SECTION A [50 MARKS]

ANSWER ALL QUESTION

Question 1 [20]

a) For each question, there are FOUR responses: A, B, C and D. Choose the
corresponding letter of your response and CIRCLE it neatly. NO score will be
awarded if you circle more than ONE letter.
i. Which of the following factors leads to the increase in supply of labour?

A increase in consumer’s income

B increase in productivity of labour
C enhanced workplace and amenities
D increased demand for goods and services
ii. Study the diagram below showing the equilibrium interest rate.

Calculate the change in the demand for capital when the equilibrium interest rate increases from
10% to 12%.

A Decreased by Nu 300 million

B Decreased by Nu 600 million
C Increased by Nu 300 million
D Increased by Nu 900 million

iii. All of the following are the examples of direct tax EXCEPT

A land tax.
B cattle tax.
C income tax.
D custom duty.

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iv. Some of the roles of private and public sectors are given below.
I. Reducing regional disparities
II. Ensuring equal distribution of income and wealth
III. Maximizing profit
IV. Reducing poverty
Which of the above combinations best describes the roles of the public sector in the
Bhutanese economy?
A I, II and IV
B I, II and III
C I, III and IV
D II, III and IV

v. The characteristic that best describes public goods which can be consumed by individuals
without diminishing their availability is
A rival in nature.
B free gifts of nature.
C non-rival in nature.
D non-economic goods.
vi. An increase in the price of petroleum products in India, which subsequently leads to higher
prices of goods and services in Bhutan, is an example of
A price effect
B inflation effect
C spillover effect
D economic effect.

vii. Country ‘A’ has been facing economic problems such as trade deficit and exploitation of
domestic industries due to its imports. A policy measure that could help Country 'A'
address its economic challenges is by
A reducing workforce education and training programs.
B providing subsidies to Bhutanese importers.
C implementing export promotion initiatives.
D increasing the value of currency.

viii. What will happen to the equilibrium wage rate when the demand for goods and services
changes from 100 units to 200 units, while the supply remains same?
A The equilibrium wage rate will change.
B The equilibrium wage rate will increase.
C The equilibrium wage rate will decrease.
D The equilibrium wage rate will remain constant..

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ix. Chencho Gyeltshen relies on his physical ability and tactical knowledge of football for his
livelihood. The category of labour possessed by Chencho is
A skilled labour
B manual labour
C physical labour
D both skilled and manual labour
x. Babu earns a monthly salary of Nu 52,000. He spends Nu 15,000 as rent, Nu 2,500 for
groceries, Nu 1,000 for utilities and Nu 2,500 for miscellaneous expenses. Calculate Babu’s
monthly savings.
A Nu 2,500
B Nu 5,000
C Nu 21,000
D Nu 31,000
xi. In the market, there is an observation that the consumption rate of consumers has decreased.
What would happen to saving and investment due to such changes?
A Savings and investment would increase.
B Savings and investment would decrease.
C Savings and investment would remain the same.
D Savings would increase but investment would decrease
xii. What is the likely consequence of excessive borrowing?

A Lower inflation
B Currency appreciation
C Reduced public spending
D Increased interest payments
xiii. Bhutan aims to diversify its economy by promoting non-hydropower sectors like tourism
and small-scale industries. The action that would support diversification for economic
growth is
A increasing tariffs on exports.
B providing tax incentives for startups.
C reducing investment in the tourism sector.
D limiting access to credit for new businesses.
xiv. Since 1960s, our government has been striving to promote Gross National Happiness (GNH)
rather than Gross Domestic Product (GDP).
Which of the following supports the above statement that prioritizes GNH over GDP?
A GNH and GDP both measure economic growth.
B GNH focuses on economic performance, while GDP measures well-being.
C GNH measures economic activity, while GDP emphasizes holistic well-being.
D GNH emphasizes holistic approach, while GDP measures economic prosperity.

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xv. The given table shows the volume of trade of goods and services of Bhutan with other
countries.
Trade 2023 2022
Imports (in million Nu) 85,138 85,093
Exports (in million Nu) 27,913 26,693
(Source: Bhutan Trade Statistics, 2023)

What is the percentage increase in exports in the year 2023?

