Class 12 Economics Solved Query Paper 2020 (Set 58/1/3)

Economics (Code No. 58/1/3) 

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 mustn’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 mustn’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 mustn’t usually exceed  100 – 150 phrases every.  

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

(vii) There isn’t a general alternative. Nonetheless, an inside 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 selections 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. Income Deficit may be estimated utilizing the formulation ________. (Fill within the clean with the proper formulation) 

Reply: Income Deficit = Income Expenditure – Income Receipts

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

‘‘As per Keynesian principle in an financial system, full employment can by no means exist.’’ 

Reply: False

3. In response to the idea of Keynesian Economics, the worth of Common Propensity to Eat can by no means be ________. (Select the proper different)

(A) zero 

(B) unity (1)

(C) a couple of

(D) lower than one 

Reply: (A) Zero

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

‘‘Anticipated obsolescence is included in depreciation.’’ 

Reply: True

5. Efficient demand is outlined as ________. (Fill within the clean with an appropriate definition) 

Reply: Efficient Demand is that degree of output the place the Mixture Demand of the commodities is the same as the Mixture Provide.

6. In an effort to management the cash provide within the financial system, the Central Financial institution might ________. (Select the proper different) 

(A) purchase securities within the open market 

(B) promote securities within the open market 

(C) scale back money reserve ratio

(D) scale back repo price 

Reply: (C) scale back money reserve ratio

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

‘‘Authorities Funds is a crucial financial coverage instrument.’’ 

Reply: False, Authorities Funds is an annual assertion that reveals item-wise estimates of the receipts and expenditures throughout a fiscal yr. 

OR

Disinvestment is a ________ (capital/income) receipt of the federal government. (Select the proper different) 

Reply: Capital

8. Two elements of cash provide are ________ and ________. (Fill within the blanks with appropriate solutions) 

Reply: 

1. Demand deposits with the banks reminiscent of financial savings and present account.
2. Time deposit with the financial institution reminiscent of Fastened deposit and recurring deposit.

9. State the that means of ‘Present Account Deficit’. 

Reply: A state of affairs during which the overall worth of exports of products and companies is lower than the overall worth of imports of products and companies is called a Present Account Deficit.

10. ________ is without doubt one of the most necessary sources of demand for overseas forex. (Fill within the clean with the proper reply)

Reply: Import of products and companies

11. ‘‘Ex-Ante Mixture Demand and Ex-Ante Mixture Provide are at all times equal.’’ Defend or refute the given assertion with legitimate causes.

Reply: Mixture Demand is the overall worth of ultimate items and companies that each one the sectors of an financial system are planning to purchase at a given degree of revenue throughout one accounting yr. Ex-ante combination demand for ultimate items is the sum complete of the ex-ante consumption expenditure and ex-ante funding expenditure on such items; i.e., AD = C + I. 

The given assertion is refuted as a result of Ex-ante Mixture Demand shall be equal to the Ex-ante Mixture Provide in a single case solely; i.e., when the financial system is in equilibrium. Within the case of an under-employment equilibrium degree, when the Ex-ante Mixture Demand falls in need of Ex-Ante Mixture Provide it leads to unplanned inventories. In that state of affairs, the producer reduces employment leading to decreased output and revenue till the 2 forces; i.e., Ex-ante Mixture Demand and Ex-ante Mixture Provide develop into equal and vice-versa.  

12. ‘‘Ultimate items embrace solely these items that are consumed by the households.’’ Defend or refute the given assertion with legitimate purpose. 

Reply: Ultimate items are these items that don’t require additional processing and are prepared to make use of. These items are additionally known as client items and are manufactured for the aim of direct use by the top client. In a nutshell, ultimate items are merchandise which can be manufactured by an organization for consumption by the buyer within the coming time. These items goal to fulfill the wants or needs of a client.

The given assertion is refuted as a result of ultimate items consist of products which can be bought by the native households are meant for ultimate consumption. For instance, tv, milk, ready-to-eat meals, medicines, and so on., and likewise the products which can be purchased by the organizations for funding functions or for the formation of capital.

OR

‘‘Round circulation precept relies on the idea that one’s expenditure will develop into different’s revenue.’’ Clarify the given assertion.

