time: 17th May 2022, 2:00 pm
Duration: 1h30m
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SECTION A - 8 MARKS
[1]1. (i)

RBI has adopted four measures of money supply. In this, M3 comprises:

M1 + Saving deposits of post office.

M1 + Net time deposits with banks.

M1 + Total deposits with post office saving.

Cash + Demand deposits + other deposits.

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[1]1. (ii)

If at present \$1 = ₹ 95 and later $1 = ₹ 80, it is a case of ______.

appreciation of currency.

devaluation of currency.

depreciation of currency.

supply of currency.

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[1]1. (iii)

The Central Bank provides, direct or indirect, financial assistance to the Commercial bank when the latter is facing severe liquidity problem. Hence, Central Bank ______.

has a monopoly of note issue.

acts as banker to the government.

acts as controller of credit.

acts as lender of the last resort.

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[1]1. (iv)

Which one of the following is NOT an example of leakage in the circular flow of income?

Taxation

Import

Investment

Saving

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[1]1. (v)

The type of investment which is affected by a change in the level of output or income is called ______.

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[1]1. (vi)

NNPFC = NDPFC + ______.

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[1]1. (vii)

Fiscal deficit − Primary deficit = ______.

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[1]1. (viii)

State one difference between a progressive tax and a regressive tax.

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SECTION B - 12 MARKS
Answer the following questions briefly.
[2]2.

Discuss any two export promotion measures undertaken to correct the disequilibrium in the Balance of Payments.

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[2]3.

Explain the following component of the domestic factor income.

Compensation of employees

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[2]4.

If the initial increase in autonomous investment ₹ 100 Cr and MPC = 0.8, calculate the increase in income.

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[2]5.

Distinguish between demand pull inflation and cost push inflation.

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[2]6. (i)

What is meant by budget of the government?

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OR
[2]6. (ii)

What is meant by ‘deficit financing’?

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[1]7. (i)

State whether the following will be included or not in the National Income Accounting. Give one reason for it:

Interest paid on a loan taken to buy a consumer durable good.

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[1]7. (ii)

State whether the following will be included or not in the National Income Accounting. Give one reason for it:

Food grain grown by a farmer for self-consumption.

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SECTION C - 20 MARKS
[4]8. (i)

Explain the steps involved in the calculation of National Income by the Expenditure method.

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OR
[4]8. (ii)

Draw a well-labelled diagram to explain briefly the circular flow of income in a three-sector model.

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[4]9.

Discuss the components of the Balance of Payments in the current account.

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[4]10.

Name the types of deposit accounts of the commercial banks.

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[4]11.

Discuss how public expenditure can be used as an important tool to attain:

  1. Regional equality
  2. Economic growth
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[4]12.

Read the passage given below and answer the following questions.

The Great Depression of 1930s proved that without the government’s intervention, the economy cannot create employment opportunities. In India, MGNREGA programmes are based on Keynesian aggregate demand strategy of direct job creation by the government. MGNREGA increases the purchasing power of those individuals whose MPC is the highest.
  1. What is meant by MPC? [1]
  2. State the components of aggregate demand. [2]
  3. How is MPS obtained from MPC? [3]
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Chapter:

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CISCE previous year question papers Class 12 Economics with solutions 2021 - 2022

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