Kendriya Vidyalaya Sangthan, Jaipur Region SET-1

Subject: Economics
Marking Scheme
Practice Paper
Class: XII Time: 3:00 Hours Maximum Marks: 80 Marks
Q.NO. ANSWERS (SECTION A – MACRO ECONOMICS) MARKS
1. (a) Only. 1
2. (c) C = bY. 1
3. (C) Both A and R are true and R is the correct explanation of A. 1
4. (c) All the three 1
5. (b) 2 and 3 Only 1
6. (a) 1 only 1
7. (b) KT 1
8. (b) 2 only 1
9. (b) 1 1
10. (b) 2 and 3 Only 1
11. Indian rupee plunged to all time low of 80.87₹ against US Dollar ($). It is known 1
as depreciation in the value of Indian Rupee resultant:
➢ It may lead to fall in imports as foreign goods will become costlier. Fall in 1
imports less out flow of foreign exchange from the country.
➢ Due to depreciation of rupee cause increase in exports as competitiveness of 1
Indian goods will become better. Increase in exports net inflow of foreign
exchange increases.
Which has favorable effect on the Balance of Payments position.
12. Answer: Change in stock = (ii) +(vi)+(v)-(iii)-(i) 1
= 200+100+40-10-400 1
= (-) ₹ 70 Crores. 1
13. ̅ ) ₹100, MPC 0.6, Equilibrium level of
Given, Autonomous Consumption (𝑪 1
Income (Y) = ₹ 2,000
We know that at equilibrium level, Y = C + ̅𝑰
̅ + MPC(Y) + ̅𝑰
Y=𝑪
1
2,000 = 100+ 0-6 (2,000) + ̅𝑰
 2,000 = 1,300+ ̅𝑰 1
̅𝑰 = 2,000 – 1,300 = ₹ 700.

Thus, it is proved that the given statement is false. Because the correct value of 1
Autonomous Investment is ₹ 700.
14. (A) When ex-ante Aggregate Supply is more than ex-ante Aggregate Demand, it 4
means that households are planning to save more than what the firms expect
them to. This will lead to Recession In the Economy this create Unsold stock with
producers resultant Producers cut down the production Reduce the level of
Income lastly again Equilibrium restored in the economy.
As a result, there may be a decrease in the level of output, employment and
income in the economy.
OR
(B) The given statement is not true. When planned savings are less than the planned
investments it means households are planning to consume more than what the
firms expected. As a result, planned inventory would fall below the desired level.
To bring back the inventories at the desired level, producers may expand
production raising the employment and income level.
15. The rate of interest paid by the Central Bank on deposits made by commercial 2
banks is called Reverse Repo Rate. When Reverse Repo Rate is raised, it
encourages the commercial banks to park their funds with the central bank. This
has the negative effect on the lending capability of the commercial banks, which
leads to decrease in money supply in the economy.
Open Market Operations refers to buying and selling of government securities by 2
the Central Bank from/to the general public. By selling government securities the
Central Bank soaks liquidity from the economy because those who buy make
payments by cheques to the Central Bank. This reduces the reserves of
commercial banks and adversely affects bank's ability to create credit and thus,
reduces the money supply in the economy.
16. (A) The given Statement-Is refuted as the fiscal deficit can exist without revenue
deficit, if:
(i) Capital Budget is in deficit (CE>CR) with balanced Revenue Budget (RE=RR). 1½

(ii) Capital Budget is in deficit (CE> CR) in greater proportion to Surplus Revenue 1½
Budget (RR>RE).
(B) The given Statement-Is appropriate. The government may impose higher taxes 3
(both direct and indirect taxes) on the richer class, reducing their purchasing
power, Government may use the same tax revenue to provide goods and services
(free or at subsidized price) to the poorer section of society to support them.
17. (A) Circular Flow of income refers to the unending flow of the activities of 3
production, income generation and expenditure involving different sectors of the
economy. The three phases of circular flow:

(a) Production of goods and services causes generation (or distribution) of

income.
(b) Income causes expenditure (or disposition.)
(c) By generating demand, expenditure once again causes production.
The flows of production, income and expenditure form a circularity with no
beginning or no end. Which is why it is called circular.
