Navodaya Vidyalaya Samiti, 2024-25
Pre-board 2
Subject Economics, class XII
Marking Scheme (PRE BOARD 2 SET 1 )
1. C
2. B
3. C
4. C
5. A
6. C
7. D
8. A
9. A
10. D
11.Problem of double counting refers to adding the value of one output
more than once while estimating National Income. Problem: Due to this the
National Income is over estimated
Methods of avoiding:
This can be avoided by two methods
1. Final Output Method
In this method only the value of final output are included. The value of
intermediate cost are not included.
2. Value Added Method:
In this method the value added in various stages of production are taken in
to accounting
while estimating National Income instead of adding value of output in each
stage. The value of the final, output is equal to the sum of the value added
in various stages of
production
Value of Final Output = ∑ Value Added
OR
(i) Yes, it will be included in national income as it is a part of factor income
from abroad. (ii) No, it will not be included in national income as it is a part
of the factor income paid to
abroad
(iii) No, it will not be included in national income as it is a part of the factor
income paid to
abroad.
12.Effective demand refers to that level of output where aggregate demand
is equal to the aggregate supply. If aggregate demand exceeds aggregate
supply, it means buyers are planning to buy more goods and services than
producers are planning to produce. Thus, the inventories in hand with the
producers will start falling. As a result, producers will plan to raise the
production. This will increase the level of income up to the level aggregate
demand is equal to aggregate supply.
13.Government can impose higher rate of tax on income of the rich and on
the goods consumed by the rich. This will bring down disposable income of
the rich. The amount so collected can be spent on providing free services,
like education, subsidized food to the poor people, e.g., this will raise
disposable income of the poor reducing the gap between rich and poor.
14.
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 transactions are
independent from state of BoP. dependent on state of BoP.
Autonomous transactions take Accommodating transactions take
place on both current and capital place on official reserve account.
account.
Autonomous items are also known Accommodating items are also
as “Above the Line items”. known as “Below the Line items”.
OR
Managed Floating Exchange Rate: The floating rate influenced by buying
and selling of foreign exchange by the central bank in the foreign exchange
market is known as "Managed Floating Exchange Rate".-
15. 1. (D) Both (b) and (c) 2. (A) Tighten the money supply
in the economy -
3. (A) Supply foreign exchange from its stock 4. (B) Money supply will
decrease
16.Three methods of calculating the GDP of a country:
Value added Method or product Method:
GDP = Value of output – Intermediate Consumption.
or
GDP = Sale + Change in stock - Intermediate Consumption.
Income Method:
GDP = Wage + Rent + Interest + Profit
or
GDP = COE + Rent + Interest + Profit + Mixed income.
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.
Brief explanation on the same value of GDP.
[OR]
[A] Gross national product at market price by income method = Rs. 1250
crores
[B] Gross national product at market price by expenditure method = Rs.
1250 crores-
17. (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
(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
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)
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)
Indian Economic Development -
18. (D). Jawahar Lal Nehru is known as architecture of planning in
India.-
19 (A). Both Assertion (A) and Reason (R) are true and reason is the correct
explanation of Assertion. (OR) (D) Establishment of Metro in Delhi-
20.(A). Statement-I is true and Statement-II is false.-
21.(C). C-iii-
22.(C). Assertion is false but Reason is true. -
23.(D). Assertion is true but Reason is false.-
24.(C) Both the statements are true. -
25. D-
26. C-
27. D-
28. i) Development of Marketing Infrastructure
ii) Marketing Information Systems
iii) Farmer Cooperatives and Producer Organisation
iv or any other -
Q.29
a. Co-operative Credit Societies are financial entities established on a
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]
Casual Worker:The workers who are not hired on regular basis and will not
get thesocial security benefits are known as casual workers.
Regular Worker:The workers who are hired by an employer on the regular
basis and will get the social security benefits are known as regular workers.
-
Q.30
Indian traditional handicrafts industries in 18th century were well known in
the world. But British government destroys these handicrafts industry by
using discriminatory tariff policy. British government allowed tariff free
import of British industries product in to India and at the same time heavy
duty was imposed on the export of Indian handicrafts products. As result
British product started gaining in Indian market and Indian handicrafts loss
their market.
[OR]
Economic Growth is an increase in the aggregate output of goods and
services 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.31
Any four points with brief explanation.
Q.32
At least four points is required to explain by student on basis of
comparative study about all three countries.
Q.33
1 mark for meaning and
5 marks for any five points with explanation
[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: NABARD stands National Bank for Agricultural and Rural
development which was established in 1982. It is the apex body which
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.
Q.34
(I) NCERT
(II) 2009
(III) To be judged as whole
