12 Economics Sp 09 28Nov

myCBSEguide
Class 12 - Economics
Sample paper - 09 (2024-25)
Maximum Marks: 80
Time Allowed: : 3 hours
General Instructions:
1. This question paper contains two sections:

Section A – Macro Economics
Section B – Indian Economic Development
2. This paper contains 20 Multiple Choice Questions type questions of 1 mark each.
3. This paper contains 4 Short Answer Questions type questions of 3 marks each to be answered in 60 to 80 words.
4. This paper contains 6 Short Answer Questions type questions of 4 marks each to be answered in 80 to 100 words.
5. This paper contains 4 Long Answer Questions type questions of 6 marks each to be answered in 100 to 150 words.
SECTION A – MACRO ECONOMICS

1. Statement I: Current account is the record of trade in goods and services and transfer payments.
Statement II: Capital account records all international transactions of assets, e.g. money, stocks, bonds, government
debt.
a) Both the statements are false.
b) Both the statements are true.
c) Statement II is true and statement I is false.
d) Statement I is true and statement II is false.
2. Currency notes and coins are called as:
a) Legal tenders and Fiat money
b) Flat money
c) Fiat money
d) Legal tenders
3. Suppose in a hypothetical economy, the income rises from ₹ 500 crores to ₹ 600 crores. As a result, the consumption
expenditure rises from ₹ 400 crores to ₹ 500 crores. Marginal propensity to consume in such a case would be ________.
a) 0.6
b) 0.4
c) 0.8
d) 1
4. Export of goods and services raises the ________ of foreign exchange.
a) both demand and supply
b) Rates
c) demand
d) supply
5. The coefficient b measures
a) The slope of the consumption
b) The slope of the income
c) The slope of savings
d) The slope of the investment
Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

1 / 13
myCBSEguide
6. ________ is exercised through discussions, letters and speeches to banks.
a) Open Market Operations
b) Margin Requirements
c) Moral suasion
d) Selective Credit Controls
7. Aggregate demand is equal to ________.
a) C + S
b) C - S
c) C - I
d) C + I
8. Final goods are those
a) Which are in between the boundary line of production
b) Which have to reach the boundary line of production
c) Which have crossed the boundary line of production
d) Which have not crossed the boundary line of production
9. Money supply includes ________.
a) only time deposits in banks
b) only demand deposits in banks
c) all deposits in banks
d) currency with the banks
10. Flexible exchange rate system has the advantage:
a) Automatic adjustment of balance of payments

b) Encourages imports
c) Easy to borrow from world bank
d) Encourages exports
11. Government incurs expenditure to popularise yoga among the masses. Analyse its impact on gross domestic product and
welfare of the people.
To practice more questions & prepare well for exams, download myCBSEguide App . It provides complete study
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create similar
papers with their own name and logo.
12. 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. Indians Investing in assets abroad will be recorded under debit side of capital account in Balance of Payments.
OR
Would the central bank need to intervene in a managed floating system? Explain why?
13. 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.
14. State the meaning of the following:
i. Investment multiplier
ii. Full employment

2 / 13
myCBSEguide
OR
Calculate investment expenditure from the following data about an economy which is in equilibrium.
National Income = Rs 1,000
Marginal Propensity to Save = 0.25
Autonomous consumption expenditure = Rs 200
15. Explain how ‘margin requirements’ are helpful in controlling credit creation?
16. Answer the following questions:
1. i. Giving reason, explain how are the following be treated in estimation of National Income by income
method.
i. Interest paid by banks on deposits.
ii. National debt interest.
ii. State the various components of the income method that are used to calculate national income.
2. OR
i. Calculate Net Value Added at Factor Cost from the following data:
Items (₹ in crore)
(i) Purchase of machinery to be used in the production unit 100
(ii) Sales 200
(iii) Intermediate costs 90
(iv) Indirect taxes 12

