Q1
mcq
1 mark
Identify which of the following is true at the Break Even level of Income. (Choose the correct option)
- A. Slope of Consumption Curve = Slope of Saving Curve
- B. Average Propensity to Consume (APC) = Average Propensity to Save (APS)
- C. Slope of Saving Curve = Unity (1)
- D. Average Propensity to Consume (APC) = Unity (1)
Solution hidden
Log in to view solution →
Q1
mcq
1 mark
Identify which of the following is true at the Break Even level of Income.
- A. Slope of Consumption Curve = Slope of Saving Curve
- B. Average Propensity to Consume (APC) = Average Propensity to Save (APS)
- C. Slope of Saving Curve = Unity (1)
- D. Average Propensity to Consume (APC) = Unity (1)
Solution hidden
Log in to view solution →
Q2
mcq
1 mark
Read the following statements carefully:
- 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 →
Q3
mcq
1 mark
Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:
- 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 →
Q4
mcq
1 mark
In the Indian Banking System, the Statutory Liquidity Ratio (SLR) plays a vital role in controlling the credit creation capacity of the Commercial Banks, as it __________. (Choose the correct option to fill in the blank)
- A. ensures that all the deposits are converted into liquid assets.
- B. requires banks to maintain a percentage of deposits in the form of liquid assets.
- C. sets the maximum interest rate which the banks can charge on loans.
- D. promote banks from lending beyond a specific proportion of their total reserves.
Solution hidden
Log in to view solution →
Q5
mcq
1 mark
In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at `1,42,000 crore, `22,000 crore and `86,000 crore respectively. The value of Money Supply ($M_1$) would be `______
- A. 2,50,000
- B. 86,000
- C. 1,64,000
- D. 1,42,000
Solution hidden
Log in to view solution →
Q6
mcq
1 mark
In a two sector economy, the flow of factor payments moves from __________ to __________. (Choose the correct option to fill in the blanks)
- A. firms, households
- B. firms, government
- C. banks, households
- D. households, firms
Solution hidden
Log in to view solution →
Q7
mcq
1 mark
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Money is of perishable nature and is generally accepted by all at any point of time. Reason (R) : Money serves as a store of value, facilitating individuals to transfer purchasing power from the present to the future.
- 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 →
Q8
mcq
1 mark
Read the following statements carefully : Statement 1 : Depreciation of currency is an economic action undertaken by the government of a nation under the fixed exchange rate system. Statement 2 : Under the floating exchange Rate system, authorities actively intervene in the foreign exchange market by way of maintaining foreign exchange reserves. 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.
Solution hidden
Log in to view solution →
Q9
mcq
1 mark
In an economy, when __________ is insufficient to achieve the level of output corresponding to the full employment, the difference is termed a deflationary gap. (Choose the correct option to fill in the blank)
- A. ex-ante Aggregate Demand
- B. ex-post Aggregate Demand
- C. ex-ante Aggregate Supply
- D. ex-post Aggregate Supply
Solution hidden
Log in to view solution →
Q10
mcq
1 mark
In an economy, exclusion of ___________ may lead to under estimation of the value of Gross Domestic Product (GDP). (Choose the correct option to fill in the blank)
- A. Barter Transactions
- B. Services provided by family members
- C. Illegal activities
- D. Depreciation of Assets
Solution hidden
Log in to view solution →
Q11
short answer
3 marks
"Under the provisions stated in the Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India."
In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.
Solution hidden
Log in to view solution →
Q12
long answer
3 marks
(A) Meera and Shahid are two classmates, who were comparing India’s economic growth over the years.
Meera referred to the increase in Gross Domestic Product (GDP) at current prices prevailing in market, while Sahid insisted on considering GDP after adjusting for inflation. Their debate on which of the two measures gives a true picture of people’s well-being, remained inconclusive.
Considering the above mentioned situation, elaborate with valid reason, which of the two variables is considered a better indicator of welfare and why?
OR
(B) Two friends, Ravi and Harry were discussing whether the money received from sale of an old car should be included in India’s National income.
Ravi was of the view that it should be included in India’s National income while Harry did not agree with him.
They also had difference of opinion on the treatment of brokerage paid to the car dealer.
As their Economics teacher, state the treatments with valid arguments.
Solution hidden
Log in to view solution →
Q12
short answer
3 marks
Meera and Shahid are two classmates, who were comparing India’s economic growth over the years. Meera referred to the increase in Gross Domestic Product (GDP) at current prices prevailing in market, while Sahid insisted on considering GDP after adjusting for inflation. Their debate on which of the two measures gives a true picture of people’s well-being, remained inconclusive. Considering the above mentioned situation, elaborate with valid reason, which of the two variables is considered a better indicator of welfare and why ?
Solution hidden
Log in to view solution →
Q12
short answer
3 marks
Two friends, Ravi and Harry were discussing whether the money received from sale of an old car should be included in India’s National income. Ravi was of the view that it should be included in India’s National income while Harry did not agree with him. They also had difference of opinion on the treatment of brokerage paid to the car dealer. As their Economics teacher, state the treatments with valid arguments.
