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Q.P. Code 58/C/1
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Candidates must write the Q.P. Code
on the title page of the answer-book.

AW©emñÌ
ECONOMICS
:3 : 80
Time allowed : 3 hours Maximum Marks : 80

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Please check that this question paper contains 23 printed pages.
Q.P. Code given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
Please check that this question paper contains 34 questions.
Please write down the serial number of the question in the
answer-book before attempting it.
15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m.,
the students will read the question paper only and will not write any
answer on the answer-book during this period.
*
58/C/1 ^ 1 P.T.O.
 :
:

(i) 34

(ii) :

(iii) 20

(iv) 4 I 60 80

(v) 6 II 80
100

(vi) : : 4 100 150

(vii)

1. (Real GDP) ___________

1

(a)

(b)

(c) >
(d)

58/C/1 2
General Instructions :
Read the following instructions carefully and strictly follow them :

(i) This question paper contains 34 questions. All questions are compulsory.
(ii) This question paper contains two Sections :
Section A Macro Economics

Section B Indian Economic Development

(iii) This paper contains 20 Multiple Choice Questions Type questions of 1 mark
each.

(iv) This paper contains 4 Short Answer Questions Type-I questions of 3 marks
each to be answered in 60 to 80 words.

(v) This paper contains 6 Short Answer Questions Type-II questions of 4 marks
each to be answered in 80 to 100 words.
(vi) This paper contains 4 Long Answer Questions Type questions of 6 marks each
to be answered in 100 to 150 words.

(vii) Attempt all parts of a question together.

SECTION A
Macro Economics

1. Increase in Real Gross Domestic Product (GDP) implies _____________ in

the economy.

(Choose the correct alternative to fill up the blank) 1

(a) increase in the level of income

(b) increase in the general price level

(c) increase in flow of goods and services

(d) decrease in aggregate demand

58/C/1 3 P.T.O.
2.

1:
2:

, : 1

(a) 1 2

(b) 1 2

(c) 1 2

(d) 1 2

3. (A) ______________
( ) 1

(a)

(b)

(c)

(d)

(B) < ,
<
_____________
( ) 1
(a)
(b)
(c) >
(d)

58/C/1 4
2. Read the following statements carefully :
Statement 1 : Tax is a legally compulsory payment.
Statement 2 : Direct taxes are capital receipts of the government.
In light of the given statements, choose the correct alternative from the
following : 1

(a) Both Statements 1 and 2 are true.

(b) Both Statements 1 and 2 are false.

(c) Statement 1 is true and Statement 2 is false.

(d) Statement 1 is false and Statement 2 is true.

3. (A) Balance of Payments deficit is the excess of ____________.

(Choose the correct alternative to fill up the blank) 1

(a) Current Account Payment over Current Account Receipts

(b) Capital Account Payment over Capital Account Receipts

(c) Autonomous Payments over Autonomous Receipts

(d) Accommodating Payments over Accommodating Receipts

OR
(B) Due to fall in the value of Indian currency ( ) in the foreign
exchange market, the Reserve Bank of India decides to buy Indian
currency (<

This type of action by the Central Bank is possible under

_____________ exchange rate system.
(Choose the correct alternative to fill up the blank) 1

(a) Flexible

(b) Managed floating

(c) Fixed floating

(d) Fixed
58/C/1 5 P.T.O.
4. : (A) (R)
: 1
(A) :
(R) :
:
(a) (A) (R) (R) (A)

(b) (A) (R) (R) (A)

(c) (A) , (R)

(d) (A) , (R)

5. (A) 600 450

(BoT) ___________
( ) 1
(a) 150 (b) 150
(c) 1,150 > (d) 1,150

(B) ________ ________

( ) 1

(a) , (b) ,
(c) , ( > (d) , (

6. __________
( ) 1
(a)
(b)
(c) >
(d)
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4. Read the following statements : Assertion (A) and Reason (R). Choose the
correct alternative from those given below : 1
Assertion (A) : Recovery of loans is a revenue receipt for the government.
Reason (R) : Recovery of loans leads to decline in financial assets of the
government.
Alternatives :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not
the correct explanation of the Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.

