Eco Booklet

DELHI PUBLIC SCHOOL Assignment Booklet
Indirapuram, Ghaziabad (Class - XII : Economics)
Index
S.No. Contents
1. Syllabus (CBSE – 2019-20)
2. Project Guidelines
3. Month wise breakup of detailed syllabus
4. Suggested readings
5. Assignments (Unit wise)
6. HOTS (Unit wise)
7. Multiple Choice Questions
8. Sample papers 1-2 (Macroeconomics)
9. Sample papers 1-4 (Indian Economic Development)
10. CBSE Question paper (Macroeconomics) 2017-18
11. CBSE Question paper (Macroeconomics) 2018-19
1
SYLLABUS (CBSE – 2019– 20)

3 Hours 80 Marks
Units Marks
PART A :- INTRODUCTORY MACROECONOMICS

1. National Income & Related Aggregates 10
2. Money & Banking 06
3. Determination of Income and Employment 12
4. Government Budget and the Economy 06
5. Balance of Payments 06
40
PART B :- INDIAN ECONOMIC DEVELOPMENT
6. Development experience (1947 – 90) and Economic Reforms since
1991 12
7. Current challenges facing Indian economy 22
8. Development experience of India – a comparison with neighbours
6
40
PART C: PROJECT WORK 20
TOTAL 100
2
Guidelines for Project Work in Economics
The objectives of the project work are to enable learners to:

probe deeper into theoretical concepts learnt in classes XI and XII
analyse and evaluate real world economic scenarios using theoretical constructs and
arguments
demonstrate the learning of economic theory
follow up aspects of economics in which learners have interest
develop the communication skills to argue logically
The expectations of the project work are that:
learners will complete only ONE project in each academic session
project should be of 3,500-4,000 words (excluding diagrams & graphs),
preferably hand-written
it will be an independent, self-directed piece of study
Role of the teacher:
The teacher plays a critical role in developing thinking skills of the learners. A teacher should:
help each learner select the topic based on recently published extracts from the news
media, government policies, RBI bulletin, NITI Aayog reports, IMF/World Bank reports
etc., after detailed discussions and deliberations of the topic
play the role of a facilitator and supervisor to monitor the project work of the learner
through periodic discussions
guide the research work in terms of sources for the relevant data
educate learner about plagiarism and the importance of quoting the source of the
information to ensure authenticity of research work
prepare the learner for the presentation of the project work
arrange a presentation of the project file
3
Scope of the project:

Learners may work upon the following lines as a suggested flow chart:
Choose a title/topic
Collection of the research material/data
Organization of material/data Present
Material/data
Analysing the material/data for conclusion
Draw the relevant conclusion
Presentation of the Project Work
Expected Checklist:
Introduction of topic/title
Identifying the causes, consequences and/or remedies
Various stakeholders and effect on each of them
Advantages and disadvantages of situations or issues identified
Short-term and long-term implications of economic strategies suggested in the
course of research
Validity, reliability, appropriateness and relevance of data used for research
work and for presentation in the project file
Presentation and writing that is succinct and coherent in project file
Citation of the materials referred to, in the file in footnotes, resources
section, bibliography etc.
Mode of presentation/submission of the Project:

At the end of the stipulated term, each learner will present the research work in the Project
File to the External and Internal examiner. The questions should be asked from the
Research Work/ Project File of the learner. The Internal Examiner should
ensure that the study submitted by the learner is his/her own original work.
4
In case of any doubt, authenticity should be checked and verified.
Marking Scheme:
Marks are suggested to be given as –
S. No. Heading Marks
1. Relevance of the topic Allotted
3
2. Knowledge Content/Research Work 6
3. Presentation Technique 3
4. Viva-voce 8
Total 20 Marks
Topics
Micro and Small Scale Industries Food Supply Channel in India
Contemporary Employment situation in India Disinvestment policy of the government
Goods and Services Tax Act and its Impact on Health Expenditure (of any state)
GDP
Human Development Index Inclusive Growth Strategy
Self-help group Trends in Credit availability in India
Monetary policy committee and its functions Role of RBI in Control of Credit
Government Budget & its Components Trends in budgetary condition of India
Exchange Rate determination – Methods and Currency War – reasons and repercussions
Techniques
Livestock – Backbone of Rural India Alternate fuel – types and importance
Sarwa Siksha Abhiyan – Cost Ratio Benefits Golden Quadrilateral- Cost ratio benefit
Minimum Support Prices Relation between Stock Price Index and
Economic Health of Nation
Waste Management in India – Need of the Minimum Wage Rate – approach and
hour Application
Digital India- Step towards the future Rain Water Harvesting – a solution to
water crises
Vertical Farming – an alternate way Silk Route- Revival of the past
Make in India – The way ahead Bumper Production- Boon or Bane for
the farmer
Rise of Concrete Jungle- Trend Analysis Organic Farming – Back to the Nature
Any other newspaper article and its Any other topic
evaluation on basis of economic principles
5
MONTH WISE BREAK UP OF SYLLABUS (2019-20)
March
PART A : MACROECONOMICS
Unit I : National Income and Related Aggregates.
Contents :-
(i) Macroeconomics – meaning.
(ii) Circular flow of income (two sector model)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
April
PART A: MACROECONOMICS
Unit I : National Income and Related Aggregates.
Contents :-
(i) Some basic concepts of macroeconomics: consumption goods, capital
goods; final goods, intermediate goods; stocks and flows; gross
investment and depreciation.
(ii) measurement of National Income – Value Added (Product Method)
method, Income method and Expenditure method.
(iii) Concepts and aggregates related to National Income:
GDP, GNP, NDP, NNP ( at market price and factor cost ) Real and
Nominal GDP, GDP and welfare.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6
May
PART B : INDIAN ECONOMIC DEVELOPMENT

Unit I: Development experience (1947-1990) and economic reforms since 1991
Chapter 1: Indian economy on the eve of independence
Contents :-
(i) Low level of economic development during British rule
(ii) Agricultural sector
(iii) Industrial sector
(iv) Foreign trade
(v) Demographic condition
(vi) Occupational structure
(vii) Infrastructure
Chapter 2: Indian economy (1950-90)
Contents :-
(i) Types of Economic systems – capitalist, socialist and mixed economy
(ii) Economic system adopted by independent India
(iii) Meaning and importance of economic planning
(iv) Goals of five year plans- short term and long term
(v) Agriculture:
(a) Problems
(b) Measures to solve agricultural problems - institutional and
technological measures.
(c) Debate over subsidies
(vi) Industry:-
(a) Importance
(b) Role and performance of public sector in India’s industrial
development
(c) Industrial Policy Resolution, 1956 (Industrial licensing policy)
(d) Small–scale industries (Importance and reservations)
(vii) Foreign trade: import – substitution Policy
(viii) Effects of policies on industrial development
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7
July

Unit I: Development experience (1947-1990) and economic reforms since 1991
Chapter 3:- Liberalization; Privatization and Globalization: An Appraisal
Contents:-
(i) Pre-reform scenario
(ii) New Economic Policy–meaning, need and objectives
(iii) Liberalization – meaning, objectives, and main areas of the policy
(iv) Privatization – meaning, rationale and obstacles
(v) Globalization – meaning, components and causes
(vi) Outsourcing
(vii) WTO and its functions
(viii) Sectoral impact of LPG policies on Indian economy (positive and
negative)

Unit II: Current challenges facing Indian economy
Chapter 4:- Poverty
Contents:-
(i) Who are poor?
(ii) Rural and urban poor
(iii) Meaning of poverty and poverty line
(iv) Categorizing poverty
(v) Estimates of poverty – absolute and relative
(vi) Main features of poverty in India
(vii) Causes of poverty – economic and non–economic
(viii) Adverse effects of poverty
(ix) Measures for removal of poverty
(x) Poverty Alleviation Programmes (PAPs) adopted by the government
(xi) Critical assessment of PAPs
Chapter-5:- Human Capital Formation
Contents:-
(i) Meaning of human capital
(ii) Sources of human capital
8
(iii) Importance of human capital formation

(iv) Growth of education sector in India since independence
Unit II : Money and Banking
Contents :-
(i) Money – meaning, & supply of money:- Currency held by the public
and net demand deposits held by commercial banks.
(ii) Money creation by the commercial banking system.
(iii) Central bank and its functions (eg. of RBI) : Bank of issue; Govt. bank,
Banker’s Bank, Control of credit through Bank rate, CRR, SLR, Repo
rate and Reverse Repo rate, OMO, margin requirement.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
August
Unit III : Determination of Income and Employment

Contents :-
(i) Aggregate demand and its components.