A 0.05%
B 4.57%
C 4.37%
D 4.30%
xvi. Which of the following trade strategies supports protectionism?

A Import restrictions
B Eliminating trade barriers
C Access to foreign exchange
D Simplification of trade regulations
xvii. A shoe factory is experiencing an increased demand for shoes due to the reopening of
schools. To meet this rising demand, the factory is considering hiring an additional worker.
Under which condition is it economically sensible for the factory to employ the additional
worker?
A Marginal product is equal to the wage rate.
B Marginal product is greater than the wage rate.
C Marginal revenue product is less than the wage rate.
D Marginal revenue product is greater than or equal to the wage rate.
xviii. The primary motive of doing business is to maximize profit. However, businesses also need
to fulfill certain social responsibilities. Which of the following scenarios shows a business
fulfilling its social responsibilities?
A A retailer raising the prices of life-saving drugs.
B A restaurant reducing its food waste to reduce costs.
C A firm investing in environmentally friendly products.
D A manufacturer relocating to a place with lower labour costs.
xix. To achieve an 8.97% economic growth by 2025, the government plans to boost capital
formation. One method to enhance capital formation is
A allowing low interest rate on savings.
B charging high interest rates on borrowing.
C charging high interest rate on borrowing and low interest rates on saving.
D charging low interest rate on borrowing and high interest rates on saving.

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xx. Which of the following scenarios best illustrates real flow in the circular flow of income?

A A firm pays wages to its employees.

B Households purchase groceries from a supermarket.
C A firm receives revenue from selling products to consumers.
D Households provide labour to a firm in exchange for wages.
b) Fill in the blanks with appropriate word(s). [5]

i. The reward received by an entrepreneur for taking risk in business is called ________
.[profit]

ii. The economic organization that facilitates free trade amongst SAARC member is
___________________________. [SAFTA]

iii. Expenditure incurred by the government on interest payments, subsidies and salaries of civil
servants are examples of ___________________________expenditure. [current]
iv. The GNH pillar that assesses transparency, accountability and promotes equality is
___________________________. [good governance]
v. The sum of factor income received by households in an economy is referred to as
___________________________ income. [national]
c) Match each item under column A with the most appropriate item in column B. Write [5]
the correct alphabet in the space provided under the ‘answer’ column.
Answer Column A Column B

i. d. Per capita i. Average income earned by the a. Consumer sovereignty

income citizens of the country.
ii. e. Derived ii. Demand that arises due to b. Inelastic
demand demand for other related
products.
iii. a. Consumer iii. Production of goods and c. National income
sovereignty services based on consumer’s
choices and preferences.
iv. b. Inelastic iv. Supply of goods and services d. Per capita income
remains same despite of
change in price.
v. g. Tariff v. taxes imposed on imported e. Derived demand
goods
f. Quantity demanded

g. Tariff

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d) Write TRUE or FALSE for the following statements in the space provided. [5]

i. The act of using goods and services to satisfy human wants is consumption. TRUE

ii. BIMSTEC is an economic organization that links ASEAN with SAARC. TRUE

iii. The eight member countries of SAARC are Afghanistan, Bhutan, Pakistan, Maldives,
Thailand, Nepal, Bangladesh and India. FALSE
iv. The three components of public finance are budget, public expenditure and public revenue.
TRUE
v. A supplementary budget is used to carry out planned developmental activities. FALSE

e) Answer the following questions briefly.

i. “So far, approximately 64,000 Bhutanese, which is around 9% of the total population of the [2]
country, have migrated abroad.” (source: Kuensel, July 5th, 2024)

Do you think such migration of citizens abroad will benefit the country? Support with
TWO valid reasons.
Answer
Yes
 More inward remittances
 Increase foreign reserve
 Enhanced productivity
 Bring new skills and knowledge
 Reduce unemployment
No
 Create shortage of labour
 Brain drain
 Satong/Gungtong (empty households/villages)
 Barren land
 Less agricultural production and export

Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2

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ii. A retired civil servant, living in a rented apartment in Thimphu for twenty years, plans to [2]
buy a house to avoid rising rent. Is this a wise decision? Justify.
Answer
Yes
 Own property
 Exempted from rent
 Can sell at any time
 Can transfer to children
 Secure/ stress free living
No
 No major investment required
 Exemption from property tax
 No maintenance costs
 No ownership/property
Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2

iii. Among the three economic sectors, the tertiary sector recorded a highest growth of 6.62% [2]
followed by secondary sector at 5.6% while the primary sector recorded a lowest growth
rate at -1.15% for the year 2022.
(Source: NSB)
Suggest TWO remedial measures to increase the contribution of the primary sector.

