Analysis of Pupil

Performance

ECONOMICS
ICSE

Research Development and Consultancy Division

Council for the Indian School Certificate Examinations

New Delhi
Year 2018
__________________________________________________________________________________

Published by:
Research Development and Consultancy Division (RDCD)
Council for the Indian School Certificate Examinations
Pragati House, 3rd Floor
47-48, Nehru Place
New Delhi-110019

Tel: (011) 26413820/26411706

E-mail: council@cisce.org

© Copyright, Council for the Indian School Certificate Examinations

All rights reserved. The copyright to this publication and any part thereof solely vests in the Council for
the Indian School Certificate Examinations. This publication and no part thereof may be reproduced,
transmitted, distributed or stored in any manner whatsoever, without the prior written approval of the
Council for the Indian School Certificate Examinations.
 FOREWORD

This document of the Analysis of Pupils’ Performance at the ISC Year 12 and ICSE Year 10
Examination is one of its kind. It has grown and evolved over the years to provide feedback to
schools in terms of the strengths and weaknesses of the candidates in handling the examinations.

We commend the work of Mrs. Shilpi Gupta (Deputy Head) of the Research Development and
Consultancy Division (RDCD) of the Council and her team, who have painstakingly prepared this
analysis. We are grateful to the examiners who have contributed through their comments on the
performance of the candidates under examination as well as for their suggestions to teachers and
students for the effective transaction of the syllabus.

We hope the schools will find this document useful. We invite comments from schools on its
utility and quality.

Gerry Arathoon
October 2018 Chief Executive & Secretary

i
 PREFACE

The Council has been involved in the preparation of the ICSE and ISC Analysis of Pupil Performance
documents since the year 1994. Over these years, these documents have facilitated the teaching-learning
process by providing subject/ paper wise feedback to teachers regarding performance of students at the ICSE
and ISC Examinations. With the aim of ensuring wider accessibility to all stakeholders, from the year 2014,
the ICSE and the ISC documents have been made available on the Council’s website www.cisce.org.

The documents include a detailed qualitative analysis of the performance of students in different subjects
which comprises of examiners’ comments on common errors made by candidates, topics found difficult or
confusing, marking scheme for each answer and suggestions for teachers/ candidates.

In addition to a detailed qualitative analysis, the Analysis of Pupil Performance documents for the Examination
Year 2018 have a component of a detailed quantitative analysis. For each subject dealt with in the document,
both at the ICSE and the ISC levels, a detailed statistical analysis has been done, which has been presented in
a simple user-friendly manner.

It is hoped that this document will not only enable teachers to understand how their students have performed
with respect to other students who appeared for the ICSE/ISC Year 2018 Examinations, but also provide
information on how they have performed within the Region or State, their performance as compared to other
Regions or States, etc. It will also help develop a better understanding of the assessment/ evaluation process.
This will help teachers in guiding their students more effectively and comprehensively so that students prepare
for the ICSE/ ISC Examinations, with a better understanding of what is required from them.

The Analysis of Pupil Performance document for ICSE for the Examination Year 2018 covers the following
subjects: English (English Language, Literature in English), Hindi, History, Civics and Geography (History
and Civics, Geography), Mathematics, Science (Physics, Chemistry, Biology), Commercial Studies,
Economics, Computer Applications, Economic Applications, Commercial Applications.
Subjects covered in the ISC Analysis of Pupil Performance document for the Year 2018 include English
(English Language and Literature in English), Hindi, Elective English, Physics (Theory), Chemistry (Theory),
Biology (Theory), Mathematics, Computer Science, History, Political Science, Geography, Sociology,
Psychology, Economics, Commerce, Accounts and Business Studies.

I would like to acknowledge the contribution of all the ICSE and the ISC examiners who have been an integral
part of this exercise, whose valuable inputs have helped put this document together.

I would also like to thank the RDCD team of, Dr. M.K. Gandhi, Dr. Manika Sharma, Mrs. Roshni George and
Mrs. Mansi Guleria who have done a commendable job in preparing this document.

Shilpi Gupta
October 2018 Deputy Head - RDCD

ii
CONTENTS

Page No.

