Series : HMJ/4 SET – 3

 .
Code No. 58/4/3
 .    -  -
Roll No.    
Candidates must write the Code on
the title page of the answer-book.

 NOTE
(I)       -   (I) Please check that this question
 15   paper contains 15 printed pages.
(II) -          (II) Code number given on the right
  -  -    hand side of the question paper
should be written on the title page
of the answer-book by the
candidate.
(III)      -  34  (III) Please check that this question
  paper contains 34 questions.
(IV)         (IV) Please write down the Serial
,       Number of the question in the
answer-book before attempting
it.
(V)  -     15   (V) 15 minute time has been allotted
     -    to read this question paper. The
question paper will be distributed
 10.15     10.15  
at 10.15 a.m. From 10.15 a.m. to
10.30     -   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.

 ()
ECONOMICS (Theory)
  :
3    : 80
Time allowed : 3 hours Maximum Marks : 80

.58/4/3. 324C 1 P.T.O.

  :
           
(i) -     –         
(ii)   1  10  18  27 -    ,   1    
         
(iii)   11  12  28  29 -    ,   3    
   60  80    
(iv)   13  15  30  32  -    ,   4  
     80  100    
(v)   16  17  33  34     ,   6    
   100  150    
(vi)                
 
(vii) -        , -     , - 
   , -       -      
               
(viii)  , ,            

 – 
( )
1.    (APS)   0.2    ` 4,000  ,  
________   (     )
() ` 4,000  () ` 3,200 
() ` 3,800  () ` 2,600  1

2.      ,      ______ (/)   
(        ) 1

3.   ,        :

‘       ’ 1
.58/4/3. 2
General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) Question paper comprises two Sections – A and B. All questions are
compulsory.
(ii) Question number 1 – 10 and 18 – 27 are very short-answer questions
carrying 1 mark each. They are required to be answered in one word or
one sentence each.
(iii) Question number 11 – 12 and 28 – 29 are short-answer questions
carrying 3 marks each. Answers to them should not normally exceed
60 – 80 words each.
(iv) Question number 13 – 15 and 30 – 32 are also short-answer questions
carrying 4 marks each. Answers to them should not normally exceed
80 – 100 words each.
(v) Question number 16 – 17 and 33 – 34 are long answer questions
carrying 6 marks each. Answers to them should not normally exceed
100 – 150 words each.
(vi) Answer should be brief and to the point also the above word limit be
adhered to as far as possible.
(vii) There is no overall choice. However, an internal choice has been
provided in 2 questions of one mark, 2 questions of three marks,
2 questions of four marks and 2 questions of six marks. Only one of
the choices in such questions have to be attempted.
(viii) In addition to this, separate instructions are given with each section
and question, wherever necessary.

SECTION – A
(Macro-economics)
1. If the value of Average Propensity to Save (APS) is 0.2 and National
Income is ` 4,000 crore, then consumption will be ______.
(Choose the correct alternative.)
(a) ` 4,000 crores (b) ` 3,200 crores
(c) ` 3,800 crores (d) ` 2,600 crores 1

2. Loans offered by commercial banks ______ (increase/decrease) the money

supply in the economy.
(Fill up the blank with correct alternative.) 1

3. State, whether the given statement is true or false :

‘Unexpected obsolescence is a component of depreciation.’ 1
.58/4/3. 3 P.T.O.
4.      _______  _______  
(        ) 1

     _______  
(     )
()       ()      
()       ()       1

5.     _______     

(     )
()   ()  
() -   () -   1

6.  ,      ` 2,000   ________ (/)     

(         ) 1

7.   ,        :

“          ,        1

8.       1

9.    ‘   ’       1

10.  - ()     1

11          (NVAFC)    
..   (`  )
(i)    800
(ii)   200
(iii)   30
(iv)  20
(v)  50
(vi)    50 3

             3
.58/4/3. 4
4. Two components of money supply are _____ and _____.
(Fill up the blank with correct answer). 1
OR
The main aim of monetary policy is _____.
(Choose the correct alternative)
(a) to bring price stability in the economy.
(b) employment generation in the country.
(c) to increase trade surplus.
(d) to generate greater tax revenue. 1

5. The sum of factor payments is equal to _______.

(Choose the correct alternative.)
(a) Domestic Income (b) National Income
(c) Per Capita Real Income (d) Per Capita Nominal Income. 1

