2023 Set3

A
SET-1
Series HFG1E/3 àíZ-nÌ H$moS>
Q.P. Code 58/3/1
amob Z§.
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$
Roll No. _wI-n¥ð >na Adí` {bIo§ &
Candidates must write the Q.P. Code
on the title page of the answer-book.
AW©emñÌ
ECONOMICS
:3 : 80
Time allowed : 3 hours Maximum Marks : 80
H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 31 h¢ &

àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS> H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð>
na {bI| &
H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >34 àíZ h¢ &
H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$
Adí` {bI| &
Bg àíZ-nÌ Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ & àíZ-nÌ H$m {dVaU
10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo
-nwpñVH$m na H$moB© CÎma Zht {bI|Jo &
Please check that this question paper contains 31 printed pages.
Q.P. Code given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
Please check that this question paper contains 34 questions.
Please write down the serial number of the question in the
answer-book before attempting it.
15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,
the students will read the question paper only and will not write any
answer on the answer-book during this period.
*
58/3/1 1 P.T.O.
:
:
(i) 34
(ii) :
(iii) 20
(iv) 4 I 60 80
(v) 6 II 80 100
(vi) : : 4 100 150
(vii)
IÊS> H$
g_{îQ> AW©emñÌ
1. {ZåZ{b{IV :
1: ~MV \$bZ Cn^moJ \$bZ go ì`wËnÞ (derive) {H$`m Om gH$Vm h¡ &

2 : Cn^moJ dH«$ gX¡d _yb {~ÝXþ go àmaå^ hmoZm Mm{hE &
{XE JE H$WZm| Ho$ AmbmoH$ _|, {ZåZ{b{IV _| go ghr {dH$ën H$m M`Z H$s{OE : 1
(a) H$WZ 1 gË` h¡ Am¡a H$WZ 2 AgË` h¡ &

(b) H$WZ 1 AgË` h¡ Am¡a H$WZ 2 gË` h¡ &
(c) H$WZ 1 Am¡a 2 XmoZm| gË` h¢ &
(d) H$WZ 1 Am¡a 2 XmoZm| AgË` h¢ &
58/3/1 2
General Instructions :
Read the following instructions carefully and strictly follow them :
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper contains two Sections :
Section A Macro Economics
Section B Indian Economic Development
(iii) This paper contains 20 Multiple Choice Questions Type questions of 1 mark
each.
(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks
each to be answered in 60 to 80 words.
(v) This paper contains 6 Short Answer Questions Type-II questions of 4 marks
each to be answered in 80 to 100 words.
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each
to be answered in 100 to 150 words.
(vii) Attempt all parts of a question together.
SECTION A
Macro Economics
1. Read the following statements carefully :

Statement 1 : Savings function can be derived from Consumption
function.
Statement 2 : Consumption curve must always start from the point of

origin.
In light of the given statements, choose the correct alternative from the
following : 1
(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.
58/3/1 3 P.T.O.
2. AÝ` H$maUm| Ho$ An[ad{V©V ahZo na, `{X A§Vam©
h¡, Vmo `h ___________ H$a gH$Vm h¡ &
([aº$ ñWmZ âZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1
(a) ì`mnma KmQ>o _| d¥{Õ > $

(b) ì`mnma KmQ>o _| H$_r $
(c) ì`mnma KmQ>o _| H$moB© n[adV©Z Zht >
(d) {dXoer _wÐm ^§S>ma _| H$moB© n[adV©Z Zht >
3. nhMmZ H$a| {H$, {ZåZ{b{IV _| go H$m¡Z-gm, ^maVr` [aµOd© ~¢H$ H$m EH$ H$m`© h¡ &
(ghr {dH$ën H$m M`Z H$s{OE) 1
(a) _wÐm Amny{V© {Z`§ÌH$

(b) dm{UpÁ`H$ ~¢H$m| H$mo G$U àXmVm
(c) gaH$ma H$m dm{f©H$ ~OQ> ~ZmZo dmbr _w»` EO|gr
(d) H$a|gr H$s {ZJ©VH$Vm© / OmarH$Vm© >
4. {ZåZ{b{IV H$WZm| H$mo Ü`mZnyd©H$ :
1: Xþ~B© go ñdU© Am`mV, ^maVr` ^wJVmZ g§VwbZ Ho$ Mmby ImVo Ho$ S>o{~Q> nj _|
XO© {H$`m OmEJm &
2: ^maVr` eoà ~mµOmam| go {dXoer g§ñWmJV {Zdoe (FII) H$m ~{hdm©h (outflow)
ny±Or ImVo Ho$ H«o${S>Q> nj _| XO© {H$`m OmEJm &

58/3/1 4
2. Keeping other factors constant, if the price of crude oil falls in the
international market, it may lead to ___________.
(Choose the correct alternative to fill up the blank) 1
(a) increase in trade deficit
(b) decrease in trade deficit

(c) no change in trade deficit
(d) no change in the foreign exchange reserves
3. Identify, which of the following is not a function of the Reserve Bank of

India. (Choose the correct alternative) 1
(a) Controller of money supply
(b) Credit provider to commercial banks
(c) Central agency preparing the annual budget of the Government

(d) Issuer of currency

Statement 1 : Import of gold from Dubai will be recorded on the debit
side of the current account in Balance of Payments of
India.
Statement 2 : Outflow of Foreign Institutional Investment (FII) from

Indian stock markets will be recorded on the credit side of
the capital account.
following : 1
58/3/1 5 P.T.O.
5. (i) {ZåZ{b{IV H$WZm| H$mo Ü`mZnyd©H$ :
1: ñQ>m°H$ Mam| H$mo g_` Ho$ EH$ {~ÝXþ na _mnm OmVm h¡ &
2: àdmh Ma d ñQ>m°H$ Ma EH$ g_mZ hmoVo h¢ &
AWdm
(ii) {ZåZ{b{IV _| go, àdmh Ma H$s nhMmZ H$s{OE : (ghr {dH$ën H$m M`Z H$s{OE) 1
(a) {Xëbr d A_¥Vga Ho$ _Ü` H$s Xÿar
(b) EH$ {dÚmb` H$m dm{f©H$ ì`` $
(c) 31 _mM©, 2022 H$mo lr _wHo$e H$s ~¢H$ _| O_m YZam{e $
(d) 31 {Xgå~a, 2021 H$mo lr _mo{hV Ho$ {Zdoe
6. (i) `{X EH$ AW©ì`dñWm _|, {Zdoe JwUH$ H$m _yë` 5 VWm A~MV ( )100 h¡,
Vmo < 1,400 < _________ moJr &
(a) 80 (b) 180
(c) 140 (d) 240
AWdm
(ii) {Zdoe JwUH$ H$m _yë` gX¡d __________ go __________ Ho$ _Ü` ahVm h¡ &
([aº$ ñWmZm| H$mo âZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1
(a) eyÝ` (0), AZ§V ( )
(b) BH$mB© (+ 1), AZ§V ( ) $
(c) eyÝ` (0), BH$mB© (+ 1) $
(d) G$UmË_H$ BH$mB© ( 1), BH$mB© (+ 1)
58/3/1 6
5. (i) Read the following statements carefully :
Statement 1 : Stock variables are measured at a point of time.
Statement 2 : Flow variables and stock variables are same.
In light of the given statements, choose the correct alternative from
the following : 1
OR
(ii) Identify, flow variable from the following :

(Choose the correct alternative) 1
(a) Distance between Delhi and Amritsar
(b) Annual expenditure of a school
(c) Bank balance of Mr. Mukesh as on 31st March, 2022
(d) Investments of Mr. Mohit as on 31st December, 2021
6. (i) If in an economy, the value of Investment Multiplier is 5 and

dissavings are ( )100 crore, the relevant savings at income level of
< 1,400 crore would be < ________ crore.
(a) 80 (b) 180
(c) 140 (d) 240
OR
(ii) The range of value of Investment Multiplier is always between _____

and ______. (Choose the correct alternative to fill up the blanks) 1
(a) zero (0), infinity ( )
(b) one (+ 1), infinity ( )
(c) zero (0), one (+ 1)
(d) minus one ( 1), plus one (+ 1)
58/3/1 7 P.T.O.
7. `{X Ho$ÝÐr` ~¢H$, AW©ì`dñWm _| _wÐm Amny{V© H$mo H$_ H$aZm MmhVm h¡, Vmo dh _________
H$a gH$Vm h¡ & ([aº$ ñWmZ âZo Ho$ {bE ghr {dH$ën H$m M`Z H$s{OE) 1
(i) ~¢H$ Xa _| d¥{Õ
(ii) ZH$X Ama{jV AZwnmV _| H$_r
(iii) Iwbo ~mµOma _| à{V^y{V`m| H$m {dH«$`
(iv) Iwbo ~mµOma _| à{V^y{V`m| H$m H«$`
{dH$ën :
(a) (i) d (iii) (b) (ii), (iii) d (iv)
(c) (i), (iii) d (iv) (d) (i), (ii), (iii) d (iv)
8. (H$) nhMmZ H$a| {H$, {ZåZ{b{IV _| go H$m¡Z-gm, ^maV Ho$ {bE {dXoer _wÐm H$m òmoV
h¡ & (ghr {dH$ën H$m M`Z H$s{OE) 1
(a) {dXoem| H$mo dñVwAm| d godmAm| H$m {Z`m©V
(b) {dXoem| go ^maVr` _µOXÿam| Ûmam àofU $
(c) {dXoem| go dñVwAm| d godmAm| H$m Am`mV $
(d) O_©Z Am°Q>mo_mo~mBb {Z_m©Vm Ûmam àË`j {dXoer {Zdoe (FDI)
AWdm
(I) H$m°b_ I d II _| Xr JB© _Xm| H$mo Ü`mZnyd©H$ VWm {XE JE {dH$ënm| _| go ghr
`w½_ H$m M`Z H$s{OE : 1
I II
i. ^maVr` H$ånZr Ûmam gm°âQ>doà H$m 1. {dXoer _wÐm H$s _m±J
{Z`m©V
ii. boZXoZ H$s g_m`moOZ àH¥${V 2. bm^ CÔoí`
iii. boZXoZ H$s ñdm`Îm àH¥${V > 3. µJ¡a-bm^ CÔoí`
iv. lrb§H$m H$mo Am{W©H$ g§H$Q> _| {X`m 4. {dXoer _wÐm H$s Amny{V©
J`m G$U
{dH$ën :
(a) i 1 (b) ii 2
(c) iii 3 (d) iv 4
58/3/1 8
7. If the central bank wants to reduce money supply in the economy, it may
___________. (Choose the correct alternative to fill up the blank) 1
(i) increase Bank Rate
(ii) reduce Cash Reserve Ratio
(iii) sell securities in the open market
(iv) buy securities in the open market
Alternatives :
(a) (i) and (iii) (b) (ii), (iii) and (iv)
(c) (i), (iii) and (iv) (d) (i), (ii), (iii) and (iv)
8. (A) Identify, which of the following is not a source of supply of foreign