FOREWORD i

PREFACE ii

INTRODUCTION 1

QUANTITATIVE ANALYSIS 3

QUALITATIVE ANALYSIS 10
 INTRODUCTION

This document aims to provide a comprehensive picture of the performance of candidates in the
subject. It comprises of two sections, which provide Quantitative and Qualitative analysis results in
terms of performance of candidates in the subject for the ICSE Year 2018 Examination. The details
of the Quantitative and the Qualitative analysis are given below.

Quantitative Analysis
This section provides a detailed statistical analysis of the following:

 Overall Performance of candidates in the subject (Statistics at a Glance)

 State wise Performance of Candidates
 Gender wise comparison of Overall Performance
 Region wise comparison of Performance
 Comparison of Region wise performance on the basis of Gender
 Comparison of performance in different Mark Ranges and comparison on the basis of Gender for
the top and bottom ranges
 Comparison of performance in different Grade categories and comparison on the basis of Gender
for the top and bottom grades

The data has been presented in the form of means, frequencies and bar graphs.

Understanding the tables

Each of the comparison tables shows N (Number of candidates), Mean Marks obtained, Standard
Errors and t-values with the level of significance. For t-test, mean values compared with their
standard errors indicate whether an observed difference is likely to be a true difference or whether it
has occurred by chance. The t-test has been applied using a confidence level of 95%, which means
that if a difference is marked as ‘statistically significant’ (with * mark, refer to t-value column of the
table), the probability of the difference occurring by chance is less than 5%. In other words, we are
95% confident that the difference between the two values is true.

t-test has been used to observe significant differences in the performance of boys and girls, gender
wise differences within regions (North, East, South and West), gender wise differences within marks
ranges (Top and bottom ranges) and gender wise differences within grades awarded (Grade 1 and
Grade 9) at the ICSE Year 2018 Examination.

The analysed data has been depicted in a simple and user-friendly manner.

1
Given below is an example showing the comparison tables used in this section and the manner in
which they should be interpreted.

The table shows comparison

between the performances of boys
and girls in a particular subject.
Comparison on the basis of Gender
The t-value of 11.91 is significant at
Gender N Mean SE t-value 0.05 level (mentioned below the
Girls 2,538 66.1 0.29 table) with a mean of girls as 66.1
11.91*
Boys 1,051 60.1 0.42 and that of boys as 60.1. It means
*Significant at 0.05 level
that there is significant difference
between the performance of boys
and girls in the subject. The
probability of this difference
occurring by chance is less than 5%.
The mean value of girls is higher
than that of boys. It can be
interpreted that girls are performing
significantly better than boys.

The results have also been depicted

pictographically. In this case, the girls
performed significantly better than the
boys. This is depicted by the girl with a
medal.

Qualitative Analysis
The purpose of the qualitative analysis is to provide insights into how candidates have performed in
individual questions set in the question paper. This section is based on inputs provided by examiners
from examination centres across the country. It comprises of question wise feedback on the
performance of candidates in the form of Comments of Examiners on the common errors made by
candidates along with Suggestions for Teachers to rectify/ reduce these errors. The Marking Scheme
for each question has also been provided to help teachers understand the criteria used for marking.
Topics in the question paper that were generally found to be difficult or confusing by candidates,
have also been listed down, along with general suggestions for candidates on how to prepare for the
examination/ perform better in the examination.

2
QUANTITATIVE ANALYSIS

STATISTICS AT A GLANCE

Total Number of
Candidates: 9,402

Mean Marks: Highest Marks: 100

66.4 Lowest Marks: 09

3
 PERFORMANCE (STATE-WISE & FOREIGN)

West Bengal 59.2

Uttarakhand 64.4
Uttar Pradesh 60.6
Telangana 72.8
Tamil Nadu 63.2
Sikkim 62.7
Rajasthan 71.3
Punjab 64.1
Puducherry 81.4
Odisha 57.8
Maharashtra 80.8
Madhya Pradesh 66.6
Kerala 69.9
Karnataka 72.8
Jharkhand 57.0
Himachal Pradesh 64.3
Haryana 70.1
Gujarat 71.8
Goa 76.6
Chhattisgarh 65.4
Chandigarh 73.8
Assam 80.8
Foreign 86.6

The States/ UTs of Puducherry, Assam and Maharashtra secured

highest mean marks. Mean marks secured by candidates studying in
schools abroad were 86.6.
4
 GENDER-WISE COMPARISON

GIRLS BOYS
Mean Marks: 69.1 Mean Marks: 63.8
Number of Number of
Candidates: 4,597 Candidates: 4,805

Comparison on the basis of Gender

Gender N Mean SE t-value
Girls 4,597 69.1 0.28 13.49*
Boys 4,805 63.8 0.28
*Significant at 0.05 level

Girls performed
significantly better than
boys.

