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Free Practice Questions for Kerala Plus Two Economics (DHSE)

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Exam Review

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 review concepts for the Kerala Plus Two Economics (DHSE) exam. 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) Exam

Kerala Plus Two Economics is the Class 12 Higher Secondary public examination Economics paper under the Directorate of Higher Secondary Education (DHSE), Government of Kerala. It assesses Introductory Macroeconomics and Indian Economic Development aligned with NCERT Class 12 textbooks and Kerala HSE/SCERT pathways: national income accounting, money and banking, determination of income and employment, government budget, open-economy macroeconomics, India’s development experience and 1991 reforms, human capital, rural development, employment, environment and sustainable development, and comparative development (India with China and Pakistan). Official assessment combines Terminal Evaluation (TE) with Continuous Evaluation (CE); the TE theory paper is mixed objective + subjective and commonly lasts about 2.5 hours. Fees and exact blueprints are notified on dhsekerala.gov.in and hseportal.kerala.gov.in; pass is commonly framed as D+/about 30% under TE+CE rules. The 100 questions on this page are a free English-language multiple-choice study adaptation with step-by-step calculations; they are not a full simulation of the official mixed TE paper or CE requirements.

Exam sponsor: Directorate of Higher Secondary Education (DHSE), Directorate of General Education, Government of Kerala. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Official Kerala DHSE Plus Two Economics is assessed as Terminal Evaluation (TE) plus Continuous Evaluation (CE). The public TE paper is a mixed written examination — objective-style items plus short and long answers — commonly lasting about 2.5 hours. Syllabus units follow NCERT Class 12 Introductory Macroeconomics (national income accounting; money and banking; determination of income and employment; government budget; open-economy macroeconomics) and Indian Economic Development (development experience and policies; human capital; rural development; employment; environment and sustainable development; comparative development). This practice bank is an English-language MCQ study adaptation for concept and calculation fluency — it does not simulate official attempt limits, subjective long answers, CE project/assignment evidence, or full TE blueprint marks.

Time Limit

About 2.5 hours (Terminal Evaluation theory; confirm the year’s date sheet)

Passing Score

Commonly described as D+ / about 30% of total marks under TE+CE grading rules as notified by DHSE for the year; verify the current result and grading circular.

Exam / Certification Fees

As notified by DHSE / Directorate of General Education and paid through Higher Secondary schools for regular Plus Two sittings (no single fixed public subject fee for all categories).

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

~14% of this local bank

National Income Accounting

GDP/GNP/NNP identities, factor cost vs market price, three methods of measuring NI, real vs nominal GDP, and GDP–welfare limits.

~12% of this local bank

Money and Banking

Functions of money, commercial bank credit creation, money multiplier, and RBI credit-control tools.

~12% of this local bank

Determination of Income and Employment

AD components, APC/MPC/APS/MPS, consumption function, investment multiplier, and equilibrium income.

~10% of this local bank

Government Budget and the Economy

Revenue and capital budget items, revenue/fiscal/primary deficits, and fiscal policy goals.

~10% of this local bank

Open Economy Macroeconomics

BOP accounts, autonomous vs accommodating transactions, flexible/fixed exchange rates, depreciation vs devaluation.

~15% of this local bank

Indian Development Experience & Policies

Eve-of-independence structure, planning 1947–90, Green Revolution context, and LPG reforms since 1991.

~17% of this local bank

Human Capital, Rural Development & Employment

Education and health as human capital, rural credit and marketing, formal vs informal work, and unemployment types.

~10% of this local bank

Environment & Comparative Development

Environment–development trade-offs, sustainable development, and India–China–Pakistan comparative indicators.

