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Q2
mcq
1 mark
Identify, which of the following does not represent a public good. (Choose the correct option)
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A.
Free vaccines provided by the government
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B.
Defence services provided by the military
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C.
Purchase of railway ticket by an individual
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D.
Street light installed by a city municipality
Q3
mcq
1 mark
Market forces of demand and supply, actively interact under _________ exchange rate system to determine the foreign exchange rate. (Choose the correct option to fill in the blank)
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A.
fixed
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B.
flexible
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C.
managed floating
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D.
fixed floating
Q4
mcq
1 mark
Read the following statements carefully :
Statement 1 : During deflationary gap, the Central Bank of a country may increase the repo rate.
Statement 2 : The government can reduce the deflationary gap by purchasing Government Securities (G-Sec) in the open market.
In the light of the given statements, choose the correct option from the following :
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A.
Statement 1 is true and Statement 2 is false.
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B.
Statement 1 is false and Statement 2 is true.
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C.
Both Statements 1 and 2 are true.
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D.
Both Statements 1 and 2 are false.
Q5
mcq
1 mark
Under the Keynesian framework, the 45° line is a straight line through the origin drawn at an angle of __________.
(Choose the correct option to fill in the blank)
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A.
25°
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B.
45°
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C.
55°
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D.
75°
Q6
mcq
1 mark
According to the data presented in the Union Budget 2023-24, the total receipts of the government (other than borrowings), and the total expenditure are estimated as 20 lakh crore and 45 lakh crore respectively. Therefore, the value of _________ deficit would be 25 lakh crore. (Choose the correct option to fill in the blank)
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A.
revenue
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B.
fiscal
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C.
trade
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D.
primary
Q7
mcq
1 mark
Read the following statements carefully:
Statement 1: Marginal Propensity to Consume (MPC) exhibits the consumption per unit of income.
Statement 2: As the national income of a country rises, the proportionate increase in the consumption is always more than the increase in the income.
In the light of the given statements, choose the correct option from the following:
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A.
Statement 1 is true and Statement 2 is false.
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B.
Statement 1 is false and Statement 2 is true.
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C.
Both Statements 1 and 2 are true.
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D.
Both Statements 1 and 2 are false.
Q8
mcq
1 mark
In a two-sector economy, Aggregate Supply can be determined by adding __________ and __________.
(Choose the correct option to fill in the blanks)
-
A.
consumption, investments
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B.
investments, savings
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C.
consumption, savings
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D.
savings, exports
Q9
mcq
1 mark
Read the following statements carefully:
Statement 1: Foreign aids are the capital receipts for the government.
Statement 2: Disinvestments may lead to a decrease in the assets of the government.
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.
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C.
Both Statements 1 and 2 are true.
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D.
Both Statements 1 and 2 are false.
Q10
mcq
1 mark
From the following, identify the situation which indicates the Current Account Surplus (CAS) in Balance of Payments (BOP) account of a nation.
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A.
Excess of receipts on current account over the payments on current account.
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B.
Equality of receipts on current account and payments on current account.
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C.
Excess of payments on current account over receipts on current account.
-
D.
Excess of payments on current account over receipts on capital account.
Q11
long answer
3 marks
(a) State the steps pertaining to the estimation of National Income, under the Income Method.
OR
(b) On the basis of the following hypothetical data, calculate the percentage change in Real Gross Domestic Product (GDP) in the year 2022-23, using 2020-21 as the base year.
(All figures in crore)
Year | Nominal GDP | Nominal GDP (Adjusted to Base Year Price)
2020-21 | 3,000 | 5,000
2022-23 | 4,000 | 6,000
Q12
long answer
3 marks
Due to the outbreak of geopolitical conflict, the result was higher international prices for fertilizer and fuel. Thus, there was a higher fuel and fertilizer subsidy.
On the basis of given text, identify and explain the indicated objective of the government budget.
Q13
long answer
4 marks
(a) In 2023-24, India recorded Foreign Direct Investments (FDI) inflows of US $ 70.9 Bn and net Foreign Portfolio Investments (FPI) inflows of US $ 32.4 Bn.
(i) Distinguish between the above mentioned economic variables.
(ii) In which account of Balance of Payments will the given variables be entered and why ?
OR
(b) Explain how Accommodating Transactions differ from Autonomous Transactions.
Q14
long answer
4 marks
Suppose for two imaginary economies A and B, the value of Marginal Propensity to Consume (MPC) stands at 0.8 and 0.6 respectively.
For both the economies, if investment (I) = 400 and income (Y) = 2,000,
(i) Identify the Break-even level.
(ii) Find the value of __________.
Q18
mcq
1 mark
Production of diverse varieties of crops, rather than one specialised crop, is known as diversification of ___________. (Choose the correct option to fill in the blank)
-
A.
Crops
-
B.
Agricultural Production
-
C.
Sectoral Composition
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D.
Employment
Q19
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct option from the options given below : Assertion (A) : People spend to acquire information related to labour and other markets (like, education and health). Reason (R) : Expenditure on information is necessary for efficient utilisation of the human capital stock. Options : (A) Both Assertion (A) and Reason (R) are true and Reason (R) i
Q20
mcq
1 mark
In the post-independence era, the policy makers of India emphasised on __________. (Choose the correct option to fill in the blank)
Q21
mcq
1 mark
Identify, which of the following statements is incorrect about the Rural Banking system in India. (Choose the correct option)
-
A.
The Rural Banking system in India consists of a set of multi-agency institutions.
-
B.
