CBSE Class 12 Economics Solved Query Paper 2020 – Set 4 (58/4/2)

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Economics (Code No. 58/4/2) 

Time allowed : 3 hours
Most Marks: 80

Basic Directions: 

Learn the next directions very rigorously and strictly observe 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 ought to be transient and to the purpose. Additionally, the above phrase restrict is adhered to so far as doable.  

(vii) There is no such thing as a total selection. Nevertheless, an inner selection has been offered in 2 questions of 1 mark, 2 questions of three marks, 2 questions of 4 marks and a pair 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 essential.

Part – A

(Macroeconomics)

1. State, whether or not the given assertion is true or false : 

‘Sudden obsolescence is a part of depreciation.’ 

Reply: False

Sudden Obsolescence is the lack of worth of fastened property of an organisation, which isn’t anticipated by the purchaser and happen due to pure calamities like floods, earthquakes, twister, and so forth., It isn’t included in depreciation as a result of the lack of worth of fastened property attributable to sudden elements is a capital loss.

2. Two parts of cash provide are _____ and _____. (Refill the clean with the proper reply). 

Reply: 

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

OR 

The principle intention of financial coverage is _____. (Select the proper various) 

(a) to convey worth stability within the financial system. 

(b) employment era within the nation. 

(c) to extend commerce surplus. 

(d) to generate higher tax income.

Reply: (a) to convey worth stability within the financial system. 

3. If earnings rises from ₹50,000 to ₹60,000, consumption will increase from ₹40,000 to ₹48,000. On this scenario, what would be the worth of Marginal Propensity to Devour (MPC)? (Select the proper various.) 

(a) 0.80 

(b) 0.20 

(c) 0.10 

(d) 0.90

Reply: a) 0.80 

4. Loans provided by industrial banks ______ (enhance/lower) the cash provide within the financial system. (Refill the clean with the proper various.) 

Reply: enhance

5. ₹2,000 notice mendacity in pockets of Rohini, a scholar is an instance of ______ (inventory/movement) variable. (Refill the clean with right various.) 

Reply: Inventory

When a variable is measured at a particular level of time, it is called inventory. The products which can be consumed over a time period, that don’t put on out instantly, or intermediate items which don’t change over time or might be measured at a given level of time are referred to as shares. 

6. State, whether or not the given assertion is true or false : 

‘Expenditure on Ujjwala Yojana launched by the Authorities is an instance of capital expenditure.’ 

Reply: False. 

Expenditure on Ujjwala Yojana launched by the Authorities is an instance of income expenditure because it neither creates any asset nor causes any discount within the authorities’s legal responsibility.

7. The sum of issue funds is the same as _______. (Select the proper various.) 

(a) Home Revenue 

(b) Nationwide Revenue 

(c) Per Capita Actual Revenue 

(d) Per Capita Nominal Revenue

Reply: (b) Nationwide Revenue

8. Outline stock (inventory). 

Reply: Stock or inventory is unused uncooked materials, semi-finished good, or unsold completed items which a agency carries from one yr to the following.

9. Give anyone instance of ‘debt creating capital receipts’ within the Authorities Finances. 

Reply: Borrowings from RBI

10. Outline intermediate consumption. 

Reply: The usage of intermediate items in the course of the manufacturing course of to create the ultimate product is termed Intermediate Consumption.

11. “Administration of a water polluting oil refinery says that it (oil refinery) ensures welfare by way of its contribution to Gross Home Product.” 

Defend or refute the argument of administration with respect to GDP as a welfare measure of the financial system. 

Reply: The given assertion, “Administration of a water polluting oil refinery says that it (oil refinery) ensures welfare by way of its contribution to Gross Home Product.” is refuted as a result of GDP is just not a very good measure of welfare because it doesn’t take into account the impression of externalities. Externalities imply any profit or hurt of an exercise that’s attributable to a person or a corporation for which they aren’t paid or penalised.