Solution hidden
Log in to view solution →
Q13
long answer
4 marks
(A) For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added.
Solution hidden
Log in to view solution →
Q13
long answer
4 marks
For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA). On the basis of the following data, estimate the values of Domestic sales of firm X :
S. No. Items Amount (in ` crore)
(i) Value of Output of firm Y 400
(ii) Purchases by firm X from firm Y 40
(iii) Exports by firm X 20
(iv) Purchases by firm Y from firm X 30
(v) Additions to Stock of firm X 10
(vi) Consumption of fixed capital 20
Solution hidden
Log in to view solution →
Q14
short answer
4 marks
Michel, an entrepreneur of Country Zeta, borrowed $ 5 million from an overseas bank to expand his textile business. During the same financial year, the Government of Country Zeta secured a loan of $ 30 Billion from an International Financial Institution to manage the ongoing Balance of Payments. Samuel, an Economics student categorised both of these transactions as ‘autonomous transactions’ in the BoP account of the country. Do you agree with his classification ? Justify your answer with valid reasons.
Solution hidden
Log in to view solution →
Q15
short answer
4 marks
Refer the given image carefully : Explain any two measures that can be taken by the Central Bank to control the indicated macroeconomic problem.
Solution hidden
Log in to view solution →
Q15
short answer
4 marks
State and explain any two measures that can be taken by the Central Bank to control the situation of deficient demand.
Solution hidden
Log in to view solution →
Q16
long answer
3 marks
A hypothetical economy’s expenditure pattern analysis revealed that even a family with zero income was able to meet its basic necessities of life. As income increased, their consumption also increased, but not as rapidly as income. On the basis of the above and general knowledge, answer the following questions:
(i) Identify and explain the type of consumption shown in the first paragraph.
(ii) Explain with reason why the aggregate demand curve is downward sloping.
Solution hidden
Log in to view solution →
Q16
long answer
4 marks
An economy’s income increased from ` 50,000 crore to ` 1,00,000 crore. Its saving increased from ` 5,000 crore to ` 20,000 crore.
(i) Calculate their average propensity to consume (APC) and average propensity to save (APS) before and after the increase in income.
(ii) Explain the change in APS with increase in income.
Solution hidden
Log in to view solution →Reading Passage
Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilise resources while supporting fiscal consolidation and sustainable economic growth.
Q18
short answer
4 marks
Differentiate between the two types of taxes indicated in the above text, with suitable examples.
Solution hidden
Log in to view solution →
Q18
short answer
2 marks
Elaborate the likely consequences of the tax projections made by the government.
Solution hidden
Log in to view solution →
Q20
mcq
1 mark
The Montreal Protocol was signed in the year 1987 committing nations to _________. (Choose the correct option to fill in the blank)
- A. protect biodiversity from any further losses.
- B. reduce the impact of global warming.
- C. protect ozone layer from depletion incurred due to chlorofluoro carbons.
- D. reduce the impact of deforestation.
Solution hidden
Log in to view solution →
Q22
mcq
1 mark
Identify which of the following highlights a highly relevant issue associated with evolving employment trends in India’s labour market?
- A. Progressive increase in the share of permanent salaried employees.
- B. Increase in the proportion of casually employed individuals.
- C. Expansion of self-employment avenues in all regions.
- D. Significant rise in job opportunities within the formal sector.
Solution hidden
Log in to view solution →
Q23
mcq
1 mark
Match the terms given in Column-I with their respective meaning in Column-II. Select the correct option:
- A. (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c)
- B. (i)-(b); (ii)-(a); (iii)-(c); (iv)-(d)
- C. (i)-(c); (ii)-(b); (iii)-(a); (iv)-(d)
- D. (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
Solution hidden
Log in to view solution →
Q24
mcq
1 mark
“Sustainable development refers to the development that meets the need of the present generation without compromising the ability of the future generations, to meet their own needs.” The above mentioned definition has been given by __________. (Choose the correct option to fill in the blank)
- A. United Nations Conference on Environment and Development
- B. United Nations Committee on Environment and Development
- C. United Nations Committee on Protection of Environment
- D. United Nations Conference on Protection of Environment
Solution hidden
Log in to view solution →
Q25
mcq
1 mark
Read the following statements : Assertion (A) and Reason (R), Choose the correct option from those given below :
Assertion (A) : The Government of India adopted the measure of regulation of markets to improve marketing conditions for agricultural products.
Reason (R) : Regulation of market ensured transparent pricing, fair trade practices, and protection for farmers against exploitation in agricultural marketing.
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.
