This document provides additional study material on value-based questions for the 2012-2013 economics class 12 exam in Delhi, India. It contains sample questions in two parts - microeconomics (Part I) and macroeconomics (Part II). The questions aim to test students' understanding of economic concepts and their ability to think critically and provide reasoned justifications based on values like social welfare, environmental conservation, and more. Sample answers are also provided with an emphasis on applying economic thinking to real-world issues and situations. The study material was prepared by a team of five lecturers under the guidance of education department officials to aid students in their exam preparation.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
We analyse a small open economy with a tradable and a sheltered sector. If the unions that operate in each sector coordinate their wage demands sectorwise, the choice of monetary regime – floating cum inflation target vs. EMU – may affect the relative wages and prices of the economy. We show that EMU results in lower prices for tradable goods and lower real wages in the traded sector while opposite results hold for sheltered sector prices and wages. Thus, if large unions behave strategically, the choice of monetary regime has far-reaching structural implications.
Market Research Report : Retail Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for 22% of the country's GDP and is the second largest employer with 35.06 mn people. Traditional retail formats are fast getting replaced by modern organised retail formats. Due to growing retail space and changing consumer behaviour, retail market in India is poised for strong growth in the near future.
The report begins with the market overview section that gives an insight into the retail market in India, its market size and growth, along with the share of major retail segments. Low organised retail penetration indicates huge growth potential of this market. This is followed by the major segments in the retail market, where food and grocery occupies the largest share. The various market entry strategies available for foreign retailers, franchising, cash and carry wholesale trading, strategic license agreements, joint ventures, manufacturing, distribution, have also been highlighted. A comparison of the traditional retail supply chain with the modern retail supply chain has also been given. The section also includes an overview of the various organised retail formats, hypermarkets, cash-and-carry, department stores, supermarkets, shop-in-shop, specialty stores, category killers, discount stores and convenience stores. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including low organised retail penetration, rising income levels and consumerism, growing retail space and mall boom, increasing availability of credit and changing demographics and consumer behaviour. Strong opportunity exists in the market due to low organised retail penetration in India. This coupled with the fact that income level and consumerism are rising, will drive the retail market. The key challenges identified are insufficiencies in supply chain, shortage of skilled manpower and real estate issues.
Key trends in the market have also been analysed which includes emergence of innovative retail formats, online and rural retailing and integration of various business strategies. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. A section on the investment scenario of this market is also highlighted, including investment and expansion plans, mergers and acquisitions, and partnership agreements in the retail sector.
The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. It begins with a matrix showing the various retail formats under which the playe
We analyse a small open economy with a tradable and a sheltered sector. If the unions that operate in each sector coordinate their wage demands sectorwise, the choice of monetary regime – floating cum inflation target vs. EMU – may affect the relative wages and prices of the economy. We show that EMU results in lower prices for tradable goods and lower real wages in the traded sector while opposite results hold for sheltered sector prices and wages. Thus, if large unions behave strategically, the choice of monetary regime has far-reaching structural implications.
Market Research Report : Retail Market in India 2012Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for 22% of the country's GDP and is the second largest employer with 35.06 mn people. Traditional retail formats are fast getting replaced by modern organised retail formats. Due to growing retail space and changing consumer behaviour, retail market in India is poised for strong growth in the near future.
The report begins with the market overview section that gives an insight into the retail market in India, its market size and growth, along with the share of major retail segments. Low organised retail penetration indicates huge growth potential of this market. This is followed by the major segments in the retail market, where food and grocery occupies the largest share. The various market entry strategies available for foreign retailers, franchising, cash and carry wholesale trading, strategic license agreements, joint ventures, manufacturing, distribution, have also been highlighted. A comparison of the traditional retail supply chain with the modern retail supply chain has also been given. The section also includes an overview of the various organised retail formats, hypermarkets, cash-and-carry, department stores, supermarkets, shop-in-shop, specialty stores, category killers, discount stores and convenience stores. Additionally, an analysis of Porter’s Five Forces provides an insight into the competitive intensity and attractiveness of the market.
