Assam Board Class 12 Sample Paper 2026 Economics

ASSAM BOARD

SAMPLE
PAPER
Practice Papers
Model Question Papers

ECONOMICS
SAMPLE QUESTIONPAPER
CLASS XII
Paper-1
Macro Economics

1. Read the following statements carefully: 1
Statement 1: If in an economy the level of income increases ( Y ), it will always
proportionately increase the level of consumption ( C ).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save
(MPS) are always equal to each other.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-2
2. Identify the correct equation from the following: 1
(A) GDPMP = NNPFC + Depreciation
(B) NDPFC = NNPFC + Net Indirect Taxes
(C) GNPMP GDPMP + Net Factor Income from Abroad
(D) NNPFC NDPMP + Depreciation
3. Read the following statements- Assertion (A) and Reason (R), Choose the correct
alternative given below: 1
Assertion (A): Full employment situation refers to absence of involuntary
unemployment.
Reason (R): Under full employment situation, all the willing and able bodied people
get employment at the prevailing wage rate.
Alternatives:
(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. Unit-2

1

4. "As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net
selling off worth Rs.309 crore by Foreign Institutional Investors (FIIs) over the period
of one month i.e., 9th May, 2023-9th June, 2023."
The above mentioned transactions will be recorded on _____side of _____account of
Balance of Payments of India. 1
(Choose the correct alternative to fill in the blanks)
(A) Debit, Current (B) Credit, Capital
(C) Credit Current (D) Debit, Capital Unit-5
5. Identify the incorrect feature(s) of money supply (M₁) from the following: 1
(i) It is measured at a point of time.
(ii) It does not include stock of money held by the government.
(iii) It is always the currency in the hands of the Central Bank of a nation.
Alternatives: Unit-3
(A) (i) and (ii) (B) (ii) and (iii)
(C) (ii) only (D) (iii) only
6. Total consumption expenditure by households under Keynesian Economics is a
combination of _____ and____. 1
Choose the correct alternative to fill in the blanks)
(A) Autonomous Consumption, Autonomous Investments
(B) Autonomous Investments, Induced Consumption
(C) Induced Investments, Autonomous Investments
(D) Autonomous Consumption, Induced Consumption Unit-2
7. Find the missing figures and choose the correct alternative: 1

Round Deposits Loans (80%) Reserve Ratio
(20%)
I 5000 4000 ..(i)..
II 4000 ..(ii).. 800
… … … …
… … … …
Total ..(iii) ..(iv).. 5000

Alternatives:

(A) 1000, 800, 20000, 25000 (B) 5000, 3200, 25000, 20000
(C) 1000, 3200, 25000, 20000 (D) 1000, 800, 20000, 25000 Unit-3

2

8. Surplus in Balance of Payments (BOP) refers to the excess of _____. 1
(Choose the correct alternative to fill in the blank)
(A) Autonomous payments over Autonomous receipts
(B) Current Account payments over Autonomous receipts
(C) Capital Account receipts over Capital Account payments
(D) Autonomous receipts over Autonomous payments Unit-5
9. Suppose for a hypothetical economy:
C = 100 + 0.75Y (Where C = Consumption and Y=Income)
I0 = 400 (I0 = Autonomous Investment)

Value of Investment Multiplier (K) would be ____. 1
(Choose the correct alternative to fill in the blank)
(a) 5 (b) 4
(c) 6 (d) 3 Unit-2
10. Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of
₹500 crore. The values of merchandise exports are ₹1200 crore and transfer payments
are ₹400 crore.

The value of merchandise imports would be ₹ ______ crore 1
(Choose the correct alternative to fill in the blank)
(A) 1700 (B) 750
(C) 700 (D) 900 Unit-5
11. (a) On the basis of the data given below for an imaginary economy, estimate the value
of Net Domestic Product at Factor Cost (NDPFC):

S.No. Items Amount (in R Crore)
(i) Gross Domestic fixed Capital 200
Formation
(ii) Exports 50
(iii) Government Final Consumption 320
Expenditure
(iv) Consumption of Fixed Capital 35
(v) Household Final Consumption 470
Expenditure
(vi) Inventory Investment (Net) (-)40
(vii) Imports 60

(viii) Net Indirect Taxes 50
(ix) Net Factor Income from Abroad 20
OR

3

(b) (i) Elaborate the concept of Externalities with the help of suitable example. 2
Unit-1
(ii) Define Operating Surplus. Unit-1 1
12. Distinguish between fixed exchange rate system and flexible exchange rate system. 3
Unit-5
13. (a) Complete the following table. Construct/Express the Consumption function at R 200
crore level of income. Unit-2 4

Income (Y) (in Rs. Savings (in Rs. Average Marginal
Crore Crore) Propensity to Propensity to Save
Consume (APC) (MPS)
0 (-)30 _ …..
100 ….. 1 …..
200 ….. 0.85 …..
300 …. 0.8 ….

OR
(b) "In an economy, ex-ante Aggregate Supply is less than ex-ante Aggregate Demand" 4
Explain its impact on the level of output, income and employment. Unit-2
14. Justify the following statements with valid arguments: 2
(a) The Central Bank is the sole currency issuing authority of an economy. 2
(b) Money serves as a measure of standard of deferred payments. Unit-3 2
15. Read the following text carefully from "The Economic Times' dated 8th June, 2023:
"The Reserve Bank of India's (RBI's) rate setting panel unanimously decided to keep
the benchmark lending rate unchanged at 6.5%. The committee voted to remain focused
on the withdrawal of accommodating monetary policy."
On the basis of given text and common understanding, answer the following questions:
(a) Identify and discuss the economic issue indicated in the above text. 2
(b) Discuss the likely consequence on money supply if the rate setting panel would have
decreased the said rate. Unit-3 2
16. (a) Classify the following as Revenue receipts or Capital receipts. Give valid arguments
in support of your answer:
(i) Interest received on loan. 2

(ii) Disinvestment receipts from the sale of a government company. 2
(iii) Financial assistance by the Government of USA for promoting girl education in
India. Unit-4 2
4

OR
(b) (i) Study the following chart carefully and analyse the changing trends in the government
expenditure on:
(I) Transport 2
(II) Rural Development 2
TREND OF MAJOR ITEMS OF EXPENDITURE

(b) (ii) Distinguish between ‘fiscal deficit’ and ‘revenue deficit’. Unit-4 2
17. (a) Discuss briefly the concept of circular flow of income in a two-sector model. 3
(b) "Real Gross Domestic Product (GDP) is a better indicator of economic growth of a
nation as compared to the Nominal Gross Domestic Product (GDP)."

Do you agree with the given statement? Justify your answer with a valid hypothetical
numerical example. Unit-1 3

SECTION-B
Indian Economic Development

18. Read the following statements - Assertion (A) and Reason (R). Choose the correct
alternative given below: 1

Assertion (A): The excessive regulation of permit license raj prevented certain private
firms from becoming fairly competitive.

5

Reason (R): Private sector wasted huge amounts in obtaining licenses rather than on
improving the product quality and international competitiveness.
Alternatives:
(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. Unit-7
19. In the decade of the 1970s, Pakistan nationalized its ___industries. 1
(Choose the correct alternative to fill in the blank)
(A) Medical infrastructure (B) Consumer goods
(C) Capital goods (D) Foreign trade Unit-9
20. Read the following statements carefully : 1
Statement 1: Under the colonial rule, basic infrastructure (like railways, post and
telegraph etc.) was developed.
Statement 2: The real motive behind the infrastructural development in India was to
strengthen the British interests.

In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-6
21. Identify which of the following alternatives indicate the incorrect components
combination of Agriculture Marketing System: 1
(A) Assembling, Storage, Processing, Packaging
(B) Production, Assembling, Processing, Grading
(C) Assembling, Processing, Packaging, Transportation
(D) Processing, Packaging, Grading, Distribution Unit-8
22. Read the following statements Assertion (A) and Reason (R). Choose the correct
alternative given below: 1

Assertion (A): World Trade Organization (WTO) is expected to establish the rule-based
trading regime, to avoid unilaterally placed arbitrary restrictions by member nations.

6

Reason (R): It is imperative to enlarge world production and ensure optimum utilization
of world resources along with environmental protection.
Alternatives:
(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. Unit-7
23. Read the following statements - Assertion (A) and Reason (R). Choose the correct
alternative given below: 1
Assertion (A): China has used the market mechanism to create additional social and
economic opportunities for its citizens.

