Q1
mcq
1 mark
Under the ___________ Exchange Rate System, the Central Bank can control the foreign exchange rate in a range bound manner. (Choose the correct option to fill in the blank)
- A. Fixed
- B. Flexible
- C. Managed floating
- D. Gold standard
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Q2
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative from the options given below :
Assertion (A) : Direct taxes are imposed on income/profits of individuals/companies.
Reason (R) : The burden of payment of direct taxes cannot be shifted to any other entity.
- 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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Q3
mcq
1 mark
___________, (Reference Line)__________ through the origin drawn at an angle of __________. (Choose the correct option to fill in the blank)
- A. 25
- B. 40
- C. 45
- D. 70
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Q3
mcq
1 mark
through the origin drawn at an angle of __________. (Choose the correct option to fill in the blank)
- A. 25
- B. 40
- C. 45
- D. 70
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Q4
mcq
1 mark
Read the following statements carefully :
Statement 1 : Marginal Propensity to Consume (MPC) refers to the consumption per unit of income.
Statement 2 : As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income.
In the light of the given statements, choose the correct option 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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Q5
mcq
1 mark
The main objective of measuring the primary deficit is to highlight present ______________. (Choose the correct option to fill in the blank)
- A. fiscal imbalances
- B. fiscal balances
- C. recovery of loans
- D. cash grant-in-aid
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Q6
mcq
1 mark
Read the following statements carefully:
Statement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.
Statement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.
In the light of the given statements, choose the correct option 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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Q7
mcq
1 mark
In a two-sector economy, the Aggregate Demand can be determined by adding __________ and __________. (Choose the correct option to fill in the blanks)
- A. consumption, investments
- B. investments, savings
- C. consumption, savings
- D. savings, exports
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Q8
mcq
1 mark
Read the following statements carefully:
Statement 1: The government may reduce the repo rate, to control deflationary gap prevailing in the economy.
Statement 2: The government may reduce the deflationary gap, by selling off government securities (G-Sec) in the open market.
In the light of the given statements, choose the correct option 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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Q9
mcq
1 mark
To arrive at the value of Gross Value Added at Factor Cost (GVA$_{FC}$), ______________ must be ___________ to/from Gross Value Added at Market Price (GVA$_{MP}$). (Choose the correct option to fill in the blanks)
- A. depreciation, added
- B. depreciation, subtracted
- C. Net Indirect Taxes, added
- D. Net Indirect Taxes, subtracted
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Q10
mcq
1 mark
Read the following statements carefully:
Statement 1: Public goods are those goods for which the payments are made by all the entities in the country.
Statement 2: Private goods are those goods which are provided by the government of a country at subsidised rates.
In the light of the given statements, choose the correct option 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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Q11
long answer
3 marks
(a) Explain any two precautions pertaining to the Income Method of Estimation of National Income in a country.
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Q12
short answer
3 marks
Justify the given statement with valid reasons.
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Q13
long answer
3 marks
(b) On the basis of the following hypothetical data: (in crore)
Year Nominal GDP Nominal GDP (adjusted to base year prices)
2020-21 3,000 5,000
2022-23 4,000 6,000
Calculate the percentage change in Real Gross Domestic Product (GDP) in the year 2022-23 using 2020-21 as the base year.
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Q13
long answer
4 marks
Read the following text carefully:
According to a report issued by a research organisation, there is a sharp decline in the overall demand in the economy, particularly in the private consumption segment. This dip in the macro economic variables, highlights the urgent need for strategic actions to stimulate economic activities.
On the basis of the given text and common understanding, explain the measure which
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Q14
short answer
4 marks
Elaborate any two components of the Capital Account under the Balance of Payments Account.
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Q14
short answer
4 marks
Distinguish between Autonomous transactions and Accommodating transactions.
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Q15
short answer
4 marks
Assuming the following for a hypothetical economy, estimate the Break-even level of Income and Equilibrium level of Income:
(i) Autonomous Consumption Expenditure = 50 crore
(ii) Marginal Propensity to Save (MPS) = 0.2
(iii) Autonomous Investments ($I_0$) = 100 crore
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Q16
short answer
4 marks
Suppose there are only three firms in an imaginary economy, viz. X, Y and Z. During a year, the following transactions took place in the economy:
(I) Firm X sold goods worth 20,000 to Firm Y and 12,000 to Firm Z.
(II) Firm Y sold goods worth 11,000 to Firm X and 35,000 to Firm Z.
(III) Firm Z sold goods worth 57,000 to households for final consumption.
On the basis of the given transactions, calculate the value of Gross Domestic Product at Market Price ($GDP_{MP}$) in the economy.
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Q16
short answer
2 marks
Discuss the likely impact of construction of 20 new hospitals in a country on the Gross Domestic Product (GDP) and Welfare in the economy.
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Q16
short answer
4 marks
On the basis of the following data, estimate the value of Net Domestic Product ($NDP_{FC}$):
S.No. | Items | Amount (in Crore)
(i) Household Consumption Expenditure | 800
(ii) Gross Business Fixed Capital Formation | 150
(iii) Gross Residential Construction Investment | 120
(iv) Government Final Consumption Expenditure | 270
(v) Excess of Imports over Exports | 20
(vi) Inventory Investments | 50
(vii) Gross Public Investments | 130
(viii) Net Indirect Taxes | 20
(ix) Net Factor Income from Abroad | 25
(x) Consumption of Fixed Capital | 40
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Q16
short answer
2 marks
Justify the statement giving valid reason.
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Q17
short answer
4 marks
Elaborate the process of Credit Creation using a suitable numerical example.
