QUESTION PAPER
2023 BOARD EXAM
CBSE CLASS 12-HUMANITIES ECONOMICS Board Paper 2023 — Set 3
2023
ECONOMICS
CLASS 12-HUMANITIES
CBSE EXAMINATION PAPER-2023
ECONOMICS
(Solved)
General Instructions :
Read the following instructions carefully and follow them :
- This question paper contains 42 questions. All questions are compulsory.
- This question paper is divided into 5 sections.
- Section A – questions number 1 to 2 are case based questions
- Section B – questions number 3 to 24 are multiple choice questions
- Section C – questions number 25 to 30 are short answer type i
- Section D – questions number 31 to 38 are short answer type ii
- Section E – questions number 39 to 42 are long answer
- There is no overall choice given in the question paper. However, an internal choice has been provided in few questions.
- Use of calculator is NOT allowed.
Section A
Read the following text carefully :
In India, after Covid-19 period, household and private sector consumption, as measured by Private Final Consumption Expenditure (PFCE), was < 39·7 trillion in nominal terms in Q1 FY23, compared with < 28·4 trillion for the same period last year, and < 39·2 trillion in the fourth quarter (Q4) of 2021 22 (FY22).
As a percentage of Nominal GDP, PFCE was 61·1 per cent, compared with 55·5 per cent in Q1 FY22. However, in real terms at constant prices, PFCE grew just 9·88 per cent, compared with Q1 of 2019 20 the year before the Covid-19 pandemic.
"Recovery in domestic demand is reflected in the growth rates of PFCE and Gross Fixed Capital Formation (GFCF) over the corresponding quarter of the previous year," said D.K. Srivastava. GFCF came in at 19 trillion in Q1 FY23, compared with 14-4 trillion in Q1 FY22. However, it was slightly lower than 20-2 trillion in Q4 FY22.
In the media briefing after the GDP numbers, Finance Secretary TV. Somanathan said this trend was expected as GFCF in present Q1 was usually lower than the previous year's Q4.
On the basis of the given text and common understanding, answer the following questions:
(1) Compare and analyse the trends of change in PFCE as a percentage of GDP, both in real and nominal terms.
(2) "Private Final Consumption Expenditure is an important factor determining Gross Domestic Product at Market Price." Justify the given statement.
Read the following text carefully :
With independence, India chose the closed economy model in pursuit of its objective of industrial self-sufficiency. As a result, industrial structure has become considerably important. In the post-independence era, the industrial growth was rapid during the first two decades, especially during the Second and Third Plan period. The Second Plan introduced Industrial 'Revolution' in the country. The main reasons for high rates of industrial growth witnessed during this period were due to :
(i) Emphasis on industrialisation in economic policies.
(ii) Making industrial growth the main objective in the industrial policy and planning.
(iii) Huge investments being made to support capacity creation in the industrial sector.
(iv) Growing demands for a variety of new products on the part of the urban consumers and the relatively better-off sections of the society.
(v) Pace of economic expansion supported by domestic savings and inflow of resources from abroad.
On the basis of the given text and common understanding, answer the following questions :
(1) State the time period of the Second Five Year Plan of India.
(2) Discuss briefly any two reasons behind the industrial growth during the Second and Third Five Year Plans of India.
(3) Who is considered as the Father of the Second Five Year Plan of India ?
Section B
Read the following statements carefully:
Statement 1: Savings function can be derived from Consumption function.
Statement 2: Consumption curve must always start from the point of origin.
In light of the given statements, choose the correct alternative from the following:
Keeping other factors constant, if the price of crude oil falls in the international market, it may lead to ___________. (Choose the correct alternative to fill up the blank)
Identify, which of the following is not a function of the Reserve Bank of India.
(Choose the correct alternative)
Read the following statements carefully:
Statement 1: Import of gold from Dubai will be recorded on the debit side of the current account in Balance of Payments of India.
Statement 2: Outflow of Foreign Institutional Investment (FII) from Indian stock markets will be recorded on the credit side of the capital account.
In light of the given statements, choose the correct alternative from the following:
(i) Read the following statements carefully:
Statement 1: Stock variables are measured at a point of time.
Statement 2: Flow variables and stock variables are the same.
In light of the given statements, choose the correct alternative from the following:
If the central bank wants to reduce money supply in the economy, it may __________.
(Choose the correct alternative to fill up the blank)
Identify, which of the following is not a source of supply of foreign exchange for India.
(Choose the correct alternative)
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below.
Assertion (A): Ex-ante savings and Ex-ante investments are never equal to each other.
Reason (R): At equilibrium level of income, aggregate demand may not be equal to the aggregate supply.
Alternatives :
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below.
Assertion (A): The value of Average Propensity to Consume (APC) can never be zero or negative.
Reason (R): Average Propensity to Consume (APC) is independent of the level of income.
Alternatives :
Identify, flow variable from the following : (Choose the correct alternative)
Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below.
Assertion (A) : Post independence, public sector was given a prominent role, due to requirement of huge investments in the secondary sector.