Reason (R): Social infrastructure creation by the government has brought positive
results in human development indicators in China.
Alternatives:
(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. Unit-9
24. Identify from the following alternatives the incorrect objectives of regulated agriculture
market: 1
(i) To make the marketing system efficient and effective for farmers to get best price of
their products.
(ii) To discourage improvement of marketing infrastructure for farmers.
(iii) To prevent exploitation of farmers.
(iv) To discourage farmers from improving quality and quantity of their produce.
Alternatives:
(A) (i) and (ii) (B) (i) and (iii)

(C) (iii) and (iv) (D) (ii) and (iv) Unit-8

7

25. Economic reforms were introduced in India and Pakistan in the years_____ and______
respectively. 1
(Choose the correct alternative to fill in the blanks)
(A) 1988, 1978 (B) 1991, 1978
(C) 1991, 1988 (D) 1981, 1991 Unit-9
26. Read the following statements carefully: 1
Statement 1: As per the National Sample Survey Organization (NSSO), unemployment
is a situation in which all those who, owing to lack of work, are not working, but are
seeking work from prospective employers. They express their willingness/availability to
work under the prevailing conditions of work and remuneration.
Statement 2: Disguised Unemployment is generally a massive problem in a highly
populated country like India.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-8
27. Identify which of the following is not a member nation of G20: 1
(A) Brazil (B) Australia
(C) Bangladesh (D) Argentina Unit-7
28. (a) "During the colonial period, the occupational structure showed lopsided movements."
Do you agree with the given statement? Justify your answer with valid arguments. 3
OR
(b) Elaborate the reasons owing to which the private sector was regulated under the
Industrial Policy Resolution, 1956. Unit-6 3
29. "In India, National Education Policy 2020 has stressed a lot on in-service training of the
teachers."
(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid
statement. 1
(ii) Elaborate the likely impacts of this source on the economic development of India. 2
Unit-8
30. (a) "United Nations Department of Economic and Social Affairs indicated that India has

overtaken China as the world's most populous country in the month of April 2023."
Explain the consequences of one-child policy adopted by China in the 1970s. 2

8

(b) Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of
China. Unit-9 2
31. (a) State and elaborate whether the following statements are true or false, with valid
arguments:
(i) In the recent past, the Government of India has taken crucial steps, like Jan-Dhan
Yojana, for efficient allocation of financial resources 2
(ii) Worker-population ratio is an indicator, used for analyzing the employment
situation in a nation. Unit-8 2
OR
(b) (i) Elaborate the need to promote women's education in India. 3
(ii) Mention any two examples of diversification activities in the non-agro
processing industries. Unit-8 1
32. (a) State any two problems faced by farmers during the initial years of organic farming. 1
(b) "In the current situation, Information Technology plays a vital role in achieving food
security in a nation like India."
Justify the given statement. Unit-8 3
33. (a) (i) "Under the liberalisation measures taken by the Government of India, regulation
of industrial sector was extremely crucial."
Reject or support the given statement with valid arguments. Unit-7 3
(ii) "Despite the implementation of Green Revolution 65 percent of India's population
continued to be engaged in the agriculture sector till the 1990s."
Justify the given statement with valid explanation. Unit-6 3
OR
(b) (i) "Every coin has two sides-debate over farm subsidies is one such classic example
of the same."
Justify the given statement with two arguments each in favour of and against the
continuation of the farm subsidies. Unit-6 4
ii) State the importance of "Growth with equity” as the objective of Indian economic
planning. Unit-6 2
34. Read the following text carefully:
In order to address two major environmental concerns in India, viz. water and air
pollution, the government set up the Central Pollution Control Board (CPCB) in 1974.

This was followed by states establishing their own state level boards to address all the
environmental concerns. They investigate, collect and disseminate information relating
to water, air and land pollution, lay down standards for sewage/trade effluent and

9

emissions. These boards provide technical assistance to governments in promoting
cleanliness of streams and wells by prevention, control and abatement of water
pollution, and improve the quality of air and to prevent, control or abate air pollution in
the country.

These boards also carry out and sponsor investigation and research relating to problems
of water and air pollution and for their prevention, control or abatement. They organize,
through mass media, a comprehensive mass awareness programme for the same. The
PCBs prepare manuals, codes and guidelines relating to treatment and disposal of
sewage and trade effluents.

They assess the air quality through regulation of industries. In fact, state boards,
through their district level officials, periodically inspect every industry under their
jurisdiction to assess the adequacy of treatment measures provided to treat the effluent
and gaseous emissions. It also provides background air quality data needed for
industrial sitting and town planning.

The pollution control boards collect, collate and disseminate technical and statistical
data relating to water pollution. They monitor the quality of water in 125 rivers
(including the tributaries), wells, lakes, creeks, ponds, tanks, drains and canals.

On the basis of the given text and common understanding, answer the following
questions:
(a) State any two concerns owing to which the Central Pollution Control Board (CPCB)
was established. 1
(b) Explain any two functions performed by the Central Pollution Control Board
(CPCB). 2
(c) Elaborate any two strategies to ensure sustainable development as adopted by India. 3
Unit-8

10

Paper-2
Macro Economics

1. Read the following statements carefully: 1
Statement 1: A consumption function describes the relationship between consumption
and savings.
Statement 2: Consumption function consists of two components autonomous
consumption and induced consumption.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-2
2. Identify which of the following is not one of the merits of fixed exchange rate system.
(A) Ensures stability in exchange rate 1
(B) Possibility of under or over valuation of foreign currency
(C) Prevents speculations in foreign exchange market
(D) Coordination of macroeconomic policies becomes convenient Unit-5
3. Identify which of the following will appear on the debit side in the Capital Account of
India's Balance of Payments. 1
(A) An Indian sending remittances from England
(B) Investing in assets abroad by Indians
(C) An American company purchasing shares of an Indian company
(D) Export of spices from India Unit-5
4. Study the following figure carefully and choose the correct alternative to fill in the
blank: 1

Alternatives:
(A) Investments (B) Trade of Services
(C) External Borrowings (D) External Assistance

11

5. Read the following statements carefully: 1
Statement 1: Economic territory and political frontier of a nation are one and the same
thing.
Statement 2: American Embassy in India is a part of the economic territory of India.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-1
6. Read the following statements carefully: 1
Statement 1: Money is a commodity which is generally accepted as a medium of
exchange.
Statement 2: Money solved the problem of double coincidence of wants.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit-3
7. Suppose in an imaginary economy, autonomous consumption = ₹ 500 crore and

marginal propensity to consume = 0.8. The saving function for the economy would be
_____. 1
(Choose the correct alternative to fill in the blank)
(A) 500+0.8Y (B) (-)500 + 0.8Y
(C) 500+0.2Y (D) (-)500 + 0.2Y Unit-2
8. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: 1
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.
Alternatives:
(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. Unit-2

12

9. Identify the incorrect statement with reference to Cash Reserve Ratio (CRR): 1
(A) It is a certain percentage of demand and time deposit liabilities that every bank must
keep as cash reserves with the Central Bank.
(B) It is fixed by the Central Bank.
(C) It is not binding on the commercial banks.
(D) It is a tool used by the Central Bank to control the credit creation in the economy.
Unit-3
10. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: 1
Assertion (A): The equilibrium level of income is determined, when ex-ante spending and
ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full
employment level of output.
Alternatives:

(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. Unit-2

11. (a) "Accommodating transactions are undertaken to maintain stability in the Balance of
Payments Account"
Justify the given statement with valid explanation. 3
OR
(b) "Depreciation of currency may promote exports of a nation"
Defend or refute the given statement with valid arguments. Unit 5 3
12. On the basis of the data given below, estimate the value of Gross National Product at Factor
Cost (GNPFC): Unit-1 3
S.No. Items Amount (in ₹ crore)
(i) Wages and Salaries 2,000
(ii) Rent and Interest 700
(iii) Corporate Tax 500

(iv) Undistributed Profit 300
(v) Consumption of Fixed Capital 200
(vi) Dividend 150
(vii) Net factor income from abroad (-)50

13

13. For a hypothetical economy, assume the government increased an infrastructural
investment by ₹ 10,000 crore. 80% of additional income is consumed in the economy.
Estimate the increase in income and the corresponding increase in consumption
expenditure in the economy. Unit 2 4
14. (a) "If actual demand for final goods falls short of the actual output of final goods
corresponding to full employment level, it may lead to an unintended accumulation of
inventories." Unit-2
Do you agree with the given statement? Give valid reasons in support of your answer. 4
OR
(b) Complete the following table. Construct the consumption function at R200 crore
level of income.
Income (Y) Savings (S) Average Marginal
(in ₹ Crore) (in ₹ Crore) Propensity to Propensity to Save
Consume (APC) (MPS)
0 (-)50 - -
100 ………… 1 …………
200 ………… 3/4 …………
300 ………… 2/3 …………

15. Reserve Bank of India undertakes the important function of managing the government's
banking transactions. 4
Discuss the above stated function performed by the Reserve Bank of India. Unit-3
16. (a) (i) Distinguish between direct tax and indirect tax with the help of suitable
examples. Unit-4 3
(ii) Explain the ‘redistribution of income’ objective of the Government Budget. 3
OR
(b) (i) Suppose the following data in presented for an imaginary economy: 4
S.No. Items Amount (in ₹ Crore)
(i) Tax Receipts 1,200
(ii) Revenue Expenditure 3,700
(iii) Non-Tax Receipts 2,000
(iv) Recovery of Loans 145
(v) Capital Expenditure 500

(vi) Disinvestment 120
(vii) Interest Payments 1,070
Calculate Revenue Deficit and Fiscal Deficit

14

(ii) Differentiate between public provision and public production. 2
Unit-4
17. Read the following text carefully:
Decisions taken by factors of production in the production process often may affect the
stakeholders indirectly. Such impacts at times are huge but are not accounted for, while
estimating national income. Economists call them as externalities and they can be
positive or negative.

In this regard, many economists suggest carbon pricing as an important tool to ensure
ecological balance.