exchange for India. (Choose the correct alternative) 1
(a) Exports of goods and services abroad
(b) Remittances by Indian workers working abroad
(c) Imports of goods and services from abroad
(d) Foreign Direct Investment (FDI) by a German automobile
manufacturer
OR
(B) Read the items given in Columns I and II carefully and choose the
correct pair of statements from the given alternatives. 1
Column I Column II
i. Export of software by an 1. Demand of foreign currency
Indian company
ii. Accommodating nature 2. Profit motive
of transactions
iii. Autonomous nature of 3. Non-Profit motive
transactions
iv. Loan forwarded to Sri 4. Supply of foreign exchange
Lanka during its
economic crisis
Alternatives :
(a) i 1 (b) ii 2
(c) iii 3 (d) iv 4
58/3/1 9 P.T.O.
9. {ZåZ{b{IV H$WZm| : A{^H$WZ (A) Am¡a H$maU (R) & ZrMo {XE JE {dH$ënm| _|
go EH$ ghr {dH$ën Mw{ZE :$ 1
(A) : àË`m{eV ~MV d àË`m{eV {Zdoe H$^r ^r EH$-Xÿgao Ho$ ~am~a Zht
hmoVo &
(R) : Am` Ho$ g§VwbZ ñVa na, hmo gH$Vm h¡ g_J« _m±J, g_J« ny{V© Ho$ ~am~a
Zht h¡ &
{dH$ën :
(a) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢ Am¡a H$maU (R), A{^H$WZ (A) H$s
ghr ì¶m»¶m H$aVm h¡ &
(b) A{^H$WZ (A) Am¡a H$maU (R) XmoZm| gË` h¢, bo{H$Z H$maU (R), A{^H$WZ (A)
H$s ghr ì¶m»¶m H$aVm h¡ &
(c) A{^H$WZ (A) gË` h¡, bo{H$Z H$maU (R) AgË` h¡ &
(d) A{^H$WZ (A) AgË` h¡, bo{H$Z H$maU (R) gË` h¡ &
go EH$ ghr {dH$ën Mw{ZE : 1$
(A) : Am¡gV Cn^moJ àd¥{Îm (APC) H$m _yë` H$^r ^r eyÝ` AWdm G$UmË_H$
Zht hmo gH$Vm h¡ &
(R) : Am¡gV Cn^moJ àd¥{Îm (APC) Am` Ho$ ñVa go ñdV§Ì hmoVr h¡ &
{dH$ën :
58/3/1 10
9. Read the following statements : Assertion (A) and Reason (R). Choose the
correct alternative from those given below. 1
Assertion (A) : Ex-ante savings and Ex-ante investments are never equal
to each other.
Reason (R) : At equilibrium level of income, aggregate demand may not

be equal to the aggregate supply.
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.
Assertion (A) : The value of Average Propensity to Consume (APC)

can never be zero or negative.
Reason (R) : Average Propensity to Consume (APC) is independent of

the level of income.
Alternatives :
58/3/1 11 P.T.O.
11. (H$) CËnmX Ho$ _yë` d _yë` d¥{Õ _| {dôX H$s{OE & 3
AWdm
(I) {ZåZ{b{IV H$WZ H$s nw{îQ> H$s{OE : 3
àË`m{eV AàMbZ Ho$ H$maU {H$gr g§n{Îm Ho$ _yë` _| H$_r, _yë`õmg hmoVm h¡ &
12. Zå` {d{Z_` Xa àUmbr Ho$ A§VJ©V {d{Z_` Xa Ho$ {ZYm©aU H$s g§jon _| {ddoMZm H$s{OE & 3
13. _mZ br{OE {H$ EH$ H$mën{ZH$ AW©ì`dñWm Ho$ ~mao _| {ZåZ{b{IV gyMZm CnbãY h¡ :
C = 100 + 0·75 Y (Ohm± C = Cn^moJ d Y = Am`)
I0 = 200 (I0 = ñdm`Îm {Zdoe)
Xr JB© gyMZm Ho$ AmYma na {ZåZ{b{IV H$s JUZm H$s{OE :
(a) Am` H$m g§VwbZ ñVa 2
(b) Am` Ho$ g§VwbZ ñVa na g_J« _m±J 1
(c) gr_m§V ~MV àd¥{Îm 1
14. (H$) {ZåZ{b{IV gyMZm H$m Ü`mZnyd©H$ AÜ``Z H$s{OE :
^maVr` [aµOd© ~¢H$ H$s _m¡{ÐH$ Zr{V g{_{V (MPC) Zo hmb hr _| aonmo Xa _| 50
AmYma A§H$m| H$s d¥{Õ H$s h¡ & dV©_mZ _| `h Xa 5·40% h¡, O~{H$ [adg© aonmo Xa
H$mo 3·35% na An[ad{V©V aIm J`m h¡ &
{ZåZ{b{IV àíZm| Ho$ CÎma Xr{OE :
(i) Cn`w©º$ JÚ _| C{ëb{IV Xmo _m¡{ÐH$ Zr{V Cnm`m| H$s àH¥${V H$s nhMmZ
H$s{OE & 1
(ii)_m¡{ÐH$ Zr{V g{_{V Ûmam aonmo Xa _| d¥{Õ Ho$ nrN>o Ho$ g§^m{dV Am{W©H$ VH©$
H$s {ddoMZm H$s{OE & 3
AWdm
(I) _mZ br{OE {H$ EH$ H$mën{ZH$ AW©ì`dñWm _| Aënmd{Y _| Ý`yZ _m±J H$s pñW{V
{dÚ_mZ h¡ &
AW©ì`dñWm na BgHo$ g§^m{dV à^mdm| H$s g§{jßV {ddoMZm H$s{OE & 4
58/3/1 12
11. (a) Differentiate between Value of Output and Value Added . 3
OR
(b) Justify the following statement :
12. Discuss briefly the determination of exchange rate under the flexible
exchange rate system. 3
13. Suppose the following information is given about a hypothetical

economy :
C = 100 + 0.75 Y (where, C = Consumption and Y = Income)
I0 = 200 (I0 = Autonomous Investment)
Calculate the following on the basis of the given information :
(a) Equilibrium Level of Income 2
(b) Aggregate Demand at Equilibrium Level of Income 1
(c) Marginal Propensity to Save 1
14. (a) Read the following information carefully :
India (RBI), recently increased the Repo Rate by 50 basis points.