(v) Change in the stock 10
(vi) Excise duty 6
(vii) Stock of raw material 5

ii. Explain the economic value of using the net output method for the estimation of GDP.
1. State the basis of classifying government receipts into revenue receipts and capital receipts. Give an example of each.
2. What are the two broad divisions of receipts of the government budget? Name two sources of each kind of receipt.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18. How can a country's net earning be positive?
a) When imports and exports are not equal
b) When exports are more than imports
c) When imports are more than exports
d) When imports and exports are equal
19. Which of the following countries adopted One Child Policy as a measure to control population?
(Choose the correct alternative.)
a) China
b) India
c) Russia
d) Pakistan
20. During the colonial rule there was neither growth nor equity in the agricultural sector. The policy makers of independent
India had to address these issues which they did through land reforms and promoting the use of ________ which ushered
in a revolution in Indian agriculture.
a) Increasing Irrigation facility
b) Chemical fertilizers

3 / 13
myCBSEguide
c) Organic farming
d) High Yielding Variety seeds
material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create
similar papers with their own name and logo.
21. Study the following picture and answer the given question: Women in rural households take up bee-keeping as an
entrepreneurial activity. Such kind of activities may be envisaged under ________ as diversification activity.
a) Fisheries
b) Animal husbandry
c) Poultry
d) Horticulture
22. Assertion (A): As an immediate measure to resolve the financial crisis, India devalued its currency in 1991.
Reason (R): This allowed India to meet its import bill and resolve the BoP deficit.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
23. Right to Education Act makes education a matter to right to ________.
a) children in the age group 6-14 years
b) male children in the age group 6-14 years
c) female children in the age group 6-14 years
d) children in the age group 6-20 years
24. Reforms in ________ were introduced in 1978.
a) China
b) India
c) Pakistan
d) Sri lanka
25. India has ________% of human and ________% of livestock population with only ________% of land area when
compared with world.
a) 2.5, 16.7, 20
b) 20, 25, 2.5
c) 17, 20, 2.5
d) 16.6, 20, 2.5
26. Statement I: Commercialisation of agriculture was coercively introduced by the Britishers.
Statement II: The aim of commercialisation of agriculture was to support the British industries.
a) Both the statements are true.
b) Both the statements are false.
c) Statement II is true, but statement I is false.
d) Statement I is true, but statement II is false.
27. Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.

4 / 13
myCBSEguide
Column I Column II
(a) Launch of First Five Year Plan (i) 1950

(b) Setting up of Planning Commission (ii) 1955
(c) First Industrial Policy Resolution (iii) 1948
(d) Karve Committee (iv) 1951

a) (iv), (i), (iii), (ii)
b) (iv), (iii), (i), (ii)
c) (iii), (lv), (i), (ii)
d) (iv), (ii), (iii), (i)
28. Explain, how according to the Brundtland Commission the present generation can promote sustainable development.
OR
Do you agree with the use of chemical fertilisers to increase agricultural production?
29. Compare and analyze the Women Worker Population Ratio in Rural and Urban areas based on following information:
Worker-Population Ration in India (2017-18)
Sex Worker Population Ratio
Rural Urban Total

Men 51.7 53.0 52.1
Women 17.5 14.2 16.5
Total 35.0 33.9 34.7

30. Economic growth and Economic development' means one and the same. Defend or refute the given statement. Do
you think that India is economically developed? Why or why not?
31. Why were economic reforms introduced in India in 1991?
OR
Do you think outsourcing is good for India? Why are developed countries opposing it?
32. Argue in favour of the need for different forms of government intervention in the education and health sectors.
1. i. What is meant by diversification of crop production?
ii. Why is it being considered necessary to replace the private moneylenders by institutional sources of credit?
2. OR
i. Discuss the problems of fishing community and give some suggestions.
ii. Why is agricultural diversification essential for sustainable livelihoods?
34. Read the following text carefully and answer the questions given below:
THE FUTURE POPULATIONS OF CHINA AND INDIA
In the absence of catastrophic events such as nuclear war, the populations of India and China are destined to become
even larger, and by a large margin. If the Chinese were to achieve a total fertility rate of as low as 1.7 children born per
woman by 1990 and maintain fertility that low for 30 years, the population would increase to a maximum of 1.22 X 109
in 2020 about 75% greater than the 700 x 106 it was when the birth rate began its big decline in the mid-1960s. To limit
the increase to this amount will require an extraordinary success of the birth planning program.
For many years, 30% of parents would need to have only one child, and 70% only two. If a significant fraction had three

