Economics Outside Delhi Set 3 2022-2023 Commerce (English Medium) Class 12 Question Paper Solution

"In the Annual Budget 2022-23, the Government of India set up disinvestment targets of ₹ 65,000 crore".

Such proceeds from disinvestment can be classified as ______ receipts in the Government Budget as it leads to ______ of the Government.

capital, decrease in assets

revenue, increase in assets

capital, increase in liabilities

revenue, decrease in liabilities

Assertion (A): The Balance of payments is in surplus, if autonomous receipts are greater than autonomous payments.

Reason (R): Autonomous transactions are determined by the difference in the Balance of Payments.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Read the following statements carefully:

Statement 1: The induced consumption shows, the direct relation between consumption and income.

Statement 2: With a certain increase in income, induced consumption also increases.

In the light of the given statements, choose the correct alternative from the following:

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statements 1 and 2 are false.

Ms. lqra Ansari, a teacher, was explaining in her class about various types of deposits with the commercial banks. She quoted that - "These deposits form a part of M1 measure of money supply and are payable on demand by the commercial banks."

Identify the type of deposits she was explaining about and choose the correct alternative:

1. Demand Deposits
2. Time Deposits
3. Post Office Deposits

Only (i)

(i) and (ii)

Only (ii)

(i), (ii) and (iii)

As per the Reserve Bank of India (RBI) press report, dated 22^nd June, 2022:
"Net Foreign Portfolio Investment (FPI) recorded an outflow of US $15.2 billion mainly from the equity market."

The above transaction will be recorded in the ______ account on ______ side of Balance of payments account of India.

current, credit

capital, credit

current, debit

capital, debit

Read the following statements carefully:

Statement 1: Gross Domestic Product (GDP) is the sum total of the gross market value of all the final goods and services added by all the sectors in the economy during a fiscal year.

Statement 2: Gross Value Added at Market Price (GVA_MP) is equal to the excess of value of output over intermediate consumption.

In the light of the given statements, choose the correct alternative from the following.

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statements 1 and 2 are false.

On the basis of the figure given below, identify the type of flow indicated by B and D:

Real flow

Money flow

Nominal flow

National flow

Assuming that, the following data is given for an imaginary economy:

The balance of Trade from 2020 to 2021 ______ by ₹ ______ crore.

increased, 200

increased, 50

decreased, 200

decreased, 50

In order to tackle the problem of rising general price in an economy, government may come up with a surplus budget to achieve the budget objective of ______.

1. reallocation of resources
2. price stability
3. redistribution of income

(i) only

(ii) only

(iii) only

(i) and (iii)

Assertion (A): At the break-even level of income, the value of Average Propensity to Consume (APC) is zero.

Reason (R): Sum of Average Propensity to Consume (APC) and Average Propensity to Save (APS) is always equal to one.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

______ refers to that level of Aggregate Demand, which can be met by the corresponding supply in the economy.

Autonomous Consumption

Effective Demand

Excess Demand

Deficient Demand

In the Indian economy, ______ are issued by the Reserve Bank of India and acts as legal tender money.

1. Coins of all denomination
2. Currency notes of various denominations, except one rupee note
3. Demand deposits

Only (i)

Only (ii)

Only (iii)

(i) and (ii)

______ formulates the Monetary Policy in the economy.

Commercial Banks

International Monetary Fund

Central Bank

Central Government

On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at factor cost (NDP_FC):

On the basis of the data given below for an imaginary economy, estimate the Gross National Product at Market price (GNP_MP):

''The process of credit creation by commercial banks comes to an end when the total of required reserves become equal to the initial deposits."
With the help of a numerical example, prove that the given statement is true.

"In an economy ex-ante Aggregate Demand is more than ex-ante Aggregate Supply."
Explain its impact on the level of output, income and employment.

“In an economy Planned spending is more than Planned output”.

Explain its impact on the level of output, income and employment. 

For a hypothetical economy, assuming there is an increase in the Marginal Propensity to Consume from 80% to 90% and change in investment to be ₹ 2000 crore. 

Using the concept of investment multiplier, calculate the increase in income due to change in Marginal Propensity to Consume.

"Many goods and services which may contribute to welfare, but are not included in estimating Gross Domestic Product (GDP)."

Do you agree with the given statement? Give valid reason in support of your answer.

Distinguish between final goods and intermediate goods. Give an example of each.

Distinguish between Real Gross Domestic Product (GDP) and Nominal Gross Domestic Product (GDP).

State the meaning of 'normal resident' of a country.