Reply:  The round circulation of revenue is an financial mannequin that displays how cash or revenue flows by way of the completely different sectors of the financial system. A easy financial system assumes that there exist solely two sectors; i.e., Households and Companies. Households are customers of products and companies and the homeowners of the components of manufacturing (land labour, capital, and enterprise). Nonetheless, the agency sector produces items and companies and sells them to households. 

Within the round circulation of revenue (two-sector financial system), there may be an change of products and companies between the 2 gamers i.e. the companies and households, which results in a sure circulation of cash within the financial system. These two gamers exist to run the financial system, Households present the companies with the components of manufacturing specifically, Land (Pure Assets), Labor, Capital, and Enterprise that generates items and companies, and customers spend their revenue on the consumption of those items and companies. The companies then make issue funds to households within the type of lease, wages, curiosity, and revenue.

Due to this fact, the round circulation precept relies on the idea that one’s expenditure will develop into different’s revenue.

13. ‘‘India is taking large leaps within the index of Ease of Doing Enterprise, consequently many MNCs are shifting their manufacturing base to India.’’ 

Within the mild of the above assertion, remark upon the circulation of overseas change and its doubtless affect on the Indian Economic system. 

Reply: With better ease of doing enterprise, India could possibly efficiently entice extra MNCs to shift their manufacturing base and actions right here which consequently will enhance the influx of overseas change (say ₹) to the Indian financial system. In easy phrases, the approaching of MNCs to India will enhance FDI (Overseas Direct Funding) in the end rising the provision of overseas change in India leading to a fall within the price of overseas change. It signifies that the Indian Rupee (₹) might recognize. 

Therefore, rising MNCs in India; i.e., a rise in FDI will enhance manufacturing in India and may generate employment alternatives within the Indian financial system.

14. Utilizing a hypothetical numerical instance, clarify the method of credit score creation by a business financial institution. 

Reply: The banking construction is solely primarily based on the creation of credit score. In easy phrases, credit score means getting the ability to buy something now and promise to pay it later sooner or later; the financial institution expenses curiosity in case of non-fulfilment of the specified quantity. Primarily based on these credit, the financial institution makes use of an element or a fraction of its buyer deposits to supply loans or lend cash on credit score to different people and companies.

Cash creation or credit score creation is without doubt one of the most necessary actions of economic banks. Due to credit score creation, banks are in a position to create credit score, which is in extra of the preliminary deposits.

This course of relies on two assumptions and may be understood with the assistance of them:

1.  The whole business banking system is taken into account as one unit and is termed as ‘Banks’. 
2. All receipts and funds are routed by way of Banks, i.e., all funds are made by way of cheques, and receipts are deposited in banks.

Banks use the deposits held with them for giving loans. Nonetheless, they can’t use the entire deposit for lending. It’s legally obligatory for banks to take care of a sure minimal fraction of their deposits as reserves. This fraction is named Authorized Reserve Ration (LRR), which is mounted by the central financial institution.

For Instance,

Let’s assume that the LRR (Authorized Reserve Requirement) or Reserve Ratio is 20%.

• ‘A’ deposits ₹1,000 with the financial institution. The cash deposited by ‘A’ would be the Preliminary Deposit. Because of this the financial institution can maintain solely  ₹200 (20% of ₹2000) as money reserve and might lend the remaining ₹800. 
• In case the financial institution lends ₹800 to borrower ‘B’, the quantity is not going to be given within the type of money. As an alternative, the financial institution will open an account underneath the identify of ‘B’ and the quantity shall be credited to his account. The cash spent by ‘B’ comes again into the financial institution within the type of deposit accounts of those that have obtained this fee. It will enhance the demand deposit of banks by ₹800.
• With the brand new deposit, the financial institution retains 20% of ₹800 (i.e., ₹160) as money income and lends the remaining ₹640 to a different borrower ‘C’, which once more comes again to the financial institution as a deposit when ‘C’ spends the cash. This time, the demand deposit of the financial institution will increase by ₹640.
• Additional with the brand new deposit, the financial institution retains 20% of ₹640 (i.e., ₹128) as money reserve, and lends the remaining ₹512 to borrower ‘D’, which once more comes again to the financial institution as a deposit when ‘D’ spends the cash. This time the demand deposit of the financial institution will increase by ₹512.
• This technique of deposit creation continues until the overall money reserves develop into equal to the preliminary deposit i.e., ₹1,000. 

Here’s a tabular illustration of the information:

The preliminary reserves of ₹800 led to the credit score creation of ₹4,000, and the preliminary deposits of ₹1,000 with the financial institution led to the creation of complete main deposits of ₹5,000.