5 / 13
myCBSEguide
or more, the proportion of one-child couples would need to be higher still. The social cost would be substantial. Many
children would grow up with no siblings; many in the next generation would have no aunts, uncles, or cousins; very
many parents would have no sons, and there would be an age structure with a marked relative shortage of younger
workers, males of military age, etc. These features are very foreign to Chinese customs and values; the stringent and
allegedly coercive means needed to achieve such low fertility might have adverse political effects as did less draconian
measures in India.
In India, the failure to have started a large decline in fertility as early as in China implies a prospective growth on the
order of 75% or more of the current population-to a maximum of at least 1.2 x 109, because the current population is
nearly the size the Chinese population was when the birth rate in China began its dramatic fall.
The death rate in India is higher than that in China, but the prospective decline in fertility in India is surely more gradual;
the attainment of a replacement-level (total fertility rate of about 2.2 or 2.3 children) is long in the future, to say nothing
of attainment of lower rates.
The reason for the large continuing increases in population in each country even after fertility is reduced is that
population growth has its own momentum. High birth rates in the recent past mean that there will be many more
potential parents for another generation than there are now. Even if every couple merely replaces itself, the population
continues to increase by 50% or more.
Thus, the world's two largest populations are destined to become much larger. I believe today, as I did when working
with Hoover, that if sensible economic policies are followed it will be possible to provide a somewhat better life for
these larger populations than is enjoyed in the two countries today. Reducing fertility soon to no higher than needed for
long-run replacement would improve the prospects significantly and would especially improve the social and economic
future as seen from the perspective of early in the next century. Yet, the mistakes of the past cannot be cancelled; the
birth rate cannot be lowered retrospectively. A lower birth rate now is desirable, but the ideal rate is not zero. There are
social and political costs of excessive emphasis on the immediate achievement of very small families; the rights and
sensibilities of the current population and the disequilibrating effects of drastic changes in age composition must enter
the calculation of desirable population policies.
(Source: https://www.pnas.org/content/pnas/80/6/1757.full.pdf)
Questions:
i. Outline any two implications (apart from population arrest) of the one-child policy of China introduced in the late
1970s.
ii. Delineate the reasons why the world's two largest populations are destined to become much larger in the future?

6 / 13
myCBSEguide
Class 12 - Economics
Sample paper - 09 (2024-25)
Solution
SECTION A – MACRO ECONOMICS

1. (b) Both the statements are true.
Explanation: Both the statements are true.
2. (a) Legal tenders and Fiat money
Explanation: Legal tenders and Fiat money
3. (d) 1
Explanation: 1 (because change is income is 100 cr. and change in consumption is 100 cr).
4. (d) supply
Explanation: supply
5. (a) The slope of the consumption
Explanation: 'b' measures the rate of change of consumption with respect to change in income.
6. (c) Moral suasion
Explanation: Moral suasion
7. (d) C + I
Explanation: AD = C + I
8. (c) Which have crossed the boundary line of production
Explanation: Final goods need no further production.
9. (b) only demand deposits in banks
Explanation: The total stock of money circulating in an economy is the money supply. The circulating money involves
the currency, printed notes, money in the deposit accounts and in the form of other liquid assets.
10. (a) Automatic adjustment of balance of payments
Explanation: Automatic adjustment of balance of payments
11. Government expenditure on popularising yoga raises GDP because it is governments final consumption expenditure. It
also raises welfare of the people because yogic exercises improve health and thus, raise efficiency of the people.
12. i. False, trade deficit is a lesser cause of worry if it reflects a rise in investment which will build the capital stock and
increase the future output in an economy.
ii. True, Indians investing in assets abroad will lead to an outflow of foreign currency, it will be recorded under debit
side of capital account in balance of payments.
OR
The managed floating system is a combination of two systems − fixed and floating exchange rate systems. It calls for the
government or central bank to intervene when the need for the same is needed. The government or the central bank helps
in moderating the exchange rate movements by purchasing and selling the foreign currency. Thus, to avoid dirty floating,
the government exercises its power to intervene, whenever the need arises. sometime it is also called managed floating
system and this process is going on by the official reserve transaction process that is done by the rbi.
13. Deficient Demand may have an adverse impact on output, employment and income level.
As Aggregate Demand is less than Aggregate Supply at full employment level of income, this may lead to unintended
accumulation of inventories. To restore desired/intended level of inventories, producers may contract production which
in turn may reduce the employment, output, and income level in the economy. Lack of demand for goods and services
may also lead to a fall in the general price level in the economy.

