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Physical + Digital CBSE sample Papers For 2025 Examination _ ECONOMICS Get last 10 Years’ CBSE Solved Papers on gowebrachnasagar.com SAGAR © Scanned with OKEN ScannerWARM-UP : Practice Latest CBSE Sample Paper and Latest Examination Paper before starting your journey. 5 Easy Papers Physical + 3 Digi 0 @ @ scanned with OKEN ScannerPART - | LATEST CBSE LATEST SAMPLE PAPER | EXAMINATION PAPER EASY SAMPLE AVERAGE SAMPLE PAPERS PAPERS ——— DIFFICULT SAMPLE PRE-BOARD PAPERS SAMPLE PAPERS MOCK PAPER © scanned with OKEN ScannerLATEST CBSE SAMPLE PAPER, 2024-25 Time Allowed: 3 Hours} {Maximum Marks: 80 General Instructions: (i) This question paper contains two sections: Section A - Macro Economics Section B ~ Indian Economic Development ( This paper contains 20 Multiple Choice Type Questions of 1 mark each. (ii) This paper contains 4 Short Answer Type Questions of 3 marks each to be answered in 60 10 80 words. (j) This paper contains 6 Short Answer Type Questions of 4 marks each to be answered in 80 to 100 words. (0) This paper contains 4 Long Answer Type Questions of 6 marks each tobe answered in 100 to 150. words. ee Section A : Macro Economics 1. Read the following statement—Assertion (A) and Reason (R). Choose the correct option from those given below: 1 Assertion (A); The government can reduce the deflationary gap by purchasing government securities in the open market, Reason (R): The Central Bank purchases government securities in the open market to increase the lending capacity of commercial banks. Options: (@) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of, Assertion (A) (6) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) (©) Assertion (A) is true, but Reason (R) is false (d) Assertion (A) is false, but Reason (R) is true 2. “The Cabinet led by Prime Minister has decided that the Central Government will provide free food grains to 81.35 crore (approx.) beneficiaries under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for a period of five years with effect from Ist January, 2024.” Source: hitps:|Ipib.gowin|PressReleaselframePage.asp?PRID = 1980689 Based on the aforesaid statement, identify the budgetary objective the government is trying to achieve and choose the correct option: 1 (a) Reallocation of resources (&) Economie stability (©) Redistribution of income (@) Economic instability 3. To arrive at the value of Gross Value Added at Market Price (GVAyip) must be added 10 Gross Value Added (GVA) at Basic Prices. (Choose the correct option to fill up the blank) 1 (@) Product Taxes (b) Net Product Taxes (©) Production Taxes (@)_ Net Production Taxes Latest CBSE Sample Paper © scanned with OKEN Scannerforces automatically adjust th ate system, market ¥ adjust the surplus re aceaunt, (Choose the correct option to fil up the bang) (b) flexible 1 © m . tion that indicates the ‘Reference Line’ pa & From the the correct opt Passing ntify 1 (ii) @) ‘ : i 2| K, se 1 Bw a J Tncome Tncome Income c © w@ “) a @ . 6 Ax per the dat presented in the Union Budget 2023-24, the total receips of the government i i at ¥ 27.2 lakh crore and % 45 lakh ort total expenditure are estimated at oe ely. The value of the deficit would be & 17.8 lakh crore. (Choose the 1 the blank) other th erore resp et Op (a) revenue dg (®) fiscal (@) primary maximum value of Marginal Propensity to Consume (MPC) can be unity. 1 2: As the income of an economy increases, the proportionate increase in the level of is always more than the increase in the level of income. jor economy, Aggregate Demand can be determined by adding (Choose ip the blank) 1 1n, Induced Consumption and Induced Investment lion, Autonomous Investment and Induced Investment (@) Statement 1 (b) Statement 1 (©) Both Statements 1 and 2 are true (d) Both Statements | and 2 are false {3} ‘Together with® EAD Economics—12 @ scanned with OKEN Scanner+ Services) i040 vp-content/uploads/2024(02/PIB- 385 (6) (NDP, ro! 8, No. Amount @ in crore) @ @ 00 150 120 170 20 140 50 7 30 40 2 Latest CBSE Sample Paper @ scanned with OKEN Scanner17. (A) (i) On the basis of the fol aa spear - barter g k and the spear in sti This system evolved over time int of this system where they had features of bi as money (they were standardized representation debt instruments. « Money is usually issued by a sovereign (or a Central Bank as its represes In modern economies, currency is a form of money that is issued exclusively by some authority (Central Bank). lity of the issuing Cent public. Currency is usually issued in paper (or polymer) form, but the form of currency is nc defining characteristic. In the recent past, the Reserve Bank of In CBDC is the currency issued by a central bank in a di paper currency in a different form. The introduction of CBDC has the potential to provide significant benefits, such as reduced dependency on cash, lower transaction costs, reduced settlement risk. Introduction of CBDC would possibly lead to a more robust, efficient, trusted, regulated payments option, associated risks such as cyber-attacks and technology preparedness, but they need to be evaluated against the potential benefits. Source: hups:ihwebsi , issued Central Bank Digital Currency (CBDC). A form. It serves all the purposes () “Over the centuries, money has evolved in various form: fe and discuss briefly any two forms of money. (like CBDC) is qui Do you agsce with the given statement ‘Nominal GDP adjusted to base year prices 4,000 3 Tegecher wtth® EAD Economics—12 @ scanned with OKEN Scanner@ duce traffic Westment on the construction tmult-lane flyover may re On the basis of the above statement, discuss its likely impact on Gross Domestie 3 Product (GDP) and welfare in an economy, e Or (B) (“Basis of classiiation of final goods into consumption and capital goods depend on the economic nature of is use." Defend or refute the statement, with the help oF 8 suitable example 4 (‘Natural calamities in the hil states of India have led to massive destruction of apital assets” Identify the type of loss (depreciation or capital loss) indicated inthe aforessid statement, Give valid reasons in support of your answer. Z Section B : Indian Economic Development 18, Reod the given image carefully: Provides Resouces e Assimiats FUNCTIONS OF Woe | ENvRONVENT © |? ° 2 Choose the correct option which indicates the combination of vital funetions performed by the ‘environment. (i Sustains life (i) Provides aesthetic services (iii) Generates waste (jv) Provides only renewable resources Optio (a) @ and (i) (6) Gand (it) (©) @ and (v) (@) @ and (ii) 19, Read the following statements carefully: Statement 1: The British policies led to th ‘Statement 2: During the colonial rule in India, Value Added (GVA) increased significantly. In light of the given statements, choose the correct option from the following: (a) Statement 1 is true and Statement 2 is false (6) Statement 1 is false and Statement 2 is true (c) Both Statements 1 and 2 are true (d) Both Statements | and 2 are false 20. Read the following statements—Assertion (A) and Reason (R). Choose the correet option from those given below: 1 Assertion (A): The Education Commission (1964-66) had recommended that at least 4% of Gross Domestic Product (GDP) be spent on education. Reason (R); The Union and State Governments, have been stepping up expenditures in the fil the objective of attaining cent per cent literacy. Latest CBSE Sample Paper {=] 1 he collapse of India’s world-famous handicraft industries. the contribution of the industrial sector to Gross education sector over the years to ful © scanned with OKEN ScannerOptions: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation oy Assertion (A) Ry (6) Both Assertion (A) and Reason (R) are rue, but Reason (R) is not the correct explanatiog ‘of Assertion (A) (©) Assertion (A) is true, but Reason (R) is false (d) Assertion (A) is false, but Reason (R) is true the policymakers of In adopted an economic system that 21, In the post-independence era, fundamentally implies the coexistence of, and _- (Choose the correct option to fill up the blank) Ea , 1 @) small and largsscate industries (b) small and medium-scale industries (©) public and private sector (d) private and foreign sector 22, ‘The institutional structure of rural banking in contemporary India consists ofa set of mutagen . (Choose the correct option to fill up the blank) iH institutions, namely, ° i) Regional Rural Banks (i) Cooperative Banks i) Land Development Banks (i) Commercial Banks ‘Options: ; ; (f) and () (6) @, (ii) and @v) (3 tao @ (i, Gi), and (vy (©) @. Gi) and (ii) ( 24. dent which ofthe following statement i incorrect about the financial sector reform introduce 1991? (Choose the correct option) ; ; {c) Enabled the establishment of private sector banks, Indian as well as foreign {@) Foreign investment limit in banks was raised to around 74% ; {¢) Foreign Institutional Investors were allowed to invest in Indian financial markets (2) Change in the role of the Reserve Bank of India from facilitator to regulator 24, China's demographic problem of 4-2-1, resulted in a higher proportion of elderly individuals compared to the younger population. This was primarily due to the implementation of (Choose the correct option to fill up the blank) (a) Great Leap Forward Campaign () Great Proletarian Cultural Revolution (@) One Child Norm (@) Special Economic Zones ‘was setup in 1974 by the Indian government to address two major environmental jr pollution. (Choose the correct option to fill up the blank) 1 (a) State Pollution Control Board (®) Central Pollution Control Board (©) Brundtland Commission (@) Montreal Protocol “Assuming in a hypothetical economy, Real Gross Domestic Product recorded a growth rate of 9% during a fiscal year. However, the economy faced a significant challenge in terms of creating ‘an adequate number of employment opportunities.” Identify the situation indicated in the given statement and choose the correct option. (@) Casualisation of workforce (6) Informalisation of workforce (©) Formalisation of workforce (d) Jobless growth 27. During the period 1951-2016, led to an increase in the milk production in India by about ten times. (Choose the correct option to fill up the blank) 1 (@) Green Revolution () Golden Revolution (c) Operation Flood (d) Industrial Revolution 28. (A) Geely appraise the disinvestment policy initiated by the government during the reforms of 1991. 