(B) The given statement is refuted, as national income is the factor income earned by 3
the normal residents of a country, irrespective of whether earned within or
outside the domestic territory.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18. (b) 2 only 1
19. (b) 2 only 1
20. (b) 1
21. (b) There will be more elderly people in proportion to young people. 1
22. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
23. (c) Both statements 1 and 2 are true 1
24. (a) Statement I is correct, but Statement II is incorrect. 1
25. (d) Both A and R are true but R is not the correct explanation of A. 1
26. (c) Both A and R are true and R is the correct explanation of A. 1
27. (c) Statement-I is true, Statement-II is false. 1
28. (A) The given statement is correct; in the early post- independence period the aim of 3
the government's policy was to reduce the dependence on the foreign countries
for goods, services, technology and capital. It stressed on the use of domestic
resources to avoid foreign interference, as it was feared that the dependence on
the imported food supplies, foreign technology and foreign capital may increase
foreign interference in the policies of our country.
Similarly, the main thrust of the 'Atmanirbhar Bharat' is also to make India an
economy that is self-reliant and self-sufficient.
OR
 (B) Two-fold motive behind systematic destabilisation of indigenous Indian
industries in the British era was.
(i) To get raw material from India at cheaper rates to be used for upcoming
modern industries in Britain.
(ii) To sell finished product produced by the British industries in Indian market
at higher prices.
29. The given statement is correct.
(i) Investment in human capital formation (investment in education and health) 1
enhances efficiency/productivity, skills, and capabilities implying economic
growth.
(ii) Technical skills acquired through sources of human capital formation such as 1
education, training and sound health etc. provides opportunity to labour supply
to make better use of given resources.
(iii) Investment in education creates ability to adopt newer technologies, 1
facilitates invention and innovation since educated workforce generally adapts to
modern technologies and innovation.
30. The Great Leap Forward (GLF) campaign was initiated in China in 1958, which 4
aimed at industrialising the country on a massive scale.
(a) People were encouraged to set up industries in their backyards.
(b) In rural areas, communes were started. Under the Commune system, people
collectively cultivated lands. In 1958, there were 26,000 communes covering
almost all the farm population.
However, GLF campaign met with many problems:
(i) A severe drought caused havoc in China killing about 30 million people.
(ii) When Russia had conflicts with China, it withdrew its professionals who had
earlier been sent to China to help in the industrialisation process.
31. 'Rural development' essentially focuses on action for the development of areas 4
that are lagging behind in the overall development of the village economy.
Mahatma Gandhi had always maintained that the real growth of India does not
mean simply the growth and expansion of industrial urban countries but mainly
the growth and development of the villages. The importance of rural
development in India lies in the fact that 2/3rd of the population still (directly or
indirectly) depends on agriculture and 1/3rd of the rural population still lives
in abject poverty.
Some of the prime /key areas for the development of the rural India are: -
(i) Infrastructure development
(ii) Alleviation of poverty
 (ii) Development of human Capital
32. Government is strategically promoting labor-intensive manufacturing and 4
expanding employment opportunities in tourism and agro-based industries. A
labor-intensive industry requires large amounts of manual labor to produce its
goods or services. The National Manufacturing Policy identifies employment
intensive industries like textiles and garments, leather and footwear, gems and
jewelry and food processing, etc. as special focus attention sectors. The policy
provides special attention for Small Scale Industries as they offer employment
opportunities both for self-employment and jobs across diverse geographies.
33. (i) Monkomb Sambasivan Swaminathan is the Father of the Green Revolution in 2
India a legendary agricultural scientist, who passed away on Thursday 28 Sept
2023.
(ii) Objectives of Green Revolution in India are: - 2
(a) Short Term: The revolution was launched to address India’s hunger crisis
during the second Five Year Plan.
(ii) Long Term: The long-term objectives included overall agriculture
modernization based on rural development, industrial development;
infrastructure, raw material etc.
(iii) Employment: To provide employment to both agricultural and industrial
workers.
(iv) Scientific Studies: Producing stronger plants which could withstand
extreme climates and diseases.
(v) Globalization of the Agricultural World: By spreading technology to non-
industrialized nations and setting up many corporations in major agricultural
areas.
(iii) Major effects of green revolution on Indian economy are: 2
(a) Increase in Agricultural Production (e) Ploughing back of profit
(b) Prosperity of Farmers (f) Industrial Growth
(c) Reduction in import of food-grains (g) Rural Employment
(d) Capitalistic Farming
34. According to the United Nations Conference on Environment and Development 6
(UNCED), sustainable development is defined as “Development that meets the
need of the present generation without compromising the ability of the
future generation to meet their own needs”. The use of the concept of ‘needs’
in the definition is linked to the distribution of resources.
