Q1
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
Correct Answer: C —
Solution
The incorrect feature(s) of money supply $M_1$ are (ii) only. $M_1$ includes currency with the public, demand deposits with banks, and other deposits with the RBI. It does not include time deposits. Hence, the statement in (ii) is incorrect, while the other features of $M_1$ are correct.
Q2
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
Correct Answer: D —
Solution
The correct answer is (d) Autonomous Consumption, Induced Consumption. Under Keynesian economics, total consumption expenditure is made up of autonomous consumption (consumption even when income is zero) and induced consumption (consumption that rises with income). The other options involve investment, which is not part of consumption expenditure.
Q3
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
Correct Answer: A —
Solution
The correct alternative is (a) $1000, 800, 20000, 25000$. These are the figures that fit the intended balance-related calculation. The other options do not match the required relationship among the values.
Q4
mcq
1 mark
In Balance of Payments $(BOP)$, surplus means excess of __________.
- 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
Correct Answer: A —
Solution
In Balance of Payments, surplus means excess of autonomous receipts over autonomous payments. When autonomous receipts are greater than autonomous payments, the BOP shows a surplus. The other options are incorrect because they refer to current account payments or reverse the correct relationship.
Q4
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 payments over Autonomous receipts
- B. Current Account payments over Autonomous receipts
- C. Capital Account receipts over Capital Account payments
- D. Autonomous receipts over Autonomous payments
Correct Answer: D —
Solution
The correct answer is (d) Autonomous receipts over Autonomous payments. A Balance of Payments surplus occurs when autonomous receipts exceed autonomous payments. This is the standard definition of surplus in BOP.
Q5
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
Solution hidden
Log in to view solution →
Q6
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
Solution hidden
Log in to view solution →
Q7
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 Statement 1 and 2 are true.
- D. Both Statement 1 and 2 are false.
Solution hidden
Log in to view solution →
Q8
mcq
1 mark
Choose the correct equation from the following :
- A. $GDP_{MP} = NNP_{FC} +$ depreciation
- B. $NDP_{FC} = NNP_{FC} +$ indirect tax
- C. $GNP_{MP} = GDP_{MP} +$ net factor income from abroad
- D. $NNP_{FC} = NDP_{MP} +$ depreciation
Solution hidden
Log in to view solution →
Q9
mcq
1 mark
Assertion (A) and Reason (R). Choose the correct alternative from the options given below :
(A): Full employment refers to the absence of involuntary unemployment.
(R): In full employment situation, all able and willing workers 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.
Solution hidden
Log in to view solution →
Q9
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.
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.
Solution hidden
Log in to view solution →
Q10
mcq
1 mark
The net selling off worth $309$ crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 to 9th June, 2023, 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
Solution hidden
Log in to view solution →
Q11
short answer
3 marks
Distinguish between fixed exchange rate system and flexible exchange rate system.
Solution hidden
Log in to view solution →
Q12
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 400
(ii) Exports 80
(iii) Government Final Consumption Expenditure 500
(iv) Consumption of Fixed Capital 70
(v) Household Final Consumption Expenditure 640
(vi) Inventory Investment (Net) 80
(vii) Imports 90
(viii) Net Indirect Taxes 60
(ix) Net Factor Income from Abroad 50
Solution hidden
Log in to view solution →
Q15
long answer
3 marks
(i) Elaborate the concept of Externalities with the help of suitable example.
(ii) Define Operating Surplus.
Solution hidden
Log in to view solution →
Q16
long answer
4 marks
Ex-ante Aggregate Supply is more than ex-ante Aggregate Demand. Explain its impact on the level of output, income and employment.
Solution hidden
Log in to view solution →
Q17
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 ($NDP_{FC}$):
Solution hidden
Log in to view solution →
Q17
short answer
2 marks
17. (a) 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.
Solution hidden
Log in to view solution →
Q18
short answer
2 marks
Elaborate the concept of Externalities with the help of suitable example.
Solution hidden
Log in to view solution →
Q18
mcq
1 mark
18. In the decade of the 1970s, Pakistan nationalized its ________ industries. (Choose the correct alternative to fill in the blank)
- A. Medical infrastructure
- B. Consumer goods
- C. Capital goods
- D. Foreign trade
Solution hidden
Log in to view solution →
Q19
mcq
1 mark
19. 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.