5. (A) If a country exports goods worth < 600 crore and imports goods
worth < 450 crore, the value of Balance of Trade of the country
would be in ____________.
(Choose the correct alternative to fill up the blank) 1
(a) deficit of < 150 crore (b) surplus of < 150 crore
(c) deficit of < 1,150 crore (d) surplus of < 1,150 crore

OR

(B) Remittances to Indian economy from abroad would be entered on

___________ side of __________ account of Balance of Payment.
(Choose the correct alternative to fill up the blanks) 1
(a) credit, current (b) credit, capital
(c) debit, current (d) debit, capital

6. A tax whose burden cannot be shifted to others is imposed generally on

_____________. (Choose the correct alternative to fill up the blank) 1
(a) producer of goods
(b) seller of goods
(c) buyer of goods
(d) income earners

58/C/1 7 P.T.O.
7.

, EF ? ( ) 1
(a)
(b)
(c) >
(d)
:
,
________
1
(a)
(b)
(c) >
(d)
8. ____________
1
(a)
(b)
(c)
(d)
9. _____________
) 1
(a) ,
(b)
(c)
(d)

58/C/1 8
7.

In the given figure, what does the gap

(Choose the correct alternative) 1
(a) Deflationary gap
(b) Inflationary gap
(c) Excess demand
(d) Full employment equilibrium

For Visually Impaired Candidates Only :

If in an economy, actual aggregate demand falls short of demand
required to maintain the full employment level, such a situation would be
known as __________. (Choose the correct alternative to fill up the blank) 1
(a) Deflationary gap
(b) Inflationary gap
(c) Excess demand
(d) Full employment equilibrium
8. In order of encourage investments in the economy, the Central Bank may
____________. (Choose the correct alternative to fill up the blank) 1
(a) reduce Cash Reserve Ratio
(b) increase Cash Reserve Ratio
(c) increase Bank Rate
(d) sell off government securities in open market
9. Average Propensity to Consume refers to ____________.
(Choose the correct alternative to fill up the blank) 1
(a) level of income at which savings are equal to income
(b) additional income that is not saved
(c) ratio of savings to the income
(d) ratio of consumption to the income

58/C/1 9 P.T.O.
10.

1:

2:
: 1

(a) 1 2

(b) 1 2

(c) 1 2

(d) 1 2

11. (A) , , 2019 20

(GDP) 5,000 , 3,500 ,

450 400
3

(B)
3

12. : 3

i. 47
ii. 34
iii. - 10
iv. 32
v. 80
vi. 20

58/C/1 10
10. Read the following statements carefully :
Statement 1 : Ex-ante savings represent value of planned savings.
Statement 2 : Savings are directly related to the level of national income.
In light of the given statements, choose the correct alternative from
following : 1
(a) Both Statements 1 and 2 are true.
(b) Both Statements 1 and 2 are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 1 is false and Statement 2 is true.

11. (A) Suppose in an imaginary economy, Gross Domestic Product (GDP)

at market price in 2019 20 was < 5,000 crore, National Income
was < 3,500 crore, Net Factor Income paid by the economy to rest
of the world was < 450 crore and the Net Indirect Taxes was
< 400 crore.
Estimate the value of consumption of fixed capital for the economy
from the information given above. 3
OR
(B) State any three precautions that are taken while estimating
national income by production method. 3

12. From the following data, calculate Revenue deficit and Primary deficit : 3
Amount
S.No. Particulars
(in < crore)
i. Tax revenue 47
ii. Capital receipts 34
iii. Non-tax revenue 10
iv. Borrowings 32
v. Revenue expenditure 80
vi. Interest payments 20

58/C/1 11 P.T.O.
13. (A)
(i) 2
(ii) 2

(B) (AD) (AS)

4
14. : 4
(a)
(b)
(i) C = 200 + 0·75 Y, C= Y=
(ii) (I0) = < 4,000
15. 4

16. (A) (i) 2

(ii) ?
4

(B)
6

( )
i. 90
ii. 120
iii. 240
iv. 60
v. 2,160
vi. 180
vii. 120
viii. 840
ix. 240
x. 90
xi. 720
xii 540
58/C/1 12
13. (A) State the meaning of the following :
(i) Investment multiplier 2
(ii) Full employment 2
OR
(B) Describe the adjustment mechanism, if ex-ante aggregate demand
(AD) is less than ex-ante aggregate supply (AS). 4

14. From the following data about an economy, calculate : 4

(a) Equilibrium level of national income
(b) Total consumption expenditure at equilibrium level of national
income
(i) C = 200 + 0.75 Y, where C = Consumption, Y = Income
(ii) Investment expenditure (I0) = < 4,000 crore

