CBSE Class 12 Economics Answer Key 2024, Get Board Paper Set 1, 2, 3

The Central Board of Secondary Education has administered the Class 12 Economics Paper. The Class 12 Economics exam is held from 10:30 a.m. to 1:30 p.m. and students can now obtain the Class 12 Economics Answer Key 2024. As per the student’s review, the paper was moderate in difficulty level. Although the MCQs are easy the Assertion Reasoning questions were tricky. In this article, we provide questions and answers so that students can easily match their responses and forecast their scores.

Economics Answer Key 2024

Students are generally concerned about their exam responses, whether they are correct or incorrect. Following the exam, our in-house professionals have provided you with the CBSE Class 12 Economics Answer Key 2024 on this page. Although unofficial, the Class 12 Economics Answer Key 2024 is free of errors and created by experienced economics faculty. Go through the article to get the answer key and paper analysis of the economics paper.

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Class 12 Economics Answer Key 2024

The Economics Answer key features all the correct answers of the Economics Paper. The CBSE Class 12 Economics paper is divided into two halves. The first section concentrates on macroeconomics, while the following section looks into Indian economic development. Each section consists of multiple choice questions, four short answer questions, and long answer questions. Let us take a brief look at the CBSE Class 12 Economics Answer Key 2024 Highlights.

CBSE Class 12 Economics Answer key 2024 for All Sets 1, 2, 3, 4

The CBSE class 12 Economics Exam is now over. students now seek the correct solutions to each question in the Answer key. Adda247 Experts are continually assessing CBSE class 12 Economics questions and answers. CBSE Economics class 12 answer key 2024 with 100% correct solutions for all sets are available on this page.

Class 12 Economics Set 1 Answer Key 2024

SECTION-A (Macro Economics)

1. Read the following statements carefully:
Statement 1 Ex-post savings and Ex-post investments 1: levels of income. are
equal at all
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.

2. Identify, which of the following is not considered as ‘Normal Resident’ of India?

(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.

3. In a hypothetical economy, if entre additional income is consumed, the value of investment multiplier would be________________
Fill up ( the blank with correct alternative.)
(A) One (1)
(C) Between zero (0) and one (1)
(B) Zero (0)
(D) Infinity (0)
4. 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

5. 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 cor
(Choose the correct alternative)

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

Alternatives:
(A) 50
(C) 200
(B) 100
(D) 0
7. If in an economy the initial deposits are₹4,000 crore and Reserve Ratio (RR) is 10%. The value of total deposit created would be crore.
(Fill up the blank with correct alternative.)
(A) 4,000
(B) 40,000
(C) 2,000
(D) 20,000

8.From the following, identify the correst 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
(C) II and III
(B) II and IV
(D) I and IV

Class 12 Economics Set 2 Answer Key 2024

SECTION A Macro Economics

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)

Class 12 Economics Set 3 Answer Key 2024

SECTION-A (Macro Economics)

1.. The measurement of Balance of Payments deficit is based on_______________ transactions.
(Fill up the blank with correct alternative.)
(A) Autonomous
(B) Accommodating
(C) Current account
(D) Capital account
2.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 __________________ function.
(A) Consumption
(B) Cost
(C) Saving
(D) Investment

3. From the following, identify the 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
(C) II and III
(B) II and IV
(D) I and IV

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

:Alternatives:
(A) 50
(C) 200
(B) 100
(D) 0

5. If in an economy the initial deposits are (RR) is 10%. The value of total deposit created would be ₹4,000 crore and Rese serve Ratio crore. (Fill up the blank with correct alternative.)
(A) 4,000
(B) 40,000
(C) 2,000
(D) 20,000

6. “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
(C) Unit of account
(B) Store of value
(D) Standard of deferred payments
7. 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
(C) 700
(B) 1100
(D) 900
8. In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be___________
(A) One (1)
(C) Between zero (0) and one (1)
(B) Zero (0)
(D) Infinity (0)

CBSE Class 12 Economics Board Paper 2024

Here we have provided the CBSE Class 12 Economics Board Paper 2024 for all sets from the direct Link given below.

Class 12 Economics Exam Paper Analysis 2024

CBSE Class 12 Economics Exam is concluded at 01:30 P.M. Here we provides the complete CBSE Class 12 Economics Paper analysis based on the expert’s and students’ options.

As per students, the question paper was moderate in difficulty level. Check out the Section-wise paper review by the students:

• The question paper format was aligned with the format of the sample paper, issued by the board.
• There were no questions that weren’t on the syllabus.
• Macroeconomics and Indian economic development were both difficult and easy.
• MCQs in both sections were direct but demanding.
• Assertion reasoning was tough.
• The question paper was extensive in nature
• The paper included a variety of competency-based questions, including assertion reasoning, image-based questions, case studies, and more.
  The document also included simple and direct questions that could be answered without a second thought.

CBSE Class 12 Economics Question Paper Marking Scheme

It is critical to understand the CBSE Class 12 economics marking scheme when studying the answer key. The Class 12 Economics examination lasts three hours. The CBSE Class 12 Economics paper has a total of 80 marks. The Class 12 Economics exam paper will be divided into two sections: Macroeconomics (Section A) and Indian Economic Development. The question paper will include 20 multiple-choice questions, four short answer questions, six short answer questions, and four long answer questions.

Economics Answer Key 2024 with Paper Analysis

Watch the video where our teacher provided the Economics answer key 2024 and compete Paper Analysis in detail.

