KENDRIYA VIDYALAYA SANGTHAN, JAMMU REGION

MARKING SCHEME SET :11

Q1. D

Q2. B

Q3.A

Q4. A

Q5. False , Gross value added at market price is for a signal firm . Both the terms will be equal
only when it is assumed that there is one production unit in the economy .

OR

Option B

Q6.MPC =0.5

K=1/[1-MPC]

K=1/0.5=2

OR

Option A

Q7. D

Q8. Depreciation of domestic currency

OR

Option C

Q9. C

Q10. B

Q11. (I) Profit earned by foreign companies in india is a part of domestic product of Indian
because the companies are within the domestic territory of india .
(ii) Salary of Indians working in the Russian Embassy in india is not included in the domestic
product of india because Russian Embassy is not a part of domestic terriotary of india .

(III) Profit earned by a branch of state bank of India in Japan is not a part of the domestic
product of india because the branch of state bank bank of india in Japan is not within the
domestic territory of india .

Q12.Appreciation of domestic currency means lower price of foreign currency in terms of

domestic currency. This increases the price of domestic goods for foreign buyers. This means
imports become cheaper. As a result the demand for imports may rise. Example: 1$ = 60 Rs is
changed to 1$ = 55 Rs. It is appreciation of domestic currency & now importing 1 dollar good
has become cheaper so import will increase.

Q13. We Know,

K(Multiplier ) = change y/change 1

We also know that , K=1/1-MPC

Substituting the value of MPC, K=1/1-0.5

=1/0.5=2

We Know, K=Change y/change 1 and change y=1000

Thus, 1000/change I =2

Change I = 1000/2=500

Additional investment by the government = RS 500

Q14. Due to pandemic, there is situation of deficient demand. To correct the situation, two
fiscal measures are as follow:

1. Taxation

2. Government expenditure

Q15. Functions of a central as a bankers bank and supervisor are as under:

1. Custodian of cash reserves

2. Lander of last resort

3. Clearing house function

4. Supervisor

OR

Following observations may be noted in this regard:

1. Credit creation acceletes the process of growth by expanding the availability of credit for
purpose of investment.

2. Credit creation contributes to the process of growth by expanding size of the market(or
aggregate demand), as the availability of credit for the purchase of consumer durables
increases.

Q16. GVAmp=

Domestic sales + change in stocks + Exports - single use producer goods

= 200 + (-) 10 +10 - 120

=200 - 10 + 10 - 120

= 80

Q18. Option- (a)

Q19. Option- (a)

OR

Option- (b)

Q20. Option- ©

OR

Communes began as amalgamations of collective farms

Q21. Option- (d)

Q22. Option-(a)

Q23. Option- (c)

Q24. Option- (c)

Q25. Option-C)

OR

Micro credit refers to credit and other financial services provided to the poor through Self Help
Groups (SHGs) and non government organizations.

Q26. Option-(b)

Q27.Option-(a)

Q28. it is in two ways:

(i) Organic farming involves a labour -intensive process of production. India has an edge
because it has abundance of labour supply in rural areas.

(ii) Organic farming depends on Cattle manure as a significant farm input.India has an edge as it
has huge stock of cattle population.

Q29. The given statement is true. Disguised unemployment is a situation where the marginal
productivity of labour is zero. In India, this situation is often witnessed, as farming is more of a
family affair in rural areas and most of the members are generally engaged on the farms
without any direct contribution to the production process. This problem persists in rural India
due to lesser availability of jobs.

OR

Migration to urban areas leads to them becoming increasingly overpopulated, with most of the
rural migrants working in the informal sector and living in slums and putting additional pressure
on resources.

Q30.The annual growth rate of population of china is lower than India it is because the china
adopted one child policy due to which its population growth rate declined.

The sex ratio in both the countries is biased and unequal. Son preference is the major reason
for this difference both the countries are taking measures as to improve the situation.

Q31 The country's growing industrialization made it possible for many of its strategic industries
to grow such as iron and steel, aircraft manufacturing, shipbuilding, chemical industry,
prescriptions, etc. Both of them have improved and enriched the country's national defense
infrastructure.

OR
· Development of products and enterprises over the globe.

· The inflow of foreign capital prompted more investor interest.

· The blast in the service sector supported Eco the travel industry.

· Gross domestic product expanded on numerous occasions.

· Work openings

Q32. The brain drain reduces economic growth through the depletion of a source country’s
human capital assets and, additionally, through loss of return on investment in education. It’s a
serious problem that most of the developing countries like India are facing today.
Q33 (a) Human capital has an effect on economic growth and can assist in the development of a
country's economy by increasing people's knowledge and skills. The amount of skilled labour
required is determined by the rate of economic growth spurred by consumer spending and
business investment.
(b) The women employed in low paid work because of the following reasons: A majority of
women in the country are less educated than men, thus they are primarily working as unskilled
labor and thus get fewer wages.
Q34 A)An agricultural subsidy (also called an agricultural incentive) is a government incentive
paid to agribusinesses, agricultural organizations and farms to supplement their income,
manage the supply of agricultural commodities, and influence the cost and supply of such
commodities .