Because the oil refineries could pollute the close by supply of water, they aren’t penalised for the dangerous impact attributable to them on individuals and marine life. Therefore, these destructive externalities don’t make sure the welfare of the financial system by way of Gross Home Product.

12. Calculate Web Worth Added at Issue Price (NVAFC) from the next knowledge :

 

Reply: Worth-added refers back to the addition within the worth of a uncooked materials or intermediate good by a corporation, in the course of the manufacturing course of. 

To find out NVAFC, to start with, we have now to find out Worth Added or GVAMP.

Worth Added = Worth of Output – Intermediate Consumption 

Worth Added = 800 – 200

Worth Added (GVAMP) = 600

Now, 

NVAFC = Worth Added – Depreciation – Web Oblique Tax (Oblique Tax – Subsidies)

= 600 – 20 – [30 – 50]

= 600 – 20 + 20

NVAFC = ₹600 Crores

OR 

State the three parts of Revenue from Property and Entrepreneurship. 

Reply: Revenue from Property and Entrepreneurship or Working Surplus is one other time period utilized in issue funds. It’s the sum complete of earnings from property and earnings 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 parts are utilized in figuring out nationwide earnings by way of Revenue Methodology.

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

  • Hire/Royalties
  • Curiosity
  • Revenue

13. Clarify the perform of Central Financial institution as ‘Banker, Agent and Advisor’ of the Authorities. 

Reply: A central financial institution is a monetary establishment that’s accountable for managing a rustic’s financial coverage and overseeing the banking system. It acts as the principle regulator of the cash provide and rates of interest and performs a key function in selling financial stability and progress. Central banks are sometimes unbiased of the federal government and have particular powers and obligations granted by regulation. One of many main features of the Central Financial institution is that it acts as a Banker, Agent, and Advisor 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, equivalent to:

  • 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 in addition carries out alternate, remittance, and different banking operations of the Central and State Governments.
  • In the end, it provides loans and advances to the federal government for short-term durations. The federal government sells its treasury payments to the Central Financial institution as a way to borrow cash.

As an agent, the Reserve Financial institution of India (Central Financial institution) is accountable for the administration of public debt.

As a monetary advisor, it provides recommendation to the federal government on occasion on monetary, financial, and financial issues.

OR 

Elaborate, how does a Central Financial institution stabilize cash provide by way of ‘Financial institution Price’. 

Reply: A central financial institution is a monetary establishment that’s accountable for managing a rustic’s financial coverage and overseeing the banking system. It acts as the principle regulator of the cash provide and rates of interest and performs a key function in selling financial stability and progress. Central banks are sometimes unbiased of the federal government and have particular powers and obligations granted by regulation.

Financial institution Price is the speed at which a rustic’s central financial institution (within the case of India, RBI) lends cash to industrial banks to fulfill their long-term monetary wants. Financial institution Price has the identical impact on credit score as that of Repo Price. To stabilize the cash provide within the financial system, the Central Financial institution will increase the financial institution charge, which forces industrial banks to extend their lending charges. As soon as the lending charges are elevated, it makes borrowings costlier for most people. 

Therefore, the Central Financial institution will increase financial institution charge to discourage most people from taking loans from industrial banks, which consequently limit the cash provide within the financial system.

14. Outline efficient demand. Talk about how efficient demand might be restored if ex-ante Combination Demand (AD) is lower than ex-ante Combination Provide (AS). 

Reply: Efficient Demand is that stage of output the place the Combination Demand of the commodities is the same as the Combination Provide.

When the deliberate spending of an financial system; i.e., ex-ante Combination Demand is lower than the deliberate output; i.e., ex-ante Combination Provide, then the AD (C + I) curve lies under the 45° line. It might imply that the shoppers and companies collectively could be shopping for much less items than the willingness of the companies to supply. Due to this, the deliberate stock of the companies would rise. 

For bringing again the stock to the specified stage and clear the undesirable enhance in stock, the companies would resort to discount in employment and output till the financial system will get again at output stage OY, the place AD finally turns into equal to AS and there’s no extra tendency to vary.

