SET-3

H$moS> Z.

Series SSO/2

Code No.

amob Z.

58/2/3

narjmWu H$moS >H$mo Cma-nwpVH$m Ho$ _wI-n

>na Ad` {bIo &

Roll No.

Candidates must write the Code on the

title page of the answer-book.

H$n`m OmM H$a b| {H$ Bg Z-n _o _w{V n> 12 h &

Z-n _| Xm{hZo hmW H$s Amoa {XE JE H$moS >Z~a H$mo N>m Cma-nwpVH$m Ho$ _wI-n> na
{bI| &
H$n`m OmM H$a b| {H$ Bg Z-n _| >29 Z h &
H$n`m Z H$m Cma {bIZm ew$ H$aZo go nhbo, Z H$m H$_mH$ Ad` {bI| &
Bg Z-n H$mo nT>Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h & Z-n H$m {dVaU nydm
_| 10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>m Ho$db Z-n H$mo nT>|Jo
Ama Bg Ad{Y Ho$ XmamZ do Cma-nwpVH$m na H$moB Cma Zht {bI|Jo &
Please check that this question paper contains 12 printed pages.
Code number given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
Please check that this question paper contains 29 questions.
Please write down the Serial Number of the question before
attempting it.
15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the
students will read the question paper only and will not write any answer on
the answer-book during this period.

AWem
ECONOMICS

{ZYm[aV g_` : 3 KQ>o

A{YH$V_ AH$ : 100

Time allowed : 3 hours

58/2/3

Maximum Marks : 100

1

P.T.O.

gm_m` {ZX}e :
(i)
XmoZm| IS>m| Ho$ g^r Z A{Zdm` h &
(ii)
`oH$ Z Ho$ {ZYm[aV AH$ CgHo$ gm_Zo {XE JE h &
(iii) Z g`m 1 3 VWm 15 19 A{V bKymam_H$ Z h, {OZ_| `oH$ H$m 1 AH$ h &
BZH$m `oH$ H$m Cma EH$ dm` _| hr Ano{jV h &
(iv) Z g`m 4 8 Ama 20 22 bKymam_H$ Z h, {OZ_| `oH$ Ho$ 3 AH$ h &
`oH$ H$m Cma gm_m`V 60 eXm| go A{YH$ Zht hmoZm Mm{hE &
(v)
Z g`m 9 10 Ama 23 25 ^r bKymam_H$ Z h, {OZ_| `oH$ Ho$ 4 AH$ h &
`oH$ H$m Cma gm_m`V 70 eXm| go A{YH$ Zht hmoZm Mm{hE &
(vi) Z g`m 11 14 Ama 26 29 XrK Cmam_H$ Z h, {OZ_| `oH$ Ho$ 6 AH$
h & `oH$ H$m Cma gm_m`V 100 eXm| go A{YH$ Zht hmoZm Mm{hE &
(vii) Cma g{jV VWm V`m_H$ hmoZo Mm{hE VWm `Wmg^d D$na Xr JB eX gr_m Ho$ AVJV
hr {XE OmZo Mm{hE &
General Instructions :
(i)

All questions in both the sections are compulsory.

(ii)

Marks for questions are indicated against each question.

(iii)

Questions No. 1 3 and 15 19 are very short-answer questions carrying

1 mark each. They are required to be answered in one sentence each.

(iv)

Questions No. 4 8 and 20 22 are short-answer questions carrying

3 marks each. Answers to them should normally not exceed 60 words
each.

(v)

Questions No. 9 10 and 23 25 are also short-answer questions

carrying 4 marks each. Answers to them should normally not exceed
70 words each.

(vi)

Questions No. 11 14 and 26 29 are long-answer questions

carrying 6 marks each. Answers to them should normally not exceed
100 words each.

(vii)

Answers should be brief and to the point and the above word limits
should be adhered to as far as possible.

58/2/3

IS> A
SECTION A
1.