Carbon pricing tries to control greenhouse gas emissions by either placing a fee on
emitting or offering subsidies on lesser emission. Through instruments like carbon tax,
green cess, eco tax, etc. economists suggest moving towards greener technology
eliminating such negative externalities.

On the basis of the given text and common understanding, answer the following
questions:

(i) Define externalities. 1
(ii) Differentiate between positive and negative externalities. 2
(iii) Elaborate how and why carbon pricing should be promoted. 3
Unit-1

SECTION B
Indian Economic Development

18. During the British rule, India's foreign trade had various features except___. 1
(Choose the correct alternative to fill in the blank)
(A) Restrictive policies of commodity production, trade and tariff
(B) British monopoly over India's exports and imports
(C) Free trade from India to the rest of the world
(D) Large export surplus Unit-6
19. China was able to control its rapid population growth rate owing to____. 1

(Choose the correct alternative to fill in the blank)
(A) Economic reforms (B) One-Child Policy
(C) Great Proletarian Cultural Revolution (D) Special Economic Zones Unit-9

15

20. Modernization is an important economic planning objective that focuses on_____.
(Choose the correct alternative to fill in the blank)
(i) Adoption of innovative technology
(ii) Equal distribution of income and wealth 1
(iii) Bringing positive changes in the social outlook
Alternatives:
(A) Only (i) (B) (i) and (ii)
(C)) (i) and (iii) (D) (i), (ii) and (iii) Unit-6
21. The present day rapid industrial growth in China can be traced back to the economic
reforms introduced in 1978, where ______. 1
(Choose the correct alternative to fill in the blank)
(i) initially reforms were initiated in agriculture, foreign trade and investment sectors
(ii) the policy of dual pricing was adopted
(iii) the Government revoked the policy of Special Economic Zones
Alternatives:
(A) Only (i) (B) Only (ii)
(C) (i) and (ii) (D) (i), (ii) and (iii) Unit-9
22. ______farming is a system that is helpful in restoring, maintaining and enhancing the
ecological balance. 1
(Choose the correct alternative to fill in the blank)
(A) Conventional (B) Organic
(C) Chemical (D) Multi-layered Unit -8
23. Read the following statements carefully: 1
Statement 1: India, Pakistan and China have similar physical endowments, but totally
different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private
sector.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false. Unit -9

24. Identify the sources of Human Capital Formation and choose the correct alternative to
fill inn the blanks. 1

16

Alternatives:
(A) Expenditure on Health and Expenditure on Schools
(B) Expenditure on Technology and Expenditure on Knowledge
(C) Expenditure on Migration and Expenditure on Knowledge
(D) Expenditure on Health and Expenditure on Migration
25. From the type of workers given in Column I, identify the correct nature of work in
Column II: 1

Column-I Column-II
1. Cement shop owner (i) Regular salaried
2. Construction worker (ii) Casual wage workers
3. Civil Engineer (iii) Self employed

Alternatives:
(A) 1-(i); 2-(ii); 3-(iii)
(B) 1-(ii); 2-(i); 3-(iii)
(C) 1-(iii); 2-(ii); 3-(i)
(D) 1-(iii); 2-(i); 3-(ii) Unit-8
26. After the implementation of economic reforms, Pakistan experienced slowdown of
growth due to various reasons including ______. 1
(Choose the correct alternative to fill in the blank)
(i) Volatile performance of the agriculture sector
(ii) Over-dependence on remittances from abroad

(iii) Political instability

17

Alternatives:
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (i) , (ii) and (iii)
(D) (i) and (iii) Unit-9
27. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: 1
Assertion (A): In the recent past, Indian economy has been facing the problem of
jobless growth.
Reason (R): Jobless growth refers to a situation where an economy is able to produce
more goods and services without generating additional employment.
Alternatives:
(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. Unit-8
28. (a) "Self-Help Groups provide stimulus to socio-economic development in rural areas."
Justify the given statement with valid explanation. Unit-8 3
OR
(b) "The Government of India has taken various measures to align the agricultural
marketing system with the growing production activities in the rural areas."
Do you agree with the given statement? Give any two valid reasons in support of your
answer. Unit-8 3
29. Interpret the given picture and explain any one strategy to control it from becoming an
ecological disaster. 3

18

State any two strategies to achieve the objective of sustainable development. 3
Unit-8
30. (a) Discuss any two factors that lead to stagnating Indian agriculture sector during British
rule. Unit-6 4
OR
(b) Discuss any two liberalization measures pertaining to the tax reforms, introduced by the
government, during the economic reform process of 1991. Unit-7 4
31. “There exists a positive correlation between human capital formation and economic
growth of a nation."
Justify the given statement with valid explanation. Unit 8
32. On the basis of the data given below, discuss the shift in output and employment sector-
wise, in India and China:

Sectoral share of Employment and GVA (%) in 2018-2019

Sector Contribution to GVA Distribution of Workforce
India China Pakistan India China Pakistan
Agriculture 16 7 24 43 26 41
Industry 30 41 19 25 28 24
Services 54 52 57 32 46 35
Total 100 100 100 100 100 100

Source : Human Development Report 2019: Key Indicators of Asia and Pacific, 2019.
Unit-9
33. (a) (i) "Amita is a regular worker in a private firm that employs twelve hired workers."
Is she working in the formal/informal sector? Give valid reasons in support of your
answer. 2
(ii) State any two sources of data on unemployment in India. 1
(iii)Elaborate the need to promote women's education in India. Unit-8 3
OR
(b) (i) "The participation rate of people in economic activities in rural areas is more than
that in urban areas."

Justify the given statement. 3
(ii) Define disguised unemployment. State its implications on output and employment
in a country. Unit-8 3

19

34. Read the following text carefully: Unit-6
India's industrial policy since independence has been shaped broadly in terms of the
Industrial Policy Resolution of 1948. It emphasized on the sole responsibility of the
government in the matter of promoting, assisting and regulating the development of
industries in the national interest. It envisaged an active and dominant role of public
sector.

The next Industrial Policy Resolution was placed before the Parliament by the Prime
Minister on 30th April, 1956. It suggested that, "There is a need for adoption of the
socialist pattern of economy as the national objective, along with the need for planned
and rapid development. It required that all industries of basic and strategic importance,
or in public utility services, should be in the public sector.

Other industries which are essential and require investment on a massive scale (which
only the State could provide) have also to be in the public sector. Thus, the State has to
assume direct responsibility for the future development of industries."
This Resolution classifies industries into three categories:

 The first category given in Schedule A, consists of industries the future
development of which will be the exclusive responsibility of the State.

 In the second category given in Schedule B, are industries which will be
progressively State-owned. However, in them, private enterprise will also be
expected to participate.

 The third category comprises all the remaining industries, the further development
of which will be left to the initiative and enterprise of the private sector.

On the basis of the given text and common understanding, answer the following
questions:

(i) "The Government of India, in the initial years of economic development, emphasized
on a greater role of the public sector in the industrial development."
Justify the statement, giving reasons in support of your answer. 3

(ii) Outline and discuss the classification of industries into various categories as per
Industrial Policy Resolution, 1956. 3

Unit-6

20

Paper-3
Macro Economics

1. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: Unit-2 1
Assertion (A): Voluntarily unemployed people are those able bodied people who are not
willing to work at the prevailing wage rate.
Reason (R): There exists zero involuntary unemployment at full employment level of
equilibrium.
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.
2. Identify which of the following statements is incorrect with reference to an economy.
Unit-2 1
(A) Excess of Gross National Product (GNP) over Gross Domestic Product (GDP) is
possible.
(B) Excess of Gross Domestic Product (GDP) over Gross National Product (GNP) is
possible.
(C) Equality between Gross National Product (GNP) and Gross Domestic Product
(GDP) is possible.
(D) Sum of Gross National Product (GNP) and Gross Domestic Product (GDP) is
always equal to zero (0).
3. Inflationary gap in an economy may exist when_____ at full employment level. 1
(Choose the correct alternative to fill in the blank)
(A) Actual Aggregate Demand > Potential Aggregate Demand
(B) Actual Aggregate Demand < Potential Aggregate Demand
(C) Actual Aggregate Demand ≤ Potential Aggregate Demand

(D) Actual Aggregate Demand = Potential Aggregate Demand
4. According to the Reserve Bank of India's (RBI's) Statistical Supplement released on
19th May, 2023: Unit-5 1

21

"India's foreign exchange reserves grew for the third straight week and reached near an
approximate level of $ 600 billion."
The above situation will ______ the ________ side of Balance of Payments account of
India.
(Choose the correct alternative to fill in the blanks)
(A) Increase, Credit (B) Decrease, Credit
(C) Decrease, Debit (D) Increase, Debit
5. Read the following statements care carefully: Unit-3 1
Statement 1: Reserve ratio and Credit creation process are inversely related.
Statement 2: Central Bank of an economy performs the vital function of controlling the
credit creation process.
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
6. In order to discourage any fall in Aggregate Demand, the Government of India
may_____ the______. Unit-3 1
(Choose the correct alternative to fill in the blanks)
(A) decrease, repo rate
(B) increase, reverse repo rate
(C) decrease, government expenditure
(D) decrease, tax rate
7. Choose the correct alternative to complete the given schedule: Unit-3 1

Round Deposits Loans (90%) Reserve Ratio
(10%)
I 2000 1800 200
II …(i)… …(ii)… 180
… … … …
… … … …
Total …(iii)… …(iv)… 2000
Alternatives:
(A) 2000, 1620, 20000, 18000