(ii) Propensity to consume and propensity to save (average and marginal).
(iii) Short run equilibrium output.
(iv) Investment multiplier and its mechanism.
(v) Meaning of involuntary unemployment and full employment.
(vi) Problems of excess & deficient demand.
(vii) Measures to correct excess & deficient demand - Changes in
government spending, taxes and money supply.
9
PART (B) :- INDIAN ECONOMIC DEVELOPMENT

Chapter 6:- Rural Development
Contents:-
(i) What is rural development?
(ii) Agricultural credit – meaning and purpose (productive and non-
productive)
(iii) Sources of agricultural finance in India (institutional and non-
institutional)
(iv) Critical appraisal of rural banking
(v) Suggestions for improving agricultural credit in India
(vi) Agricultural marketing system
(vii) Defects in agricultural marketing system
(viii) Steps taken by the govt. to improve the system of agricultural
marketing
(ix) Diversification of productive activities:
(a) Crop- diversification: meaning and importance
(b) Shift of workforce from agriculture to other activities
(x) Sustainable development and organic farming (meaning, merits and
demerits)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
September
Revision for Half Yearly Examinations
Part (A):- MACROECONOMICS
UNIT 1 :NATIONAL INCOME AND RELATED AGGREGATES

Chapter 1 :Circular flow of income
Chapter 2 : Basic concepts of Macroeconomics
Chapter 3 : National Income and Related aggregates
Chapter 4 Measurement of National Income
UNIT 2 :MONEY AND BANKING

Chapter 5:Money
10
Chapter 6 :Banking:Commercial Banks and The Central Bank
UNIT 3 :DETERMINATION OF INCOME AND EMPLOYMENT
Chapter 7: Aggregate Demand and Related Concepts

Chapter 8 :Income Determination and Multiplier
Chapter 9 :Excess Demand and Deficient Demand
Part (B):- INDIAN ECONOMIC DEVELOPMENT
UNIT 1 :DEVELOPMENT EXPERIENCE (1947-90) AND ECONOMIC

REFORMS SINCE 1991
Chapter-1: Indian Economy on the Eve of Independence.
Chapter-2: Indian Economy (1950-1990).
Chapter 3:- Liberalization; Privatization and Globalization: An Appraisal
UNIT 2 :CURRENT CHALLENGES FACING THE INDIAN ECONOMY
Chapter 4 :Poverty
Chapter 5 : Human Capital Formation
Chapter 6 :Rural Development
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
October
Unit IV : Government Budget and the Economy.
Contents :-
(i) Government budget – meaning & its components.
(ii) Objectives of Government budget.
(iii) Classification of receipts – revenue & capital.
(iv) Classification of expenditure – revenue & capital..
(v) Balanced budget, surplus budget and deficit budget – meaning.
(vi) Various measures of Government deficit - revenue deficit, fiscal deficit
and primary deficit – meaning and implications.
11

Chapter 7:- Employment
Contents:-
(i) Importance of employment
(ii) Workers and employment
(iii) Worker- population ratio
(iv) Categories of employment workers – self employed, regular wage
employees, casual wage labourers
(v) Distribution of employment by gender and region
(vi) Distribution of workers by economic activities
(vii) Growth and changing structure of employment
(viii) Informalisation of workforce
(ix) Unemployment – meaning, types and extent
(x) Causes of unemployment
(xi) Adverse effects of unemployment
(xii) Measures to reduce unemployment
Chapter 8:- Infrastructure

Contents:-
(i) Meaning of infrastructure
(ii) Classification of infrastructure – economic and social
(iii) Need and importance of infrastructure
(iv) Sources of energy–conventional and non-conventional
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
November
Part A : MACROECONOMICS
Unit V : Balance of Payments
Contents :-
(i) Balance of payments account – meaning & components.
(ii) Balance of payments deficit – meaning.
(iii) Foreign exchange rate – meaning of fixed & flexible rates
12
(iv) Meaning of managed floating exchange rates.

(v) Determination of exchange rate through demand & supply in a free
market.

Chapter 9:- Environment and Sustainable Development
Contents:-
(i) Environment - definition and functions
(ii) Environmental degradation:
(a) State of environmental degradation in India:
(1) Pollution: air pollution, water pollution and loss to bio-diversity
(2) Degradation of resources: deforestation and land degradation
(b) Causes of environmental degradation
(c) Impact of environmental degradation
(d) Measures for environmental protection
(iii) Sustainable development–meaning, need, features & measures to achieve it.
Unit III: Development Experience Of India –A Comparison With Neighbours
Chapter-10:- Comparative Development Experiences of India and its Neighbours –

Contents:-
(i) Developmental path
(ii) Demographic indicators
(iii) GDP and sectors
(iv) Indicators of human development
(v) Development strategies
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
December/January
Revision for Pre Board Examinations
13
Syllabus for Pre Board Examinations:- Full syllabus as per CBSE curriculum
SUGGESTED READINGS.
1 Introductory Macroeconomics NCERT
Indian Economic Development
2 Introductory Macroeconomics By Sandeep Garg
Indian Economic Development
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
14
ASSIGNMENTS (Unit Wise)

Part (A):– Macroeconomics
UNIT I – National Income and Related Aggregates (1)

Q.1. Explain the concepts of leakages and injections in the circular flow of income.
Q.2. Distinguish between the following giving suitable examples in support of your
answer.
(i) Domestic Income and National Income.
(ii) Intermediate products and Final products.
(iii) Depreciation and Capital Loss.
(iv) Stocks and Flows.
Q.3. Will the following factor incomes be a part of domestic factor income of India? Give
reasons for your answer-
(i) Profits earned by foreign banks from their branches in India.
(ii) Salary received by Indian residents, working in American embassy in India.
(iii) Profits earned by an Indian company from its branch in Singapore.
(iv) Compensation of employees given to residents of China working in Indian
embassy in China.
Q.4. Explain the meaning of circular flow of income in a complete two sector model. (Use
diagram)
Q.5. Can National Income at constant prices be greater than National Income at current
prices? How?
Q.6. Mention the situation where the following will be true:
(i) NDP =NNP
(ii) GDP = NDP
(iii) NNP MP = NNP FC
Q.7. Explain the meaning of net factor income from abroad.
Q.8. Define National Income at current prices.
Q.9. Define Real GNP and Nominal GNP.
Q.10. What are transfer payments?
15
Q.11. What is a GNP deflator?

Q.12. When would the GDP of a country be smaller than its GNP?
Q.13. What is “Green GNP?”
Q.14. Distinguish between real flow and money flow.
Q.15. Under what circumstances -
NNP (MP) < NDP (MP)
NNP (MP) < NNP (FC)
Q.16. What are the uses of national income accounting?
Q.17. Define consumption goods and capital goods.
Q.18. Explain why national income at constant prices is a better indicator of economic
welfare?
Q.19. Define gross investment.
Q.20.Distinguish between real national income and nominal national income.
Q.21. What are the items that are excluded from GNP measurement?
Q.22. Under what conditions Real GNP > Nominal GNP?
Q.23. Is GDP an adequate indicator of economic welfare? Justify your answer.
=============================================
UNIT I - National Income and Related Aggregates (2)
Q.1. Differentiate between intermediate & final goods.
Q.2. Explain the value added method with the help of the main steps to be followed.
Q.3. What are the main precautions required to be taken in estimating the national
income by value added method?
Q.4. Distinguish between factor payments and transfer payments.
Q.5. Explain briefly the income method of estimating the national income.
Q.6. What are the main precautions required to be taken in estimating the national
income by income method?
16
Q.7. Explain the main steps and precautions in the estimation of the national income by
expenditure method.
Q.8. Will the following be a part of the domestic factor income of India? Give reasons for
your answer-
(i) Old age pension given by the Government.
(ii) Factor income from abroad.
(iii) Salaries to Indian residents working in Russian Embassy in India.
(iv) Profits earned by a company in India, which is owned by a non – resident.
Q.9. Will the following be included in the domestic factor income of India? Give reasons
for your answer-
(i) Profits earned by a foreign bank from its branches in India.
(ii) Scholarships given by Government of India.
(iii) Profits earned by a resident of India from his company in Singapore.
(iv) Salaries received by Indians working in American Embassy in India.
Q.10. Will the following be included in the domestic factor income of India? Give reasons
for your answer-
(i) Financial help given to flood victims.
(ii) Profits earned by an Indian bank from its branches abroad.
(iii) Salaries paid to non – resident Indians working in Indian Embassy in
America.
(iv) Interest received by an individual from banks.
Q.11. Explain the term compensation of employees and its components. Giving reasons
state whether the following are included in compensation of employees:
(i) Gift by employee (ii) Bonus
Q.12. Categorize the following into intermediate goods and final goods. You must give
(i) A new car purchased by a taxi driver.
(ii) Stationery purchased by the Government.
(iii) Wheat purchased by the households.
Q.13. Classify the following into factor incomes and transfer receipts. Give reasons for your
answer-
(i) Employers’ contribution to social security schemes.
17
(ii) Scholarships given to students by the government.

(iii) Old age pension given by the government.
(iv) Bonus given to employees by employer.
Q.14. Will the following be included or not in the domestic factor income of India? Give
(i) Wages paid to a non – resident Indian working in an Indian company in
Singapore.
(ii) Salaries of non – residents working in Indian embassies.
(iii) Profits earned by company in India owned by the non – residents,
(iv) Profits earned by a branch of State Bank of India in England.
Q.15. How are the following treated while estimating expenditure on gross domestic
product? Give reasons in support of your answer-
(i) Expenditure incurred on purchase of second hand goods.
(ii) Expenditure incurred on purchase of new shares of a company.
(iii) Government expenditure on old age pension.
(iv) Expenditure incurred by a shopkeeper on purchase of garments from a
garment manufacturer.
Q.16. Will the following be included or not in the domestic factor income of India? Give
(i) Compensation of employees paid by American Embassy in India.
(ii) Salary paid to a non – resident teacher teaching in a school in India.
(iii) Profits earned by an Indian company located in Hong Kong.
(iv) Salary paid by Indian Embassy in France to the residents of France working
in it.
Q.17. Will the following factor incomes be included in domestic factor income of India?
Give reasons for your answer-
(i) Compensation of employees to the residents of Japan working in Indian
embassy in Japan.
(ii) Profits earned by a branch of foreign bank in India.
(iii) Rent received by an Indian resident from Russian embassy in India.
(iv) Profits earned by a branch of State Bank of India in England.
Q.18. Will the following factor incomes be a part of the domestic factor income of India?
Give reasons for your answer-
18
(i) Profits earned by foreign banks from their branches in India.

