PRE-BOARD EXAM-(2023-24)

CLASS- XII
TIME : 3Hrs SUBJECT : ECONOMICS (030) MM- 80

Marking Scheme

SECTION- A [MACRO ECONOMICS)

Q.1 (C). A-ii, B-iv, C-iii, D-i 1
Q.2 (B) Lack of double coincidence of wants. 1
Q.3 (C) Assertion is true but Reason is false 1
Q.4 (D) Assertion is false but Reason is true. 1
Q.5 D). 288 1
[OR]
(C). (A)and (B) Both.

Q.6 (B). Statement-II is true and Statement-I is false. 1

Q.7 (C) Assertion is true but Reason is false. 1
Q.8 (C)) Credit side of capital account (OR ) (d) All of these 1
Q.9 (B). Statement-II is true and Statement-I is false. 1
Q.10 (C). C-iii 1
Q.11 A. Yes given statement is true. Through Re-allocation of resources 3
government allocates the resources in various production activities
keep in view to balance the goal of profit maximization and social
welfare.

Q.12 A Purchase of books by a stationary shopkeeper is intermediate good because 3

this purchase for resale.
B. Sanitizer and Mask purchase by a hospital for precaution from covid-19
is final good because it purchases for personal use.
C. Milk purchase by sweet shop to make milk cake is intermediate good
because this is purchase for raw material.

[OR]

A Operating Surplus refers to the income that is received from property and
entrepreneurship.
OS = Rent and Royalty + Interest + Profit
B Normal Resident may be an individual or an institution that residing in a
country and whose centre of economic interest also lie in that country.
C Domestic Territory refers to the political territory including with embassies,
military establishment, production platforms in international water, and ship
and aircraft operated in abroad of a country.
Q.13 Autonomous items Accommodating items 4
Autonomous items refer to those Accommodating items refer to those
economic transactions that are economic transactions that are
undertaken due to some economic undertaken due to cover deficit or
profit. surplus in BoP.
Autonomous transactions are Accommodating trans actions are
independent from state of BoP. dependent on state of BoP.

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 Autonomous transactions take
place on both current and capital
account.
Autonomous items are also
known as “Above the Line
items”.
Autonomous items
Autonomous items refer to those
economic transactions that are
undertaken due to some economic
profit.
Autonomous transactions are
independent from state of BoP.
Autonomous transactions take
place on both current and capital
account.
Autonomous items are also
known as “Above the Line
items”.
14 Explaination required
AS A WHOLE
Accommodating transactions take place
on official reserve account.
Accommodating items are also known
as “Below the Line items”.
Accommodating items
Accommodating items refer to those
economic transactions that are
undertaken due to cover deficit or
surplus in BoP.
Accommodating trans actions are
dependent on state of BoP.
Accommodating transactions take place
on official reserve account.
Accommodating items are also known
as “Below the Line items”.
4

Q.15 2+2

OR
Given
Y=10000, autonomous Consumption = 2000, MPS = 0.25 ( So MPC will
be = 0.75)
As we Equilibrium situation will be :AD=AS
(where AS = Y and AD= C+I)
So putting the given values
Y= C+I (where C = Ca+bY)
Ca + bY + I = Y
2000 + (0.75x10000) + I = 10000
9500 + I = 10000
I = 500

Q.16 (A ) (a) Y= C + I 1.5+1.5

Y= (100+ 0. 8Y) +200 +1.5+1.5

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 = 300+0.8 Y
Y-0.8 Y= 300
0.2 Y =300
Y= 300/0.2 =Rs.1500 crores
(b) C= C + 0.8 Y
Substitute the value of Y = 1500
= 100+ 0.8(1500)
= 100 + 1200 = Rs.1300 crores

Savings = Income (Y)- Consumption (C)

= 1500 - 1300
= Rs.200 crores
OR

(B )Deflationary gap is that situation when Aggregate Demand is lesser

than Aggregate Supply corresponding to full employment level. (1)
Two fiscal measures are to control it are:

a) Decrease in Taxes - To curb the deflationary gap the government may 4+2
decrease the taxes. This may increase the purchasing power in the hands
of the people which in turn may increase the Aggregate Demand in the
economy to bring it equal to the Aggregate Supply. (1 ½)

b) Increase in Government Expenditure- To curb the deflationary gap the

government may increase its expenditure. This may increase the
purchasing power in the hands of the people which in turn may increase
the Aggregate Demand in the economy to bring it equal to the Aggregate
Supply.
(1 ½)

Q.17 A. Value added Method or product Method : 3+3

GDP = Value of output – Intermediate Consumption.
or
B. GDP = Sale + Change in stock - Intermediate Consumption Income
Method :
GDP = Wage + Rent + Interest + Profit
or

GDP = COE + Rent + Interest + Profit + Contribution in social security

schemes
+Mixed income.

