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HomeSoftware DevelopmentCBSE Class 12 Economics Solved Query Paper 2020 - Set 3 (58/3/3)

CBSE Class 12 Economics Solved Query Paper 2020 – Set 3 (58/3/3)


Economics (Code No. 58/3/3) 

Time allowed : 3 hours
Most Marks: 80

Common Directions: 

Learn the next directions very rigorously and strictly comply with them : 

(i) This query paper includes two sections – A and B. All questions are obligatory. 

(ii) Query numbers 1 – 10 and 18 – 27 are very short-answer questions carrying 1 mark every. They’re required to be answered in a single phrase or one sentence every.  

(iii) Query numbers 11 – 12 and 28 – 29 are short-answer questions carrying 3 marks every. Solutions to them shouldn’t usually exceed  60 – 80 phrases every. 

(iv) Query numbers 13 – 15 and 30 – 32 are additionally short-answer questions carrying 4 marks every. Solutions to them shouldn’t usually exceed  80 – 100 phrases every.  

(v) Query numbers 16 – 17 and 33 – 34 are lengthy reply questions carrying 6 marks every. Solutions to them shouldn’t usually exceed  100 – 150 phrases every.  

(vi) Solutions needs to be transient and to the purpose. Additionally, the above phrase restrict be adhered to so far as potential.  

(vii) There is no such thing as a general alternative. Nonetheless, an inner alternative has been supplied in 2 questions of 1 mark, 2 questions of three marks, 2 questions of 4 marks and a couple of questions of six marks. Solely one of many decisions in such questions need to be tried.  

(viii) Along with this, separate directions are given with every part and query, wherever needed.

Part – A

(Macroeconomics)

1. Identify the elements of cash provide. 

Reply: The 2 elements of the cash provide are as follows:

  1. Demand deposits with the banks comparable to financial savings and present account.
  2. Time deposits with the financial institution comparable to Mounted deposits and recurring deposits.

2. Which of the next will not be a non-tax income receipt? (Select the proper different) 

(A) Items and Companies Tax

(B) Exterior grants

(C) Dividends and earnings 

(D) Disinvestment 

Reply: (A) Items and Companies Tax

3. If the trade price of the house foreign money rises, the worth of exports of the economic system is more likely to ________. (Fill within the clean with appropriate reply)

Reply: fall

4. Deflationary hole signifies _________ (extra/poor) demand in an economic system. (Fill within the clean with appropriate reply) 

Reply: poor 

5. State the which means of Involuntary Unemployment. 

Reply: Unemployment by which people who find themselves keen and capable of work on the current wage price don’t get work is called Involuntary Unemployment. Whereas calculating the whole unemployment in an economic system, solely involuntary unemployment is taken into account.

OR

Common Propensity to Save (APS) is the ratio of ________ and ________. (Fill within the blanks with appropriate reply) 

Reply: Whole Financial savings and Whole Revenue

Average~Propensity~to~Save(APS)=frac{S}{Y}

6. Underneath Statutory Liquidity Ratio, business banks are required to maintain a fraction of _________ within the type of liquid property. (Select the proper different) 

(A) Whole deposits 

(B) Time period deposits

(C) Whole demand and time period deposits

(D) Present deposits 

Reply: (A) Whole deposits 

7. State, whether or not the next assertion is true or false : 

‘‘Authorities finances is an annual assertion exhibiting precise receipts and precise funds of the federal government for the final fiscal 12 months.’’

Reply: False, Authorities Price range is an annual assertion that exhibits item-wise estimates of the receipts and expenditures throughout a fiscal 12 months. 

8. Main deficit might be zero if _________. (Fill within the clean with appropriate different) 

(A) Fiscal deficit = Curiosity funds

(B) Fiscal deficit < Curiosity funds

(C) Fiscal deficit > Curiosity funds

(D) Income deficit < Fiscal deficit 

Reply: (A) Fiscal deficit = Curiosity funds

9. State, whether or not the next assertion is true or false : 

‘‘The official reserve transactions are taken because the accommodating merchandise in Stability of Fee (BOP).’’ 

Reply: True

10. Outline Accommodating gadgets in Stability pf Fee.

Reply: Financial transactions that happen to appropriate the BoP imbalances by the financial authority are referred to as Accommodating Objects. These transactions assist in sustaining BoP identification; i.e., is affected by optimistic or adverse BoP. One other title for Accommodating Objects is Beneath the Line.