OR

‘‘Central Financial institution acts because the banker to the federal government.’’ Elaborate the given assertion. 

Reply: An apex physique that controls, operates, regulates, and directs a rustic’s banking and financial construction is called a Central Financial institution. Because the capabilities of a central financial institution are peculiar, there is just one central financial institution of a rustic. For instance, the central financial institution of India is the Reserve Financial institution of India (RBI). Completely different capabilities of a Central Financial institution embrace forex authority, banker to the federal government, banker’s financial institution and supervisor, controller of cash provide and credit score, and custodian of overseas change reserves. 

Banker to the Authorities: The Reserve Financial institution of India (Central Financial institution) acts as an agent, banker, and monetary advisor to the Central Authorities and all of the State Governments. As a banker, the Central financial institution carries out each banking enterprise of the federal government, reminiscent of:

• To maintain the money balances of the Central and State Governments, the Central Financial institution maintains a present account.
• It accepts receipts and makes funds for the federal government and likewise carries out change, remittance, and different banking operations of the Central and State Governments.
• In the end, it provides loans and advances to the federal government for non permanent durations. The federal government sells its treasury payments to the Central Financial institution with the intention to borrow cash.  

15. (a) Distinguish between Capital Expenditure and Income Expenditure. 

(b) Outline ‘Tax’.

Reply:

a) The estimated expenditure of the federal government in a fiscal yr that impacts the belongings and liabilities standing of the federal government is called Capital Expenditure. It includes of expenditures such because the acquisition of land, constructing, equipment, and different gear; building of dams and metal vegetation; funding in shares, loans, and advances by the Central Authorities to state and union territory governments; public sector undertakings, and different entities.

Income Expenditure refers back to the estimated expenditure of the federal government in a fiscal yr that doesn’t have an effect on the belongings and liabilities standing of the federal government. These bills are incurred to make sure that authorities departments run effectively and canopy their ongoing prices, e.g. curiosity funds, pensions, salaries, subsidies, grants, and so on. Additionally, it’s recurring in nature.

Distinction between Capital Expenditure and Income Expenditure

Foundation	Capital Expenditure	Income Expenditure
That means	It’s the estimated expenditure of the federal government in a fiscal yr that impacts the belongings and liabilities standing of the federal government.	It’s the estimated expenditure of the federal government in a fiscal yr that doesn’t have an effect on the belongings and liabilities standing of the federal government.
Function	Capital Expenditure is incurred primarily to accumulate belongings and to grant loans and advances.	Income Expenditure is incurred for the conventional operating of presidency departments and for the availability of varied companies.
Nature	Capital Expenditure is non-recurring in nature.	Income Expenditure is recurring in nature as these are spent by the federal government on day-to-day actions.
Examples	Reimbursement of borrowings, Expenditure on acquisition of capital asset, and so on.	Curiosity funds, pensions, salaries, subsidies, grants, and so on.

b) Tax is a obligatory fee that’s imposed by the federal government of a rustic on companies and households. It signifies that nobody can refuse to pay it to the federal government.

16. Utilizing a well-labelled diagram, present how Saving curve may be derived from Consumption curve. 

Reply: Saving Curve may be derived from Consumption Curve with the assistance of the next steps:

1. Draw a forty five° line within the Consumption Curve from the origin. Now decide the breakeven level E, the place the 45° line intersects the consumption curve. 
2. Now, draw a perpendicular from the breakeven level (E) intersecting the X-axis at level R.
3. Now take OS equal to OC beneath the X-axis which is the start line of the saving curve representing dissavings.
4. Be a part of factors SR and prolong it by a straight line to get the saving curve SS.

Rationalization:

Within the above graph, OC is the same as the autonomous consumption (bar{c}) Because of this at zero degree of revenue, financial savings shall be . Due to this, the saving curve will begin from level S on the unfavourable Y-axis. Because the Consumption Curve CC intersects the revenue curve OY at E, which is the break-even level. At this level Consumption is the same as Earnings; i.e., APC= 1 and S = 0, which signifies that the saving curve will intersect X-axis at level R. By becoming a member of these factors and increasing them additional, the saving curve SS is fashioned.

For Visually Impaired Candidates :

(a) If the Saving operate is S = (–) 10 + 0·2Y, how can Consumption operate be derived from the given Saving operate? 