Class 12 Economics Answer Key Last Year

SECTION A

Macro Economics

Q. An Indian company receives a loan from a company located abroad. This transaction would be recorded on the account in India’s Balance of Payment. side of

(Choose the correct alternative to fill up the blanks)
(a) Credit, Current
(b) Debit, Current
(c) Credit, Capital – ANSWER
(d) Debit, Capital

Q. Read the following statements carefully: 
Statement 1: Investment is defined as addition to the physical capital and changes in the inventory.
Statement 2: At equilibrium level of income, ex-post investments and ex-post savings are always equal. 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. – ANSWER
(d) Both Statements 1 and 2 are false.
Q. The Reserve Bank of India (RBI) _________ government securities in a bid to ________  the stock of money in the economy.
(Choose the correct alternative to fill up the blanks)
(a) sells, decrease – ANSWER
(b) purchases, decrease
(c) sells, increase
(d) purchases, not change
4.Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative given below.
Assertion (A): Rich people have lower Marginal Propensity to Consume (MPC) as compared to poor people.
Reason (R): Consumption curve makes an intercept on the y-axis at a point above the origin.
Alternatives:
(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). – ANSWER
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.
 

1. Read the following statements: Assertion (A) and Rensen (R). Choose the correct alternative given below.

Assertion (A): Excess demand does not lead to any increase in the level of real output.
Reason (R): Excess demand creates a gap between actual demand and desired demand corresponding to full employment level.
Alternatives:
(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). -ANSWER
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.
 

1. Read the following statements carefully:

Statement 1: Balance of Payment account is always balanced in accounting sense.
Statement 2: Autonomous transactions, restore balance in Balance of Payment account.
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
 

1. (A) Choose the correct alternative to fill in the blanks (i) and (ii) in the figure.

Alternatives:

(a) National, Production

(b) Factor, Production

(c) Factor, Consumption -ANSWER
(d) National, Consumption

OR

 
(B) Operating Surplus does not include________.
(Choose the correct alternative to fill up the blank)
 
(a) Interest
(b) Rent
(c) Profit
(d) Compensation of employees- ANSWER

1. Demand Deposits include ___________. 

(Choose the correct alternative to fill up the blank)WRONG
(a) Currency and coins held with the public
(b)Other deposits with the Government
(c) Savings Account Deposits and Fixed Deposits
(d) Current Account Deposits and Fixed Deposits
 

1. (A) If the Marginal Propensity to Save (MPS) is 0-5, what will be the value of the investment multiplier? (Choose the correct alternative)

(a) 1
(b) 2- answer
(c) 1-6
(d) 1- 45
OR
 
(B) An increase in National Income occurs by 3,000 crore, as investments increased by 1,200 crore. The value of investment multiplier would be _________.
(Choose the correct alternative to fill up the blank)
(a) 2
(c) 4
(b) 2 – 5 – answer
(d) 5

1. (A) Read the following statements carefully: 

Statement 1: Depreciation of domestic currency may lead to a rise in exports.
Statement 2: Due to the depreciation of Indian National Rupee (₹), purchasing power of US Dollar ($) may increase
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. – answer
(d) Both Statements 1 and 2 are false.
OR

(B) Identify, which one of the following is an intangible item in Balance of Payment (BoP).
(a) Export of food grains
(b) Imports of crude oil
(c) Export of Information Technology (IT) services to the U.S.A.- answer
(d) Import of coal by steel company in India

 Q. Suppose the Gross Domestic Product (GDP) at market price of a country in a particular year was ₹1,500 crore. Net Factor Income from Abroad was ₹100 crore. The value of Net Indirect Taxes was ₹180 crore and the National Income was ₹1,050 crore. Calculate the value of depreciation for the economy.

1. (a) ”The central bank needs to intervene under the managed floating system.” Do you agree with the given statement ? Support your answer with valid reasons.

OR

 (b) Differentiate between Surplus in Balance of Trade and Current Account Surplus.

1. “In an economy, an increase in investment leads to doubling of the national income.” Calculate the Marginal Propensity to Consume (MPC) for the given economy.
2. Read the following text carefully:

“After setting up a working group to study the possibility of a Central Bank Digital Currency (CBDC) in India in 2020, the RBI revealed a concept note on digital rupee (e-Rupee) on 7th October, 2022.”

“The e-Rupee will provide an additional option to the currency available forms of money. It is substantially not different from bank notes, but being digital it is likely to be easier, faster and cheaper.”

RBI said that it broadly defines CBDC as the legal tender issued by a central bank in a digital form. It is akin to paper currency in a different form.

On the basis of the above text and common understanding, answer the following questions:

(a) Identify and discuss the function of central bank indicated in the above text.

(b) State any two advantages of digital rupee.

Q. Discuss briefly, how the government can control the situation of deflation using the following:
(a) Taxation Policy
(b) Government Expenditure Policy

Q. (a)(i) “Government provides essential items like food grains almost free to the families below poverty line.” Identify and explain the objective of the government budget indicated.

(ii) Define the following:

(1) Revenue deficit

(2) Primary deficit

OR

(b) State whether the following statements are true or false, with valid reasons:
(i) High tax on higher income groups aims to achieve the ‘reallocation of resources’ objective of the Government.
(ii) Borrowings are a revenue receipt of the government. 
(iii) Fiscal deficit always leads to inflation.

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