15. Explain two sources of supply of foreign exchange. 4

16. (A) (i) State the meaning of domestic income. 2

(ii) Discuss briefly how distribution of income affects the welfare
of an economy. 4
OR
(B) From the following data show that, Net Value Added at factor cost
(NVAFC) is equal to the sum of factor income : 6
Amount
S.No. Particulars
(in < crore)
i. Consumption of fixed capital 90
ii. Imports of raw material 120
iii. Change in stock 240
iv. Goods and Services Tax 60
v. Domestic sales 2,160
vi. Distributed profits 180
vii. Retained earnings 120
viii. Purchase of raw material 840
ix. Exports 240
x. Rent and Royalty 90
xi. Compensation of employees 720
xii. Interest 540

58/C/1 13 P.T.O.
17. (i) (RBI) 4 , 2022
(CRR) 50 4 4·5%

RBI 3

(ii) (Store of Value) 3

18.

1: 1991
2: 1991
: 1
(a) 1 2
(b) 1 2
(c) 1 2
(d) 1 2

19. (i) ,
________
1
(a) (b) -
(c) > (d)

(ii) , 8 9

, ________
1
(a) (b)
(c) (d)
58/C/1 14
17. (i)
India (RBI) on May 4, 2022, it has been decided to increase the Cash
Reserve Ratio (CRR) by 50 basis points from 4% to 4.5%.
Analyse the impact of this step of RBI on total credit creation in the
economy. 3
(ii) . 3

SECTION B
Indian Economic Development

18. Read the following statements carefully :

Statement 1 : Economic reforms of 1991 created a growth path for all
the sectors simultaneously.
Statement 2 : Economic reforms of 1991 ensured accelerated growth
rate in agriculture sector.
In light of the given statements, choose the correct alternative from
following : 1
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.

19. (i) An arrangement in which a worker uses his own resources to make
a living is known as __________ employment.
(Choose the correct alternative to fill up the blank) 1
(a) Self (b) Regular-salaried
(c) Casual (d) Wage
OR
(ii) Rohan, the owner of a land, grows only two crops in a year. He
works for 8 9 months and for the rest of the year he remains
unemployed.
In the remaining part of the year, Rohan faces __________
unemployment.
(Choose the correct alternative to fill up the blank) 1
(a) Disguised (b) Seasonal
(c) Frictional (d) Cyclical

58/C/1 15 P.T.O.
20. , 1991
? 1
(a)
(b)
(c) >
(d)

21. _________
1
(a) 6 14 (b) 6 12
(c) 5 13 > (d) 5 14

22.

1: ,
2:
: 1
(a) 1 2
(b) 1 2
(c) 1 2
(d) 1 2

23. -
__________
1
(i)
(ii) -
(iii) -

(a) (i) (ii) (b) (i), (ii) (iii)

(c) (i) (iii) (d) (i)

58/C/1 16
20. Which of the following is not the feature of economic policies pursued
under economic planning of India till 1991 ?
(Choose the correct alternative) 1
(a) Import substitution
(b) Self-reliance
(c) Unrestricted flow of foreign capital
(d) Land reforms

21. The Government of India enacted the ight to Education as a

fundamental right for all children in the age group of _________ years.
(Choose the correct alternative to fill up the blank) 1
(a) 6 14 (b) 6 12
(c) 5 13 (d) 5 14

22. Read the following statements carefully :

Statement 1 : Human capital benefits only individuals and not the
society.
Statement 2 : There are positive externalities of investment in human
capital as society.
In light of the given statements, choose the correct alternative from
following : 1
(a) Statement 1 is true and Statement 2 is false.
(b) Statement 1 is false and Statement 2 is true.
(c) Both Statements 1 and 2 are true.
(d) Both Statements 1 and 2 are false.

23. In order to reduce over-dependence on agriculture sector, it is necessary

to opt for diversification.

With reference to the given statement, diversification includes ________.

(Choose the correct alternative to fill up the blank) 1
(i) Change in cropping pattern
(ii) Shift of workforce to agriculture allied activities
(iii) Shift of workforce to non-agriculture sector

Alternatives :
(a) (i) and (ii) (b) (i), (ii) and (iii)
(c) (i) and (iii) (d) Only (i)

58/C/1 17 P.T.O.
24. (i) : (A) (R)
: 1

(A) :

(R) : -
:
(a) (A) (R) (R) (A)

(b) (A) (R) (R) (A)

(c) (A) , (R)

(d) (A) , (R)

(ii) ___________
1

(a)

(b)

(c)

(d)

25. 1970 ________

1

(a)

(b) -
(c) >
(d)

58/C/1 18
24. (i) Read the following statements : Assertion (A) and Reason (R).
Choose the correct alternative from those given below : 1
Assertion (A) : China has the highest life expectancy in the world.
Reason (R) : Maternal Mortality Rate of India is higher than
that of China.
Alternatives :
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of the Assertion (A).
(b) Both Assertion (A) and Reason (R) are true, but Reason (R)
is not the correct explanation of the Assertion (A).
(c) Assertion (A) is true, but Reason (R) is false.
(d) Assertion (A) is false, but Reason (R) is true.