3 concerns viz. water and ai Or (B) ‘Globalisation is an essential outcome of liberalisation of an economy.’ Justify the she? statement with a valid explanation, 5 {2} “Tegether with® EAD Economics—12 | © scanned with OKEN Scannergo measure the extent of dove ae ies sock praasicict in an economy, liberty indicators should be considered ston socio parameters” Do you age ; = 0 you agree wit the 1 Give valid se in support of Your ANS gree with the given statement A ». ie apo apes in the late 1970s, commonly known as China’s open door oe ae ae cna GQ a across sectors like agriculture, investment, industry tc. a pivotal role in driving the rapid growth 5 over subsequent decades.” ig the rapid growth of the Chinese economy nthe Tight of the given txt, discus any two reforms responsible forthe rapid economie growth of Chia. 41. (A) ‘Under the Delhi Declaration, the G-20 nations pledged to reach global net zero emi approximately by mid-century and to triple ba enable ney capaci OY 2030. Discuss brief the rationale behind the commiiment by G-20 nations i the direction of achieving sustainable development. a or {@) ‘Tewould be unclear to say tht, the growth of human capital lays the ground for economic ith valid growth of a nation.’ Do you agree with the given statement? Support your answer Wi illustrations. 42, (@) Interpret the given picture based on the Seansad Adarsh Gram Yojana (Sacy) the Government of India. (i State any two examples of allied activites. 133, Read the following text carefully Employment generation has remaine the years, this has only become more growth in the structure of the output oft js measured by gross value added. However, and clear pattern. ‘These complexities have led to a wid studies on workforce and employment wo major sources of data on the workforce and employment have been the (i) decennial population census and Gi) nationwide quinquennial surveys on employment and unemployment by the erstwhile NSSO under the Ministry of Statistics and Programme Implementation (MoSP1), Government of India, <é one of the top challenges of Indian policymakers, and over complex. India has experienced more or less consistent he economy, especially after the economic reforms which the trend in employment did not reveal a consistent fe variation in the conclusions drawn by experts and various Latest CBSE Sample Paper {2] © scanned with OKEN Scanner‘The nationvide Employment and Unemployment (EAU) surveys have been rep, Period Labour Fore Survey (PLES) conducted by the National Statistical Orie St MoSPI, which started in the year 2017-18, 0, 4 According to NSO, the PLES data measure the dynamics in labour force participation population rato andthe employment status along with related, important parame ey rural and urban areas, * by Labour force includes persons who were either working (or employed) or those Availabe for y, (or unemployed). Some persons in the labour force are abstained from work for various pas Deducting that umber from the labour force gives the numberof atual workers. The, Wor are further categorised as persons who are engaged in any economic activity as seltenm hen, or regular wage/salaried and casual labour, The difference between the labour force ani workforce gives the number of tnemployed persons. the The size of the labour force in the country has increased from 485.3 million in th to 497.4 millon in the year 2018-19. The next year, the labour force increased by reached 537.9 million, This increase was witnessed across male and female pop as rural and urban households. Sourcechups:vwvnitgoxinstesidefaultfiles/2022-04/Discussion Paper_on_Workforce 0042022, (adapted and modified ‘On the basis of the given text and common understanding, answer the following questions () State any two major sources of data on the workforce and employment. A (i) “The labour force encompasses a broader category than the workforce.’ Defend o refuse the statement, giving valid reasons in support of your answer, 3 (ii) “Workers can be categorized into different types depending on their status.’ In the light of the given statement, state any one type of employment. 1 34. (A) (‘Under the Industrial Policy Resolution (IPR) 1956 in India, the system of industrial licensing was introduced to promote regional equality.’ Justify the given statement with valid arguments. H Year 2517.5 8 per cent any ulations as yey 4 (i) Discuss briefly the estimates made by notable scholars regarding the national income and per capita income during the colonial rule in India. 2 or (®) (‘During the colonial period, India's foreign trade was characterized by a large export surplus, however, this did not result in any flow of gold or the given statement with valid arguments, (Explain the rationale behind choosing ‘Self-reliance’ as a central planning objective in India’s development strategy. o (2} “Tagether witk® EAD Economics—12 © scanned with OKEN Scanner—— MARKING SCHEME— 1, (@) Assertion (A) is false, but Reason (R) is true 2. (0) Redistribution of income 43, (6) Net Product Taxes 4. (b) flexible 5 @ @ 6 () fiscal 4. (a) Statement 1 is true and Statement 2 is Ise 8. (@) Autonomous Consumption, Induced Consumption and Autonomous Investment 9, (€) Both Statements 1 and 2 are true 10, (@) deficit, 0.74 11. (A) Domestic Income (NDPyc) = (i) + (iv) + (ii) + (iii) + (vil) + (vi) ~ (©) - (@) - (iti) = 800 + 170 + 150 + 120 + 500 + 140 - 20-40 - 70 = € 1,750 crore Or (B) Steps pertaining to the estimation of National Income under the Income method: (i) Identify and classify production units into distinct heads namely primary, secondary, and tertiary sector. (ii) Estimate and classify the factor payments in different categories as Compensation of Employees, Operating Surplus, and Mixed Income. The sum of factor payments represents the contribution of the sectors to Domestic Income (NDP5c). (Gi) Finally estimate and add the value of Net Factor Income from Abroad (NFIA) to arrive at National Income (NNPpc). 12, Tax revenue collection by the government may be categorized as: 4+ Direct Taxes: It refers to those taxes whose impact and incidence lie on the same entity. In other words, the liability of paying direct taxes can't be shifted. «Indirect Taxes: It refers to those taxes whose impact and incidence may lie on different entities. In other words, the liability of paying indirect taxes can be shifted. 13. (i) Foreign Portfolio Investments in India in the fiscal year 2023-24 will be recorded on the credit side of the capital account of the Balance of Payments (BOP) account. It is recorded on the credit side, as it results in the inflow of foreign exchange. Furthermore, such transactions are documented in the capital account as they reflect the change in the ownership of financial assets between the residents of a country and rest of the world. (i) Balance of Payments deficit occurs when autonomous receipts fall short of autonomous payments during a given fiscal year in an economy. 14, (A) Given consumption curve (C) intersecting 45° line at B (Breal Steps for derivation of saving curve from the consumption curve are as follows: () Take OA on the negative intercept on Y-axis equals to OC (Autonomous consumption) having positive intercept on Y-axis, as a starting point of the saving curve. (ii) Draw a perpendicular from point B (where, Y = C) intersecting the X-axis at B (where $ = 0) which is another point on the saving curve, Latest CBSE Sample Paper {2) even level of income), © scanned with OKEN ScannerJoin point A to point B’ extending the y Consumption Consumption Curve 8 s c Savings Curve ad o} ; x eS Income A Savings or (B) Given, Autonomous Consumption (C) = € 40 crore Investment expenditure (I) = & 100 crore For economy A, Marginal Propensity to Consume (MPC) = 0.6 For economy B, Marginal Propensity to Consume (MPC) = 0.8 (i) At break-even level for economy A; Y = C Y = 40 + 06Y ay = 40 Y = © 100 crore (i Equilibrium level of income for economy B; Y = C +1 y =@+(MPC)x Y+I Y = 40 + 08 + 100 Y = 2% 700 crore 15. The working process of the increase in investment on the National Income, is based on the re is another's income. infrastructure undertaken by the government of € 1,000 crore, w amount (& 1,000 crore). Since Marginal Propensity to Save (MPS) is 0.2, ie., MPC i lead to an increase in the consumption expenditure by % 800 crore (80% of € 1,000) and saving by € 200 crore (20% of € 1,000). ‘As one’s expenditure is another’s income, an increase in consumption expenditure increase in income by & 800 crore in the subsequent round, This process continues of the change in savings becomes equal to the change in the investment. assumption that one’s expendi in an the sum Increase in Tnerease in Tnerease in Tnerease in investment (A1) | — income (AY) | consumption (AC) | savings (AS) {in crore) (in crore) (in crore) (in crore) 1,000 1,000 800 20 y | — ~ 400 <==} 40 160 oat 640 <= +512. 