Answer
 Modern farming techniques
 Research and development
 Infrastructure development
 Providing subsidies and financial aids
 Providing farm equipment
 Modern irrigation systems

Criteria Marks
Suggest any two measures (0.5 for each point) and explanation 0.5 or points are 2
self-explanatory

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iv. Sort the following into taxes and non-taxes [2]
borrowing commercial revenue excise duty Corporate Income Tax

Answer
Tax Non-Tax
 excise duty  borrowing
 Corporate Income Tax  commercial revenue

Criteria Marks
0.5 mark for each correctly placed answer 2

v. Can economic growth guarantee the economic development of a country? Justify. [2]
Answer
Yes
 Economic growth results in more tax revenue which can be used for providing public
services such as healthcare and education.
 Economic growth increase employment opportunities which lead to higher living
standards.
 Economic growth leads to increased income thereby reducing the poverty.
 Growth supports better allocation of resources and leads to more economic development.
No
 Economic growth alone does not guarantee equal distribution of income and wealth.
 Economic growth does not always lead to social equity.
 Economic growth does not improve environmental sustainability.
 Economic growth does not guarantee better governance
 Economic growth does not ensure preservation and promotion of culture.
 Environmental degradation
Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2
vi. As an economics student, what strategies would you practise at the school level to [2]
encourage the efficient use of resources?
Answer
 Taking care of school property such as furniture, equipment, vehicle, buildings
 Putting off lights and fans when not in use
 Minimizing wastage (e.g. school stationery/ office supplies)
 Providing ownership/custodian of school property

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 Criteria Marks
Any 2 strategies
(0.5 for each point) if only point is mentioned without brief explanation
2
Points with brief explanation or points are self-explanatory (1 mark for each
point)
vii. "Most of the major economic problems are concentrated primarily in urban areas. Do you [2]
agree? Provide TWO reasons for your answer.".

Answer
Yes
 Housing crunch
 Transportation congestion
 More pressure on public services
 Income disparities
 Higher cost of living
 Higher unemployment rate
No
 High level of rural poverty
 Fewer job opportunity
 Lack of infrastructure facilities
 Challenges to access essential services
 Population declines

Criteria Marks
Identifying any one economic issue (1mark)
2
Any one remedial measure for the identified issue (1 mark)

vii. SAARC, BIMSTEC, ASEAN, and the WTO are examples of economic organizations. What [1]
is ONE benefit of being a member of such organizations?
Answer
 Promote international trade
 Settle disputes
 Enhance international relationship
 Better access to cheaper goods and services
 Earn foreign exchange
 Facilitate business
Criteria Marks
Point mentioned (0.5 mark)
Explanation of the point (0.5 mark) 1
Points are self-explanatory (1 mark)

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 SECTION B (50 MARKS)

ANSWER ANY FIVE QUESTIONS

Question 2

a) Define professional labour with an example. [2]

Answer
 Labour that requires advanced study and special training is called a professional labour.
Example:
 Doctor treating a patient,
 A teacher teaching students,
 An architect designing a building,
 A pilot flying an aircraft
Criteria Marks
Correct definition (1 mark)
Example of labourer (Doctor) (0.5 mark) 2
Example of labour (Doctor treating patient) (1 mark)
b) The private sector is considered as the engine of the economic growth. However, the [3]
contribution of the private sector to the Bhutanese economy has been minimal. Discuss any
THREE reasons why the private sector has not been able to contribute much to the
Bhutanese economy.
Answer
 Minimal infrastructure
 Limited access to finance
 Lack of access to markets
 Shortage of skilled labour
 Lack of technological advancement
 Lack of research and development
Criteria Marks
Point mentioned (any THREE points 0.5 x3 = 1.5)
3
Explanation of the point or points are self-explanatory (0.5 x 3 = 1.5)
c) According to a World Bank Report, Bhutan needs to improve its business environment to [2]
sustain strong and inclusive growth. Suggest TWO potential strategies Bhutan could
implement to achieve this growth.
Answer
 Make easy access to finance