(b) Distinguish between Common Propensity to Save and Marginal Propensity to Save.

Reply:

a) Consumption operate is a useful relationship between consumption and nationwide revenue. It’s represented as:

C = f(Y)

The place, C = Consumption, f = Useful relationship, Y = Nationwide Earnings

Consumption operate is a psychological idea as a result of it’s influenced by subjective components reminiscent of habits, preferences, and so on. Merely put, the Consumption operate represents the households’ willingness to buy items and companies at a given revenue degree throughout a given time frame.

Saving operate is a useful relationship between saving and nationwide revenue. It’s represented as:

S = f(Y)

The place, S = Saving, f = Useful relationship, Y = Nationwide Earnings

Saving operate is also referred to as the Propensity to Save because it reveals the financial savings of households at a given revenue degree throughout a given time frame.

Within the given query we now have to derive the Consumption operate from the given Saving operate; i.e., S = (-)10+0.2Y. As we all know,

Y = C + S

C = Y – S

Due to this fact, C = Y – (-10 + 0.2 Y)

C = 10 + 0.8 Y 

b) Common Propensity to Save (APS) is the ratio of saving (S) to the corresponding revenue degree (Y). The formulation for calculating APS is:

Marginal Propensity to Save (MPS) is the ratio of change in saving (S) to the change in complete revenue (Y). The formulation for calculating MPS is:

Distinction between Common Propensity to Save (APS) and Marginal Propensity to Save (MPS):

Foundation	Common Propensity to Save (APS)	Marginal Propensity to Save (MPS)
That means	It’s the ratio of saving to the corresponding revenue degree.	It’s the ratio of the change in saving to the change in complete revenue.
Worth lower than Zero	When there may be dissavings; i.e., until the consumption is greater than nationwide revenue, APS may be lower than zero.	Because the change in saving can by no means be zero; i.e., the change in consumption can by no means be greater than the change in revenue, MPS can by no means be lower than zero.
Components

17. (a) Calculate the worth of ‘Change in Inventory’ from the next information : 

(b) Outline Actual Gross Home Product.

Reply:

a) To begin with, we now have to find out Gross Worth Added at MP with the assistance of Internet Worth Added at FC, with the assistance of the next formulation:

Now, Worth Added or Gross Worth Added at MP is the same as the distinction between the Worth of Output and Intermediate Consumption. Due to this fact,

Worth Added = Worth of Output – Intermediate Consumption

Worth of Output = Worth Added + Intermediate Consumption

Worth of Output = 230 + 100

= 330

In the end, Change in Inventory may be calculated with the assistance of the next formulation:

Worth of Output = Gross sales + Change in Inventory

Change in Inventory = Worth of Output – Gross sales

Change in Inventory = 330 – 400

Change in Inventory = (-) ₹70 Crores

b) Actual GDP is the financial worth of all items and companies produced throughout the home boundaries of a rustic primarily based on the worth of the products and companies of the bottom yr. Merely put, it’s the inflation-adjusted GDP of a rustic and is expressed when it comes to base yr costs or fixed costs of products and companies. Calculating Actual GDP of a rustic is sort of troublesome. One can examine the Actual GDP of various monetary years of a rustic and might simply analyze the financial development of a rustic utilizing its Actual GDP, as it’s a good indicator of financial development.

OR

(a) Talk about briefly the three elements of ‘Earnings from Property and Entrepreneurship’. 

(b) What are ‘externalities’? State its sorts with appropriate examples. 

Reply:

a) Earnings from Property and Entrepreneurship or Working Surplus is one other time period utilized in issue funds. It’s the sum complete of revenue from property and revenue from entrepreneurship. Working Surplus arises in each authorities and personal enterprises, however doesn’t come up within the normal 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 way of Earnings Technique.

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

• Hire/Royalties
• Curiosity
• Revenue

b) Externalities imply any profit or hurt of an exercise that’s attributable to a person or a company for which they don’t seem to be paid or penalised. There are two forms of externalities: Optimistic Externalities and Unfavorable Externalities. Optimistic Externalities are these actions that profit different individuals. For instance, public parks are utilized by individuals for pleasure for which they haven’t made any fee. Optimistic Externalities lead to a rise in welfare. Nonetheless, Unfavorable Externalities are these actions that hurt different individuals. For instance, air pollution attributable to individuals and industries for which they don’t seem to be at all times penalised. Unfavorable Externalities lead to a lower in welfare.