5
 REGION-WISE COMPARISON

East North
Mean Marks: 59.2 Mean Marks: 62.2

Number of Number of
Candidates: 2,548 Candidates: 3,858

Highest Marks: 100 Highest Marks: 100

Lowest Marks: 18 Lowest Marks: 09

Mean Marks: 72.0 REGION Mean Marks: 80.0

Number of Number of
Candidates: 751 Candidates: 2,198

Highest Marks: 100 Mean Marks: 86.6 Highest Marks: 100

Lowest Marks: 25 Lowest Marks: 25
Number of
South Candidates: 47 West

Highest Marks: 100

Lowest Marks: 46

Foreign

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 Mean Marks obtained by Boys and Girls-Region wise

86.2 87.4
82.0
76.2 78.1
65.5 68.2
58.9 60.8 57.7

North East South West Foreign

Comparison on the basis of Gender within Region

Region Gender N Mean SE t-value
Girls 1,907 65.5 0.42
North (N) Boys 1,951 58.9 0.43
10.96*
Girls 1,216 60.8 0.50
East (E) Boys 1,332 57.7 0.46
4.64*
Girls 354 76.2 0.79
South (S) Boys 397 68.2 0.83
7.04*
Girls 1,087 82.0 0.42
West (W) Boys 1,111 78.1 0.47
6.31*
Girls 33 86.2 2.36
Foreign (F) Boys 14 87.4 3.73
-0.26
*Significant at 0.05 level

REGION (N, E, S, W)

7
 MARK RANGES :
COMPARISON GENDER-WISE

Comparison on the basis of gender in top and bottom mark ranges

Marks Range Gender N Mean SE t-value
Girls 1,487 89.9 0.15
Top Range (81-100) Boys 1,126 89.1 0.17
3.64*
Girls 2 18.5 0.50
Bottom Range (0-20) Boys 11 17.7 0.94
0.73
*Significant at 0.05 level

Boys Girls All Candidates

Marks Range (81-100) 89.1

81 - 100 89.9
89.6

70.1
61 - 80 70.8
Marks Range (81-100)
70.5

51.2
41 - 60 51.4
51.3

Marks Range (0-20) 33.1

21 - 40 34.1
33.5

17.7
0 - 20 18.50
17.8

8
 GRADES AWARDED :
COMPARISON GENDER-WISE

Comparison on the basis of gender in Grade 1 and Grade 9

Grades Gender N Mean SE t-value

Girls 758 94.7 0.12
Grade 1 Boys 513 94.4 0.14
1.38
Girls 2 18.5 0.50
Grade 9 Boys 11 17.7 0.94
0.73

Boys Girls All Candidates

94.4
No significant difference was 1 94.7
94.6
observed between the average 84.2
2 84.4
performance of girls and boys. 84.3
75.5
3 75.4
75.5
66.5
4 66.5
66.5
56.6
5 56.7
56.7
47.5
6 47.6
47.5
37.8
7 37.8
37.8
26.1
8 26.8
26.3
17.7
9 18.5
17.8

9
QUALITATIVE ANALYSIS

SECTION I (40 Marks)

Attempt all questions from this Section

Question 1
(a) Give two reasons as to why the division of labour is an advantage to the producer? [2]
(b) Define the term consumer awareness. [2]
(c) Why do small farmers suffer during inflation? [2]
(d) Which are the two sources of public revenue? [2]
(e) Define the term labour as a factor of production. [2]