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  Provide incentives to private secto
 Simplify the policy regulation
 Attract more FDI
 Lower the interest rate
 Promote agricultural activities

Criteria Marks
Point mentioned (any TWO points 0.5 x2 = 1)
2
Explanation of the point or points are self-explanatory (0.5 x 2 = 1)

d) Study the table given below:

Year Exports (million Nu) Imports (million Nu)
2023 8,301 21,406
2022 7,697 33,699
2021 7,147 18,993
i. Calculate the net export for the year 2023. [0.5]
ii. Create a pie chart for the exports of three years. [2.5]

Answer
i. Net export = Export – Import
Year 2023 8301-21406 = -13105 million Nu
iii.

7147, 31% 8301, 36%

7697, 33%

Calculation
Total Export = 23145
Year 2023: 8301/23145*100=36% 36/100*360°=129.6°
Year 2022: 7697/2315*100=33% 33/100*360°=118.8°
Year 2021: 7147/2315*100=31% 31/100*360°=111.6°

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 Criteria Marks
Correct Calculation net profit (0.5 marks)
0.5

Criteria Marks
Correct calculation for each segment (0.5 x 3 = 1.5marks)
2.5
Neat diagram with correct labels (1 mark)

Question 3

a) Explain any TWO reasons why a budget is important. [2]

Answer
 Keep track of income and expenses of the govt.
 For efficient allocation of resources
 implementation, assessment, monitoring and evaluation of all government
programmes
 show the financial status of the government

b) Tshering, a corporate employee, borrowed Nu 500,000 from a commercial bank at an annual [3]
interest rate of 9% to buy a car. With the interest compounded annually, what should be the
amount of each monthly installment if he wants to fully repay the loan within five years?

Answer
𝑟
Formula: A=P(1+ 𝑛)nt
0.09 1x5
A=500000(1+ )
1
= Nu 769311.98

Monthly Installment: Total Amount/60 months

769331.98/60 = 12821.87

Criteria Marks
Correct Formula (0.5marks)
Correct Procedure (0.5 marks)
3
Correct Amount (1 mark)
Correct Installment Amount (1 mark)

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c) Do you think Bhutan’s trade policies are favourable for the growth of private sector? Justify [2]
your answer with THREE points.
Answer
Yes
 Govt. (e.g. FCB) helping farmers to market their products
 International trade relations
 More economic doors opened
 Encourage exports through trade policies
No
 Limited access to foreign markets
 High tariffs on foreign imports
 Limited access to foreign exchange
 Limited access to technology and innovation
Criteria Marks
Suggest any two justifications (0.5 for each point) and explanation 0.5 or points 2
are self-explanatory
d) The government plans to offer a cash incentive of Nu 10,000 per month for every third child [2]
until they reach the age of three. What potential positive effects might this plan have?
Provide TWO possible outcomes.
Answer
 Increased Population size
 Skilled human resources
 Increased market size
 Increased labour force
 Increased demand and consumption
 Availability of human resource for future replacement
 Reduce parental burden
Criteria Marks
Any TWO points (0.5 for each points and 0.5 for explanation) or 1 mark each if 2
points are self-explanatory.

Question 4

a) Name the economic organization consisting of member countries around the Bay of Bengal, [2]
and mention ONE of its significant functions.
Answer
 BIMSTEC.
Functions
 Strengthen and improve economic conditions, international trade, and foreign direct

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 investment cooperation to attract foreign companies to the Bay of Bengal region.
 Progressively liberalize and promote foreign trade in products and services.
 Create a transparent, liberal, and facilitative investment regime.
 Facilitate economic integration of least developed countries in the Bay of Bengal region.
 Research new areas and develop appropriate measures for strong cooperation.
Criteria Marks
Name of the Organization (Acronym accepted) – 1 mark 2
Any one of the functions/objectives – 1 mark

b) The table below shows the daily production of cloth in Yeshi’s textile factory. Each meter of
cloth sells for Nu 450. Use the information in the table to answer questions i and ii.
No of workers 1 2 3 4 5

Total Production of cloth in meter 10 22 33 42 50

Marginal Product (MP) A___ 12 11 C____ 8

_

Marginal Revenue Product (MRP) 4500 5400 B____ 4050 D___

_

i. Write the value of A, B, C and D. [2]

Answer
A 10 B 4950 C9 D 3600
ii. Based on the information given above, what is the maximum number of workers, the [1]
firm can employ at the wage rate of Nu 4000? Why?