7 / 13
myCBSEguide
14. i. Investment multiplier is the ratio of the total change in final income to a given change in initial investment. it is
process creating income with initial investment.
ii. Full employment refers to a situation where all those who are willing and able to work at the prevailing wage rate,
are getting work.
OR
Calculation of Investment Expenditure :

1. Marginal Propensity to Save (MPS) = 0.25,
2. Autonomous Consumption (C ) = Rs 200
¯
¯¯¯
3. National Income (Y) = Rs 1,000
Calculation of Marginal Propensity to Consume:

(MPC or b) = 1 - MPS = 1 - 0.25 = 0.75
We know.
¯
¯¯¯
Y = C + I or = C + bY + I ..... (i)
¯
¯¯¯
∵ C = C + bY
On substituting the given variables in equation (i), we get

1, 000 = 200 + 0.75 × 1, 000 + I
1000 + 200 + 750 + I

1000 + 950 + I
⇒ I = 1000 - 950 = 50,
∴ Investment = Rs 50
15. 'Margin requirements' refer to the difference between the amount of loan granted and the current value of security offered
for loans. It is an important qualitative instrument for controlling credit creation. Changes in margin requirements are
designed to influence the flow of credit against specific commodities. The commercial banks generally advance loans to
their customers against some security or securities offered by the borrower and acceptable to banks. Generally, the
commercial banks do not lend up to the full amount of the security but lend an amount less than its value. The margin
requirements against specific securities are determined by the Central Bank. A change in margin requirements will
influence the flow of credit. If the Central Bank of the country wants to expand the process of credit creation, then it
lowers the margin requirements. Lowering of margin requirements enables the borrower to borrow more against the
security offered. This increases the money supply in the economy and credit creation expands. On the other hand, if the
Central Bank wants to contract the process of credit creation, then it increases the margin requirements. Increasing
margin requirements ensure that the borrower is able to borrow less against the security offered. This reduces the money
supply in the economy and consequently credit creation contracts.
1. i. i. Interest paid by banks on deposits: It should be included in national income as banks use deposits for
productive purposes and interest paid by banks on deposits is a factor payment.
ii. National debt interest: It should not be included in the national income as the government takes a loan
for both productive and non-productive activities.
ii. 1. Compensation of employees: It includes the following components: a) wages and salaries in cash b)
Payments in kind c) Employers contribution to social security d) pension on retirement.
2. Operating Surplus: It is the sum of income from property and income from entrepreneurship. lt
includes the following items: a) Rent b) Interest c) Profit