GRAPH

15. Elaborate the target of ‘allocation of assets’ within the Authorities Finances. 

Reply: Authorities Finances is a press release of anticipated receipts and anticipated expenditures of the Authorities (for the approaching fiscal yr) that reveals the budgetary coverage of the Authorities to attain the dual goal of progress and stability. The monetary/fiscal yr is taken from 1st April to thirty first March. One of many main goals of the Authorities Finances is the Allocation of Sources.

Allocation of Sources refers back to the route of assets from one use to the opposite. In India, the private and non-private sectors play a vital function within the financial system. Nevertheless, Personal enterprises all the time intention at maximising income by allocating assets to these areas of manufacturing the place they will earn larger returns. There are possibilities that an business like alcohol could not promote the welfare of individuals. The Authorities of a rustic directs the distribution of assets by way of its assets as a way to strike a stability between the targets of revenue maximization and social welfare. For instance, there may be the manufacturing of each essential and luxurious items. Moreover, the Authorities can affect the allocation of assets by way of:

  • Tax Concessions or Subsidies: Authorities encourages and discourages funding in helpful and dangerous items respectively by offering concessions, subsidies, imposing heavy taxes, and so forth., on their manufacturing. For instance, Authorities imposes heavy taxes on producing items which can be dangerous to well being, like ‘cigarettes’. Equally, Authorities gives subsidies for the manufacturing of products like ‘khadi’, that are useful to society. 
  • Immediately Producing Items and Providers: If the personal sector doesn’t take the initiative in sure non-profitable financial actions, the Authorities straight controls them, like water provide, sanitation, and so forth. It’s also often known as the allocation perform because the Authorities makes an attempt to supply sure items and providers which can’t be offered by way of the market mechanism.

16. State, giving legitimate causes whether or not the next statements are true or false : 

(i) Commerce deficit is all the time a terrific explanation for fear for an financial system. 

(ii) Depreciation of forex has the identical impact on exports as devaluation of forex. 

(iii) ‘Indians investing in property overseas’ might be recorded below debit aspect of capital account in Stability of Funds. 

Reply:

i) False. 

Commerce deficit is a scenario when the imports of products are greater than the exports of products. Despite the fact that Stability of Commerce is unfavourable for the nation, it isn’t all the time a terrific explanation for fear for an financial system. It’s as a result of commerce deficit displays a rise in funding which builds the capital inventory which can finally enhance the long run output in an financial system.

ii) True. 

Forex Depreciation means a lower within the worth of home forex when it comes to overseas forex. Devaluation of forex means a discount within the worth of home forex when it comes to all foreign exchange below the fastened alternate charge regime. Depreciation and devaluation each have the identical impact on exports as each of them usually encourages exports from a rustic as they becCurrency Depreciation means a lower within the worth of home forex when it comes to overseas forex. Devaluation of forex means a discount within the worth of home forex when it comes to all foreign exchange below the fastened alternate charge regime. Depreciation and devaluation each have the identical impact on exports as each of them usually encourages exports from a rustic as they turn into cheaper for overseas nationals they usually can now purchase extra of home items with the overseas forex.ome cheaper for overseas nationals they usually can now purchase extra of home items with the overseas forex.

iii) True. 

Capital Account includes of all of the transactions, which have a direct or oblique impression on the property and liabilities of the nation or authorities with regard to the skin world. When Indians put money into property overseas it can lead to an outflow of overseas forex; therefore, it is going to be recorded below the debit aspect of capital account within the Stability of Fee.

OR

(a) Clarify, what might be the doubtless impression of depreciation of the house forex on imports to the nation. 

(b) Distinguish between Present Account Deficit (CAD) and Present Account Surplus (CAS). 