Comments of Examiners
(a) Most of the candidates, instead of writing the Suggestions for teachers
reasons for division of labour being − Tell the students to read the questions
advantageous to a producer, wrote about the carefully and answer them according
advantages of division of labour to the to their requirements.
− Instruct the students to emphasize on
consumers, workers and society. the keywords when writing
(b) Some candidates, instead of defining consumer definitions.
awareness, discussed various rights of the − While teaching inflation, bifurcate
consumers. A few candidates did not write the the topic of impact of inflation
through examples of big and small
key words like rights and duties in their answer. farmers.
(c) Most of the candidates attempted this question − Give examples of the various sources
correctly. A few candidates, however, wrote the of revenues of the government.
definition of inflation, instead of the impact of − Lay emphasis on key words of the
definitions.
inflation on farmers.
(d) Most candidates wrote the appropriate sources
of taxes i.e. Tax and Non-Tax revenues.
(e) Majority of the candidates were able to answer
this question. However, a few candidates did not write the keyword reward in the definition

10
 MARKING SCHEME
Question 1
(a) − Increases the size of production
− increases the quality of production
− reduces cost of production
− greater possibilities of inventions
− saving of time and tools
− benefits large scale production
− avoids wastage of resources
(Any two)
(b) Consumer’s consciousness towards his / her rights or duties and protection is called
consumer awareness.
OR
The knowledge of the consumer towards their rights and protection is called consumer
awareness.
(c) (i) As a major portion of theirs is not marketed but instead kept for self consumption.
(ii) They have to purchase inputs like seeds, fertilizers, insecticides etc. at higher prices
during inflation.
(d) Tax- direct or indirect, and
Non tax - administrative & commercial (Any two)
(e) Labour consists of all human efforts of body or mind which are undertaken in the
expectation of reward.

Question 2
(a) Explain any one factor that affects the supply of a commodity. [2]
(b) What do you understand by the term ‘near money’? [2]
(c) A list of goods are given below. [2]
State whether it is fixed capital or circulating capital.
(i) Machines
(ii) Raw material
(iii) Fuel
(iv) Office furniture
(d) With the help of an example explain the term productive debt. [2]
(e) Explain any two characteristics of capital. [2]

11
Comments of Examiners
(a) Some candidates, instead of writing a factor that
affects the supply of a commodity, explained a Suggestions for teachers
factor that affects its demand. Some candidates − Make a flow chart to explain to the
wrote the heading but did not explain it. students, the difference between
(b) Very few candidates attempted this question. public expenditure and productive
debt. The explanation should be
(c) Majority of the candidates were able to answer this accompanied with relevant
question. examples.
− Lay stress that every heading should
(d) Some candidates explained public expenditure
be accompanied with its
instead of productive debt. A few candidates were explanation.
unable to give an example of productive debt. − Tell the students to read the
(e) Many candidates, instead of explaining questions carefully and answer
characteristics of capital, wrote the functions of them according to their
capital. requirements.
− Teach topics by giving examples
from real life situations.
− Explain to the students, the meaning
of the terms functions and
characteristics so that they are able
to write their answer according to
the demands of the question.

MARKING SCHEME
Question 2
(a) − Price of the commodity
− price of other commodities
− price of related goods,
− goals of the firms,
− prices of factors of production.
− State of technology
− Number of producers
− Future expectation regarding price
− Taxes and subsidies
− Natural factors means of transport and communication
(Head point with explanation)

(b) Near money refers to highly liquid assets which can be easily converted in to cash at a short
notice.

12
(c) (i) Fixed Capital
(ii) Circulating
(iii) Circulating
(iv) Fixed
(d) Productive debts are those debts which are used by the government for those projects which
yield income.
Example: Construction of railways, irrigations, power projects, establishment of heavy
industries such as iron, steel, cement, fertilizer.
(Any one example)
(e) − Capital is man made.
− Capital is durable
− Capital is a passive factor of production
− A mobile factor
− Supply of capital is elastic
− Capital is subject to depreciation
− Capital is the result of pas saving.
(Header point with explanation)

Question 3
(a) How is land different from labour? [2]

(b) Draw a diagram showing a perfectly elastic demand curve. [2]

(c) With help of an example explain the term complementary goods. [2]

(d) Name any two sources of external debt for India. [2]

(e) Differentiate between creeping and running inflation. [2]

13
Comments of Examiners
(a) .Majority of the candidates were able to answer this Suggestions for teachers
question. A few candidates, however, wrote the - Train the students to name the axis of
features of land in the column for labour and vice- the graphs.
versa. - Give sufficient practice to the
(b) Some candidates did not write the symbol for the students to draw graphs with
complete detailing.
degree of elasticity.
- Make the students familiar with the
(c) Majority of the candidates were able to answer this different percentage ranges of each
question. type of inflation.
(d) Most of the candidates answered this part correctly. - Explain key words with examples.
(e) Most of the candidates were unable to give the correct
range of percentage for both the types of inflation.