6. ` 2,000 note lying in wallet of Rohini, a student is an example of ______

(stock/flow) variable.
(Fill up the blank with correct alternative.) 1

7. State, whether the given statement is true or false :

‘Expenditure on Ujjwala Yojana launched by the Government is an
example of capital expenditure.’ 1

8. Define intermediate consumption. 1

9. Give any one example of ‘debt creating capital receipts’ in the Government
Budget. 1

10. Define unplanned inventories (stock). 1

11. Calculate Net Value Added at Factor Cost (NVAFC) from the following data :
S. No. Particulars Amount (in ` crores)
(i) Value of Output 800
(ii) Intermediate Consumption 200
(iii) Indirect taxes 30
(iv) Depreciation 20
(v) Subsidies 50
(vi) Purchase of machinery 50 3

OR
State the three components of Income from Property and Entrepreneurship. 3
.58/4/3. 5 P.T.O.
12. “             ,  ()  
        ”         
  GDP        ,       
  3

13.        ,         , 
          4

14.    ‘  ’       4

15.    ‘  ,   ’       4

 ,     ‘ ’         4

16. ()      ,    

      :
..  
(i) – ` 700 
     (A)
(ii)
   (MPC) 0.8
(iii)   ` 4000  3
()      ,      

(i)         (APS)       ? 1½
(ii) ‘OA’          ? 1½

     

() (i)      
(ii)      1+2

.58/4/3. 6
12. “Management of a water polluting oil refinery says that the it (oil
refinery) ensures welfare through its contribution to Gross Domestic
Product.”
Defend or refute the argument of management with respect to GDP as a
welfare measure of the economy. 3

13. Define effective demand. Discuss how effective demand can be restored if
ex-ante saving is less than ex-ante investment. 4

14. Elaborate the objective of ‘allocation of resources’ in the Government

Budget. 4

15. Explain the function of Central Bank as ‘Banker, Agent and Advisor’ of
the Government. 4
OR
Elaborate, how does a Central Bank stabilize money supply through ‘Bank
Rate’. 4

16. (a) Given the following information, state whether the economy is in
equilibrium or not :
Sr. Particulars Amount
No.
(i) Autonomous Consumption &
–
Investment Expenditure (A) ` 700 crores
(ii) Marginal Propensity to Consume (MPC) 0.8
(iii) National Income ` 4,000 crores 3
(b) Answer the following questions based on the figure given below :

(i) At which level of income Average Propensity to Save (APS) will

be equal to zero & why ? 1½
(ii) What does ‘OA’ signify with respect to consumption function. 1½
For Visually Impaired Candidates only :

(b) (i) Define consumption function.

(ii) What is the significance of dis-saving ? 1+2
.58/4/3. 7 P.T.O.
17.    ,             
(i)              
(ii)     -         
(iii) ‘     ’  
       ()  
     23=6


()  ,                3

()    (CAD)     (CAS)      3

 – 
(   )

18.       1

19. ________      (WTO)   1995     

(        ) 1

20.     ________         

(    )
()   () .. 
() ..  () ..  1

21.       1

22.        _______      ,  
          (        ) 1
.58/4/3. 8
17. State, giving valid reasons whether the following statements are true or
false :
(i) Trade deficit is always a great cause of worry for an economy.
(ii) Depreciation of currency has same effect on exports as devaluation of
currency.
(iii) ‘Indians investing in assets abroad’ will be recorded under debit
side of capital account in Balance of Payments. 23=6
OR
(a) Explain, what can be the likely impact of depreciation of the home
currency on imports to the country. 3
(b) Distinguish between Current Account Deficit (CAD) and Current
Account Surplus (CAS). 3

SECTION – B
(Indian Economic Development)

18. Define mixed economy. 1

19. World Trade Organisation (WTO) was established in 1995, as a successor

organisation to _______. (Fill up the blank with correct answer) 1

20. Great Proletarian Cultural Revolution was introduced under the

leadership of _______. (Choose the correct alternative)
(a) Mao Zedong (b) J.L. Nehru
(c) M.K. Gandhi (d) M.A. Jinnah 1

21. Define disguised unemployment. 1

22. _______ policy followed in first seven five year plans of India, aimed at
substituting imports with domestic production.
(Fill up the blank with correct answer) 1
.58/4/3. 9 P.T.O.
23.    ,   _________ (//)     
     (        ) 1

24.   ‘  ’ (GLF)    _______        
(     )
()  () 
()  ()  1

25.            ?