`{X dVw Y H$s H$s_V _| d{ go dVw

g~Y h : (ghr {dH$n Mw{ZE)
(A) {VWmnr
(~) nyaH$
(g) g~pYV Zht
(X) EH$ gmW _mJ H$s OmZo dmbr

X H$s

_mJ ~T>Vr h, Vmo XmoZm| dVwAm| Ho$ ~rM `h

1

If with the rise in price of good Y, demand for good X rises, the two goods
are : (Choose the correct alternative)

2.

(a)

Substitutes

(b)

Complements

(c)

Not related

(d)

Jointly demanded

EH$ Cn^mo$m Ho$db Xmo dVwAm| H$m Cn^moJ H$aVm h & `{X XmoZm| _| EH$ dVw H$s H$s_V
{JaVr h, Vmo AZ{Y_mZ dH$ : (ghr {dH$n Mw{ZE)
(A) D$na H$s Amoa {IgH$Vm h
(~) ZrMo H$s Amoa {IgH$Vm h
(g) D$na Ama ZrMo XmoZm| Amoa {IgH$ gH$Vm h
(X) Zht {IgH$Vm h

A consumer consumes only two goods. If price of one of the goods falls,
the indifference curve : (Choose the correct alternative)

3.

(a)

Shifts upwards

(b)

Shifts downwards

(c)

Can shift both upwards or downwards

(d)

Does not shift

H$_gyMH$ Cn`mo{JVm go `m A{^m` h

What is ordinal utility ?

58/2/3

P.T.O.

4.

gd {ejm A{^`mZ H$m ^maVr` AW`dWm Ho$ CnmXZ g^mdZm dH$ na `m ^md
nS>oJm Ama `m| ?
AWdm
^maV _| ~S>o Va na {dXoer nyOr Ho$ AmZo go CnmXZ g^mdZm dH$ na `m ^md nS>Zo H$s
g^mdZm h Ama `m| ?

What will be the impact of Education for All campaign (Sarv Shiksha
Abhiyan) on the Production Possibilities Curve of the Indian economy
and why ?
OR
What will likely be the impact of large scale inflow of foreign capital in
India on Production Possibilities Curve and why ?
5.

EH$ Anm{YH$ma ~mOma _| \$_m] H$s g`m gr{_V hmoZo H$m H$maU g_PmBE &

Explain the cause of limited number of firms in an oligopoly market.

6.

A{YH$V_ H$s_V {ZYmaU go `m A{^m` h ? gm_m`V Bgo {H$g H$ma H$s dVwAm| na
bJm`m OmVm h ? aoIm{M H$m Cn`moJ H$s{OE &

What is maximum price ceiling ? On what type of goods is it normally

imposed ? Use diagram.

ZmoQ> :
Note :

{ZZ{b{IV Z Ho$db {>hrZ narjm{W`m| Ho$ {bE Z g`m 6 Ho$ WmZ na h &
The following question is for the Blind Candidates only in lieu of
Q. No. 6.

A{YH$V_ H$s_V {ZYmaU Ama `yZV_ H$s_V {ZYmaU Ho$ ~rM AVa g_PmBE &

Explain the difference between maximum price ceiling and minimum

price ceiling.
7.

ny{V H$s H$s_V bmoM Ho$ _mn Ho$ gmW OwS>o YZ-{M (plus sign) H$s VwbZm _o _mJ H$s
H$s_V bmoM Ho$ _mn Ho$ gmW G U-{M (minus sign) `m| OwS>m hmoVm h ? g_PmBE &
Why is minus sign attached to the measure of price elasticity of demand
of a normal good in comparison to the plus sign attached to the measure
of price elasticity of supply ? Explain.

58/2/3

8.

H$maU ~VmVo hE, {ZZ{b{IV Vm{bH$m na AmYm[aV CnmXZ g^mdZm dH$ Ho$ AmH$ma na
{Q>nUr H$s{OE :
dVw

X (BH$mB)

dVw

Y (BH$mB)

10

Giving reason, comment on the shape of Production Possibilities Curve

based on the following table :

9.