(ii) Salary received by Indian residents, working in American embassy in India.
(iii) Profits earned by an Indian company from its branch in Singapore.
(iv) Compensation of employees given to residents of China working in Indian
embassy in China.
Q.19. Will the following be included in the national income of a country? Give reasons for
your answer-
(i) School fees paid by students.
(ii) Purchase of new shares of a domestic firm.
(iii) Gifts received from abroad.
(iv) Furniture purchased by households.
Q.20. Giving reasons, state whether the following are included in National Income:
(i) Transport expenses by a firm.
(ii) Expenditure on construction of a house.
(iii) Gift received from employer.
(iv) Purchase of a machine by a factory.
(v) Salary received by an Indian resident working in US embassy in New Delhi.
(vi) Interest paid on loan taken to buy a personal car.
Numericals:-
Q.1. From the following data, calculate value added by firm X and by firm Y:
(` in crores)
(i) Closing stock of Firm X 20
(ii) Closing stock of Firm Y 15
(iii) Opening stock of Firm Y 10
(iv) Opening stock of Firm X 5
(v) Sales by firm X 300
(vi) Purchases by firm X from firm Y 100
(vii) Purchases by firm Y from firm X 80
(viii) Sales by firm Y 250
(ix) Import of raw materials by firm X 50
(x) Exports by firm Y 30
Q.2. Calculate value added by firm P and Q from the following data:
(` in crores)
(i) Sales by firm P 80
(ii) Sales by firm Q to firm P 40
19
(iii) Sales by firm Q to households 60

(iv) Imports by firm P 20
(v) Exports by firm Q 30
(vi) Opening stock of firm P 25
(vii) Closing stock of firm P 15
(viii) Opening stock of firm Q 35
(ix) Closing stock of firm Q 50
(x) Purchases by firm Q 100
Q.3. An economy has only two firms A and B. On the basis of the following information
about these firms, find out :
(a) Value added by firms A and B.
(b) Gross domestic product at market price.
(` in crores)
(i) Exports by firm A 20
(ii) Imports by firm A 50
(iii) Sales to households by firm A 90
(iv) Sales to firm B by firm A 40
(v) Sales to firm A by firm B 30
(vi) Sales to households by firm B 60
Q.4. On the basis of the following data about an economy which constitutes of only two
firms, find out:
(a) Value added by firms A and B
(b) Gross domestic product at factor cost.
(` in crores)
(i) Sales by firm A 300
(ii) Purchases from firm B by firm A 120
(iii) Purchases from firm A by firm B 180
(iv) Sales by firm B 600
(v) Closing stock of firm A 60
(vi) Closing stock of firm B 105
(vii) Opening stock of firm A 75
(viii) Opening stock of firm B 135
(ix) Indirect taxes by both firms 90
Q.5. From the following data relating to a firm (a) estimate the net value added at market
prices. (b) Show that the net value added at factor cost is equal to the sum of the
factor incomes:
20
(` in crores)
(i) Salaries and wages 120
(ii) Interest payments 90
(iii) Dividend 30
(iv) Undistributed profits 20
(v) Rent payments 15
(vi) Increase in stocks 40
(vii) Imports of raw materials 20
(viii) Indirect taxes 10
(ix) Depreciation of fixed capital 15
(x) Domestic sales 360
(xi) Exports 40
(xii) Purchases of raw materials and other inputs 120
Q.6. Calculate Gross Value Added at Market price from the following:
(` in crores)
(i) Intermediate cost 8
(ii) Closing stock 5
(iii) Sales 30
(iv) Net indirect tax 6
(v) Subsidy 1
(vi) Depreciation 3
(vii) Opening Stock 4
Q.7. Calculate Net Value Added at Market Price from the following
(` in crores)
(i) Opening stock 10
(ii) Net indirect tax 7
(iii) Subsidy 2
(iv) Intermediate cost 12
(v) Closing stock 8
(vi) Depreciation 5
(vii) Sales 40
21
Q.8. From the following data about a firm X, calculate its gross value added at factor cost
:
(` in crores)
(i) Sales 500
(ii) Opening stock 30
(iii) Closing stock 20
(iv) Purchase of intermediate products 300
(v) Purchase of machinery 150
(vi) Subsidy 40
Q.9. Calculate Net Value Added at Market Price from the following data.
(` in crores)
(i) Exports 10
(ii) Depreciation 20
(iii) Value of output 400
(iv) Intermediate cost 200
(v) Net Indirect taxes 25
(vi) Change in stock 50
Q.10. From the following data, calculate ‘gross value added at factor cost’:
(` in crores)
(i) Sales 180
(ii) Rent 5
(iii) Subsidies 10
(iv) Change in stock 15
(v) Purchase of raw materials 100
(vi) Profits 25
Q.11. From the following data, calculate National Income:

(` in crores)
(i) Private income 3,000
(ii) Compensation of employees 800
(iii) Mixed income of self employed 900
(iv) Net factor income from abroad ( - )50
(v) Net retained earnings of private enterprises 600
(vi) Rent 350
(vii) Profit 600
(viii) Consumption of fixed capital 200
22
(ix) Direct taxes paid by households 300

(x) Corporation tax 350
(xi) Net indirect taxes 250
(xii) Net exports ( - )70
(xiii) Interest 450
Q.12. From the following data, calculate National Income.
(` in crores)
(i) Government final consumption expenditure 1,500
(ii) Change in stock 60
(iii) Gross domestic capital formation 800
(iv) Private income 4,000
(v) Net exports ( - )70
(vi) Corporation tax 500
(vii) Net indirect taxes 250
(viii) Private final consumption expenditure 2,800
(ix) Net factor income from abroad ( - )50
(x) Consumption of fixed capital 200
(xi) Net retained earnings of private enterprises 50
(xii) Direct taxes paid by households 300
Q.13. Calculate Net Domestic Product at Factor Cost.
(` in crores)
(i) Private final consumption expenditure 700
(ii) Savings of non – departmental enterprises 20
(iii) Net domestic fixed capital formation 100
(iv) Undistributed profits 5
(v) Change in stock 10
(vi) Corporation tax 35
(vii) Net exports 40
(viii) Income from property and entrepreneurship accruing
30
to the government administrative departments
(ix) National debt interest 40
(x) Government final consumption expenditure 150
(xi) Current transfers from governments 25
(xii) Net factor income from abroad ( - )10
(xiii) Net current transfers from the rest of the world 10
(xiv) Net indirect taxes 60
(xv) Personal taxes 35
23
Q.14. From the following data, calculate gross domestic product at market price:
(` in crores)
(i) Value of output in primary sector 2,000
(ii) Intermediate consumption of secondary sector 800
(iii) Intermediate consumption of primary sector 1,000
(iv) Net factor income from abroad ( - )30
(v) Net indirect taxes 300
(vi) Value of output of tertiary sector 1,400
(vii) Value of output of secondary sector 1,800
(viii) Intermediate consumption of tertiary sector 600
Q.15. From the following data, calculate the GNP, GDP, NNP and NDP at both factor cost
and market prices:
(` in crores)
(i) Gross domestic capital formation 90
(ii) Net exports 10
(iii) Net indirect taxes 5
(iv) Depreciation 15
(v) Net factor income from abroad ( - )5
(vi) Personal consumption expenditure 350
(vii) Government purchases of goods and services 100
Q.16. Calculate Net National Product at Market Price and
(` in crores)
(ii) Net indirect tax 20
(iii) Change in stock ( - )5
(iv) Net current transfers from abroad ( - )10
(v) Government final consumption expenditure 50
(vi) Consumption of fixed capital (depreciation) 15
(vii) Net domestic capital formation 30
(viii) Net factor income from abroad 5
(ix) Net imports. 10
Q.17. Calculate National Income.

(` in crores)
(i) Government final consumption expenditure 60
(ii) Net imports 10
(iii) Change in stock 5
24
(iv) Consumption of fixed capital (depreciation) 20

(v) Private final consumption expenditure 250
(vi) Net factor income from abroad (-)5
(viii) Net current transfers from abroad 10
(ix) Net indirect tax 15
Q.18. Find out National Income and from the following data:
(` in crores)
(i) Imports 20
(ii) Government final consumption expenditure 60
(iii) Net factor Income from abroad ( - )5
(iv) Net current transfers from abroad 5
(vi) Subsidies 10
(vii) Indirect tax 40
(viii) Net domestic capital formation 70
(ix) Exports 20
(x) Consumption of fixed capital (depreciation) 15
Q.19. Calculate Gross National Product at Market Price.
(` in crores)
(i) Net factor income from abroad ( - )10
(ii) Government final consumption expenditure 70
(iii) Change in stock 10
(iv) Net indirect tax 30
(v) Net domestic capital formation 50
(vi) Private final consumption expenditure 300
(vii) Net current transfers from abroad 5
(viii) Consumption of fixed capital (depreciation) 25
(ix) Net imports 5
Q.20. From the following data calculate the Net National Product at Market Price by (i)
Expenditure Method (ii) Income Method:
(` in crores)
(ii) Wages and salaries 700
(iii) Employers contribution to social security schemes 100
(iv) Gross domestic fixed capital formation 160
(v) Change in stocks 20
25
(vi) Profits 100