128 | - i i 1,000 5,000 4,000 1,000 (=} Together with® EAD Economics—12 @ scanned with OKEN Scannerferent forms su : ue) were used for economic X paper (or palyme issuing Central Bank and an asset of Yes, the introduction of CBDC provides sig ‘on cash, lower transaction costs, and reduced settlement risk. trusted, and regulated payment option. However, there are as Change in Real GDP. Real GDP. 17. (A) (@_ Percentage change in Real GDP = = 500-4000) op 400” = 125% avestment on the construction of a mul Product (GDP) positively as good quz transport system) general igher investments in an economy and may to an increase in employment opportunites. It may also lead to a reduction in tra time and lower average transportation costs. Consequently, it may inerease the wel being of citizens, Or (B) @__ The given statement is defended. Consumption goods are those goods that directly satisfy the wants of the consumer whereas, capital goods are those final goods that are used for further production. ‘A good can be considered as a consumption good or a capital good. It depends upon the economic nature of its use. For example, machinery purchased by a household can be classified as a consumption good whereas, if it is purchased by a firm for further Capital loss refers tothe oss in the value of fixed assets due to unforeseen circumstances ce natural disasters, theft, fires, etc, 18 19, (a) Statement 1 is true and Statement 20. (c) Assertion (A) is false, but Reason (R) is truc 21, (@) public and private sector and (i) 23, (@)_ Change in the role of tt 4, (€) One Child Norm 28. (@) Central Poltution Control Board false he Reserve Bank of India from facilitator to regulator Latest CBSE Sample Paper @ scanned with OKEN Scanner26. (a) Jobless Growth 27, (©) Operation Flood 28 (A) Disinvestment aimed to boost financial dscpfine ad modernisation. TH" Rovernment excecdag its mobilisation target hut assets of Public Sector Enterprises (PSI) hid Deen Wertalucg, resulting in significant losses wo the government, Moreover, the proceeds Were PrUMarily usey to cover shortfalls of government reventie instead of investing in social infrastructure or the development of PSI or . sonal ess ‘outcome of liberalisation of an economy. The removal oy {B) Globalisation is indeed an essential outcome no came redicton of restitions inthe industrial sector nancial sector, W007 she TUS p ete, opened the doors of the Indian economy t0 the rest of the world: HCN ion acted as a calls for globalisation, It fostered international trade Integrating the Indi, economy with the global economy. measurement of the development level i liberty indicators should be considered along wit i ic participation in social and political decision. Liberty indicators measure the extent of democratic i a ind ecenomie freedom within a society. With the incorporation of liberty indicators, policymakers can gain a more holistic understanding of an economy's development status, : 30, The fast-paced economic growth in China can be traced back to the following reforms introduced in 197 ‘an economy is a comprehensive approach where h other socio-economic parameter 1 phase, reforms were initiated in agriculture, foreign trade and investment sectors, mmune lands were divided into small plots, which were allocated I income from the land after paying In the init For instance, in agriculture co to individual households. They were allowed to keep all stipulated taxes. ; ‘+ Inthe subsequent phase, reforms were initiated in the industrial sector. Private sector firms, in general, and township and village enterprises, in particular, were allowed to produce goods. [At this stage, State Owned Enterprises were made to face competition. 31. (A) Under the Delhi Declaration, the G-20 member countries have agreed to elevate efforts to Global Warming. To achieve this, these nations have decided to reduce greenhouse gas emissions. Ithas been agreed to devise an effective approach to transitioning from conventional sources of energy to non-conventional sources of energy. Wind energy and solar power serve as 004 illustrations of environmental friendly sources of energy that contribute to achieving sustainable development. Or (B) An increase in human capital causes economic growth is unclear, owing to the problems pertaining to the estimation of quantifiable relation between the two. Educational yardsticks like years of schooling, teacher-pupil ratio, enrolment rates etc. may not reflect educational quality accurately. Whereas, human capital measures may show convergence between developing and developed nations, however, there’s no empirical evidence to prove income per capita convergence. Hence, education may improve, but cannot guarantee similar progress in real income across different countries. 32. (i) Under the Saansad Adarsh Gram Yojana (SAGY), introduced by the Government of India, ‘Members of Parliament (MPs) need to identify and develop one village from their constituencies. MPs were to develop three villages as model villages, covering over 2,500 villages. MPs were expected to facilitate a village development plan, motivate villagers to take up activities and build infrastructure in the arcas of health, nutrition, and education. (ii) Two examples of allied acti Together with® EAD Economics—12 re: © scanned with OKEN Scannerke workforce an and employme census ee pe who are actively Jn, such units were ‘The purpose of i Shirré VERV Rao, and RC Desai, made earnest efforts to oi = paral income ing the colonial era. Among these scholars, the estimates provided by VKRV Rao were considered ve jowever, the majority of these studies revealed that the country’s overall real output growth during the first half of the 20th century remained below 2%, with a meagre annual per capita output growth of just 0.5%. Or a's foreign trade was characterized by a significant consequences for the country’s was (B) export surplus. However, this surplus had detriment economy. This export surplus did not bring gold or silver into India. Instead, used to cover expenses incurred by an office set up by the colonial government in Britain, the expenses on the war fought government, and the import of le items, all contributed to the drai itegy by the policymakers due to the following reasons: «To reduce the dependence on foreign nations, the stress was laid on mobilising domestic resources. «© It was feared that the dependence on imported food supplies, foreign technology, and foreign capital may increase foreign interference in our policies. Latest CBSE Sample Paper {=} @ scanned with OKEN ScannerLATEST EXAMINATION PAPER, 2024 (Maximum Mark: gy This paper contains 20 Mul This paper contains 4 Short Answer Questions Type-! ques ‘Answer these questions in 60 to 80 words. ‘ : (©) This paper contains 6 Short Answer Questions Type-II questions. Each question carries 4 marks, Answer these questions in 80 to 100 words. : i (vi) This paper contains 4 Long Answer Type Questions. Each question carries 6 marks. Answer these questions in 100 to 150 words. ‘Attempt all parts of a question together. : There is no overall choice in the question paper. However, an internal choice has been provided in few questions. Only one of the choices in such questions has to be attempted. Dee ee ee es ee SECTION —- A Macroeconomics 1, Read the following statements carefully: Statement 1: Ex-post savings and Ex-post investments are equal at all levels of income. Statement 2: Under the effective demand principle rium output is equal to ex-ante ‘Aggregate Demand (AD). In the light of the given statements, choose the correct alternative from the following: (@) Statement 1 is true and statement 2 is false (0) Statement 1 is false and statement 2 is true (©) Both statements 1 and 2 are true (d) Both statements 1 and 2 are false 2. Identify, which of the following is not considered as ‘Normal Resident’ of India? 1 (a) An Indian citizen working in USA embassy located at New Delhi (®) An Indian officials working in Indian embassy in China (©) An Indian diplomats visiting Canada for a summi (2) An Indian working in an American Company located in New York for a period of more than 1 year 3. In a hypothetical economy, if entire ad lier would be + Gill up the blank wi a) (b) Zero (0) (c) Between zero (0) and one (1) (@) Infinity (2) {20} Tegether with® EAD Economics—12 of investment 1 @ scanned with OKEN Scanner300 400 200 250 income (€ crore) ‘Consumption (& ¢rore) Alternatives: (@) 30 © 20 ‘an economy the in I deposit er fe cortect reasons that may affect the supply of foreign exchansy 8, From the following, ident in an economy: ind by an Indian ing Taj Mahal mn from Microsoft (@) (and Gi) and (ii Yeas Consumption Consumption > Income Saving = Zero (0) (i) Consumption < Income (i) Saving < Zero (0) Alternatives: blank with correct alternative) (@) Autonomous (©) Current account Latest Examination Paper {*] @ scanned with OKEN Scannerny J. Suppos (2) Cateulate Net Value Added at Factor Cost (NVApe) from the following data: (ii) | Domestic Sates ii) _ | Change in stock w) (©) [Single use producer goods vi)_[ Net indirect tases Or . (6) Brom the following daa, estimate the value of Net Indirect Taxes (NIT) 3 So, Particulars ‘Amount (¥ in rore) | Net Nationat Product at Market Price (NNPyp) 148 (ii) _ |] Net Factor Income from abroad e2 (ii) _| Gross National Product at Factor Cost (GNP) : ()_| Consumption of fixed capital 100 “Trade Deficit must exist if a country is facign situation of Current Account Deficit (CAD) Defend or refute the given mentioned statement with valid arguments. a an economy isin equilibrium, From in the economy: (a) National Income (¥) = ¥ 10,000 crore (0) Marginal Propensity to Consume (MPC) = 0.8 (©) Autonomous Consumptin (¢) = € 100 crore the following data, calcualte investment expenditure 4 14, (a) (@ “With an objective to reduce inflation, government may reduce public expenditure.” Discuss the rationale behind such a step which may be taken by the Government. 3 (i) Define Effective Demand Principle. Or (6) ( State the meaning of ‘unintended accumulation of inventories’. 