The Rate stands today at 5.40%, whereas Reverse Repo Rate was
left unchanged at 3.
Answer the following questions :
(i) Identify the nature of the two monetary policy measures
mentioned in the above text. 1
(ii) Elaborate the likely economic rationale behind the increase in
Repo Rate by the Monetary Policy Committee. 3
OR
(b) Suppose an imaginary economy is facing a situation of deficient
demand in the short run time period.
Discuss briefly, the probable impacts of the same on the economy. 4
58/3/1 13 P.T.O.
15. Cn`wº$ g§»`mË_H$ CXmhaU H$m à`moJ H$aVo hþE, EH$ H$mën{ZH$ AW©ì`dñWm _|, ~¢qH$J
àUmbr H$s gmI {Z_m©U à{H«$`m H$s ì`m»`m H$s{OE & 4
16. (H$) (i) Xmo {_Ì, XrnH$ d H¥$f, hmb hr _| gaH$ma Ûmam Eoíd`© ({dbmgr) dñVwAm|
na GST Xam| _| d¥{Õ Ho$ à^md na MMm© H$a aho Wo & H¥$f H$m {dMma Wm {H$
A{YH$m§e Eoíd`© H$s dñVwAm| (O¡go {H$ {dXoer ^«_U, Am`m{VV {gJaoQ>,
Am{X) na AË`{YH$ H$a bJm`m OmZm Mm{hE O~{H$ µJar~ Am¡a _Ü`_ dJ©
go g§~§{YV X¡{ZH$ Cn^moJ H$s dñVwE± H$a-_wº$ hm| &
H¥$f gaH$mar ~OQ> Ho$ {Og CÔoí` Ho$ ~mao _| gwPmd Xo aho h¢, CgH$s nhMmZ
d ì`m»`m H$s{OE & 4
(ii) gaH$ma H$s {H$Ýht Xmo µJ¡a-H$a àm{ßV`m| Ho$ CXmhaU Xr{OE & 2
AWdm
(I) (i) hmb Ho$ {XZm| _|, ^maV gaH$ma Zo _oH$-BZ-B§{S>`m H$m`©H«$_ Ho$ A§VJ©V
ñdXoer ajm dñVwAm| Ho$ A{YJ«hU na AË`{YH$ ì`` {H$`m h¡ &
Cn`w©º$ H$WZ Ho$ AZwgma, gaH$ma Ûmam {H$E OmZo dmbo {H$Ýht Xmo ~OQ> ì``m|
H$s nhMmZ d MMm© H$s{OE & 4
(ii) gaH$mar ~OQ> Ho$ A§VJ©V amOH$mofr` KmQ>o H$m AW© ~VmBE & 2
17. {ZåZ{b{IV JÚ H$mo Ü`mZnyd©H$ :
H$mo{dS>-19 Ho$ Cnam§V ^maV _|, {ZOr A§{V_ Cn^moJ ì`` (PFCE) Ûmam _mnm J`m Kaoby d
{ZOr joÌ H$m Cn^moJ (_m¡{ÐH$ ê$n _|), < 39·7 {Q´>{b`Z (FY23, Q1) Wm Omo {H$ JV df©
Cgr Ad{Y _| < 28·4 {Q´>{b`Z Wm & df© 2021 22 (FY22) H$s Mm¡Wr {V_mhr (Q4) _|
`h ì`` < 39·2 {Q´>{b`Z Wm &
_m¡{ÐH$ GDP Ho$ à{VeV Ho$ ê$n _| {dÎmr` df© 2022 H$s nhbr {V_mhr (Q1 FY22) H$s
55·5% Ho$ _wH$m~bo PFCE 61·1% Wm & hmbm±{H$ dmñV{dH$ ê$n _| pñWa H$s_Vm| na,
H$mo{dS>-19 go EH$ df© nyd©, 2019 20 Ho$ Q1 H$s VwbZm _| PFCE _| _mÌ 9·88% H$s
d¥{Õ XO© hþB© Wr &
58/3/1 14
15. Using a suitable numerical example, explain the credit creation process
of the banking system, in a hypothetical economy. 4
16. (a) (i) Two friends, Deepak and Krish were discussing the impact of
increase in GST rates on luxury items, as recently undertaken
by the Government. Krish was of the view that most of the
luxury items (like foreign travel, imported cigarettes, etc.)
should be taxed exorbitantly, while the items related to daily
consumption of poor and middle class should be tax-free.
Identify and explain the objective of the Government budget
Krish is suggesting. 4
(ii) State any two examples of non-tax receipts of the
Government. 2
OR
(b) (i) , the Government of India has incurred a

lot of expenditure on acquisition of indigenous defence items
-in- me
Identify and discuss the two types of budget expenditures

which may by undertaken by the Government as suggested in
the above statement. 4
(ii)
Budget. 2
17. Read the following text carefully :

In India, after Covid-19 period, household and private sector
consumption, as measured by Private Final Consumption Expenditure
(PFCE), was < 39·7 trillion in nominal terms in Q1 FY23, compared with
< 28·4 trillion for the same period last year, and < 39·2 trillion in the
fourth quarter (Q4) of 2021 22 (FY22).
As a percentage of Nominal GDP, PFCE was 61·1 per cent, compared
with 55·5 per cent in Q1 FY22. However, in real terms at constant prices,
PFCE grew just 9·88 per cent, compared with Q1 of 2019 20 the year
before the Covid-19 pandemic.
58/3/1 15 P.T.O.
lr S>r.Ho$. lrdmñVd Zo ~Vm`m {H$, Kaoby _m±J _| gwYma PFCE d GFCF (gH$b ñWm`r
ny±Or {Z_m©U) H$s d¥{Õ Xa (JV df© H$s g§JV {V_mhr H$s VwbZm _|) go n[ab{jV hmoVm h¡ &
GFCF {dÎmr` df© 2022 H$s nhbr {V_mhr (Q1 FY22) Ho$ < 14·4 {Q´>{b`Z H$s VwbZm _|
{dÎmr` df© 2023 H$s nhbr {V_mhr (Q1 FY23) _|$ < 19 {Q´>{b`Z na nhþ±M J`m h¡ &
hmbm±{H$ `h {dÎmr` df© 2022 H$s Mm¡Wr {V_mhr (Q4 FY22) Ho$$ < 20·2 {Q´>{b`Z H$s
VwbZm _| H$_ h¡ &
GDP \$J _|, {dÎm g{Md Q>r.dr. gmo_ZmWZ Zo H$hm {H$
Q1 _| GFCF JV df© Ho$ Q4 Ho$ ~{ZñnV gm_mÝ`V:
H$_ hmoVr Wr &
{XE JE JÚ d gm_mÝ` g_P Ho$ AmYma na {ZåZ{b{IV àíZm| Ho$ CÎma Xr{OE :
(H$) dmñV{dH$ d _m¡{ÐH$ GDP Ho$ à{VeV Ho$ ê$n _| PFCE Ho$ éPmZm| _| n[adV©Z H$s
VwbZm d {díbofU H$s{OE & 4
(I) ~mµOma _yë` na gH$b Kaoby CËnmX H$m {ZYm©aU H$aZo _| {ZOr A§{V_ Cn^moJ ì``
EH$ _hÎdnyU© H$maH$ h¡ & {XE JE H$WZ H$s nw{îQ> H$s{OE & 2
IÊS> I
^maVr` Am{W©H$ {dH$mg
(A) : ñdV§ÌVm Cnam§V, {ÛVr`H$ joÌ _| ^mar {Zdoe H$s Amdí`H$Vm Ho$ H$maU
gmd©O{ZH$ joÌ H$mo à_wI ^y{_H$m Xr JB© Wr &
(R) :
{dH$ën :
58/3/1 16
and Gross Fixed Capital Formation (GFCF) over the corresponding
< 19 trillion in Q1 FY23, compared with < 14·4 trillion in Q1 FY22.

However, it was slightly lower than < 20·2 trillion in Q4 FY22.
In the media briefing after the GDP numbers, Finance Secretary
T.V. Somanathan said this trend was expected as GFCF in present Q1
was usually lower than the previous year
On the basis of the given text and common understanding, answer the
following questions :
(a) Compare and analyse the trends of change in PFCE as a

percentage of GDP, both in real and nominal terms. 4
(b) Private Final Consumption Expenditure is an important factor
given statement. 2
SECTION B
Indian Economic Development
Assertion (A) : Post independence, public sector was given a prominent
role, due to requirement of huge investments in the
secondary sector.
Reason (R) : Industrial sector is the backbone of any economy.
Alternatives :
58/3/1 17 P.T.O.
19. (H$) {ZåZ{b{IV {dH$ënm| _| go, NITI Am`moJ _| Ho$ ghr nyU© ê$n H$s nhMmZ
H$s{OE : 1
(a) National Institution for Tribal India
(b) National Institution for Technical India
(c) National Institution for Transforming India
(d) National Institution for Training India
AWdm
(I) _________ AW©ì`dñWm _|, g§gmYZm| H$m ñdm{_Ëd d g§MmbZ, gmd©O{ZH$ d {ZOr
XmoZm| joÌm| Ûmam {H$`m OmVm h¡ &
(a) g_mOdmXr (b) ny±OrdmXr $
(c) OZVm§{ÌH$ (d) {_{lV
20. (H$) {ZåZ{b{IV H$WZ Ho$ g§X^© _| ghr {dH$ën H$s nhMmZ H$s{OE : 1
1966 76 Ho$ _Ü`, _mAmo Zo Bg Am§XmobZ H$m Amaå^ {H$`m Wm, {OgHo$ A§VJ©V
N>mÌm| d noeodam| H$mo H$m`© H$aZo Ho$ {bE MrZ Ho$ J«m_rU BbmH$m| _| àM{bV
dmñV{dH$ OrdZ pñW{V`m| go grIZo Ho$ {bE H$hm J`m Wm &
(a) H$å`yZ àUmbr
(b) J«oQ> brn \$m°adS>©
(c) Iwbo Ûma H$s Zr{V
(d) _hmZ gd©hmam gm§ñH¥${VH$ H«$m§{V
AWdm
(I) {ZåZ{b{IV H$WZm| H$mo Ü`mZnyd©H$ :
1 : H¥${f joÌ _|, H$å`yZm| H$s ñWmnZm H$s JB©, Ohm± ^y{_ OmoVm| H$m ñdm{_Ëd
ì`{º$JV J¥hñWm| H$mo Am~§{Q>V {H$`m J`m Wm &
2 : {deof Am{W©H$ joÌ (SEZ), {dXoer {Zdoe d àm¡Úmo{JH$s H$mo AmH${f©V
H$aZo Ho$ {bE ñWm{nV {H$E JE Wo &
58/3/1 18
19. (A) From the following alternatives, identify the correct full form of
1
(a) National Institution for Tribal India
OR
(B) In a __________ economy, resources are owned and operated by both
public and private sectors.
(a) Socialist (b) Capitalist
(c) Democratic (d) Mixed
20. (A) Identify the correct alternative with reference to the following
statement : 1
76, Mao introduced this movement under which
professionals and students were asked to work and learn from real
life situations prevailing in the countrys
(a) Commune System
(b) Great Leap Forward
(c) Open Door Policy
(d) Great Proletarian Cultural Revolution
OR
(B) Read the following statements carefully :
Statement 1 : In the agricultural sector, communes were
established, where land holdings were allocated to
individual households for ownership.
Statement 2 : Special Economic Zones (SEZs) were established to
attract foreign investments and technology.
In light of the given statements, choose the correct alternative from
the following : 1
58/3/1 19 P.T.O.
21. (H$) A{VbKw gmI H$m`©H«$_ J«m_rU AW©ì`dñWm Ho$ g_J« {dH$mg H$mo gw{ZpíMV H$aZo _|
________ &
(i) {dÎmr` ghm`Vm àXmZ H$aVo h¢
(ii) _{hbm ge{º$H$aU àXÎm H$aVo h¢
(iii) Am¡nMm[aH$ gmI (G$U) àUmbr H$s nhþ±M _| d¥{Õ H$aVo h¢
{dH$ën :
(a) Ho$db (i) d (ii)
(b) Ho$db (ii) d (iii)
(c) Ho$db (i) d (iii)
(d) (i), (ii) d (iii)
AWdm
(I) _________
_rU {dH$mg Ho$ {d{^Þ KQ>H$m| H$mo CËnmXH$ G$Um| H$s Amoa
CÝ_wI H$a {d{dYVm àXmZ H$s Wr &
(a) ídoV
(b) aOV $
(c) Zrbr
(d) h[aV
22. nm{H$ñVmZ _| Am{W©H$ _§Xr d {ZY©ZVm Ho$ nwZ: AmJ_Z Ho$ H$B© H$maU ~VmE Om gH$Vo
h¢ &
nhMm{ZE {H$, {ZåZ{b{IV _| go H$m¡Z-gm CZ_| go EH$ hmo gH$Vm & 1
(i)
(ii) pñWa ì`mnH$ (g_{îQ>) Am{W©H$ g§Ho$VH$
(iii) ApñWa H¥${f {dH$mg
{dH$ën :
(a) (i), (ii) d (iii)
(b) (ii) d (iii)
(c) (i) d (iii)
(d) Ho$db (ii)
58/3/1 20
21. (A) Micro credit programmes play a vital role in ensuring an overall
development of the rural economy as they ____________.
(i) provide financial support
(ii) lead to women empowerment
(iii) enhance the reach of formal credit system
Alternatives :
(a) Only (i) and (ii)
(b) Only (ii) and (iii)
(c) Only (i) and (iii)
(d) (i), (ii) and (iii)
OR
(B) ____________ revolution was the harbinger of major changes in the
credit system as it led to diversification of the portfolio of rural
credit towards production-oriented lending.
(a) White
(b) Silver
(c) Blue
(d) Green
22. Multiple reasons for economic slowdown and re-emergence of poverty in