Reply:

a) Forex Depreciation means a lower within the worth of home forex when it comes to overseas forex. For instance, if the value of $1 rises from ₹60 to ₹64, then it may be mentioned that there’s a depreciation of the Indian forex. The principle elements contributing to forex depreciation are straightforward financial coverage and extreme inflation. It will also be attributable to political instability. Attributable to uncertainty within the home nation, buyers worry investing within the home nation. For instance, because of the battle between Russia and Ukraine, buyers worry investing within the nation due to instability within the financial system. Moreover, if the nation imports giant quantities of merchandise, then there might be a commerce imbalance, which can result in forex depreciation.

Affect of depreciation of residence forex on imports to the nation:

Forex depreciation means a fall within the worth of home forex (₹) compared to foreign exchange ($). For instance, earlier individuals can get items price ₹60 from a unit of the greenback, however now they will get items price ₹64 from 1$. It signifies that they’ve to present extra money when it comes to rupees to get items from a overseas nation, leading to losses for importers. Subsequently, imports of the economy could fall at are inclined to fall.  

b) Present Account Deficit (CAD): A scenario when the present account’s receipts are lower than its funds is called Present Account Deficit. Merely put, this case arises when the worth of exports of products and providers is lower than the worth of imports of products and providers. 

Present Account Surplus (CAS): A scenario when the present account’s receipts are greater than its funds is called Present Account Surplus. Merely put, this case arises when the worth of exports of products and providers is greater than the worth of imports of products and providers.

(The products and providers right here include seen objects, invisible objects, and unilateral transfers.)

Distinction between Present Account Deficit and Present Account Surplus:

Foundation

Present Account Deficit

Present Account Surplus

That means

A scenario when the present account’s receipts are lower than its funds.A scenario when the present account’s receipts are greater than its funds.

Significance

Present Account Deficit signifies that the nation is a borrower from the remainder of the world.Present Account Surplus signifies that the nation is a lender to the remainder of the world.

17. (a) Given the next data, establish whether or not the financial system is in equilibrium or not. 

 

Reply: An financial system is in equilibrium when the Combination Demand is the same as the Combination Provide; i.e., AD = AS(Y).

Within the given query, MPC = 0.7, Y = ₹1,000 Crores, and Autonomous Consumption = ₹200 Crores

AD=bar{A}+MPC(Y)

AD = 200 + 0.7 (1,000)

AD = 200 + 700

AD = ₹900 Crores

AD = ₹900 and AS = ₹1,000. 

The financial system within the given query is just not in equilibrium as a result of right here AD < AS.

(b) Reply the next questions based mostly on the determine given under : 

 

(i) At which stage of earnings, Common Propensity to Devour might be equal to at least one and why?

(ii) What’s the significance of saving curve above the purpose B.

Reply: 

i) Common Propensity of Devour (APC) is the ratio of consumption expenditure to the corresponding earnings stage at a degree of time.

APC might be equal to at least one when the Consumption is the same as Revenue; i.e., Financial savings is the same as zero.

ii) Level B is the break-even level and the saving curve above this level signifies constructive financial savings. 

For Visually Impaired Candidates solely : 

(b) (i) Outline Autonomous consumption. 

(ii) What’s the significance of dis-savings?

Reply:

b) i) Autonomous Consumption is the minimal consumption stage required for survival. Merely put, it’s consumption at zero stage of nationwide earnings. A person meets this consumption stage both from previous financial savings or by promoting property or by way of borrowings. Autonomous Consumption is denoted by bar{C}   .

ii) Dis-savings is a scenario when Consumption (C) is greater than Revenue (Y). This example signifies that the spending executed for primary wants (essential for one’s survival) is financed by borrowings and previous financial savings. 

Part – B

(Indian Financial Growth)

18. Which of the next nations adopted ‘One Youngster Coverage’ as a measure to manage inhabitants?(Select the proper various.) 

