Q1
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative given below :
Assertion (A) : Full employment situation refers to absence of involuntary unemployment.
Reason (R) : Under full employment situation, all the willing and able bodied people get employment at the prevailing wage rate.
- 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, but 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.
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Q2
mcq
1 mark
The above mentioned transactions will be recorded on __________ side of __________ account of Balance of Payments of India. (Choose the correct alternative to fill in the blanks)
- A. Debit, Current
- B. Credit, Capital
- C. Credit, Current
- D. Debit, Capital
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Q3
mcq
1 mark
Identify the incorrect feature(s) of money supply $(M_1)$ from the following:
- A. (i) and (ii)
- B. (ii) and (iii)
- C. (ii) only
- D. (iii) only
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Q4
mcq
1 mark
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and __________. (Choose the correct alternative to fill in the blanks)
- A. Autonomous Consumption, Autonomous Investments
- B. Autonomous Investments, Induced Consumption
- C. Induced Investments, Autonomous Investments
- D. Autonomous Consumption, Induced Consumption
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Q5
mcq
1 mark
Find the missing figures and choose the correct alternative:
- A. 1000, 800, 20000, 25000
- B. 5000, 3200, 25000, 20000
- C. 1000, 3200, 25000, 20000
- D. 1000, 800, 20000, 25000
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Q6
mcq
1 mark
Surplus in Balance of Payments (BOP) refers to the excess of ___________. (Choose the correct alternative to fill in the blank)
- A. autonomous receipts over autonomous payments
- B. autonomous receipts over current account payments
- C. capital account payments over capital account receipts
- D. autonomous payments over autonomous receipts
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Q7
mcq
1 mark
For a hypothetical economy, assume that:
C = 100 + 0.75Y
(where $C =$ consumption and $Y =$ income)
$I_0 = 400$ ($I_0 =$ autonomous investment)
The value of investment multiplier $(K)$ will be __________.
- A. 5
- B. 4
- C. 6
- D. 3
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Q7
mcq
1 mark
Suppose for a hypothetical economy:
$C = 100 + 0.75Y$ (where $C =$ Consumption and $Y =$ Income)
$I_0 = 400$ ($I_0 =$ Autonomous Investment)
Value of Investment Multiplier ($K$) would be ____________. (Choose the correct alternative to fill in the blank)
- A. 5
- B. 4
- C. 6
- D. 3
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Q8
mcq
1 mark
Assume that a hypothetical economy has trade balance of $500$ favorable balance. Value of import is $1200$ and value of export is $400$. The value of merchandise imports will be __________.
- A. 1700
- B. 750
- C. 700
- D. 900
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Q8
mcq
1 mark
Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of $500$ crore. The values of merchandise exports are $1200$ crore and transfer payments are $400$ crore. The value of merchandise imports would be __________ crore. (Choose the correct alternative to fill in the blank)
- A. 1700
- B. 750
- C. 700
- D. 900
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Q9
mcq
1 mark
Read the following statements carefully:
1. If in an economy, there is an increase in the level of income, then it will always increase consumption level in the economy in an autonomous manner.
2. Marginal propensity to consume $(MPC)$ and marginal propensity to save $(MPS)$ are always equal to each other.
From the above statements, choose the correct alternative:
- A. Statement 1 is true and Statement 2 is false.
- B. Statement 1 is false and Statement 2 is true.
- C. Both Statement 1 and 2 are true.
- D. Both Statement 1 and 2 are false.
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Q9
mcq
1 mark
Read the following statements carefully:
Statement 1: If in an economy the level of income increases ($Y$), it will always proportionately increase the level of consumption ($C$).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.
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.
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Q10
mcq
1 mark
Identify the correct equation from the following:
- A. $GDP_{MP} = NNP_{FC} +$ Depreciation
- B. $NDP_{FC} = NNP_{FC} +$ Net Indirect Taxes
- C. $GNP_{MP} = GDP_{MP} +$ Net Factor Income from Abroad
- D. $NNP_{FC} = NDP_{MP} +$ Depreciation
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Q11
long answer
3 marks
(a) On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost ($NDP_{FC}$):
S. No. Items Amount (in crore)
(i) Gross Domestic Fixed Capital Formation 300
(ii) Exports 70
(iii) Government Final Consumption Expenditure 400
(iv) Consumption of Fixed Capital 50
(v) Household Final Consumption Expenditure 590
(vi) Inventory Investment (Net) 60
(vii) Imports 80
(viii) Net Indirect Taxes 50
(ix) Net Factor Income from Abroad 40
OR
(b) (i) Elaborate the concept of Externalities with the help of suitable example.