8 / 13
myCBSEguide
3. Mixed-Income: Income of own account workers (like farmers, doctors, barbers, etc.) and
unincorporated enterprises (like small shopkeepers, repair shops) is known as mixed income.
4. Net factor income from Abroad(NFIA): NFIA is the difference between income earned by normal
residents from the rest of the world and similar payments made to Non-residents within the domestic
territory. National Income (NNP at FC) is found out by adding by adding net factor income from abroad
to NDP at FC (Domestic Income).
2. OR
i. By value added method:
Gross Value Added at Market Price(GDP at MP)
= Sales + Change in stock - Intermediate costs
= ₹200 crore + ₹10 crore - ₹90 crore
= ₹120 crore
Net Value Added at Factor Cost
= Gross value added at market price - Indirect tax
= ₹120 crore - ₹12 crore
= ₹108 crore
Net value added at factor cost = ₹108 crore
ii. The net output method refers to the value-added method of estimating national income. Value Added
method measures National income in terms of value added by each producing enterprise in the economy
during an accounting year. Value of Output - Intermediate consumption = Net output = Value added. When
we estimate value added by each producing unit in the country, we make an assessment of the level of
production activity in the economy. Low value-added in the economy (compared to other economies of the
world) implies a low level of output, and therefore, a low level of income and employment. It points to the
low quality of life of the people. Since value-added is estimated across different sectors of the economy
(primary, secondary and tertiary sectors), we are also able to assess the relative contribution of these sectors
in GDP. This helps the government to formulate sector-wise policies of growth and development. GST is
based on the use of the value-added method. It is a single tax replacing all indirect taxes in the economy.
1. The basis of classifying government receipts into revenue receipts and capital receipts is whether the receipt creates
liability or reduces financial assets. Accordingly, revenue receipts are the receipts that neither create liabilities nor
cause a reduction in financial assets. Capital receipts are the receipts that either create liabilities or cause a reduction
in assets.
An example of a revenue receipt is a tax while an example of capital receipt is a loan from the public.
2. Revenue receipts refer to those receipts which neither create any liability nor cause any reduction in the assets of the
government. They are regular and recurring in nature and government receives them in its normal course of activities.
Two Sources of Revenue Receipts
i. Tax Revenue
ii. Non-Tax Revenue
Capital receipts refer to those receipts which either create a liability or cause a reduction in the assets of the
government. They are non-recurring and non-routine in nature.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18. (b) When exports are more than imports
Explanation: When exports are more than imports more capital flows into the economy and increase the GDP of the
exporting country.

9 / 13
myCBSEguide
19. (a) China
Explanation: China
20. (d) High Yielding Variety seeds
Explanation: High Yielding Variety seeds
21. (d) Horticulture
Explanation: Horticulture
22. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct explanation of A.
23. (a) children in the age group 6-14 years
Explanation: In the year 2009, the Government of India has brought about an act, called RTE. It promises to free and
compulsory education to all. It makes education a matter of right to all children in the age group of 6 to 14 years.
24. (a) China
Explanation: China
25. (c) 17, 20, 2.5
Explanation: India has about 17% of the world’s total human population and 20% of the world’s total animal
population, whereas, it has only 2.5% of world’s total geographical area.
26. (a) Both the statements are true.
Explanation: Both the statements are true.
27. (a) (iv), (i), (iii), (ii)
Explanation: (iv), (i), (iii), (ii)
28. Brundtland Commission the present generation can promote sustainable development in following manner:-
The Brundtland Commission emphasises on protecting the future generation. At least we should leave to the next
generation a stock of quality of life’ assets no less than what we have inherited. It becomes the moral duty of present
generation to hand over the earth to the future generation in good form. Therefore, if the resources are overused or
misused, they will deplete so fast that the production capacity of the future generations would not be sustainable.
Sustainable development aims at maximising the welfare of both present and future generations. It does not mean
hindering the existing pace of economic growth, but refers to a judicious or optimum utilisation of resources in such a
manner that pace of economic growth sustains with inter-generational equity. The present generation can promote
sustainable development in the ways that are compatible with which are as follows:
i. Conservation of natural assets,
ii. Preservation of the regenerative capacity of the world's natural ecological system; and
iii. Avoiding the imposition of added costs or risks on future generations.
OR
No, because the use of chemical fertilisers is an obstacle to sustainable development.

