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100+ Free Kerala Plus Two Economics (DHSE) Practice Questions

Kerala Directorate of Higher Secondary Education (DHSE) Plus Two / Higher Secondary Class 12 Economics practice questions are available now; exam metadata is being verified.

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2026 Statistics

Key Facts: Kerala Plus Two Economics (DHSE) Exam

TE + CE

Official Kerala Plus Two Economics assessment pattern

DHSE Higher Secondary scheme of examination reporting

~2.5 hours

Typical Terminal Evaluation theory duration (confirm date sheet)

Kerala HSE exam logistics reporting

D+ / ~30%

Commonly described pass floor under TE+CE grading (verify circular)

DHSE grading / pass criteria reporting

Macro + IED

NCERT Class 12 Introductory Macroeconomics and Indian Economic Development focus

Kerala HSE Economics pathway / NCERT Class 12 texts

Mixed TE paper

Official TE format is objective + subjective, not pure MCQ

DHSE Higher Secondary Economics examination pattern

English MCQ adaptation

This free local bank is not the official mixed TE paper or CE evidence

OpenExamPrep practice policy

Kerala DHSE Plus Two Economics is a Class 12 board subject with TE+CE assessment; TE theory is mixed objective + subjective and often about 2.5 hours. Pass is commonly D+/~30% as notified. Fees are paid through schools. This free 2026 bank is an English MCQ study adaptation — not an official paper simulation.

Sample Kerala Plus Two Economics (DHSE) Practice Questions

Try these sample questions to test your Kerala Plus Two Economics (DHSE) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Gross Domestic Product (GDP) measures the market value of:
A.All intermediate goods produced in a year
B.Final goods and services produced within the domestic territory in a year
C.Only goods exported to other countries
D.Financial transfers such as gifts and pensions
Explanation: GDP is the market value of all final goods and services produced within a country’s domestic territory during an accounting year. Intermediate goods are excluded to avoid double counting; pure transfers are not production.
2Which of the following is a stock variable?
A.National income for 2025–26
B.Capital stock of a firm on 31 March
C.Exports during a financial year
D.Consumption expenditure over a quarter
Explanation: A stock is measured at a point in time. Capital stock on a given date is a stock; income, exports, and consumption over a period are flows.
3GNP at market prices equals GDP at market prices:
A.Minus net factor income from abroad
B.Plus net factor income from abroad
C.Minus depreciation only
D.Plus net indirect taxes only
Explanation: GNPMP = GDPMP + Net Factor Income from Abroad (NFIA). NFIA is factor income received from abroad minus factor income paid to abroad.
4Net Domestic Product at factor cost (NDPFC) is also called:
A.Personal income
B.Domestic income
C.Private income
D.Disposable income
Explanation: In NCERT national-income accounting, NDP at factor cost is referred to as domestic income — income generated by factors within the domestic territory.
5If GDPMP = ₹1,000 crore, depreciation = ₹100 crore, net indirect taxes = ₹80 crore, and NFIA = ₹20 crore, then NNPFC is:
A.₹840 crore
B.₹900 crore
C.₹940 crore
D.₹1,000 crore
Explanation: NNPFC = GDPMP − depreciation − net indirect taxes + NFIA = 1000 − 100 − 80 + 20 = 840 crore.
6Under the expenditure method, GDP at market prices is the sum of:
A.Wages + rent + interest + profit only
B.Private final consumption + government final consumption + gross capital formation + net exports
C.Sales of intermediate goods only
D.Tax revenue + non-tax revenue of government
Explanation: Expenditure method: GDPMP = C + G + I (gross capital formation including inventory change) + (X − M). Factor payments are the income method.
7Real GDP differs from nominal GDP because real GDP:
A.Includes intermediate goods while nominal GDP does not
B.Values output at constant (base-year) prices
C.Excludes government purchases
D.Is always larger than nominal GDP
Explanation: Nominal GDP uses current prices; real GDP uses constant base-year prices to isolate quantity change from price change.
8If nominal GDP is ₹1,200 and real GDP is ₹1,000, the GDP deflator is:
A.83.3
B.100
C.120
D.220
Explanation: GDP deflator = (Nominal GDP / Real GDP) × 100 = (1200/1000) × 100 = 120.
9Which item is treated as an intermediate good and therefore not counted separately in GDP?
A.A household’s purchase of a new car for personal use
B.Flour bought by a bakery to make bread for sale
C.A firm’s purchase of a new factory building
D.Government purchase of school textbooks for free distribution
Explanation: Flour used up in making bread is intermediate consumption. The final product (bread) captures its value. Household cars and new factory buildings are final investment/consumption; free textbooks are government final consumption.
10Using the value-added method, GDP equals the sum of:
A.Gross sales of all firms without subtracting intermediate costs
B.Value added by all producing units in the domestic territory
C.Only agricultural value added
D.Export earnings of residents abroad
Explanation: Value added = value of output − intermediate consumption. Summing value added across all domestic producing units yields GDP (with appropriate market-price adjustments).

About the Kerala Plus Two Economics (DHSE) Practice Questions

Verified exam format metadata for Kerala Directorate of Higher Secondary Education (DHSE) Plus Two / Higher Secondary Class 12 Economics is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.