(vii) Government final consumption expenditure 200
(viii) Rent 30
(ix) Exports 40
(x) Imports 20
(xi) Interest 40
(xii) Mixed income 100
(xiii) Net factor income from abroad ( - )10
(xiv) Depreciation 20
(xv) Subsidies 10
(xvi) Indirect taxes 20
=============================================
UNIT II – Money and Banking
Q.1. What is a ‘Central bank’? How is it different from commercial banks?
Q.2. What are the major functions performed by money?
Q.3. Explain the concept of money supply in detail.
Q.4. Explain the meaning of credit creation.
Q.5. Explain the main functions of the Central Bank.
Q.6. What is the barter system of exchange? Discuss its inconveniences.
Q.7. How does the use of money help in overcoming the drawbacks of the barter system?
Q.8. Describe the evolution of money.
=============================================
UNIT III – Determination of Income and Employment
Q.1. State the meaning and components of aggregate demand.
Q.2. Explain the components of the equation:
C = 𝐶̅ + bY.
Q.3. What is marginal propensity to consume? How is it related to marginal propensity to
save?
Q.4. Distinguish between average propensity to consume and marginal propensity to
consume. The value of which of these two can be greater than one and when?
26
Q.5. What is the relationship between average propensity to consume and average
propensity to save? Can they be negative? If yes, when?
Q.6. Explain with the help of a diagram, how aggregate demand and aggregate supply
determine the equilibrium level of income?
Q.7. Show with the help of saving and investment curves, the determination of the
equilibrium level of income.
Q.8. What is an ‘investment multiplier’? Explain the relationship between marginal
propensity to consume and investment multiplier.
Q.9. Explain the working of an investment multiplier with the help of an example.
Q.10. What is the difference between ex - ante investment and ex- post investment?
Q.11. Complete the following table:
Consumption
Income (`) APC APS
Expenditure
0 4
10 12
20 20
30 28
40 36
Q.12. (i) If the value of the multiplier is 4, what will be (a) MPC and (b) MPS?
(ii) What increase in investment is needed to raise the income by `1,000 crores if
MPC is 0.75?
(iii) What is the value of MPC if an additional investment of `40 crores leads to
an increase in income by `100 crores?
Y (`) C (`) MPS APC
1,000 800
2,000 1,500
3,000 2,100
4,000 2,600
27
Q.14. Given that MPC = 0.8 and investment at all levels of income is `40 crores, complete
the following table:
Income Consumption Savings Investment AD AS = Y

0 60
100 -
200 -
300 -
400 -
500 -
600 -
Q.15. Calculate the change in the income when (i) MPC = 0.8 (ii) Change in investment
= `1,000 crores.
Q.16. If an increase of `10,000 investment in an economy results in an increase in income
of `40,000. Calculate MPS in an economy.
Also calculate new investment when k= 2.5 and an increase in income = `500.
Q.17. In an economy, the level of income is `2,000 crores and marginal propensity to
consume is 0.35. Calculate the total increase in income if investment increases by
`200 crores.
Q.18. An increase in investment in a country leads to an increase in national income by
`200 crores. If marginal propensity to consume is 0.75, what is the increase in the
investment?
Q.19. What is fiscal policy?
Q.20. What is monetary policy?
Q.21. How can the problems of excess demand and deficient demand be combated with
the help of fiscal policy?
Q.22. How can the problems of deficient demand and excess demand be combated with
the help of monetary policy?
Q.23. Distinguish between inflationary gap and deflationary gap.
Q.24. Explain with the help of diagrams, the situations of:
(i) Underemployment equilibrium (ii) Excess demand in an economy.
=============================================
28
UNIT IV – Government Budget and the Economy

Q.1. Define: Budget, Fiscal year, Deficit budget and Surplus budget.
Q.2. Name the two parts of the government budget. Define them too.
Q.3. Write a note on budgetary receipts and budgetary expenditure.
Q.4. Define tax. Differentiate between direct and indirect tax.
Q.5. Give an example of each: Tax revenue receipts, Non-tax revenue receipts, Revenue
expenditure, Capital expenditure.
Q.6. Differentiate between Revenue and Capital expenditure.
Q.7. What are the different types of deficits? Discuss their implications in detail.
Q.8. What are the objectives of the Government budget?
Q.9. What are the implications of large fiscal deficit?
Q.10. How is the deficit in the budget financed?
Q.11. Calculate Revenue deficit, Fiscal deficit and Primary deficit -
Capital Receipts 2,000
Revenue receipts 1,000
Borrowing 500
Revenue expenditure 1,500
Capital expenditure 3,000
Interest payments 200
Q.12. Classify the following into Revenue and Capital receipts/ expenditure-
(i) Subsidy given by the govt.
(ii) Loan taken from IMF.
(iii) Construction of govt. hospitals in U.P.
(iv) Compensation given to households for construction of houses demolished
during the construction of a dam.
(v) Defense expenditure.
(vi) Salary of the ministers
(vii) Foreign grant.
(viii) Interest received from govt. of Maharastra on the loan taken from Central
govt.
(ix) Repayment of loan by the govt.
(x) Dividends distributed by non – departmental enterprises to the govt.
29
UNIT V Balance of Payments

Q.1. (i) Define foreign exchange rate.
(ii) How is exchange rate determined?
Q.2. Differentiate between fixed and flexible exchange rates.
Q.3. Define BOP. How is it different from BOT?
Q.4. Give the components of current account of BOP.
Q.5. Give the components of capital account of BOP.
Q.6. What are the causes of disequilibrium in the BOP?
Q.7. Differentiate between autonomous and accommodating transactions of BOP.
Q.8. Define parity value.
Q.9. Differentiate between forward and spot market.
Q.10. What are the main components of BOP?
Q.11. Distinguish between current account and capital account of the BOP account.
Q.12. What do you mean by BOP deficit?
Q.13. Distinguish between balance on trade account & balance of current account.
Q.14.What do you mean by the following terms :
(i) Managed floating exchange rates.
(ii) Crawling peg exchange rates.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
=============================================
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
30
Part (B):– Indian Economic Development

Chapter 1:- Indian Economy on the Eve of Independence
Q.1. How is the rate of economic growth measured?
Q.2. Which year is termed as the year of “great-divide” and why?
Q.3. What is economic drain?
Q.4. What is commercialization of agriculture? How did it affect the Indian economy?
Q.5. Describe the salient features of India’s occupational structure during the British rule.
Q.6. What were the adverse impacts of decline of handicrafts on the Indian economy
during the British rule?
Q.7. What were the positive impacts of introduction of railways on Indian economy?
Q.8. How did a huge export surplus led to economic drain of Indian wealth?
Q.9. How was zamindari system responsible for stagnation of Indian agriculture?
Q.10. Briefly describe the state of Indian infrastructure during the British rule.
Q.11. “The demographic condition during the British rule exhibited all features of a
backward economy.” Do you agree? Give reasons.
=============================================
Chapter 2:- Indian Economy (1950-90)
Q.1. Which economy is called as “golden path” and why?
Q.2. What do you mean by land reforms? Describe them.
Q.3. Why do you think economic planning is important?
Q.4. Discuss the major goals of economic planning.
Q.5. What do you mean by output structure? Is it necessary that services sector should
contribute maximum to GDP of an economy? Why?
Q.6. How are the three important questions of what, how and for whom to produce
answered in capitalism? Why did India not adopt this system after independence?
Q.7. Discuss positive and negative impacts of green revolution on the Indian economy.
Q.8. What do you mean by the “policy of import–substitution”? How can it protect the
domestic industries from foreign competition?
31
Q.9. Why was industrial development essential for the development of Indian economy?
Q.10. Why was the public sector was assigned greater importance than the private sector
in India? Did public sector perform up to expectations?
Q.11. Evaluate the effects of the British policies on industrial development.
Q.12. While subsidies encourage farmers to use new technology, they are a huge burden
on government finances. Discuss the usefulness of subsidies in the light of this fact.
=============================================
Chapter 3:- Liberalization, Privatization and Globalization: An Appraisal
Q.1. Define Liberalization. In what areas was the policy of liberalization introduced in
India? Describe in brief.
Q.2. What are the different ways by which Privatization takes place?
Q.3. Give three main components of the “New Economic Policy”.
Q.4. Define disinvestment. What are the two ways of disinvestment?
Q.5. Discuss the impact of NEP on:
(i) Economic growth (ii) Agriculture (iii) Industry
(iv) Disinvestment
Q.6. What is outsourcing? How is it beneficial for the developing countries?
Q.7. “The benefit of being a member country of WTO is limited for countries like India”
Why?
Q.8. Analyze the positive and negative impact of LPG policies on Indian economy.
Q.9. Describe the pre-reform scenario in India.
Q.10. Define Privatization. Give the rationale for and the obstacles to the policy of
Privatization.
Q.11. Write a short note on Globalization and WTO.
Q.12. What do you mean by “Structural Measures” under NEP?
=============================================
32
Chapter 4:- Poverty

Q.1. Define poverty and poverty line.
Q.2. How is poverty estimated?
Q.3. How do we categorize the poverty of rural people?
Q.4. How is unemployment related to poverty?
Q.5. What are the adverse impacts of poverty?
Q.6. Differentiate between absolute and relative poverty.
Q.7. How does illiteracy lead to Poverty?
Q.8. Discuss both economic and non-economic causes of poverty.
Q.9. “High rate of growth is necessary but not sufficient condition for removing poverty.”
Do you agree? Give reasons.
Q.10. (i) Discuss in detail some measures for removal of poverty in India.
(ii) Briefly enumerate the special poverty alleviation programmes undertaken by
the government of India.
Q.11. Describe the main reasons for failure of poverty alleviation programmes in India.
=============================================
Chapter 5:- Human Capital Formation
Q.1. How can people become resource?
Q.2. Define human capital formation.
Q.3. Discuss the sources of human capital formation.
Q.4. Education is considered as an important input for the development of the nation.
Why?
Q.5. Why is human capital formation important for the development of an economy?
Q.6. Briefly describe the growth of education sector during the plan period.
Q.7. Which five year plan recognized the importance of human capital?
=============================================
Chapter 6:- Rural Development
Q.1. For what purpose does the Indian farmer require credit?
Q.2. What are the main sources of agricultural finance in India?
33
Q.3. Distinguish between formal and informal sources of credit.

