CBSE Class 12 Economics Answer Key 2024, Question Paper All SET 1,2,3,4

All the students who appeared for the CBSE Class 12th Economics Exam today i.e., March 18, 2024 said that the question paper was difficult. It would fall under the moderate to difficult category. The question paper format was aligned to the format of the sample paper, released by the board. Challenging Areas  Assertion-Reasoning, Descriptive Type Answers, Image-Based Questions, MCQs, and Numericals. Sections A and B comprised of similar questions.

1. The overall difficulty level of the question paper was difficult.
2. According to the students the economics question paper was lengthy in nature.
3. Every question was from the syllabus, there was no out-of-syllabus question.
4. Students said that both Macro Economics and Indian Economic Development were equally tough and easy at the same time
5. MCQs from both sections were direct in nature but challenging.
6. Short answer-type questions were moderately challenging.
7. Assertion Reasoning was tricky

Experts also opined that the Class 12th economics question paper was difficult. There were a lot of competency-based questions thus ensuring practical applications of the theoretical concepts in the question paper. There was a good mixture of easy and challenging questions where students had to read the question and think before answering.

CBSE Class 12 Economics Answer Key 2024 All SET

SECTION A – MACRO ECONOMICS MARKS

Q.1 to Q.10 carry 1 mark each

1 Read the following statements carefully:
Statement 1: A consumption function describes the relationship between consumption and savings.
Statement 2: Consumption functions consists of two components – autonomous consumption and induced consumption.
In 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.

Answer: b) Statement 1 is false and Statement 2 is true.

2 Identify which of the following is not one of the merits of fixed exchange rate system.

(A) Ensures stability in exchange rate
(B) Possibility of under or over valuation of foreign currency
(C) Prevents speculations in foreign exchange market
(D) Coordination of macroeconomic policies becomes convenient.

Answer: (D) Coordination of macroeconomic policies becomes convenient.

3. Study the following figure carefully and choose the correct alternative to fill in the blanks

Alternatives
(A) Investments
(B) Trade of Services
(C) External Borrowings
(D) External Assistance

Answer: (B) Trade of Services

5. Read the following Statements carefully:
Statement 1: Economics Territory and Political Frontier of a nation are one and the same thing.
Statement 2: American Embassy in India is a part of the economic territory of India.

(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.

Answer: (D) Both Statements 1 and 2 are false.

6. Read the following Statements carefully:
Statement 1: Money is a commodity that is generally accepted as a medium of exchange.
Statement 2: Money Solved the problem of double coincidence of wants.

(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.

Answer: (C) Both Statements 1 and 2 are true.

7. Suppose in an imaginary autonomous consumption = 500 crore and marginal prospensity to consume = 0.8. The saving function for the economy would be ____

(A) 500+0.8Y
(B)(-)500+0.8Y
(C) 500+0.2Y
(D)(-)500+0.2Y

Answer: (D)(-)500+0.2Y

8. Read the following Statements: two statements are given one labelled as Assertion (A) and the other labelled as Reason (R).

Assertion (A): The maximum value of marginal propensity to save MPS can be unity
Reason (R): At the break-even level of income, savings are zero.

Select the correct answer to these questions from the codes (A), (B), (C) and (D) as given below.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

Answer: (D) Assertion (A) is false, but Reason (R) is true.

10. Assertion (A): The equilibrium level of income is determined. when ex-ante spending and ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.

Select the correct answer to these questions from the codes (A), (B), (C) and (D) as given below.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.

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

CBSE Class 12 Economics Answer Key 2024 SET 2

1. “Mr Sahotra borrowed funds from bank for purchasing a new house”. From the above statement, identify the indicated function of money:

(A) Medium of Exchange

(B) Store of Value

(C) Unit of account

(D) Standard of deferred payments

2. If in an economy the initial deposits are Rs 4000 crore and Reserve Ratio (RR) is 10%. The value of total deposit created would be ___ crore.

(A) 4,000

(B) 40,000

(C) 2,000

(D) 20,000

3. Identify, which of the following is not considered as Normal Resident of India? 1

(A) An Indian citizen working in U.S.A. embassy located at New Delhi.

(B) An Indian officials working in Indian embassy in China.

(C) An Indian diplomats visiting Canada for a summit.

(D) An Indian working in an American Company located in New York for a period of more than 1 year.

4. Read the following statements carefully:

Statement 1: Ex-post savings and Ex-post investments are equal at all levels of income.

Statement 2: Under the effective demand principle, the equilibrium output is equal to ex-ante Aggregate Demand (AD).

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.

5. In a hypothetical economy, entire additional income is consumed, the value of investment multiplier will be ___________ (Fill up the blank with correct alternative.)

(A) One (1)

(B) Zero (0)

(C) Between zero (0) and one (1)

(D) Infinity (∞)

6. From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: (Choose the correct alternative.)

Income (crore)	0	50	100	200	300	400
Consumption (crore)	50	75	100	150	200	250

(A) 50

(B) 100

(C) 200

(D) 0

7. Identify, what does the shaded area (AEFG), in the given figure indicate?

I. Consumption > Income

II. Saving = Zero (0)

III. Consumption < Income

IV. Saving Zero (0)

Alternatives:

(A) I and II

(B) II and III

(C) III and IV

(D) I and IV

For Visually Impaired Candidates:

Marginal Propensity to Save (MPS) is the slope of (Choose the correct alternative.)