(     )
()   ()    
()     ()    1

26.   ,       :

“         (IBRD)        ” 1

      1

27.      ________       (     )
() 1978 () 1980
() 1988 () 1991 1

28. “                  ”  
         3

“   ,         ”
        ?          3

.58/4/3. 10
23. In the past few decades _________ (primary/secondary/tertiary) sector has
created maximum jobs opportunities in India.
(Fill up the blank with correct alternative) 1

24. The main aim of ‘Great Leap Forward’ (GLF) was to ensure rapid increase
of _______ in China. (Choose the correct alternative)
(a) agriculture (b) industries
(c) services (d) exports 1

25. Which of the following is not a benefit of organic farming ?

(Choose the correct alternative.)
(a) Cheaper inputs
(b) Attractive returns on investment
(c) Greater import possibilities
(d) Higher nutritional value 1

26. State whether the following statement is true or false :

“World Bank is also known as International Bank for Registration and
Delimitation (IBRD).” 1
OR
Define Marketed Surplus. 1

27. Introduction of Economic Reforms in China took place in the year

_________. (Choose the correct alternative.)
(a) 1978 (b) 1980
(c) 1988 (d) 1991 1

28. “Rapid increase in economic growth surely trickles down to the people
under the absolutely poor category.”
Defend or refute the given statement with valid argument. 3
OR
“Human Capital Formation gives birth to innovation, invention and
technological improvements.”
Do you agree with the given statement ? Support your answer with valid
arguments. 3

.58/4/3. 11 P.T.O.
29.                :

      (2015)  (  )

 1.2% 929

 0.5% 941

     , 2015. 3

30.                  4



        ‘’       

   4

31. “                  ”

        ?          4

32. ()    AYUSH ()        
      

()     -      3+1

33.       ?           6

.58/4/3. 12
29. Compare and analyse the given data of India and China, with valid reasons :

Country Annual Growth rate Gender Ratio (Per

of population (2015) thousand males)

India 1.2% 929

China 0.5% 941

Source : World Development Indicators, 2015. 3

30. Discuss briefly any two salient features of India’s pre-independence

occupational structure. 4

OR

Discuss briefly the rationale behind choosing ‘self-reliance’ as a planning

objective for Indian economy. 4

31. “Some economists believe that the economic reforms have adversely

affected the agriculture sector in India.”

Do you agree with the given statement ? Justify your answer with valid

reason. 4

32. (a) State the names of six Indian Systems of Medicines (ISM) under

AYUSH scheme of the Government of India.

(b) Name any two non-conventional sources of energy. 3+1

33. What is meant by sustainable development ? Discuss briefly any two

strategies of sustainable development. 6

.58/4/3. 13 P.T.O.
34 () -          ? 3
()                 
 
    () 1972-2012 (% )
 1972-73 1983 1993-94 1999-2000 2011-2012

 74.3 68.6 64 60.4 48.9

 10.9 11.5 16 15.8 24.3

 14.8 16.9 20 23.8 26.8

 100.0 100.0 100.0 100.0 100.0 3


() “          -     
   ”
  -             ?
() “               
    ”
            3, 3
____________

.58/4/3. 14
34 (a) Define worker-population ratio. What does it signify ? 3
(b) Analyse the trends in sectoral distribution of work force in India on
the basis of data :
Trends in Employment Pattern
(Sector-wise), 1972-2012 (in %)
Sector 1972-73 1983 1993-94 1999-2000 2011-2012
Primary 74.3 68.6 64 60.4 48.9
Secondary 10.9 11.5 16 15.8 24.3
Services 14.8 16.9 20 23.8 26.8
Total : 100.0 100.0 100.0 100.0 100.0 3
OR
(a) “The Prime Minister urged to increase the rural income by
increasing non-farm activities.”
Explain how non-farm activities can lead to rise in income of people
in rural sector.
(b) “Indian health system needs the increased dose of public expenditure
to cure itself.”
Defend or refute the given statement with valid arguments. 3, 3
____________

.58/4/3. 15 P.T.O.
.58/4/3. 16