SECTION-A (Macro Economics)
1. In the context of Current Account transactions of Balance of Payment, identify the incorrect statement from the following:
(Choose the correct option)
Options:
(A) Export of goods and services are recorded as credit items.
(B) Import of goods and services are recorded as debit items.
(C) All transfer payments are recorded as debit items.
(D) All transfer receipts are recorded as debit items.
2. From the items given in Column-I and Column-II, choose the correct pair.
Options:
(A) (a)-(i)
(B) (b)-(ii)
(C) (c)-(iii)
(D) (d)-(iv)
3. Read the following statements carefully:
Statement-1 : Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.
Statement-2 Managed floating exchange rate system is also known as 'hybrid system'.
In the light of the given statements, choose the correct option from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
4. "Irfaan (a student) borrows 80,000 to finance his college fee. He plans to begin repaying the loan six months after his graduation, making payments over a span of ten years,"
Based on above text, identify the indicated function of money. (Choose the correct option)
Options:
(A) Medium of Exchange
(B) Unit of Account
(C) Standard of Deferred Payments
(D) Store of Value
5. Suppose, the saving curve of an economy makes an intercept at a negative value of 50 crores. In the economy, 20% of an increase in income is saved.
In the light of above context, identify the value of investment multiplier (K).
Options:
(A) 2
(C) 10
(B) 5
(D) ∞ (infinite)
6. Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion (A): Public goods are those goods that are collectively consumed by the public.
Reason (R): Public goods are excludable and rivalrous in nature.
Options:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
7. Suppose, the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores, the value of saving would be ₹ _________ crores. (Choose the correct option to fill up the blank)
Options:
(A) 100
(C) 500
(B) 200
(D) 800
8. In the context of the Commercial Banks, which of the following statements are correct? (Choose the correct option)
(I) Deposits received are liabilities for Commercial Banks.
(II) They are creator of credit in the economy.
(III) They accept deposits from general public.
(IV) They accept deposits on behalf of Reserve Bank of India.
Options:
(A) (I), (II) and (III)
(B) (II) and (III)
(C) (I) and (II)
(D) (I) and (IV)
9. If a country exports goods worth of ₹ 600 crores and imports goods worth of ₹ 450 crores, the value of Balance of Trade of the country would be _________ of ₹ __________crores.
(A) deficit, 150
(B) surplus, 150
(C) deficit, 1,050
(D) surplus, 1,050
10. From the set of terms given in Column-I and Column-II, choose the correct pair:
Options:
(A) (a)-(i)
(B) (b)-(ii)
(C) (c)-(iii)
(D) (d)-(iv)
11. (a) Calculate the value of Net Value Added at Factor Cost (NVAFC):
OR
(b) Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports (X-M).
12. "The Government had launched Incredible India Campaign to promote tourism in various parts of the country." Elaborate the impact of this campaign on foreign exchange reserves and Balance of Payment of India.
13. "Under the Ayushmaan Bharat Scheme, the government provides free medical treatment to the poorer section of the society." Identify and explain the nature of budget expenditure and its objective, indicated in the given statement.
14. Suppose in an economy, primary deposits are₹ 500, if the Reserve Ratio is 25%. Estimate the total deposits created and the total lending by the banking system.
15. (a) In an economy; C = 200 + 0.75 Y (where C is consumption expenditure and Y is National Income). Investment expenditure is ₹ 4,000 Crore.
Calculate the following:
(i) Equilibrium level of income.
(ii) Total consumption expenditure at equilibrium income level.
OR
(b) Explain the adjustment mechanism in case ex-ante savings are greater than ex-ante investments.
16. Read the following text carefully:
Union Food and Consumer Affairs Minister said that the Central Government has taken many proactive steps in the past few years to control retail prices of food items. He said that the government aims to keep inflation under control without compromising the country's economic growth. Retail inflation inched up to a three-month high of 5.55% in November 2023 driven by higher food prices. Inflation has been declining since August 2023, when it touched 6.83%, 140 new price monitoring centres had been set up by the Central Government to keep a close watch on wholesale and retail prices of essential commodities.
The Government has banned the export of many food items like wheat, broken rice, non-basmati white rice, onions etc. It has also reduced import duties on edible oils and pulses to boost domestic supply and control price rise.
On the basis of the given text and common understanding, answer the following questions:
(a) Mention the number of new price monitoring centres set up by government.
(b) State any two proactive measures taken by government to boost domestic supply and reduction in prices.
(c) Explain any one monetary measure used to control inflation.
17. (a) (i) Explain any two precautions to be adopted while estimating National Income by Expenditure method.
(ii) "Higher Gross Domestic Product (GDP) always means higher per capita availability of goods in the economy." Defend or refute the given statement as the index of welfare of the people of that country.
OR
(b) (i) Distinguish between Stock and flow variables, using suitable examples.
(ii) Explain the components of 'Profit' as per Income Method of estimating National Income (NNPFC).
SECTION-B
(Indian Economic Development)
18. __________sector was the primary focus of the Great Leap Forward in China. (Fill up the blank with correct option)
Options:
(A) Tax
(B) Industrial
(C) Financial
(D) Educational
19. Study the following picture:
Identify and select, the recent phenomenon in which demand for resources surpasses their supply.
Options:
(A) Economic growth
(B) Environmental crisis
(C) Technological advancement
(D) Cultural evolution
Note: The following question is for the visually impaired candidates only, in lieu of Q. No.19
Identify, which of the following is NOT one of the strategies for Sustainable Development.
Options:
(A) Use of non-conventional sources of energy
(B) Use of fossil fuel for transportation
(C) Use of traditional knowledge
(D) Use of organic compost manure
20. Read the following statements carefully:
Statement-1: Hired workers may be regular salaried workers or casual workers.
Statement-2: Regular salaried employment is a major source of employment in rural areas in India.
In the light of the given statements, choose the correct option from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
21. From the terms given below in Column-I and Column-II, choose the correct pair of statements:
Options:
(A) (i)-(a)
(B) (ii)-(b)
(C) (iii)-(c)
(D) (iv)-(d)
22. "It is short-term unemployment occurring, as people transit between jobs." On the basis of given definition, identify the type of unemployment indicated. (Choose the correct option)
Options:
(A) Disguised Unemployment
(B) Seasonal Unemployment
(C) Open Unemployment
(D) Frictional Unemployment
23. Read the following statements carefully: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion (A): Prior to economic reforms, public investment in social infrastructure by China resulted in better Human Development Indicators (HDI).
Reason (R) China is ahead of India and Pakistan on many Human Development Indicators (HDI).
Options:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
24. Study the following image carefully:
Identify, the trade practice that has successfully replaced foreign goods with domestic production.
Options:
(A) Export Promotion
(B) Export Substitution
(C) Import Proliferation
(D) Import Substitution
Note: The following question is for the visually impaired candidates only, in lieu of Q. No.24.
_________ refers to a trade policy aimed at reducing reliance on imported goods by encouraging domestic production.
Options:
(A) Export Promotion
(B) Export Substitution
(C) Import Substitution
(D) Import Proliferation
25. From the following terms given in Column-I, match the correct pair of meaning given in Column-II:
