Series :Z2YWX SET ~ 3

58/2/3
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RollNo.

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on the

NOTE
this question
Please check that
() printed pages.
paper contains 23 question
this
Please check that
questions.
paper contains 34
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aV) 4T number of the question in
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allotted to
15 minute time has been
read this question paper. The
question paper will be distributed at
10.15 g febe IT | 10.15 10.15 a.m. From 10.15 a.m. to 10.30
a.m., the candidates will read the
question paper only and will not
write any answer on the answer
book during this period.

ECONOMICS
3f0r6a4 3H6 : 80
hours Maximum Marks : 80
Time allowed:8
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 General Instructions :
Kead the following instructions carefully and follow them :
(i) 08 question paper contains 34 questions. All questions are compulsory.
(ii) This question paper containstwo sections :
Section -A: Macro Economics
Section -B: Indian Economic Development
(iüi) Znis Guestion paper contains 20 Multiple Choice type questions. Each
question carries 1mark.
(v) Zhis Question paper contains 4 Short Answer 1ype-I questions. Each
question carries 8 marks. Answer these questions in 60 to 80 words.
(u) This Question paper contains 6 Short Answer Type-I questions. Each
question carries 4 marks. Answer these gquestions in 80 to 100 words.
(vi) This Question paper contains 4 Long Answer Type Questions. Each
question carries 6 marks. Answer these questions in 100 to 150 words.
(vii) Attempt all parts of a question together.
(vii) In addition to this, NOTEthat a separate question has been provided for
Visually Impaired candidates in lieu of uestions having visual inputs,
map etc. Such questions are to be attempted by Visually Impaired
candidates only.
(ix) There is no overall choice in the question paper. However, an internal
choice has been provided in few questions. Only oneof the choices in such
questions has to be attempted.
SECTION- A
(Macro Economics)
1. Identify, which of the following is not to be considered while estimating
Revenue Deficit of a country. (Choose the correct option) 1
(A) Wages and salaries paid by the government
(B) Interest payments made by the Central Government
(C)Direct Tax Collection
D) Expenditure incurred on construction of flyover
2. Read the following statements : Assertion (A) and Reason (®). Choose one
of the correct options given below : 1
Assertion (A) : In case of public goods no one can be excluded from
enjoying the benefits.
Reason (R): Publicgoods are non-rivalrous and non-excludable in nature.
Options :
(A) Both Assertion (A) and Reason (R) are true and Reason ®) is the
correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason ®) is not the
correct explanation of Assertion (Á).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true,
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 1
3. Value Addition = -Value of Intermnediate Consumption.
(Choose the correct option(s) to complete the stated formula.)
) Domestic sales
(ii) Sales - change in stock
(i) Value of output
(iv) (Number of units produced) x (Price per unit)
Options:
(A) () and (i) B) (iü) and (iii)
(C) (i), (ii) and (iv) (D) (iii) and (iv)

100 crore
4. Suppose for an economy, autonomous consumption stands as
consumption
and total consumption is 130 crores. The value of induced
would be crore. (Choose the correct option to fill up the blank) 1

,SAy 30 (B) 80
(C) 100 (D) 130

5. In the Keynesian Economics, starts from the origin and is always drawn
at an angle of 45°. (Choose the correct option to fill up the blank) 1

(A) Consumption curve B Aggregate demand curve

(C) Reference line (D) Investment curve

6. The monetary policy is formulated by the in the Indian economy.

(Choose the correct option to fill up the blank) 1
(A) Central Government (B) State Governments
(C) Reserve Bank of India (D) World Bank

7. To arrive at the value of equilibrium level of income, there must exists an

equality between ex-ante and ex-ante
(Choose the correct option to fill up the blank) 1
() Aggregate Demand, Aggregate Supply
(ii) Aggregate Demand, Savings
(iii) Aggregate Demand, Inyestment
(iv) Savings, Investment
Options:
(A) i) and (i) (B) (i) and (iv)
(CY (ü) and (ii) D) (ii) and (iv)

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8. The budget under, which the government nay spend an amount equal to
the revenue it collects is referred as Budget.
1
(Choose the correct option to fill up the blank)
(A) Surplus (B) Deficit
(C) Balanced (D) Deflationary