29. The data in the given table reveals that:
a. Women constitute 16.5% of the total worker population in the economy.
b. The number of women workers in rural areas (17.5%) are relatively higher than the women workers in urban areas
(14.2%). Due to the abject (or severe) poverty in rural areas, rural women are compelled to work more than their
urban counterparts.
30. Economic growth and Economic development' means one and the same. The given statement is refuted. Economic
growth means that there is a continuous and sustained rise in the GDP of the country. Economic development means that
in addition to a continuous and sustained rise in the GDP, there is equitable distribution of income and changes in

10 / 13
myCBSEguide
sectoral composition in favour of secondary and tertiary sectors.
The above interpretation of the two terms leads us to the conclusion that these terms do not convey the same meaning.
Economic development is a wide term which includes economic growth within its purview. No, I don't think that India is
economically developed because income inequalities are continuously rising in our country. The rich are getting richer
and the poor are getting poorer, thus defeating the value of social justice.
31. Economic reforms introduced in India in 1991 due to some issues which are as follows.
In the late 1980s, the Indian economy was facing problems of following:
1. Declining foreign exchange reserves- The government was not able to generate sufficiently from taxation. The
income from PSUs was also not very high to meet the growing expenditure (on development programmes and to
meet challenges like unemployment, poverty and population explosion). At times, our foreign exchange, borrowed
from other countries and international financial institutions, was spent on meeting consumption needs. Foreign
exchange reserves declined to a level that was not sufficient to finance imports of petrol and other important items for
more than two weeks.
2. Economic crisis related to external debt- Government expenditure began to exceed its revenue by such large
margins that meeting expenditure through borrowings became unsustainable. The government was not able to make
repayments on its borrowings from abroad. No country or international funder was willing to lend to India.
3. Growing imports without matching rise in exports- Imports grew at a very high rate. But sufficient attention was
not given to boost exports to pay for the growing imports.
4. High inflation- The crisis was further compounded by the rising prices of essential goods. India approached the
World Bank and IMF and received $7 billion as loan to manage the crisis. For availing the loan, these international
institutions expected India to liberalise and open up the economy by removing restrictions on the private sector,
reducing the role of the government in many areas and remove trade restrictions between India and other countries.
India agreed to the conditionalities of World Bank and IMF and announced the New Economic Policy (NEP).
Thus, India changed its economic policies in 1991 mainly due to following reasons:
i. a financial crisis, and
ii. pressure from international organisations like the World Bank and IMF.
OR
Yes, outsourcing is good for India. The following points suggest that outsourcing is good for India.
1. Employment: It avails employment.
2. Exchange of technical know-how: Outsourcing enables the exchange of ideas and technical know-how.
3. International worthiness: Outsourcing to India also enhances India’s international worthiness credibility.
4. Encourages other sectors: Outsourcing affects other related sectors like industrial and agricultural sector through
various backward and forward linkages.
5. Better standard of living and eradication of poverty: By creating more and higher paying jobs, outsourcing improves
the standard and quality of living of the people.
However, Outsourcing to India is good but developed countries oppose this because outsourcing leads to the outflow of
investments and funds from the developed countries to the less developed countries. Also, the MNCs contribute more to
the development of the host country than the home country. Further, outsourcing reduces the employment generation in
the developed countries as the same jobs can be done in the less developed countries at relatively cheap wages.
Moreover, this leads to job insecurity in the developed countries as at a point of time jobs can be outsourced to the
developing countries.
32. There is a need for different forms of government intervention in education and health sectors due to the following
reasons:
i. Private sector is governed by the profit motive and hence does not provide education and health facilities at a
reasonable cost which may be affordable to all.

11 / 13
myCBSEguide
ii. Standard of education and health needs to be maintained in order to develop human resources effectively and
government intervention is needed for this.
iii. Education and health are essential for social upliftment of backward and weaker sections of the society and
government intervention in terms of policy and provision of infrastructure are required in education as well as health
sector.
iv. Investment on education and health is to be carried out simultaneously by all different forms of government Central,
State and Local as per the federal structure of India.
v. Government should set up or encourage private institutions to set up their educational and health care centres in
remote and rural areas.
vi. Regional disparities are prevalent in education and health in India which can be corrected only through government
intervention at all levels as the private sector would not be forthcoming for establishing schools or hospitals in
remote or backward areas.
1. i. Diversification of Crop Production: It involves a shift from single-cropping system to multi-cropping
system.
ii. It has been considered necessary to replace the private moneylenders by institutional sources of credit
because:
i. The supply of credit was irregular and depended largely on personal relations between the borrower and
the lender.
ii. Since the borrower was generally illiterate, the moneylender often resorted to downright cheating such as
failure to record the repayments in full.
iii. The moneylenders often took advantage of the ignorance and helplessness of the cultivator to exploit
him.
iv. The landless tenants and farm workers, who had no land to offer as security, found it difficult to borrow.
The loans were available on very difficult terms, and the borrowers were often burdened with permanent
debt.
2. OR
i. Fishing community is suffering from:
a. Acute poverty
b. Rampant underemployment
c. Absence of mobility of labour to other sectors
d. High rate of illiteracy and
e. Indebtedness
f. low per capita income
Some of the suggestions to improve the situation are:

