Q.P.
Code: 30/23/3
CLASS XII
ECONOMICS (030)
ANSWERS
Q.NO SCORE KEY SCORE
1. c)Both (a)and (b) OR d)None of these 1
2. b) National Statistical Office 1
3. d)Assertion (A)is false ,but Reason (R)is true 1
4. c)both (a) and (b) 1
5. d)fiscal deficit is equal to interest payments 1
6. d)export and import of all goods and services 1
7. a) Both Assertion (A) and Reason (R) are true and reason (R)is the correct 1
explanation of Assertion
8. d)Tendulkar committee 1
9. b)both assertion (A)and reason(R)is not true 1
10. a)farming 1
11 Mixed income is related to the income of the self –employed person, who use their
own factors if production like own labor, land, capital, organization,
entrepreneurships produce goods income generated by these self-owned factors
are thus a mixed of wages, rent, interest and profit thus they known as mixed
economy of the self-employed.
OR 3
Non-monetary exchange refers to activities like service of family members
provided. These activities are not evaluated in monetary terms ie are not paid for.
So, they may be left out from the estimation of National Income due to non-
availability of data. But the fact is that these activities do contribute to the welfare
of the people.
12 NVAFC=iii+iv-ii-v-depreciation
=20+2-5-1-1
=22-5-1-1
=15 Lakhs
Depreciation =cost of the fixed capital goods/life span=10/10=1
OR
Autonomous transactions are those international economic transactions which
are independent of the state of Balance of Payments (BOP). These transactions 3
generally take place with ‘economic motive’. These transactions are called ‘above
the line’ transactions in the Balance of Payments account. Whereas; 3 1½ 2
Accommodating transactions are those international economic transactions
which are undertaken (by competent authorities) to cover the surplus or deficit in
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Balance of Payments. These transactions are independent of any economic motive
and are called ‘below the line’ transactions in the Balance of Payments account.
13 Y = AD
Y= C+I
C = C + bY + I
MPC = 1 – MPS
1 = 1 – 0.3 = 0.7 4
Y = C + bY + I
800 + 100 + 0.7(800) + I
700 = 560 + I
I = 700 – 560
Investment Expenditure = 140
14 The given instance where, Reserve Bank of India has sold government securities 4
in the secondary market indicates towards inflation as a possible cause behind the
action taken by RBI. By selling off the government securities, RBI withdraws
money from circulation and thereby reducing the lending capacity of the
commercial banks. In this process, the economy will experience contraction of
credit, leading to reduction in consumption and investment demand.
Consequently, the inflationary pressure in the economy will get eased out.
15 (i)Increase 1
(ii)(c) Rise in aggregate demand 1
(iii)Inflation 1
(iv)(d) No change in output/employment but increase in general price level. 1
16 ANSWER;
Income method
= (iv)+ (v) + (vii) + (xvi) + (viii) – (x) +(xiv) + (ix) – (xii)
= 90+ 210+ 100+ 450+ (20-40) + 20+ (55-25) 6
=880 crores
Expenditure method
(i)+ (iii) + (xi)-(xiii) + (xv) + (viii) – (x) + (xiv)
= 250+ 150+ (60-80)+ 500 + (20-40) + 20
=880 crores.
17 Revenue expenditure
1. Revenue expenditure neither creates any asset nor reduces any liability of the
government
2. It is incurred for normal running of government departments and provision of
various services.
3. it is recurring in nature as such expenditure spent by government on day-to- 6
day activities
4. Example; salary, pension interest, etc
Capital expenditure
1. Capital expenditure either creates an asset or reduces a liability of the
government.
2. It is incurred mainly for acquisition of assets and granting of loans and
advances.
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3. It is non -recurring in nature.
4. Example; Repayment of borrowings, Expenditure on acquisition of capital
asset etc.
18 a)Disguised Employment 1
19 (b)privatization 1
b) 1948
20 a)chipko movement 1
21 a)64 percent 1
22 c)It gave much important to manufacturing 1
23 c)Gujarat 1
24 b)iv,ii,i,iii 1
25 c)3-c OR c) Use of thermal power 1
26 D)Valmiki Ambedkar Awas Yojana(VAAY) 1
27 d) Assertion (A) is false but Reason (R) is true. 1
28 Green Revolution: It is correct and well accepted statement .This is because a good
proportion of the rice and wheat during the Green Revolution was sold in the
market by the farmers(market surplus)the price of food grains fell and low income 3
groups benefited from this ,because as percentage of their income on food. Not
only that the green Revolution enabled the government to procure sufficient food
grains its “buffer stock “which could be used during the food shortage period.
29 Industrial policy 1956 formed the basis of the second Five Year Plan which is
known as the in IPR 1956 classified the industries into three categories:
Category I Included industries in which would be owned exclusively by the state.
Category II Included industries in which the private sector could supplement the
efforts but sole responsibility for starting new units rested in hands of the state.
Category III Included the remaining industries which were to be in the private
sector but under the control through a licensing system.
2 (or)
Protection from imports took two forms 3
a) Tariff was a tax on imported goods, which made these goods relatively
expensive. As a result their consumption.
b) Quotas: referred to the quantity of goods which could be imported.
Both of these formed aimed to restrict imported and thereby protected the
domestic form from foreign trade as per the protection policy; it was assumed that
if the domestic industries.
30 Self analysis 4
31 a) Indian Oil Corporation Limited. 1
b) Land ceiling means fixing the maximum size of land which could be owned
by an individual, beyond which it would be taken over by the government
and would be allotted to landless and small farmers. The purpose of land 3
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ceiling was to reduce the concentration of land ownership in few hands and
promote equity.
OR
c) After independence the government of India took several
institutional/land reforms to ensure transformation of Indian agriculture,
such as: i) Land ceiling – It ensured reduction of concentration of land
ownership in few hands. ii) Abolition of Zamindari system – It focused on
elimination of farmers’ exploitation and promotion of agricultural growth.
These reforms have led to stability of farming as an occupation and
promoted equity.
32 a)The given statement is not true. India has a rich stock of scientific and technical 2
manpower in the world. Also, India has taken a number of steps to improve it
qualitatively and ensure that they are optimally utilized.
b)The given statement is not true to perfection. These two may sound similar but
are not exactly same. Whereas, human capital considers education and health as 2
a means to increase labour productivity, human development is based on the
idea that education and health are integral to human wellbeing.
33 Information technology has revolutionized many sectors in the Indian economy. 6
It is widely accepted that IT will play a critical role in achieving sustainable
development and food security in the 21st century.
Through appropriate information and software tools government has been able
to predict areas of food insecurity and vulnerability to prevent or reduce the
likelihood of an emergency.
• IT also circulates information regarding emerging technologies
and its applications, prices, weather and soil conditions for
growing different crops, etc.
• IT sector is also generating employment opportunities in the
backward areas. For example, info kiosk has been started in the
rural areas, to enable the kiosk owner earn a reasonable income by
providing different services like e-mail, video- conferencing etc.
OR
1. the great leap forward campaign initiated in 1958 in China aimed at
Industrialising the country on a massive scale.
2. People were encouraged to set up industries in their backyards. In rural
areas commune system was started under which people collectively cultivated
land.
3. The GLF campaign met with many problems like a severe drought caused
havoc in China killing about 30 million people.
34 (A) The system of landholding and revenue collection by zamindars. : the 2
land held or administered by a zamindar.
(B) (a) seventh (b) import substitution 4
(c) technical reforms (d) all of these
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