CBSE Class 12 Exam Economics 2023 : Important Assertion-Reason Based Questions with Answers
BRIGHT CBSE MASTER,
The next paper is of economics, an essential subject for commerce and humanities stream students. The economics exam is on 17 March. CBSE Class 12 Economics (code: 030) requires extensive practice and memorisation. The subject is heavy on theory but comes in handy in daily life as well.
There will be two sections in the 2023 CBSE Class 12 Economics exam, one covering Macro Economics and the other Indian Economic Development. There will be 20 MCQs, 4 short answer questions of 3 marks each, 6 short answer type questions of 4 marks each, and 4 Long answer type questions.
In this article, we cover some important assertion and reason type questions along with solutions. Go through them to increase your chances of scoring top marks in the CBSE 12th economics exam.
CBSE Class 12 Economics Assertion and Reason Type Questions 2023
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.
Q1. Assertion (A): The goods which are used either for resale or for further production in the same year are Intermediate goods.
Reason (R): Intermediate goods are included in National Income.
Answer: c) Assertion (A) is true but Reason (R) is false.
Q2. Assertion (A): Goods that meant for final use and will not pass through any more stages for production or transformation is called a final good.
Reason (R): It will not under go any further transformation at the hands of any producer, but many such final goods are transformed during their consumption.
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q3. Assertion (A): Poverty leads to environmental degradation.
Reason (R): Affluence in living standard is causing environmental degradation.
Answer: b): Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.
Q4. Assertion (A): The crude oil reserves are going down for the entire world and countries need to find substitute fuel for crude oil.
Reason (R): A country that is dependent on imports for crude oil will demand more crude oil in the future.
Answer: b): Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.
Q5. Assertion (A): Global warming contributes to increased financial commitments for the govt.
Reason (R): Because of this the opportunity cost of negative environmental impacts are low.
Answer: c): Assertion (A) is true but reason (R) is false
Q6. ASSERTION (A): Growth and social justice is the central objective of Indian planning.
REASONING (R): India opted for planning to utilize available resources efficiently and to establish social justice.
Answer: b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Q7. ASSERTION (A): Subsidies were, needed to encourage farmers.
REASONING (R): Any new technology is looked upon as being risky by farmers
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q8. Assertion (A): India has become a best destination for global outsourcing in the post reform period.
Reason(R): Favorable Government policies such as various efforts like tax holidays, tax concessions, availability of cheap labour etc. helped MNCs
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q9. Assertion (A): Poverty leads to environmental degradation.
Reason (R): Affluence in living standard is causing environmental degradation.
Answer: b): Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.
Q10. Assertion (A): In the past demand for environmental resources and services were much higher than their supply.
Reason (R): Reversal of supply and demand relationship is responsible for degradation of the quality of environment.
Answer: d): Assertion (A) is false but reason (R) is true
Q11. Assertion (A): Central Bank as a banker to the government, works as a custodian of cash reserves.
Reason(R): The Central Bank acts as a clearinghouse for the transfer and settlement of mutual claims of commercial banks.
Answer: b): Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.
Q12. Assertion(A): Central bank as a banker to government, work as a financial advisor
Reason(R): Government borrow internally from banks and general public.
Answer: c) Assertion(A) is true but Reason(R) is false
Q13. Assertion(A): Demand deposits are also called bank money.
Reason(R): Demand deposits are created by commercial banks.
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q14. Assertion (A): Current account is a part of balance of trade
Reason (R): Current account records exports and imports of goods and services and transfer payment
Answer: d): Assertion (A) is false but reason (R) is true
Q15. Assertion (A): Current account transactions bring a change in the capital stock of country
Reason (R): Make in India will increase the inflow of foreign exchange
Answer: d): Assertion (A) is false but reason (R) is true
Q16. Assertion (A): If an Indian buys a UK car company, it enters in capital account as a debit item
Reason (R): Sales of assets like sale of shares of an Indian company to a Chinese customer is a credit item in the capital account
Answer: b): Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.
Q17. ASSERTION (A): Agricultural productivity became low during British rule in India.
REASON (R): The productivity was low due to various systems of land settlement introduced by the colonial government.
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q18. ASSERTION (A): The British undertook significant infrastructure development in India.
REASON (R): Development of infrastructure served various colonial purposes.
Answer: a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Q19. ASSERTION (A): The colonial government never made any sincere attempt to estimate India’s national and per capita income.
REASON (R): growth of aggregate real output during the first half of the twentieth century was less than two per cent.
Answer: b)Both assertion (A) and reason (R) are true and reason is not the correct explanation of assertion.