(B) 1800, 180, 2000, 18000
(C) 1620, 180, 2000, 18000
(D) 1800, 1620, 20000, 18000

22

8. Identify the correct pair of statements given in Column I with the related terms in
Column II: 1
Column I Column II
1. Remittances from abroad to the nation (i) Accommodating Transaction
2. Government’s policy of decreasing the (ii) Devaluation
value of the nation’s currency against
foreign currencies
3. Difference between visible exports and (iii) Balance of Payments
visible imports of a nation
4. Government as sole authority of (iv) Flexible Exchange Rate
determining foreign exchange rates system

Alternatives:
(A) 1 (i) (B) 2 (ii)
(C) 3 (iii) (D) 4 (iv)
9. Read the following statements carefully:
Statement 1: Constant rate of change of consumption (ΔC) with respect to change in
income (ΔY), is the reason for the straight line consumption curve.
Statement 2: Marginal rate of change between consumption and income is defined as
Average Propensity to Consume (APC). Unit-5 1
In the light of the given statements, choose the correct alternative from the 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 and 2 are false.
10. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: 1
Assertion (A): In case of an unfavourable Balance of Trade, the Current Account of the
nation may be in surplus.
Reason (R): Net invisible receipts of a nation can exceed the Net visible receipts.
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),

23

(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
11. (a) On the basis of the given data, estimate the value of National Income: 3
Unit-1
S.No. Items Amount (in ₹ Crore)
(i) Government Final Consumption Expenditure 110
(ii) Private Final Consumption Expenditure 200
(iii) Gross Domestic Fixed Capital Formation 30
(iv) Net Exports (-)40
(v) Increase in stock 20
(vi) Consumption of Fixed Capital 15
(vii) Indirect Taxes 60
(viii) Subsidies 15
(ix) Net Factor income from Abroad (-)40

(b) State any three precautions to be taken while estimating National Income by
Expenditure Method. 3
12 . Discuss any two factors which directly affect the demand for foreign exchange of a
nation. Unit-9 3
13. Elaborate the two components of Aggregate Supply in two-sector economy. 4
14. (a) "Open market operations by Reserve Bank of India (RBI) help in regulating money
supply in the economy.
Justify the given statement with valid arguments. 4
OR
(b) Elaborate the 'Government's Bank and Advisor' function of the Central Bank
of a nation. 4
15. (a) For a hypothetical economy, the government incurs an additional investment
expenditure of ₹ 5,000 crore. Assuming that the Marginal Propensity to Save (MPS)
becomes half from its present level of 20%, estimate the change in income due to this
fall in Marginal Propensity to Save (MPS). 3
(b) State the meaning of autonomous investment. 1
16. (a) (i) Explain the concept of circular flow of income in a two-sector economy. Unit-1 3

(ii) "Gross Domestic Product (GDP) and sum of Gross Value Added (GVA) in an
economy are always equal."
Justify the given statement with valid arguments.

24

OR
(b) (i) "Gross Domestic Product (GDP) Deflator is represented by the ratio of Real GDP
and Nominal GDP."
Do you agree with the given statement? Justify your answer with valid arguments
and a hypothetical numerical example. 4
(ii) State the meaning of ‘Income from Property and Entrepreneurship'. 2
17.(a) On the basis of the given information, calculate the values of the following:
(i) Fiscal Deficit 2
(ii) Primary Deficit 1

S.No. Items Amount (in ₹ Crore)
(i) Capital Expenditure 30
(ii) Revenue Receipts 20
(iii) Revenue Deficit 20
(iv) Interest Payments 10
(v) Non-Debit Creating Capital Receipt 50% Revenue Receipts

(b) State any two examples of private goods. Unit-4 1
(c) Distinguish between 'Public Provision' and 'Public Production'. 2

SECTION B
Indian Economic Development

18. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below: 1
Assertion (A): The agricultural sector under the British rule was primarily the base of
the sectoral growth of India.
Reason (R): British rulers wanted to take maximum advantage of the Indian agricultural
output, for growth of industries in England.
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.

25

19. Identify which of the following alternatives are not true with reference to the Chinese
economy. Unit -9 1
(i) In 1958, communes were established.
(ii) In the foreign sector, Special Economic Zones (SEZ) were set up.
(iii) Better health facilities reduced mortality rate in China.
Alternatives:
(A) (i) and (ii) (B) (ii) and (iii)
(C) (i), (ii) and (iii) (D) (i) and (iii)
20. Which of the following is/are not an objective of regulated agricultural market?
(i) To discourage improvement of marketing infrastructure for farmers.
(ii) To make marketing systems efficient and effective for farmers to get best price for
their products.
(iii) To discourage farmers to improve the quantity and quality of their produce.
Alternatives:
(A) (i) and (iii) (B) (ii) and (iii)
(C) (i) only (D) (ii) only
21. Read the following statements carefully: Unit-6 1
Statement 1: Land ceiling was one of the Government policies to promote equity in the
agriculture sector.
Statement 2: Land reforms resulted in abolition of the Zamindari system in the post
independence period.
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
22. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative given below: Unit-7 1
Assertion (A): Goods and Services Tax (GST) was implemented by the Government of
India on 8th November, 2016.
Reason (R): GST was introduced to implement a unified indirect tax system in India.
Alternatives:

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
the Assertion (A).

26

(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.
23. Identify which of the following is not a member nation of G20. 1
(A) Argentina (B) Australia
(C) Brazil (D) Bangladesh
24. Production of varied forms of crops against one specialised crop is called diversification
of _____. Unit-8 1
(Choose the correct alternative to fill in the blank)
(A) sectoral occupation (B) employment structure
(C) crops (D) industrial production
25. Identify which of the following is not a Human Development Indicator (HDI). 1
(A) Life Expectancy at Birth (B) Adult Literacy Rate
(C) Maternal Mortality Rate (D) Unemployment
26. Read the following statements carefully: Unit-9 1
Statement 1: Human development is based on the idea that education and health are
integral to human well-being.
Statement 2: Human capital treats humans as a means to an end.
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
27. On the basis of the data given below, identify the incorrect statement with reference to
annual growth of GDP (%): 1
Annual Growth of Gross Domestic Product (%), 1980-2017

Country 1980-90 2015-2017
India 5.7 7.3
China 10.3 6.8
Pakistan 6.3 5.3

Alternatives:
(A) Pakistan and China experienced a fall in growth rate during 2015-2017.
(B) China achieved double-digit growth rate in 1980-1990.

27

(C) GDP of India accelerated moderately in 2015-2017 period.
(D) Pakistan was ahead of India during 1980-2017 in terms of GDP.
28. (a) "Trade and Investment Policy of India had undergone comprehensive changes in the
post reforms period of 1991."
Do you agree with the given statement? Justify your answer with any two valid
arguments. 3
OR
(b) Discuss any two salient features of Indian industrial sector during the period of
1950-1990. 3
29. "In India, National Education Policy 2020 has stressed a lot on in-service training of the
teachers." Unit-8
(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid
statement. 1
(ii) Elaborate the likely impacts of this source on the economic development of India. 2
30. From the given data, compare and analyse India and China's sectoral contribution towards
Gross Value Added (GVA). Unit-9 4
Sectoral Share of Employment and GVA (%) in 2018-2019
Sector Contribution to GVA Distribution of Workforce
India China Pakistan India China Pakistan
Agriculture 16 7 24 43 26 41

Industry 30 41 19 25 28 24

Service 54 52 57 32 46 35

Total 100 100 100 100 100 100

31. (a) State and elaborate whether the following statements are true or false, with valid
arguments: Unit-8
(i) Organic Farming has essentially become the need of the hour. 2
(ii) In the recent past, the Government of India has taken crucial steps, like Jan-Dhan
Yojana, for efficient allocation of financial resources. 2
OR
(b) (i) Define worker - population ratio and describe its usefulness. 3

(ii) State the meaning of 'Disguised Unemployment". 1

28

32. Study the given image carefully:
Identify the situation depicted in the image and suggest the impact of the indicated
situation in the Indian economy.

"It is necessary to generate employment in the formal sector rather than in the informal
sector." Justify the given statement. 4
33. (a) (i) "The real motive behind infrastructural development in India was to strengthen the
British interests." 3
Do you agree with the given statement? Justify your answer with valid arguments.
(ii) "Navratna policy has facilitated the maintenance, promotion and disinvestment of
Public Sector Undertakings (PSUs)." 3
Justify the given statement with valid explanation.
OR
b) (i) "Every coin has two sides - debate over farm subsidies is one such classic example
of the same." . 4
Justify the given statement with two arguments each in favour of and against the
continuation of the farm subsidies.
(ii) State the importance of "Growth with equity" as the objective of Indian economic
planning. 2
34. Read the following text carefully:
In the contemporary world with a lot of sustainable development concerns, green
growth and net zero emissions are two important concepts which are generally
discussed together. These two concepts are essential for the future of the Earth, as by

working together on them we can create a more sustainable future for ourselves and for
the generations to come.

