class 12 economics

1. The total revenue receipts of the government are Rs 5000 crores out of 1 point which tax receipts are Rs 4250 crores. If the borrowings of the nation are twice the non-tax receipts of the government, the fiscal deficit of the country is: * a. Re 750 crores ()b. R: 1500 crores G. R 2250 () d. Not enough information to calculate 2. Which of the following pairs are a form of non-tax revenue: * 1 point a. Estate duty and interest b. Recovery of loan and GST () . Interest and grants ) d. Forfeitures and tariffs 3. Identify the non-tax revenue receipt from the following statement:"It 1 point refers to the claim of the government on the property of a person who dies without leaving behind any legal heir.'* a. Special assessment ) b. Escheat c. Forfeitures d. Fees 4. "A country can face the problem of fiscal deficit even if there is a surplus 1 point in the revenue budget of the government." Select whether true or false. * a. True )b. False5. State whether the following are true or false. * 4 points True False (0) The policy of a surplus budget during inflation helps to maintain stability of prices O in the economy. (ii) To achieve the objective of income equality in India, the government must impose 0 proportionate taxation. (ili) The duration of a government budget is five years. (iv) Government's liability would decrease by borrowing from the public by selling 0 bonds.6. The following headlines have been taken from leading daily newspapers. 5 points Categorise them as revenue receipts, revenue expenditure, capital receipts or capital expenditure. * Revenue receipt Revenue Capital Capital Receipt expenditure expenditure (i) Cyclone Tauktae: PM Modi announces Rs 1,000 crore O O O O relief fund for Gujarat after aerial survey. (ii) The country has announced that 2021 will see the completion of 49 rail projects, with a further seven to follow in the first three O O O O months of 2022. Works will include tracking doubling, gauge conversions, and electrifications. (iii) LIC disinvestment cleared, panel headed by finance minister O O O O to decide quantum of stake sale (iv) Delhi police fine over 1.3 lakh people in two O O O O months for not wearing masks (v) Karnataka Covid wrap: Centre grants Rs 1500 cr ahead of anticipated third O O O O wave, state reports 1978 new casesI". Read the following statements and tick the correct option. * 1 point Assertion {A}: Capitalism is an economic system in which major economic decisions are left to the free play of market forces. Reason (Hi: There is private ownership of the means of production and all economic decisions are taken with a View to maximize profits. 0 a. Assertion and reason both are correct statements and reason is the correct explanation for assertion. O h. Assertion and reason both are correct statements but reason is the not the correct explanation for assertion. O c. Assertion is correct but reason is wrong. 0 d. Assertion is wrong but reason is correct 3. Read the following statements and tick the correct option. \" 1 point Assertion {A}: 1921 is regarded as the year at great divide in India. Reason {R}: Post 1921. the population of India never declined. O a. Assertion and reason both are correct statements and reason is the correct explanation for assertion. O b. Assertion and reason both are correct statements but reason is the not the correct explanation for assertion. O c. Assertion is correct but reason is wrong. 0 d. Assertion is wrong but reason is correct 9. Taking loan from the World Bank to meet the needs for foreign exchange 1 point in the year 1991 is an example of: \" O 3. Structural measures 0 b. Stabilisation measures 10. Removal of industrial licensing as a policy measure under the new 1 point economic policy, 1991 is an example of: * a. Structural measures b. Stabilisation measures 11. The opening of the Suez Canal in 1869: * 1 point a. Raised the cost of goods transportation between Britain and India. () b. Adversely affected the monopoly control of India's foreign trade. () c. Reduced the cost of goods transportation between Britain and India. d. Reduced the export of goods from India to foreign countries 12. The first railway bridge in India linked * 1 point a. Bombay with Thane b. Kolkata with Bombay c. Kolkata and Thane d. Bombay and Bengal 13. What is the contribution made by different sectors of the economy in 1 point the GDP of the country called? * a. Composition of GDP b. Structural Composition c. Occupational structure d. Sectoral contribution14. Why was the Public Sector in the initial planning phases necessary for the country's development? * O a. Private industrialists did not have sufficient capital for investment. 0 b. The marl-ret was not big enough to encourage private industrialists. O c.To develop Indian economy on the socialist lines. 0 d. All ofthe above. 15. A perspective plan is : * O a. a long term plan 0 I}. spread over a 20 year period 0 c. based on the 5 year plans 0 d. all of the above 16.15. strategy to protect the domestic industry through import restrictions is called: * O a. inward looking trade strategy 0 I}. import promotion strategy 0 c. export promotion strategy 0 d. None of the above 1?. Sale of equity of public sector by the government is called: * O a. liberalisation O b.seltreliance O c. privatisation O o. globalisation 18. The policy of the government which is expected to reduce tax evasion 1 paint and create 'one nation, one tax and one market" is: * a. Direct taxation b. Indirect taxation c. Goods and Service Tax d. Value added tax 19. Most of the studies disclosed that India's growth of aggregate real 1 point output during the first half of the twentieth century was less than 2% coupled with a meagre 0.5% growth in per capita output per year. This implies that- * ) a. Output was growing at a faster rate than population b. Output was growing at the same rate as population c. Output was growing at a slower rate than population () d. No trend can be deduced 20. Match the statements given in Column I with those given Column II. * 1 point Column I Column II Planning Commission 1907 The year in which the Karve 1995 Commatter noted the possibility of using sunall-scale undustries for promoting rural development C Formation of WTO 1930 D Incorporation of TISCO 1935 O a. A-(iv) B-(iii) C- () D-(1) b. A-(mi) B-(iv) C- (i) D-(0) c. A-(ii) B-(iv) C- () D-(i) O d. A-( B-(@) C- (iv) D-(ii) 21. In India, between 1950 and 1990, the proportion of GDP contributed by 1 point agriculture declined significantly but not the population depending on it. Why was such a large proportion of the population engaged in agriculture although agricultural output could have grown with much less people working in the sector? * O a. The industrial sector and the service sector did not absorb the people working in the agricultural sector. O b. The people living in rural areas did not want to migrate in search of better opportunities. O C. People continued to work on farms due to the subsidies provided by the government d. None of the above23. India should not go back to licence raj regime: Economist Paul Krugman"Don't go back (to) Licence Raj regime... country like India might want to have a deliberate policy for fostering industries," he said. The licence raj, which involved an elaborate system of licences and regulations that were required to set up and run businesses in the country, was dismantled with the liberalisation policy introduced in 1991.Krugman pointed out that India has not really done well in the labour-intensive aspects, but the country was very successful in the services sector and high skill manufacturing."Services sector generates a lot of GDP, but they do not generate a lot of jobs," he opined. Source: Hindustan Times, March 17, 2021 The licensing system had its disadvantages but it was introduced with 1 point specific objectives. What are the goals of industrial licensing? (i) To prevent industrial monopoly. (ii) Removing regional disparities (iii) To prevent wastage of scarce resources (iv) To encourage people to participate in the agricultural sector. * a. Only option (@) and (mi) are correct. O b. Only option (ii) and (iv) are correct. O c. Options (i). (ii) and (iii) are correct. O d. Options (m). (ui) and (iv) are correct