a. We need to spread training and education among fishing community.
b. We need to provide credit through SHGs at cheap rates to make it affordable for them.
ii. The agricultural diversification implies diversification of crop production and shifting of agricultural
workforce to other allied activities such as livestock, poultry, fisheries, etc and non-agricultural sector.
Diversification of crops implies production of a diverse variety of crops rather than 1 specialised crop.
Diversification is essential because there is greater risk in depending exclusively on farming for a livelihood
and to provide productive sustainable livelihood options to rural people. Most of the agricultural
employment activities are concentrated in the Kharif season while during the Rabi season it becomes
difficult to find gainful employment in areas lacking in irrigation facilities.
Therefore, expansion into other sectors is essential to provide supplementary gainful employment and in

12 / 13
myCBSEguide
realising higher levels of income for rural people to overcome poverty and other problems. A substantial
portion of Indian farming is dependent on the vagaries of monsoon, making it a risky affair to rely upon
solely. Accordingly, the need for diversification is required to enable the farmers to earn from other
alternative non-farm occupations. Also, agriculture being overcrowded cannot further generate employment
opportunities. Therefore, the prospects of the non-farm sectors should be opened up in rural areas to provide
job opportunities This lessens the excess burden on agriculture by reducing disguised unemployment.
34. i. The one-child norm was introduced in China in the late 1970s to control the population. The major implications are:
(any two)
a. It was the major reason for its low population growth.
b. It also led to a decline in the sex ratio, the proportion of females per 1000 males
c. It would also bear a social cost that children would grow up with no siblings.
d. After a few decades, there would be more elderly people in proportion to young people.
ii. Even after adopting various measures to contain the bulging population and reducing fertility, the populations of
India and China are destined to become even larger. The death rate in India is higher than that in China, but the
prospective decline in fertility in India is surely more gradual. The attainment of a replacement level (total fertility
rate of about 2.2 or 2.3 children) is long in the future to achieve a low population growth. Besides, population growth
has its own momentum. Even if every couple merely replaces itself, the population continues to increase by 50% or
more.

13 / 13

12 Economics Sp 09 28Nov

Uploaded by

Copyright:

Available Formats

12 Economics Sp 09 28Nov

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

12 Economics Sp 09 28Nov

Uploaded by

Copyright:

Available Formats

myCBSEguide

1. This question paper contains two sections:

SECTION A – MACRO ECONOMICS

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

a) Automatic adjustment of balance of payments

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

(iv) Indirect taxes 12

(vii) Stock of raw material 5

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

(a) Launch of First Five Year Plan (i) 1950

(c) First Industrial Policy Resolution (iii) 1948

(d) Karve Committee (iv) 1951

Worker-Population Ration in India (2017-18)

Sex Worker Population Ratio

Rural Urban Total

Women 17.5 14.2 16.5

Total 35.0 33.9 34.7

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

SECTION A – MACRO ECONOMICS

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Calculation of Investment Expenditure :

3. National Income (Y) = Rs 1,000

Calculation of Marginal Propensity to Consume:

On substituting the given variables in equation (i), we get

1000 + 200 + 750 + I

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

No, because the use of chemical fertilisers is an obstacle to sustainable development.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Some of the suggestions to improve the situation are:

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

Copyright © myCBSEguide.com. Mass distribution in any mode is strictly prohibited.

You might also like