An analysis of the drivers and challenges explains the factors leading to the growth of the market including low organised retail penetration, rising income levels and consumerism, growing retail space and mall boom, increasing availability of credit and changing demographics and consumer behaviour. Strong opportunity exists in the market due to low organised retail penetration in India. This coupled with the fact that income level and consumerism are rising, will drive the retail market. The key challenges identified are insufficiencies in supply chain, shortage of skilled manpower and real estate issues.
Key trends in the market have also been analysed which includes emergence of innovative retail formats, online and rural retailing and integration of various business strategies. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. A section on the investment scenario of this market is also highlighted, including investment and expansion plans, mergers and acquisitions, and partnership agreements in the retail sector.
The competition section provides an overview of the competitive landscape in the market and includes a detailed profile of the major players. It begins with a matrix showing the various retail formats under which the playe
This document contains questions on the topic Indian Economy between 1950-1990. Students must solve this assignment on their own. Plan, HYV seeds, marketable surplus etc.
In an uncertain and volatile international context characterised by competing priorities for public spending, pressure is mounting for policy makers to enhance the efficiency of public spending in all sectors, including education. There is no question that there is a strong economic and social case for continued public investments in education, so the dilemma is not on whether or not to invest in education, but rather on how to make the most of this investment and foster a “Value for money”.
Policy makers need to make smarter investment in education. They need to foster equal opportunities and quality outcomes, and the good news is that the pursuit of efficiency and equity in education can work together through smart investments in four areas. Policy makers also need to carefully design funding mechanisms, pay attention to budget planning, and build a culture of systematic evaluation in education to ensure alignment with education objectives, transparency, accountability and capacity building.
We discuss the many benefits that education brings to economies and societies, but also strategies that can help policy makers make smarter investment in education in order to reap its full benefits.
Speakers include:
– Luiz de Mello, Director of the Policy Studies Branch in the OECD Economics Department
– Andreas Schleicher, OECD Director for Education and Skills
– Andreea Minea–Pic, Analyst, OECD Directorate for Education and Skills
– Luka Boeskens, Analyst, OECD Directorate for Education and Skills
Moderated by Karine Tremblay, Senior Analyst, OECD Directorate for Education and Skills
How much does it cost to get that impact? Measuring cost effectivenessDavid Evans
This presentation, on cost effectiveness and cost benefit analysis for impact evaluations, was delivered at the World Bank DIME Field Coordinator workshop on June 8, 2016.
A range of resources for carrying out cost analysis are included in the final slides.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Value based questions class XII economics
1. Directorate of Education
Govt. of NCT of Delhi
Additional Support Material on Value Based Questions
for the Session 2012-2013
Subject: Economics
Class : XII
Under the guidance of :
Dr. Sunita S. Kaushik
Addl. DE (School/Exam)
Coordination by :
Ms. Renu Sabharwal
Principal, RPVV Surajmal Vihar
Prepared by :
1. Mr. Sanjeev Yadav
2. Mr. SPS Rathi
3. Mr. Ajay Kumar
4. Ms. Daisy Gupta
5. Mr. B.C. Thakur
Lecturer
Lecturer
Lecturer
Lecturer
Lecturer
GBSSS Ghonda
RPVV Shalimar Bagh
RPVV Nand Nagri
GGSSS Vivek Vihar
RPVV Surajmal Vihar
2. PART-I
MICRO ECONOMICS
Note:- Q1 to Q7 carry the weightage of 1 marks each and from Q8 to Q20 carry the weightage of 3/4
marks each
Ques1. In an underdeveloped economy why there is the need of efficient utilization of resources?
Ques 2. A farmer is getting more profit in producing opium than in production of wheat. In the situation
of famine which crop should be produced?
Ques3. Why has the power crisis increased in India?
Ques 4. According to law of demand by increasing the price of a good its demand decreases but in the
case of petrol, its demand is increasing with increase in price why? Explain.
Ques5. Inspite of having monopoly, Why the Indian Railway has not increased the fare for many years?
Ques 6. The market price of sugar rises when its demand increases. How the supply of sugar can be
changed so that price of sugar remain constant?
Ques7. Although there are few (more than one) firms in oligopoly. Even these firms can enjoy monopoly
power. How?
Ques 8. How can the productivity of Human resources be increased?