Q.4. Why do people from rural areas prefer to go to informal sources of credit?
Q.5. What do you mean by rural development?
Q.6. Critically appraise the role of institutional finance in rural development in India. Also
suggest some measures to improve the same.
Q.7. What do you mean by diversification of productive activities?
Q.8. What is organic farming? Discuss the merits and demerits of organic farming.
Q.9. (i) Why is crop diversification important?
(ii) Briefly discuss the importance of allied activities in rural development.
Q.10. Discuss the defects of the agricultural marketing system in India.
Q.11. Discuss the measures undertaken by government of India to improve the
agricultural marketing in India.
=============================================
Chapter 7:– Employment
Q.1. Explain the importance of employment.
Q.2. What do you mean by the term “worker” and “worker-population ratio”?
Q.3. Discuss the main features of worker-population ratio in India.
Q.4. What are the different categories of workers?
Q.5. What is “informalization of workforce”?
Q.6. Discuss the various types of unemployment.
Q.7. Briefly describe the extent of unemployment in India.
Q.8. Give a brief account of distribution of workers by economic activities.
Q.9. Discuss the distribution of employment by gender and region.
Q.10. Discuss any three causes of unemployment and three measures to tackle the problem
of unemployment in India.
Q.11. How does unemployment adversely affect the country?
=============================================
34
Chapter 8:- Infrastructure

Q.1. Define infrastructure.
Q.2. How does infrastructure contribute to economic development?
Q.3. Distinguish between social and economic infrastructure with examples.
Q.4. Define energy. Discuss various sources of energy.
Q.5. State some non-conventional sources of energy.
Q.6. Distinguish between conventional and non-conventional sources of energy.
Q.7. What are the problems faced by the power sector in India?
Q.8. Discuss the challenges which the Indian economy is facing in the field of energy.
Q.9. Briefly describe any four challenges before India’s health sector.
Q.10. Write a short note on energy crisis.
Q.11. What do you mean by ‘transmission and distribution losses’?
=============================================
Chapter 9:- Environment and Sustainable Development
Q.1. Define environment. Discuss the functions that it performs.
Q.2. Discuss briefly the causes responsible for environmental degradation.
Q.3. What are the negative impacts of environmental degradation?
Q.4. Define sustainable development. Explain its main features.
Q.5. Discuss any four strategies for sustainable development.
Q.6. Why is the issue of sustainability important?
Q.7. What is environmental degradation? Briefly discuss the state of environmental
degradation in India.
Q.8. How can we protect our environment? Suggest any two ways.
Q.9. Write short notes on:
(i) Air pollution (ii) Water pollution
(iii) Deforestation (iv) Soil pollution
Q.10. What do you mean by the carrying capacity of environment?
35
Chapter 10:- Comparative Development Experiences of India and its

Neighbours
Q.1. Why is it necessary to have an understanding of neighbouring economies?
Q.2. What problems were faced by the ‘Great Leap Forward’ (GLF) campaign?
Q.3. What are Special Economic Zones (SEZs)? How do they attract investors?
Q.4. What are the common features of development plans of India, China and Pakistan?
Q.5. Give a brief account of demographic indicators of India, China and Pakistan.
Q.6. Compare the growth trends in China, India and Pakistan in the last two decades.
Q.7. Compare and contrast India, China and Pakistan’s sectoral contribution towards
GDP in the year 2003. What does it indicate?
Q.8. Compare and contrast the development of India, China and Pakistan with respect to
some salient human development indicators.
Q.9. Give the critical appraisal of the development strategies of China, India and Pakistan.
36
HOTS (Higher Order Thinking Skills)

Unit wise
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Macro Economics (PART–A)
Unit – 1 (National income and related aggregates)
Q.1. Should we treat subsides as transfer payments?
Q.2. Macroeconomics is the study of aggregates while microeconomics is not.
Comment.
Q.3. What is true at the micro level may be a paradox at the macro level? Explain with
an example.
Q.4. Is net of exports (X−M) a part of net factor income from abroad? Give reasons.
Q.5. Calculate the ‘Value of Output’ from the following data:
(` in lakhs)
(i) NVAFC 115
(ii) Intermediate consumption 48
(iii) Excise duty 25
(iv) Subsidy 5
(v) Depreciation 12
Q.6. Calculate ‘Intermediate Consumption’ from the following data:
(` in lakhs)
(i) Value of Output 400
(ii) NVAFC 155
(iii) Sales tax 30
(iv) Subsidy 5
(v) Depreciation 20
Q.7. Calculate ‘Sales’ from the following data:
(` in lakhs)
(i) NVAFC 115
(ii) Intermediate consumption 48
(iii) Indirect tax 20
(iv) Depreciation 12
(v) Change in stocks (−)5
37
Q.8. Calculate ‘Gross National Product at Market Price’ from the following data:
(` in crores)
(i) Corporation tax 35
(ii) Wages and salaries 500
(iii) National debt interest 20
(iv) Operating surplus 650
(v) Net current transfers from abroad 15
(vi) Net factor income from abroad (−)10
(vii) Net capital formation 100
(viii) Social security contribution by employers 20
(x) Net domestic product accruing to private sector 300
(xi) Current transfers from the government 5
(xii) Gross capital formation 120
Q.9. Calculate National Income:
(` in crores)
(i) Government final consumption expenditure 30
(ii) Net imports 10
(iii) Change in stocks 5
(iv) Consumption of fixed capital (depreciation) 20
(vi) Net factor income from abroad (−) 5
(viii) Net current transfers from abroad 10
Q.10. With the help of following data, calculate National Income:

(` in crores)
(i) Interest on national debt 1,100
(ii) Income from property and entrepreneurship accruing
to government administrative department 5,900
(iii) Personal disposable income 36,400
(iv) Corporation tax 2,300
(v) Direct tax paid by households 3,200
(vi) Savings of private corporate sector 3,700
(vii) Savings of non-departmental enterprises 1,400
(viii) Net other current transfers from the rest of the world 700
38
Q.11. Are exports of goods and services a part of domestic product? Give reasons in
support of your answer.
Q.12. Will the following be included in domestic factor income of India? Give reasons for
your answer:
(i) Compensation of employees paid by a foreign company located in India.

(ii) Profits earned by an Indian company located abroad.
(iii) Compensation of employees paid by American Embassy in India to Indian
residents.
(iv) Profits earned by a company party owned by residents and party owned by
non-residents and located in India.
Q.13. Giving reasons, explain how the following are treated in estimating national
income:
(i) Production for self consumption by farmers
(ii) Expenses on electricity by a firm.
(iii) Money received from the sale of old house.
(iv) Money received from the sale of shares.
(v) Expenditure by government in providing free medical facilities.
(vi) Expenditure by the government in providing old age pension.
Q.14. Distinguish between intermediate products and final products.
Q.15. Distinguish between consumer goods and capital goods.
Q.16. Why are exports treated as a part of domestic product?
Q.17. How the following are treated in estimating national income (NI). Give reasons.
(i) Services of owner occupied houses,
(ii) Sale of shares,
(iii) Production for self consumption,
(iv) Old age pension, and
(v) Wealth tax (or income tax).
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Unit – 2 (Money and Banking)
Q.1. What is credit creation?

Q.2. What selective credit control?
39
Q.3. How is quantitative credit control different from qualitative credit control?
Q.4. What is narrow money?
Q.5. What is broad money?
Q.6. Why are Post-office saving banks not banks in the true sense even though they
accept deposits from the public?
Q.7. Why are many financial institutions like LIC, UTI and IDBI not considered as bank?
Q.8. Distinguish between demand deposits and time deposits. Explain the credit creation
function of commercial banks.
Q.9. What monetary system does India follow?
Q.10. What are latest (i) Repo Rate, (ii) Reserve Repo Rate and (iii) Cash Reserve Ratio
(CRR) in India?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Unit – 3 (Determination of Income and Employment)
Q.1. Does an excess of AD over AS always imply a situation of inflationary gap?
Q.2. What does MPC refer to in a diagram showing consumption function or consumption
line?
Q.3. What happens if AD>AS prior to the full employment level of output?
Q.4. Show that investment multiplier is equal to 1 . or = 1 .
MPS 1−MPS
Q.5. If MPC = 0.5, and increase in investment is ` 1000, how much is the total increase
in income. Explain the process how income changes as a consequence of change in
investment.
Q.6. Show diagrammatically, the effect on equilibrium level of output, of government

spending.
Q.7. What is meant by autonomous consumption?

Q.8. What is meant by full employment? Can there be no unemployment under the
situation of full employment?
Q.9. Explain the difference between full employment equilibrium and underemployment
equilibrium with the help of a diagram.
40
Q.10. As a result of increase in investment by ` 500 crores, total national income increases
by ` 2,000 crores. What is the -
(i) Value of multiplier
(ii) MPS and
(iii) MPC?