Pakistan may be enumerated
Identify which of the following might not be one of them. 1
(i) Rising dependence on foreign loans
(ii) Stable macroeconomic indicators
(iii) Unstable agricultural growth
Alternatives :
(a) (i), (ii) and (iii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) Only (ii)
58/3/1 21 P.T.O.
23. nhMm{ZE {H$, {ZåZ{b{IV _| go H$m¡Z-gm _mZd ny±Or {Z_m©U d Am{W©H$ {dH$mg Ho$ _Ü`
àË`j g§~§Y ñWm{nV H$aVm h¡ & 1
(a) EH$ A{e{jV ì`{º$ H$s VwbZm _| EH$ {e{jV ì`{º$ H$s amoµOJma j_Vm A{YH$
hmoVr h¡ &
(b) Zm¡H$ar na à{ejU EH$ _µOXÿa Ho$ H$m¡eb _| H$_r H$aoJm &
(c) ñdñW H$m`©~b AW©ì`dñWm Ho$ {bE daXmZ h¡ &
(d) {S>{OQ>b gyMZm dmñV{dH$ g_`md{Y _| {ZU©` boZo _| ghm`H$ hmoVr h¡ &
24. : A{^H$WZ (A) Am¡a H$maU (R) & ZrMo {XE JE {dH$ënm| _| go
EH$ ghr {dH$ën Mw{ZE : 1
(A) : {ZåZ ~mb _¥Ë`w Xa b¡§{JH$ g_mZVm H$m EH$ ~ohVa g§Ho$VH$ h¡ &
(R) : ^maV, nm{H$ñVmZ d MrZ _| ~mbH$ (male child) Ho$ {bE àmW{_H$Vm
{dÚ_mZ h¡ &
{dH$ën :
58/3/1 22
23. Identify which of the following does not reflect a direct relationship
between human capital formation and economic growth. 1
(a) Employability of an educated person is higher than that of an
uneducated person.
(b) On-the-job training will reduce the skills of labour.
(c) Healthy workforce is a boon to the economy.
(d) Digital information helps in taking real time decisions.
Assertion (A) : Lower child mortality rate is a better indicator of gender

equality.
Reason (R) : Preference for a male child exists in India, Pakistan and
China.
Alternatives :

58/3/1 23 P.T.O.
25. (H$) _________ w moamoH$m~©Z (CFC) `m¡{JH$m| d AÝ` AmoµOmoZ j`H$mar
A
agm`Zm| Ho$ Cn`moJ na à{V~§Y bJmZo Ho$ g§H$ën H$mo AnZm`m &
(a)
(b) no[ag àmoQ>moH$m°b $
(c) _m°pÝQ´>`b àmoQ>moH$m°b $
(d) ~«§Q>b¢S> Am`moJ H$s [anmoQ>©
AWdm
(I) ha_Z S>obr (n`m©daUr` AW©emñÌr) Ho$ AZwgma, {ZåZ{b{IV _| go H$m¡Z-gm gVV
{dH$mg àmßV H$aZo H$s {Xem _| EH$ Amdí`H$ H$X_ h¡ ? 1
(a) _mZd OZg§»`m H$mo n`m©daU H$s YmaU j_Vm VH$ gr{_V H$aZm
(b) AmJV A{ZnwU VH$ZrH$s àJ{V
(c) ZdrH$aUr` g§gmYZm| Ho$ {ZîH$f©U H$s Xa nwZO©ZZ H$s Xa go A{YH$ Z hmo
(d) àXÿfU Ho$ H$maU CËnÞ Aj_VmAm| _| gwYma
(A) : gaH$ma {deof {ZY©ZVm CÝ_ybZ H$m`©H«$_m| Ho$ _mÜ`_ go ~oamµoOJmar H$mo H$_
H$aZo H$m à`mg H$a gH$Vr h¡ &
(R) : ò {ZY©ZVm CÝ_ybZ H$m`©H«$_ àË`j `m namoj ê$n go amoµOJma g¥OZ H$aVo
h¢ &
{dH$ën :
58/3/1 24
25. (A) __________ adopted the resolution to ban the use of
Chlorofluorocarbon (CFC) compounds along with other ozone
depleting chemicals.
(a) Kyoto Protocol
(b) Paris Protocol
(c) Montreal Protocol
(d) Brundtland Commission Report
OR
(B) According to Herman Daly (an environmental economist), which of

the following is not an essential step towards achieving sustainable
development ? 1
(a) Limiting human population to carrying capacity of the
environment
(b) Input inefficient technological progress
(c) Rate of extraction of renewable resources should not exceed
rate of regeneration
(d) Correction of inefficiencies arising from pollution
Assertion (A) : Government can try to reduce unemployment through
special poverty removal programmes.
Reason (R) : Such poverty removal programmes directly or indirectly
lead to employment generation.
Alternatives :
58/3/1 25 P.T.O.
27. {ZåZ{b{IV H$WZm| H$mo Ü`mZnyd©H$ :
1 : MrZr A{YH$m[a`m| Ûmam OZg§»`m {Z`§ÌU H$aZo _| EH$b g§VmZ Zr{V H$m
Cn`moJ AË`§V à^mdr T>§J go {H$`m J`m Wm &
2 : Am{W©H$ {dÛmZm| Ho$ AZwgma, EH$b g§VmZ Zr{V Ûmam qbJ AZwnmV (àËòH$ EH$
hOma nwéfm| _| _{hbmAm| H$m AZwnmV) _| {JamdQ> Am`r Wr &
28. (H$) l{_H$-OZg§»`m AZwnmV H$mo n[a^m{fV H$s{OE VWm BgH$m _hÎd ~VmBE & 3
AWdm
(I) _mZd ny±Or d _mZd {dH$mg _| {dôX H$s{OE & 3
29. ì`m»`m H$s{OE {H$ {H$g àH$ma EH$ g§a{MV H¥${f {dnUZ àUmbr {H$gmZm| H$s Am` d¥{Õ
_| ghm`H$ hmoVr h¡ & 3
30. {ZåZ{b{IV Vm{bH$m H$mo Ü`mZnyd©H$ :