29

Green growth refers to, "the economic growth that is achieved in a way that minimizes
environmental impact," whereas, "net zero emission is the state of achieving balance
between anthropogenic emission of greenhouse gases and removal of such emissions
from the atmosphere."
There exists a robust connection between the two concepts:

(1) Green growth can help to reduce greenhouse gas emissions, which is essential for
achieving net zero emissions.
(2) Green growth can help to create jobs and boost economic growth, which can help
to make it more affordable for countries to invest in net zero emissions technology.

A nation can do a lot to promote these two factors together, like:
(a) Investing in renewable energy sources which do not produce greenhouse gases.
(b) Adopting energy efficient measures, such as insulation and other such appliances
which can help to reduce energy consumption.
(c) Altering transportation habits, like adopting walking, biking and using public
transportation as they are lower-carbon ways to travel.
On the basis of the given text and common understanding, answer the following
questions:
(i) State the meaning of green growth and net zero emissions. 2
(ii) Discuss briefly the interconnection between green growth and net zero emissions
3
(iii) Illustrate any one factor to promote net zero emission. 1

30

Paper-4
(Macro Economics)

1. Read the following statements - Assertion (A) and Reason (R). Choose one of the
correct alternatives given below: Unit -6 1
Assertion (A): Ceteris Paribus, Devaluation of domestic currency leads to an increase in
National Income of a nation.
Reason (R): Devaluation of domestic currency refers to reduction in the value of
domestic currency with respect to foreign currency, under the fixed exchange rate
system.
Alternatives:
(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 and 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.
2. The Central Bank can reduce the Money Supply in the economy by ______the______.
(Fill up the blanks with correct alternative.) 1
(A) increasing, bank rate (B) decreasing, cash reserve ratio
(C) decreasing, bank rate (D) buying, government securities
3. Identify, which of the following is not a source of demand for foreign exchange for
Indian economy? 1
(Choose the correct alternative.)
(A) Import of goods and services
(B) Remittances by foreigners living in India to their families abroad
(C) Indian tourists visiting foreign countries
(D) Loans from Rest of the World (ROW)
4. If a straight line consumption function makes a positive intercept at the Y-axis, it
implies that the Marginal Propensity to Consume ______and Average Propensity to
Consume ______as the level of income rises. 1
(Fill up the blanks with correct alternative.)

(A) remains constant, rises (B) falls, falls
(C) rises, rises (D) remains constant, falls

31

5. Under the _________ Exchange Rate System, the Central Bank can control the rise/fall
of foreign exchange rate in a range bound manners. Unit-5 1
(Fill up the blank with correct alternative.)
(A) fixed (B) flexible
(C) managed floating (D) gold standard
6. Identify the incorrect feature(s) of the Money Supply in an economy, from the
following: Unit-3 1
(i) It is measured during a period of time.
(ii) It includes stock of money held by the government of a nation.
(iii) It always represents the currency held with Central Bank of the Nation.
Alternatives:
(A) (i) only (C) (ii) and (iii)
(B) (i) and (ii) (D) (i), (ii) and (iii)
7. Read the following statements - Assertion (A) and Reason (R), Choose one of the
correct alternatives given below: Unit-1 1
Assertion (A): Real Gross Domestic Product is a better indicator of economic growth of
a nation as compared to Nominal Gross Domestic Product.
Reason (R): Real Gross Domestic Product measures the value of goods and services at
current year prices.
Alternatives:
(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 and 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.
8. From the given table, identify that level of income, where Average Propensity to Save
(APS) becomes Zero. Unit-2 1
(Choose the correct alternative.)
Income (₹ Crore) 0 50 100 200 300 400
Consumption (₹ Crore) 50 75 100 150 200 250

Alternatives:
(A) 50 (B) 100
(C) 200 (D) 0

32

9. Read the following statements carefully: Unit-2 1
Statement 1: Consumption and Savings are the components of National output of an
economy.
Statement 2: Higher level of Income often leads to lower savings.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement I is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
10. Arrange the following in the correct sequential order, if the government of a nation is
trying to curtail the situation of inflationary gap: Unit-2 1
(i) Decrease in disposable income
(ii) Increase in taxes
(iii) Decrease in Aggregate Demand
Alternatives:
(A) (i), (ii), (iii) (B) (iii), (ii), (i)
(C) (ii), (iii), (i) (D) (ii), (i), (iii)
11. (a) Estimate the value of Net National Product at Factor Cost (NNPFC),using the
following information: Unit-1 3

S. No. Items Amount (in Rs. Crores)
(i) Household Consumption Expenditure 1200
(ii) Business Fixed Investment Expenditure 800
(iii) Government Final Consumption Expenditure 500
(iv) Excess of Imports over Exports 100
(v) Net Indirect Taxes 150
(vi) Change in Inventory (-)50
(vii) Consumption of fixed capital 200
(viii) Net factor Income from Abroad 80
(ix) Public fixed investment 70

OR
(b) "Disposition Phase of circular flow of Income involves flow of factor Income, which
comprises of rent, wages, interest and profits from firms to households."
Defend or refute the statement, giving valid reasons in support of your answer. 3

12. State the meaning of autonomous and accommodating items, under Balance of
Payments of India, with the help of an example. Unit-2 3

33

13. Suppose, the Indian Government decides to boost public investments with a defence
project of ₹ 40,000 crore. Unit-2 4
Explain the likely impacts of the given situation on the Income, Employment and
Output of the economy, assuming all other factors constant.
14. Elaborate the ‘Banker's Bank and Supervisor’ function of the Reserve Bank of India.
Unit-3 4
15. (a) Suppose an economy is in equilibrium. From the following data, calculate
Investment Expenditure in the economy: Unit 2 4
(i) National Income = ₹ 40,000 crore
(ii) Marginal Propensity to Consume (MPC) = 0.8
(iii) Autonomous Consumption (C) = ₹ 100 crore "
OR
(b) "With the objective to correct deflation, Reserve Bank of India may decrease the
Bank rate." 4
Discuss the rationale behind the step taken by the Reserve Bank of (RBI).
16. (a) With valid reasons, classify the following into Capital receipts or Revenue
receipts of the government: 6
(i) Dividend received by the government from a Maharatan company.
(ii) Receipts of the government from sale of shares of a Public Sector Undertaking
(PSU) in open market.
(iii) Debt cleared by Sri Lanka Government to the Indian Government.
OR
(b) (i) 'Government Budget can be a useful instrument in reducing inequalities in the
distribution of income and wealth in an economy.' 4
Do you agree with the given statement? Present valid arguments in favour of your
answer.
(ii) State the meaning and formula of Fiscal deficit. 2
17. (a) "In the past few decades, Indian economy has been fairly benefitted by positive
externalities created by rapid rise in infrastructure." Unit-1 3
Justify the given statement with valid arguments.
(b) State the steps pertaining to the estimation of National Income by Value Added

Method. 3

34

SECTION-B
(Indian Economic Development)

18. Read the following statements - Assertion (A) and Reason (R). Choose one of the
correct alternatives given below: Unit-7 1
Assertion (A): License Permit Raj was a major obstacle for growth of private sector.
Reason (R): Private sector wasted huge amount in obtaining licences, rather than on
improving the product, quality and international competitiveness.
Alternatives:
(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 and 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.
19. Identify, which of the following alternative indicates towards incorrect components
combination of Agricultural Marketing System? Unit-8 1
(A) Assembling, Storage, Processing, Packaging
(B) Production, Assembling, Processing, Grading
(C) Assembling, Processing, Packaging, Transportation
(D) Processing, Packaging, Grading. Distribution
20. Read the following statements carefully: 1
Statement 1: China has used the market mechanism to create additional social and
economic opportunities for its citizens.
Statement 2: In China, Social Infrastructure created by the government brought positive
results in human development indicators.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statement 1 and 2 are true.
(D) Both Statement 1 and 2 are false.
21. Read the following statements carefully: 1

Statement 1: As per National Sample Survey Organisation (NSSO) unemployment is a
situation in which all those who, owing to lack of work, are not working, but seeking

35

work from prospective employers, expressed their willingness to work under the
prevailing condition of work and remuneration.
Statement 2: Disguised unemployment is generally a massive problem in the highly
populated country like India.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statement 1 and 2 are true.
(D) Both Statement 1 and 2 are false.
22. Under the British Rule, commercialization of agriculture resulted in shifting of
agricultural production from ______crops to ______crops.
(Fill up the Blanks with correct alternative.)
(A) Cash, Food (B) Cotton, Jute
(C) Food, Cash (D) Jute, Food
23. Economic reforms were introduced in the year ______ in India and in the year ______ in
Pakistan. Unit-7 1
(Fill up the blanks with correct alternative.)
(A) 1978, 1988 (B) 1988, 1978
(C) 1978, 1991 (D) 1991, 1988
24. ________ farming is the system that restores, maintains and enhances the ecological
balance. (Fill up the blank with correct alternative.)
(A) Conventional (B) Chemical
(C ) Organic (D) Multi-layered
25. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct
alternatives given below: Unit-9 1
Assertion (A): The developmental experiences of India and Pakistan have a lot of
similarities.
Reason (R): Both India and Pakistan laid emphasis on creating a large private sector.
Alternatives:
(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 and 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.