11. Distinguish between a ‘Present account deficit’ and a ‘Commerce deficit’. 

Reply: Present Account Deficit is a deficit that arises when the whole of the debit aspect of the present account is greater than the whole of the credit score aspect. Merely put, it arises when the international trade receipts within the present account fall in need of the international trade funds. This deficit signifies the web outflow of international trade.

Commerce Deficit is a deficit when the funds for the worth of import of seen gadgets are greater than the receipts for the worth of export of seen gadgets.

Distinction between Present Account Deficit and Commerce Deficit

Foundation

Present Account Deficit

Commerce Deficit

That means

Present Account Deficit is a deficit that arises when the international trade receipts within the present account fall in need of the international trade funds. A present Commerce Deficit is a deficit when the funds for the worth of import of seen gadgets are greater than the receipts for the worth of export of seen gadgets.

Consists of

It consists of all seen items and providers and unilateral switch. It consists of solely all seen items.

Arises when

Autonomous Present Receipts < Autonomous Present Funds Imports > Exports

OR

‘‘Stability of Fee (BoP) is all the time balanced within the accounting sense.’’ Defend or refute the given assertion with legitimate causes.

Reply: Stability of Fee (BoP) is an announcement of all transactions between entities in a single nation and the skin world over a specified time interval, comparable to 1 / 4 or a 12 months. It lists all interactions between residents of 1 nation and residents of different nations that contain companies, organizations, or governments. Stability of Funds consists of all of the financial transactions, which contain the switch of holding or title of products, and providers.

The given assertion, ‘‘Stability of Fee (BoP) is all the time balanced within the accounting sense.’’ is defended. It’s as a result of the steadiness of funds accounting makes use of the double-entry bookkeeping system like Trial Stability whereas recording the transactions between the home nation and the remainder of the world. Similar to a typical enterprise, a BoP additionally has two sides Credit score Facet and Debit Facet. Nonetheless, if there may be any distinction or deficit/surplus created by autonomous transactions, they’re corrected by the corresponding deficit/surplus within the accommodating transaction.

12. From the next information, calculate (a) Income deficit and (b) Fiscal deficit:

 

Reply: The income deficit refers back to the extra of income expenditure over income revenue in a monetary 12 months. It primarily focuses on the income features of the federal government, like income expenditure and income revenue/receipts. The components for calculating income deficit is:

Income Deficit = Income Expenditure – Income Receipts

The fiscal deficit refers back to the extra of whole expenditure over whole receipts/revenue, excluding borrowings, in a fiscal 12 months. It primarily focuses on the borrowings of the federal government. The components for calculating fiscal deficit is:

Fiscal Deficit = Whole Expenditure – Whole Receipts (besides borrowings)

OR

= (Income Expenditure + Capital Expenditure) – (Income Receipts + Capital Receipts excluding Borrowings)

Within the given query, with the assistance of the given figures, the income and financial deficit are:

Income Deficit = Income Expenditure – (Tax Income + Non-tax Income)

= 3,500 – (1,000 + 2,300)

= 3,500 – 3,300

Income Deficit = ₹200 Crores

Fiscal Deficit = (Income Expenditure + Capital Expenditure) – (Tax Income + Non-tax income + Restoration of Loans + Disinvestment)

= (3,500 + 580) – (1,000 + 2,300 + 145 + 300)

= 4,080 – 3,745

Fiscal Deficit = ₹335 Crores

13. ‘‘To spice up the falling demand within the economic system, the Reserve Financial institution of India lately diminished Money Reserve Ratio’’ Elaborate the rationale behind the steps taken by the Central Financial institution.

Reply: Money Reserve Ratio is the minimal proportion of the web demand and time liabilities that business banks need to hold with the Central Financial institution. A rise or lower within the Money Reserve Ratio impacts the business financial institution’s skill to create credit score within the economic system. 

If there may be falling demand within the economic system, the Central Financial institution (RBI) reduces the Money Reserve Ratio which helps in rising the reserves of economic banks. Now, as business banks have now extra reserves with them they will simply present loans to the general public due to their elevated credit-creating energy. Merely put, by decreasing Money Reserve Ratio, the Central Financial institution goals at rising the money availability with them, encouraging better funds on the common publics’ disposal, which finally ends in the creation of upper mixture demand within the economic system, boosting its falling demand. 

14. Within the given determine, what does the hole ‘KT’ signify ? State and talk about any two fiscal measures to appropriate the scenario. 

Graph

 

Reply: Within the above-given Revenue and Mixture Demand graph, KT represents the inflationary hole. 