1 (ii) “Inan economy, Aggregate Demand (AD) is more than Aggregate Supply (AS).” Elaborate the possible impacts of the same, on the level of output, income and employment. 3 18, “Open Market Operation by the Reserve Bank of India (RBI) helps in regulating money supply in the economy.” Justify the given statement. 4 16. (a) (i) Distinguish between Revenue Expenditure and Capital Expenditure of a government, 7. (= with suitable example. (ii) “Under the ‘Produc 3 mn Linked Incentive’ scheme, the Government of India offers various benefits like reduced import-export duties, incentives to investors, tax-rebates etc." In the light of given statement, identify and explain the budget objective and its likely consequences Or 3 (©) (@ “Under ‘Zero Defect, Zero Effect’ (ZED) scheme, the government of India provides up to 80% subsidy to Mini, Small and Medium Enterprises (MSMEs).” Identify an explain the objective of government budget, highlighte id 3 in the given text. (@ Distinguish between Direct tax and Indirect tax with suitable examples. 3 (@) As per The Econimic Times report, dated April 11, 2023: 3 “Electric Vehicle sales cross 10 Lakh mark in financial year 2022-23.” Analyse the likely impacts of this news on Gross Domestic Product (GDP) and Welfare. (8) Discuss briefly, the circular flow of income in a two sector economy model. “Pogether witk® EAD Economics—12 © scanned with OKEN ScannerSECTION - B Indian Economic Development Alterna {@) Both Assertion (A) and Re; in (A) jon (A) and Reason (R} Column 1 "A. Structural transformation B, Great Leap Forward campaign CC. Less stress of usage on natural resources 1D. Slowdown in GDR, since 2014 Limited Urba Reduced global demand for Chinese products Low density of population ‘Aimed at massive ind (i ‘Alterna (@) A- (b) B- (© C- (iii) (d) D-@) mnale behind choosing Modernisation as a planning objective for the 1 20, After independence, the rat Indian economy were (@) To bring positive changes in the social outlook Equitable distribution of income ‘Technological Upgradi iv) Increase in Economic Divide Butaoos up the blank Alternatives: Animal Husbandry 0) (d) Organic Farming Horticulture Latest Examination Paper {=] @ scanned with OKEN Scanner22, Read the following statements care ne of the i Statement 1: Outsourcing is On a rn mp (c) Both statement (@) Both statements 1 a sonomic Reforms place in year 1980 1 1991 loosing political commitmen s used Market Social and economic opportu India, Pakistan and China have si ical endowments but totally di mt true and statement 2 is false iement 2 is true ents 1 and 2 (d) Both statements 1 and 2 are false dicator may be defined as the measure of the extent of demographi icipation ig, - al decision making in a country. (Fill up the blank with correct alternative) y (a) Economic (6) Health (©) Demographic (d)_ Liberty 26. Read the following statements carefully: i ‘asual workers are hired on a permanent basis and also get social security benef, Statement 2: Workforce comprises, both employed and unemployed person. n statements, choose the correct alternative from the following: ment 1 is true and statement 2 is false -ment 1 is false and statement 2 is true statements 1 and 2 are true statements 1 and 2 are false 21. The scheme of ‘Micro Finance’ is extened through credit provision. (Fill up the blank with correct alternative) 1 (a) Self Help Groups (b) Land Development Banks (©) Regional Rural Banks (@) Commercial Banks 28. (a) “Opening up of Suez Canal helped in establishing the British monopoly control over India’s foreign trade.” Justify the given statement with valid arguments. 3 Or (b) “Development of Railways during British rule encouraged colonial exploitation of the Indian resoruces.” Justify the given statement with valid arguments. 3 29, Explain the role of affordable healthcare facilities in promoting human capital in a country. 3 Rate of China 30, From the given data, compare and analyse the Population Density and Fer 4 and Pakistan, with valid reasons: Demographic Indicators, 2017-18 Estimated ‘Annual Population Sex Population Growth of Density, Fertility Rate. ‘Urbanisation Gamition) | Population | (persa.km) | at? 1352, 1.03 455 924 22 ca 1 046 48 949 W 9 [Pakistan 212 2.05 275 943 36. 3 (™} Together week® EAD Economics—12 @ scanned with OKEN Scanneryr 3 @ 3) “Infrastructural development is an esse mural sector in Indi \e for employment 4 he trend 3 1951-56" 1956-61" 1961-66" 1960-74 1974-79" 198035" 985-0" 100002 HT TD TOS 2005-10" 2010-12 -®GDP -@ Employment 1 favourite outsourcing id reasons in support of your answer. 3 (i) “In the post-reform period, the government of India decided to privatise profit making Public Sector Undertakings (PSUs).” Do you agree with the given statement? Give valid reasons in support of your answer. 3 Or Explain the need and type of land reforms implemented in the agriculture sector. 4 ‘Industrial sector performed poorly in the economic reform period.” Elucidate the given statemer 2 34, Read the following text carefully: India has aimed to reduce country’s carbon intensity by approximately 45% by 2030. To achieve this, ‘Green Finance’ plays a vital role. At the tages, Green Finance needs a big push from the government. The Indian government has identified projects worth & 25,000 crore that will be financed by proceeds from Sovereign Green Bonds. According to the framework approved by Finance Mi on financing public projects including renewable energy, sustainable water and waste mangement and pollution cont Business that take Green Finance can get benefit in various ways. It can help them follow different environmental norms and regulations and thus avoid possible fines. Adopting sustainable developmental practices enhances brand value of businesses. Customers tend to prefer brands tices. The energy-efficient and ot @) the Sovereign Green Bonds will focus fe change, clean transport F sustainable Profitability of businesses etc. On the basis of given text and common understanding, answer the fol (2) Define sustainable development. 1 () State the public project areas, where Sovereign Green Bond are focussed. 2 (©) How can busineses get benefit from Green Finance? 3 Latest Examination Paper {3] @ scanned with OKEN ScanneraN ANSWERS ———Y 1. (6) Both statements 1 and 2 2. @_ An Indian working in an Ameri re true * span Foxates in New York OF # Ped OF Moy Lyear R @) Infinity (=) 4 © 7 & (d) Standand of deferred payments 6 () 100 7. (6) $000 8. (6) (éand Gi) 9. (b) and @) tt SUR can a) Go) + ad ~ Imtermedinte consumption = Depreciation ~ (vi) + GO) SNA FT 200 + 10 + (10) ~ 120-3 ~ 20 = 57 lakhs Or (b) NNPge = GNP pe ~ Depreciation 1,300 ~ 100 = ¥ 1.200 crore NNPyp = NNPye + NIT 1400 = 1200 + NIT NIT = 1400~ 1.200 = € 200 crore 12, The given statement is refuted asthe Current Account Deficit (CAD) is Se concept. CAD Tre shen the foreign exchange payments on account of visible, invisibles and current gre in excess over the receipts of visible, invisibles and current transfers ‘A country may face a situation of CAD, even ifthe country has trade surplus, with greater negate balances on account of services and unilateral transfers. 13, We know that, at equilibrium, AD = AS or Y=C+l y=T+byel 10,000 = 100 + 0.8 (10,000) + 1 1 = 10,000 - 8,100 = & 1,900 crore Therefore, investment expenditure in the economy is ® 1,900 crore. 14. (a) (i) The rationale behind reducing public expenditure is to reduce inflation in the economy. By reducing public expenditure, the government aims to decrease overall demand, thereby reducing the pressure on prices. When aggregate demand decreases, there is less upward pressure on prices, which can help to mitigate inflationary pressures, (i) Effective demand principle indicates that level of AD which can be met by the corresponding AS in the economy. or (6) (i) “Unintended accumulation of inventories” refers toa situation where businesses end up holding more inventories than they italy planned or desired. This accumulation occurs whe __ the level of production exceeds the level of demand for goods and services in the economy: (i) When aggregate demand is more than ageregate supply in an economy, then the planned inventory would fall below the desired level. To bring back the inventory at the desired level, the producers expand the output. More output means more income. A rise in output ‘means rise in aggregate supply and rise in income means rise in aggregate demand. S0, output, income and employment will increase. {=} Fagether with® EAD Economics—12 fers © scanned with OKEN Scannerkot Operations (OMOs) reer othe operations of the entra bank in whieh the bank le anu! purchase of securities in the open market. Open Market Operations (OMOs) is Meaty able open market. Open Market Operations (OMOS) sumone bank controls the averall supply of the money in the economy py selling the securities, the central hank soaks tiqudy fom the economy which controls the ation in the economy, by decreasing the purchasing power of the peuple and by buying the eatities the central bank releases liquidity which controls deflation in the economy. by inereasine the purchasing power of the peopl vo (@) 0 Revere expenire I the expenditure which neither cess ability of the government, For example, expenditure on salaries, subsidies, pension® Capital expenditure iy the expenditure which either ereates an asset or reduces liability of the government, For example, expenditure on construction of dams, Gi Government can, through the budget, influence allocation of resources m with the help of taxes, subsidies and by direct participation in production. Production units which produce harmful produets like liquor, cigarettes, pan masala ete, can be heavily taxed, Tix concessions and subsidies should be given to encourage those production units which produce produets that are useful for the masses. Government can