1980 2015
1980 90 2011 2015
^maV 3·1 7·4 6·9 2·3 5 8·4

MrZ 5·9 10·8 13·5 4·1 8·1 8·4
nm{H$ñVmZ 4 7·7 6·8 2·7 3·4 4·4
{XE JE dfm] Ho$ Xm¡amZ, ^maV d MrZ _| VrZm| joÌm| _| CËnmXZ d¥{Õ H$s àd¥{Îm (trend) H$m
{díbofU H$s{OE & 4
31. (H$) H$B© AW©emñÌr `h _mZVo h¢ {H$ 1991 H$s Am{W©H$ gwYma à{H«$`m Zo H¥${f joÌ na
à{VHy$b à^md S>mbm h¡ & ? AnZo CÎma Ho$
nj _| _mÝ` VH©$ àñVwV H$s{OE & 4
AWdm
(I) (i) {~«{Q>e emgZ H$mb H$s Am¡Úmo{JH$ Zr{V H$s {H$Ýht Xmo H${_`m| H$s ì`m»`m
H$s{OE & 2
(ii) ^maVr` n§Mdfu` `moOZm à{H«$`m Ho$ Mma CÔoí`m| H$m Zm_ {b{IE & 2
58/3/1 26
Statement 1 : One-child policy was very effectively used in controlling
the population by the Chinese authorities.
Statement 2 : One-child policy, according to scholars, led to a decline in
gender ratio (the proportion of females per 1000 males).
following : 1
28. (a) Define worker-population ratio and give its significance. 3
OR
(b) Di 3
29. Elaborate how a well-
the farmers to increase their income. 3
30. Read the following schedule carefully :
Trends in Output Growth in Different Sectors, 1980 2015
Country 1980 90 2011 2015
Agriculture Industry Service Agriculture Industry Service
India 3·1 7·4 6·9 2·3 5 8·4
China 5·9 10·8 13·5 4·1 8·1 8·4
Pakistan 4 7·7 6·8 2·7 3·4 4·4
Analyse the output growth trend in the three sectors over the given years
between India and China. 4
31. (a)
with the given statement ? Quote valid arguments in favour of your

answer. 4
OR
(b) (i) Explain any two shortfalls of the industrial policy under the
British rule. 2
(ii) Quote the four goals of the five year plans process of India. 2
58/3/1 27 P.T.O.
32. _mÝ` VH$m] Ûmam CëboI H$s{OE {H$ {ZåZ{b{IV H$WZ gË` h¢ AWdm AgË` :
(H$) J¥{hUr Ho$ Vm¡a na _{hbmAm| H$s Am{W©H$ ^mJrXmar H$mo gH$b Kaoby CËnmX _|
boIm§{H$V Zht {H$`m OmVm h¡ & 2
(I) ^maVr` AW©ì`dñWm Zo hmb Ho$ dfm] _| AZm¡nMm[aH$ joÌ go Am¡nMm[aH$ joÌ _|
CËH¥$îQ> n[adV©Z {H$`m h¡ & 2
33. (H$) (i) EH$ amîQ´> Ho$ {dH$mg _| {ejm H$s ^y{_H$m H$s ì`m»`m H$s{OE & 4
(ii) ^maV O¡gr AW©ì`dñWm _| J«m_rU ~¢qH$J Ho$ _hÎd H$m CëboI H$s{OE & 2
AWdm
(I) (i) ? 1
(ii) {ejm Am`moJ (1964 66) H$s {H$gr EH$ {g\$m[ae H$m CëboI VWm
{ddoMZm H$s{OE & 2
(iii) {XE JE {MÌ Ho$ AmbmoH$ _|, YmaUr` {dH$mg gw{ZpíMV H$aZo Ho$ {bE {H$gr
EH$ aUZr{V H$s nhMmZ d ì`m»`m H$s{OE & 3
:
33 (iii) :
n`m©daU Ho$ {H$gr EH$ H$m`© H$s ì`m»`m H$s{OE & 3
58/3/1 28
32. State whether the following statements are true/false, with valid
arguments :
(a) Economic participation of women as homemakers is not accounted
for in the Gross Domestic Product. 2
(b) Indian economy has shown excellent shift from informal sector to
formal sector in the recent past. 2
33. (a) (i) Explain the role of education in the economic development of
the nation. 4
(ii) State the importance of rural banking in an economy like
India. 2
OR
(b) (i) Who is a casual wage labourer ? 1
(ii) State and discuss any one recommendation of the Education
Commission (1964 66). 2
(iii) In the light of the given image, identify and explain any one
strategy to ensure sustainable development. 3
Note : The following question is for the Visually Impaired

Candidates only in lieu of Q. No. 33 (b) (iii) :
Explain any one function of the environment. 3
58/3/1 29 P.T.O.
34. {ZåZ{b{IV JÚ H$mo Ü`mZnyd©H$ :
ñdV§ÌVm Ho$ gmW, ^maV Zo Am¡Úmo{JH$ AmË_{Z^©aVm Ho$ AnZo CÔoí` H$mo àmßV H$aZo Ho$ {bE
~§X AW©ì`dñWm _m°S>b H$m M`Z {H$`m Wm & n[aUm_ñdê$n, Am¡Úmo{JH$ T>m±Mm AË`§V
_hÎdnyU© ~Z J`m Wm & ñdV§ÌVm Cnam§V, Am¡Úmo{JH$ {dH$mg àW_ Xmo XeH$m| _| ~hþV Vrd«
Wm, ImgVm¡a na Xÿgar d Vrgar `moOZm Ad{Y _| & {ÛVr` `moOZm Zo Xoe _| Am¡Úmo{JH$
H«$m§{V H$m CX²J_ {H$`m Wm & Bg Ad{Y _| Vrd« Am¡Úmo{JH$ {dH$mg Xa Ho$ n[ab{jV hmoZo Ho$
_w»` H$maU Wo :
(i) Am{W©H$ Zr{V`m| _| Am¡ÚmoJrH$aU na ~b &
(ii) Am¡Úmo{JH$ Zr{V d `moOZm _| Am¡Úmo{JH$ {dH$mg H$mo _w»` CÔoí` ~ZmZm &
(iii) Am¡Úmo{JH$ joÌ _| j_Vm {Z_m©U Ho$ g_W©Z Ho$ {bE ^mar {Zdoe H$aZm &
(iv) g_mO Ho$ AnojmH¥$V ~ohVa dJ© VWm ehar Cn^moº$mAm| H$s Amoa go {d{^Þ àH$ma Ho$
ZE CËnmXm| H$s _m±J _| d¥{Õ &
(v) Kaoby ~MV d {dXoem| go àmßV g§gmYZm| Ûmam g_{W©V Am{W©H$ {dñVma H$s J{V &
(H$) ^maV H$s {ÛVr` n§Mdfu` `moOZm H$s g_`md{Y H$m CëboI H$s{OE & 1
(I) ^maV H$s {ÛVr` n§Mdfu` `moOZm H$m OZH$ {H$go H$hm OmVm h¡ ? 1
(J) {ÛVr` d V¥Vr` n§Mdfu` `moOZmAm| Ho$ A§VJ©V ^maV H$s Vrd« Am¡Úmo{JH$ {dH$mg
J{V Ho$ {H$Ýht Xmo H$maUm| H$s g§{jßV MMm© H$s{OE & 4
58/3/1 30
34. Read the following text carefully :
With independence, India chose the closed economy model in pursuit of
its objective of industrial self-sufficiency. As a result, industrial structure
has become considerably important. In the post-independence era, the
industrial growth was rapid during the first two decades, especially
during the Second and Third Plan period. The Second Plan introduced
Industrial R
industrial growth witnessed during this period were due to :
(i) Emphasis on industrialisation in economic policies.
(ii) Making industrial growth the main objective in the industrial
policy and planning.
(iii) Huge investments being made to support capacity creation in the
industrial sector.
(iv) Growing demands for a variety of new products on the part of the
urban consumers and the relatively better-off sections of the
society.
(v) Pace of economic expansion supported by domestic savings and
inflow of resources from abroad.
On the basis of the given text and common understanding, answer the
following questions :
(a) State the time period of the Second Five Year Plan of India. 1
(b) Who is considered as the Father of the Second Five Year Plan of
India ? 1
(c) Discuss briefly any two reasons behind the industrial growth
during the Second and Third Five Year Plans of India. 4
58/3/1 31 P.T.O.
Marking Scheme
Strictly Confidential
(For Internal and Restricted use only)
Senior School Certificate Examination,2023
ECONOMICS (SUBJECT CODE – 030)
(PAPER CODE – 58/3/1)
General Instructions: -
1 You are aware that evaluation is the most important process in the actual and correct assessment of
the candidates. A small mistake in evaluation may lead to serious problems which may affect the
future of the candidates, education system and teaching profession. To avoid mistakes, it is
requested that before starting evaluation, you must read and understand the spot evaluation
guidelines carefully.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of the
examinations conducted, Evaluation done and several other aspects. Its’ leakage to public in
any manner could lead to derailment of the examination system and affect the life and future
of millions of candidates. Sharing this policy/document to anyone, publishing in any
magazine and printing in News Paper/Website etc may invite action under various rules of
the Board and IPC.”
3 Evaluation is to be done as per instructions provided in the Marking Scheme. It should not be done
according to one’s own interpretation or any other consideration. Marking Scheme should be
strictly adhered to and religiously followed. However, while evaluating, answers which are
based on latest information or knowledge and/or are innovative, they may be assessed for
their correctness otherwise and due marks be awarded to them. In class-X, while evaluating
two competency-based questions, please try to understand given answer and even if reply is
not from marking scheme but correct competency is enumerated by the candidate, due
marks should be awarded.
4 The Marking scheme carries only suggested value points for the answers
These are in the nature of Guidelines only and do not constitute the complete answer. The students
can have their own expression and if the expression is correct, the due marks should be awarded
accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each evaluator on
the first day, to ensure that evaluation has been carried out as per the instructions given in the
Marking Scheme. If there is any variation, the same should be zero after delibration and
discussion. The remaining answer books meant for evaluation shall be given only after ensuring
that there is no significant variation in the marking of individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X” be marked.
Evaluators will not put right (✓)while evaluating which gives an impression that answer is correct
and no marks are awarded. This is most common mistake which evaluators are committing.
7 If a question has parts, please award marks on the right-hand side for each part. Marks awarded for
different parts of the question should then be totaled up and written in the left-hand margin and
encircled. This may be followed strictly.
8 If a question does not have any parts, marks must be awarded in the left-hand margin and
encircled. This may also be followed strictly.
XII_030_58/3/1_Economics_2023 # Page-1
9 If a student has attempted an extra question, answer of the question deserving more marks should
be retained and the other answer scored out with a note “Extra Question”.
10 No marks to be deducted for the cumulative effect of an error. It should be penalized only once.
11 A full scale of marks 80 (example 0 to 80/70/60/50/40/30 marks as given in Question Paper) has to
be used. Please do not hesitate to award full marks if the answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8 hours every
day and evaluate 20 answer books per day in main subjects and 25 answer books per day in other
subjects (Details are given in Spot Guidelines).
13 Ensure that you do not make the following common types of errors committed by the Examiner in
the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book to the title page.
● Wrong question wise totaling on the title page.
● Wrong totaling of marks of the two columns on the title page.
● Wrong grand total.
● Marks in words and figures not tallying/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick mark is correctly
and clearly indicated. It should merely be a line. Same is with the X for incorrect answer.)
Half or a part of answer marked correct and the rest as wrong, but no marks awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it should be
marked as cross (X) and awarded zero (0)Marks.
15 Any un assessed portion, non-carrying over of marks to the title page, or totaling error detected by
the candidate shall damage the prestige of all the personnel engaged in the evaluation work as also
of the Board. Hence, in order to uphold the prestige of all concerned, it is again reiterated that the
instructions be followed meticulously and judiciously.
16 The Examiners should acquaint themselves with the guidelines given in the “Guidelines for spot
Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried over to the title
page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on payment of the
prescribed processing fee. All Examiners/Additional Head Examiners/Head Examiners are once
again reminded that they must ensure that evaluation is carried out strictly as per value points for
each answer as given in the Marking Scheme.
MARKING SCHEME
Senior Secondary School Examination 2023
ECONOMICS (Subject Code–030)
[Paper Code: 58/3/1]
Maximum Marks: 80
Q. No. EXPECTED ANSWER / VALUE POINTS Marks
SECTION – A
MACRO ECONOMICS
1. Read the following statements carefully:
Statement 1: Savings function can be derived from Consumption function.
Statement 2: Consumption curve must always start from the point of origin.
In light of the given statements, choose the correct alternative from the following:

(c) Both Statements1and 2 are true.
(d) Both Statements1and 2 are false.
Ans. (a) Statement 1 is true and Statement 2 is false. 1
2. Keeping other factors constant, if the price of crude oil falls in th e international
market, it may lead to_____________.
(Choose the correct alternative to fill up the blank)
(a) increase in trade deficit
(b) decrease in trade deficit
(c) no change in trade deficit
(d) no change in the foreign exchange reserves
Ans. (b) decrease in trade deficit 1
3. Identify, which of the following is not a function of the Reserve Bank of India.
(Choose the correct alternative)
(a) Controller of money supply
(b) Credit provider to commercial banks
(c) Central agency preparing the annual budget of the Government
(d) Issuer of currency
Ans. (c) Central agency preparing the annual budget of the Government 1
Statement 1: Import of gold from Dubai will be recorded on the debit side of the
current account in Balance of Payments of India.
Statement 2: Outflow of Foreign Institutional Investment (FII) from Indian
stock markets will be recorded on the credit side of the capital account.
Ans. (a) Statement 1 is true and Statement 2 is false.
1
(i) Statement 1: Stock variables are measured at a point of time.
Statement 2: Flow variables and stock variables are same.
Ans. (a) Statement 1 is true and Statement 2 is false. 1
OR
(ii) Identify, flow variable from the following: (Choose the correct alternative)
(a) Distance between Delhi and Amritsar
(b) Annual expenditure of a school
(c) Bank balance of Mr. Mukesh as on 31st March, 2022
(d) Investments of Mr. Mohit as on 31st December, 2021
Ans. (b) Annual expenditure of a school 1
6. If in an economy, the value of Investment Multiplier is 5 and dissavings (-)100 crore, the
(i) relevant savings at income level of 1,400 crore would be ____ crore.
(a) 80 (b)180
(c) 140 (d) 240
Ans. (b) 180 1
OR
(ii) The range of value of Investment Multiplier is always between _____ and _______
(Choose the correct alternative to fill up the blanks)
(a) zero (0), infinity (∞)
(b) one (+ 1), infinity (∞)
(c) zero (0), one (+ 1)
(d) minus one (-1), plus one (+ 1)
Ans. (b) one (+ 1), infinity (∞) 1
7. If the central bank wants to reduce money supply in the economy, it may ____.
(a) increase Bank Rate
(b) reduce Cash Reserve Ratio
(c) sell securities in the open market
(d) buy securities in the open market
Alternatives:
(a) (i) and (iii) (b) (ii), (iii) and (iv)
(c) (i), (iii) and (iv) (d) (i), (ii), (iii) and (iv)
Ans. (a) (i) and (iii) 1
8. Identify, which of the following is not a source of supply of foreign exchange
(A) for India. (Choose the correct alternative)
(a) Exports of goods and services abroad
(b) Remittances by Indian workers working abroad
(c) Imports of goods and services from abroad
(d) Foreign Direct Investment (FDI) by a German automobile manufacturer
Ans. (c) Imports of goods and services from abroad 1
OR
(B) Read the items given in Columns I and II carefully and choose the correct pair
of statements from the given alternatives.
Column I Column II
i. Export of software by an Indian company 1. Demand of foreign currency
ii. Accommodating nature of transactions 2. Profit motive
iii. Autonomous nature of transactions 3. Non-profit motive
iv. Loan forwarded to Sri Lanka during its 4. Supply of foreign exchange
economic crisis
Alternatives:
(a) i- 1 (b) ii -2
(c) iii – 3 (d) iv - 4
Ans. One mark to be allotted to all the candidates 1
9. Read the following statements: Assertion (A) and Reason (R). Choose the correct
alternative from those given below.
Assertion (A): Ex-ante savings and Ex-ante investments are never equal to each
other.
Reason (R): At equilibrium level of income, aggregate demand may not be equal
to the aggregate supply.
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
Ans. One mark to be allotted to all the candidates 1
Assertion (A): The value of Average Propensity to Consume (APC) can never be zero or
negative.
Reason (R): Average Propensity to Consume (APC) is independent of the level of income.
Alternatives:
(d) Assertion (A) is false, but Reason (R) is true
Ans. (c) Assertion (A) is true, but Reason (R) is false.
1
11. Differentiate between ‘Value of Output' and 'Value Added’.
(a) Ans. Value of output refers to the total money value of goods and services produced
during a given period of time. 1½
Value of output = (Number of units produced) X (Price per unit)
Whereas;
Value Added refers to the excess of ‘Value of Output’ over the ‘Value of Intermediate 1½
Consumption’.
Value Added = Value of Output – Value of Intermediate Consumption
OR
(b) Justify the following statement:
"Depreciation is a fall in the value of an asset due to expected obsolescence."
Ans. Yes. Depreciation is the continuous fall in the value of an asset due to expected
obsolescence. Value of fixed assets may fall owing to change in technology over a 3
period of time.
(To be marked as a whole)
3
12. Discuss briefly the determination of exchange rate under the flexible exchange
rate system.
Ans. Equilibrium rate of exchange is established at a point where the quantity
demanded and quantity supplied of foreign exchange are equal. In the foreign 3
exchange market, if disequilibrium occurs, it may lead to a situation of excess
demand or excess supply.
The market mechanism will drive the exchange rate back to the equilibrium level.
This implies that the free market forces of demand and supply will operate in such a
manner that the equilibrium rate of exchange is automatically restored.
(To be marked as a whole, diagram not required)
13. Suppose the following information is given about a hypothetical economy:
C = 100 +0.75 Y (where, C = Consumption and Y = Income)
Io=200 (Io = Autonomous Investment)
Calculate the following on the basis of the given information:
(a) Equilibrium Level of Income
(b) Aggregate Demand at Equilibrium Level of Income
(c) Marginal Propensity to Save
Ans.
Given, C = 100 + 0.75Y; Io = 200
(a) We know that;
At equilibrium level of income
Y = C+I ½
Y = (100 + 0.75Y) + 200 ½
0.25Y = 300 ½
Y = 1,200 ½
(b) At the Equilibrium level of income