An inflationary Hole is a niche by which the precise mixture demand exceeds the mixture demand required for the institution of full employment equilibrium. This hole or extra demand occurs as a result of rise in cash provide and availability of credit score at straightforward phrases. The inflationary hole can happen due to varied causes comparable to an increase within the propensity to eat, discount in taxes, enhance in funding, enhance in authorities expenditure, deficit financing, and so on.; and may have an effect on the output, employment, and common value stage.

The fiscal measures (fiscal measures or insurance policies are the measures of the Central Authorities) to appropriate the scenario of inflationary hole or extra demand are as follows:

  1. Lower in Authorities Spending: Authorities spends an enormous sum of money on infrastructural and administrative actions. To manage the scenario of inflationary hole, it ought to scale back its expenditure to the utmost potential restrict. It ought to give extra emphasis on the discount of expenditure on protection and unproductive works. It’s as a result of expenditure on these actions not often helps within the progress of a rustic. Therefore, a discount in authorities spending will scale back the extent of mixture demand within the economic system and can finally assist in correcting inflationary pressures within the economic system.
  2. Enhance in Taxes: When there may be an inflationary hole, the Authorities will increase the tax charges and even imposes some new taxes to cut back the extent of mixture expenditure within the economic system. The rise in taxes finally helps in controlling the scenario of extra demand or inflationary hole.

For Visually Impaired Candidates :

What is supposed by deflationary hole? State and talk about any two fiscal measures to appropriate the scenario of deflationary hole.

Reply: When the deliberate mixture expenditure of an economic system falls in need of mixture provide on the full employment stage, the scenario of poor demand rises, which in consequence offers rise to a deflationary hole. Therefore, the deflationary hole is a niche by which the precise mixture demand of an economic system falls in need of the mixture demand required for the institution of full employment equilibrium. The deflationary hole can happen due to varied causes comparable to a lower within the propensity to eat, a rise in taxes, an increase in imports, a fall in funding expenditure, a lower in authorities expenditure, and so on., and may have an effect on the output, employment, and common value stage.

The scenario of deflationary hole occurs due to a lower within the cash provide and availability of credit score. The fiscal measures (fiscal measures or insurance policies are the measures of the Central Authorities) to appropriate the scenario of deflationary hole or poor demand are as follows:

  1. Enhance in Authorities Spending: Authorities spends cash on infrastructural and administrative actions. To manage the scenario of the deflationary hole, it ought to enhance its expenditure on totally different public works comparable to the development of flyovers, buildings, roads, and so on., in order that it may present revenue to folks employed for these public works. Therefore, a rise in authorities spending will enhance the extent of mixture demand and can finally assist in correcting the scenario of deflationary hole or poor demand.
  2. Lower in Taxes: When there’s a deflationary hole, the Authorities decreases the tax charges and even abolishes a number of the current taxes. The lower in taxes raises the buying energy of individuals which in consequence will increase their disposable revenue, rising their skill to spend extra on funding and consumption. Therefore, a lower in taxes raises the extent of mixture demand and helps in controlling the scenario of deflationary hole or poor demand.

15. Calculate Gross Worth Added at Market Worth (GVAMP) from the next information:

 

Reply: The worth added by every manufacturing firm can also be referred to as as Gross Worth Added at Market Worth (GVAMP). 

Gross Worth Added at Market Worth (GVAMP) = Worth of Output – Intermediate Consumption

or

= Gross sales + Change in Inventory – Intermediate Consumption

Within the given query home gross sales and exports are given individually; due to this fact, we are going to add them to acquire Gross sales worth.

Therefore, Gross Worth Added at Market Worth can be,

Gross Worth Added at Market Worth (GVAMP) = (Home Gross sales + Exports + Change in Inventory) – Single Use Producer Items

= [200 + 10 + (-10)] – 120

= 200 – 120

GVAMP = ₹80 Lakhs

OR

The worth of the Nominal Gross Nationwide Product (GNP) of an economic system was ₹2,500 Crores in a specific 12 months. The worth of GNP of that nation throughout the identical 12 months, evaluated on the value of base 12 months was ₹3,000 Crores.
Calculate the worth of GNP deflator of the 12 months in proportion phrases. Has the worth stage risen between the bottom 12 months and the 12 months into consideration?