Good X (units)

Good Y (units)

10

EH$ Cn^mo$m EH$ dVw na, {OgH$s H$s_V < 1 {V BH$mB h, < 60 `` H$aVm h & O~
H$s_V 100 {VeV ~T> OmVr h, dh V~ ^r < 60 hr `` H$aVm h & {VeV {d{Y mam
_mJ H$s H$s_V bmoM H$m n[aH$bZ H$s{OE &

A consumer spends < 60 on a good priced at < 1 per unit. When the price
rises by 100 percent, he continues to spend < 60 on the good. Calculate
the price elasticity of demand by percentage method.
10.

Amny{V go `m A{^m` h
^md g_PmBE &

VH$ZrH$s J{V H$m EH$ dVw H$s Amny{V na nS>Zo dmbm

AWdm
ny{V _| n[adVZ go `m A{^m` h ? EH$ dVw na H$a bJmZo H$m CgH$s ny{V na nS>Zo
dmbm ^md g_PmBE &
58/2/3

P.T.O.

What is supply ? Explain the effect of technological progress on supply of

a good.
OR
What is change in supply ? Explain the effect of tax imposed on a good
on the supply of the good.
11.

n[adVu AZwnmVm| Ho$ {Z`_ Ho$ Hw$b CnmXZ Ho$ gX^ _| {d{^ MaU ~VmBE & `oH$ MaU
Ho$ nrN>o H$maU ^r Xr{OE & aoIm{M H$m `moJ H$s{OE &

What are the different phases in the Law of Variable Proportions in

terms of Total Product ? Give reasons behind each phase. Use diagram.

ZmoQ> :
Note :

{ZZ{b{IV Z Ho$db {>hrZ narjm{W`m| Ho$ {bE Z g`m 11 Ho$ WmZ na h &
The following question is for the Blind Candidates only in lieu of
Q. No. 11.

EH$ g`m_H$ CXmhaU H$s ghm`Vm go n[adVu AZwnmVm| Ho$ {Z`_ Ho$ Hw$b CnmXZ Ho$
gX^ _| {d{^ MaU ~VmBE & `oH$ MaU Ho$ nrN>o H$maU ^r Xr{OE &

State, on the basis of numerical example, the different phases in the

Law of Variable Proportions in terms of Total Product. Give reasons
behind each phase.
12.

EH$ dVw H$m ~mOma gVwbZ _| h & dVw H$s _mJ _| d{ hmo OmVr h & Bg n[adVZ Ho$
H$maU hmoZo dmbo ^mdm| H$s mIbm g_PmBE &

Market for a good is in equilibrium. There is increase in demand for the

good. Explain the chain of effects of this change.
13.

58/2/3

EH$ Cn^mo$m Ho$db Xmo dVwAm| H$m Cn^moJ H$aVm h, `oH$ H$s H$s_V EH$ n`m {V
BH$mB h & `{X Cn^mo$m XmoZm| dVwAm| H$m Eogm g`moJ MwZVm h {OgH$s gr_mV {VWmnZ
Xa 2 h, Vmo `m Cn^mo$m gVwbZ _| h ? H$maU Xr{OE & g_PmBE Eogr pW{V _| EH$
{ddoH$s Cn^mo$m `m H$aoJm &
AWdm
EH$ Cn^mo$m Ho$db Xmo dVwAm| X Ama Y H$m Cn^moJ H$aVm h, {OZH$s H$s_V| H$_e:
< 2 Ama < 1 {V BH$mB h & `{X Cn^mo$m XmoZm| dVwAm| H$m Eogm g`moJ MwZVm h {Og_|
X H$s gr_mV Cn`mo{JVm 4 Ama Y H$s ^r 4 h, Vmo `m Cn^mo$m gVwbZ _| h ? H$maU
Xr{OE & g_PmBE Eogr pW{V _o EH$ {ddoH$s Cn^mo$m `m H$aoJm & gr_mV Cn`mo{JVm
{dbofU H$m Cn`moJ H$s{OE &
6

A consumer consumes only two goods, each priced at Rupee one per unit.
If the consumer chooses a combination of the two goods with Marginal
Rate of Substitution equal to 2, is the consumer in equilibrium ? Give
reasons. Explain what will a rational consumer do in this situation.
OR
A consumer consumes only two goods X and Y whose prices are < 2 and
< 1 per unit respectively. If the consumer chooses a combination of the
two goods with marginal utility of X being 4 and that of Y also being 4, is
the consumer in equilibrium ? Give reasons. Explain what will a rational
consumer do in this situation. Use Marginal Utility Analysis.
14.