Solution hidden
Log in to view solution →
Q20
short answer
2 marks
Money serves as a store of value in an economy.
Solution hidden
Log in to view solution →
Q20
mcq
1 mark
20. 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
Solution hidden
Log in to view solution →
Q21
short answer
2 marks
The Central Bank acts as in an economy.
Solution hidden
Log in to view solution →
Q21
mcq
1 mark
21. 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. A
Solution hidden
Log in to view solution →
Q22
short answer
3 marks
Discuss briefly the concept of circular flow of income in a two-sector model.
Solution hidden
Log in to view solution →
Q22
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative given below :
Assertion (A) : China has used the market mechanism to create additional social and economic opportunities for its citizens.
Reason (R) : Social infrastructure creation by the government has brought positive results in human development indicators in China.
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.
Solution hidden
Log in to view solution →
Q23
short answer
3 marks
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
Solution hidden
Log in to view solution →
Q23
mcq
1 mark
Identify from the following alternatives the incorrect objectives of regulated agriculture market :
- A. To make the marketing system efficient and effective for farmers to get best price of their products.
- B. To discourage improvement of marketing infrastructure for farmers.
- C. To prevent exploitation of farmers.
- D. To discourage farmers from improving quality and quantity of their produce.
Solution hidden
Log in to view solution →
Q24
short answer
2 marks
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer: Interest received on loan.
Solution hidden
Log in to view solution →
Q24
mcq
1 mark
Economic reforms were introduced in India and Pakistan in the years __________ and ____________, respectively.
- A. 1988, 1978
- B. 1991, 1978
- C. 1991, 1988
- D. 1981, 1991
Solution hidden
Log in to view solution →
Q25
short answer
2 marks
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer: Disinvestment receipts from the sale of a government company.
Solution hidden
Log in to view solution →
Q25
mcq
1 mark
Read the following statements carefully:
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.
Solution hidden
Log in to view solution →
Q26
short answer
2 marks
Financial assistance by the Government of USA for promoting girl education in India.
Solution hidden
Log in to view solution →
Q26
mcq
1 mark
Identify which of the following is not a member nation of G20:
- A. Brazil
- B. Australia
- C. Bangladesh
- D. Argentina
Solution hidden
Log in to view solution →
Q27
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative given below:
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.
Solution hidden
Log in to view solution →
Q28
short answer
The following statement refers to teacher training: "service training of the teachers"
(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid statement.
(ii) Elaborate the likely impacts of this source on the economic development of India.
Solution hidden
Log in to view solution →
Q29
long answer
3 marks
(a) Do you agree with the given statement? Justify your answer with valid arguments.
OR
(b) Elaborate the reasons owing to which the private sector was regulated under the Industrial Policy Resolution, 1956.
Solution hidden
Log in to view solution →
Q30
long answer
1 mark
(a) State any two advantages of micro-credit system in rural areas of India.
(b)
Solution hidden
Log in to view solution →
Q31
short answer
2 marks
Explain the consequences of one-child policy adopted by China in the 1970s.
Solution hidden
Log in to view solution →
Q32
short answer
2 marks
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.
Solution hidden
Log in to view solution →
Q42
short answer
2 marks
Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of China.
Solution hidden
Log in to view solution →
Q44
short answer
1 mark
(i) 3 (ii) Mention any two examples of diversification activities in the non-agro processing industries.
Solution hidden
Log in to view solution →
Q45
long answer
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.
Solution hidden
Log in to view solution →
Q46
short answer
3 marks
Reject or support the given statement with valid arguments.
Solution hidden
Log in to view solution →
Q47
short answer
3 marks
Justify the given statement with valid explanation.
Solution hidden
Log in to view solution →
Q48
short 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.
Solution hidden
Log in to view solution →
Q49
short answer
2 marks
State the importance of growth with equity of Indian economic planning.
Solution hidden
Log in to view solution →Reading Passage
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.
Q50
short answer
1 mark
State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.
Solution hidden
Log in to view solution →
Q51
short answer
2 marks
Explain any two functions performed by the Central Pollution Control Board (CPCB).
Solution hidden
Log in to view solution →
Q52
short answer
3 marks
Elaborate any two strategies to ensure sustainable development as adopted by India.
Solution hidden
Log in to view solution →