Criteria Marks
Correct calculation of MP and MRP 0.5 mark each 1

Answer
 Firm can employ 4 workers at the wage rate of Nu 4000.
 This is because profit maximizing firms will always employ workers to the point
where MRP is equal or greater than the wage rate.

Criteria Marks
Correct answer – 1 mark 2
Reasoning – 1 mark

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c) According to the Property Tax Act of 2023, properties are taxed based on their value, with [2]
people who own more property paying higher taxes compared to those who own less.
Do you think it is beneficial for the country’s economy? Support your stand with TWO
reasons.
Answer
Yes
 Increased Government Revenue
 Narrow gap between rich and poor
 Improved Public Services
 Encourage land use
No
 Financial Burden on Property Owners
 Potential for Reduced Investment
 Risk of migration
 Increased rents
Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2
d) Lower Ngultrum value against USD, in reality, is a gain for the Bhutanese economy. Justify [3]
with THREE points.
Answer
 Tourist volume will increase
 Cheaper exports
 Reduce imports
 Domestic production will increase
 Promote indigenous products
 Hospitality service sector will be benefitted
Criteria Marks

3 Points only (0.5 x 3=1.5 marks)

3
3 Points with clear explanation or points are self-explanatory (1x3)

Question 5

a) Explain the relationship between the demand for labour and wage rate. [2]

Answer
 There is an inverse/negative relationship between the demand for labour and wage rate. If
the wage rate increases the demand for labour decreases and vice versa.

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 Criteria Marks
Correct statement of relationship (negative or adverse) 1 mark 2
Explanation (1 mark)
b) People save money for various purposes. Describe THREE significant reasons why [3]
individuals choose to save.
Answer
 For interest
 For future investment
 For emergencies
 Financial security
 Debt free living
 Reduce stress
 For pilgrimage
 For purchasing assets
 For children’s education
Criteria Marks
Correct 3 reasons, points only (0.5 for each point) 2
3 point correctly explained, or the points are self-explanatory (1 for each point)
c) In 2022, the youth unemployment rate increased to 28.6% from 20.9% in 2021. [2]
(Kuensel, 20th February, 2023).
Do you think this rise is due to a skills mismatch between job seekers and job requirements?
Justify your answer with TWO points.
Answer
Yes
• Educational System not aligned with the needs of the job market.
• Technological Changes require new skills
• A shift from agriculture to manufacturing or services
• Lack of adequate training and development
• Globalization can lead to changes in the job market
No
• Economic downturns
• Lack of Investment
• Poor infrastructure
• Change in government policy
• Many jobs are not officially recorded

Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2

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 d) Use the data provided to answer questions i and ii.
Year 2018 2019 2020 2021 2022

GDP Per Capita (USD) 3,389 3,564 3,181 3,561 3,704

[2]
(Source: World Bank)
i. Draw a line graph to represent the GDP per capita from the year 2018 to 2022.

Answer

Criteria Marks
1. Label the x-axis with the years (2018-2022). (0.5 marks) 2
2. Label the y-axis with the GDP per capita (in USD). (0.5 marks)
3. Plot the data points accurately. (1 mark)
ii. What is the percentage change in GDP per capita in the year 2021 as compared to year [1]
2020?
Answer
GDP per capita in 2021 – GDP per capita in 2020
3561 - 3181 = 380
380/3181 X 100 = 11.9% or 12.0% (rounded to the nearest 1 dec. place)
Criteria Marks
Correct procedure but wrong answer(0.5) 1
Correct procedure with correct answer (1)

Question 6

a) Discuss the relationship between: [1]

i. Income inequality and economic performance.
Answer
 When there is low-income inequality, there is high economic performance.
 When there is high income inequality, there is low economic performance.