MARKING SCHEME
Question 3
(a) Land  Passive, immobile, inelastic, perishable, can be separated from the owner.
Labour  active, mobile, relatively inelastic, permanent, cannot be separated.
(Any two)
(b) Ed = ∞

(c) Complementary goods are those goods which are jointly demanded to satisfy a particular
want.
Example: car and petrol, pen and ink, glass and water or any liquid.
(Any one example)
(d) World Bank, IMF, IDA, USA, OPEC, Russia Federation
(e) Creeping inflation:
(i) Price rises 2 percent annually
(ii) Essential for economy because it keeps the economy away from stagnation.
Running inflation:

14
 (i) Price rises around 10 to 20 percent per annum
(ii) The economic position becomes worse (as it affects the poor and middle class people
adversely).

Question 4
(a) Mention two ways by which efficiency of labour can be improved. [2]

(b) What does the term ‘nationalisation of banks’ mean? [2]

(c) Why is India considered to be in a virtual debt trap? [2]

(d) Give any two reasons for giving the monopoly right of note issue to the Central Bank. [2]

(e) Mention any two duties of a consumer. [2]

Comments of Examiners
(a) Some candidates did not write the captions. A few
candidates wrote the reasons for the efficiency of Suggestions for teachers.
labour being low. - Tell the students to read the
(b) Several candidates did not write the keywords like questions carefully and answer them
taking over by the government. according to their requirements.
(c) This question was not well answered by most of the - Train the students to write captions
candidates. in every answer.
(d) Majority of the candidates were able to answer this - Emphasize on the importance of
question. Some candidates, instead of mentioning using relevant economic terms
the rights of the Central Bank to issue currency specially while explaining the
notes, wrote other functions of the Central Bank. meaning of terms.
(e) Majority of the candidates were able to answer this - Train students to answer application-
question. based question.
- Explain to the students the meaning
of the terms functions and rights so
that they are able to write their
answer according to the demands of
the question.
- Teach topics by giving examples
from real life situations.

15
 MARKING SCHEME
Question 4
(a) − Payment of wages should be fair and prompt.
− Bonus must be given
− Working conditions in factories / work place should improve
− Social security measures such as insurance, provident fund, pension etc. should be given.
− Hours of work should not be more than 8 hours.
− Technical education facilities should be expanded in all fields.
(b) By nationalization we mean the taking over by the government the ownership and
management of the commercial bank.
(c) As India is in a situation where the government has to borrow for the purpose of meeting
interest obligation on old debt.
(d) − It brings uniformity in note circulation,
− it gives distinctive prestige to the note issue as a result people develop faith in the
currency,
− government can have supervision and control over the supply of money,
− central bank can exercise control over the creation of credit by commercial banks
(Any two)
(e) − Consumer should look at the quality of the product,
− should look for warrantee or guarantee card,
− should check for ISI or BIS, Agmark,
− ask for cash memo,
− be aware of their rights,
− should form consumer awareness organisations,
− should know the method how to proceed if he is cheated.
(Any two)

16
 SECTION B (40 Marks)
Attempt any four questions from this Section

Question 5
(a) Give any five differences between product and process based division of labour. [5]

(b) Explain any five rights of the consumers as accepted by the Indian law. [5]

Comments of Examiners
(a) Some candidates were unable to write five differences Suggestions for teachers.
between the product and process based division of - Supplement the already existing
labour. material by doing research on various
(b) Majority of the candidates were able to answer this topics.
question. However, a few candidates wrote the - Lay stress that every heading should
captions without their explanation. be accompanied with its explanation
and relevant examples.