(a) India

(b) China 

(c) Pakistan

(d) Russia 

Reply:(b) China 

19. World Commerce Organisation (WTO) was established in 1995, as a successor organisation to _______. (Refill the clean with right reply) 

Reply: GATT (Basic Settlement on Commerce and Tariff)

20. Outline combined financial system. 

Reply: A Combined Economic system system is a mixture of each capitalist and socialist financial methods. It incorporates the advantages of each methods and avoids their drawbacks. In a combined financial system, each the private and non-private sector coexists, and the personal & public sector collaborates to attain social goals inside an financial framework. India is the most important instance of a combined financial system.

21. _______ coverage adopted in first seven 5 yr plans of India, geared toward substituting imports with home manufacturing. (Refill the clean with the proper reply) 

Reply: Import Substitution

22. Previously few a long time _________ (major/secondary/tertiary) sector has created most jobs alternatives in India. (Refill the clean with the proper reply) 

Reply: tertiary

23. The principle intention of ‘Nice Leap Ahead’ (GLF) in China was to make sure speedy enhance of _______. (Select the proper various) 

(a) agriculture 

(b) industries 

(c) providers 

(d) exports 

Reply: (b) industries 

24. Which of the next is NOT a advantage of natural farming? (Select the proper various.) 

(a) Cheaper inputs 

(b) Engaging returns on funding 

(c) Better import potentialities 

(d) Greater dietary worth 

Reply: (c) Better import potentialities 

25. Outline disguised unemployment.

Reply: A scenario wherein the variety of staff/employees engaged in a piece is greater than the precise requirement is called disguised unemployment. One other title for disguised unemployment is Hidden Unemployment. For instance, if solely 4 employees are required on a chunk of land however 7 employees are engaged on that land, then 3 employees are disguised unemployed.

26. Introduction of Financial Reforms in China came about within the yr _________. (Select the proper various.) 

(a) 1978 

(b) 1980 

(c) 1988 

(d) 1991

Reply: (a) 1978 

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

“World Financial institution is often known as Worldwide Financial institution for Registration and Delimitation (IBRD).”

Reply: False. 

World Financial institution is often known as Worldwide Financial institution for Reconstruction and Growth (IBRD).

OR 

Outline Marketed Surplus. 

Reply: Marketed Surplus is that portion of the agricultural produce which is offered by the farmers available in the market. Merely put, it’s the distinction between the entire output produced by the farmers and their self-consumption from that output. 

Marketed Surplus = Complete farm output produced by a farmer – Personal Consumption of farm output

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

Data of India and China

 

Reply: The given desk associated to the info of India and China reveals the next elements of its inhabitants progress and intercourse ratio:

  1. The annual progress charge of the inhabitants in China is much less (0.5%) than the expansion charge in India (1.2%) due to the “One Youngster Coverage” in China. India too wished to unfold consciousness amongst individuals associated to household planning measures, however the lowering charge of inhabitants is China is greater than the lowering charge 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 want a son (male) as their youngster as a substitute of a daughter (feminine). 

29. “Speedy enhance in financial progress certainly trickles all the way down to the individuals below the completely poor class.” 

Defend or refute the given assertion with legitimate argument. 

Reply: A poor particular person is a person who lives a troublesome life as he isn’t in a position to 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 certainly trickles all the way down to the individuals below 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 earnings of the nation.
  • Additionally, the inexperienced revolution has elevated the regional disparity and the hole between poor and wealthy farmers.
  • In the end, the wealthy have grabbed the advantages of financial progress.

OR 

“Human Capital Formation provides delivery to innovation, invention and technological enhancements.” Do you agree with the given assertion? Assist 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 delivery to innovation, invention and technological enhancements” is right as this course of not solely will increase the productiveness of the obtainable human useful resource but in addition helps in stimulating innovation amongst them, which finally 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 normally strikes in the direction of trendy applied sciences and innovation.

30. Distinguish between: 

(i) Tariff and non-tariff Boundaries, 

(ii) Bilateral and multilateral commerce. 

Reply:

i) Tariff Boundaries: The taxes or duties imposed on the imports of the nation by the federal government, to guard home corporations and enhance authorities income are often known as tariff boundaries.