(A) Consumption function

(B) Cost function

(C)Saving function

(D) Investment

8. The measurement of Balance of Payments deficit is based on _________ transactions. (Fill Payments deficit is based on up the blank with correct alternative.)

(A) Autonomous

(B) Accommodating

(C) Current account

(D) Capital account

9. From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy:

I. Purchase of land in England by an Indian

II. Foreign tourists visiting Taj Mahal

III. Donation of $ 500 million from Microsoft

IV. Indian students going to Australia for studies

Alternatives:

(A) I and II

(B) II and IV

(C) II and III

(D) I and IV

10. If in an economy the Balance of Trade is showing a deficit of 200 crore and the value of import is 900 crore, then the value of exports would be crore. (Fill up the blank with correct alternative.)

(A) 200

(B) 1100

(C) 700

(D) 900

11. (a) Calculate Net Value Added at Factor Cost (NVA) from the following 11 data:

S.No	Particulars	Amount (in lakhs)
i	Fixed capital goods (expected life span – 5 years)	15
ii	Domestic Sales	200
iii	Change in stock	(-) 10
iv	Exports	10
v	Single use producer goods	120
vi	Net indirect taxes	20

(b) From the following data, estimate the value of Net Indirect Taxes (NIT):

S.No	Particulars	Amount (in Crores)
i	Net National Product Market Price (NNPMP	1,400
ii	Net Factor Income from abroad	(-) 20
iii	Gross National Product at Factor Cost (GNPFC)	1,300
iv	Consumption of fixed capital	100

12. Define with suitable examples, autonomous transactions and accommodating transactions in the Balance of Payments of an economy.

13. (a) (i) “With an objective to reduce inflation, government may reduce public Expenditure.” Discuss the rationale behind such a step which may be taken by the Government.

(ii) Define Effective Demand Principle.

OR

(b) (i) State the meaning of ‘unintended accumulation of inventories’. (ii) “In an economy, Aggregate Demand (AD) is more than Aggregate Supply (AS).”

Elaborate the possible impacts of the same, on the level of output, income, and employment.

14. Suppose an economy is in equilibrium. From the following data, calculate investment expenditure in economy:

(i) National Income (Y) =₹10,000 crore

(ii) Marginal Propensity to Save (MPS) = 0.2

(iii) Autonomous Consumption (c) = 100 crore

15. “Open Market Operation by the Reserve Bank of India (RBI) helps in regulating money supply in the economy.” Justify the given statement.

16. (a) (i) Distinguish between Revenue Receipts and Capital Receipts of the government, with suitable example.

(ii) “Under the Production Linked Incentive scheme, the Government of India offers various benefits like reduced import-export duties, incentives to investors, tax-rebates etc.” In the light of above statement, identify and explain the Budget objective and its likely consequences.

(b) (i) “Under ‘Zero Defect Zero Effect’ (ZED) scheme, the government of India provides up to 80% subsidy to Micro, Medium Enterprises (MSMEs).” Identify and explain the objective of government budget, highlighted in the above text.

(ii) Distinguish between Tax Revenue and Non-tax Revenue, with suitable examples.

17. (a) As per The Economic Times report, dated April 11, 2023 “Electric Vehicle sales cross 10 Lakh mark in financial year 2022-23.” Analyse the likely impacts of this news on Gross Domestic Product (GDP) and Welfare.

(b) Discuss briefly, the circular flow of income in a two sector economy model.

SECTION-B

(Indian Economic Development)

18. After independence, the rationale behind choosing Modernization as a planning objectives for the Indian economy were

I. To bring positive changes in the social outlook

II. Equitable distribution of income

III. Technological Upgradation

IV. Increase in Economic Divide Alternatives:

(A) I and II

(B) II and III

(C) I and III

(D) I and IV

19. Study the following picture:

Identify the kind of activities, which may be envisaged under ___________ as diversification activity. (Fill up the blank with correct alternative.)

Alternatives:

(A) Animal Husbandry

(B) Fisheries

(C) Horticulture

(D) Organic farming

For Visually Impaired Candidates:

farming is a system that is helpful in restoring, maintaining and enhancing the ecological balance. (Choose the correct alternative to fill in the blank.)

(A) Multi layered

(B) Chemical

(C) Organic

(D) Conventional

20. Read the following statements:

Assertion (A) and Reason (R). Choose the correct alternative from those given below:

Assertion (A): India could not develop a sound Industrial-base during the British rule.

Reason (R): Britishers followed restrictive trade policies which strengthened Indian handicraft industries.

Alternatives:

(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

CBSE Class 12 Economics Exam Analysis 2024

All the students who appeared for the Class 12 Economics Exam 2024, can check the live CBSE Class 12 Exam Analysis 2024 by Adda247.