EH$ CnmXH$ H$s gVwbZ H$s eVm] Ho$ nrN>o VH$mYma g_PmBE &
Explain the rationale behind the conditions of equilibrium of a producer.

IS> ~
SECTION B
15.

A` ~mV| nyddV ahZo na O~ {dXoer _wm gVr hmoVr h, Vmo am>r` Am` na `h ^md
nS>Zo H$s g^mdZm h : (ghr {dH$n Mw{ZE)

(A) gH$mam_H$
(~)

ZH$mam_H$

(g)

gH$mam_H$ d ZH$mam_H$ XmoZm|

(X)

H$moB ^md Zht

Other things remaining the same, when foreign currency becomes

cheaper, the effect on national income is likely to be : (Choose the correct
alternative)

58/2/3

(a)

Positive

(b)

Negative

(c)

Positive and negative both

(d)

No effect
7

P.T.O.

16.

gaH$mar ~OQ> _| mW{_H$ KmQ>m BgHo$ ~am~a h : (ghr {dH$n Mw{ZE)

(A) `mO ^wJVmZ

(~)

`mO ^wJVmZ CYma

(g)

CYma `mO ^wJVmZ

(X)

Cn`w$ _| go H$moB Zht

Primary deficit in a government budget equals : (Choose the correct

alternative)

17.

(a)

Interest payments

(b)

Interest payments less borrowings

(c)

Borrowings less interest payments

(d)

None of the above

BZ_| go H$mZ-gm amOd `` h

(A) eo`a IarXZm

(~)

CYma XoZm

(g)

Am{WH$ ghm`Vm

(X)

^y{_ A{YJhU na ``

Which one of these is a revenue expenditure ?

18.

(a)

Purchase of shares

(b)

Loans advanced

(c)

Subsidies

(d)

Expenditure on acquisition of land

g_J _mJ Ho$ H$moB Xmo KQ>H$ ~VmBE &

Name any two components of aggregate demand.

58/2/3

19.

`{X gr_mV Cn^moJ d{m

(A) 0
(~) 1
(g) 0 Ama 1 Ho$ ~rM
(X) AZV

= 0, JwUH$

H$m _y` `h hmoJm : (ghr {dH$n Mw{ZE)

If MPC = 0, the value of multiplier is : (Choose the correct alternative)

20.

(a)

(b)

(c)

Between 0 and 1

(d)

Infinity

^wJVmZ gVwbZ boIm _| dm`m (dV) boZXoZ Ama g_m`moOZ hoVw boZXoZ Ho$ AW
~VmBE &
AWdm
^wJVmZ gVwbZ boIm _| `mnma gVwbZ Ama Mmby ImVm gVwbZ Ho$ AW ~VmBE &

Give the meanings of autonomous transactions and accommodating

transactions in the Balance of Payments Accounts.
OR
Give the meanings of Balance of Trade and Balance on Current Account
of Balance of Payments Accounts.
21.

H$maU ~VmVo hE g_PmBE {H$ ^wJVmZ gVwbZ boIm _| {dXoem| H$mo {X`m J`m XmZ H$hm XO
{H$`m OmVm h &

Giving reasons explain where charity to foreign countries is recorded in

the Balance of Payments Accounts.
22.

`{X dmV{dH$ gH$b Xoer` CnmX < 250 hmo Ama H$s_V gyMH$mH$ (AmYma
120 hmo, Vmo _m{H$ gH$b Xoer` CnmX H$m n[aH$bZ H$s{OE &

= 100)
3

If the Real Gross Domestic Product is < 250 and the Price Index
(base = 100) is 120, calculate the Nominal Gross Domestic Product.
58/2/3

P.T.O.

