2023

Co pa

SET-3
Series HFG1E/C
Q.P. Code 58/C/3
Roll No.
Candidates must write the Q.P. Code
on the title page of the answer-book.

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ECONOMICS
feres4 3f6 :80
Time allowed : 3 hours Maximum Marks : 80

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Please check that this question paper contains 23 printed pages.

Q.P. Code given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
Please check that this question paper contains 34 questions.
" Please write down the serial number of the question in the
answer-book before attempting it.
15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,
the students will read the question paper only and will not write any
answer on theanswer-book during this period.

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58/C/3
General Instructions :
Read the following instructions carefully and strictly follow them :
(i) This question paper contains 34 questions. All questions are compulsory.

(iü) This question paper contains two Sections :

Section A - Macro Economics
Section B- Indian Economic Development
(üi) This paper contains 20 Multiple Choice Questions Type questions of 1marh
each.

(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks
each to be answered in 60 to 80 words.
(v) This paper contains 6 Short Answer Questions Type-Il questions of 4 marks
each to be answered in 80 to 100 words.
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each
tobe answered in 100 to l50 words.
(vii) Attempt all parts of a question together.

SECTION A
Macro Economics

1. (A) If acountry exports goods worth 600 crore and imports goods
worth 450 crore, the value of Balance of Trade of the country
would be in
(Choose the correct alternative to fllup the blank)
(a) deficit of 150 crore (b) surplus of 150 crore
(c) deficit of 1,150crore (d) surplus of 1,150 crore

OR

58/C/3 3 P.T.0.
 (B) Remittances to Indian economny from abroad would be
entered on
side of account of Balance of Payment.
(Choose the correct alternative to fill up the blanks) 1
(a) credit, current (b) credit, capital
(c) debit, current (d)
debit, capital
2. Inerease in Real Gross Domestic Product (GDP) implies in
the economy.
(Choose the correct alternative to fill up the blank) 1
(a) increase in the level of income
(b) increase in the general price level
(c) increase in flow of goods and services
(d) decrease in aggregate demand
3. (A) Read the following statements carefully :
Statement 1: Tax is a legally compulsory payment.
Statement 2: Direct taxes are capital receipts of the government.
In light of the given statements, choose the correct alternative from
the following : 1
(a) Both Statements 1 and 2 are true.
(b) Both Statements 1 and 2 are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 1 is false and Statement 2 is true.
OR
(B) "Due to fall in the value of Indian currency () in the foreign
exchange market, the Reserve Bank of India decides to buy Indian
currency ()."
This type of action by the Central Bank is possible under
exchange rate system.
(Choose the correct alternative to fill up the blank) 1
(a) Flexible (b) Managed floating
(c) Fixed floating (d) Fixed
4. Read the following statements : Assertion (A) and Reason (R). Choose the
correct alternative from those given below : 1
Assertion (A): Recovery of loans is a revenue receipt for the government.
Reason (R): Recovery of loans leads to decline in financial assets of the
government.
Alternatives :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of the Assertion (A).
(b) Both Assertion (A)and Reason (R) are true, but Reason (R) is not
the correct explanation of the Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.
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58/C/3 5
5. V-axis
Aggregage
demand
/ Aggregate
supply Y =C+ S

AD
E
AD

45°
X-axis
Yp Income /Output / Employment
In the given figure, what does the gap 'EF
represent ?
(Choose the correct alternative) 1
(a)
(b)
Deflationary gap
(c)
Inflationary gap
Excess demand
(d) Full employment equilibrium
For Visually Impaired Candidates Only:
If in an economy, actual aggregate demand falls short of
to maintain the full employment level, such a demand required
as
situation would be known
(Choose the correct alternative to fill up the blank) 1
(a)
Deflationary gap
(b) Inflationary gap
(c) Excess demand
(d) Full employment equilibriumn
6. Read the following statements carefully :
Statement 1: Capital receipts of the government do not create any
liability.
Statement 2: Revenue receipts of the government are regular in
nature.
In light of the given statements, choose the correct
alternative from the
following:
(a) Statement 1is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2are true.
(d) Both Statements 1and 2 are false.
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P.T.0.
7. Read the following statements carefully:
Statement 1: Ex-ante savings represent value of planned savings.
Statement 2 : Savings are directly related to the level of national income.
In light of the given statements, choose the correct alternative from
following :
(a) Both Statements 1 and 2 are true.
(b) Both Statements 1 and 2 are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 1 is false and Statement 2 is true.