India is using tourism to achieve sustainable development goals:-
Indian villages are getting global recognition for rural tourism. For example,
Pochampli village in Telangana has been declared one of the best tourism villages
by the United Nations World Tourism Organisation.
— Tourism has the potential to generate the maximum number of employments
with minimum investment and thus tourism can be a positive force for economic
transformation, rural development and community well-being.
— Tourism could be used to enable sales of local products and services, youth to
become entrepreneurs; provides a channel for employment of women and non-
advantaged communities like tribals and thus leads to community empowerment
and poverty alleviation.
 Kendriya Vidyalaya Sangthan, Jaipur Region SET-2
Subject: Economics
Marking Scheme
Practice Paper
Class: XII Time: 3:00 Hours Maximum Marks: 80 Marks
Q.NO. ANSWERS (SECTION A – MACRO ECONOMICS) MARKS
1 (c) Both statements 1 and 2 are true. 1
2 (d) Both (a) and (c). 1
3 (b) At point of time. 1
4 (c) Both statements 1 and 2 are true. 1
5 (a) Statement 1 is true and statement 2 is false. 1
6 (c) 0.9. 1
7 (c) Reduce cash reserve ratio. 1
OR
(c) 12.5%.
8 (b) 2-(B). 1
9 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
10 (c) Assertion (A) is true but Reason (R) is false. 1
11 Externalities refers to benefits or harms of an activity caused by a firm or an 3
individual, for which they are not paid or penalised.
Mention any one example or each Negative externality and positive externality.
OR
The given statement is defended, as subsidy is a transfer payment. Subsidy is the
financial assistance provided by the government to the producer to fulfill its social
welfare objective. Government does not get anything in consideration for the
same.
12 S= I , 3
200= (-)25+0.25Y,
225= 0.25Y, Y=₹ 900 crores.
AD= C+I,
C= 25+ ( 1-0.25)Y
AD = 25+0.75(500)+200
AD = ₹ 600 crores.
13(a) Government can influence allocation of resources through: 2
(i) Tax concession or subsidies: to encourage investment, the government can give
tax concession, subsidies etc.to the producers.
(ii) Directly producing goods and services: there are many non-profitable
economic activities, which are not undertaken by the private sector. Such
activities are necessarily undertaken by the government in public interest and to
raise social welfare.
(b) Economic stability means absence of large- scale fluctuation in prices. Such 2
fluctuations create uncertainties in the economy. Government can exercise control
over these fluctuations through taxes and expenditure.
 Inflationary tendencies emerge when AD is higher than the AS. Government can
bring down AD by reducing its own expenditure.
During deflation, the government can increase its expenditure and give tax
concessions and subsidies.
14 Assumption: 4
(i) The entire banking system is one unit.
(ii) All receipts and payments routed through the banks.
LRR assume to be 20%.
Numerical example:
Credit creation = 1/ Reserve ratio (LRR)
LRR is assumed to be 20% and initial deposit is ₹ 1000 crores.
Total credit creation = 1/ Reserve ratio x Initial deposits
= 1/0.2 x 1000
= ₹ 5000 crores
15(A) (i) No, balance of trade refers to the difference between the amounts of exports 4
and imports of visible items. BOT included only visible items i .e. goods only.
(ii) Depreciation and devaluation both imply a fall in external value of a currency.
However, the term depreciation is used under the floating exchange rate system
that is when the exchange rate system is determined by the combined market
forces of demand and supply.
The term devaluation is used in the system of fixed exchange rates. In this system
the exchange value of a currency is decided by the government. Devaluation of
currency is the deliberate action of the government.
OR
(B) Autonomous items Accommodating items
(i) Those international transactions which (i) Transactions that are undertaken to cover
take place due to some economic motive deficit or surplus in autonomous transactions.
such as profit maximisation.
(ii) Autonomous transactions are (ii) Accommodating transactions are
independent of the state of BOP account undertaken to maintain the balance in BOP
account
(iii) Autonomous transactions take place (iii) Accommodating transactions take place
on both current and capital accounts. only on capital account
(iv) These items are also known as ‘above (iv) These items are also known as ‘below the
the line items’. line items’.
16 Fiscal policy refers to the policy of the central government regarding public 3
expenditure and taxation.
To control the deflationary gap:
(i) Increase in government spending (Explain it)
(ii) Decrease in taxes (Explain it)
(B) Due to increase in repo rate the cost of borrowings from the central bank increase. 3
As a result, commercial banks are forced to increase their lending rates. It
 discourages the borrowers from taking loans and reduces the availability of credit
in the economy, which helps to correct the inflation in India.