Preparing for the Kerala Plus Two Economics (DHSE) Exam

What You Need to Know

  • Passing score: Commonly described as D+ / about 30% of total marks under TE+CE grading rules as notified by DHSE for the year; verify the current result and grading circular.
  • Assessment: Official Kerala DHSE Plus Two Economics is assessed as Terminal Evaluation (TE) plus Continuous Evaluation (CE). The public TE paper is a mixed written examination — objective-style items plus short and long answers — commonly lasting about 2.5 hours. Syllabus units follow NCERT Class 12 Introductory Macroeconomics (national income accounting; money and banking; determination of income and employment; government budget; open-economy macroeconomics) and Indian Economic Development (development experience and policies; human capital; rural development; employment; environment and sustainable development; comparative development). This practice bank is an English-language MCQ study adaptation for concept and calculation fluency — it does not simulate official attempt limits, subjective long answers, CE project/assignment evidence, or full TE blueprint marks.
  • Time limit: About 2.5 hours (Terminal Evaluation theory; confirm the year’s date sheet)
  • Exam / certification fees: As notified by DHSE / Directorate of General Education and paid through Higher Secondary schools for regular Plus Two sittings (no single fixed public subject fee for all categories). Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

Kerala Plus Two Economics (DHSE): Suggested Study Strategy

1Practice official-style Kerala DHSE model and previous Economics papers under timed ~2.5 h conditions so you can switch from MCQ drills to written short and long answers.
2Keep a formula sheet for GDP identities, APC/MPC, the investment and money multipliers, and deficit definitions (revenue, fiscal, primary).
3For national-income numericals, write the identity first (e.g., NNPFC = GNPMP − depreciation − NIT + NFIA) before substituting numbers.
4Map Indian Economic Development chapters to timelines: 1947–90 planning features, 1991 LPG reforms, then human capital, rural, employment, and environment policy themes.
5Separate monetary policy tools (CRR, SLR, repo) from fiscal deficit concepts so money and budget questions do not blur.
6Use English-medium NCERT phrasing if you study in English; Malayalam-medium candidates should also practise official Malayalam wording from school/DHSE sources.

Frequently Asked Questions

Is the official Kerala DHSE Plus Two Economics exam pure multiple-choice?

No. Official Kerala Plus Two Economics uses Terminal Evaluation (TE) plus Continuous Evaluation (CE). The TE paper is mixed — objective-style items with short and long written answers. This bank is an English-language multiple-choice study adaptation for concepts and calculations only — not an official paper simulation.

What is TE and CE in Kerala Higher Secondary Economics?

Terminal Evaluation (TE) is the public written examination; Continuous Evaluation (CE) covers school-based assessment components as prescribed by DHSE. Exact TE/CE weightage and CE tasks are published in the year’s scheme and school instructions.

How long is the Kerala Plus Two Economics TE paper?

Terminal Evaluation theory papers for many Plus Two subjects, including Economics, are commonly scheduled for about 2.5 hours. Confirm the year’s date sheet and subject instructions on dhsekerala.gov.in or hseportal.kerala.gov.in.

What is the passing score for Kerala Plus Two Economics?

Pass is commonly framed as a D+ grade floor around 30% of total marks under TE+CE grading rules as notified. Always verify the current DHSE result and grading circular for your examination year.

How much does the Kerala Plus Two Economics exam cost?

Economics is not sold as a separate marketplace product. Fees are notified by DHSE and paid through Higher Secondary schools for regular candidates. Check dhsekerala.gov.in for the current fee circular.

What syllabus does this bank follow?

It is aligned to NCERT Class 12 Introductory Macroeconomics and Indian Economic Development as used in Kerala Higher Secondary Economics pathways: national income, money and banking, income determination, government budget, open economy, development experience and policies, human capital, rural development, employment, environment, and comparative development.

Does this bank replace official model papers?

No. Use this free English MCQ bank for concept and calculation drill, then practise official-style mixed TE papers and complete CE requirements as directed by your school and DHSE notices.

Where can I find official Kerala DHSE notices?

Start at https://www.dhsekerala.gov.in and the Kerala Higher Secondary portal https://www.hseportal.kerala.gov.in for circulars, timetables, and scheme of examination updates.