Reason (R) : Industrial sector is the backbone of any economy.
Alternatives :
From the following alternatives, identify the correct full form of 'NITI' in 'NITI' Aayog :
In a __________ economy, resources are owned and operated by both public and private sectors.
(Choose the correct alternative to fill up the blank)
Identify the correct alternative with reference to the followin statement :
Between 1966 - 76, Mao introduced this movement under which professionals and students were asked to work and learn from rea life situations prevailing in the countrys
Read the following statements carefully :
Statement 1 : In the agricultural sector, communes were established, where land holdings were allocated to individual households for ownership.
Statement 2 : Special Economic Zones (SEZs) were established to attract foreign investments and technology.
In light of the given statements, choose the correct alternative from the following :
____________ revolution was the harbinger of major changes in the credit system as it led to diversification of the portfolio of rural credit towards production-oriented lending.
(Choose the correct alternative to fill up the blank)
Multiple reasons for economic slowdown and re-emergence of poverty in Pakistan may be enumerated ".
Identify which of the following might not be one of them.
(i) Rising dependence on foreign loans
(ii) Stable macroeconomic indicators
(iii) Unstable agricultural growth
Alternatives
Identify which of the following does not reflect a direct relationship between human capital formation and economic growth.
__________ adopted the resolution to ban the use of Chlorofluorocarbon (CFC) compounds along with other ozone depleting chemicals.
(Choose the correct alternative to fill up the blank)
According to Herman Daly (an environmental economist), which of the following is not an essential step towards achieving sustainable development ?
Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below.
Assertion (A) : Government can try to reduce unemployment through special poverty removal programmes.
Reason (R) : Such poverty removal programmes directly or indirectly lead to employment generation.
Alternatives :
Read the following statements carefully :
Statement 1 : One-child policy was very effectively used in controlling the population by the Chinese authorities.
Statement 2 : One-child policy, according to scholars, led to a decline in gender ratio (the proportion of females per 1000 males).
In light of the given statements, choose the correct alternative from the following :
Section C
Differentiate between 'Value of Output' and 'Value Added '.
Elaborate how a well-structured 'Agricultural Marketing System' helps the farmers to increase their income.
Distinguish between 'Human Capital' and 'Human Development".
Justify the following statement:
"Depreciation is a fall in the value of an asset due to expected obsolescence."
Section D
Suppose an imaginary economy is facing a situation of deficient demand in the short run time period.
Discuss briefly, the probable impacts of the same on the economy.
Using a suitable numerical example, explain the credit creation process of the banking system, in a hypothetical economy.
(i) Explain any two shortfalls of the industrial policy under the British rule.
(ii) Quote the four goals of the five year plans process of India.
Read the following schedule carefully :
Analyse the output growth trend in the three sectors over the given years between India and China.
"Many economists believe that the economic reforms process of 1991 had adversely affected the agricultural sector." Do you agree with the given statement? Quote valid arguments in favour of your answer.
State whether the following statements are true/false, with valid arguments :
(a) Economic participation of women as homemakers is not accounted for in the Gross Domestic Product.
(b) Indian economy has shown excellent shift from informal sector to formal sector in the recent past.
Suppose the following information is given about a hypothetical economy :
C = 100 + 0.75 Y (where, C = Consumption and Y =Income) I0 = 200 (I0 = Autonomous Investment)
Calculate the following on the basis of the given information :
(a) Equilibrium Level of Income
(b) Aggregate Demand at Equilibrium Level of Income
(c) Marginal Propensity to Save
Read the following information carefully :
'' The Monetary Policy Committee (MPC) of the reserve bank of India (RBI), recently increased the Repo Rate by 50 basis points. The Rate stands today at 5.40%, whereas Reverse Repo Rate was left unchanged at 3.35%.
Answer the following questions :
(i) Identify the nature of the two monetary policy measures mentioned in the above text.
(ii) Elaborate the likely economic rationale behind the increase in Repo Rate by the Monetary Policy Committee.
Section E
(i) Explain the role of education in the economic development of the nation.
(ii) State the importance of rural banking in an economy like India.
(i) Two friends, Deepak and Krish were discussing the impact of increase in GST rates on luxury items, as recently undertaken by the Government. Krish was of the view that most of the luxury items (like foreign travel, imported cigarettes, etc.) should be taxed exorbitantly, while the items related to daily consumption of poor and middle class should be tax-free. Identify and explain the objective of the Government budget Krish is suggesting.
(ii) State any two examples of non-tax receipts of the Government.
(i) "In the recent times, the Government of India has incurred a lot of expenditure on acquisition of indigenous defence items under Make-in-India' programme."
Identify and discuss the two types of budget expenditures which may by undertaken by the Government as suggested in the above statement.
(ii) State the meaning of 'fiscal deficit under the Government Budget
(i) Who is a casual wage labourer ?
(ii) State and discuss any one recommendation of the Education Commission (1964 66).
(iii) In the light of the given image, identify and explain any one strategy to ensure sustainable development.
Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 33 (b) (iii)
Other Years — ECONOMICS