Read the following text carefully. Answer the given questions on the basis of the same and common understanding:

1. Differentiate between repo rate and reverse repo rate.
2. Outline and discuss the measure taken by the Monetary Policy Committee of Reserve Bank of India to control inflation. 

Which of the following is NOT true about foreign trade during the colonial rule?

India suffered from a large trade deficit.

Restrictive policies of commodity production, were followed.

Britain maintained a monopoly control over lndia's exports and imports.

India became an exporter of primary products and an importer of finished consumer goods.

______ is a process, which includes all the activities from sowing till sale of the final produce in the market.

Rural Development

Agricultural Diversification

Organic Farming

Agricultural Marketing

______ have emerged as an important micro finance system and led to women empowerment.

NABARD

Self-Help Groups

Commercial Banks

Land Development Banks

Assertion (A): Human capital is not traded in the market; however its services are traded.

Reason (R): Human capital is intangible in nature.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Benefits of physical capital accrue only to private entities, whereas human capital provides private as well as ______ benefits.

profitable

fiscal

social

monetary

Statement 1: China introduced structural economic reforms on its own, without any pressure.

Statement 2: Scholars argue that in India, the economic reforms process led to the worsening of all the economic indicators.

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statement 1 and 2 are false.

Which of the following was NOT the benefit accruing from 'Golden Revolution'?

Increase in the income of the farmers.

Increase in production of milk and related products.

Increase in production and exports of fruits and vegetables.

Employment for women in rural areas.

From the set of the events given in Column-I and the corresponding year in Column-II, choose the incorrect pair:

A - (i)

B - (ii)

C - (iii)

D - (iv)

China initiated ______ in 1958, that aimed at industrializing the country on a massive scale.

The Great Proletarian Cultural Revolution

Setting up of Special Economic Zones

Introduction of Economic Reforms

The Great Leap Forward Campaign

______ acts as a measure of 'the extent of democratic participation in social and political decision-making.'

Human Development Index

Liberty Indicator

Economic Growth

Poverty Index

In an economy, when the rate of resource extraction is lower than the rate of regeneration of the resource, the environment may operate ______.

within its carrying capacity.

beyond its absorptive capacity.

beyond its carrying capacity.

beyond its aesthetic capacity.

Statement 1: Amongst India, China and Pakistan, China is the largest nation and has the higest population density.

Statement 2: One-child policy introduced in the late 1970s in china led to a considerable decline in the population growth rate.

In the light of the given statements, choose the correct alternative from the following:

Statement 1 is true and Statement 2 is false.

Statement 1 is false and Statement 2 is true.

Both Statements 1 and 2 are true.

Both Statements 1 and 2 are false.

On the basis of the data given below, identify the incorrect statement in terms of annual growth of GDP (%): (Choose the correct alternative)

China was able to maintain near double-digit growth during the 1980s.

Pakistan was ahead of India during 1980-2017.

India experienced a rapid rise in Gross Domestic Product during 2015-17.

Both China and Pakistan experienced a decline in growth rate during 2015-17.

"Serious concerns over the climate change is taking over the attention of the world."

In the light of the above statement and image, discuss any two strategies to tackle this global concern of Environmental degradation.

"Recently the Government of India has taken numerous steps towards increasing the farmer's income through agricultural diversification."

In light of the above statement, explain any two advantages of diversification in agriculture.

"Active Government intervention is essential in education and health sectors in India."
Do you agree with the given statement? Give reasons in support of your answer.

Discuss any two merits and demerits of the Green Revolution in the agricultural sector in the Indian economy.

On the basis of the given data: 

1. Identify one income indicator and one health indicator, each.
2. Compare India and China on the basis of any one of the indicator identified above in part (i)

"Expenditure on On-the-job training is an important means of human capital formation in an economy."
Give valid reasons to justify the given statement.

“Organic Farming is the need of the hour to promote sustainable development but, has its own limitations.”

Elaborate any two advantages and limitations each of organic farming in the light of the above statement.

Define Worker Population Ratio. Discuss its usefulness.

‘Mr. Rishi, after completing his education, has joined his family business but his marginal productivity is zero.'

Comment upon the employment status of Mr. Rishi. Give valid reasons in support of your answer. 

‘Kavya works on her family farm and is neither paid in cash nor in the form of grains.’

Can she be categorized as a worker? Give valid reasons in support of your answer. 

“In the late 1990's India experienced a widening gap between the growth of GDP and employment generation”. Discuss. 

Read the following text carefully and answer the given questions on the basis of the same and common understanding.

1. Briefly outline any two reasons for the initiation of Economic Reforms in 1991. 
2. Government introduced a set of stablisation and structural reforms to solve the economic crisis. State the key initiatives and objectives of these policies adopted by the Government of India.