(ii) Define Operating Surplus.
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Q11
short answer
3 marks
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost ($\mathrm{NDP}_{FC}$):
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Q11
short answer
2 marks
Elaborate the concept of Externalities with the help of suitable example.
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Q12
short answer
3 marks
Distinguish between fixed exchange rate system and flexible exchange rate system.
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Q14
short answer
4 marks
Complete the following table. Construct/Express the Consumption function at $< 200$ crore level of income.
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Q14
short answer
4 marks
Explain its impact on the level of output, income and employment.
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Q15
short answer
2 marks
Justify the following statements with valid arguments:
(a) Money serves as the medium of exchange for transactional purposes in an economy.
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Q16
short answer
2 marks
Study the following chart carefully and analyse the changing trends in the government expenditure on: (I) Agriculture and Allied Activities (II) Transport
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Q17
short answer
3 marks
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
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Q18
mcq
1 mark
Read the following statements carefully: Statement 1: Under the colonial rule, basic infrastructure (like railways, post and telegraph etc.) was developed. Statement 2: The real motive behind the infrastructural development in India was to strengthen the British interests. 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.
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Q19
mcq
1 mark
Identify which of the following alternatives indicate the incorrect components combination of Agriculture Marketing System:
- A. Assembling, Storage, Processing, Packaging
- B. Production, Assembling, Processing, Grading
- C. Assembling, Processing, Packaging, Transportation
- D. Processing, Packaging, Grading, Distribution
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Q20
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative given below: Assertion (A): World Trade Organization (WTO) is expected to establish the rule-based trading regime, to avoid unilaterally placed arbitrary restrictions by member nations. Reason (R): It is imperative to enlarge world production and ensure optimum utilization of world resources along with environmental protection. Alternatives:
- 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, but 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.
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Q22
mcq
1 mark
Identify from the following alternatives the incorrect objectives of regulated agriculture market:
- A. (i) and (ii)
- B. (i) and (iii)
- C. (iii) and (iv)
- D. (ii) and (iv)
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Q23
short answer
4 marks
Study the following chart carefully and analyse the changing trends in the government expenditure on:
(I) Agriculture and Allied Activities
(II) Transport
TREND OF MAJOR ITEMS OF EXPENDITURE ($\text{lakh crore}$)
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Q23
mcq
1 mark
Economic reforms were introduced in India and Pakistan in the years __________ and __________, respectively. (Choose the correct alternative to fill in the blanks)
- A. 1988, 1978
- B. 1991, 1978
- C. 1991, 1988
- D. 1981, 1991
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Q24
short answer
4 marks
Explain the stabilisation function of the Government Budget.
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Q24
mcq
1 mark
Read the following statements carefully : 1
Statement 1 : As per the National Sample Survey Organization (NSSO), unemployment is a situation in which all those who, owing to lack of work, are not working, but are seeking work from prospective employers. They express their willingness/availability to work under the prevailing conditions of work and remuneration.
Statement 2 : Disguised Unemployment is generally a massive problem in a highly populated country like India.
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.
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Q25
short answer
2 marks
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer:
(i) Interest received on loan.
(ii) Disinvestment receipts from the sale of a government company.
(iii) Financial assistance by the Government of USA for promoting girl education in India.
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Q25
mcq
1 mark
Identify which of the following is a member country of G-20:
- A. Brazil
- B. Australia
- C. Bangladesh
- D. Argentina
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Q26
short answer
3 marks
Discuss briefly the concept of circular flow of income in a two-sector model.
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Q26
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative given below : 1
Assertion (A) : The excessive regulation of permit license raj prevented certain private firms from becoming fairly competitive.