MPC MPS Multiplier (k)
0 ---- ----
---- ---- 2
----
1
/3 ----
¾ ---- 4
Q.12. In an economy an increase in investment leads to increase in national income which
is more than increase in investment. Calculate marginal propensity to consume.
Q.13. An increase of ` 250 crores in investment in an economy results in total increase in

income of ` 1,000 crores. Calculate the following:
(i) Value of multiplier

(ii) MPC
(iii) S, i.e., change in saving
(iv) C, i.e., change in consumption expenditure
Q.14. Given autonomous consumption (CO) = 300 crores, MPC (b) = 0.8. From the
consumption function and determine the value of consumption when income (Y)
= 2000 crores.
Q.15. In an imaginary economy, assuming linear consumption and saving function,

complete the following table:
Y C S
0 ---- ----
100 ---- ----
200 ---- 0
300 ---- ----
400 ---- ----
500 ---- 75
41
Q.16. Given C = 450 + 0.6 Y and autonomous investment amounting ` 300 crores, what
is the equilibrium income. Also find the size of the multiplier.
Q.17. What is the basic difference between two expression: ex-ante and ex-post?
Q.18. Can consumption exceed income? If yes, what is the saving then?
Q.19. Given autonomous consumption (C) = 500 crores, MPC (b) = 0.8, write equation
of consumption function and determine value of consumption when income (Y)
= ` 3000 crores.
Q.20. As a result of increase in investment by 1000 crores, national income increases by `

5000 crores. Find out value of multiplier, MPC and MPS.
Q.21. What is meant by effective demand in the context of short run fixed price?
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Unit – 4 (Government budget and the economy)
Q.1. Is deficit budget a sign of government inefficiency?
Q.2. It is said that fiscal deficit is a reflection on government borrowing. How?
Q.3. Describe the implications of fiscal deficit.
OR
Explain the meaning and implications fiscal deficit.
Q.4. What is the basis of classifying taxes into direct tax and indirect tax?
Q.5. Can there be fiscal deficit without a revenue deficit?
Q.6. Distinguish between debt creating capital receipts and non-debt creating capital
receipts. Give three examples of each.
Q.7. Give measures to reduce fiscal deficit, especially in the context of Indian economy.
Q.8. State three objectives of a government budget.
Q.9. What are two components of government budget?
Q.10. State four items each of revenue receipts and capital receipts of government.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
42
Unit – 5(Balance of Payments)

Q.1. Is a rising reserve of India’s foreign exchange a sign of our rising exports?
Q.2. How does ‘export/import’ component affect the circular flow of income in a country?
Q.3. Give two reasons for a rise in demand for a foreign currency when its price falls.
Q.4. Distinguish between balance of trade and current account balance.
Q.5. Name the components of current account of balance of payments account. What
does a deficit in currency account indicate?
Q.6. Which one of following are the items of balance of payments as (a) Current account
and (b) Capital account:
(i) Import of machinery

(ii) External assistance
(iii) NRI deposits
(iv) Exports of goods
(v) Commercial borrowing
(vi) Service rendered by shipping companies
(vii) Foreign investment
(viii) Royalty payments
Q.7. Categorise the following items of current account of balance of payments in to visible
items and invisible items:
(i) Import of petrol

(ii) Export of tea and jute
(iii) Remittances from abroad
(iv) Software service exports
(v) Royalty payments
(vi) Service rendered by insurance companies
(vii) Gold jewellery exports
(viii) Payments for import of machinery
Q.8. State components of Balance of payments (BOP) account.
Q.9. What is meant by BOP? How it is different from Balance of trade (BOT).
Q.10. Distinguish between current account and capital account of BOP account.
Q.11. State any four items each of current account and capital account of BOP.
43
Q.12. State four sources each of demand for foreign exchange and supply of foreign
exchange.
Q.13. Why does a rise in foreign exchange rate cause a rise in its supply?
============================================
(PART–B) : Indian Economic Development
Chapter–1 Indian economy on the Eve of Independence
Q.1. What is meant by a semi-feudal economy?
Q.2. Indian economy was a semi-feudal economy at the time of independence. Explain.
Q.3. How did Railways applied a check on the occurrence of famines during the colonial
period?
Q.4. How would you support the view that the destruction of handicraft in India coincided
with the industrial revolution in Great Britain?
Q.5. How did discriminatory trade policy contribute to the success of industrial revolution
in Great Britain?
Q.6. The policy of colonial exploitation of the Indian economy during the British Raj had
some positive side effects for the Indian economy. Do you agree? Justify.
Chapter –2 Indian Economy (1950-90)
Q.1. Why India’s economic planning is called democratic planning?

Q.2. “The establishment of the NITI has given a completely new dimension to the process
of development planning in the country.” Comment.
Q.3. What is the basis of working of NITI Aayog?

Q.4. What led to the failure of five year plans in India? Give two specific reasons.
Q.5. Reliance on public sector enterprises in five year plans was a tactical mistake. Do you
agree with this view?
44
Chapter –3 Liberalisation, Privatisation & Globalisation : An Appraisal
Q.1. Mention three drawbacks of green revolution in India.
Q.2. Features of Indian agriculture reveal the story of its backwardness. Do you agree?
Q.3. How far would you rely on technology as a means to increase productivity in
agriculture?
Q.4. Institutional reforms have played a significant role in transforming Indian agriculture.
How?
Q.5. Explain briefly the measure adopted by New Economic Policy?

Q.6. What is meant by agricultural subsidy?
Q.7. What is MUDRA bank? Why was it established?
Q.8. Why is foreign direct investment considered better than portfolio investment?
Q.9. When and why FEMA was implemented?
Chapter – 4 Poverty
Q.1. Do you think that poverty has shifted from rural to urban areas? If so why?
Q.2. What is the relation between per capita per day calorie and per capita monthly
consumption expenditure?
Q.3. Explain how rising prices of foodgrains adversely affect the poor?
Q.4. Explain the difference between absolute poverty and relative poverty.
Q.5. What is vicious circle of poverty?
Q.6. Evaluate the efforts made to solve the problem of poverty.
Q.7. Sickness and inefficiency are related to poverty. How?
Q.8. Does population growth always compound the problem of poverty?
Q.9. Economic equality and GDP growth may not move in the same direction. Comment.
45
Chapter–5 Human Capital formation
Q.1. Discuss the following:

a. Is present gender equity better than before?
b. Are we able to achieve ‘Education for All’ objective?
Q.2. What is the current level of government expenditure on education?
Q.3. What is the desired level of government expenditure on education?
Q.4. Define the following:
a. Elementary education
b. Vocational education
c. Gross enrolment ratio
Q.5. Why do we need to invest in human capital?
Q.6. Migration leads to human capital formation. How?
Q.7. Education is an important ingredient of growth. Comment.
Chapter-6 Rural Development
Q.1. “Subsistence farming reduces market risks.” Comment.

Q.2. Why is it easier to obtain non institutional credit rather than institutional credit?
Q.3. How organic farming promotes sustainable development?

Q.4. How is diversification of crop production different from diversification of productive
activities?
Q.5. What proportion of total rural credit in India is presently provided by the institutional
sources?
Q.6. What is micro finance?
Chapter-7 Employment
Q.1. What do you mean by “jobless growth”?

Q.2. What is casualisation/informalisation of workforce?
Q.3. Explain how liberalization has made unemployment problem more serious in India?
46
Q.4. Who are hired workers? Mention their types.

Q.5. Urban unemployment is a spillover of rural unemployment. Justify.
Q.6. Explain how unemployment and poverty are reflections of each other?
Q.7. “All economic activities are productive activities.’ Defend or Refute. Give reasons.
Chapter-8 Infrastructure
Q.1. How are economic and social infrastructure complementary to each other? Give two
observations.
Q.2. “Infrastructural facilities raises productivity in the tertiary sector of the economy.”
Comment.
Q.3. Explain how use of non-commercial energy leads to environmental degradation?
Q.4. Explain how health indicators in India have shown improvements over the years?
Q.5. Is an increase in GDP enough to improve infrastructural facilities? Justify.
Q.6. Is infrastructure a supporting structure? How does it contribute to economic

development?
Chapter-9 Environment and Sustainable Development
Q.1. What makes development unsustainable?

Q.2. What is global warming?
Q.3. What is meant by carrying capacity of environment?
Q.4. What is the main difference between economic development and sustainable
development?
Q.5. Check on population growth in India will lead to a check on environmental pollution.
Justify.
Q.6. How migration from rural to urban areas leads to environmental degradation?
Q.7. Give two examples on how carrying capacity of environment is being challenged in
India.
47
Q.8. Give two instances of: (a) overuse of environmental resources (b) misuse of
environmental resources.
Chapter-10 Comparative Development Experiences of India and its Neighbours
Q.1. In certain parameters of development, Pakistan has an edge over India. Explain.
Q.2. What makes China stand out in comparison to India and Pakistan?
Q.3. China’s rapid industrial growth can be tracked back to its reforms in 1978. Do you
agree? Elucidate.
Q.4. Define liberty indicator. Give some examples of liberty indicators.