C. Expenditure Method :
GDP = PFCE +GFCE + Investment Expenditure + Net Export.

The value of GDP remains same in each method due to Circular Flow of
National income.

[OR]

[A] Net Factor Income from Abroad (NFIA) :

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 As known
NFIA = FIFA – FITA
So
GNP = COE + Rent + Interest + Profit + Dep. + NFIA
fc

GNP = COE + Rent + Interest + Profit + (FIFA – FITA)

fc

6150 = 3000 + 800 + 900 + 1300 + (900 - 800) + FIFA – 80

6150 = 6020 + FIFA
FIFA = 130

NFIA = FIFA – FITA

NFIA = 130 – 80
NFIA = 50

[B]National Income by following data :

NNPfc = GNP – Dep. fc

= 6150 – 100
NNP = 6050
fc

National Income = 6050 (A ) (a) Y= C + I

Y= (100+ 0. 8Y) +200
= 300+0.8 Y
Y-0.8 Y= 300
0.2 Y =300
Y= 300/0.2 =Rs.1500 crores
(b) C= C + 0.8 Y
Substitute the value of Y = 1500
= 100+ 0.8(1500)
= 100 + 1200 = Rs.1300 crores

Savings = Income (Y)- Consumption (C)

= 1500 - 1300
= Rs.200 crores

[SECTION-B [INDIAN ECONOMIC DEVELOPMENT]

Q.18 A). iv, ii, i, iii (B). i, ii, iii, iv (C). ii, iv, iii, i (D). iv, i , ii , ii 1
Q.19 (B). चीन 1
Q.20 (A). Statement-I is true and Statement-II is false. 1
Q.21 (C). C-iii 1
Q.22 (C). Assertion is false but Reason is true. (OR) d) Guarding green cover 1
1.
Q.23 (D). Assertion is true but Reason is false. 1

Q.24 (C). C-iii 1

Q.25 (C). C-iii 1

Q.26 (A). Both Assertion (A) and Reason (R) are true and reason is the correct 1
explanation of Assertion. (OR) (D) Establishment of Metro in Delhi

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Q.27 (D). JwaharLal Nehru is known as architecture of planning in India. 1
Q.28 Any three difference 3
Q.29 Economic Growth is an increase in the aggregate output of goods and services 3
in a country in a given period of time. Equity refers to reduction in inequality of
income or wealth, uplifting weaker sections of the society and equal
distribution of economic power. Higher levels of growth and social justice are
two main objectives of India’s economic planning. When these two objectives
are clubbed together, it is called development with social justice.

Q.30 4
Explanation is to be needed that Meena should be considered as a worker
because she is engaged in a economic activity and contributes in GDP.

Q.31 . Co-operative Credit Societies are financial entities established on a 4

cooperative basis and, do banking functions with their members only.
Customers of cooperative Societies are also its owners. These societies provide
a wide range of regular banking and financial services to their members only.

b. Explain the non-institutional sources of rural credit-

i. Money lenders.
ii. Landlord.
iii. Agricultural traders.
iv. Relatives.
OR
Explanation is to be needed of following points related to need and important of
Human Capital with concept of Human Capital–
1. Increase in Production.
2. Improve in Quality of life.
3. Increase in Production Participation.
4. Improve in Economic and Social Equality

Q.32 MARKING AS THE WHOLE 4

Q.33 31. a- i. Lack of demand for Micro, Small and Medium Enterprise products . 1.5+1.5+
ii. Lack of credit facilities. 1.5+1.5
31. b- Huge contributes in the GDP and Indian export.
31. c- No, Micro, Small and Medium Enterprise requires less capital than
labour.
31. d- Karve Committee.
Q.34 Explanation is to be needed of following points related to need and important of 6
Human Capital with concept of Human Capital–
1. Increase in Production.
2. Improve in Quality of life.
3. Increase in Production Participation.
4. Improve in Economic and Social Equality
Etc.
[OR]

A. Agricultural Marketing: It is the process that involves assembling, storage,

processing, transportation, packaging, grading, and distribution of agricultural
products across the country.

B. NABARD:NABARDstands National Bank for Agricultural and Rural

development which was established in 1982. It is the apex body which

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coordinates the smooth functioning of different financial institutions working
for expansion of rural credit.

A. Agricultural Diversification: Agricultural Diversification refers to the

change in cropping pattern as well as shifting of workforce from agriculture to
other allied activities and non-agriculture sector.

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