9 Read the following statenments : Assertion (A) and Reason (R). Choose one 1
of the correct options given below :
Assertion (A) : If the value of Marginal Propensity to Save is 0.5,
Marginal Propensity to Consume will be equal to Marginal
Propensity to Save.
Reason (R) : Sum of Marginal Propensity to Consume and Marginal
Propensity to Save always equals to unity.
Options:
(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.
10. As the Banker to the Bank, Reserve Bank of India performs all functions
except (Choose the correct option to fill up the blank) 1
(A) Purchase and sale of securities on behalf of general public
(B) Maintaining current account for Commercial Banks
(C) Clearing and settlement of Interbank transactions
(D) Facilitating governmental transactions
11. a) The government generally levies higher Goods and Services Tax (GST)
on socially undesirable products likecigarettes, tobacco, liquor etc."
Identify and explain the indicated government budget objective in
the above statement.
OR
bY Two friends Ramesh (a software engineer) and Pihu (a bakery
owner) are discussing their contribution to the nation's economy
through tax payments. Ramesh earns R 8,00,000 per year, which
makes him liable to pay income tax. Pihu pays Goods and Service
Tax (GST) on the sale of cakes and pastries.
On the basis of the given text, identify whether Ramesh is paying a
direct tax or an indirect tax. Explain valid differences between two
types of taxes.
3
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 different from Real
Define Nominal Gross Domestic Product. How is it
Gross Domestic Product ?
investment projects for
l3.) Suppose for an economy, government proposes two investment of 2000
Construction of expressways with an additional consumption.
erore. Assuming. 80% of increase in income is spent on
Estimate the following on the basis of above information : 2
(a) Change in income (AY).
(b) Change in consumption (AC).

14. (A) On the basis of the given image, explain the steps which may be
taken by the Government of India to control the indicated macro
economic issue.
3

INFLATION

INDIA
N:ATON

(B) Define Open Market Operations'. 1

Note : The following questions are for the Visually Impaired
Candidates only in lieu of Q. No. 14.
(A) Explain any one fiscal policy measure that can be taken up by the
Government to control the situation of inflation prevailing in an economy. 3
(B) Define 'Open Market Operations'. 1

15. (a)stify the following statements with valid arguments :

Money supply in an economy is an example of a stock variable. 2
(i)The Central Bank provides several Banking services to the
government.
2
OR
(b) Assuming for a hypothetical economy, Central Bank increases the
Reserve Ratio from 20% to 25% and the total primary deposits stand
at 1,000.
Explain the effect of rise in Reserve Ratio on credit
commercial banks. creation hy
4
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 16. Read the following text carefully :
Balance of Payments (BoP) systematically summarise, the economic
transactions of an economy with the rest of the world, over a given period
of time.
The BoP can be broadly divided into two accounts namely:
current account
capital account
The current account measures the transfer of goods, services, income and
transfers between an economy and rest of the world. The current account
may be sub-divided into merchandise account and invisible account.
Merchandise account consists of transactions related to export and import
of goods.
In the invisible account, there are three broad categories :
Non-factor services such as travel, transportation, insurance etc.
Transfer which do not involve any value in exchange.
Income which includes compensation of employees and investment
income.
The capital account reflects the net changes in financial claims on rest of
the world.
The capital account can be broadly broken up into two categories :
Non-debt flows such as direct and portfolio investments.
Debt flows such as external assistance, commercial borrowings, non
resident deposits etc.
The sum of the two accounts indicates the overall balance, which could be
either be in surplus or deficit. The movement in overall balance is
reflected in changes in international reserves of the country.
Source : https : lmospi.gov.in/109-balance - payments
(adopted and modified)
On the basis of the given text and common understanding, answer the
following questions :
(a) Define Balanceof Payments.
1
) Differentiate between the tWO accountsof Balance of Payments
3
(c) Give the meaning of Balance of Payments deficit with formula
2
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 the value of
17. (a) () On the basis of the data given below. estimate
4
Gross National Product at Factor Cost (GNPr):
Amount
S. No. Items (? in crore)

(1) Private final consumption expenditure 2,000

Government final consumption expenditure 1,500

(2)
Gross domestic fixed capital formation 1,000
(3)
400
(4) Addition to stock
Consumption of fixed capital 50
(5)
Net factor income from abroad 100
(6)
(7) Net indirect Taxes 200