MARKING SCHEME
Question 5
(a) Product Process
(i) When the entire process of production (i) When the process of production is split
of a single good or service is done up into different operations and each
individually or collectively by the worker does one or a few operations.
members of a family.
(ii) The worker specializes in the (ii) Worker specializes in a particular
production of a commodity or service. process of the production of the
commodity.
(iii) It is simple in nature. (iii) It is complex in nature.
(iv) It is based on labour intensive (iv) It is based on capital intensive technique
technique of production. of production.
(v) It is generally found in small (v) It is generally found in large enterprises
enterprises. like corporate or quasi corporate
enterprises.
(vi) Indian farmers doing all the farm (vi) A modern garment factory.
activities with the help of his family
members collectively.
(b) − Right to safety

17
 − Right to be informed
− Right to choose
− Right to be heard
− Right to seek redressal
− Right to consumer education.
(Explain any five)

Question 6
(a) How do the manufacturers and traders exploit the consumers? [5]

(b) Explain the role of an entrepreneur in the economic development of the country. [5]

Comments of Examiners
(a) Majority of the candidates were able to answer this
question. However, a few candidates, instead of Suggestions for teachers
writing how consumers are exploited, wrote about
why they are exploited.
- Explain the concepts of why and how
the consumers are exploited, by
(b) Some candidates explained the functions of an giving real life examples.
entrepreneur. A few candidates wrote about
- Regularly test the students on every
qualities of an entrepreneur. topic.
- Emphasize on the use of key terms in
answers of open-ended questions.

MARKING SCHEME
Question 6
(a) − Under weight and under measurement,
− substandard quality,
− duplicate articles, high prices,
− lack of safety devices,
− artificial scarcity,
− poor after sales services,
− adulteration and impurity,
− rude behavior and undue conditions.
(Explain any five)
(b) − National income increases,
− mobilise idle savings through the issues of shares and debentures,
− generate employment opportunities,
− set up industries in backward areas to avail concessions,
− reduce dependence on foreign countries.

18
Question 7
(a) How is a commercial bank different from a central bank? [5]

(b) What are the merits of an indirect tax? [5]

Comments of Examiners
(a) Majority of the candidates were able to answer this Suggestions for teachers
question. A few candidates, however, wrote the - Advise the students to check, before
features of a commercial bank in the column for submitting their answer scripts,
whether their answers are as per the
central bank and vice-versa. requirements of the questions.
(b) Majority of the candidates, instead of writing the - Train the students to read questions
merits of indirect tax, wrote its demerits properly before answering them.
- Lay stress that every heading should
be accompanied with its explanation
and relevant examples

MARKING SCHEME
Question 7
(a) Central bank Commercial bank
(i) It is the apex institution of the monetary (i) It operates under the guidelines of the
and banking structure of the country. central bank.
(ii) Its main objective is to promote social (ii) Its main objective is to earn profit.
welfare.
(iii) Central bank is generally a government (iii) It may be both privately owned or
owned institution. government owned institution.
(iv) It has got the monopoly right of note (iv) It does not have such rights.
issue.
(v) It is banker to the government and (v) It is a banker only of general public.
commercial banks.
(vi) No direct public dealing. (vi) Has direct public dealing.
(vii)There can be only one central bank with (vii) There are a number of commercial
a few offices in the country. banks with a large number of branches
all over the country and also even
abroad.
(Any five)
(b) − Convenient

19
 − Wide coverage
− Equity
− Elastic
− No evasion
− Check on consumption of harmful commodities
− Protection against foreign competition.
(Explain any five)

Question 8
(a) With the help of a graph explain relatively inelastic demand for a commodity. [5]
(b) Discuss any five advantages of having a bank account. [5]

Comments of Examiners
(a) Not many candidates attempted this question. Some
candidates did not write the degree & symbol of Suggestions for teachers
elasticity. Several candidates did not name the axis - Train the students to name the axis of
while a few candidates did not write what each axis the graphs.
measured. - Give sufficient practice to the students
(b) Majority of the candidates were able to answer this to draw graphs with complete
question. A few candidates, however, instead of detailing.
writing the advantages of a bank account, wrote its - Train students to answer application-
functions. based question.
- Give a project on banking

MARKING SCHEME
Question 8
(a) When the percentage change in demand is lesser than that percentage change in price
Ed < 1

20
(b) − Develops the habit of saving,
− payments through cheques are always easier and safe,
− businessmen can get their bills of exchange discounted easily,
− customer can avail overdraft facility,
− a customer can make payment of premium to the insurance company,
− money is safe,
− any transactions through a bank account can be produced as an evidence in case of
dispute,
− customers earn interest.
(Explain any five)

Question 9
(a) Explain any five characteristics of tax. [5]

(b) (i) What is meant by the term demand pull inflation? [5]

(ii) Discuss any three causes of demand pull inflation.