Part – B
(Indian Financial Growth)

18. Organize the next occasions in chronological order and select the proper reply from the given alternate options :

(i) Institution of Folks’s Republic of China

(ii) Creation of Pakistan

(iii) First 5-12 months Plan of India

(iv) First 5-12 months 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)

19. The primary goal of ‘Nice Leap Ahead’ was to make sure speedy enhance in  ________ (main/secondary/tertiary) sector in China.  (Select the proper different) 

Reply: Secondary Sector 

20. India is just not a member of which of the next regional/international financial grouping? (Select the proper different) 

(A) European Union

(B) BRICS

(C) G-20

(D) SAARC

Reply: (A) European Union

OR

Pakistan launched its financial reforms within the yr ____________. (Select the proper different)

(A) 1974

(B) 1976

(C) 1978

(D) 1988

Reply: (D)1988

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

‘‘Previously few a long time, main sector has created most jobs in India.’’

Reply: False, previously few a long time tertiary sector has created the utmost variety of jobs in India.

22. Throughout India’s first seven five-year plans, the Authorities of India adopted ___________________ coverage to guard home industries. (Replenish the clean with the proper reply)

Reply: Commerce (Import Substitution) Import Substitution is a coverage of substitute or substitution of imports by home manufacturing.

23. State the that means of ‘Golden Revolution’.

Reply: A interval during which the manufacturing of horticultural merchandise reminiscent of greens, fruits, and so on., confirmed an amazing rise is called the Golden Revolution. In India, the interval between 1991 to 2003 is taken into account the interval of the Golden Revolution. It made India a world chief within the manufacturing of spices, bananas, mangoes, and coconut. The Father of The Golden Revolution in India is Nirpakh Tutej.

24.  ________ was the predecessor organisation to World Commerce Organisation (WTO). (Select the proper different) 

(A) Worldwide Financial institution for Reconstruction and Growth (IBRD)

(B) Worldwide Financial Fund (IMF)     

(C) Reserve Financial institution of India (RBI)

(D) Common Settlement on Tariffs and Commerce (GATT)

Reply: (D) Common Settlement on Tariffs and Commerce (GATT)

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

‘‘Self-Assist Teams (SHGs) are an instance of a microcredit organisation.’’ 

Reply: True, a Self Assist Group is a bunch of people or small entrepreneurs who come collectively for a short while interval and create a standard fund for his or her enterprise necessities.

26. State anyone consequence of implementation of Financial Reforms in India in 1991.  

Reply: Financial Reforms are the set of financial insurance policies that goals to speed up the tempo of development and improvement within the financial system.  One of many main outcomes of the implementation of Financial Reforms in India in 1991 was liberalisation of the financial system and enchancment in its development price.

27. Point out anyone benefit of Natural Farming.

Reply: Natural Farming is a type of agriculture that depends on strategies reminiscent of inexperienced manure, compost, crop rotation, and organic pest management. One of many benefits of Natural Farming is that it generates extra employment alternatives for individuals because it includes extra labour than standard farming, giving India a comparative benefit in farming. 

28. Examine and analyse the given information of India and China, with legitimate causes : 

Nation	Annual Progress Price of Inhabitants (2015)	Gender Ratio (Per thousand males)
India	1.2%	929
China	0.5%	941

Supply: World Growth Indicators, 2015

Reply: The given desk associated to the information of India and China reveals the next points about its inhabitants development and intercourse ratio:

1. The annual development price of the inhabitants in China is much less (0.5%) than the expansion price in India (1.2%) due to the “One Youngster Coverage” in China. India too needed to unfold consciousness amongst individuals associated to household planning measures, however the lowering price of inhabitants is China is greater than the lowering price in India.
2. The variety of females per 1000 males in India is much less (929) than the variety of females per 1000 males in China (941). It’s as a result of in India individuals favor a son (male) as their little one as an alternative of a daughter (feminine). 

29. ‘‘Human Capital Formation provides beginning to innovation, invention and technological enhancements.’’ Do you agree with the given assertion? Help your reply with legitimate arguments. 

Reply: Human Capital Formation is the method of addition made to the inventory of expert and succesful individuals within the nation over a time interval. Sure, the given assertion “Human Capital Formation provides beginning to innovation, invention and technological enhancements” is appropriate as this course of not solely will increase the productiveness of the out there human useful resource but in addition helps in stimulating innovation amongst them, which in the end helps in creating the power to undertake new applied sciences. 