17 GDPMP = 600+200+{110+(-10)+50}-(-20) 3
= ₹ 970 crores
NNPFC = 970 - 50+(-10) -70
= ₹ 840 crores
Final goods - those goods which are used either for consumption or for 3
investment. They are included in national income as well as domestic income. E.g.:
Milk purchased by the household.
Intermediate goods- those goods which are used either for resale or for further
production in the same year. They either included in national income nor in
domestic income. E.g.: Milk used in dairy shops for resale.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
18 (a) Agricultural 1
19 (c) Low mortality rate and high birth rate. 1
OR
(c) (II),(III),(IV),(I)
20 (c) Increase cost of production 1
21 (b) Sale of crop at a very poor price. 1
OR
(b) More persons employed for a job which less can accomplish.
22 (a) Statement 1 is true and statement 2 is false. 1
23 Renewable 1
24 (d) All of these 1
25 (c) C-III 1
26 (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
27 (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct 1
explanation of Assertion (A).
28 Extraction of resources at a speed more than its regeneration reduces the carrying 3
capacity of the environment.
(i) In such a situation, the environment fails to perform its function of sustaining
life, which leads to a situation of environmental crises.
(ii) It creates the need to explore alternative eco- friendly resources to avoid
environmental crises.
(iii) Moreover, environmental crises also create various health problems, which
necessitate the need for heavy health expenditure.
29 This trend is termed as ‘Jobless growth’. Jobless growth refers to a situation when 3
the economy is able to produce more goods and services without a proportionate
increase in employment opportunities. It is a situation when there is an overall
acceleration in the growth rate of GDP in the economy without corresponding
expansion in employment opportunities.
OR
(i) Education confers higher earning capacity on people
(ii) It enables one to make better choices in life
(iii) It also stimulates innovations
 (iv) It gives better social standing and pride.
30 (i) Reduction of public investment. (ii) Removal of subsidy. 4
(iii) Liberalisation and reduction in import duties.
(iv) Shift towards cash crops (Explain it).
31 (i) De- industrialisation 4
(ii) Adverse effects of decline of handicraft industry
(iii) Lack of capital goods industries
(iv) Limited role of public sector (Explain it)
OR
In India, subsidies are necessary because:
Majority of the farmers are very poor and they will not be able to afford the
required inputs without the subsidies.
To reduce the income inequality between rich and poor farmers and poor farmers
and to achieve the ultimate goal of equity.
So, the government should continue with agriculture subsidies as farming in India
continues to be a risky business.
32 Non-farm activities like animal husbandry, dairying, horticultures, handloom, etc. 4
provide alternative avenues for sustainable livelihood and may raise the level of
income as the risk due to fluctuations in production and market prices is generally
less. In India, agriculture is mainly a seasonal occupation and during off seasons, it
becomes difficult to find employment and stabilize farmer’s income.so the PM has
urged appropriately in the best interest of the farmers of rural India.
33(A) The Great Leap campaign of China as initiated in 1958:- 3
(i) The aim of this campaign was to transform the agrarian economy into a
modern economy through the process of rapid industrialisation.
(ii) Under this program, people were encouraged to set up industries in their
backyard.
(iii) In rural areas, communes were started. Under the commune system, people
collectively cultivated lands.
(B) Liberty indicator may be defined as the measure of the extent of demographic 3
participation in the social and political decision making.
Example:
1. Measures of the extent of the constitutional protection rights given to the
citizens.
2. Extent of the constitutional protection of the independence of the judiciary and
rule of law.
34 (i) Write any three reasons with explanation 3
(a) Patriarchal norms. (b) Urban transition.
(c) Mismatch supply and demand. (d) Unskilled.
(ii) Worker- population ratio is defined as the proportion of population that is actively 3
contributing to the production of goods and services. It is measured by the ratio
between the country’s workforce and its total population. This ratio acts as an
indicator for assessing the employment level in a particular country at any point
of time. Higher the worker-population ratio is the engagement of people in
productive activities and vice-versa.