36

26. Identify, which of the following is not a correct function of environment? 1
(i) Exclusion of waste Unit-8
(ii) Sustainance of life
(iii) Provide aesthetic services
Alternatives:
(A) (i) only (B) (ii) only
(C) (ii) & (iii) (D) (i) & (ii)
27. In the decade of 1970's, Pakistan nationalised its_____ industry. Unit-9 1

(Fill up the blank with correct alternative.)

(A) Medical infrastructure (B) Consumer goods
(C) Capital goods (D) Foreign trade
28. (a) "Farm subsidies put a huge burden on the government finances, but are necessary for
the poor and marginal farmers." Unit-8 3

Justify the given statement.

OR

(b) Discuss briefly the role of small-scale industries in the growth Journey of India. 3

29. Goals of Equity was fully served by 'abolition of the intermediaries' in agriculture in the
post-independence period of India. Unit-6 3

Do you agree with given statement? Support your answer with valid arguments.

30. (a) (i) "National Education Policy 2020 of India stresses a lot on in-service teachers'
training." Unit-8 3

In the light of the given statement, state and explain any two advantages of such
on-the-job trainings in upliftment of education sector of any nation.

(ii) Define Casual Wage Labourer: 1

OR
(b) (i) Elaborate any two reasons owing to which lesser number of women are found in
regular salaried employment. 3

(ii) Define worker-population ratio. 1

31. (a)"Scholars find son preference as a common phenomenon in India, Pakistan and
China." Unit-9 2

Justify the given statement in the light of skewed sex-ratio.
(b) State any two liberty indicators. 2

37

32. Elaborate how the economic reforms process of India impacted the following: 4

(a) Agriculture sector

(b) Industrial sector

33. "We are One-Earth, One Family and we share One Future." is the opening sentence of
the G-20 New Delhi Leader's Declaration Statement.

In this statement the leaders pledged to "resolve to fully and effectively implement the
2030 Agenda and the Sustainable Developmental Goals (SDG's)". The leader's
commitments contained in the Declaration statement reflect, "the philosophy of living
in harmony with our surrounding ecosystem". Unit-7

The Declaration recognises the "Cascading challenges and crisis that have reversed
gains" on the 2030 Agenda of SDG's.

The leaders "affirm that no country should have to choose between fighting poverty
and fighting for our planet".

The leaders resolved to act

 accelerate strong, sustainable, balanced and inclusive growth;
 accelerate the full & effective implementation of 2030 Agenda
 pursue low-carbon and environmentally sustainable development pathways;
 Pursue reforms for better, comprehensive and more effective finance avenues.

The leaders commit to "taking collective actions for effective and timely
implementation of the G-20 2023 Action Plan to accelerate progress on the SDG's;
including through actions on eliminating hunger and malnutrition, strengthening global
health and implementation of One Health approach, and delivering quality education."

(a) State and discuss the importance of collective fight in achieving SDG's. 3

(b) Discuss briefly the action plan of G-20 leaders in promoting 'One Health' approach. 3

34. (a) (i) Discuss any two measures initiated by the government to improve Agricultural
marketing in India. Unit-8 3

(ii) Elaborate the importance of credit in rural development. 3

OR

38

(b) (i) India can transform itself knowledge-based economy by using information
technology.' 3

Justify the given statement.

(ii) "It is necessary to generate employment in the formal sector rather than the
informal sector." 3

Justify the given statement with valid arguments.

39

Paper-5

(Macro Economics)

1. Read the following statements carefully: 1
Statement 1: Ex-post savings and Ex-post investments are equal at all levels of income.
Statement 2: Under the effective demand principle, the equilibrium output is equal to
ex-ante Aggregate Demand (AD). Unit-2
In the light of the given statements, choose the correct alternative from the 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 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 U.S.A. embassy located at New Delhi.
(B) An Indian officials working in Indian embassy in China.
(C) An Indian diplomats visiting Canada for a summit.
(D) An Indian working in an American Company located in New York for a period of
more than 1 year. Unit-1
3. In a hypothetical economy, if entire additional income is consumed, the value of
investment multiplier would be_____. Unit-2 1
(Fill up the blank with correct alternative.)
(A) One (1) (B) Zero (0)
(C) Between zero (0) and one (1) (D) Infinity (∞)

4. If in an economy the Balance of Trade is showing a deficit of ₹ 200 crore and the value
of import is ₹ 900 crore, then the value of exports would be ₹ ______crore. 1
(Fill up the blank with correct alternative.)
(A) 200 (B) 1100
(C) 700 (D) 900 Unit-5

5. "Mr. Sahotra borrowed funds from bank for purchasing a new house". 1
From the above statement, identify the indicated function of money: Unit-3
(A) Medium of exchange (B) Store of value
(C) Unit of account D) Standard of deferred payments
6. From the given table, identify that level of income, where Average Propensity to Save
(APS) becomes zero: Unit-2 1
(Choose the correct alternative.)
Income (₹ Crore) 0 50 100 200 300 400
Consumption (₹ Crore) 50 75 100 150 200 250

Alternatives:
(A) 50 (B) 100
(C) 200 (D) 0

40

7. If in an economy the initial deposits are ₹ 4,000 crore and Reserve Ratio (RR) is 10%.
The value of total deposit created would be ₹ _____ crore. Unit-3 1
(Fill up the blank with correct alternative.)
(A) 4,000 (B) 40,000
(C) 2,000 (D) 20,000
8. From the following, identify the correct reasons that may affect the supply of foreign
exchange in an economy: Unit-5 1
I. Purchase of land in England by an Indian
II. Foreign tourists visiting Taj Mahal
III. Donation of $ 500 million from Microsoft
IV. Indian students going to Australia for studies
Alternatives:
(A) I and II (B) II and IV
(C) II and III (D) I and IV
9. Identify, what does the shaded area ( EFG ), in the given figure indicate? Unit-2 1

I. Consumption > Income
II. Saving = Zero (0)
III. Consumption < Income
IV. Saving < Zero (0)
Alternatives:
(A) 1 and II (B) II and III
(C) III and IV (D) I and IV
OR
Marginal Propensity to Save (MPS) is the slope of ______function. Unit-2 1
(Choose the correct alternative.)
(A) Consumption (B) Cost
(C) Saving (D) Investment
10. The measurement of Balance of Payments deficit is based on____ transactions. 1
(Fill up the blank with correct alternative.) Unit-5
(A) Autonomous (B) Accommodating

(C) Current account (D) Capital account

41

11. (a) Calculate Net Value Added at Factor Cost (NVAFC) from the following data: 3
Unit-1

S.No. Particulars Amount (in ₹ Lakh)
(i) Fixed Capital goods 15
(expected life span - 5 years)
(ii) Domestic Sales 200
(iii) Change in stock (-)10
(iv) Exports 10
(v) Single use producer goods 120
(vi) Net indirect taxes 20
OR
(b) From the following data, estimate the value of Net Indirect Taxes (NIT): 3
Unit-1
S.No. Particulars Amount (in ₹ Crore)
(i) Net National Product at Market Price 1,400
(NNPMP)
(ii) Net Factor Income from abroad (-)20
(iii) Gross National Product at Factor cost 1,300
(GNPFC)
(iv) Consumption of fixed capital 100

12. "Trade Deficit must exist, if a country is facing situation of Current Account Deficit
(CAD)." Unit-5 3
Defend or refute the above mentioned statement with valid arguments.
13. Suppose, an economy is in equilibrium. From the following data, calculate investment
expenditure in the economy: Unit-2 4
(a) National Income (Y) = ₹10,000 crore
(b) Marginal Propensity to Consume (MPC) = 0.8

(c) Autonomous Consumption ( C ) = ₹100 crore

14. (a) (i) "With an objective to reduce inflation, government may reduce public
Expenditure." 3
Discuss the rationale behind such a step which may be taken by the Government.
(ii) Define Effective Demand Principle. Unit-2 1
OR
(b) (i) State the meaning of 'unintended accumulation of inventories'. 1
(ii) "In an 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. Unit-2 3

15. “Open Market Operation by the Reserve Bank of India (RBI) helps in regulating money
supply in the economy.” 4
Justify the given statement. Unit-3

42

16. (a) (i) Distinguish between Revenue Expenditure and Capital Expenditure of a
government, with suitable example. 3
(ii) ‘Under the ‘Production 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 above statement, identify and explain the Budget objective and its
likely consequences. Unit-4 3
OR
(b) (i) "Under 'Zero Defect, Zero Effect' (ZED) scheme, the government of India
provides up to 80% subsidy to Mini, Small and Medium Enterprises (MSMEs)."
Identify and explain the objective of government budget, highlighted in the above
text. Unit-4 3
(ii) Distinguish between Direct tax and Indirect tax with suitable examples. 3

17. (a) As per The Economic Times report, dated April 11, 2023 Unit-1
"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. 3
(b) Discuss briefly, the circular flow of income in a two sector economy model. 3

SECTION –B
(Indian Economic Development)
18. Read the following statements Assertion (A) and Reason (R). Choose the correct
alternative from those given below:
Assertion (A): India could not develop a sound Industrial-base during the British rule.
Reason (R): Britishers followed restrictive trade policies, which strengthened Indian
handicraft industries.
Alternatives:
(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.
19. From the events given in Column-I and facts given in Column-II about China, choose
the correct pair: Unit-9 1
Column-I Column-II
(a) Structural transformation (i) Limited Urbanisation
(b) Great leap forward campaign (ii) Reduced global demand for
Chinese products
(c) Less stress of usage on natural (iii) Low density of population
resources