also directly produce goods and services which are normaly ignored by the private sector, on account of lack of enough profit from their production. Consequently, with the ‘Production Linked Incentive’ Scheme, the government seck fulfil socio-economic goal and enhance national output and employment opportunities. Or (©) (@ Government can, through the budget, inluence allocation of resources via the market mechanism, with the help of taxes, subsidies and by direct participation in production. Production units which produce harmful products lke liquor, cigarettes, pan masala cle. ‘ean be heavily taxed. ‘Tax concessions and subsidies should be given to encourage those production units which produce products that are useful for the masses. Government can also directly produce goods and services which are normally ignored by the private sector, on account of lack of enough profit from their production. With the subsidies to Mini, Small and Medium Enterprises (MSMES), the government may seek to enhance national output and employment opportunities and achieve socio-economic goals. In country like India, such steps ae fruitful for the overall growth of the nation. asset nor reduces i etc. i) [Basis Direct Dix Indirect Tax ‘Meaning | Ifa tax levied on the income or wealth | Iftaxislevied on the goods or services of fof « person is paid by that person | a person is collected from the buyers by ‘irecty to the government, iti called | another person (seller) and paid by him direct tax. tothe government, itiscalled indirectax. «Incidence | Falls on the same person, Imposed on | Falls on different person. Imposed fndimpaet | the income ofa person and paidby the | on the slles but collected from the same person. ‘consumers and paid by sellers. + Burden More income attracts more income tax. | Rate of taxis flat on all individuals, ‘Tax burden is progressive on people. | Therefore, mote income individuals pay less and lesser portion of their inconve a tax. Tax burden is tegressive, (or any other relevent point) 11, (@) Blectie Vehicle sales cross 10 lakhs mark in financial year 2022-28. The impact of this news fon the GDP and welfare is positive as production has increased, so the value of GDP will iso tise while as itis electric vehicle and not impacting the environment, hence, welfare I also improve, (6) ‘The given diagram illustrates 1 ne three phases of the circular flow of income. In the first phase, (Income generation phase) income is generated in the production unit. It can be failed the “production phase”. Production units now distribute this income to the factor Owners (belonging to the household sector) on account of they being responsible for its creation: This refers to the second phase of the journey of income, in which income travels Latest Examination Paper © scanned with OKEN ScannerY from the production units to households It canbe elled as “Income GIA Pon phase, the circular flow of income, Entering the final lap of the circular flow in the third pp," {income spending phase) income Circular Flow of Income Joes not remain with the houscholds. —ggome generation ingame dstrbute, They spend it to satisfy their wants \ of various goods and services Phaso i (consumption) and also on creating Ph##e! assets to expand their capacity (0 ‘earn. (Investment). Households buy these goods and services from the production units. So income in i journey reaches the point from where it began, Thus in this way the cit 18. (c) Assertion (A) is true, but Reason (R) is false 19. (©) C- (ii) 20. (c) (i) and (ii) 21. (@) Animal Husbandry 22. (c) Both statements 1 and 2 are true 23. (©) 1988 24, (c) Both statement 25, (d) Liberty 26. (d) Both statem 27. (a) Self help groups 28. (a) The opening of Income spending completes its course, some cular flow of 1s 1 and 2 are true yents 1 and 2 are false : rade route for ships operatin Canal provided a direct and shorter tra : : between India titan, which avoided the need for sailing around Arie, Ths, reduced Brita, made access tothe Indian market easier ane eerncmned 6 te eof arpa nt pomp money ono of Tn’ Fh al by the British government. or is it i rather than the needs of fh sed railways primarily to serve their own interest © o oe aan people. The i ys bad a significant impact on the Indian economy. It fostered oe ereiaisation of Indian agriculture, which adversely affected the self-sufficiency of village eae i faciitted the transportation of raw materials from India to Britain and the import of finished goods from Britain to India. 429. A heathy mind lives in a healthy body. A healthy person can work efficiently, with full potential aaaca ore effective manner. A healthy person contributes better in He development of the aessomy ofthe county, whereas an unhealthy person becomes the liability for an organisation cerimanty, Hence, the availability of affordable health care facilities ensures an increase 9 Iabour productivity which leads to the promotion of human capital in @ country- “The given data shows that China occupies the larger area as compared to Pakistan. The population denaty in China stands at 148 per sg. km which is lower than that of Pakistan at 275 per sa km, ‘The feility rate of China is 1.7 and of Pakistanis 36, double than that of China. The adoption of one child norm led to a significant decline in fertility rate in China. 31. (a) (i) Infrastructural development is indeed crucial for unlocking the full potential of the ural sector in India. The valid arguments to justify this statement are: ‘« Accessibility: Improved infrastructure such as roads, bridges, and transpor networks enhances accessibility to rural area. This fciltates the movement of goods Fig and people, reducing isolation and connecting rural areas to urban markets resources. 0 Feng me infrastructure provides rural businesses and farmers easier aces e bare i lomestic and international. This can lead to increased sales and profits 9 agricultural produce and rural products, stimulating economic growth in rural areas ion “Together with® EAD Economics—12 © scanned with OKEN Scanner. Petree productivity: Infrastructure facilities, and rural electification ean sign i ia rsluplesinc an nificantly boost ngricultur Sources ancl electricity enables farmers (0 ado} firming techniques, leading to increase ing to increased yiel : + Roral industries: myproved intastmetne catantetheet n a nae toed instactre supports the estas! and proto tural inlutes, Acces to let, water, and trangportaton networks ence ses the setting up of manufacturing units and agro-processing industries i rural creating employment opportunities ana inereenigg lol economic activi | ginaninend eemnareie increasing Ioeal economic activily : Eaveatlon and healthare: neastitre development in rl arts includes schools, healthcare faces, and browdband connectivity, eter edueationa and healthcare infrastructure improves the quality of life for rural residents, enhances human enpital development, and contributes to skilled workforce. Mais fatnrce evelopment aets as a catalyst in the overall development of the i) Human development is bused on the idea that education and health are integral 10 ‘human well-being and human beings are e . Or (6) Yes, indeed, in a country like India, self-employment plays a significant role in providing employment opportunities and contributing to economic growth because: # India has a vast informal sector where many individuals are self-employed, running small businesses or providing services suc fending, small-scale manufacturing, ageiculture, and services like transportation and repair services «# Self-employment offers Nex terms of working hours, location, and the type of work ‘one chooses to do. This flexibility can be particularly appealing in a country where formal job opportunities may be limited or where individuals have unique skills or circumstances. «+ Solfemployment encourages entrepreneurship and innovation. Many successful businesses in India have started as small ventures by individuals or families. These enterprises not only create jobs for the entrepreneurs but also for others as they expand « Self-employment provides a diversification of employment options. It allows individuals to create their own jobs rather than relying solely on the formal job market, which may be saturated or competit « The contribution of self-employment to the overall GDP of India is significant. Small and Medium Enterprises, many of which are self-employed ventures, contribute a substantial portion to the country’s GDP and employment. « Tn rural areas, self-employment in agriculture and related activities is erucial for livelihoods. Many small farmers, artisans, and craftsmen are self-employed, contributing to rural employment and economic sustainability «Self-employment often requires individuals to develop a diverse set of skills, from business management to marketing, This continual skill development can have long-term benefits for individuals and the economy as a whole. (any three) 32 (@) © The period between 1990 to 2012 had been a significant one, Introduction of economic refors in India has changed everything. Variables shown in the given graph show that GDP growth rate has taken an upward trend over the years whereas the situation of employment growth rate has scen major fluctuations white going down in overall trend, « GDP growth rate has increased from a meager 34% in 1991 to 7.890 in 2012. However, the employment growth rate has shown declining trends from 1.5% in 1991 t0 1.129% in 2012. «Between the period 1999-2005, the employment generation rate was at peak s independence, Le, 2.28% pa. with the corresponding GDP grow rate standing at a decent 6.1% pia. ‘The gup between the two variables is maximum between the period 2005-10 when the cmployment growth rate hit the lowest in history of independent tna, i, 0.287. In thersame period, the GDP growth rate had bit the highest level since independence to the tune of 8.7% pa. such a irrigation systems, water storage productivity. ypt modern Latest Examination Paper © scanned with OKEN Scanneriar phenomena of jobless growth’ ove ih, ud put in serious efforts on emp) + Indian economy has witnessed the pecull Ploymen, years. Learning from the situation, government Nit front and brought it to a level of 1.12% Dé between the perio 2010-12 on ct aya 20td, it has been # eal rollercoaster ride for the jn all the period between 199 ie ment Cros rate © Indian economy on the two fronts of GDP | (6) ‘The worker population ratio is a measure that expresses the proportion of the Working oe ‘Total number of worke Worker Population Ratio = ——~ population atement, In recent times, India see with the given st destination duc 10 fas Furthermore, id accuracy in In rourite destination ith the given stateme dies of commu aly ero Y aervices can be availed at a cheaper cont it “rhe low wage rates and skilled manpo, ‘or global outsourcing. rr it, ns in the post-reform period, im Base is profit making Public Sector Undertaking, ae orof the government. Rather these Publ : were inreasing IM eater managerial and operational autonomy, a oe eS SU) ere ether efficieney, infuse professionalism and ent ie to compete 0 1 liberalised global environment. 