Non-tariff Boundaries: All restrictions aside from the taxes imposed on the imports of the nation by the federal government, to guard home corporations and discriminate in opposition to new entrants are often known as non-tariff boundaries.

Distinction between Tariff and Non-tariff Boundaries

Foundation

Tariff Boundaries

Non-tariff Boundaries

That means

The taxes or duties imposed on the imports of the nation by the federal government, to guard home corporations and enhance authorities income.All restrictions aside from the taxes imposed on the imports of the nation by the federal government, to guard home corporations and discriminate new entrants.

Nature

These are express in nature.These are implicit in nature.

Income

Authorities receives income from tariff boundaries.The Authorities don’t obtain any income from non-tariff boundaries.

ii) Bilateral Commerce: Buying and selling of products and providers between two nations is called Bilateral Commerce.

Multilateral Commerce: Buying and selling of products and providers amongst two or greater than two nations is called Multilateral Commerce.

Distinction between Bilateral and Multilateral Commerce

Foundation

Bilateral Commerce

Bilateral Commerce

That means

Buying and selling of products and providers between two nations.Buying and selling of products and providers amongst two or greater than two nations.

Encourages

Bilateral Commerce encourages financial cooperation between two nations.Multilateral Commerce encourages globalisation which finally integrates many nations of the world.

Negotiations

It requires separate negotiations with completely different nations on one to at least one foundation.It requires negotiations with many nations collectively.

31. (a) State the names of six Indian Programs of Drugs (ISM) below the AYUSH scheme of the Authorities of India.  

(b) Identify any two non-conventional sources of power.

Reply: 

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

b) The sources of power which have come into use solely lately are often known as non-conventional sources of power. These sources of power are renewable and eco-friendly. Two non-conventional sources of power are wind power and geothermal power.

32. Talk about briefly any two salient options of India’s pre-independence occupational construction. 

Reply: Distributing working individuals throughout major, secondary, and tertiary sectors of the financial system is called Occupational Construction. The first sector consists of manufacturing items that exploit pure assets like water, land, and so forth. For instance, mining, fishing, forestry, and so forth. The secondary sector consists of manufacturing items that rework one good into one other good. For instance, development corporations, energy era corporations, and so forth. The tertiary or service sector consists of manufacturing items which can be engaged in producing providers. For instance, finance, training, transport, and so forth.

The salient options of the occupational construction of India on the eve of Independence are as follows:

  1. Predominance of Major Occupation: Largest share of the workforce; i.e., 70-75% have been discovered within the agricultural sector. Nevertheless, the manufacturing and repair sector accounted for 10% and 15-20% respectively.
  2. Regional Variation: On the eve of independence, regional variation was rising. There was a decline within the dependence of the workforce on the agricultural sector within the states of Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, West Bengal, and Maharashtra. Nevertheless, the rise within the manufacturing and repair sectors in these states was good. Additionally, throughout the identical time, the share of the workforce within the agricultural sector within the states of Orissa, Punjab, and Rajasthan elevated.

OR

Talk about briefly the rationale behind selecting ‘Self-reliance’ as a planning goal for the Indian financial system. 

Reply: The planning fee proposed that India ought to formulate a plan for a interval of 5 years for its improvement and financial progress, often known as the 5 Yr Plan. Until now, twelve five-year plans have been accomplished in India. Underneath the affect of then Prime Minister Pt. Jawahar Lal Nehru, India established its first five-year plan impressed by the Soviet Union. The fundamental targets behind the 5 Yr Plan are progress, modernisation, self-reliance, and fairness.

Self-reliance means something that India is able to manufacturing domestically is not going to be imported, particularly meals and agricultural merchandise. In nutshell, Self-reliance means improvement by way of home assets. The main goals of selecting Self-reliance as a planning goal for the Indian financial system are as follows:

  • To cut back Overseas Dependence: As India lately obtained freedom from overseas management, it was essential for India to turn into unbiased or self-reliant and cut back its dependency on overseas nations, particularly for meals or agricultural objects.
  • To keep away from Overseas Interference: The federal government of India was afraid that dependency on overseas nations for meals provides, capital, & expertise could enhance overseas interference within the financial insurance policies of the nation.