(d) Slowdown in GDP, since 2014 (iv) Aimed at massive industrialization
Alternatives:
(A) (a) - (i) (B) (b) - (ii)
(C) (c) - (iii) (D) (d) - (iv)

43

20. After independence, the rationale behind choosing Modernization as a planning
objectives for the Indian economy were____. Unit-6 1
I. To bring positive changes in the social outlook
II. Equitable distribution of income
III. Technological Upgradation
IV. Increase in Economic Divide
Alternatives:
(A) I and II (B) II and III
(C) I and III (D) I and IV
21. Study the following picture: Unit-8

Identify the kind of activities, which may be envisaged under _______ as diversification
activity. Unit-8 1
(Fill up blank with correct alternative)
Alternatives:
(A) Animal Husbandry (B) Fisheries
(C) Horticulture (D) Organic farming
OR
_______farming is a system that is helpful in restoring, maintaining and enhancing the
ecological balance. Unit-8 1
(Choose the correct alternative to fill in the blank.)
(A) Multi layered (B) Chemical
(C) Organic (D) Conventional
22. Read the following statements carefully: Unit-7 1
Statement 1: Outsourcing is one of the important outcome of globalization process.
Statement 2: Owing to globalization, many Indian companies have expanded their
operation abroad.
In the light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both statement 1 and 2 are true.
(D) Both statement 1 and 2 are false.

23. Introduction of Economic Reforms in Pakistan took place in year____. Unit-7 1
(Fill up the blank with correct alternative.)
(A) 1978 (B) 1980
(C) 1988 (D) 1991

44

24. Read the following statements carefully: Unit-9 1
Statement 1: China has used Market system mechanism without loosing political
commitment to create additional social and economic opportunities.
Statement 2: India, Pakistan and China have similar physical endowments but totally
different Political systems.
(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 and 2 are false.
25. ________indicator may be defined as the measure of the extent of demographic
participation in Social and Political decision making in a Country. Unit-8 1
(Fill up the blank with correct alternative.)
(A) Economic (B) Health
(C) Demographic (D) Liberty
26. Read the following statements carefully: Unit-8 1
Statement 1: Casual workers are hired on a permanent basis and also get social security
benefits.
Statement 2: Workforce comprises, both employed and unemployed person.
In the light of the given statements, choose the correct alternative from the 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 and 2 are false.
27. The scheme of Micro Finance' is extended through _____ credit Provision. Unit-8 1
(Fill up the blank with correct alternative.)
(A) Self help groups (B) Land Development Banks
(C) Regional Rural Banks (D) Commercial Banks
28. (a) "Opening up of Suez Canal helped in establishing the British monopoly control over
India's foreign trade". Unit-6 3
Justify the given statement with valid arguments.
OR
(b) "Development of Railways during British rule encouraged colonial exploitation of the
Indian resources." Unit-6 3
Justify the given statement with valid arguments.

29. Explain the role of affordable healthcare facilities in promoting human capital in a
country. Unit-8 3

30. From the given data compare and analyse the Population Density and Fertility Rate of
China and Pakistan, with valid reasons: Unit-9 4

45

Demographic Indicators, 2017-18
Country Estimated Population Annual Growth Population Density Sex Fertility Urbanisation
(in million) of Population (per sq. km) Ratio Rate
India 1352 1.03 455 924 2.2 34
China 1393 0.46 148 949 1.7 59
Pakistan 212 2.05 275 943 3.6 37

31.(a) (i) "Infrastructural development is an essential element to obtain the full potential of
the rural sector in India". Unit-8 3
Justify the given statement with valid arguments.
(ii) State the meaning of ‘Human Development’. 1
OR
(b) "In a nation like India, self employment provides an important avenue for employment
generation." Unit-8
Defend or refute the given statement with valid arguments. 4

32. (a) Study the following chart of Employment and Gross Domestic Product. Analyse the
trend of the two variables between 1990-2012. Unit-8 3

OR
Explain why are regular salaried employees more in urban areas than in rural areas. 3
(b) Define Worker - Population Ratio. Unit-8 1
33. (a) (i) "Indian economy has certain advantages, which have made it a favourite
outsourcing destination." Unit-7 3
Do you agree with the given statement? Give valid reasons in support of your
answer.
(ii) "In the post-reform period the government of India decided to privatise profit
making Public Sector Undertakings (PSUs). Unit-7 3
Do you agree with the given statement? Give valid arguments in support of your
answer.
OR

(b) (i) Explain the need and type of land reforms implemented in the agriculture sector.
Unit-6 4
(ii) "Industrial sector performed poorly in the economic reform period." 2
Elucidate the given statement. Unit 7

46

34. Read the following text carefully:
India has aimed to reduce the country's carbon intensity by approximately 45% by 2030.
To achieve this 'Green finance' plays a vital role. At the initial stages, 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 ministry, the sovereign green bonds
will focus on financing public projects including renewable energy, climate change, clean
transportation, sustainable water and waste management and pollution control.
Businesses 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 that adopt clear sustainable development practices. The
energy-efficient and other sustainable development practices promoted by green finance
also often help in saving cost, boosting profitability of businesses etc. Unit-8

- The Economic Times, April 22, 2023 (Modified)
On the basis of given text and common understanding, answer the following questions:
(a) Define sustainable development. 1
(b) State the public project areas, where Sovereign Green Bond are focussed. 2
(c) How can businesses get benefit from green finance? 3

47

Paper 6
SECTION A
Macro Economics

1. Read the following statements carefully: Unit-3 1
Statement 1: Primary deposits are the cash deposits by general public with
commercial banks
Statement 2: Secondary deposits are those deposits which arise on account of credit
provided by the commercial banks to the people
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
2. (A) The difference between National Income at market price and National Income
at factor cost is ______. Unit-1 1
(Choose the correct alternative to fill up the blank)
(a) net indirect taxes
(b) net factor income from abroad
(c) consumption of fixed capital
(d) market price
OR

48

(B) Identify which of the following represents only the real flow. Unit-1

3. The rate at which commercial banks borrow from the Reserve Bank of India to
meet their long term requirements is known as_______. Unit-3 1
(Choose the correct alternative to fill up the blank)

(a) Margin requirement (b) Bank rate
(c) Repo rate (d) Reverse repo rate
4. Read the following statements carefully: Unit-5 1

49

Statement 1: Borrowings by a nation from the World Bank to finance Balance
of Payment (BoP) deficit will be recorded in the capital account.
Statement 2: Autonomous transactions are independent of the condition of
Balance of Payment (BoP) account.
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
5. Read the following news report carefully
"The central bank has imposed fine on Hisar Urban Cooperative Bank Ltd. and
Andaman and Nicobar State Cooperative Bank Ltd. for violation of banking
norms." Unit-3
According to the given report, identify the function of the central bank. 1
(a) Issue of currency (b) Banker to the public
(c) Banker to the Government (d) Banker’s Bank
6. (A) If the value of investment multiplier = 4 and Dissavings = (-) 60, identify the
correct Saving function from the following: Unit-2 1
(a) S = (-) 60 + 0.25 Y (b) S = (-) 60 + 0.75 Y
(c) S = (-) 60 + 0.20 Y (d) S = (-) 60 + 0.60 Y
OR
(B) For the given Consumption function, C= 205 + 0.9 Y, the value of investment
multiplier would be Unit-2 1
(Choose the correct alternative to fill up the blank)
a) 0.09 b) 10.0
c) 0.9 d) 9.0
7. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative given below: Unit-2 1
Assertion (A): Before reaching the Break-Even level of income, the value of

Average Propensity to Consume (APC) is greater than one.
Reason (R): The Average Propensity to Consume (APC) is the ratio of the
total consumption and total income.

50

Alternatives:
(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 and Reason (R) is false.
(d) Assertion (A) is false and Reason (R) is true.
8. (A) Suppose that, the Balance of Trade of a nation exhibits a deficit of ₹ 50,000
crore. The import of visible items are five times of the exports of visible items.
The value of exports of visible items would be ₹______crore. Unit-5 1
(Choose the correct alternative to fill up the blank)
(a) 20,000 (b) 10,000
(c) 12,500 (d) 20,300
OR
(B) Gifts and remittances sent abroad are recorded on the _____ side of the
______account in Balance of Payment. Unit -5 1
(Choose the correct alternative to fill up the blanks)
(a) credit, capital (b) debit, capital
(c) credit, current (d) debit, current
9. Identify which of the following equations is true. Unit-2 1
(Choose the correct alternative)
(a) MPC + MPS = 0 (b) MPC + MPS =1
(c) MPC + MPS > 1 (d) MPC + MPS < 1
10. A situation in which an able bodied person is not willing to work at the existing
wage rate, is referred to as _____ situation. Unit-2 1
(Choose the correct alternative to fill up the blank)
(a) Full employment (b) Involuntary unemployment
(c) Voluntary unemployment (d) Disguised unemployment

11. (a) Distinguish between ‘Value Addition' and 'Final Value of Output’. Unit-3 3
OR