Reply: GNP might be of two varieties: Actual GNP and Nominal GNP. Actual GNP is the Gross Home Product of a rustic of a given 12 months, estimated on the premise of the worth of the products and providers of a base 12 months. Nonetheless, Nominal GNP is the Gross Home Product of a rustic of a given 12 months, estimated on the premise of the worth of the products and providers of the similar 12 months. The components for calculating Actual GNP and Nominal GNP is,

GNP~Deflator=frac{Nominal~GNP}{Real~GNP}times{100}

The Actual GNP and Nominal GNP within the given query are ₹3,000 Crores and ₹2,500 Crores respectively. Subsequently, the GNP Deflator can be,

GNP~Deflator=frac{Nominal~GNP}{Real~GNP}times{100}

GNP~Deflator=frac{2,500}{3,000}times{100}

GNP Deflator = 83.33%

Conclusion: No, the worth stage has diminished from the bottom 12 months to the 12 months into consideration by 16.67%.

16. Outline the issue of double counting within the estimation of Nationwide Revenue. Focus on two approaches to appropriate the issue of double counting. 

Reply: To calculate the Nationwide Revenue of an economic system, solely the worth of ultimate items and providers is to be thought-about. Nonetheless, together with the worth of ultimate items, the worth of intermediate items can also be included which provides rise to the issue of double counting. A scenario by which the worth of output when passing by its manufacturing phases, is counted greater than as soon as, is called Double Counting. A product passes by varied phases of manufacturing earlier than reaching the ultimate stage. When the worth of a product is calculated at every stage of manufacturing, it’s extra doubtless so as to add the price of enter greater than as soon as. This case results in double counting. 

For instance, A farmer produces wheat in his fields and sells it for ₹200 to a flour mill. The miller then converts the wheat into flour and sells is to a baker for ₹500. Finally, the baker prepares biscuits from that flour and promote them to the shoppers for ultimate consumption at a value of ₹700. 

For Farmer, wheat is the ultimate product (₹200) and he has not spent any intermediate price. Subsequently, the worth added at this stage is ₹200 (₹200-₹0). 

For the Miller, flour is the ultimate product (₹500) and he has spent ₹200 on wheat as an intermediate good . Subsequently, the worth added at this stage is ₹300 (₹500-₹200).

For the Baker, biscuit is the ultimate product (₹700) and he has spent ₹500 on flour as an intermediate good. Subsequently, the worth added at this stage is ₹200 (₹700-₹500). 

Double Counting

 

By including the worth of outputs of the farmer, miller, and baker, the Worth of Output = 200+500+700 = ₹1400.

Nonetheless, these values of output consists of the worth of an intermediate good. 

The worth of flour (₹500) consists of the worth of wheat (₹200). Equally, the worth of biscuits (₹700) consists of the worth of flour (₹500). It exhibits that the worth of wheat and flour are counted twice. As soon as as the worth of output and the opposite time as an intermediate good. This results in the issue of Double Counting. 

There are two alternates obtainable for avoiding double counting. 

1. Remaining Output Methodology: The tactic of Remaining Output says that solely the worth of the ultimate items needs to be added to the dedication of nationwide revenue. Within the above instance, utilizing the tactic of ultimate output, solely the worth of Biscuit; i.e., ₹700 at which these are offered to the ultimate shoppers can be taken throughout the calculation of nationwide revenue. 

2. Worth Added Methodology: The tactic of Worth Added says that the sum of worth added at every stage of manufacturing of the ultimate good needs to be added within the dedication of nationwide revenue. Within the above instance, the sum of worth added at every producing unit by the farmer, miller, and baker value ₹200, ₹300, and ₹200 respectively needs to be added. Subsequently, the worth to be taken for the dedication of nationwide revenue can be ₹700 (₹200+₹300+₹200).

OR

Outline the next: 

(a) Capital Items

(b) Gross Home Product

(c) Movement Variables

(d) Revenue from property and entrepreneurship

Reply:

a) Capital Items: Capital items are bodily property that a company makes use of within the means of manufacturing to fabricate services and products that customers will use later. Capital items are also called tangible items as they’re bodily in nature. It includes buildings, equipment, tools, automobiles, instruments, and so on. Capital items will not be completed items; moderately, they’re used to make completed items.

b) Gross Home Product: GDP or Gross Home Product is the whole worth of all the ultimate items and providers produced throughout the home boundaries of a rustic throughout a 12 months. Gross in GDP implies that depreciation is included within the financial worth of products and providers. Home signifies that items and providers included in GDP are produced throughout the home boundaries of the nation. Nonetheless, product implies that solely ultimate items and providers can be included. GDP is usually used as an index to measure the welfare of individuals.

c) Movement Variables: The financial variables that are measured over a time period are referred to as stream variables. For instance, nationwide revenue.

d) Revenue from Property and Entrepreneurship: Revenue from Property and Entrepreneurship or Working Surplus is one other time period utilized in issue funds. It’s the sum whole of revenue from property and revenue from entrepreneurship. Working Surplus arises in each authorities and personal enterprises, however doesn’t come up within the common authorities sector as on this sector it really works with the motive of social welfare. These elements are utilized in figuring out nationwide revenue by Revenue Methodology.