Ques 9. What efforts should be made in an economy for the continuous use of exhaustible natural
resources in production?
Ques 10. There are various sources of income a teacher has such as
1. He can earn Rs 40000 from teaching in school.
2. He can earn Rs 50000 by tuition/coaching
3. He earns Rs 60000 by writing help book guides.
What is the opportunity cost of teaching in school? Why should he choose teaching profession?
Ques 11- How is the law of diminishing marginal utility applied with regard to education/ knowledge?
3. Ques12- The demand of electricity is increasing but due to scarcity of resources its supply cannot be
increased. Give any two measures how the demand of electricity can be decreased?
Ques13. Even the price of petrol is very high but still its demand is very high. How can the demand of
petrol be decreased?
Ques 14. A manager of zoo wants to increase the revenue, which measure is more appropriate
i. Increase the entry fee
ii. Decrease the entry fee. Explain?
Ques15. Even the contribution of plastic industry in GDP is more then why it is not considered an Index
of social welfare?
Ques16. Explain the effects on the market equilibrium by imposing ban on the sale of GUTKA in Delhi?
Ques17. How can the tax policy of Govt be effective in controlling the supply of LIQUOR like harmful
product?
Ques 18. In a situation of fall in the sale of Ice-Cream, the Ice-Cream producer would like to reduce the
production. What factors of production fixed or variable will be reduced by him? Explain with reasons.
Ques 19. Availability of agricultural land (fixed factor) is limited in the world, but demand of food grain in
continuously increasing, is it possible to increase the supply of food grains by continuously increasing
variable factors like seeds, fertilizers etc. explain?
Ques 20. The demand for cooking gas is not falling inspite of regular hike in the price of cooking gas.
What will be the elasticity of demand for cooking gas. Explain giving suitable reasons in support of your
answer.
4. PART-II
MACRO ECONOMICS
Note:- Q1 to Q6 carry the weightage of 1 marks each and from Q7 to Q25 carry the weightage of 3/4
marks each
Ques1. Why comparing the GDP of various nations might not tell you which nation is better off?
Ques 2. Compensation to flood victims is a good social security measure by the Govt. But why it is not
included in the estimation of national income?
Ques3. GDP Calculation do not directly include the social costs of environmental damages for example
global warming, acid rain. Do you think these costs should be included in GDP? Why or Why not?
Ques4. Why did India devalue its currency in 1991?
Ques5. Do you think that a rise in BPO services a good source of supply of foreign currency?
Ques6. Suppose the present foreign exchange rate is 1$= Rs50 and if it falls to 1$=Rs60 should central
bank intervene in the foreign exchange rate?
Ques7. Why do non market economic activities like
1. Services of housewives
2. Voluntary services
3. Leisure time activities
5. help in the flow of goods and services of a country. But why these are not included in the estimation of
national income?
Ques 8. GDP growth rate in India for the last few years is more than 6% but still more than 28% of
population is lying below poverty line. Explain any two factors responsible for it.
Ques9. In the situation of inflation credit creation by commercial bank is beneficial for the bank but it
explain its negative impact on economy?
Ques10. In Indian market, money supply is the reason of rising price level. Explain any one measure of
central bank to control money supply?
Ques11. Why is the use of money more convenient for exchange than barter system. Explain?
Ques 12. Suppose all the customers of a commercial bank demand for their deposits at the same time
then how does central bank help to commercial bank in this situation.
Ques 13. Why do all the compensation in form of money than toys more convenient to an employee
working in toy manufacturing factory?
Ques14. Excess money supply is necessary for rapid economic development but it creates inflationary
situation. Write any two fiscal measures to control inflationary situation.
Ques15. Saving provides economics security in future but why it is not good from the viewpoint of
investment multiplier?
Ques 16. Why do the consumption expenditure of involuntary unemployed worker not zero, even at
zero level of income?
Ques17. What impacts will be on economy when there is planned investment is less than planned
saving? What steps should be taken by the govt to maintain equilibrium in the economy.
Ques 18. Increase in money supply is an effective measure to control economic depression but it creates
the burden of borrowing on economy. Explain any two measures by which economic depression can be
controlled even in the situation of increase in money supply.