In the post-independence period, a well-structured Rural Banking system was formulated in India.
-
C.
Regional Rural Banks, Cooperative and Land Development Banks are components of the Rural Banking system in India.
-
D.
The Rural Banking system in India works under the guidance, instruction and supervision of the State Bank of India.
Q22
mcq
1 mark
Identify, which of the following statements is incorrect about the functions of environment. (Choose the correct option)
-
A.
Environment provides resources.
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B.
Environment absorbs wastage.
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C.
Environment sustains life.
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D.
Environment deteriorates quality of life.
Q23
mcq
1 mark
Read the following statements Assertion (A) and Reason (R). Choose the correct alternative from the options given below : Assertion (A) : Under the financial sector reforms introduced in 1991, foreign investment limit in banks was raised up to around 74%. Reason (R) : Foreign Institutional Investors (FIIs) were allowed to invest in Indian financial markets, post-1991. 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.
Q24
mcq
1 mark
Real Gross Domestic Product (GDP), without any corresponding adequate employment generation, is termed as __________ growth. (Choose the correct option to fill in the blank)
-
A.
Casual
-
B.
Informal
-
C.
Formal
-
D.
Jobless
Q25
mcq
1 mark
Read the following statements carefully : Statement 1 : The British policies led to huge employment generation in the secondary and tertiary sectors of the Indian Economy. Statement 2 : development was to benefit interests of 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.
Q26
mcq
1 mark
Read the following statements carefully : Statement 1 : The purchase of food grains, made by the government on the Minimum Support Price (MSP), is maintained as buffer stock. Statement 2 : Minimum Support Price (MSP) safeguards the farmers against any sharp fall in farm product prices. 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
Q27
mcq
1 mark
Study the following image carefully:
From the following, choose the correct option which indicates similarities in the policies of India and Pakistan, in the post-1947 period:
-
A.
Dual pricing policy
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B.
Commune system
-
C.
Import substitution
-
D.
Great Proletarian Cultural Revolution
Reading Passage
Sectoral Share of Employment and GVA (%) in 2018 19
Sector Contribution to GVA Distribution of Workforce
India China Pakistan India China Pakistan
Agriculture 16 7 24 43 26 41
Industry 30 41 19 25 28 24
Services 54 52 57 32 46 35
Total 100 100 100 100 100 100
Q29
long answer
3 marks
Using the following data, analyse the sectoral contribution of India and Pakistan towards Gross Value Added (GVA).
Reading Passage
China underwent substantial policy changes to stimulate their economy.
sectors. However, India had to wait much longer for its economic
after the economic reforms of 1991, which were implemented out of
compulsion.
Q30
long answer
4 marks
Read the following text carefully:
China underwent substantial policy changes to stimulate their economy.
sectors. However, India had to wait much longer for its economic
after the economic reforms of 1991, which were implemented out of
compulsion.
On the basis of given text and common understanding, compare the impact of subsequent reforms initiated by China and India.
Q31
long answer
3 marks
(a) (i) Distinguish between human capital and physical capital.
(ii) Define Sustainable Development.
OR
(b) (i) Describe briefly the importance of micro-credit programmes in Rural India.
(ii) State any one strategy involved in attaining sustainable development in India.
Reading Passage
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99.2 million persons between 2000 and 2019. The labour force grew from 396.3 million to 495.5 million.
During 2012 to 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
The global average of 47.3%.
During 2000 to 2019, rural LFPR declined by 14.1%, compared to a 3.5% decline in urban areas. This trend reversed between 2019 and 2022, with rural LFPR increasing by 6% (especially among rural women) and urban labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
Q31
short answer
2 marks
Write the meaning of Labour Force Participation Rate (LFPR).
Q32
short answer
2 marks
State and elaborate whether the following statements are true/false, with valid arguments:
(a) The Indian economy has shown satisfactory progress towards formalization of workforce in the recent years.
(b) In the Indian rural landscape, agricultural diversification has emerged as a reasonable alternative to fill up the gaps in income.
Q32
short answer
3 marks
Comment upon the gender disparities in rural and urban Labour Force Participation Rate (LFPR) during 2000 to 2019.
Q33
long answer
4 marks
(a) (i) Do you agree with the given statement? Justify your answer with valid arguments.
(ii) State how multilateral trade is different from bilateral trade.
OR
(b) (i) Discuss briefly, causes and consequences of the tax reforms initiated during economic reforms in India.
(ii) Give one example each of a Navratna and a Maharatna company in the public sector in India.
Reading Passage
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99.2 million persons between 2000 2019. The labour force grew from 396.3 million to 495.5 million.
During 2012 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
the global average of 47.3%.
During 2000 2019, rural LFPR declined by 14.1%, compared to a 3.5% decline in urban areas. This trend reversed between 2019 2022, with rural
Q34
long answer
1 mark
Read the following text carefully:
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99.2 million persons between 2000 2019. The labour force grew from 396.3 million to 495.5 million.
During 2012 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
the global average of 47.3%.
During 2000 2019, rural LFPR declined by 14.1%, compared to a 3.5% decline in urban areas. This trend reversed between 2019 2022, with rural
Reading Passage
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99.2 million persons between 2000 and 2019. The labour force grew from 396.3 million to 495.5 million.
During 2012 to 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
The global average of 47.3%.
During 2000 to 2019, rural LFPR declined by 14.1%, compared to a 3.5% decline in urban areas. This trend reversed between 2019 and 2022, with rural LFPR increasing by 6% (especially among rural women) and urban labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
Q34
short answer
1 mark
Define unemployment.