The three elements of ‘Revenue from Property and Entrepreneurship’ are as follows:

  • Lease/Royalties
  • Curiosity
  • Revenue

17. Reply the next questions primarily based on the info given beneath: 

(i) Deliberate funding = ₹200 crore

(ii) C = 50 + 0·8 Y

(a) Decide the equilibrium stage of revenue. 

(b) Calculate the saving and consumption expenditure at equilibrium stage of Revenue. 

Reply:

a) Keynesian idea says that in an economic system, the equilibrium stage of revenue is set when the mixture demand (represented by C + I curve) is the same as the mixture provide (represented by C + S curve).

Mixture Demand consists of two elements; viz., Consumption Expenditure (C) and Funding Expenditure (I). The consumption expenditure varies instantly with the revenue stage; nonetheless, the funding expenditure is assumed to be unbiased of the revenue stage.

Mixture Provide refers back to the whole output of nationwide revenue’s items and providers and is depicted by a forty five° line.

Within the given query, the deliberate funding is ₹100 Crores, and C = 50 + 0.5Y. Subsequently the equilibrium stage of revenue can be,

Y = C + I

Y = (50 + 0.8Y) + 200

Y = 250 + 0.8Y

Y – 0.8Y = 250

0.2Y= 250

At equilibrium, Y = ₹1,250 Crores

b) The saving and consumption expenditure on the equilibrium stage of Nationwide Revenue can be,

Saving Expenditure:

S=-bar{C}+(1-b)Y

S = -50 + (1-0.8)1,250

S = -50 + (0.2 x 1,250)

S = -50 + 250

S = ₹200 Crores

Consumption Expenditure:

Y = C + S

1,250 = C + 200

C = ₹1,050 Crores

Part – B

(Indian Financial Growth)

18. Central Air pollution Management Board (CPCB) has recognized ___________ classes of huge and medium industries as polluting industries (Select the proper different) 

(A) 15

(B) 17

(C) 19

(D) 13

Reply: (B) 17

19. State the which means of ‘Commune’. 

Reply: A system of collective farming by which individuals are made to domesticate the farm lands in China is called Commune. This method comes beneath Nice Proletarian Cultural Revolution.

20. The primary Industrial Coverage Decision in Impartial India was launched within the 12 months ___________ . (Select the proper different) 

(A) 1948

(B) 1950

(C) 1954

(D) 1956

Reply: (A) 1948

21. Fixing of most land holding (possession) for a person is called ___________ . (Fill within the clean with appropriate reply) 

Reply: Land Ceiling

22. _________ and _________ foreign money notes of outdated Mahatma Gandhi sequence have been banned as authorized tender cash on eighth November, 2016 (Select the proper different) 

(A) ₹50 and ₹100

(B) ₹500 and ₹1000

(C) ₹500 and ₹2000

(D) ₹500 and ₹200

Reply: (B) ₹500 and ₹1000

23. State the which means of ‘Self-Assist Teams’.

Reply: Self Assist Group is a bunch of people or small entrepreneurs who come collectively for a short while interval and create a typical fund for his or her enterprise necessities. The main target of self-help group is basically on these rural poor folks (like small and marinal farmers, artisans, agricultural and non-agricultural labourers, and so on.) who wouldn’t have sustainable entry to the formal banking system. 

24. __________ is among the taxes eradicated after implementation of Items and Companies Tax (GST). (Fill within the clean with appropriate reply)

Reply: Worth Added Tax (VAT)

25. Outline ‘Human Capital Formation’. 

Reply: The method of including the inventory of expert and succesful folks within the nation over a time interval is called Human Capital Formation. Merely put, human capital formation means the event of skills and expertise amongst a rustic’s inhabitants. This course of is related to an funding in human beings and their improvement as productive and inventive assets. The foremost sources of Human Capital Formation are Expenditure on Training, Expenditure on Well being, Expenditure on Migration, On-the-Job-Coaching, and Expenditure on Data.

OR

Determine the proper sequence of options given in Column II by matching them with their respective years in Column I :

 

Select the proper different from the next:

(A) a-(iv), b-(i), c-(ii), d-(iii)

(B) a-(iv), b-(ii), c-(i), d-(iii)

(C) a-(iv), b-(iii), c-(i), d-(ii)

(D) a-(iv), b-(ii), c-(iii), d-(i)

Reply: (C) a-(iv), b-(iii), c-(i), d-(ii)

Jan Dhan Yojana: 2014
Job Drive on projections of the Minimal Wants and Efficient Consumption Demand: 1979
Mahatama Gandhi Nationwide Rural Employment Assure Act: 2005
Research Grup shaped by the Planning Fee for Poverty: 1962

26. ‘‘Google in India has employed 4000 graduate college students.’’