Ques 19. In India unemployment is a major problem, if aggregate demand is equal to aggregate supply,
can it be called a situation of equilibrium?
Ques20. In India a majority of population is lying below poverty line due to inequality of ‘Income and
Wealth’ . How can budget be helpful in solving this problem?
Ques21. There has been consistent rise in prices of fruits and vegetables in Delhi for sometimes. Which
measures of budget will you support to reduce the prices of these commodities?
Ques22. Budget deficit creates disequilibrium in every economy but in developing countries like India,
why does Govt depend on it?
6. Ques23. Classify following items into Revenue Expenditure and capital expenditure. Give reason for your
answer.
1. Free Supply of Stationary to the students by the Govt.
2. Economic assistance given according to Ladli Scheme.
3. Expenditure on the construction of computer lab in school.
4. Expenditure on Mid Day Meal given to students by the Govt.
Ques24. Should a current account deficit be a cause for alarm? Explain.
Ques25. What impact will fall on the expenditure of an American citizen who comes to India for Medical
treatment if foreign rate is increased?
SUGGESTED ANSWERS
PART-I
MICRO ECONOMICS
Ans1- Developmental needs are more in under developed economy and these are fulfilled with our
limited resources.
Value- Critical Thinking
Ans2- Production of Wheat because in the situation of famine, food grain like wheat is required more
than opium
Value- Social Welfare
7. Ans3- Because its demand is greater than supply
Value- Awareness about efficient use of power
Ans4- Now a days petrol has become a necessary good and its supply is limited.
Value- - Critical Thinking
Ans5- Indian Railway is a major public sector undertaking and its main motive is social welfare not the
profit.
Value- Social Welfare
Ans6- The price of sugar remains constant when demand and supply increase in the same proportion.
Value- problem Solving
Ans7- Firms in oligopoly form cartel and in this way these firm can control over prices.
Value- Critical Thinking
Ans8 – The Productivity of Human Resource can be increased with the help of human capital formation
by providing training and skill to available labour force.
Value-creative Thinking
Ans9 – There are the various efforts1. To increase use of renewable resources
2. To explore the substitutes of resources
3. To reduce the wastage of resources.
4. To spread awareness about the effectively and optimum use of natural resources.
Value -Environmental Conservation
Ans-10 - Opportunity cost of teaching is writing books. He should choose teaching profession because it
provides maximum social welfare
Value- Social Welfare
Ans11- In this case the law of diminishing marginal utility will not apply because every effort to get
education/ knowledge increases the utility.
Value Analytic
Ans 12- 1. Use the energy/ electricity saving devices.
2. Use alternative sources of electricity such as solar energy, wind energy etc
Value -Environmental Conservation
Ans13 - 1. By car pooling
2. By using public transport system
3. By using alternative and renewable resources of petrol such as solar energy.
Value- Awareness for efficient use of resources
Ans 14- By reducing the entry fee the number of visitors will increase and total revenue will increase,
but if the entry fee is increased then number of visitors will decrease and total revenue will fall.
Value- Problem solving
8. Ans 15- Because in the production of plastic product, a lot of harmful gases are released in the
atmosphere.
Value-Environment Conservation
Ans 16- Due to the ban on the sale of GUTKA in Delhi, the supply of GUTKA will be reduced and the firms
producing GUTKA will shift their factors of production in the production of other related goods.
Consumer demand of GUTKA will reduce and hence in this way both the demand and supply of GUTKA
will reduce
Value-Social Health Conciousness
Ans 17- The production of LIQUOR like harmful product will be less profitable to the producer due to
increasing tax rate because the difference between the revenue and cost decreases and hence
producer’s profit will decrease and the supply of liquid will be decreased.
Value- Social Health Conciousness
Ans 18- when sale of ice-cream decreases then profit of producer will fall by which he will try to control
his cost of production but in short run he cannot change the cost of fixed factors therefore he will
reduce the cost of variable factors.
Value- Analytic
Ans 19 -Availability of agricultural land is limited in the world, production of food grains may be
increased by continuous increase in variable factors only upto a optimum combination with fixed factor.
After that law of negative returns is applied.
