ECONOMICS SAMPLE PAPER 2022-23

1. Shree Radhey Publications (Subhash Dey)
ECONOMICS XII EXAM HANDBOOK

4. CBSE SYLLABUS 2022-23
PART-A INTRODUCTORY MACROECONOMICS
Unit Periods Marks
1. National Income and Related Aggregates 30 10
2. Money and Banking 15 6
3. Determination of Income and Employment 30 12
4. Government Budget and the Economy 17 6
5. Balance of Payments 18 6
TOTAL 110 40
UNIT 1: National Income and Related Aggregates
• What is Macroeconomics?
• Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and
flows; gross investment and depreciation.
• Circular flow of income (two sector model); Methods of calculating National Income - Value Added or Product
method, Expenditure method, Income method.
• Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross and
Net Domestic Product (GDP and NDP) - at market price, at factor cost
• Real and Nominal GDP; GDP and Welfare
UNIT 2: Money and Banking
• Money - meaning and functions
• Supply of money - Currency held by the public and net demand deposits held by commercial banks.
• Money creation by the commercial banking system.
• Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker's Bank,
Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations,
Margin requirement.
NOTE: Functions ofMoney have been added to the CBSE syllabus 2022-23 for March 2023 Examination.
UNIT 3: Determination of Income and Employment
• Aggregate demand and its components.
• Propensity to consume and propensity to save (average and marginal).
• Short-run equilibrium output
• Investment multiplier and its mechanism.
• Meaning of full employment and involuntary unemployment.
• Problems of excess demand and deficient demand; measures to correct them - changes in government spending, taxes
and money supply.
UNIT 4: Government Budget and the Economy
• Government budget - meaning, objectives and components.
• Classification of receipts - revenue receipts and capital receipts; classification of expenditure - revenue expenditure
and capital expenditure.
• Balanced, Surplus and Deficit Budget - measures of government deficit.
NOTE: Meaning ofBalanced, Surplus and Deficit Budget have been added to the CBSE syllabus 2022-23 for March
2023 Examination.

6. CBSE Sample Question Paper 2022-23
Maximum Marks - 80 Time - 3 Hours
General Instructions:
• This question paper contains two sections:
Section A - Macro Economics
Section B - Indian Economic Development
• This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
• This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
• This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
• This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.
SECTION A - MACROECONOMICS
Q.1 Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between
income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other. In the light of the given
statements, choose the correct alternative from the following: (1 mark)
(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
Q.2 'Owing to the Russia-Ukraine crisis, the world is experiencing rising crude prices due to supply-side issues.'
Identify the most likely impact on the Balance of Payment situation of the Indian economy from the following:
Q.3
(a) Production of cars in India will rise.
(b) Production and sale of cycles in India will rise.
(c) Inflow of US Dollars in India will rise.
(d) Outflow of US Dollars from India will rise.
(1 mark)
_ _ _ _
_ is an institution that accept deposits for lending purposes. (Fill up the blank with correct alternative)
(a) Commercial Banks
(c) Reserve Bank oflndia
(b) Life Insurance Corporation
(d) Government oflndia
(1 mark)

7. Q.4 Read the following statements carefully:
Statement 1: Export of financial services by India will be recorded on credit side of current account.
Statement2: Foreign Direct Investments in India will be recorded on credit side of capital account.
In the light of the given statements, choose the correct alternative:
(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
Q.5 Read the following statements carefully:
Statement 1: Net investment is a stock concept.
Statement 2: Capital is a flow concept.
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
OR
Read the following figure carefully and choose the correct pair from the alternatives given below:
Alternatives:
(a) Output, Production
(c) Output, Disposition
National _(i)__
National Expenditure
_(ii)_ Phase
Generation Phase
National Income
Distribution Phase
(b) Value added, Production
(d) Wealth, Development
(1 mark)
(1 mark)
Q.6 Ifin an economy, the value of investment multiplier is 4 and Autonomous Consumption is� 30 crore, the relevant
consumption function would be : (1 mark)
(a) C = 30 + 0.75Y (b) C = (-)30 + 0.25Y
(c) C = 30 - 0.75Y (d) C = 30 - 0.25Y
OR
Ifincrease in National Income is equal to increase in consumption, identity the value ofMarginal Propensity to Save :
(a) Equal to unity (b) Greater than one
(c) Less than one (d) Equal to zero
Q.7 Money supply in India may increase if, . (Choose the correct alternative)
1. Reserve Bank of India(RBI) injects more money in circulation
2. the commercial banks expand their credit operation
3. tax rates are reduced by the Central Government
4. Reserve Bank of India increases the Bank Rate
(a) 1, 2 and 3 are correct (b) 2, 3 and 4 are correct
(c) 1, 3 and 4 are correct (d) 1, 2 and 4 are correct
Q.8 Suppose, following data is presented, for an imaginary economy: (allfigures in � '000 crore)
Year Visible Exports Visible Imports
2010 280 240
2020 580 460
(1 mark)
(1 mark)