23.

h_ Eogm `m| H$hVo h {H$ dm{U` ~H$ _wm H$m gOZ H$aVo h O~{H$ h_ `h ^r H$hVo h
{H$ H$a|gr Omar H$aZo H$m EH$_m A{YH$ma Ho$r` ~H$ H$mo h ? g_PmBE & dm{U` ~H$m|
mam _wm gOZ H$m am>r` Am` na `m ^md nS>Zo H$s g^mdZm h ?

Why do we say that commercial banks create money while we also say
that the central bank has the sole right to issue currency ? Explain.
What is the likely impact of money creation by the commercial banks on
national income ?

24.

EH$ AW`dWm gVwbZ _| h & {ZZ{b{IV go dm`m Cn^moJ H$m n[aH$bZ H$s{OE

amQ>r` Am` = 1,250

gr_mV ~MV d{m

= 0.2

{Zdoe `` = 150
An economy is in equilibrium. Calculate Autonomous Consumption from
the following :
National Income = 1,250
Marginal Propensity to Save = 0.2
Investment Expenditure = 150

25.

Ho$r` ~H$ H$m gaH$ma H$m ~H$ H$m` g_PmBE &

AWdm
Ho$r` ~H$ H$m ~H$m| H$m ~H$ H$m` g_PmBE &
Explain Governments Bank function of the central bank.
OR
Explain Bankers Bank function of the central bank.

58/2/3

10

26.

\$s{VH$mar AVa go `m A{^m` h ? Ama{jV ZH$Xr {Z{Y AZwnmV H$s Bg AVa H$mo Xa
H$aZo _| ^y{_H$m g_PmBE &
AWdm
A^mdr _mJ go `m A{^m` h ? Bg AVa H$mo Xa H$aZo _| _m{OZ g~Yr AnojmAm|
H$s ^y{_H$m g_PmBE &

What is inflationary gap ? Explain the role of Cash Reserve Ratio in

removing this gap.
OR
What is deficient demand ? Explain the role of Margin Requirements
in removing this gap.

27.

\$s{VH$mar Ama An\$s{VH$mar d{m`m| go bS>Zo _| gaH$mar ~OQ> H$s ^y{_H$m g_PmBE &

Explain the role of government budget in fighting inflationary and

deflationary tendencies.

28.

H$maU ~VmVo hE g_PmBE {H$ am>r` Am` H$m AZw_mZ bJmVo g_` {ZZ{b{IV Ho$ gmW
`m `dhma {H$`m OmZm Mm{hE :
(i)

EH$ \$_ mam {ZJ_ H$a H$m ^wJVmZ

(ii)

EH$ H$maImZo mam d` Cn`moJ Ho$ {bE _erZ IarXZm

(iii)

EH$ {M{H$gmb` mam Zgm] Ho$ {bE `yZr\$m_ IarXZm

Giving reasons explain how should the following be treated in

estimation of national income :

58/2/3

(i)

Payment of corporate tax by a firm

(ii)

Purchase of machinery by a factory for own use

(iii)

Purchase of uniforms for nurses by a hospital

11

P.T.O.

29.

~mOma H$s_V na {Zdb am>r` CnmX Ama gH$b am>r` `mo` Am` n[aH${bV H$s{OE

(< H$amoS>)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)

{dXoem| H$mo {Zdb H$maH$ Am`

{dXoem| H$mo {Zdb Mmby hVmVaU
AMb nyOr H$m Cn^moJ
H$_Mm[a`m| H$m nm[al{_H$
{ZJ_ H$a
A{dV[aV bm^
`mO
{H$am`m
bm^me
{Zdb A`j H$a
H$_Mm[a`m| mam gm_m{OH$ gwajm AeXmZ

() 10
5
40
700
30
10
90
100
20
110
11

Calculate Net National Product at Market Price and Gross National

Disposable Income :
(< crores)
(i)

Net factor income to abroad

() 10

(ii)

Net current transfers to abroad

(iii)

Consumption of fixed capital

40

(iv)

Compensation of employees

700

(v)

Corporate tax

30

(vi)

Undistributed profits

10

(vii)

Interest

90

(viii) Rent

58/2/3

100

(ix)

Dividends

20

(x)

Net indirect tax

(xi)

Social security contributions by employees

110

12

11