OR

(ii) In China, reforms were introduced in phased manner. In the second

and later phases, reforms were introduced in ___________ sector.

(Choose the correct alternative to fill up the blank) 1

(a) Agriculture
(b) Industrial
(c) Foreign Trade
(d) Demographic

25. In the 1970s, Pakistan nationalised the industries related to

____________ goods.
(Choose the correct alternative to fill up the blank) 1
(a) Consumer
(b) Sports
(c) Capital
(d) Defence

58/C/1 19 P.T.O.
26. / ?
1
(a) (SAARC) (b) (BRICS)
(c) G-7 > (d) G-20

27. (GDP) , _________

1
(a) (b)
(c) > (d)

28. , - 3

-
CO2

29. (A)
3

(B) 3
58/C/1 20
26. India is not a member of which of the following regional/global economic
groups ? (Choose the correct alternative) 1
(a) SAARC (b) BRICS
(c) G-7 (d) G-20

27. In terms of the sectoral contribution to Gross Domestic Product (GDP),

economy of India is relying more on _________ sector.
(Choose the correct alternative to fill up the blank) 1
(a) Primary (b) Secondary
(c) Tertiary (d) Financial

28. Elaborate any two ill-effects of Deforestation as depicted in the given

picture. 3
Loss of Biodiversity
Increased Wildfires Increased Atmospheric CO2

Ill-effects of Deforestation

WATER CYCLE

Increased Flooding Increased Drought

Disruption to Water Cycle
29. (A) Casual workers often work in very poor working conditions.
Justify the given statement. 3
OR
(B) State and discuss any two obstacles that hinder the mechanism of
agricultural marketing. 3
58/C/1 21 P.T.O.
30. (A) ,
? 4

(B) 4

31. 1947
? 4

32. , 85% ,

,
4

33. (A) (i) ? 3

(ii) 3

(B) (i) 3
(ii) 3

34.
:
2022 , 20% : 1 .7

GST 1.5 2022

- 7.7 , 2022 6 .8 -
13%
2022 1 .1 GST 2022 GSTR-3B
84.7% , 2021 78.3%

(i) (GST) 3

(ii) ,
3
58/C/1 22
30. (A) Explain how xpenditure on information and xpenditure on
migration acts as a source of human capital formation. 4
OR
(B) Explain any two objectives behind providing more and more
institutional credit to farmers. 4
31. Post-1947 India and Pakistan adopted similar developmental strategies
for their respective development paths. Do you agree with the given
statement ? Give valid reason for your answer. 4
32. Despite being the main occupation of about 85% of the country
population during British rule, agricultural sector continued to
experience stagnation
Briefly explain any two reasons responsible for the backwardness of
Indian agriculture on the eve of independence. 4
33. (A) (i) How did horticulture encourage rural development in India ? 3
(ii) Explain briefly any two functions of the environment. 3
OR
(B) (i)
Revolution . 3
(ii) State any three limitations of organic farming. 3
34. Read the following text carefully and answer the given questions on the
basis of the same and common understanding :
Goods and Service Tax collections rose almost 20% in April 2022 to reach
a fresh high of nearly < 1.7 lakh crore, pointing to a continued buoyancy
in revenue due to higher economic activity and tighter regulation. For the
first time gross GST collection has crossed the < 1.5 lakh crore mark.
Total number of e-way bills generated in the month of March 2022 was
7.7 crore, which is 13% higher than 6.8 crore e-way bills generated in the
month of February 2022, which reflects recovery of business activity at a
faster pace.
During April 2022, 1.1 crore GST returns were filed. The filing
percentage for GSTR-3B in April 2022 was 84.7% as compared to 78.3%
in April 2021.
(i) Goods and Services Tax (GST) is a comprehensive indirect tax.
Elucidate. 3
(ii) Buoyancy in revenue reflected recovery of business activities at a
faster pace. Justify the given statement with a valid explanation. 3

58/C/1 23 P.T.O.