Merely put, by making investments in training, one can create the power to undertake new applied sciences, and facilitate invention and innovation. It’s as a result of educated human useful resource often strikes in direction of fashionable applied sciences and innovation.

OR

Critically consider the position of rural banking system within the technique of rural improvement in India.

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

The banking system has quickly expanded in a manner that it had a constructive impact on 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’ll simply avail of quite a lot of loans to fulfill their manufacturing wants. Moreover, the opportunity of a buffer inventory of grains, famines have now develop into an occasion of the previous. 

Nonetheless, regardless of 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 remains to be greater than its availability.
2. Insufficient Protection of Institutional Sources: The institutional credit score preparations of the nation have did not cowl its full proportion of rural farmers.
3. Insufficient Quantity of Sanction: The mortgage quantity sanctioned to the agricultural farmers can be insufficient due to this, the farmers usually divert their mortgage cash for unproductive functions in the end diluting the fundamental goal of those loans.

30. Outline any two of the next :

(a) Absorptive Capability of Setting

(b) Carrying Capability of Setting

(c) Poverty Line (when it comes to Calorific values)

Reply:

(a) Absorptive Capability of Setting: Setting is termed as the overall planetary inheritance and the totality of all sources. Merely put, it’s the sum complete of all of the exterior sources that encompass us and consists of all biotic and abiotic components that affect one another. The absorptive capability of the setting is the setting’s means to soak up degradation with out inflicting any environmental injury. 

(b) Carrying Capability of Setting: Setting is termed as the overall planetary inheritance and the totality of all sources. Merely put, it’s the sum complete of all of the exterior sources that encompass us and consists of all biotic and abiotic components that affect one another. Carrying Capability signifies that the useful resource extraction mustn’t go above the speed of useful resource regeneration. It additionally signifies that the waste generated mustn’t go above the absorption capability of the setting. 

(c) Poverty Line: Poverty is a peculiar drawback due to which varied international locations are struggling. Poverty is a state during which an individual is just not in a position to fulfil even the fundamental requirements of life. Poverty line is the minimal threshold revenue degree or the per capita expenditure which is thought to be satisfactory for the inhabitants of a nation. Merely put, poverty line is a cut-off level on the distribution line, dividing a rustic’s inhabitants as poor and non-poor. Poverty line may be decided when it comes to Energy Consumption and Month-to-month Per Capital Expenditure (MPCE). It tries to seize the socially acceptable minimal way of life of the inhabitants that society tries to fulfil. 

31. ‘‘India is commonly known as as outsourcing vacation spot of the world.’’ Talk about the prime causes for this identify given to India. 

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

India is commonly known as because the outsourcing vacation spot of the world due to the next causes:

1. Simple availability of low-cost labour: The wage price of labour in India is decrease as in comparison with the speed in different developed international locations, 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 various kinds 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: Internation worthiness and credibility of India is nice which makes it an appropriate vacation spot for outsourcing enterprise actions.

OR

State the that means of import substitution. Clarify how import substitution can shield the home industries.

Reply: Overseas commerce refers back to the change of products & companies between two or extra nations or inside boundaries. For overseas commerce, India entered right into a deliberate improvement period within the Fifties and the foremost ingredient of India’s Commerce and Industrial Coverage at the moment was Import Substitution. 

Import Substitution is a coverage of substitute or substitution of imports by home manufacturing. For instance, as an alternative of importing equipment in India from overseas international locations, encouraging home industries to fabricate themselves in India is import substitution. The fundamental goal behind the coverage of import substitution was the safety of home industries from overseas competitors. The 2 main aims of this coverage had been the achievement of self-reliance and the saving of treasured overseas change. 

With the assistance of import substitution, the Authorities of India can shield the home industries within the following two methods:

1. Tariffs: These are taxes levied on imported items. By imposing a heavy obligation on imported items, the Authorities of India geared toward making them costlier to cut back their use.
2. Quotas: These are the non-tariff limitations imposed by the Authorities of India on the amount of imports and exports. Merely put, it means fixing a most restrict on the import of products by a home producer. 

Therefore, tariffs on imported items and fixing quotas may help home industries by proscribing the import degree and eradicating the concern of competitors from the overseas market which in the end encourages home industries in increasing their enterprise.