AD = Y ½
⸫ AD = 1,200 ½
(c) MPS = 1 – MPC ½

MPS = 1 – 0.75 = 0.25 ½
(Any other valid method to be allotted marks)
4
14. Read the following information carefully:
(a)
"The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI),
recently increased the Repo Rate by 50 basis points. The Rate stands today at
5.40%, whereas Reverse Repo Rate was left unchanged at 3.35%."
Answer the following questions:
(i) Identify the nature of the two monetary policy measures mentioned in the above
text.
Ans. The two monetary policy measures mentioned in the above text are of 1
quantitative nature.
(ii) Elaborate the likely economic rationale behind the increase in Repo Rate by
the Monetary Policy Committee.
Ans. An increase in the repo rate will force the commercial banks to increase the
lending rates, which may make borrowing costlier to the general public. It may 3
discourage general public from borrowing funds. As a result, Aggregate Demand in
the economy may decrease, thereby controlling the inflationary pressures in the
economy.
OR
(b) Suppose an imaginary economy is facing a situation of deficient demand in the
short run time period.
Discuss briefly, the probable impacts of the same on the economy.
Ans. Deficient Demand may have an adverse impact on output, employment and
income level.
As Aggregate Demand is less than Aggregate Supply at full employment level of 4
income, this may lead to unintended accumulation of inventories. To restore
desired/intended level of inventories, producers may contract production which in
turn may reduce the employment, output, and income level in the economy. Lack of
demand for goods and services may also lead to a fall in the general price level in the
economy. (To be marked as a whole)
4
15. Using a suitable numerical example, explain the credit creation process of the
banking system, in a hypothetical economy.
Ans. The process of money creation is based on the assumptions that:
• entire banking system is a single unit.
• all transactions are routed through the bank only.
When a commercial bank receives initial/primary deposits (say ₹ 1,000), as per the
requirement of the Central Bank, it has to maintain some reserves. The remaining
amount is made available for loans. The lent sum of money is received back in the
next round of deposits as secondary deposits. This process of deposit, reserve and
lending continues till initial deposits become equal to the sum total of reserves.
Round Deposits Loans Reserves (20%)
1 1000 800 200
2 800 640 160
3 640 512 128
… … … …
… … … … 4
Total 5000 4000 1000
𝟏
Total deposit creation = Initial deposits X 𝑹𝒆𝒔𝒆𝒓𝒗𝒆 𝑹𝒂𝒕𝒊𝒐
𝟏
= 1000 x 𝟎.𝟐
= ₹ 5,000
Hence, total deposits of ₹ 5000 are created. (To be marked as whole)
(Any other valid explanation to be allotted marks)
16. (a) Two friends, Deepak and Krish were discussing the impact of increase in GST
(i) rates on luxury items, as recently undertaken by the Government. Krish was of the
view that most of the luxury items (like foreign travel, imported cigarettes, etc.)
should be taxed exorbitantly, while the items related to daily consumption of poor
and middle class should be tax-free.
Identify and explain the objective of the Government budget Krish is suggesting.
Ans. Krish is suggesting the objective of ‘Re-distribution of income’ to reduce income
inequalities in the economy. 1
To ensure equitable distribution of income, the government may impose higher taxes
on luxury items. This will reduce the purchasing power in the hands of rich.
On the other hand, lower/no taxes may be imposed on commodities purchased by
poorer section of society. They may also be provided with subsidies on the essential 3
commodities. This may increase their disposable income.
These steps may promote economic welfare through re-distribution of income in the
economy.
(ii) State any two examples of non-tax receipts of the Government.

Ans.
• Dividends and profits on investments. 1
• Fees and other receipts. 1
(Any other relevant example to be awarded marks)
OR
(b) "In the recent times, the Government of India has incurred a lot of expenditure on
(i) acquisition of indigenous defence items under 'Make-in-India' programme."
Identify and discuss the two types of budget expenditures which may be
undertaken by the Government as suggested in the above statement.
Ans. Two types of budget expenditures on the acquisition of indigenous defence
items under 'Make-in-India' programme which may be undertaken by the
government are as follows :
• Capital Expenditure- This refers to that expenditure of the government which
either leads to creation of assets or reduction in liabilities. ½+1½
• Revenue Expenditure- This refers to that expenditure of the government
which neither leads to creation of assets nor reduction in liabilities. ½ + 1½
State the meaning of 'fiscal deficit' under the Government Budget.

(ii) Ans. Fiscal deficit refers to the excess of estimated expenditure over estimated
receipts of the government excluding borrowings. It indicates towards the borrowing 2
requirements of the government during a given period of time.
6
17. Read the following text carefully:
In India, after Covid-19 period, household and private sector consumption, as
measured by Private Final Consumption Expenditure (PFCE), was ₹ 39.7 trillion
in nominal terms in Q1 FY23, compared with ₹ 28.4 trillion for the same period
last year, and ₹ 39.2 trillion in the fourth quarter (Q4) of 2021-22 (FY22).
As a percentage of Nominal GDP, PFCE was 61.1 per cent, compared with 55.5
per cent in Q1 FY22. However, in real terms at constant prices, PFCE grew just
9.88 per cent, compared with Q1 of 2019-20-the year before the Covid-19
pandemic.
"Recovery in domestic demand is reflected in the growth rates of PFCE and Gross
Fixed Capital Formation (GFCF) over the corresponding quarter of the previous
year," said D.K. Srivastava. GFCF came in at ₹ 19 trillion in Q1 FY23, compared
with ₹ 14.4 trillion in Q1 FY22. However, it was slightly lower than ₹20.2 trillion
in Q4 FY22.
In the media briefing after the GDP numbers, Finance Secretary T.V. Somanathan
said this trend was expected as GFCF in present Q1 was usually lower than the
previous year's Q4.
On the basis of the given text and common understanding, answer the following
questions:
(a) Compare and analyse the trends of change in PFCE as a percentage of GDP, both
in real and nominal terms.
Ans. Household and private sector consumption, as measured by Private Final
Consumption Expenditure(PFCE) was at 39.7 trillion in nominal term in Q 1 FY
23 compared with 28.4 trillion for the same period last year and 39.2 trillion in
the fourth quarter of 2021-22. As a percentage of nominal GDP, PFCE was 61.1 %, 4
compared with 55.5% in Q 1 FY 22. In real terms, PFCE grew just 9.88%,
compared with Q1 of 2019-20. (To be marked as a whole)
(b) "Private Final Consumption Expenditure is an important factor determining Gross

Domestic Product at Market Price." Justify the given statement.
Ans. Private final consumption expenditure (PFCE) refers to the expenditure 2
incurred by the household sector on all types of consumer goods.
It is a measure of total amount spent by consumers on the purchase of final goods
and services. Therefore, it is an important factor determining Gross Domestic
product at Market Price. (To be marked as a whole)
6
SECTION – B
Indian Economic Development
Assertion (A): Post independence, public sector was given a prominent
role, due to requirement of huge investments in the secondary sector.
Reason (R): Industrial sector is the backbone of any economy.
Alternatives:
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of the Assertion (A). 1
19. From the following alternatives, identify the correct full form of 'NITI' in NITI
(A) Aayog:
(a) National Institution for Tribal India.
Ans. (c) National Institution for Transforming India 1
OR
(B) In a _________economy, resources are owned and operated by both public and
private sectors. (Choose the correct alternative to fill up the blank)
(a) Socialist (b) Capitalist
(c) Democratic (d) Mixed
Ans. (d) Mixed 1
20. Identify the correct alternative with reference to the following statement:
(A) "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."
(a) Commune System
(b) Great Leap Forward
(c) Open Door Policy
(d) Great Proletarian Cultural Revolution
Ans. (d) Great Proletarian Cultural Revolution 1
OR
(B) Read the following statements carefully:
Statement 1: In the agricultural sector, communes were established,
where land holdings were allocated to individual households for ownership.
Statement 2: Special Economic Zones (SEZs) were established to attract foreign
investments and technology.
Ans. (b) Statement 1 is false and Statement 2 is true 1
21. Micro credit programmes play a vital role in ensuring an overall development of
(A) the rural economy as they____________.
(i) provide financial support
(ii) lead to women empowerment
(iii) enhance the reach of formal credit system
Alternatives:
(a) Only (i) and (ii)
(b) Only (ii) and (iii)
(c) Only (i) and (iii)
(d) (i), (ii) and (iii)
Ans. (d) (i), (ii) and (iii) 1
OR
(B) _____________revolution was the harbinger of major changes in the credit
system as it led to diversification of the portfolio of rural credit towards
production-oriented lending.
(a) White
(b) Silver
(c) Blue
(d) Green
Ans. (d) Green 1
22. "Multiple reasons for economic slowdown and re-emergence of poverty in
Pakistan may be enumerated."
Identify which of the following might not be one of them.
(i) Rising dependence on foreign loans
(ii) Stable macroeconomic indicators
(iii) Unstable agricultural growth
Alternatives:
(a) (i), (ii) and (iii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) Only (ii)
Ans. (d) Only (ii) 1
23. Identify which of the following does not reflect a direct relationship between
human capital formation and economic growth.
(a) Employability of an educated person is higher than that of an uneducated
person.
(b) On-the-job training will reduce the skills of labour.
(c) Healthy workforce is a boon to the economy.
(d) Digital information helps in taking real time decisions.
Ans. (b) On-the-job training will reduce the skills of labour. 1
Assertion (A): Lower child mortality rate is a better indicator of gender
equality.
Reason (R): Preference for a male child exists in India, Pakistan and
China.
Alternatives:
Ans. (d) Assertion (A) is false, but Reason (R) is true. 1
25. ____________ adopted the resolution to ban the use of Chlorofluorocarbon (CFC)
(A) compounds along with other ozone depleting chemicals.
(a) Kyoto Protocol
(b) Paris Protocol
(c) Montreal Protocol
(d) Brundtland Commission Report
Ans. (c) Montreal Protocol 1
OR
(B) According to Herman Daly (an environmental economist), which of the following
is not an essential step towards achieving sustainable development?
(a) Limiting human population to carrying capacity of the environment
(b) Input inefficient technological progress
(c) Rate of extraction of renewable resources should not exceed rate of
regeneration
(d) Correction of inefficiencies arising from pollution
Ans. (b) Input inefficient technological progress 1
Assertion (A): Government can try to reduce unemployment through special
poverty removal programmes.
Reason (R): Such poverty removal programmes directly or indirectly
lead to employment generation.
Alternatives:
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
Statement 1: One-child policy' was very effectively used in controlling
the population by the Chinese authorities.
Statement 2: One-child policy, according to scholars, led to a decline in
gender ratio (the proportion of females per 1000 males).
Ans. (c) Both Statements 1 and 2 are true. 1
28. Define worker-population ratio and give its significance.
(a) Ans. Worker population ratio is defined as total number of workers in a country 1
divided by population (in percentage).
Worker-population ratio is an indicator which is used for analysing the employment
situation in the country. This ratio is useful in knowing the proportion of population 2
that is actively contributing to the production of goods and services of a country.
OR
(b) Distinguish between 'Human Capital' and 'Human development'.
Ans. Human capital considers education and health as a means to increase labour 1½
productivity. Human capital treats human beings as a means to achieving the
ultimate end of an increase in productivity.
Whereas;
Human development is based on the idea that education and health are integral to 1½
human well-being. Human development treats human beings as ends in themselves.
3
29. Elaborate how a well-structured 'Agricultural Marketing System' helps the
farmers to increase their income.
Ans. A well-structured ‘Agricultural Marketing System’ helps the farmers to
increase their income as:
• Orderly and transparent marketing conditions facilitate sale of farmers’ 3
produce.
• Provision of better infrastructural facilities like cold storage and warehouses
prevent distress sale.
• It protects farmers from the exploitation of middlemen/intermediaries.
30. Read the following schedule carefully:
Analyse the output growth trend in the three sectors over the given years between
India and China.
Ans. In the last few decades, output growth in the agriculture sector declined for both
India and China. In the industrial sector, China attained a growth rate of 10.8% in
1980s but declined to 8.1% in 2011-15. India also witnessed a decline in the industrial
growth rate from 7.4% in 1980s to 5% in 2011-15.
In case of service sector, China was able to maintain highest rate of growth during 4
1980–1990 i.e. 13.5% which declined to 8.4% in 2011-15. Whereas, India’s growth
increased from 6.9% in 1980s to 8.4% in 2011-15.
Thus, China’s growth is contributed by both the manufacturing and service sectors
and India’s growth mainly by the service sector. (To be marked as a whole)
31.(a) "Many economists believe that the economic reforms process of 1991 had
adversely affected the agricultural sector." Do you agree with the given statement?
Quote valid arguments in favour of your answer.
Ans. Yes. The agricultural sector was adversely affected by the reform process as
public investment in agriculture sector especially in infrastructure had fallen.
Further, the partial removal of fertiliser subsidy had led to increase in the cost of 4
production, which had severely affected the small and marginal farmers.
Moreover, there had been a shift from production for the domestic market towards
production for the export market focusing on cash crops putting pressure on prices
of food grains. (To be marked as a whole)
OR
(b) (i) Explain any two shortfalls of the industrial policy under the British rule.
Ans.
• Discriminatory tariff policy followed under the British rule led to the 1
systematic de-industrialisation.
• Due to the lack of public investment, India could not develop a sound
industrial base under the colonial rule. (Any other valid explanation to be 1
allotted marks)
(ii) Quote the four goals of the five year plans process of India.
Ans. The four goals of the five year plans process of India were –
• Growth ½
• Modernisation ½
• Self-reliance ½
• Equity ½
4
32. State whether the following statements are true/false with valid arguments:
(a) Economic participation of women as homemakers is not accounted for in the
Gross Domestic Product.
Ans. True. Activities performed by women as homemakers are not recognized as
productive work. They are not paid for it and hence not accounted for in the Gross 2
Domestic Product.
(b) Indian economy has shown excellent shift from informal sector to formal sector
in the recent past.
Ans. False. In the recent years, India has witnessed an unprecedented shift of the 2
workforce from the formal sector to informal sector. This may be primarily due to
decline in job opportunities in formal (both public and private) sector.
4
33. (i) Explain the role of education in the economic development of the nation.
(a) Ans. Education provides knowledge to understand changes in society and scientific
advancements. It stimulates inventions and innovations in the economy. Similarly,
the availability of educated labour force facilitates adaptation to new technologies. 4
Technical skills acquired through education provide an opportunity to make better
use of given resources thereby promoting economic development of the nation.
(ii) State the importance of rural banking in an economy like India.