The given assertion offers with formal sector/casual sector employment. (Decide the proper kind of employment). 

Reply: Formal Sector

27. Organize the next occasions in chronological order and select the proper different : 

(i) Institution of Individuals’s Republic of China

(ii) Creation of Pakistan

(iii) First 5-Yr Plan of India

(iv) First 5-Yr Plan of China

Options :

(A) (i), (iv), (ii), (iii)

(B) (iii), (ii), (i), (iv)

(C) (ii), (i), (iii), (iv)

(D) (iv), (iii), (ii), (i)

Reply: (C) (ii), (i), (iii), (iv)

1949 – Institution of Individuals’s Republic of China
1947- Creation of Pakistan
1951 – First 5-Yr Plan of India
1953 – First 5-Yr Plan of China

28. ‘‘It’s essential to create employment within the formal sector moderately than within the casual sector.’’ Defend or refute the given assertion with legitimate arguments. 

Reply: Employment is an exercise that permits a person to earn technique of residing.

The Formal/Organised Sector consists of all the private and non-private sector enterprises that make use of 10 or extra employed employees. Whereas, Casual/Unorganised Sector consists of all of the non-public enterprises that rent lower than 10 staff.

The given assertion, ‘‘It’s essential to create employment within the formal sector moderately than within the casual sector.’’ is true and might be defended with the assistance of the next factors:

  • The formal sector of employment gives better job safety as in comparison with the casual sector of employment.
  • Individuals get higher social safety advantages beneath the formal sector of employment as in comparison with the casual sector of employment.

OR

State and talk about any two challenges within the Energy sector of India. 

Reply: Electrical energy or Energy is a important part of infrastructure and is usually recognized with the progress in fashionable civilization. Over the past 4 many years of planning, Energy improvement in India has been vital; nonetheless, energy era continues to be inadequate as in comparison with the required energy. Due to this, in recent times, India is going through a severe energy disaster. Among the issues confronted by the facility sector in India are as follows:

  1. Insufficient Electrical energy Technology: The put in capability of India to generate electrical energy will not be sufficient to feed an annual financial progress of 7-8%. It’s only ready so as to add 20,000 MW per 12 months and to satisfy the rising necessities of energy, the business power provide must develop at about 7%. 
  2. Scarcity of Inputs: The inspiration of India’s energy sector; i.e., the Thermal Energy Crops is going through a scarcity of uncooked supplies and coal provides.
  3. Restricted Position of Personal and International Entrepreneurs: The position of personal sector energy turbines and international buyers is restricted. They’re but to play a significant position in Energy Infrastructure. 

29. ‘‘Speedy enhance in financial progress absolutely trickles all the way down to the folks beneath the completely poor class.’’ Defend or refute the given assertion with legitimate arguments. 

Reply: A poor individual is a person who lives a troublesome life as he’s not capable of afford the requirements of life, which morally degrade him. He’s incapable of performing like a human being. He feels demoralized by how society treats him. 

The given assertion, ‘‘Speedy enhance in financial progress absolutely trickles all the way down to the folks beneath the completely poor class.’’ is refuted due to the next causes:

  • The expansion in inhabitants has resulted in very low progress within the per capita revenue of the nation.
  • Additionally, the inexperienced revolution has elevated the regional disparity and the hole between poor and wealthy farmers.
  • Finally, the wealthy have grabbed the advantages of financial progress.

30. ‘‘Agriculture sector seems to be adversely affected by the financial reform course of.’’ Clarify the given assertion. 

Reply: The financial situation of India in 1991 was pathetic. The federal government was unable to generate revenues from the sources like taxation. The revenue from public enterprises was additionally low. Nonetheless, the federal government has to spend extra on varied points like unemployment, overpopulation, and poverty, which will increase the necessity to introduce financial reforms in India. Financial Reforms are the set of financial insurance policies that goals to speed up the tempo of progress and improvement within the economic system.  