3. (a) (i) Yes,we ‘outsourcing information technology. reasonable degree of ski in India have made it © (ii) No, we do not agree wit government of India did no" c fps) as they were inereasing te Te re effectively in or ce, the land tenure system was characterised by intermediaries ime ofindepende peaches i rent from the actual tillers without (i) Atthe OO A camindars, jagirdars, etc. They collect ca spating to improvements on the farm, This demotivated the actual tillers and resulted there was an urgent need for land reform policy i roductivity. Due (0 this reason, The acura Soon India adopted the following types of land reform strategies: The 3eion of intermediaries: The zamindari system was abolished ‘and ownership rights were given to the actual tillers of Iand. : 4 Regulation of rent: Rent was regulated and a maxi of the crop was fixed. eae alimg: The maximum size of landholding that an agricultural household sould cane es limited. The surplus land was acquired after paying compensation and was re-distributed among poor farmers. «Consolidation of landholding: To increase productivity, farmers were given a bi pies ‘of land in place of small and fragmented fields. «+ Conperative farming: Cooperative farming was encouraged to get benefit fron) the gains of consolidation of holdings. (any three) (@ After the introduction of economic reforms in 1991, India opened its doors for the developed nationseconomies. With the arrival of Multinational Corporations (MNCS) ip India, the domestic producers had to face stiff competition due to availability of cheaper goods in Indian markets, Thus, demand for domestic goods reduced considerably, leading fo the slow down of industrial sector in the economic reform period 34, (a) Sustainable development is a concept that aims to meet the needs of the present gencraint without compromising the ability of future generations to meet their own needs. It involves balancing economic growth, social progress, and environmental protection to ensure long: | | term prosperity and wel-being for both present and future generations. (©) The Sovereign Green Bonds will focus on financing public projects including renewable energy, climate change, lean transportation, sustainable water and waste management and pollution control, (6) Businesses that take Green Finance can get benefits in various ways. It can help them follow difesent environmental norms and regulations and thus avoid possible fines. Adopting sustainable developmental practices enhances brand value of businesses. Customers ten to per brands i adopt clear sustainable development practices. The energy-efficient d other sustainable development practices promoted by i is saving cost, boosting protiabily imams Goes Fes te (@} “Together with® EAD Economics—12 imum limit of 33% of the value © scanned with OKEN ScannerSAMPLE PAPER SLT) rine Allowed: 3 Hours] 7 General Instructor )) This question paper contains two sections: Section A ~ Macroeconomics Section B - Indian Economic Development )) This paper contains 20 Mi le Choice Questions of 1 mark each, i) This paper contains 4 Short Answer Questions of 3 marks each to be answered in 60 to 80 words. )) This paper contains 6 Short Answer Questions of 4 marks each to be answered in 80 to 100 words. )) This paper contains 4 Long Answer Questions of 6 marks each to be answered in 100 to 150 words. ee SECTION - A Macroeconomics 1, Read the following statements carefully: 1 Statement 1: The maximum value of marginal propensity to consume is one. Statement 2; When income increases, consumption also increases. In the light of the given statements, choose the correct alternative from the following: (a) Statement 1 is true and statement 2 is false (6) Statement 1 is false and statement 2 is true (©) Both statements 1 and 2 are true (@ Both statements 1 and 2 are false goods is less than the Import including capi 2. If Export including ca that: (a) Balance of Trade is favourable (6) Balance of Trade is unfavourable Account of BoP is in surplus Account of BoP is in deficit i) Current Account Deposits (iv) Post Office Savings Alternat ( (©) @ and (b) @ and : 1 @ scanned with OKEN Scanner4, From the given diagrams, curve. {a) Stateme (6) Statement (c) Both statements 1 (@) Both statements 1 and 2 are false : 6. Based on the given chart, which of the following statements is correct regarding the shan ‘consumer goods in merchandise exports? Composition of merchandise exports across various classifications jement 2 is true Fe true wo ars "per cond i i i i Fras prs | 2 Fra Consumer goods | rtrmaste goede] Raw mars (a) It decreased from FY23 to FY24, (6) It increased from FY23 to FY24, (©) It remained the same in FY23 and FY24, (d) Iis the lowest among all classifications in FY24, 7. Suppose that the Balance of Trade (BoT) of a nation, exhibits a surplus of € 20,000 crore. The import of merchandise of the nation is half of the exports of merchandise to the rest of the world. The value of exports would be % crore, 1 (a) 30,000 (®) 40,000 (©) 24,000 (@ 35,000 8, Read the following statements—Assertion (A) and Reason (R). Choose one of the correct alternatives given below: 1 Assertion (A): APS is a flow concept, Reason (R): APS is the ratio of savings to income at a particular point of time. Alternatives: /(@) Both Assertion (A) and Reason (R) are true and Reason (R) isthe correct explanation of Assertion (A) (©) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) (©) Assertion (A) is true but Reason (R) is false (@) Assertion (A) is false but Reason (R) is true (2} “Together wath? EAD Economics—12 @ scanned with OKEN Scanneris the main source . % Ty cel fk of money (i Commercial Banks Government (jv) Business Firms ' Supply in an economy. 7 Alternatives: (a) (and Gi) are correct {0 Gi and (i) are correct (H) Only (i) is correct ‘e an economy i (@) (i) and (iv sn Suppo a0 ce 'y experiences an increase in consumer confidence, leading to a surge iM consumer spending on goods and services, At the same time, the government implements an infrastructure development plan, boosting public ivestment Pa fe quilibrium inthe economy's AD and AS? How wl these factors impact the (a) AD will increase, and AS will decrease, resulting in inflationa cs {@) AD will decrease, and AS will increase, causing ee (©) AD will remain unchanged, and AS will decrease, ieading 10 stagflation. (@ AD will increase, and AS will increase, promoting economic growth with stable prices. are correct 11, Calculate Gross Value Added at Market Price from the given data: 7 ‘SiNo Particulars Amount wt (in lakhs) (| Depreciation 20 (| onsets 20 (i | erange in stock (20 (@) | Expons 10 ()__| ingle use producer goods 120 12, (A) Give the meanings of Balance of Trade and Balance on Current Account of Balance of Payments Account. 3 Or (B) How is exchange rate determined in the foreign exchange market? equilibrium, Calculate the value of Marginal Propensity to Save from the 4 3 13, An economy following data: National income = 1000 crores ‘Autonomous consumption = 100 crores Investment = %120 crores 14, Read the following text carefully: {As per the news report published in The Economic Times on 9th October, 2020, RBI has kept the repo rate unchanged at 4.00% and reduced reverse eo 116 U0 3.350, In addition to that, the bank rate stands 4.654%. This has been done to limit the camage to the economy caused by the COVID-19 and subsequent lockdowns. Based on the given text and common understanding, (a) What does RBI monetary policy mean? (b) What does the bank rate mean? 1S, (A) Explain the ‘Banker Bank’ functio answer the questions that follow: wn of the Central Bank. Or 4 Sample Papers {#] (B) Define money supply and explain any (wo functions of money. © scanned with OKEN Scanner16, Read the following text caretully: Quarterly Estimates of GDP QE 2024-25 The National Statistical Olfice (NSO), Ministry of Statistics (MoSPI) is reteasing in this Press Note, Quarterly Estimates of Gre Dn for the Aprtdune Quarter (QU) af the Finaneal Year (FY) 202425 alone with its expenditure cent Prices, Quarterly Estimates of Groxs Vatu, long with year-on-year perce, 2022-23, 2023-24 and 2024.95 yy Domestic Product ¢ components both at Constant (2011-12) and Cu Adie (GVAY at Basie Prices by kind of economic activity Hl changes anal eapenditure components of GDP far QT of the years Constant and Current Prive J) isa crucial econo af all gonad serices pated in eonomy, ated fr nfiation, his case stay taptves the implications ofthe projected ren GDI growth ete of 6.7% i he Het uate {OUD of the Gal year 202425 in contrast othe 82% growth rate recorded in OF of he year 2023.24. increase in not Je indlieator thal measures the value joss Domestic Product (Ci five 2 Th valued at current prive compared to the same period in FY 2023: ; 4, Real GVA has grown by 6.8% in OL of FY 2024-25 over the growth rate of 3% in O1 of the previous financial year. This GVA growth in the QL of FY 2024-25 has been driven by significant growth in the Secondary Sector (84%), comprising of Construction (0s%), Electricity, Gs, Water Supply and Other Uility Services (10.47) and Manufacturing (7.0%) sectors. 