 Kendriya Vidyalaya Sangthan, Jaipur Region SET-3
Subject: Economics
Marking Scheme
Practice Paper
Class: XII Time: 3:00 Hours Maximum Marks: 80 Marks
Q.NO. ANSWERS (SECTION A – MACRO ECONOMICS) MARKS
Q.1 (B) Statement-II is true and Statement-I is false. 1
Q.2 (C) Assertion is true but Reason is false. 1
Q.3 (C) a-ii, b-iv, c-iii, d-i. 1
Q.4 (B) Lack of double coincidence of wants. 1
Q.5 (C) Credit side of capital account. 1
OR
(d) All of these
Q.6 (C) Assertion is true but Reason is false. 1
Q.7 (B) Statement-II is true and Statement-I is false. 1
Q.8 (D) Assertion is false but Reason is true. 1
OR
(C) Assertion is true but Reason is false.
Q.9 (C) C-iii. 1
Q.10 (D) 288 1
OR
(C) (A) and (B) Both.
Q.11(A) (I) Purchase of books by a stationary shopkeeper is intermediate good because 1+1+1
this purchase for resale.
(II) Sanitizer and Mask purchase by a hospital for precaution from covid-19 is
final good because it purchase for personal use.
(III) Milk purchase by sweet shop to make milk cake is intermediate good
because this is purchase for raw material.

OR
(B) (i) Operating Surplus refers to the income that is received from property and
entrepreneurship.
 OS = Rent and Royalty + Interest + Profit.
(ii) Normal Resident may be an individual or an institution that residing in a country
and whose centre of economic interest also lie in that country.
(iii) Domestic Territory refers to the political territory including with embassies,
military establishment, production platforms in international water, and ship
and aircraft operated in abroad of a country.
Q.12 Yes given statement is true. Through Re-allocation of resources government 3
allocates the resources in various production activities keep in view to balance
the goal of profit maximization and social welfare.
Q.13 Explanation is to be needed the following diagram. 2+2

OR
(B) Given
Y=10000,
Autonomous Consumption = 2000,
MPS = 0.25 (So MPC will be = 0.75)
As we Equilibrium situation will be :AD=AS
(where AS = Y and AD= C+I)
So putting the given values
Y= C+I (where C = Ca+bY)
Ca + bY + I = Y
2000 + (0.75x10000) + I = 10000
9500 + I = 10000
I = 500
Q.14 (A) Distinguish between autonomous and accommodating items of balance of 2
payments.
 Autonomous items Accommodating items
(i) Autonomous items refer to those (i) Accommodating items refer to those
economic transactions that are economic transactions that are
undertaken due to some economic undertaken due to cover deficit or
profit. surplus in BoP.
(ii) Autonomous transactions are (ii) Accommodating trans actions are
independent from state of BoP. dependent on state of BoP.
(iii) Autonomous transactions take (iii) Accommodating transactions take
place on both current and capital place on official reserve account.
account.
(iv)Autonomous items are also (iv) Accommodating items are also
known as “Above the Line items”. known as “Below the Line items”.
(B) Managed floating exchange rate refers to an exchange rate system in which 2
exchange rate determined by demand and supply of foreign currency in foreign
exchange market and controlled by government through intervention time to
time.
Q.15 Explanation is to be needed of any two functions in the following – 2+2
(i) Bank of issuing currency.
(ii) Banker’s Bank.
(iii) Banker of Government.
(iv) Controller of credit. Etc.
Q.16 Three methods of calculating the GDP of a country : 4
Value added Method or product Method: GDP = Value of output –
Intermediate Consumption.
or
GDP = Sale + Change in stock - Intermediate Consumption.
Income Method: GDP = Wage + Rent + Interest + Profit
or
GDP = COE + Rent + Interest + Profit + Contribution in social security schemes
+Mixed income.
Expenditure Method: GDP = PFCE +GFCE + Investment Expenditure + Net
Export.
The value of GDP remains same in each method due to Circular Flow of 2
National income.
 OR
(B)(i) Net Factor Income from Abroad (NFIA) :
As known, NFIA = FIFA – FITA, So-
GNPFC = COE + Rent + Interest + Profit + Dep. + NFIA
GNPFC = COE + Rent + Interest + Profit + (FIFA – FITA)
6150 = 3000 + 800 + 900 + 1300 + (900 - 800) + FIFA – 80
6150 = 6020 + FIFA
FIFA = 130
NFIA = FIFA – FITA
NFIA = 130 – 80
NFIA = 50
(ii) National Income by following data :
NNPFC = GNPFC – Dep.
= 6150 – 100
NNPFC = 6050
National Income = 6050
Q.17 (A) (i) Y= C + I 3
Y= (100+ 0. 8Y) +200
= 300+0.8 Y
Y-0.8 Y= 300
0.2 Y =300
Y= 300/0.2 =₹ 1500 crores.
