CBSE Economics Sample Paper term 1 2021-22 has been issued by CBSE for the students to get an idea on nature of question and pattern. You can download the complete paper from the following link : –
CBSE Economics Sample Paper Term 1- SECTION A – (20 questions out of 24 questions are to be attempted)
- The Government can achieve its budget objective of ‘Redistribution of Income’ by____________ (Fill up the blank with correct alternative)
a) managing the General Price Level in the economy to the desired level.
b) increasing the Gross Domestic Products (GDP) of the economy.
c) bringing the production of goods and services under its direct and absolute control. d) rationalisation of taxes in pro-poor direction.
- Balance of Payments of an economy records_____________ for a fiscal year. . (Fill up the blank with correct alternative)
a) income and expenditure of the government
b) inflow and outflow of funds of the government
c) inflow and outflow of foreign exchange to/from the economy
d) inflow and outflow of loans to/from the rest of the world
- Identify which of the following bank does not interact directly with the general public? (Choose the correct alternative)
a) Bank of India
b) State Bank of India
c) Central Bank of India
d) Reserve Bank of India
- Identify which of the following is not an example of ‘invisible item’ under Current Account of the Balance of Payments transactions: (Choose the correct alternative)
a) Air and sea transport
b) Postal and courier services
c) Education-related travel
d) Merchandise linked transactions
- Read the following statements carefully and choose the correct alternative from the following: Statement 1 – Demonetization was the step taken by the Government of India in order to tackle the problems of corruption, black money, terrorism and circulation of fake currency in the Indian
Statement 2 – Demonetization has ensured improved tax compliance in India over the period of time.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
- Sakshi, an economics teacher, was explaining the concept of ‘minimum percentage of the total deposits to be kept by any commercial bank with the Central Bank of the country, as per norms and statute prevailing in the country’.
From the following, choose the correct alternative which specifies towards the concept explained by her?
a) Cash Reserve Ratio
b) Repo Rate
c) Bank Rate
d) Statutory Liquidity Ratio
7. Two friends Mira and Sindhu were discussing the exchange rate systems.‘Under this system, the exchange rates are determined by the market forces of demand and supply. However, deliberate efforts are made by the competent authority to keep the exchange rates within a specific range’.
The above-mentioned statement was given by Sindhu, identify the type of exchange rate system was she talking about?
a) Fixed Exchange Rate
b) Floating Exchange Rate
c) Managed Floating Exchange Rate
d) Managed Fixed Exchange Rate
8.Read the following statements carefully and choose the correct alternative from the following: Statement 1 – Public goods are those goods and services that are collectively consumed by the
Statement 2 – Public goods are excludable and rivalrous in nature.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
9. Under the Balance of Payments structure of a nation, the two main categories of accounts for the classification of the transactions are___ and ___. (Fill up the blank with correct alternative) i. current account
- unilateral transfer account
iii. capital account
- loan account
Identify the correct alternatives from the following:
Alternatives:
- a) i and ii
- b) i and iii
- c) iii and iv
- d) iv and i
10. Identify which of the following is not a function of the Reserve Bank of India? (Choose the correct alternative)Â a) To act as the banker to the Government of India.
b) To act as the custodian of the gold reserve of India
c) To act as the financial advisor to the Government of India
d) To issue coins and one rupee note
- Industrial Policy Resolution (IPR) 1956 formed the basis of the_________ Five Year Plan. (Fill up the blank with correct alternative)
a) First
Fourth
Second
Third
12. Occupational structure refers to___________ (Fill in the blank with correct alternative)
  a) size of labour force in a country
b) number of people living in a country
c) distribution of workforce among different sectors of an economy
d) nature of different occupations
13. _____________ is the portion of agricultural produce which is sold in the market by the farmers, after meeting their self-consumption requirements. (Fill in the blank with correct alternative)
a) Trade Surplus
b) Marketable Surplus
c) Producer Surplus
d) Consumer Surplus
14. Read the following statements carefully and choose the correct alternatives given below: Statement 1 –Poverty line in India is defined in terms of monetary value of the minimum nutritional (calorific) requirements of an individual in a day.
Statement 2 – The definition of poverty line in monetary terms has not changed over the years. Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
15. Read the following statements carefully and choose the correct alternatives given below: Statement 1 – India is often called as the ‘outsourcing hub’ of the world.