Solution hidden
Log in to view solution →
Q26
mcq
1 mark
Arrange the following events in China’s economic development history in correct chronological sequence and select the correct option :
I. Great Proletarian Cultural Revolution.
II. Great leap forward
III. Introduction of Economic Reforms
IV. Launch of the First Five Year Plan
Options :
- A. II, IV, III, I
- B. IV, II, I, III
- C. II, IV, I, III
- D. IV, I, II, III
Solution hidden
Log in to view solution →
Q27
mcq
1 mark
Read the following statements carefully :
Statement 1 : During the British rule in India, the export surplus was utilised to import of invisible items from Britain.
Statement 2 : Indians paid for the expenses incurred by an office set up by the colonial government in Britain.
In the light of above 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.
Solution hidden
Log in to view solution →
Q28
short answer
3 marks
“Employment within the formal sector ensures better income and social benefits as against the informal sector.” Defend or refute the above statement with valid reason and example. OR During the ‘Mann ki Baat’ program aired on 29th June, 2025, Prime Minister shared that World Health Organisation (WHO) has declared India as a Trachoma free (an eye disease). This achievement, he shared, is a result of sustained efforts in health care, sanitation, awareness and medical access. In the light of the above statement, explain how investments in health care contributes to a nation’s development. Support your answer with valid arguments.
Solution hidden
Log in to view solution →
Q29
short answer
3 marks
"In the late 1970’s China’s population growth rate has sharply declined as compared to India." Elucidate the reasons and impacts of this situation.
Solution hidden
Log in to view solution →
Q30
short answer
3 marks
(A) State the meaning of ‘Disguised Unemployment’. OR (B) In the light of the given chart, analyse the gender-wise sectoral distribution of workers. Note: The following question is for the Visually Impaired Candidates only in lieu of Q. No. 30 (B). Elaborate any two reasons behind more women employed in economic activities in Rural areas as compared to Urbans areas.
Solution hidden
Log in to view solution →
Q31
long answer
4 marks
"At the time of independence, both India and Pakistan inherited similar colonial economic structures. Both the nations adopted many similar economic planning strategies." Explain any two such similarities in the developmental path of India and Pakistan.
Solution hidden
Log in to view solution →
Q32
long answer
4 marks
(A) “The British sought to achieve their vested interest through their policies of infrastructural development in India.” Do you agree with the given statement? Justify your answer with valid explanation. OR (B) Explain any two objectives of the British development of infrastructural development in India.
Solution hidden
Log in to view solution →Reading Passage
To ensure inclusive and quality education for all, the Indian government has launched several important schemes. These schemes aimed at improving access, equity and learning outcomes, especially among disadvantaged group. The Right to Education (RTE) Act, passed by the India Parliament on August 4, 2009, guarantees free and compulsory education to every child between 6-14 years of age. It ensures that all children have access to education in neighbourhood schools, until they complete elementary education. Another key initiative is Sarva Siksha Abhiyan (SSA). It was introduced in 2001. It is one of India’s flagship programmes for the Universalisation of Elementary Education. Digital India Campaign, launched on July 1, 2015, focuses on transforming India into a digitally empowered society by improving mobile and internet connectivity, particularly in rural and remote regions. This initiative supports digital learning & access to educational resources. Through these initiatives, the government strives to create an equitable, accessible & quality driven educational environment for all children, laying a strong foundation for national development.
Q37
short answer
3 marks
Identify which law guarantees free and compulsory education up to the age of 14 years. Explain how does it help in enhancing access to education.
Solution hidden
Log in to view solution →
Q38
short answer
3 marks
In your opinion, how has the increase in public spending on education contributed to India’s social and economic transformation? Support your answer with valid arguments.
Solution hidden
Log in to view solution →
Q39
short answer
3 marks
Although the subsidies play a crucial role in giving incentive to farmers to adopt modern agricultural technologies, they simultaneously impose a significant fiscal strain on the resources of the Government. Justify the given statement with valid argument.
Solution hidden
Log in to view solution →
Q40
short answer
3 marks
The strategic sale of a public sector undertaking and the minority sale of its equity are both established instruments of disinvestment. Defend or refute the given statement with valid arguments.
Solution hidden
Log in to view solution →
Q41
short answer
3 marks
The Industrial Sector has performed poorly in the reform period (1991). Justify the given statement with valid argument.
Solution hidden
Log in to view solution →
Q42
short answer
3 marks
Mr. Ravi, an IT entrepreneur from Bengaluru, observed that several MNC’s prefer India as their outsourcing Hub for services like software development, customer support and data management. In your view, India is preferred as an outsourcing destination due to certain inherent advantages of the Indian economy. Mention and explain any two factors.
Solution hidden
Log in to view solution →
Q43
short answer
3 marks
Mr. Ravi, an IT entrepreneur from Bengaluru, observed that several MNC’s prefer India as their outsourcing hub for services like software development, customer support, data management etc. His friend Priya believes this is due to certain inherent advantages of the Indian economy. In your opinion, state and explain any two factors that make India a preferred outsourcing destination.
Solution hidden
Log in to view solution →