(b) C= C + 0.8 Y
Substitute the value of Y = 1500
= 100+ 0.8(1500)
= 100 + 1200 = ₹ 1300 crores
Savings = Income (Y)- Consumption (C)
= 1500 - 1300
= ₹ 200 crores.
 (B) Deflationary gap is that situation when Aggregate Demand is lesser than 1
Aggregate Supply corresponding to full employment level.
Two fiscal measures are to control it are:
(i) Decrease in Taxes - To curb the deflationary gap the government may 1
decrease the taxes. This may increase the purchasing power in the hands of the
people which in turn may increase the Aggregate Demand in the economy to
bring it equal to the Aggregate Supply.
(ii) Increase in Government Expenditure- To curb the deflationary gap the 1
government may increase its expenditure. This may increase the purchasing
power in the hands of the people which in turn may increase the Aggregate
Demand in the economy to bring it equal to the Aggregate Supply.
SECTION B – INDIAN ECONOMIC DEVELOPMENT
Q.18 (D) Jawaharlal Nehru is known as architecture of planning in India. 1
Q.19 (A) Both Assertion (A) and Reason (R) are true and reason is the correct 1
explanation of Assertion.
OR

(D) Establishment of Metro in Delhi

Q.20 (A) Statement-I is true and Statement-II is false. 1

Q.21 (C) C-iii 1
Q.22 (C) Assertion is false but Reason is true. 1
OR
(D) Guarding green cover
Q.23 (D) Assertion is true but Reason is false. 1
Q.24 (B) Statement-II is true and Statement-I is false. 1
Q.25 (A) Promotion of Industrialization 1
Q.26 (B) China. 1
Q.27 (A) iv, ii, i, iii 1
Q.28 Indian traditional handicrafts industries in 18th century were well known in 3
the world. But British government destroys these handicrafts industry by using
discriminatory tariff policy. British government allowed tariff free import of
British industries product in to India and at the same time heavy duty was
imposed on the export of Indian handicrafts products. As result British product
started gaining in Indian market and Indian handicrafts loss their market.
OR
 Economic Growth is an increase in the aggregate output of goods and services
in a country in a given period of time. Equity refers to reduction in inequality of
income or wealth, uplifting weaker sections of the society and equal
distribution of economic power. Higher levels of growth and social justice are
two main objectives of India’s economic planning. When these two objectives
are clubbed together, it is called development with social justice.
Q.29 Casual Worker: The workers who are not hired on regular basis and will not get 3
the social security benefits are known as casual workers.
Regular Worker: The workers who are hired by an employer on the regular
basis and will get the social security benefits are known as regular workers.
Q.30 (a) Co-operative Credit Societies are financial entities established on a cooperative 2
basis and, do banking functions with their members only. Customers of
cooperative Societies are also its owners. These societies provide a wide range
of regular banking and financial services to their members only.
(b) Explain the non-institutional sources of rural credit- 2
(i) Money lenders.
(ii) Landlord.
(iii) Agricultural traders.
(iv) Relatives.
OR
(c) Explanation is to be needed that Meena should be considered as a worker
because she is engaged in an economic activity and contributes in GDP.
Q.31 Definition of disguised unemployment 4
Explanation of the any two point of the following-
(i) To development of diversification of agriculture.
(ii) Promotion of public investment in rural areas.
(iii) Industrial development in rural areas.
Any other relevant points.
Q.32 At least four points is required to explain by student on basis of comparative 4
study about all three countries.
Q.33 (i) (a) Lack of demand for Micro, Small and Medium Enterprise products. 2
(b) Lack of credit facilities.
(ii) Huge contributes in the GDP and Indian export. 1
(iii) No, Micro, Small and Medium Enterprise requires less capital than labour. 2
 (iv) Karve Committee. 1
Q.34 Explanation is to be needed of following points related to need and important of 6
Human Capital with concept of Human Capital–
1. Increase in Production.
2. Improve in Quality of life.
3. Increase in Production Participation.
4. Improve in Economic and Social Equality Etc.
OR
(i) Agricultural Marketing: It is the process that involves assembling, storage,
processing, transportation, packaging, grading, and distribution of agricultural
products across the country.
(ii) NABARD: NABARD stands National Bank for Agricultural and Rural
development which was established in 1982. It is the apex body which
coordinates the smooth functioning of different financial institutions working
for expansion of rural credit.
(iii) Agricultural Diversification: Agricultural Diversification refers to the change
in cropping pattern as well as shifting of workforce from agriculture to other
allied activities and non-agriculture sector.