8. Average Propensity to Consume refers to

(Choose the correct alternative to fill up the blank) 1
(a) level of income at which savings are equal to income
(b) additional income that is not saved
(c) ratio of savings to the income
(d) ratio of consumption to the income

9. In order of encourage investmentsin the economy, the Central Bank may

(Choose the correct alternative to fill up the blank) 1
(a) reduce Cash Reserve Ratio
(b) increase Cash Reserve Ratio
(c) increase Bank Rate
(d) sell off government securities in open market

10. A tax whose burden can be shifted onto others is known as tax.
(Choose the correct alternative, fll in the blank) 1
(a) Income tax
(b) Wealth tax
(c) Corporation tax
(d) Goods and Services Tax (GST)

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 11. From the following data, calculate Revenue deficit and Primary deficit : 3

S.No. Amount
Particulars (in crore)
i. Tax receipts 134
ii. Capital receipts 110
iii. Non-tax receipts 132
iv. Borrowings 80
V.
Revenue expenditure 100
vi. Interest payments 70

12. (A) Suppose in an imaginary economy, Gross Domestic Product (GDP)

at market price in 2019 - 20 was 5,000 crore, National Income
was 3,500 crore, Net Factor Income paid by the economy to rest
of the world was 450 crore and the Net Indirect Taxes was
400 crore.
Estimate the value of consumption of fixed capital for the economy
from the information given above. 3
OR
(B) State any three precautions that are taken while estimating
national income by production method. 3

13. From the following data about an economy, calculate : 4

(a) Equilibrium level of national income
(b) Total consumption expenditure at equilibrium level of national
income
(i) C= 200 + 0-75 Y, where C = Consumption, Y = Income
(ii) Investment expenditure (I,) = 4,000crore
14. (A) State themeaning of the following :
(i) Investment multiplier 2
(ii) Full employment 2
OR
(B) Describe the adjustment mechanism, if ex-ante aggregate demand
(AD) is less than ex-ante aggregate supply (AS). 4

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15. Explain two sourcesof supply of foreign exchange. 4

16. (i) "As per announcement made by the Governor of the Reserve Bank of
India (RBI) on May 4, 2022, it has been decided to increase the Cash
Reserve Ratio (CRR) by 50basis points fromn 4% to 4:5%.
Analyse the impact of this step of RBI on total credit creation in the
economy. 3

(i) Explain the 'Store of Value' function of money. 3

17. (A) () State the meaning of domestic income. 2

(ii) Discuss briefly how distribution of income affects the welfare

of an economy. 4

OR

(B) From the following data show that, Net Value Added at factor cost
(NVArc) is equal to the sum of factor income : 6

Amount
S.No. Particulars (in crore)
i. Consumption of fixed capital 90
ii. Imports of raw material 120
iii. Change in stock 240
iv. Goods and Services Tax 60
V Domestic sales 2,160
vi. Distributed profits 180
vii. Retained earnings 120
viii. Purchase of raw material 840
ix. Exports 240
X. Rent and Royalty 90
Xi. Compensation of employees 720
xii. Interest 540

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 SECTION B
Indian Economic Development
18. Under the British rule, Indian agricultural output witnessed stagnation
due to
1
(Choose the correct alternativeto fillup the blank)
(a) drain of Indian wealth
(b) land tenure system
(c) introduction of tele-communications
(d) decline in handicrafts
19. Read the following statements carefully :
Statement 1: Economic reforms of 1991 created a growth path for all
the sectors simultaneously.
Statement 2: Economic reforms of 1991 ensured accelerated growth
rate in agriculture sector.
In light of the given statements, choose the correct alternative from
following : 1
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1and 2 are true.
(d) Both Statements l and 2 are false.