4. Growth rate in Nominal GVA for Q1 of FY 2024-25 have been e growth rate in QI of FY 2 5, Private Final Consumption Expenditure ‘at Constant Prices, have witnessed growth ral FY 2024-25, 6. Net Taxes, at Current Prices, has observed the growth rate of 8.0% in 0.1% point gap between the growth rates of GVA and GDP. a1 GDP growth from 85% 09.7% indicates that the economy’ output, 1 faster pace in the first quarter of FY 2024.25 hhas expanded at ated at 9.8% over 8.2% (PCE) and Gross Fixed Capital Formation (GFCF), tes of 7.4% and 7.5% respectively in QI of Q1 of FY 2024-25 resulting “Sauce: hapten mopgonindeskefnlfieipressreleaseNAD PR, 30082024 pf (adaped and modified tanding, answer the following questions: On the basis of the given text and common und (a) What is the difference between Real and Nominal GDP? (6) Explain the method in which PFCE and GFCF are taken into consideration for calculating the national income of the country? 34351 17. (A) The Government, under Ujjwala Yojana, is providing free LPG kitchen gas connections to the families “below the poverty line’. What objective the government is trying to fulfil through the government budget and how? Expl (B) Explain the ‘redistribution of income’ objective of government budget. 343 Or (C) Are the following revenue receipts or capital receipts in the context of government budget and why? (i) Tax rece (ii) Disinvestment (D) Explain how the allocation of resources can be influenced in the government budget through taxes, expenditure and subsidies, a (#} Together with® EAD Economies—12 © scanned with OKEN ScannerSECTION - B Indian Economic Development 48, Read the following statements carefy 1 ‘Statement 1: Human capital treats human beings Statement 2: In human development perspective, In the light of the given statements, choose the (a) Statement 1 is true and stateme (b) Statement 1 is false and statem (©) Both statements 1 and 2 are true (@) Both statements 1 and 2 are false 1. Which of the following is not include cl reforms? ve in land reforms: i (c) Change in ownership of landholdings 4S a means to an end. hhuman beings are an end in themselves. correct alternative from the following: 2is false 2 is true (b) Abolition of intermediaries (@) Land ceiting 20, Arrange the following events of China in chronological order and choose the correct alternative: 1 () Great Proletatian Cultural Revolution (ii) Great Leap Forward Campaign Introduction of Economic Reforms (iv) First Five Year Plan Alternat (0) (i), (iv) (i), @ (b) (iv), (a), (@, (6) (i), (), @, Gi’) @ wo o io ti) 21. Observe the given figure carefully and answer the question that follows: 1 Wagah Border is not only a tourist place but also used for trade between and (@) India; China (®) China; Pakistan (6) India; Pakistan (@) India; Russia 22. China has ensured social security in rural areas. Public intervention in providing social infrastructure even prior to reforms has brought about positive results in human development indicators in China. China has performed exceedingly well in various health and economic indicators. Identify which of the following is not a health indicator? 1 (a) Infant mortality rate (6) Life expectancy at birth (6) Percentage of people below poverty line (@) Maternal mortality rate The stagnance in the agricultural sector during the colonial rule was caused mainly due to 1 (@) Lack of irrigation facilities (b) Land settlement systems (c) Low level of technology (d) Lack of resources sample Pape © scanned with OKEN Scanner24, Row the following statements carefully 1 " ree nations, L¢., India, Chip, Stutemeot 1: China has the smallest share of por among the He na a) Pakistan, ' Statement 2: China did not have any compubsion to intradt from the following In the fight of the given statement, ehoove the earrect alternative I " (a) Statement 1 is true and statement 2 is false (b) Statement 1 is false and statement 2 is tue (c) Both statements | and 2 are true (d) Both statements 1 and 2 are fae . 4 oard (CPCB) int _ 7 25, The Government of India set up Central Pataton onto Br ard (CPCB) address major environmental concerns i India, 1! 0; th = ih) 1975; one 11) 1970; thee ( nm 107 en (a) 1980; four : 7 Choose one of the corres 26. Read the following statements—Assestion (A) and Reason (R)- Choose a alternatives given belo : ic activiti orkers. Assertion (Ai All those who are engaged in economic activities are WOFKErS. ont Reason (R): Economie activities are those activities which contribute to gross national produc uce economic refroms in 17% two Alternatives: | a ; o ‘Hath Assertion (A) and Reason (R) are true and Reason (R) isthe correct explanation o Assertion (A) ; : (6) Both Assention (A) and Reason (R) are true and Reason (Ris not the correct explanation of Assertion (A) ; (6) Assertion (A) is true but Reason (R) is false (a) Assertion (A) is false but Reason (R) is true 27. “Google in India has hited 4000 graduate students.” The given statement deals with, sector employment. 1 (a) formal (b) informal (©) rural (@) urban 28, State whether the following statements are true or false with valid reaso1 3 (a) Brain drain is the major problem of human capital formation in India. (0) Gender bias is a hindrance to the process of skill formation in India. 29, (A) Give any three challenges facing Indian education system, 3 or (B) What are the limitations of non-institutional sources of credit? 3 30, Though China is the largest nation and geographically occupies the largest area among India and Pakistan, its density is the lowest. The population growth as being the highest in Pakistan, followed by India and China, Scholars point out the one child norm introduced in China in the {ate 1970s as the major reason for low population growth, ‘They also state that this measure led fo a decline in the sex ratio, the proportion of females per 1000 males, In light of the given text, how did China's one-chitd | Policy contribute to its low population and i subsequent decline in sex ratio? m 4 , 31, (A) Where was the zamindari system implemented by the British in India? Also, state its features , 143 Or (B) Discuss the outcomes of India’s Five Year Plans over the years, 4 “Tagether with® EAD Economics—12. © scanned with OKEN Scannerry 444 Read the following text carefully: The term globalisation refers to the integration of economy of a nation with the world economy. isa multi-faceted aspect. It is a result of the collection of multiple strategies that are directed at transforming the world towards a greater inter-dependence and integration. It includes the creation of networks and pursuits transforming social, economical, and geographical barriers. Globalisation tries to build links in such a way that the events in India can be determined by the events happening distances aw. Effect of Globalisation in India: India is one of the countries that succeeded significantly after the initiation and implementation of globalisation. The growth of foreign investment in the field of corporate, retail, and the scientific sector is enormous in the country. It also had a tremendous impact on the social, monetary, cultural, and political areas. In recent years, globalisation has increased due to improvements in transportation and information technology. With the improved global synergies, comes the growth of global trade, doctrines, and culture. Globalisation in the Indian economy: Indian society is changing drastically after urbanisation and globalisation. The economic policies have had a direct influence in forming the basic framework of the economy. Economic policies established and administered by the government also performed an essential role in planning levels of savings, employment, income, and investments in the society. Cross country culture is one of the critical impact of globalisation on Indian society. It has significantly changed several aspects of the country, including cultural, social, political, and economical. However, economic unification is the main factor that contributes maximum to a country’s economy into an international economy. On the basis of the given text and common understanding, answer the following questions: (@) What do you understand by the term ‘Globalisation’? State its impact on Indian economy. (@) List three arguments each in favour and against globalisation, 343 ‘M. (A) Discuss any two steps taken by the government in the direction of improving agricultural marketing system in India, since independence. (B) “Recently Indians have drifted away from the traditional knowledge and practices and caused large scale damage to environment”. Explain how, adopting the traditional p helpful in achieving the objective of sustainable development? or (C) ‘Pesticides are chemical compounds designed to kill pests. Many pesticides risks to people even if exposed to nominal quantities.’ In the light of the above statement, suggest any two traditional methods for replacement of the chemical pesticides. (D) ‘In recent times, the Indian Economy has experienced the problem of casualisation of the workforce. This problem has only been aggravated by the outbreak of COVID-19.’ Do you agree with the given statement? Discuss any two disadvantages of casualisation of the 343 ‘workforce in the light of the above statement Sample Papers © scanned with OKEN Scanner2 8 % 10, ML 2 ANSWERS —__ (©) Both statements | and 2 are true (c) Balance of Trade is unfavourable (©) @ and (iii) of | (4) Both statements 1 and 2 are false (a) It decreased from FY23 to FY24. (&) 40,000 Working Note: Balance of Trade in surplus = % 20,000 crore Imports = Half of Exports Let the amount of exports be & Balance of trade = Exports - Imports x = 40,000 ‘Therefore, the amount of exports is & 40,000 crore, (©) Assertion (A) is true but Reason (R) is false (@) @ and (i) are correct (4) AD will increase, and AS will increase, promoting economic growth with stable prices. GVAyp = [Gi + ()) + Gi) - = (200 + 10) + (20) - 120 = & 70 lakhs (A) * Balance of trade refers to the excess of the value of exports of goods over the value of imports of goods. Symbolically, BoT = Vy~Vy Where Vy. = Value of Exports Vyy = Value of Imports * Balance on Current Account of BoP refers to excess of inflows of foreign exchange over the outflows on account of all transactions (visible and invisible items) in the current account. * Balance of payments on current account is more comprehensive in scope than balance of trade. It includes not only imports and exports of goods which are visible items but al the invisible items such as services of shipping, banking, insurance, tourism ete. “Together with EAD Economics—12 = © scanned with OKEN Scannerge Fe rms of the other currency d and curv excl in 00 Jecline. Thus, the demand for fore 2 ‘the supply curve [5,85] is upward sloping wl 2 supply of foreign ex a incre’ This makes 8 foreigners since rupee is deprei i for our exports should therefore increase as nereases. The increased demand for our exports translates into greater supply of foreign exchange. Thus, the supply of foreign exchange increases as the exchange rate increases. ‘The intersection of the supply and demand curves deter and equilibrium quantity (OQ). 13, Given that, National Income (Y) = © 1,000 crores ‘Autonomous Consumption (C) = % 100 crores Investment = © 120 crores ‘According to the question, Y = C+ Mpc(y) +1 1,000 = 100 + MPC(1,000) + 120 1,000 - 220 = MPC(1,000) or pc = 280. = 0.78 1000 or MPS = 1- MPC MPS = 1-0.78 = 0.22 M, (a) The Reserve Bank of India is empowered to regulate the money supply in the economy through its monetary policy. It is the policy adopted by the central bank of an economy in the control or money supply. As the central bank has the sole monopoly in and supply of money. currency issue, it can control cre (6) The RBI can influence money supply by changing the rate at which it gives loans to the commercial banks, This rate is called bank rate in India. By increasing the bank rate, loans taken by commercial banks become more expensive, this reduces the reserves held by commercial banks and hence decreases money supply. A fall in the bank rate can increase the money supply. 18, (A) The Central Bank acts as a banker and supervisor to commer’ of them are: (@) It provides financial assistance to banks by discounting advances against approved securities. (b) It supervises, regulates and controls the act | banks in various ways. Some and through loans and jes of commercial banks. Sample Papers {8} @ scanned with OKEN Scanner>| (6) It provides the commercial banks with centralised clearing and remittance faci, (@) The commercial banks are required to maintain a certain percentage of deposits yi, Central Bank. The sole aim of these reserves is to enable the Central Bank to phe assistance in times of financial crisis. id Or (B) Money supply refers to the total stock of money held by the commercial banks at a particular point of time. The functions of money are: 7 ihe significance of money as a ‘store of value’ is that money ca stored for use in future. One can use one’s present income in future, because m, comes in convenient denominations and it is also easily portable, (6) Medium of exchange: This function has indeed solved the problem of ‘double coinciden, of wants’, found in the barter system. The buyer can now pay money to the sete, fand the seller, in turn, can buy whatever he wants to buy. Thus, money facilitates yy, exchange. (6) Unit of account: Thi for quoting prices keeping of accounts possible and led to the public and demand deposi, ith IM be ney is function means that monetary unit is treated as the standard yp, ‘or borrowing and lending activities etc. This function has made smergence of the banking system, 16. (a) Nominal GDP: The total market value ofall goods and services produced in a country during a specific period. It isa useful tool for tracking economic growth over time and estimar at current year prices. Real GDP: The value of all goods and services produced in a country during a specific period, adjusted for inflation. It is estimated at base year prices. Itis a more accurate measure of economic growth than nominal GDP because it removes the distorting effects of inflation It is the total value of a country’s goods and services in each period. (b) Gross Domestic Product (GDP) at Market Price is a measure of a country’s economic performance. It represents the total value of goods and services produced within a country, ‘adjusted for market prices. The formula to calculate GDP at MP is: GDPyp = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation (Gross fixed capital formation + Inventory investment) + Net Exports (Exports - Imports) 17, (A) The government under Ujjwala Yojana is providing free LPG kitchen gas connection to families “below the poverty line’. This is to help the poor people with a clean fuel for cooking purposes.This will improve their eyesight and health. Through this yojana, the government is trying to boost up ‘social welfare’. This step will also boost up the morale of the poor. Their productive efficiency will get enhanced, which will have a favourable impact on the national income. The government is trying to fulfil the objective of reducing inequalities in the income distribution, (B) The government budget shows its comprehensive exercise on the taxation and subsidies. The government imposes higher taxes on the rich and spends the revenue on the welfare of the poor. This helps in reducing inequalities in the distribution of income. Equitable distribution of income and wealth is a sign of social justice, which is the principal objective of any welfare state in India. Or (©). @ Taxreceipts are revenue receipts because they neither result in the creation of physical! financial assets nor cause any reduction in the liabilities of the government. (a Disinvestment is a capital receipt because it leads to reduction in the assets of the government. Disinvestment is the opposite of investment. It occurs when the government sells off its shares of public sector enterprises to the private sector. Together with EAD Economics—12 A © scanned with OKEN Scanner(p) Government cun, through the budget, infue mechanism, with the help of taxes, Production units which produce hart can be hea allocation of resources via the market Subsidies and by direct participation in production. aNd, Tie cone Mt Products ke tiquor, cigarettes, pan masa ete heavily Hons and subsidies should he given to encourage those production units which produce products that are useful for the masses, Government cin also directly produce goods and services which are normaly ignored by the private ScclOt, on account of lack of enough profit from their production. d (6) Both statements 1 and 2 are true (a) Use of HYV sceds 30. (0) Gs Gs Ds Gi) w. () z2, (0) Percentage of people below poverty line 33, (6) Land settlement systems 24, (¢) Both statements 1 and 2 are true 25, (0) 1974; two 26, (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) 21. (a) formal 28, (a) True, as people migrate from one place to another in search of better job opportunities and higher salaries. This puts a serious threat to the process of human capital formation. (6) Truo, as gender bias (particularly in rural India) does not favour female education as much as male education. 29, (A) The three challenges facing the Indian education system are: (@) The major challenge in the area of education is to bring all Indian children in the age group of 6-14 years under the purview of school education, (b) Per capita education expenditure differs across the states. This in turn leads to variation in educational opportunities and attainments across the states. Further, this is contrary to the purpose of equity (regional equality). (©) ‘Education for All’ still seems to be distant dream. This is because of the fact that no doubt the literacy rates have gone up relatively but the absolute numbers of illiterates in India are as much as India’s population at the time of independence. Or (B) The limitations of non-institutional sources of credit are: (a) Moneylenders and traders exploit small farmers by charging very high rate of interest on loans. (b) They manipulate poor farmers’ eredit accounts and keep them in debt trap. (©) They compel the farmers to sell their produce to them at low prices. (a) They do not issue any receipt after the payment is made by the farmer. (any three) 30, China's one-child policy strictly limited families to one child, drastically reducing birth rates. This led to a slower population growth and ultimately a lower total population, The traditional Chinese cultural preferences often favoured male children due to their role in carrying on the family name and providing support for aging parents. This preference, combined with the one- child policy, resulted in a higher number of female fetuses being aborted or abandoned. The samp pon {a1] © scanned with OKEN Scanner