Statement 2 – Availability of skilled manpower is one of the prime factors responsible for the status gained by India at the international platform.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
16. Before the advent of Green Revolution in 1960’s, India was primarily dependent on _________for the supply of food grains. (Fill in the blank with correct alternative)
a) United States of America (USA)
b) Britain (United Kingdom)
c) Mexico
a) Union of Soviet Socialist Republics (USSR)
17. From the following given sets of statements in column I and II, choose the correct pair of statements.
Column IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Column II
A Exports of goods and services      i Excess of Exports of goods over the Imports of goods
B Trade Surplus                     ii An element of invisible items
C Current Transfers to rest of the world  iii Recorded as a positive item in the BOP account
D. Portfolio Investments               iv Foreign Institutional Investors
Alternatives:
- a) A-i
- b) B-ii
- c) C-iii
- d) D-iv
18. National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the_________body to coordinate the activities of all institutions involved in the rural financing system. (Fill in the blank with correct alternative)
a) cooperative
b) apex
c) micro credit
d) private credit
19 The Government of India has decided to vaccinate the adult population of India (with Covaxin/Covishield), without any charge. This would be categorized as ____________  (Fill in the blank with correct alternative)
a) revenue nature income
b) capital nature expenditure
c) revenue nature expenditure
d) capital nature income
20 ____________ is not a reason for poverty in India. (Fill in the blank with correct alternative)
a) population explosion
b) rise in per capita GDP
c) low capital formation
d) socio-economic exclusion
21 In a hypothetical economy, Mr. Neeraj has deposited ₹100 in the bank. If it is assumed that there is no other currency circulation in the economy, then the total money supply in the economy will be ________________ (Fill up the blank with correct alternative)
a) zero
b) ₹ 100
c) not defined
d) ₹ 120
22 ‘Since independence, India has witnessed a considerable fall in the Infant Mortality Rate in India’ Identify which of the following may not be one of the reasons for the fall in the Infant Mortality Rate? (Choose the correct alternative)
a) Improvement in health facilities over the years
b) Improvement in educational standards over the years
c) Fall in standard of living of the population of the nation over the years
d) Technological expansion over the years
23. Read the following statements carefully and choose the correct alternatives given below: Statement 1 – Subsidies do not add any burden on the financial health of a nation.
Statement 2 – Complete removal of subsidies may violate the aim of equitable distribution of income.
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false
24. Prior to India’s independence, the stagnation in the agricultural sector was mainly caused by ___________. (Fill up the blank with correct alternative)
a) investment in technology
b) investment in agriculture facilities
c) advanced infrastructural facilities
d) land settlement system
CBSE Economics Sample Paper Term 1- SECTION B – (20 questions out of 24 questions are to be attempted)
25. Read the following statements – Assertion (A) and Reason (R):
Assertion (A) – Acquisition of a domestic (Indian) company by a foreign (Australian) company will be recorded on the credit side of Balance of Payment Account.
Reason(R) – It leads to outflow of foreign exchange from the domestic economy.
From the given alternatives choose the correct one:
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 and 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.
26 Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crores.
Under the given situation the value of reserve requirements would be________
(Fill up the blank with correct alternative)
a) 0.01
b) 1
c) 0.1
d) 0.4
27 Read the following statements – Assertion (A) and Reason (R):
Assertion (A) – Major policy initiatives (land reforms and Green Revolution) helped India to become self-sufficient in food grains production.
Reason(R) – The proportion of people depending on agriculture did not decline as expected after the Green Revolution.
From the given alternatives choose the correct one:
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 and 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.
28. Identify the incorrect statement from the following: (Choose the correct alternative)
a) Diversification in agriculture sector provides sustainable livelihood rural population.
b) Diversification includes – change in cropping pattern, shift of workforce from agriculture to other allied activities and non-agriculture sector.
c) Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population.
d) Diversification reduces the proportion of unemployed population in the rural areas to considerable limits.
29 Read the following statements – Assertion (A) and Reason (R):
Assertion (A) – Human capital treats human beings as a means to an end (increase in productivity).
Reason(R) – Human Capital Formation decreases by way of investments in education and health. From the given alternatives choose the correct one:
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 and 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.
30. From the set of statements given in Column I (Name of the Scheme) and Column II (Objective of Poverty Alleviation Program), choose the correct pair of statements:
Column I
Column II
(Name of the Scheme)
(Objective of Poverty Alleviation Program)
A) Mahatma Gandhi
i) developing infrastructure and
National Rural
housing conditions
Employment
Guarantee Act
B) Poshan Abhiyan (Mid
ii) guaranteed wage employment to
Day Meal Programme)
rural unskilled worker
C) National Social
iii) helping specific group – elderly
Assistance Programme
people by giving them pensions
D) Valmiki Ambedkar
iv) improving food and nutritional
Awas Yojana
status of the poor
Alternatives:
a) A-i
b) B-ii
c) C-iii
d) D-iv
FOR ANSWERS DOWLOAD FROM THE FOLLOWING LINK
http://cbseacademic.nic.in/web_material/SQP/ClassXII_2021_22/Economics-MS.pdf