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different items to be evaluated against a common standard. It allows comparison of prices and
Q17
short answer
1 mark
Read the following text carefully:
different items to be evaluated against a common standard. It allows comparison of prices and
(i) On the basis of the given text, identify the indicated function of money.
(ii) List any other two functions of money.
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Q18
mcq
1 mark
Identify, which of the following does not indicate the similarities in the policies of India and Pakistan in the post 1947 period.
- A. Dual pricing policy
- B. Green revolution
- C. Import substitution
- D. Mixed economic system
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Q19
mcq
1 mark
Identify, which of the following statements is incorrect about the Rural Banking system in India. (Choose the correct option)
- A. In the post-independence period, a well-structured Rural Banking system was formulated in India.
- B. Rural Banking system in India consists of a set of multi-agency institutions.
- C. Regional Rural Banks, Cooperative and Land Development Banks are few important components of Rural Banking system in India.
- D. Rural Banking system in India works under the guidance, instruction and supervision of the State Bank of India.
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Q20
mcq
1 mark
In the post-independence era, the policy makers of India pushed for - (Choose the correct option to fill in the blank)
- A. 8
- B. 7
- C. 6
- D. 5
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Q21
mcq
1 mark
Production of diverse varieties of crops rather than one specialized crop is known as diversification of ___________. (Choose the correct option to fill in the blank)
- A. crops
- B. agricultural production
- C. sectoral composition
- D. employment
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Q22
mcq
1 mark
Identify, which of the following statements is incorrect about the functions of environment. (Choose the correct option)
- A. Provides resources
- B. Absorbs wastage
- C. Sustains life
- D. Deteriorates quality of life
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Q23
mcq
1 mark
Read the following statements carefully :
Statement 1 : The Food Corporation of India maintains buffer stocks of wheat and rice as a measure to improve market mechanism.
Statement 2 : Minimum Support Price (MSP) is imposed by the government to safeguard the interest of farmers.
In the light of the given statements, choose the correct option 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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Q24
mcq
1 mark
Suppose an economy is experiencing a situation of rise in Real Gross Domestic Product (GDP), without any corresponding rise in the employment opportunities. In economic parlance, such a situation is termed as __________ growth. (Choose the correct option to fill in the blank)
- A. casual
- B. informal
- C. formal
- D. jobless
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Q25
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative from the options given below :
Assertion (A) : Excessive regulation of permit license raj prevented certain private firms from becoming more efficient.
Reason (R) : Private sector wasted a significant time in obtaining licenses rather than enhancing product quality and international competitiveness.
Options :
- 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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Q26
mcq
1 mark
Read the following statements carefully :
Statement 1 : The British policies were accountable for commercialisation of Indian agriculture.
Statement 2 : In the larger interest of Indians, the British rulers focused on the infrastructural growth of India.
In the light of the given statements, choose the correct option 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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Q27
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative from the options given below:
Assertion (A): Information plays a crucial role in judicious decision-making about investing in human capital.
Reason (R): Individuals invest to acquire information about the labour market and other areas such as education and healthcare.
Options:
- 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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Q28
short answer
3 marks
Elaborate the reasons responsible for emergence of poverty in Pakistan.
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Q29
short answer
3 marks
(b) Appraise the Navratan policy adopted by the Government of India in the reforms of 1991.
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Q30
short answer
2 marks
(a)(i) Distinguish between human capital and physical capital.
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Q30
short answer
2 marks
(a)(ii) sustainable development in rural areas.
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Q30
short answer
3 marks
(b)(i) Critically appraise the micro-credit programmes in rural India.
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Q30
short answer
1 mark
(b)(ii) State the meaning of sustainable development.
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Q32
short answer
2 marks
State and elaborate whether the following statements are true/false, with valid arguments:
(a) Organic farming offers a means to substitute costlier agricultural inputs with locally produced organic inputs.
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Q32
short answer
2 marks
State and elaborate whether the following statements are true/false, with valid arguments:
(b) Informalisation of workforce in India has increased various concerns on the front of employment generation among the youth of the country.
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Indian labour market indicators have improved in the last six years, as per the Periodic Labour Force Survey Data. The unemployment rate has fallen to 3.2% in 2022 23. Rising youth and female participation in the workforce present an opportunity to tap the demographic and gender dividend. The factory employment data exhibits the bounce back of the organised manufacturing sector in FY 2022 23 with rise in employment and the upscaling of factories. The net payroll additions under EPFO have more than doubled in the past five years, signalling healthy growth in formal employment. To generate and sustain quality employment, agro-processing and care economy are two promising candidates.
Q33
short answer
2 marks
(b) Identify any two sectors which may be highlighted as promising for generating quality employment in India.
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Q33
short answer
(c) Elaborate the meaning of disguised unemployment
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Indian labour market indicators have improved in the last six years, as per the Periodic Labour Force Survey Data. The unemployment rate has fallen to 3·2% in 2022 23. Rising youth and female participation in the workforce present an opportunity to tap the demographic and gender dividend. The factory employment data exhibits the bounce back of the organised manufacturing sector in FY 2022 23 with rise in employment and the upscaling of factories. The net payroll additions under EPFO have more than doubled in the past five years, signalling healthy growth in formal employment. To generate and sustain quality employment, agro-processing and care economy are two promising candidates.
Q45
short answer
1 mark
State any one significance of rising youth and female participation in the Indian workforce.
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Q46
long answer
3 marks
Elaborate the meaning of disguised unemployment with the help of a suitable example.
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Q47
short answer
2 marks
Distinguish between Multilateral Trade and Bilateral Trade.
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Q48
long answer
4 marks
Discuss briefly the foreign exchange reforms undertaken by the Government of India in the post 1991 period.
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Q49
short answer
2 marks
Distinguish between Tariffs and Quotas.
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