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 Criteria Marks
Correct relationship stated (1 mark) 1

ii. Longevity and economic performance. [1]

Answer
 When there is high life expectancy, there is better economic performance
 When there is short life expectancy, there is low economic performance
Criteria Marks
Correct relationship stated (1 mark) 1

b) Imagine a new economic organization has been formed, consisting of the neighboring [3]
countries Bhutan, India, Nepal, and Bangladesh. As a potential member of this organization,
propose THREE rules that should govern its operations.
Suggestive Answer
 Rule 1: Facilitate trade among member countries by reducing tariffs and barriers.
 Rule 2: Create Infrastructure Development Fund
 Rule 3: Member countries should frame Environmental Protection Rules
 Rule 4: Allow Free Movement of People
 Rule 5: Reduce economic disparities among member countries.
 Rule 6: Dispute Resolution Mechanism must a created
 Rule 7: Develop cultural exchange programs to promote understanding and friendship
Criteria Marks
Three relevant rules (1 mark each) 3
3 rules framed but are too obvious or too general (0.5 marks each)
c) A mother nursing a baby at home is not considered as labour in economics. Discuss. [2]

Answer
 A mother babysitting her child at home does not earn income,
 It is done for family wellbeing.
 It is done for love and care
d) Gelephu Mindfulness City (GMC), envisioned by His Majesty the King of Bhutan, will be [3]
developed in line with the philosophy of Gross National Happiness. If you were a planner for
GMC, suggest THREE ways you would apply your understanding of GNH in designing the
city.
Answer
I would ensure that the city's infrastructure and buildings are eco-friendly,
I would use renewable energy sources,
I would promote sustainable living practices.

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 I would minimize the damage to the environment
I would incorporate Bhutanese culture and tradition into the city's design (art, architecture)
I would involve local communities in decision-making processes

Criteria Marks
Three valid points (0.5 each) 3
Clear explanation of 3 points or points are self-explanatory (3 marks)

Question 7

a) The export of goods and services earns foreign currencies. Explain the importance of [2]
earning foreign exchange.
Answer
 Foreign exchange allows Bhutan to pay for imports
 Increase foreign reserves
 Repayment of external debt/loan
 Import of essential goods
 Manage economic crisis/downturns
Criteria Marks
Correct 2 importance/benefits, points only (0.5 for each point) 2
2 points clearly explained, or the points are self-explanatory (1 for each point)
b) A new highway is constructed to connect rural areas with urban centers. Write THREE [3]
social benefits of this capital investment.
Answer
 easy access to education and healthcare
 greater interaction between rural and urban communities
 increased employment opportunities and improved living standards
 cultural exchange
 frequent visits by families living in different regions
 greater community engagement and participation in social activities
 access to information
 easier access to urban recreational and leisure facilities
 access a wider range of consumer goods and services
Answer
Criteria Marks
Correct 3 social benefits, points only (0.5 for each point) 3
3 points clearly explained, or the points are self-explanatory (1 for each point)
c) People in Bhutan generally have a low saving culture. Suggest THREE creative strategies [3]
to encourage better saving habits.

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 Answer
 Encourage community members to set monthly savings goals
 reward participants who have higher savings
 Conduct financial literacy workshops
 Develop/Provide access to saving apps or tools
 Establish peer support systems where members share tips, experiences, etc.

Criteria Marks
Correct 3 strategies, points only (0.5 for each point) 3
3 strategies clearly explained, or the points are self-explanatory (1 for each
point)

d) Bhutanese people have a long history of hoarding. Is there any benefit to this practice? [2]
Provide TWO reasons to support your answer.

Answer
Yes
 Financial Security in times of economic uncertainty or crisis.
 traditional practices like hoarding can help preserve cultural heritage and social
values
 need not pay taxes
 cash ready at hand for informal transactions/religious/social purposes
No
 reduced circulation of money
 lower investments
 increased inflation
 inefficient use of money
 no interest
Criteria Marks
For taking stand Yes/No 0
No stand taken, but provided two or more clear reasons from both point of view 0
No stand taken, but provided two or more clear reasons from one point of view 2
Supporting stand with two clear reasons 2

BCSE/09/MA/2024 Page 20 of 20
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