32. (a) Identify anyone distinguished economist who estimated India’s Nationwide Earnings throughout the Colonial interval. 

(b) Talk about any two causes of India’s agricultural stagnation throughout the Colonial interval.

Reply:

33. (a) State the names of six Indian Techniques of Medication (ISM) underneath the AYUSH scheme of the Authorities of India.  

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

Tendencies in Employment Sample (Sector-wise), 1993 – 2012 (in %) 

Sector	1993-1994	1999-2000	2011-2012
Major	64	60.4	48.9
Secondary	16	15.8	24.3
Providers	20	23.8	26.8

Reply:

a) AYUSH scheme is India’s effectively developed different healthcare system. At current, there are 27,951 AYUSH dispensaries, 4,095 hospitals, and round 8 lakh registered practitioners in India. The six Indian Techniques of Medication (ISM) underneath the AYUSH scheme of the Authorities of India embrace Ayurveda, Yoga, Unani, Siddha, Naturopathy, and Homeopathy. 

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 in the end 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) What is supposed by ‘World Burden of Illness’? 

(b) Talk about any two issues confronted by the ability sector in India. 

Reply:

a) Well being is a state of full bodily, psychological and social well-being and never merely the absence of illness or infirmity. In an effort to perceive the well being supply provisions and mechanisms of a rustic, Well being Infrastructure is used as a vital indicator. One of many indicators of Well being Infrastructure is the World Burden of Illness.

World Burden of Illness is an indicator utilized by consultants for the measurement of the variety of individuals dying prematurely due to a particular illness and to measure the variety of years spent by these individuals in a state of incapacity owing to the illness. The examine of 2017 states that almost two-thirds of the World Burden of Illness was attributable to non-communicable illnesses which can be related to the respiratory system, coronary heart, way of life, and weight problems. 

b) Electrical energy or Energy is a essential element of infrastructure and is commonly recognized with the progress in fashionable civilization. Over the last 4 a long time of planning, Energy improvement in India has been vital; nevertheless, energy era remains to be inadequate as in comparison with the required energy. Due to this, lately, India is dealing with a severe energy disaster. A number of the issues confronted by the ability sector in India are as follows:

1. Insufficient Electrical energy Era: The put in capability of India to generate electrical energy is just not sufficient to feed an annual financial development of 7-8%. It’s only ready so as to add 20,000 MW per yr and to fulfil 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 Vegetation is dealing with a scarcity of uncooked supplies and coal provides.
3. Restricted Position of Personal and Overseas Entrepreneurs: The position of personal sector energy turbines and overseas traders is restricted. They’re but to play a significant position in Energy Infrastructure. 

OR

Critically look at the outcomes of Poverty Alleviation Programmes applied in India since Independence. 

Poverty is a specific concern that impacts many international locations around the globe. There cannot be a universally acknowledged definition of poverty. Broadly it may be mentioned that: Poverty refers to a state during which a person is unable to fulfil even the fundamental requirements of life. The minimal necessities embrace meals, clothes, shelter, training, and well being amenities. To take away poverty, the Authorities of India has taken varied approaches reminiscent of Progress-orientation Method, Minimal Wants Programme, and Poverty Alleviation Programmes. 

Poverty Alleviation Programmes is the second method initiated by the Authorities of India from the Third 5 12 months Plan and has been progressively enlarged since then. As the overall variety of poor individuals has remained the identical during the last 20 years due to the expansion of the inhabitants, the Authorities of India has particularly designed anti-poverty programmes underneath this method for the era of each self-employment and wage employment. 

Due to the poverty alleviation programmes, the share of absolute poor individuals in among the states of India has fallen beneath the nationwide common of poverty. Regardless of the fallen degree of poverty, the issues of starvation, illiteracy, and malnourishment continued to exist in India and the rationale behind these issues are as follows:

• Lack of radical change within the possession of belongings.
• Insufficient useful resource allocation for the programmes.
• The Authorities officers who’re liable for the implementation of those programmes had been ill-motivated and should not correctly educated.
• Lastly, as there may be an unequal distribution of land and different belongings, varied advantages from these programmes have been appropriated by the non-poor.

Therefore, it may be concluded that despite the fact that the poverty alleviation programmes helped in decreasing poverty in India, the Authorities has not been in a position to obtain the specified outcomes due to the improper implementation of those programmes.