MARKING SCHEME ECONOMICS MODEL QP -3; CLASS XII;

S.NO. ANSWERS MARKS

1. b 1
2. d 1
3. c 1
4. c 1
5. d OR part (c) 1
6. c OR part (a) 1
7. c 1
8. c-iii OR part (d) 1
9. a 1
10. c 1
11. Value added by A= ₹1500; B=₹500 ; C=₹700 3
12. BoP is based on the principles of double entry system. Any deficit or surplus
created through autonomous transactions is corrected by corresponding surplus or
3
deficit in the accommodating transactions by the monetary authority. (Follow the
word limit.)
OR
Forex rate refers to the rate at which one currency is exchanged for the other.
Give any two reasons such as import of goods & service, tourism, unilateral
1
transfer sent abroad, purchase of foreign assets, speculation and explain both in a
2
sentence each. (Follow the word limit.)

13. MPC = 0.8 ; K=1/1-MPC = 5 ; ΔY=500 ; K= ΔY/ ΔI ; ΔI = 100 4

14. Dear Money Policy. Explain w.r.t Russia- Ukraine war causing Inflation and how
4
making credit costlier will help curb price rise. ( Follow the word limit.)
15. Explain the Bankers’ Bank and Supervisory function of the Central bank.
OR
The money/credit creation by the commercial banks is determined by the amount
of primary/initial deposit and the LRR. Take hypothetical Initial deposit, LRR 4
percent and then explain how Secondary deposits will increase money supply on
the basis of Money/Credit Multiplier.

16. a) When GDP of a given year is estimated on the basis of price of base year it is
called Real GDP. Yes, Real GDP is a better indicator for reflecting growth of an 3
economy because Real GDP is affected by changes in physical output only. It is a
better measure to make periodic comparisons over different years. It facilitates
international comparisons.
b) State and explain any three precautions such as Transfer incomes, income from
sale of second-hand goods, income from sale of shares and bonds, windfall gains, 3
imputed value of services provided by owners etc.
17. Study the data and comment on the increasing or falling trend in all the given 6
categories of receipts, expenditures and deficits.
OR
a) Revenue Expenditure: neither creates assets nor reduces any liability of
the government. Recurring in nature as it is spent by government on
day to day running of departments. E.g. salary, pension, interest etc. 3
b) Capital Expenditure: either creates an asset or reduces a liability of the
government. Non-recurring in nature as it is incurred mainly for
acquisition of assets and granting loans. 3
PART –B (INDIAN ECONOMIC DEVELOPMENT)
18. b 1
19. c OR part (d) 1
20. d OR part (b) 1
21. a 1
22. 4 1
23. b 1
24. d 1
25. b OR part (b) 1
26 a 1
27 a 1
28 Discuss Global warming, land degradation, air and water pollution, ozone layer
3
depletion, loss of bio-diversity etc. (Follow word limit)
29 Classify the efforts of the government into ‘Direct Employment’ and ‘Indirect
Employment’. Explain both the categories as per word limit.
OR 3
Agricultural marketing is a process that involves assembling, storage, processing,
transportation, packaging, grading and distribution of different agricultural
commodities across the country. 1+2
Explain any two problems faced by farmers such as manipulation by big traders,
lack of market information, lack of storage facilities etc in brief.
30 Study the data and analyze on a comparative basis about the absolute population,
4
population growth rate and sex ratio figures of India, China & Pakistan.
31 It was a ‘Tax Administration Measure’. Channelized savings into formal financial
system. Created a cash-lite economy. Curbed corruption and black money. Real
estate prices fell. Though difficulties were faced by the general public in getting
their high denomination notes changed. (Follow word limit)
OR 4
Import substitution policy with two definite objectives of savings of precious
foreign exchange and achieving self-reliance. Use of tariffs and quotas to restrict
level of imports so that domestic firms could expand without fear of competition
from foreign firms. (Follow word limit)
32 a) True, as greater earning in the places to which labour has migrated is more
than increase in cost incurred due to migration.
2
b) False because the Act was enacted to make free education a fundamental
right of all children in the age-group 6-14 years.
33 a) To safeguard the interest of farmers the government fixes the minimum 2
support prices of agricultural products at which the government offers to
buy any amount of grains from the farmers.
b) Food Corporation of India purchase wheat and rice at the procurement 2
prices to maintain the buffer stock in the years of surplus production so that
it can be used during shortages. It helps to maintain regularity in supply
and stability in prices. 2
c) It operates through a network of ration/fair price shops which offer
essential goods to the weaker sections of the society like wheat, rice,
kerosene, sugar etc. at a price below the market price.
OR
Explain the various causes of unemployment such as slow rate of economic
growth, population explosion, underdeveloped agriculture, defective education
system, slow growth of industries, decline of cottage and small-scale 6
industries, faulty planning etc. (Follow word limit)
34 (a) Virtue aspects: provides financial cushion to farmers, facilitated use of HYV
technology for the farmers, facilitated purchase of expensive farm inputs.
Vice aspects: huge financial burden on the government, indirect subsidy in the form of
MSP has mounted government expenditure, compulsion to cope with loan-waivers for the
farmer, misappropriated benefits, wasteful consumption etc.
(Follow word limit) 3
(b) I completely agree with the statement. The need of the hour is not to do away
with subsidies but to ensure that it’s benefits are directed towards the intended
beneficiaries. Subsidies serve their true purpose when they are based on economic
considerations in any sector whether agriculture, education, health etc.. For e.g. for
helping the small farmers in agriculture subsidies must be given and that too in a 3
time bound manner. But giving of subsidy is not justified when based on political
considerations leading to the benefits being reaped by rich farmers rather than the
poor farmers.
(Follow word limit)