Comments of Examiners
Suggestions for teachers
(a) Some candidates, instead of explaining the
characteristics of tax, explained the canons of - With the help of a flow chart, discuss
the features, merits & demerits of
taxation. taxes.
(b) (i) Some candidates did not write the keyword - Lay stress on key terms and relevant
needed for the definition. examples, while explaining the
(c) (ii) A number of candidates wrote the causes of meaning of concepts and economic
cost push inflation instead of the causes of terms
demand pull inflation.

MARKING SCHEME
Question 9
(a) Five characteristics of Tax are as follows:
(i) Compulsory payment: Refusal to pay taxes is subjected to legal action and punishment
by the government.
(ii) General Welfare: The amount received from taxes is spent for common benefits or
general welfare.
(iii) No Quid Pro Quo: The essence of the tax is the absence a proportionate return to the
tax payer from the public authority.
(iv) A tax is payable regularly and periodically as determined by the taxing authority.

21
 (v) A tax is a legal collection.
(b) Demand pull inflation: Refers to a situation/ in which prices rise/ because the demand for
goods and services exceeds/ the total supply available at current prices.
Three Causes (To be explained briefly):
− Increase in money supply
− Increase in disposable income
− Increase in population

Question 10
(a) (i) Define the term demand. [5]
(ii) Explain any three factors that affect the demand for a commodity.
(iii) Why are articles of distinction or the Veblen effect an exception to the law of
demand?
(b) Discuss any five reasons for growth of public expenditure in India. [5]

Comments of Examiners
(a) (i) A few candidates did not write key terms
Suggestions for teachers
like time & price. - Emphasize on key economic terms.
(ii) Majority of the candidates were able to answer - Repeatedly revise assumptions and
this question. exceptions of law of demand, either
through class discussions or
(iii) Majority of the candidates were able to
through written work.
answer this question. However, a few - Regularly discuss projects
candidates, being unable to comprehend the undertaken by the government,
question, did not write a satisfactory answer. laying emphasis on their
(b) Majority of the candidates were able to answer expenditures and benefits
this question.

MARKING SCHEME
Question 10
(a) (i) Demand means the quantity of a commodity or service that a consumer is willing to buy
at a given price and at a given time.
(ii) – Price of the commodity
– Price of related goods,
– Income of the consumer,
– Tastes and preferences
– Consumer credit facility
– Population

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 – Season and weather
– Government policy
– State of business
– Distribution of income. (Any three)
(iii) Such goods are mainly purchased because their price is high. A fall in their price may
lead the rich people to buy less because now the rich man’s desire for distinction is not
satisfied or to maintain status symbol.
(b) Political causes
− Growth of democracy
− Increase in defense expenditure
Social causes
− Population growth
− Social services
− Social security measures
Economic causes
− Rise in prices
− Growth of public sector
− Economic assistance to private sector
− Development programmes
− Growing trend of urbanisation
(Any five)

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Topics found • Plotting of graphs of demand and supply.
• Application based question on money.
difficult /
• Concept of demand pull inflation.
confusing by • Defining terms like demand.
candidates • Veblen effect.
• Monopoly rights of note issue to the central bank.
• Product & process based division of labour (differentiation).
• Supporting answers with captions and examples.

• Developing the habits of reading the newspaper to update their knowledge &
Suggestions information.
for • Develop regular study pattern.
candidates • Participate in classroom discussion.
• Avoid selective study.
• Judiciously use the 15 minutes reading time to understand the requirements of
the questions.
• Support answers with captions and examples.
• Write proper economic terms in every answer.
• Practice sample/previous years’ question papers.
• Practice in answering application-based questions.

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