Q.5. Briefly discuss development strategy of China and Pakistan.
48
Multiple Choice Questions

Part A : Macro Economics
1. Which of the following is not a flow variable?

a) Income
b) Capital formation
c) Supply of money in a country
d) Leakage of water from a water-tank.
2. Vegetables used by the households is an example of:
a) Capital goods c) Consumption goods
b) Intermediate goods d) None of these
3. National income is often estimated as :
a) NDPat FC c) NDP at MP
b) NNP at MP d) NNP at FC
4. Difference between national and domestic income is that of
a) Net indirect taxes c) Consumption of fixed capital
b) Net factor income from abroad d) Both (a) and (b)
5. Which of the following makes GDP an inappropriate index of welfare?
a) Non-monetary transactions
b) Externalities
c) Composition and distribution of GDP
d) All of the above
6. Which of the following is not a transfer payment?
a) National debt interest c) Old age pensions
b) Retirement pensions d) Donations
7. Who supplies money in India?
a) RBI c) Government
b) Commercial banks d) All of the above
8. Which of the following is not a measure of credit control?

a) CRR c) Bank rate
b) SLR d) Managed floating
9. Which of the following is not the function of commercial banks?
a) To accept deposits c) To create credit
b) To offer loans d) To fix CRR
49
10. If MPC is 0.4 and change in Y is 1000, what will be ∆S?

a) 400 b) 500 c) 600 d) 250
11. Propensity to save means:
a) Ratio of saving to income c) Tendency to save less
b) Tendency to save more d) None of these
12. The slope of Saving line is indicated by:
a) MPC c) 1-MPC
b) MPS d) Both (b) and (c)
13. If MPC= MPS, the value of multiplier will be:
a) 0 b) 1 c) 2 d) ∞
14. Inflationary gap :
a) Raises the level of output
b) Does not impact the level of output
c) Raises the general price level
d) Both (b) and (c)
15. Excess or deficient demand can be corrected through:
a) Fiscal policy c) Both (a) and (b)
b) Monetary policy d) None of these
16. Which of the following is not a non-tax receipt?
a) Fees c) Gift tax
b) Fines d) Grants and donations
17. Which of the following are capital receipts of the government?
a) Recovery of loans c) Disinvestment
b) Borrowings d) All of these
18. The difference between fiscal deficit and interest payment is called:
a) Revenue deficit c) Budget deficit
b) Primary deficit d) Capital deficit
19. Direct foreign investment is a source of:
a) Demand for foreign exchange c) Both (a) and (b)
b) Supply of foreign exchange d) None of these
20. Cause of BOP imbalance relates to:

a) Autonomous items c) Both (a) and (b)
b) Accommodating items d) Neither (a) nor (b)
50
21. Disequilibrium in BoP leads to:

a) Increase in official reserves with c) Both (a) and (b)
RBI d) None of these.
b) Decrease in reserves with RBI
22. What is the relation between supply of foreign exchange and exchange rate?
a) Inverse c) One to one
b) Direct d) No relation
23. If the primary deficit is 6900 and interest payment is 600, then fiscal deficit is:
a) 6,300
b) 7,500
c) 7,400
d) 7,300
24. Identify the following items as visible or invisible items:

a) Export of computer software
b) Import of LCD screen from Malaysia
c) Banking services to NRI
d) Export of tea to Thailand
25. Which of the following is not a component of Balance of Payment?
a) Current account
b) Capital account
c) Nominal account
d) None of these
Part B : Indian Economic Development
1. In the initial years, yield from organic farming are --------- modern agricultural
farming.
a) Less than c) Equal to
b) More than d) Double of
2. The number of persons who are actually employed at a particular time are known
as:
a) Labour force c) Both (a) and (b)
b) Workforce d) Neither (a) nor (b)
3. Which is not a part of commercial energy?
a) Agricultural waste b) Coal
51
c) Petroleum d) Electricity
4. Presently in India, forests occupy ______ % of total area.
a) 32 c) 25
b) 22 d) 30
5. GLF campaign was introduced by Mao Tse Tung in which year?
a) 1957 c) 1959
b) 1958 d) 1968
6. Allied agricultural activities are:
a) Agro processing c) Tourism
b) Food processing d) All of the above
7. Formal sector is one which employs _____ hired workers or more.
a) 100 c) 10
b) 50 d) 20
8. ______________ Sector has the largest share in total commercial energy?
a) Agricultural c) Transport
b) Industrial d) Household
9. What happens when the rate of resource extraction exceeds that of their
regeneration?
a) Environmental crisis c) Ozone depletion
b) Global warming d) None of these
10.PCI of India is –
a) Less than Pakistan c) Equal to Pakistan
b) More than Pakistan d) None of these
11.Who was the founder of HYV seeds?
a) Norman E Barlang c) Dr Swaminathan
b) Dada Bhai Naoroji d) None of these
12.Who forms the major section of workforce in India?
a) Men in rural areas c) Men in urban areas
b) Women in rural areas d) Women in urban areas
13.In which sector PLF term is used to measure operational efficiency?
a) Nuclear power c) Bio gas plant
b) Thermal power d) Tidal energy
14.The central pollution control board was set in which year?
a) 1974 c) 1947
b) 1950 d) 1991
52
15.Which country has the higher value of HDI?

a) India c) Pakistan
b) China d) None of these
16.When was NHRM launched?
a) 2001 c) 2005
b) 2002 d) 2009
17.In which country, the largest contribution is of the service sector to GDP?
a) China c) Pakistan
b) India d) Russia
18.Schedule A comprises of industries which would be exclusively owned by:
a) government c) both a and b
b) Private sector d) none
19.Landholdings at the time of independence were:
a) Fragmented c) Economic
b) large d) None of these
20.------------- refers to an arrangement by which central problems of an economy are
solved:
a) Economic system c) Mixed economy
b) Modernisation d) Socialist economy
21. In which year India adopted High Yielding Variety programme for the first time?
a) 1977 c) 1986
b) 1966 d) 1956
22. Directive planning is pursued under:
a) capitalist economy c) Mixed economy
b) socialist economy d) none of these
23. Which was the last five year plan in India?
a) Eleventh plan c) Thirteenth plan
b) Twelfth plan d) Fourteenth plan
24. Price Support policy focuses on:
a) low price of the farm output c) Stability of income from
b) High price of the farm farming
output d) Both a and b
25. Which of the following was not the reason for initiation of economic reforms in
1991?
a) Poor performance of PSU’s c) Mounting fiscal deficit
b) Fall in foreign exchange d) High growth rate of
reserves population
53
SAMPLE PAPER 1
PART A – Macro Economics (40marks)
Q1. State True/False with reason: [1]
“Real GDP can be equal to nominal GDP.”
Q2. Will a firm invest, if its MEI is 12% and rate of interest is 10%? Give reason. [1]
Q3. Indicate which currency is appreciating and which one is depreciating if a change from
` 95 = 2 US $ to `150 = 3US $. [1]
Q4. State whether the following constitute demand or supply of foreign currency:- [1]
(i) Import of goods from china (ii) Foreign tourists visit Taj Mahal
Q5. From the following data, calculate its net value added at factor cost:- [3]
` (lakhs)
Subsidy 40
Sales 800
Depreciation 30
Exports 100
Closing Stock 20
Opening Stock 50
Intermediate purchase 500
Purchase of machinery for own use 200
Import of raw material 60
Q6. In an economy, the equilibrium level of income falls short by ` 500 crores. Calculate
the additional investment needed to achieve the equilibrium level of income, if
80% of increased income is spend on consumption. [3]
OR
Explain the meaning of investment multiplier. What are its maximum and minimum
values and why?
Q7. Discuss the role of the government in correcting excess demand with diagram. [4]
Q8. Draw a straight line consumption function. From it, derive a saving curve. Explain the
process of derivation. [4]
Q9. [4]
(i) Define foreign exchange rate. Why does a rise in foreign exchange cause a rise in its supply.
(ii) Distinguish between revaluation and appreciation of domestic currency.
OR
54
Briefly discuss the major reasons for demand and supply of foreign exchange.
Q10. Explain the process of money creation with the help of a numerical example. [6]
Q11. From the following data, calculate national income by income method and expenditure
method. [6]
Items ` (in crores)
Private final consumption 2000
Net Capital formation 400
Change in stock 50
Compensation of employees 1900
Rent 200
Interest 150
Operating surplus 720
Net Indirect tax 400
Employers contribution to social security 100
Net exports 20
Net factor income from abroad (–)20
Government final consumption 600
Consumption of fixed capital 100
Q12. State True/False, giving reason for any four:- [6]

(i) Revenue receipts from non tax revenue are always more as compared to tax revenue.
(ii) Government budget is a statement of actual receipts and payments of government.
(iii) Rise in revenue deficit will always lead to higher fiscal deficit.
(iv) GST is an indirect tax.
(v) Increase in fiscal deficit does not affect the primary deficit.
55
SAMPLE PAPER 2
PART A – Macro Economics (40marks)
Q.1. What is meant by Induced consumption? [1]
Q2. Who regulates money supply in India? [1]