Value- Critical Thinking
Ans 20 - The elasticity of demand for cooking gas will be inelastic because there will be no change in
demand for cooking gas inspite of rise in price of cooking gas.
Value- Critical Thinking
PART-II
MACRO ECONOMICS
Ans 1- The well being of nation or standard of living of people is measured by per capita income
(GDP/ Total Population) and distribution pattern of income not only by GDP
Value- Critical Thinking
Ans 2- Because this is a transfer payment
Value- Implement of Knowledge
Ans 3- Yes because people’s well being is affected by these environmental damages.
No, it is very difficult to assess real damages in monetary terms.
Value- Awareness about social cost of GDP
9. Ans 4-India devalued its currency in 1991 to increase the flow of foreign exchange reserve.
Value- Analytic
Ans 5- Yes, because it is a export of services and good source of foreign currency.
Value- Critical Thinking
Ans 6- Yes, Central Bank should intervene in order to safeguard the interest of the importers.
Value- Creative Thinking
Ans 7- They are not included in national income, because of non-availability of data and problem in
measuring the proper monetary values of these services.
Value- Implication of Knowledge
Ans 8- There are two factors
1. Unequal distribution of GDP
2. Rise in price level
Value- Social Awareness
Ans 9- Money creation by commercial bank in the condition of rising prices increases money supply it
creates the situation of excess demand and consequently again increases the price level.
Ans 10- explain any one reason
1. Bank Rate
2. Cash Reserve Ratio (CRR)
3. Statutory Liquidity Ratio (SLR)
Value- Thinking
Ans 11- 1. Medium of Exchange
2. Store of Value
3. Standard of deferred payment
Value- Empathy
Ans 12- Explain the function of central bank as lender of the last resort.
Value- Analytic
Ans 13- There is lack of general acceptability in case of toys, while in the case of money there is general
acceptability so he can purchase any goods and services with the help of money at any point of time and
he does not face any problem of lack of double coincidence of wants.
Value- Empathy
Ans 14- Fiscal Measures
1. Increase in Tax rates
2. Reduce Public expenditure
Value- Critical Thin king
Ans 15- Money supply is reduced by increase in savings, which creates the situation of deficient demand
in economy, consequently it reduces the functioning of investment multiplier.
Value- Analytic
10. Ans 16- A worker has to incur some expenditure to fulfill his basic needs even at zero level of income.
Value- Empathy
Ans 17- If there is planned investment is less than planned saving this will create the situation of
deficient demand in the economy and it will result increase in the inventory stock of unsold goods. In
this situation of Govt. should take fiscal & monetary measures to increase aggregate demand.
Value- Analytic
Ans 18-1 . Decrease in Bank Rate
2. Decrease in statutory Liquidity Ratio (SLR)
3. Purchasing of Govt. Securities by the central bank
Value- Critical Thinking
Ans 19- No, because it is the situation of under-employment equilibrium.
Value- Problem Solving
Ans 20- In Indian budget progressive tax system can be a good measure to remove the inequality of
‘income and wealth’ and govt should provide social facilities like education, health & food grain to the
poor at subsidized rate.
Value- Problem Solving
Ans 21- Prices of fruits and vegetables can be reduced by providing subsidies to the producer of fruits &
Vegetables and govt. should also provide fruits and vegetables at subsidised rates to the consumers
through public distribution system.
Value- Problem Solving
Ans 22- Per capita income in developing countries like India is comparatively low so the tax receipts of
the Govt are not sufficient, but on the other hand govt has to incur heavy public expenditure for the
development of economy so Govt is compelled on budget deficit.
Value- Economic Awareness
Ans23 - 1,2 &4 are revenue expenditure because it neither create assets nor cause reduction in assets.
3 is capital expenditure because it increase assets of the Govt.
Value - Analytic
Ans 24- No, if deficit in current account is offset by the capital account otherwise such deficit has to be
met by following which is a cause for alarm.
1. Depleting Foreign Exchange reserves
2. Taking foreign Loans.
Value- Analytic
Ans 25- Expenditure on treatment will reduce because by the increasing foreign exchange rate, his
purchasing power will increase.
Value- Empathy