Reason (R) : Private sector wasted huge amounts in obtaining licenses rather than on improving the product quality and international competitiveness.
Alternatives :
- 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, but 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.
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Q27
short answer
economic growth of a nation as compared to the Nominal Gross
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Q27
mcq
1 mark
In the decade of the 1970s, Pakistan nationalized its ________ industries.
(Choose the correct alternative to fill in the blank) 1
- A. Medical infrastructure
- B. Consumer goods
- C. Capital goods
- D. Foreign trade
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Q27
mcq
1 mark
In the decade of the 1970s, Pakistan nationalized its ________ industries.
- A. Medical infrastructure
- B. Consumer goods
- C. Capital goods
- D. Foreign trade
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Q28
short answer
service
(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid statement. 1
(ii) Elaborate the likely impacts of this source on the economic development of India. 2
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Q30
short answer
2 marks
(a) Explain the consequences of one-child policy adopted by China in the 1970s.
(b) Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of China.
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Q31
long answer
(a) State and elaborate whether the following statements are true or false, with valid arguments:
(i) In the recent past, the Government of India has taken crucial steps, like Jan-Dhan Yojana, for efficient allocation of financial resources.
(ii) Worker population ratio is an indicator, used for analyzing the employment situation in a nation.
OR
(b) (i) ...
(ii) Mention any two examples of diversification activities in the non-agro processing industries.
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Q32
short answer
3 marks
(a) State any two advantages of micro-credit system of financing in rural areas of India.
(b) ... Justify the given statement.
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Q33
long answer
4 marks
(a) (i) Explain the consequences of the measures taken by the Government of India under economic reforms in the financial sector.
(ii) State whether the following statement is true or false with valid arguments.
OR
(b) (i) Every coin has two sides debate over farm subsidies is one such classic example of the same. Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.
(ii) State the importance of growth with equity of Indian economic planning.
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Q40
long answer
3 marks
Elaborate the reasons owing to which the private sector was regulated under the Industrial Policy Resolution, 1956. 3
OR
(b) ing the colonial period the agricultural sector showed massive
Do you agree with the given statement ? Justify your answer with valid arguments. 3
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Q46
short answer
1 mark
State any two advantages of micro-credit system of financing in rural areas of India.
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Q48
short answer
3 marks
Reject or support the given statement with valid arguments.
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Q49
short answer
3 marks
Clarify how the Green Revolution enabled the government to procure sufficient food grains to build stocks to be used during the times of food shortages.
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Q50
long answer
4 marks
Every coin has two sides debate over farm subsidies is one such classic example of the same. Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.
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Q51
short answer
2 marks
State the importance of growth with equity of Indian economic planning.
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In order to address two major environmental concerns in India, viz. water and air pollution, the government set up the Central Pollution Control Board (CPCB) in 1974. This was followed by states establishing their own state level boards to address all the environmental concerns. They investigate, collect and disseminate information relating to water, air and land pollution, lay down standards for sewage/trade effluent and emissions. These boards provide technical assistance to governments in promoting cleanliness of streams and wells by prevention, control and abatement of water pollution, and improve the quality of air and to prevent, control or abate air pollution in the country. These boards also carry out and sponsor investigation and research relating to problems of water and air pollution and for their prevention, control or abatement. They organize, through mass media, a comprehensive mass awareness programme for the same. The PCBs prepare manuals, codes and guidelines relating to treatment and disposal of sewage and trade effluents. They assess the air quality through regulation of industries. In fact, state boards, through their district level officials, periodically inspect every industry under their jurisdiction to assess the adequacy of treatment measures provided to treat the effluent and gaseous emissions. It also provides background air quality data needed for industrial siting and town planning. The pollution control boards collect, collate and disseminate technical and statistical data relating to water pollution. They monitor the quality of water in 125 rivers (including the tributaries), wells, lakes, creeks, ponds, tanks, drains and canals.
Q52
short answer
1 mark
State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.
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Q53
short answer
2 marks
Explain any two functions performed by the Central Pollution Control Board (CPCB).
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Q54
long answer
3 marks
Elaborate any two strategies to ensure sustainable development as adopted by India.
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