Ans. Rural banking is important for an economy like India as it ensures -
• Availability of adequate credit to the farmers. 1
• Provision of loans to the rural population for productive needs at cheaper rate 1
of interest. (Any other valid point to be allotted marks)
OR
(b) (i) Who is a casual wage labourer?
Ans. A casual wage labourer is a person who is casually engaged in others’ farm or 1
non-farm enterprises.
(ii) State and discuss any one recommendation of the Education Commission
(1964-66).
Ans. The Education Commission (1964–66) had recommended that at least 6 % of 1
GDP should be spent on education.
This is required to make a noticeable rate of growth in educational achievements. 1
This was expected to raise the academic standard in the post-independence era.
(iii) In the light of the given image, identify and explain any one strategy to ensure
sustainable development.
Ans. One of the strategies to ensure sustainable development depicted in the given
image is the usage of wind energy. Wind power is a popular source of sustainable
renewable energy. In the areas where speed of wind is usually high, wind mills can 3
provide electricity without any adverse impact on environment.
(Any other valid argument to be allotted marks)
Note: The following question is for the Visually Impaired Candidates only in
lieu of Q. No. 33 (b) (iii):
Explain any one function of the environment.
Ans. The environment supplies resources, both renewable and non-renewable.
Example of Renewable resources is solar energy and non-renewable resources is 3
Fossil fuels. (Any other valid argument to be allotted marks)
6
34. Read the following text carefully:
With independence, India chose the closed economy model in pursuit of its
objective of industrial self-sufficiency. As a result, industrial structure has become
considerably important. In the post-independence era, the industrial growth was
rapid during the first two decades, especially during the Second and Third Plan
period. The Second Plan introduced ‘Industrial Revolution’ in the country. The
main reasons for high rates of industrial growth witnessed during this period were
due to:
(i) Emphasis on industrialisation in economic policies.
(ii) Making industrial growth the main objective in the industrial policy and
planning.
(iii) Huge investments being made to support capacity creation in industrial sector
(iv) Growing demands for a variety of new products on the part of the urban
consumers and the relatively better-off sections of the society.
(v) Pace of economic expansion supported by domestic savings and inflow of
resources from abroad.
On the basis of the given text and common understanding, answer the following
questions:
(a) State the time period of the Second Five Year Plan of India.
Ans. 1956 to 1961 1
(b) Who is considered as the Father of the Second Five Year Plan of India?
Ans. P.C Mahalanobis 1
(c) Discuss briefly any two reasons behind the industrial growth during the Second
and Third Five Year Plans of India.
Ans. Two reasons behind the industrial growth during the Second and Third Five
Year Plans of India were:-
• Growing demands for a variety of new products on the part of the 2
urban consumers and the relatively better-off sections of the society.
• Pace of economic expansion supported by domestic savings and inflow 2
of resources from abroad.
(Any other valid argument to be allotted marks)
6
***

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Statement 2 : Consumption curve must always start from the point of

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(a) _wÐm Amny{V© {Z`§ÌH$

4. {ZåZ{b{IV H$WZm| H$mo Ü`mZnyd©H$ :

(a) H$WZ 1 gË` h¡ Am¡a H$WZ 2 AgË` h¡ &

(b) decrease in trade deficit

3. Identify, which of the following is not a function of the Reserve Bank of

(c) Central agency preparing the annual budget of the Government

4. Read the following statements carefully :

Statement 2 : Outflow of Foreign Institutional Investment (FII) from

(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.

(ii) Identify, flow variable from the following :

6. (i) If in an economy, the value of Investment Multiplier is 5 and

(ii) The range of value of Investment Multiplier is always between _____

8. (A) Identify, which of the following is not a source of supply of foreign

Reason (R) : At equilibrium level of income, aggregate demand may not

Assertion (A) : The value of Average Propensity to Consume (APC)

Reason (R) : Average Propensity to Consume (APC) is independent of

(a) Am` H$m g§VwbZ ñVa 2

(b) Am` Ho$ g§VwbZ ñVa na g_J« _m±J 1

(c) gr_m§V ~MV àd¥{Îm 1

14. (H$) {ZåZ{b{IV gyMZm H$m Ü`mZnyd©H$ AÜ``Z H$s{OE :

13. Suppose the following information is given about a hypothetical

14. (a) Read the following information carefully :

India (RBI), recently increased the Repo Rate by 50 basis points.

17. {ZåZ{b{IV JÚ H$mo Ü`mZnyd©H$ :

(b) (i) , the Government of India has incurred a

Identify and discuss the two types of budget expenditures

17. Read the following text carefully :

< 19 trillion in Q1 FY23, compared with < 14·4 trillion in Q1 FY22.

(a) Compare and analyse the trends of change in PFCE as a

(b) Private Final Consumption Expenditure is an important factor

22. Multiple reasons for economic slowdown and re-emergence of poverty in

(c) ñdñW H$m`©~b AW©ì`dñWm Ho$ {bE daXmZ h¡ &

between human capital formation and economic growth. 1

(a) Employability of an educated person is higher than that of an

(b) On-the-job training will reduce the skills of labour.

(c) Healthy workforce is a boon to the economy.

(d) Digital information helps in taking real time decisions.

correct alternative from those given below. 1

Assertion (A) : Lower child mortality rate is a better indicator of gender

correct explanation of the Assertion (A).

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.

(B) According to Herman Daly (an environmental economist), which of

30. {ZåZ{b{IV Vm{bH$m H$mo Ü`mZnyd©H$ :

^maV 3·1 7·4 6·9 2·3 5 8·4

with the given statement ? Quote valid arguments in favour of your

n`m©daU Ho$ {H$gr EH$ H$m`© H$s ì`m»`m H$s{OE & 3