20. (A) An arrangement in which a worker uses his own resources to make
a living is known as employment.
(Choose the correct alternative to fill up the blank) 1
(a) Self (b) Regular-salaried
(c) Casual (d) Wage
OR
(B) Rohan, the. owner of a land, grows only two crops in a year. He
works for 8 - 9months and for the rest of the year he remains
unemployed.
In the remaining part of the year, Rohan faces
unemployment.
(Choose the correct alternative to fill upthe blank) 1
(a) Disguised (b) Seasonal
(c) Frictional (d) Cyclical
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21. Read the following statements carefully :
Statement 1: Human capital benefits only individuals and not the
society.
Statement 2: There are positive externalities of investment in human
capital as society.
In light of the given statements, choose the correct alternative from
following:
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and2 are false.
22, "In order to reduce over-dependence on agriculture sector, it is necessary
to opt for diversification,"
With reference to the given statement, diversification includes
(Choose the correct alternative to fill up the blank) 1
(i) Change in cropping pattern
(ii) Shift of workforce to agriculture allied activities
(iii) Shift of workforce to non-agriculture sector
Alternatives :
(a) (i)and (ii) (b) (i),(i) and (iii)
(c) (i) and (iii) (d) Only (i)
23. (i) Read the following statements : Assertion (A) and Reason (R).
Choose the correct alternative from those given below : 1
Assertion (A): China has the highest life expectancy in the world.
Reason (R): Maternal Mortality Rate of India is higher than
that of China.
Alternatives:
(a) Both Assertion (A) and Reason (R) aretrue and Reason (R) is
the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R)
is not the correct explanation of the Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) istrue.
OR

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 (ii) In China, reforms were introduced in phased manner. In the second
and later phases, reforms were introduced in sector.

(Choose the correct alternative to fill up the blank) 1

(a) Agrieulture
(b) Industrial
(c) Foreign Trade
(d) Demographic
24. In the 1970s, Pakistan nationalised the industries related to
goods.
(Choose the correct alternative to fillup the blank) 1

(a) Consumer
(b) Sports
(c) Capital
(d) Defence

25. India is not a member of which of the following regionalglobal economic

groups? (Choose the correct alternative) 1

(a) SAARC (b) BRICS

(c) G-7 (d) G-20

26. In terms of the sectoral contribution to Gross Domestic Product (GDP),

economy of India is relying more on sector.
(Choose the correct alternative to fill up the blank) 1

(a) Primary (b) Secondary

(d) Financial
(c) Tertiary
27. The Government of India enacted the Right to Education' as
fundamental right for all children in the age group of. years.

(Choose the correct alternative to fill up the blank)

(b) 6- 12
(a) 6-14
(d) 5- 14
(c) 5- 13
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58/C/3
 28. (A)
"Casual workers often work in very poor working conditions."
Justify the given statement.
OR
(B)
State and discuss any two obstacles that hinder the mechanism of
agricultural marketing. 3

29. Elaborate any two ill-effects of Deforestation as depicted in the given

picture. 3

Loss of Biodiversity
Increased Wildfires Increased Atmospheric CO,

Ill-effects of Deforestation

WATER CYCLE

Increased Flooding Increased Drought

Disruption to Water Cycle
30. "Despite being the main occupation of about 85% of the country's
population during British rule, agricultural sector continued to
experience stagnation."
Briefly explain any two reasons responsible for the backwardness of
Indian agriculture on the eve of independence. 4

31. (A) Explain how 'expenditure on information' and 'expenditure on

migration' acts as a source of human capital formation. 4
OR
(B) Explain any two objectives behind providing more and more
institutional credit to farmers. 4

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32.
Appraise the developmental journey of India since 1947. 4
33. (A) (i) How did horticulture encourage rural development in India ?
(ii) Explain briefly any twofunctions of the environment. 3
OR
(B) (i) Distinguish between Green Revolution' and Golden
Revolution'. 3
(iü) State any three limitations of organic farming.
34. Read the following text carefully and answer the given questions on the
basis of the same and common understanding:
Goods and Service Tax collections rose almost 20% in April 2022 to reach
a fresh high of nearly 1-7 lakh crore, pointing to a continued buoyancy
in revenue due to higher economic activity and tighter regulation. For the
first time gross GST collection has crossed the 1-5 lakh crore mark.
Total number of e-way bills generated in the month of March 2022 was
77 crore, which is 13% higher than 6-8 crore e-way bills generated in the
month of February 2022, which reflects recovery of business activity at a
faster pace.
During April 2022, 1-1 crore GST returns were filed. The filing
percentage for GSTR-3B in April 2022 was 84-7% as compared to 78-3%
in April 2021.
(i) "Goods and Services Tax (GST) is a comprehensive indirect tax."
Elucidate. 3
(ii) Buoyancy in revenue reflected recovery of business activities at a
faster pace." Justify the given statement with a valid explanation. 3

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