ECONOMICS QP (1)
ECONOMICS QP (1)
2 Read the following statements – Assertion (A) and Reason (R). Choose the correct 1
alternative given below:
Assertion (A): Before break-even point, APC is greater than 1.
Reason (R): At initial level, consumption is greater than income.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).
c. Assertion (A) is true, but Reason (R) is false.
d. Assertion (A) is false, but Reason (R) is true.
11a On the basis of the following data, calculate the value of Net Value Added (GVA) at 3
Factor cost:
Sl No Particulars Amount
(in lakh)
(OR)
b)
What is meant by problem of double counting? How can this problem be avoided?
13(a) “When ex-ante Aggregate Demand (AD) is more than ex-ante Aggregate Supply 4
(AS), it results in an accumulation of unintended inventories.” Defend or refute the
given statement, giving valid reasons in support of your answer.
OR
Assume the following for a hypothetical economy :
(b) (i) Autonomous Consumption Expenditure (C) = Rs. 25 crore
(ii) Marginal Propensity to Save (MPS) = 0.1
(iii) Level of Income (Y) = Rs. 2,000 crore
(iv) Autonomous Investment (I) = Rs. 25 crore
Is the economy in equilibrium situation ? Justify your answer with valid
calculations.
14 Read the passage given below and answer the questions that follow. 4
A change in the rupee-dollar exchange rate represents the change in external value
of rupee. The value of rupee, in terms of dollar, has been falling continuously over a
period of time. Since rupee-dollar exchange rate is determined by the demand for
and supply of dollars, it is possible that the value of rupee slides further if
appropriate measures are not taken.
The Reserve Bank of India, in-charge of both internal and external value of rupee,
has repeatedly emphasised on maintaining stability in the foreign exchange market.
(1) What kind of exchange rate system is being referred to in the passage?
(ii) 'The value of rupee, in terms of dollar, has been falling continuously over a
period of time. Give the economic term for this phenomenon.
(iii) How would this phenomenon affect the export?
15 Explain the concept of excess demand. How can government spending policy be 4
helpful in correcting the situation of deficient demand?
16 Read the passage given below and answer the questions that follow.
The Monetary Policy Committee (MPC) increased the repo rate, at which RBI lends
short term funds to the commercial banks, from 6.25 percent to 6.50 percent. This
increase in repo rate is based on the increase in the key rate by 250 bps. The
Committee also decided to continue the withdrawal of money supply in the
economy.
[Source (Edited): The Economic Times, Feb. 8, 2023) 1
(i) Which function of central bank is hinted at, in the passage given above? 1
(ii) In which situation does central bank adopt the measure given in the above
passage?
4
(iii) Explain any two monetary measures that can be used to accomplish a similar
objective, other than the one given in the above passage.
17 a) Why are net exports added in the total expenditure in measuring National income 2
by Expenditure method?
b) With the help of a reason, explain why the following are included in calculation 2
of National Income.
(i) Goods supplied free of cost by the government
(ii) Own account production
2
c) Outline any two precautions that should be taken in estimation of National
income by Expenditure method.
OR 6
Calculate National Income by (i) income method (ii) expenditure method
Sl no Particulars In crores
18 Read the following statements – Assertion (A) and Reason (R). Choose the correct 1
alternative given below:
Assertion (A): More proportion of female workforce is employed in the primary
sector as compared to proportion of male workforce.
Reason (R): Male workforce get opportunity in both secondary and service sector
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).
c. Assertion (A) is true, but Reason (R) is false.
d. Assertion (A) is false, but Reason (R) is true.
20 Under IPR 1956, the private sector was kept under state control through licensing 1
system. The objective of such policy was
(a) to promote regional equality
(b) to ensure that production exceeds what the economy required
(c) to ensure that private sector enterprises should not create monopoly
(d) Both (a) and (c)
21 What does the image given below indicate related to the environment? 1
24 Economic reforms were introduced in the year ------ in India and in the year -------in 1
Pakistan.
a. 1978, 1988 b. 1988, 1978
c. 1978, 1991 d. 1991, 1988
Column 1 Column II
26 In 1995, a thrift and credit society was started as a small savings bank for poor women 1
with the objective to encourage savings. Identify the society.
a. Kudumbashree
b. Tamil Nadu Women in Agriculture (TANWA)
c. National Bank for Agriculture and Rural Development (NABARD)
d. Community Investment Support Fund (CISF)
28 On the basis of the data given below, outline and discuss the shift in employment and 3
output for China and Pakistan.
OR
3
Give reason for the slow growth and re-emergence of poverty in Pakistan
29 Identify the situation depicted in the given figure and explain any one strategy to 3
effectively overcome the problem.
30 Read the following hypothetical text and answer the given questions: The performance
(a) of the Indian economy during the period of first seven five year plans (1950-1990) was
satisfactory if not very impressive. On the eve of independence, India was an
industrially backward country, but during this period of first seven plans our industries
became far more diversified, with the stress being laid on the public investments in the
industrial sector. The policy of import substitution led to protection of the domestic
industries against the foreign producers but we failed to promote a strong export
surplus. Although the public sector expanded to a large extent, it could not bring the
desired level of improvement in the secondary sector. Excessive government
regulations prevented the natural trajectory of growth of entrepreneurship as there was
no competition, no innovation and no modernization on the front of the industrial
sector. Many Public Sector Undertakings (PSU’s) incurred huge losses due to
operational inefficiencies, red-tapism, poor technology and other similar reasons.
These PSU’s continued to function because it was difficult to close a government
undertaking even if it was a drain on the country's limited resources. On the
Agricultural front, due to the measures taken under the Green Revolution, India more
or less became self-sufficient in the production of food grains. So the need for reform
of economic policy was widely felt in the context of changing the global economic
scenario to achieve desired growth in the country.
2
Q-1 What are the reasons for the public sector to play a major role in the initial phase
of Indian Economic Planning?
Q - 2 Give benefits of inward looking trade strategy. (Any two) 2
31 Group the following features pertaining to the economies of India, China and Pakistan 4
under three heads
One-child norm
Lack of Political stability
High degree of urbanisation
Mixed economy
Very high fertility rate
Growth due to manufacturing sector
Over dependence on remittances and foreign aid
High density of population
33 a) (i) What do you understand about the ‘drain of Indian wealth’ during the colonial 3
period? 3
(ii) While subsidies encourage farmers to use new technology, they are a huge burden
on government finances. discuss the usefulness of subsidies in the light of this fact
OR
3
(i) Various fiscal reforms were initiated in the New Economic Policy of 1991. One
b) fiscal measure undertaken was to reduce taxes. How in your views is it justifiable?
(ii) Why did RBI have to change its role from controller to facilitator of financial 3
sector in India?