33 (a) Outline worker-population ratio. What does it signifies? 

(b) Analyse the developments in sectoral distribution of labor power in India on the premise of knowledge:

 

Reply:

a) Employee-population Ratio is the ratio of complete variety of employees to the entire inhabitants and is mostly expressed when it comes to proportion. The formulation for calculating the worker-population ratio is:

Worker~Population=frac{Total~number~of~workers}{Total~Population}times{100}

Significance: The worker-population ratio signifies that a part of a inhabitants which has an lively contribution to the manufacturing of products and providers of a rustic.

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 major sector is quickly lowering from 74.3% (in 1972-73) to 48.9% (in 2011-12). Nevertheless, the employment share of each secondary and repair sectors has elevated by roughly 13.4% (within the final 40 years) and 12% (within the final 40 years), respectively. 

OR 

(a) “The Prime Minister urged to extend the agricultural earnings by rising non-farm actions.” 

Clarify how non-farm actions can result in rise in earnings of individuals in rural sector. 

(b) “Indian well being system wants the elevated dose of public expenditure to treatment itself.” 

Defend or refute the given assertion with legitimate arguments. 

Reply:

a) Non-farm actions like poultry, craft, animal husbandry, handloom, dairying, and so forth., are other ways of achieving sustainable livelihood and elevating the earnings stage. The earnings stage is raised due to the less probabilities of threat confronted by farmers in farm actions due to fluctuations in manufacturing and market costs. 

Moreover, in India, agriculture is principally a seasonal occupation and in the course of the low season, the farmers discover it troublesome to search out different employment alternatives and stabilise their earnings. Subsequently, the Prime Minister has urged to extend rural earnings by rising non-farm actions.

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

34. (a) State and talk about any two environmental considerations confronted by India within the current instances.

(b) Talk about the significance of credit score in rural improvement.

Reply: 

a) Atmosphere is the entire planetary inheritance and complete assets. Merely put, it’s the sum complete of all exterior forces surrounding us and consists of all biotic and abiotic elements influencing one another. Atmosphere performs 4 main features; viz., Gives assets for manufacturing, assimilates waste, sustains life, and gives aesthetic providers. 

Two environmental considerations confronted by India within the current instances are:

  1. Land Degradation: It means a decline within the total high quality of water, soil or vegetation circumstances and is usually attributable to human actions. Land Degradation happens due to the pure and man-made processes of water erosion, wind erosion, and waterlogging. In India, poor land use practices are accountable for quick land degradation. The elements accountable for land degradation are shifting cultivation, overgrazing, improper crop rotation, poverty of the agriculture-dependent individuals, and so forth. 
  2. Water Air pollution: When poisonous substances enter rivers, streams, and different water our bodies and get dissolved or lie suspended in water, it leads to water air pollution. It degrades the standard of water and harms the lifetime of marine life and varied non-marine animals too, and can be a severe menace to human life. The issue of water air pollution is so extreme that in close to future getting freshwater appears to be a distant dream.

b) Steady and complete socio-economic course of that makes an attempt at enhancing all elements of rural life is called Rural Growth. A well timed infusion of capital to get excessive productiveness in agriculture and non-agriculture sectors is crucial for the expansion of the agricultural financial system. Because the time hole (gestation hole) between the sowing of crops and the realisation of earnings is lengthy, the farmers are in sturdy want of credit score for agricultural actions. There are two sources from which the farmers elevate loans for agriculture; viz., Non-Institutional Sources and Institutional Sources. By these sources, the farmers meet their preliminary funding in seeds, fertilisers, and different household bills like marriage, dying, and so forth. Subsequently, credit score is essential for rural improvement because it contributes to agricultural manufacturing.

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