(i) Government of India (iii) Commercial Banks
(ii) Reserve Bank of India (iv) State Bank of India
Q3. What is discount rate? [1]
Q4. High Propensity to consume is a virtue, while high propensity to save is not. Do you
agree? Why or why not? [1]
Q5. What is revenue deficit? What are the implications of a large revenue deficit? [3]
Q6. Distinguish between current account and capital account of Balance of payment. [3]
OR
State the components of capital account of Balance of payments.
Q7. Explain national income equilibrium through aggregate demand and aggregate supply.
Use diagram. Also explain the changes that take place in an economy if planned
spending is greater than planned output. [4]
OR
Explain with the help of a numerical example how does increase in investment in an
economy affect its level of income?
Q8. Giving reasons, explain how should the following be treated in estimating National
income. [4]
(i) Expenditure on maintenance of a building.
(ii) Expenditure on education of children by a family.
Q9. Explain the following functions of Central Bank: [4]
(i) Banker’s bank and supervisor
(ii) Custodian of foreign exchange reserves.
Q10. [3+3=6]
(i) Identify the following as Revenue receipt or Capital receipt. Give reason for
your answer.
(a) Recovery of Loans.
(b) Grants from foreign government.
(c) Interest received on loan.
(ii) Recently Government of India has doubled the import duty on gold. What
impact is it likely to have on foreign exchange rate and how?
56
Q11. Explain the concept of ‘Inflationary gap’ with the help of a diagram. Also give
two fiscal and two monetary measures to correct this gap. [6]
Q12. [6]
(i) What is real GDP? State any two limitations of GDP as an index of economic
welfare.
(ii) Explain the problem of double counting in estimating national income with
the help of an example. Also explain two alternative ways of avoiding the
problem.
OR
From the following data, calculate:
(i) Gross Domestic Product at Market Price and
(ii) Factor Income from Abroad
Contents (` in Cr.)
1. Gross National product at factor cost 6150
2. Net exports (–)50
3. Compensation of employees 3000
4. Rent 800
5. Interest 900
6. Profits 1300
7. Net Indirect taxes 300
8. Net domestic capital formation 800
9. Gross fixed capital formation 850
10. Change in stock 50
11. Dividend 300
12. Factor income to abroad 80
57
SAMPLE PAPER 1
PART B – Indian Economic Development (40marks)
Q.1. Answer the following questions:- [1×4=4]
(i) Define worker – population ratio.
(ii) Define liberalization.
(iii) Give the percentage of GDP spent on education sector in India (at present).
(iv) What is the period of twelfth five year plan?
Q.2. Discuss in brief the occupational structure of India during the British period. [3]
Q.3. Explain “growth with equity” as a planning objective in India. [3]
Q.4. Write a short note on growth of education sector in India since independence. [3]
Q.5. Briefly explain the factors responsible for introduction of Economic reforms in India.
[3]
Q.6. Define Globalisation. State its components. How does WTO promote globalisation?
[1+1+2=4]
Q.7. Define poverty. Describe three major causes responsible for poverty in India.
[1+3=4]
OR
Define poverty. State 3 remedies for eradication rural poverty in India.
Q.8. Give 3 different sources of human capital formation. How is investment in education
an important source of human capital formation? [2+2=4]
Q.11. Compare the growth rate trends witnessed in China and India in the last two
decades. What does it indicate? [6]
Q.12. What is infrastructure? How does infrastructure contribute to the economic
development of a country? [1+5=6]
OR
What do you mean by sustainable development? Is problem of pollution affecting
present generation or problem of resource depletion affecting future generation?
SAMPLE PAPER 2
Q.1. Devaluation means:- [1]
(i) to reduce the value of home currency in other currency.
(ii) to appreciate the value of home currency.
(iii) to issue new currency in place of new currency.
(iv) none of these.
58
Q.2. GLF campaign was introduced in which year and by whom? [1]
Q.3. “Liberalisation and privatization are the only core components of India’s new
economic policy.” True or False? Give reasons. [1]
Q.4. Name the two areas of development where India has topped Pakistan. [1]
Q.5. Why is industrialization considered synonymous with economic growth? [3]
OR
Evaluate the Inward looking trade policy of the government during 1950-90.
Q.6. How is a market economy different from a centrally planned economy? [3]
Q.7. Give a brief account of demographic indicators of India, Pakistan and China. [3]
Q.8. Explain the term “Growth with social justice.” [3]
Q.9. “Features of Indian agriculture itself explains the story of its backwardness.” Put out
your views in reference to this statement. [4]
Q.10. Give a critical appraisal of development strategies of China, India and Pakistan.[4]
Q.11. Describe in brief the colonial exploitation of Indian economy under the British rule.
[4]
OR
State the main features of Indian economy at the time of independence.
Q.12. [3+3=6]
(i) State any three obvious gains and imperative losses of privatization.
(ii) What is outsourcing? State its two advantages both for developed and
developing economies.
Q.13. Compare the economies of China, India and Pakistan on the basis of GDP. [6]
OR
Give a brief description of the development paths adopted by China, India and
Pakistan.
SAMPLE PAPER 3
Q.1. Do you think that in the last 50 years employment generated in the country is
commensurate with the growth of GDP in India? How? [1]
Q.2. Cooperative marketing is a measure to ensure a fair price to farmers. Why? [1]
Q.3. Infrastructure contributes to the economic development of a country. Do you agree?
Explain. [3]
OR
What are the various sources of energy? How do you classify them?
59
Q.4. How does investment in human capital contribute to growth? [3]

Q.5. “Health care in India is an emerging challenge of social infrastructure”. In the light
of this statement explain the different problems of health sector. [3]
Q.6. ‘Education plays a significant role in economic development’. Comment. [3]
Q.7. The institutional finance plays a vital role in promoting rural development in India.
Describe. [4]
Q.8. What do you mean by usual status unemployment? Describe the various causes of
unemployment in India. [1+3=4]
OR
Analyse the following trends in sectoral distribution of workforce in India.
Items 1972-73 1983-84 1993-94 1999-2000
Primary 74.3 69 64 60.4
Secondary 10.9 13.8 16 15.8
Tertiary 14.8 17.2 20 23.8
Q.9. [3+3=6]
(i) An inflationary gap arises when aggregate demand exceeds the maximum
potential supply in an economy. To overcome this situation, what monetary
measures have been taken by the Central Bank of India?
(ii) “If cost or demand rises, prices are bound to increase”. In the context of this
statement explain the causes of such rise in prices.
Q.10. Explain any three pressing environmental concerns of India. [6]
OR
What is sustainable development? Mention any two major concerns with regard to
sustainability of development in the whole world. What efforts should be made to
make sustainable development a reality?
Q.11. [3+3=6]
(i) Why did RBI have to change its role from controller to facilitator of financial
sector in India?
(ii) The benefit of being a member country of WTO is limited for countries like
India. Why?
SAMPLE PAPER 4
Q.1. Which five year plan recognized the importance of Human Capital? [1]
(i) 1st FYP (ii) 5th FYP (iii) 7th FYP (iv) None
Q.2. Define worker population ratio. [1]
60
Q.3. Agricultural sector appears to be adversely affected by the reform process. Do you
agree? Give three reasons. [3]
Q.4. [3]
(i) Suppose you are a poor family in the city and you wish to get help from the
government to set up a petty shop. Under which scheme will you apply for
assistance and why?
(ii) Is it correct to say that poverty has shifted from rural to urban areas? Give
reasons to show how the composition of poor has been changing overtime.
Q.5. Why were reforms introduced in India in 1991? Elaborate any three reasons. [3]
Q.6. Explain any three steps taken by the government to develop rural markets. [3]
OR
Define rural development. Elaborate any two key issues related to it.
Q.7. Describe any four problems that affect the development of human capital formation
in India. [4]
OR
Write a short note on:
(i) Navodaya Vidyalayas (ii) IGNOU
Q.8. [4]
(i) Define Jobless growth.
(ii) If you are asked to advice the village panchayat, what kind of activities would
you suggest for the improvement of the village that could also generate
employment.
Q.9. Discuss the various causes of inflation. [6]
Q.10. [3+3=6]
(i) Both economic and social infrastructure are crucial for development of a
country. Do you agree? Give reasons.
(ii) Critically evaluate the health system in India. Give three points.
Q.11.How do the following factors contribute to the environmental crisis in India (attempt
any three) [2×3=6]
(i) rising population (iii) Air Pollution
(ii) reduction of forest cover (iv) Loss of bio diversity
61
CBSE Examination Paper (MACROECONOMICS) – 2017-18
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64
65
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CBSE Examination Paper (MACROECONOMICS) – 2018-19
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DELHI PUBLIC SCHOOL Assignment Booklet

Indirapuram, Ghaziabad (Class - XII : Economics)

SYLLABUS (CBSE – 2019– 20)

PART A :- INTRODUCTORY MACROECONOMICS

Guidelines for Project Work in Economics

The objectives of the project work are to enable learners to:

Scope of the project:

Collection of the research material/data

Organization of material/data Present

Analysing the material/data for conclusion

Draw the relevant conclusion

Presentation of the Project Work

Mode of presentation/submission of the Project:

In case of any doubt, authenticity should be checked and verified.

MONTH WISE BREAK UP OF SYLLABUS (2019-20)

PART B : INDIAN ECONOMIC DEVELOPMENT

PART B : INDIAN ECONOMIC DEVELOPMENT

PART B : INDIAN ECONOMIC DEVELOPMENT

(iii) Importance of human capital formation

Unit III : Determination of Income and Employment

(i) Aggregate demand and its components.

PART (B) :- INDIAN ECONOMIC DEVELOPMENT

Part (A):- MACROECONOMICS

UNIT 1 :NATIONAL INCOME AND RELATED AGGREGATES

UNIT 2 :MONEY AND BANKING

Chapter 6 :Banking:Commercial Banks and The Central Bank

UNIT 3 :DETERMINATION OF INCOME AND EMPLOYMENT

Chapter 7: Aggregate Demand and Related Concepts

Part (B):- INDIAN ECONOMIC DEVELOPMENT

UNIT 1 :DEVELOPMENT EXPERIENCE (1947-90) AND ECONOMIC

Part (B):- INDIAN ECONOMIC DEVELOPMENT

Chapter 8:- Infrastructure

(iv) Meaning of managed floating exchange rates.

Part (B):- INDIAN ECONOMIC DEVELOPMENT

Unit III: Development Experience Of India –A Comparison With Neighbours

Chapter-10:- Comparative Development Experiences of India and its Neighbours –

Revision for Pre Board Examinations

ASSIGNMENTS (Unit Wise)

UNIT I – National Income and Related Aggregates (1)

Q.11. What is a GNP deflator?

(ii) Scholarships given to students by the government.

(i) Profits earned by foreign banks from their branches in India.

(iii) Sales by firm Q to households 60

Q.11. From the following data, calculate National Income:

(ix) Direct taxes paid by households 300

Q.17. Calculate National Income.

(iv) Consumption of fixed capital (depreciation) 20

(vi) Profits 100

Income Consumption Savings Investment AD AS = Y

UNIT IV – Government Budget and the Economy

UNIT V Balance of Payments

Part (B):– Indian Economic Development

Chapter 4:- Poverty

Q.3. Distinguish between formal and informal sources of credit.

Chapter 8:- Infrastructure

Chapter 10:- Comparative Development Experiences of India and its

HOTS (Higher Order Thinking Skills)

Q.10. With the help of following data, calculate National Income:

(i) Compensation of employees paid by a foreign company located in India.