The Financial Reform course of has adversely affected the agriculture sector within the following methods:

  1. Discount of Public Funding: There was a decline in public funding within the agriculture sector involving irrigation, energy, market ties, roads, analysis, and development.
  2. Liberalisation and Discount in Import Duties: There have been a number of coverage modifications influencing this sector, which embody (a) decreasing of import taxes on agricultural items (b) Elimination of minimal and honest help costs (c) eradicating quantitative constraints on agricultural merchandise. Because of rising worldwide competitors, all of those insurance policies had a adverse impression on Indian farmers.
  3. Removing of Subsidy: Lifting of fertilizer subsidies elevated manufacturing prices, which adversely impacted the small and marginal farmers.
  4. Shift in direction of Money Crops: Agricultural manufacturing has switched from meals crops to export crops because of export-oriented coverage measures.

OR

India is usually referred to as the ‘Outsourcing Vacation spot’ of the world. Focus on the prime causes for this title given to India. 

Reply: Outsourcing means contracting out non-core and common actions by which an organization lacks competence to different companies to be able to profit from their expertise, information, and effectivity. It’s a enterprise apply, referred to as contracting out or enterprise course of outsourcing by which one firm hires one other firm or a person, comparable to a service supplier or vendor, or a 3rd celebration to carry out duties, deal with operations, or present providers which can be usually or beforehand carried out by the corporate’s personal staff. 

India is usually referred to as the outsourcing vacation spot of the world due to the next causes:

  1. Straightforward availability of low cost labour: The wage price of labour in India is decrease as in comparison with the speed in different developed nations, due to which varied MNCs outsource their enterprise in India.
  2. Availability of expert manpower: The proportion of expert manpower is extra in India which will increase the religion of MNCs in outsourcing their enterprise actions.
  3. Beneficial Authorities insurance policies: The MNCs additionally get several types of profitable provides from the Indian Authorities like tax concessions, tax holidays, and so on., which inspires them in working with the Indian workforce.
  4. Worldwide worthiness: Worldwide worthiness and credibility of India are good, which makes it an appropriate vacation spot for outsourcing enterprise actions.

31. ‘‘India, China and Pakistan have travelled greater than seven many years of developmental path with different outcomes.’’ Clarify the given assertion with legitimate arguments. 

Reply: The event methods of India, China, and Pakistan are very related. All three nations began their developmental actions on the similar time. The folks of India and Pakistan acquired independence in 1947, whereas the Individuals’s Republic of China was established in 1949. India introduced its first Fiver-Yr Plan in 1951, Pakistan in 1956, and China in 1953. 

Although these nations began their developmental actions collectively, they achieved totally different outcomes. Therefore, the given assertion, ‘‘India, China, and Pakistan have travelled greater than seven many years of the developmental path with different outcomes.’’ is true, and this may be confirmed with the next factors:

Until the late Seventies India, China, and Pakistan have been capable of preserve the identical stage of low improvement. However, during the last three many years, these nations have taken totally different improvement ranges:

  1. India’s efficiency has been reasonable over time. A significant portion of India nonetheless is determined by agriculture. There was an absence of infrastructure. In addition to, greater than one-fourth of India’s inhabitants lives beneath the poverty line.
  2. Pakistan’s efficiency was low as a result of there was political instability, overdependence on remittances, and international assist there. In addition to, the efficiency in agriculture in Pakistan was additionally unstable.
  3. China has raised the speed of progress within the economic system with the assistance of the market system and by placing stress on the Alleviation of Poverty.

32. Focus on briefly the rationale behind implementation of land reforms within the post-independence period.

Reply: Land Reforms seek advice from the change within the possession, tenancy, and administration of landholdings.  It refers back to the progress within the agro-economic organisation. Land Reforms embody measures and insurance policies regarding the redistribution of land, regulation of lease, bettering the situations of tenancy, agricultural training, and so on. 

The rationale behind the implementation of land reforms within the post-independence period was to abolish intermediaries and land ceiling.

  1. Abolition of Intermediaries: For abolishment of intermediaries and making tillers, the house owners of land, the Indian Authorities took quite a few steps. The concept behind Land to the Tiller was to make sure that the possession of land would give incentives to the precise tillers for making enhancements within the land and rising output. To make enhancements on the land, the tenants wouldn’t have any incentives because the proprietor of the land will get extra profit from the output. As soon as the tillers get possession of the land, they may have the ability to make a revenue from the elevated output. With this measure, 200 lakh tenants acquired in direct contact with the federal government.
  2. Land Ceiling: Land Ceiling means fixing the utmost restrict of land held by a person or a household. If a person or a household owns land above the desired restrict, will probably be taken away from them by the federal government and could be alloted to small farmers and landless cultivators. The essential goal behind the land ceiling was the discount of the focus of land possession in just a few arms. This measure helped in selling fairness within the agricultural sector.