(8) Net Exports 700

(i1) Differentiate between positive externalities and negative

externalities.
OR

(b) 1) Gauhar, has recenty completed her fashion desigming studies

and started a boutique. To produce dresses for sale, she
purchased various materials, including a sewing machine,
fabric. buttons and thread. These items are essential for
producing the dresses.
Classify the material purchased by Gauhar as Final or
Intermediate goods, giving valid reasons in support of the
classifications.
(iü) "In a two sector economy, National income is always more than
Domestic income."
Defend or refute the given statement with reasons, 2

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 SECTION - B
(Indian Economic Development)
accounts as a
18. In recent years, all the adults are encouraged to open bank
part of a scheme known as
(Choose the correct option to fillp the blank) 1

(A) Jan-Dhan Yojana (B) Jan-Aushadhi Yojana

(C) Jan-Soochna Yojana (D) Jan-Arogya Yojana
19. The given chart indicates the problem of in the Indian Economy,
post 1990-92. (Choose the correct option to fill up the blank) 1
Growth of Employment and Gross Domestic
Product, 1961-2012 (%)
10
94
8 FT8
7 "6:T6:t
6.7 6.8
6
5
3.6

2
1.99 1,84 1.73 1.89 12.28
w.2.03. O.98. 112
1+.0.39.
0,28
04
1951-56 1956-61 1961-66 1969-74 1974-79 1980-86 1985-90 1990-92 1991-2000 1999-2005 2005-10 2010-2012*
GDP-Employment
Note : *This is the period for which comparable and authentic data are available.

Options:
(A) Informalisation of Workforce (B) Casualisation of Workforce
( Jobless Growth D) Formalisation of Workforce
Note: The following question is for the Visually Impaired
Candidates only in lieu ofQ, No. 19.
The situation under which an economy attains economic growth without
corresponding rise in employment is known as
(Fill up the blank with correct option) 1
Options:
(A) Informalisation of Workforce (B) Casualisation of Workforce
(C) Jobless Growth (D) Formalisation of Workforce
20. Read the following statements carefully :
Statement 1 : Environmnental concerns of waste generation and pollution
have become critical, due to reversal of demand and supply relationship.
Statement 2 : Environmental crisis happens, when the rate of resource
extraction isless than that of regeneration of resource.
In the light of the given statements, choose the correct option from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1is false and Statement 2 is true.
(C) Both statements 1and 2are true.
D) Both statements 1 and 2 are false.

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 21. are the people who operate their own farms /enterprises.
(Choose the correct option to fill up the blank) 1
(A) Hired Workers (B) Casual Wage Workers
(C) Regular Salaried Employees D) Self- Employed
22. Agricultural marketing is a process that involves the of agricultural
commodities. (Choose the correct option to fill up the blank) 1
(1) Privatisation (iü) Processing
(iii) Assembling (iv) Grading
Options :
(A) ) and (iü). (B) (i) and (iii)
(C) 1),(i) and (ii) DY (ü), (ii) and (iv)
23. is based on the idea that education and health are integral to
human well-being. (Choose the correct option to fill up the blank) 1
(A) Human Resource B) Human Development
(C) Human Capital (D) EconomicDevelopment
24. of agriculture refers to production of crops for sale in the open
market rather than for self consumption purpose. 1
cA) Commercialisation (B) Diversification
(C) Digitisation (D) Modernisation
25. Read the following statements carefully: 1
Statement 1: In 1978, commune lands were divided into small plots to the
individual households for cultivation.
Statemnent 2 : Under commune system, professionals were sent to work
and learn from the country side.
In the ight of the given statements, choose the correct option from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1is false and Statement 2 is true.
(9 Both statements 1 and 2 are true.
(D) Both statements 1 and 2 are false.
26. Identify, the options that emphasize the role of information and
technology. 1
) Achieving sustainable development
iü) Attainment of food security
(ii) Disseminates information regarding emerging technologies.
Options:
(A) Only (i) (B) Only (i1)
(C) (1)) and (i) D) 1), (i) and (ii)
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 27. Read the following statements: Assertion (A) and Reason R). Choose one
of the correct 1
options
Assertion (A) giventhe
: Under below
land: reforms, Indian government fixed the
minimum land size which could be owned by an individual.
Reason (R): The purpose of land ceiling was to avoid the concentration
of land
Options :
ownership in a few hands.
A) Both Asertion (A) and Reogon R) are true and Reason (R) is the
correct explanation of Assertion (A).
(B) Both Assertion (A) and Reg son (R) are true. but Reason (R) is not thne
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.

