Economics

Consider the two statements below.
Statement 1: Primary deposits are the cash that the general public deposits with commercial banks.
Statement 2: Secondary deposits are the deposits that arise because commercial banks give loans (credit) to people.
Choose the correct alternative.

National Income at market price minus National Income at factor cost equals ________.

Each figure below is a two-sector circular flow with an upper arrow from Firms to Households and a lower arrow from Households to Firms. Which one shows ONLY the real flow?

The rate at which commercial banks borrow from the RBI to meet their long-term needs is called ________.

Consider the two statements below.
Statement 1: A loan taken by a country from the World Bank to finance its BoP deficit is recorded in the capital account.
Statement 2: Autonomous transactions take place regardless of the position of the BoP account.
Choose the correct alternative.

A news item reports that the central bank fined two cooperative banks (one in Hisar and one in Andaman and Nicobar) for breaking banking rules. Which function of the central bank does this show?

The investment multiplier is 4 and autonomous dissaving is (−) 60. Which is the correct saving function?

If the consumption function is C = 205 + 0·9 Y, the investment multiplier is ________.

Assertion (A): At income levels below the break-even level, APC is greater than one.
Reason (R): APC is the ratio of total consumption to total income.

A country's Balance of Trade shows a deficit of ₹ 50,000 crore. Its visible imports are five times its visible exports. Its visible exports are ₹ ______ crore.

Gifts and remittances sent abroad are entered on the ______ side of the ______ account of the Balance of Payments.

Which of these equations is true?

When an able-bodied person does not want to work at the current wage rate, the situation is called ________.

Distinguish between 'Value Addition' and 'Final Value of Output'.

Calculate the value added by Firm A from the data below (₹ crore):
\[\begin{array}{|l|l|r|}\hline \text{S.No.} & \text{Particulars} & \text{₹ crore}\\\hline \text{(i)} & \text{Purchase of factor inputs by Firm A} & 5\\ \text{(ii)} & \text{Purchase of non-factor inputs by Firm A} & 2\\ \text{(iii)} & \text{Sales by Firm A to other domestic firms} & 10\\ \text{(iv)} & \text{Import of raw materials by Firm A from abroad} & 50\\ \text{(v)} & \text{Excess of opening stock over closing stock} & 3\\\hline\end{array}\]

"The foreign exchange rate and the supply of foreign exchange are positively related." Do you agree? Justify with valid arguments.

Describe how the economy adjusts if ex-ante (planned) savings are less than ex-ante (planned) investment.

A news report of 26 September 2022 says the central bank has raised the benchmark lending rate by 140 basis points. Identify the likely cause of this RBI action and its consequences.

Explain the 'Government's Bank' (banker to the government) function of the central bank.

With a hypothetical numerical example, explain how a rise in the reserve ratio affects credit creation by commercial banks.

(i) A pie-chart titled 'Where India gets its money from (for every ₹ 1 the Government earns)' shows: Corporation tax 21 paise, Borrowings and other liabilities 20 paise, GST and other taxes 19 paise, Income tax 16 paise, Non-tax revenue 9 paise, Excise duties 8 paise, Customs 4 paise, Recovery of loans 3 paise. Classify these items into revenue receipts and capital receipts, with reasons. (4)
(ii) Distinguish between revenue deficit and fiscal deficit. (2)

(i) Calculate primary deficit from the data below (₹ crore): (3)
\[\begin{array}{|l|l|r|}\hline \text{S.No.} & \text{Particulars} & \text{₹ crore}\\\hline \text{(i)} & \text{Revenue deficit} & 40\\ \text{(ii)} & \text{Non-debt creating capital receipts} & 190\\ \text{(iii)} & \text{Tax revenue} & 125\\ \text{(iv)} & \text{Capital expenditure} & 220\\ \text{(v)} & \text{Interest payments} & 20\\\hline\end{array}\]
(ii) Explain the 'economic stability' function of the government budget. (3)

Consider the two statements below.
Statement 1: Commercialisation of agriculture under British rule was responsible for the frequent famines between 1875 and 1900.
Statement 2: During British rule, India started exporting food grains.
Choose the correct alternative.

Consider the two statements below.
Statement 1: Food grains bought by the government at the Minimum Support Price (MSP) are kept as buffer stock.
Statement 2: MSP protects farmers from a sharp fall in the prices of farm produce.
Choose the correct alternative.

Which statement is NOT correct?

Mini-hydel plants are good for the environment because:
(i) they generate electricity for local areas only
(ii) they do not change the land-use pattern
(iii) they use perennial streams

China's Great Leap Forward (GLF) campaign focused on ________.

India is NOT a member of which regional/global economic group?

The government's 'Skill India' programme is NOT an attempt to increase ________ in India.

Which movement is described here? 'Between 1966 and 1976, Mao started a movement in which students and professionals were sent to the Chinese countryside to work and learn from real rural life.'

Consider the two statements below.
Statement 1: In both India and Pakistan, the service sector has emerged as a major source of growth.
Statement 2: Among India's neighbours (India, China, Pakistan), China has the highest life expectancy.
Choose the correct alternative.

Workers who are on the permanent pay-roll of their employer are called ________ workers.

Jobless growth leads to unemployment because ________.

Growing many different crops instead of one specialised crop is called ________.

Consider the two statements below.
Statement 1: India announced its First Five Year Plan in 1951.
Statement 2: India, Pakistan and China all adopted economic planning as their main development strategy.
Choose the correct alternative.

A photograph shows a hillside where many trees have been cut down: tree stumps and a pile of felled logs lie in the foreground, with forest left only in the background. Interpret the picture in terms of current environmental challenges.

Critically evaluate the role of the rural banking system in rural development in India.

Dr. Khurana, a dentist, earned a fairly low income from his clinic in an economically backward area, so he spent a large amount to shift to a city. Identify and explain the type of expenditure he incurred that directly adds to human capital formation.

Explain the reasons for slow growth and the re-emergence of poverty in Pakistan.

State whether the following is true or false and explain with valid arguments: "In the recent past, the Indian economy has made satisfactory progress towards formalisation of its workforce."

Around 60% of workers in India are self-employed, and underemployment is highest among them. As an economist, suggest and explain any two measures to make employment of the self-employed more productive.

A passage based on a NITI Aayog report on digital banks says India has the technology (UPI, Aadhaar, open banking) to support digital banks and needs a licensing and regulatory framework for them. It notes that digital banking lets users set up automatic payments of regular utility bills, reduces the risk of counterfeit currency through fund transfers, and checks black money by promoting a cashless society.
(a) Which institution did NITI Aayog replace? Who is its ex-officio Chairman? (2)
(b) State and discuss any two main advantages of digital banking. (4)