51

(b) Find the Value Added by Firm A, from the following information: Unit-1 3
S. No. Particulars Amount (in ₹ Crore)
(i) Purchase of factor inputs by Firm A 5
(ii) Purchase of non-factor inputs by Firm A 2
(iii) Sales by Firm A to other firms in the domestic 10
economy
(iv) Import of raw materials by firm A from rest of the 50
world
(v) Excess of opening stock over closing stock 3

12. "There exists a positive relation between foreign exchange rate and supply of
foreign exchange.” Do you agree with the given statement? Justify your answer
with valid arguments. Unit - 5 3
13. Describe the adjustment mechanism, if ex-ante savings are less than ex-ante
investments. Unit-2 4
14. Read the following news published on September 26, 2022:
"The central bank has increased the benchmark lending rate by 140 basis points."
Identify the likely cause and consequences behind this action taken by the
Reserve Bank of India. Unit-3 4
15. (a) Explain the 'Government's Bank' function of the central bank. Unit-3 4
OR
(b) Using a hypothetical numerical example, explain the effect of rise in Reserve
Ratio on credit creation by the commercial banks. Unit-3 4
16. (a) "National Income is always greater than Domestic Income" Do you agree with
the given statement? Support your answer with a valid reason. Unit-1 3
(b) "In the estimation of Gross Domestic Product (GDP) using expenditure
method, focus lies only on expenditure by the residents of the country."
Do you agree with the given statement? Give valid reasons for your answer. 3

17. (a) (i) From the information given in the diagram, categorize the items into
revenue receipts and capital receipts, stating valid reasons. Unit-4 4

52

WHERE INDIA GETS ITS MONEY FROM?
For every 1 that the Govt. earns

(ii) Distinguish between Revenue deficit and Fiscal deficit. 2
OR
(b) (i) From the following data, calculate the primary deficit. Unit-4 3

S.No. Particulars Amount (in ₹ Crore)
(i) Revenue deficit 40
(ii) Non-debt creating capital receipts 190
(iii) Tax revenue 125
(iv) Capital Expenditure 220
(v) Interest Payments 20

(ii) Elaborate ‘Economic stability’ function of the Government Budget. 3
SECTION B

Indian Economic Development

18. Read the following statement carefully: Unit-6 1

53

Statement 1: Commercialization of agriculture under the British rule was
responsible for frequent famines between 1875 and 1900.
Statement 2: During British rule, India began to export food grains
In light of the given statements, choose the correct alternative from the 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 and 2 are false.
19. (A) Read the following statements carefully: Unit-6 1
Statement 1: The purchase of food grains made by the Government on the
Minimum Support Price (MSP) is maintained as buffer stock.
Statement 2: Minimum Support Price safeguards the farmers against any sharp
fall in farm product prices.
In light of the given statements, choose the correct alternative from the 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 and 2 are false
OR
(B) Identify the incorrect statement from the following: Unit -6 1
(a) Import substitution was the strategy used to save foreign exchange.
(b) License policy ensured regional equality.
(c) Russian economic model was the base for the Indian economic system.
(d) Small Scale Industries are one of the essential tools for employment
generation.
20. Mini-hydel plants are good for the environment because: Unit-8 1
(i) they generate electricity only for local areas.
(ii) they do not change the land use pattern.
(iii) they rely on the perennial streams.
(Choose the correct alternative)
Alternatives:
(a) (i), (ii) and (iii) (b) (ii) and (iii)

(c) (i) only (d) (i) and (ii)

54

21. (A) The Great Leap Forward (GLF) campaign in China focused on ______. 1
(Choose the correct alternative to fill up the blank) Unit -9
(a) Widespread industrialization. (b) New agricultural strategy
(c) Privatisation (d) Economic reforms
OR
(B) India is not a member of which of the following regional/global economic
groups? Unit-7 1
(a) European Union (b) BRICS
(c) G20 (d) SAARC
22. "Skill India' programme launched by the Government is not an attempt to increase
_____in India. Unit-8 1
(Choose the correct alternative to fill up the blank)
(a) human capital formation
(b) efficient utilisation of inputs
(e) increase in GDP growth
(d) inadequate spread of vocational education
23. Identify the correct alternative with reference to the following statement: 1
"Between 1966-76, Mao introduced this movement under which professionals and
students were asked to work and learn from real life situations prevailing in the
countryside of China." Unit-9
(a) Commune System
(b) Great Leap Forward
(c) Open Door Policy
(d) Great Proletarian Cultural Revolution

24. Read the following statements carefully: Unit-9 1
Statement 1: In both India and Pakistan, the service sector has been emerging
as a major source of development.
Statement 2: Amongst the neighbours of India, China has the highest life

expectancy rate.
In light of the given statements, choose the correct alternative from the following:
a) Statements1 is true and Statement 2 is false.

55

b) Statement 1 is false and Statement 2 is true.
c) Both Statements 1 and 2 are true.
d) Both Statements 1 and 2 are false.
25. (A) Workers who are on the permanent pay-roll of their employer are called
_____workers. Unit-8 1
(Choose the correct alternative to fill up the blank)
(a) self-employed (b) casual
(c) regular (d) hired
OR
(B) Jobless growth leads to unemployment because _____. Unit-8 1
(Choose the correct alternative to fill up the blank)
(a) Labour refuses to migrate
(b) Labour is very expensive
(c) Growth rate is low
(d) Growth is due to technological development
26. Production of diverse varieties of crops rather than one specialized crop is
called_____. Unit-8 1
(Choose the correct alternative to fill up the blank)
(a) diversification of crops
(b) diversification of agricultural production
(c) diversification in sectors
(d) diversification of employment

27. Read the following statements carefully: Unit-9 1
Statement 1: India announced its First Five Year Plan in 1951.
Statement 2: India, Pakistan and China adopted economic planning as the core
development strategy.
In light of the given statements, choose the correct alternative from the following
(a) Statement 1 is true and Statement 2 false.
(b) Statement 1 is false and Statement 2 true.

(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.

56

28. Interpret the given picture, on account of current environmental challenges: 3

OR
Explain any one current environmental challenge. Unit-8 3
29. (a) Critically evaluate the role of rural banking system in the process of rural
development in India. Unit-8 3
OR
(b) "Dr Khurana, a dentist, ran his clinic in an economically backward area. He
was earning a comparatively low income. So, he decided to move to a city and
spent a huge amount for the same." Identify and explain the type of expenditure
incurred by Dr. Khurana, which directly contributed to the process of human
capital formation. Unit-8 3
30. Explain valid reasons for the slow growth and re-emergence of poverty in
Pakistan. Unit-9 4
31. (a) Explain briefly the rationale behind the ‘License Raj’ under the Industrial
Policy Resolution,1956). Unit-7 3
(b) Define Multilateral trade. 1

32. (a) State and elaborate whether the following statement is true or false, with valid
arguments: Unit-8
"Indian economy has showed satisfactory progress towards formalization of
workforce in the recent past. 4
OR
(c) "In India, the self-employed constitute around 60% employees. The possible
incidence of under employment is the highest among the self-employed.”
As an economist, suggest and elaborate any two measures that may be taken to

ensure more productive employment for the self-employed. Unit-8 4
33. (a) (i) Why are less women found in regular salaried employment? Unit-8 3
(ii) Distinguish between human capital and physical capital. 3
57

OR
(b) (i) State and discuss any one strategy involved in attaining sustainable
development in India. Unit-8
(ii) Discuss briefly the importance of micro credit programme in rural India. 3
34. Read the following text carefully:
According to NITI Aayog, India has a technological advantage to facilitate digital
banks. There is a need for creating a regulatory framework for promoting this.
NITI Aayog, in its report titled "Digital Banks A Proposal for Licensing and
Regulatory Regime for India", offers a template and roadmap for a digital bank
licensing and regulatory regime for a country. India's public digital infrastructure,
especially Unified Payments Interface (UPI) has successfully faced this.
With Aadhar. India is at the cusp of operationalizing its own open banking
framework. This demonstrates that India has the technology stock to fully
facilitate digital banks.
Digital banking allows a user to set up automatic payments for regular utility bills.
Digital banking enables fund transfers to reduce the risk of counterfeit currency.
By promoting a cashless society, digital banking restricts the circulation of black
money. Unit-6
On the basis of the given text and common understanding, answer the following
questions:
(a) Which institution has been replaced by NITI Aayog in India? Who is the ex-
officio Chairman of NITI Aayog ? 2
(b) State and discuss any two main advantages of digital banking. 4

58

Paper 7
Section-A
(Macro Economics)

1 "In the Annual Budget 2022-23 the Government of India set up disinvestment
targets of Rs. 65,000 сrore.” Unit-4 1
Such proceeds from disinvestment can be classified as ____ receipts in the
Government Budget as it leads to ___ of the Government.
(Choose the correct alternative)
(a) capital, decrease in assets (b) revenue, increase in assets
(c) capital, increase in liabilities (d) revenue, decrease in liabilities
2. Read the following statements- Assertion (A) and Reason (R). Choose one of the
correct alternatives given below: Unit-5 1
Assertion (A): The Balance of Payments is in surplus, if autonomous receipts are
greater than autonomous payments.
Reason (R): Autonomous transactions are determined by the difference in the
Balance of Payments
Alternatives:
(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 and 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
3. Read the following statements carefully: Unit -2 1
Statement 1: The induced consumption shows, the direct relation between
consumption and income.
Statement 2: With a certain increase in income, induced 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.

59