28. á) Medhya and Danish both had their own farms. Medhya invested ina
few agricultural courses, learnt modern farming techniques and
trained her labourers on best practices related to soil fertility, crop
management, pest control etc.
Whereas, Danish invested heavily in, by purchasing advanced
farming machinery, irrigation systems and high quality seeds.
Do you agree that, Danish had made investment in human capital ?
3
Give valid reason in support of your answer.
OR
social
(b) "Expenditure on preventive medicine, curative medicine and
medicine helps in building human capital and economic
development."
arguments in
Do you agree with the given statement ? Give valid
support of your answer.

?9.Briefly explain the dual pricing policy adopted by China.

schemes and policies, the
30. (a) "In the recent times through various initiatives to generate
Government of India has taken vital
employment directly / indirectly."
arguments.
Justify the statement giving valid
OR
been very helpful in supporting rural
,(by Micro credit programmes have India,"
development and improving livelihoods in valid reasons in
statement ? Give
Do you agree with the givern
support of your answer.

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31/ On the basis of the Distribution of
workforce and its given data, compare and analyse the 4
contribution
Sectoral Share to Gross Value added in India and China.
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 35
57 32 46
Total 100 100 |3100 100 100 100
Source : Human Development Report 2019: Key Indicators of Asia and
Pacific 2019.

32. Bxplain, the volume and direction of foreign trade during the British rule. 4

33, (a) "Topromote green revolution, the Indian government provided

fertilizer subsidies to the farmers.
Briefly explain any two arguments in favour of such subsidies.
As per a newS report dated, 8th Oct. 2021, the Government of
India sold its entire 100%-stake in Air India. Tata sons, the
original founder of Air India won the bid and purchased the
airline for 18,000.crore.
(1) Identify the step taken by the Government of India.
(2) State any two ways in which identified step can be
executed by the government.
OR
increase in
(b) () "After 1991, reforms in external sector led to an
foreign exchange inflows."
argument. 3
Justify the given statement with valid
period, public sector was given a
(iü) During the planning Economy."
dominant role in Indian
the Government
Justify the rationale behind this step taken by
of India.

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 Read the
Climate following
change and
text carefully :
pressing issues
sustainability
that have captured global attention.
witnessed a surge in
In recent are
of environment two
years, the world has
extreme including severe droughts,
loud
cloud bursts, floods, Tand weather events
coastlines and the alarming
melting of arctic ice and
slides, receding
Himalavan leeiers Wildfires have become more
frequent and intense.
In this Context, sustainable agriculture emerges as a crucial
solu10.
This refers to those farming practices that meet today's requirements
while preserving resources for the future generation. This means adoptin8
methods that protect the environment, reduce dependence on chemical
inputs, eficiently using water and land and ensuring socio-economic
equity for farmers.
On one hand sustainable agricultural practices are necessary, on the
other, they are often more expensive to implement compared to
conventional methods. Sustainable practices like organic farming, climate
smart technologies, modern irrigation system may seem costly upfront,
but they offer long-term beneits by improving productivity, and
environmental stewardship. Without accessible and affordable financing
options, the much needed shift to sustainable farming practices will
remaina distant dream for many.
Therefore, sustainable finance should not only promote eco-friendly
practices but also ensure that financial resources are available to the
farmers who need it.
Source : https://website.vbi.org.in/web/rbil-/speches - interview/financing
for-sustainable-agriculture (adopted and modified)
On the basis of the given text and common
nderstanding, answer the
following questions :
Development. 1
(a) Define :Sustainable
as a crucial solution to the
(b) "Sustainable Agriculture emerges
environmentalconcerns.
? Give valid reasons in
Do vou agree with the given statement
3
support of your answer.
adopted to safeguard
c) Iist. any two sustainable practices that can be
2
environment.

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