33. (a) ‘‘Ujjwala Yojana has been a sport changer for rural India.’’ State any three typical fuels being focused beneath the LPG cylinder distribution scheme (Ujjwala Yojana). 

(b) ‘‘The Indian Well being System wants a stronger dose of public expenditure to treatment itself.’’ Justify the given assertion with legitimate 
arguments. 

Reply: 

a) Pradhan Mantri Ujjwala Yojana (PMUY) is a scheme that goals at safeguarding the well being of ladies and youngsters by offering them with clear cooking gasoline (LPG) in order that their well being doesn’t get compromised in smoky kitchens or they don’t need to wander in unsafe areas for amassing firewood. As typical sources of power trigger air pollution within the setting, by offering free LPG fuel cylinders to rural households, the Ujjwala Yojana scheme has change into a sport changer for rural India. The three typical fuels being focused beneath this scheme are Firewood, Coal, and Agricultural Waste and Dried Dung.

b) The State of the Indian Well being System is constantly bettering since independence however the enchancment is unreasonably gradual. It has been a sufferer of a comparatively low public expenditure. As in comparison with different growing nations, the well being expenditure of India as a proportion of GDP could be very low (round 4.7% of the whole GDP within the 12 months 2014-15). Subsequently, it’s important for the Indian Well being System to get a stronger dose of public expenditure to treatment itself.

OR

(a) Why are much less ladies present in common salaried employment? 

(b) Analyse the latest developments in sectoral distribution of workforce in India: 

Trends in Employment Pattern

 

Reply:

a) Common Salaried Workers are the employees who’re engaged by somebody or by a enterprise enterprise and are paid wages regularly. For instance, academics, staff at a agency, professors, and so on. These employees are employed on a everlasting foundation and get varied social advantages like provident fund, pension, medical insurance, and so on. India’s workforce consists of simply 22.8% common salaried staff amongst which ladies employees are very low. 

As varied expertise and excessive literacy stage are required in common salaried jobs, lesser ladies are discovered right here. In addition to, the dearth of mobility amongst ladies in India due to social constraints can also be a motive behind much less ladies in common salaried jobs.

b) With the given details about the developments in employment patterns, it may be concluded that the proportion of the workforce in India within the main sector is quickly lowering from 64% to 60%, and finally to 48.9%. Nonetheless, the employment share of each secondary and repair sectors has elevated by roughly 9% (within the final 11 years) and seven% (within the final 17 years), respectively. 

34. (a) State the which means of the time period ‘transient poor’.

(b) Critically study the position of ‘Rural Banking’ sector in India. 

Reply:

a) Poverty is a specific problem that impacts many nations world wide. There cannot be a universally acknowledged definition of poverty. Broadly it may be stated that Poverty refers to a state by which a person is unable to satisfy even the essential requirements of life. The minimal necessities embody meals, clothes, shelter, training, and well being amenities. Poverty might be categorised in 3 ways; viz., Continual Poor, Transient Poor, and Non-Poor.

Transient Poor consists of two sorts of individuals, Churning Poor and Often Poor. Churning Poor are the poor who usually transfer out and in of the property. For instance, seasonal employees and small farmers. Nonetheless, Often Poor are the poor who more often than not wealthy. In easy phrases, sometimes poor folks usually have revenue greater than the poverty line. However typically due to a foul part of their life, they could stay beneath the poverty line. For instance, throughout COVID lockdown many individuals misplaced their jobs and plenty of of them needed to shut down their enterprise making them sometimes poor.

b) Rural Growth is a steady and complete socio-economic course of that makes an attempt to enhance all features of rural life.

The banking system has quickly expanded in a manner that it had a optimistic impact on a rural farm and non-farm output, revenue and employment. After the inexperienced revolution, with the assistance of credit score amenities supplied to the farmers, they will simply avail of a wide range of loans to satisfy their manufacturing wants. In addition to, the potential for a buffer inventory of grains, famines have now change into an occasion of the previous. 

Nonetheless, despite some great benefits of the agricultural banking system, there are numerous issues confronted by the nation’s agricultural credit score construction in rural banking. A few of these issues are as follows:

  1. Insufficiency: The demand for rural credit score within the nation continues to be greater than its availability.
  2. Insufficient Protection of Institutional Sources: The institutional credit score preparations of the nation have didn’t cowl its full proportion of rural farmers.
  3. Insufficient Quantity of Sanction: The mortgage quantity sanctioned to the agricultural farmers can also be insufficient due to this, the farmers typically divert their mortgage cash for unproductive functions finally diluting the essential goal of those loans.

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