CBSE 2025, Set 1 Solutions
CBSE Economics (2025)

Study the following image carefully:\n\n Identify, the trade practice that has successfully replaced foreign goods with domestic production.

From the terms given below in Column-I and Column-II, choose the correct pair of statements:\n\n| Column-I | Column-II |\n|---|---|\n| (i) Subsidies | (a) Maximum quantity of goods that can be imported |\n| (ii) Land ceiling | (b) Element of IPR 1956 |\n| (iii) Small Scale Industries | (c) Land to the tiller |\n| (iv) Modernisation as a goal of five year plan | (d) Change in social outlook |

Read the following statements carefully:\n\nStatement 1: The government may reduce the repo rate, to control deflationary gap prevailing in the economy.\nStatement 2: The government may reduce the deflationary gap, by selling off government securities (G-Sec) in the open market.\n\nIn the light of the given statements, choose the correct option from the following:

To arrive at the value of Gross Value Added at Factor Cost ($GVA_{FC}$), ________ must be ________ to/from Gross Value Added at Market Price ($GVA_{MP}$).\n(Choose the correct option to fill in the blanks)

Read the following statements carefully:\n\nStatement 1: Public goods are those goods for which the payments are made by all the entities in the country.\nStatement 2: Private goods are those goods which are provided by the government of a country at subsidised rates.\n\nIn the light of the given statements, choose the correct option from the following:

Under the ________ Exchange Rate System, the Central Bank can control the foreign exchange rate in a range bound manner.\n(Choose the correct option to fill in the blank)

Read the following statements - Assertion (A) and Reason (R). Choose the correct alternative from the options given below:\n\nAssertion (A): Direct taxes are imposed on income/profits of individuals/companies.\nReason (R): The burden of payment of direct taxes cannot be shifted to any other entity.

Under the Keynesian theory, 'Reference Line' is a straight line passing through the origin drawn at an angle of ________.\n(Choose the correct option to fill in the blank)

Read the following statements carefully:\n\nStatement 1: Marginal Propensity to Consume (MPC) refers to the consumption per unit of income.\nStatement 2: As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income.\n\nIn the light of the given statements, choose the correct option from the following:

The main objective of measuring the primary deficit is to highlight present ________.\n(Choose the correct option to fill in the blank)

Read the following statements carefully:\n\nStatement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.\nStatement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.\n\nIn the light of the given statements, choose the correct option from the following:

In a two-sector economy, the Aggregate Demand can be determined by adding ________ and ________.\n(Choose the correct option to fill in the blanks)

(a) Explain any two precautions pertaining to the Expenditure Method of estimation of National Income in a country.

"Taxation is an effective tool to reduce the inequalities of income."\nJustify the given statement with valid reasons.

(a) Elaborate any two components of the Capital Account under the Balance of Payments Account.

(b) Distinguish between Autonomous transactions and Accommodating transactions.

Assuming for a hypothetical economy:\n(i) Autonomous Consumption Expenditure $(\overline{c})$ = ₹ 250 crore\n(ii) Marginal Propensity to Save (MPS) = 0.2\n(iii) Autonomous Investments $(I_0)$ = ₹ 200 crore\n\nEstimate the Break-even level of Income and Equilibrium level of Income, on the basis of information given above.

Read the following text carefully:\n\nAccording to a report issued by a research organisation, there is a sharp decline in the overall demand in the economy, particularly in the private consumption segment. This dip in the macro economic variables, highlights the urgent need for strategic actions to stimulate economic activities.\n\nOn the basis of the given text and common understanding, explain the measure which the government may take to solve the indicated problem.

(a) (i) Suppose there are only three firms in an imaginary economy, viz. X, Y and Z. During a year, the following transactions took place in the economy:\n(I) Firm X sold goods worth ₹ 20,000 to Firm Y and ₹ 12,000 to Firm Z.\n(II) Firm Y sold goods worth ₹ 11,000 to Firm X and ₹ 35,000 to Firm Z.\n(III) Firm Z sold goods worth ₹ 57,000 to households for final consumption.\n\nOn the basis of the given transactions, calculate the value of Gross Domestic Product at Market Price ($GDP_{MP}$) in the economy.

(a) (ii) Elaborate the likely impact of construction of two new Express Highways on the Gross Domestic Product (GDP) and Welfare in an economy.

(b) (i) On the basis of the following data, estimate the value of National Income ($NNP_{FC}$):\n\n| S.No. | Items | Amount (in crore) |\n|---|---|---|\n| (i) | Household Consumption Expenditure | 800 |\n| (ii) | Gross Business Fixed Capital Formation | 150 |\n| (iii) | Gross Residential Construction Investment | 120 |\n| (iv) | Government Final Consumption Expenditure | 270 |\n| (v) | Excess of Imports over Exports | 20 |\n| (vi) | Inventory Investments | 50 |\n| (vii) | Gross Public Investments | 130 |\n| (viii) | Net Indirect Taxes | 20 |\n| (ix) | Net Factor Income from Abroad | (-) 25 |\n| (x) | Consumption of Fixed Capital | 40 |

(b) (ii) "All producer goods are essentially capital goods."\nDefend or refute the given statement, with the help of a suitable example.

(a) Elaborate the process of Credit Creation using a suitable numerical example.

(b) Read the following text carefully:\n"This function of money provides different items to be evaluated against a common standard. It allows comparison of prices and keeping financial records."\n\n(i) On the basis of the given text, identify the indicated function of money.\n(ii) List any other two functions of money.

Read the following statements carefully:\n\nStatement 1: The British policies were accountable for commercialisation of Indian agriculture.\nStatement 2: In the larger interest of Indians, the British rulers focused on the infrastructural growth of India.\n\nIn the light of the given statements, choose the correct option from the following:

Read the following statements - Assertion (A) and Reason (R).\nChoose the correct alternative from the options given below:\n\nAssertion (A): Information plays a crucial role in judicious decision-making about investing in human capital.\nReason (R): Individuals invest to acquire information about the labour market and other areas such as education and healthcare.

Identify, which of the following does not indicate the similarities in the policies of India and Pakistan in the post 1947 period.

Identify, which of the following statements is incorrect about the Rural Banking system in India.\n(Choose the correct option)

In the post-independence era, the policy makers of India pushed for 'self-reliance' for the first ________ Five Year Plans.\n(Choose the correct option to fill in the blank)

Production of diverse varieties of crops rather than one specialized crop is known as diversification of ________.\n(Choose the correct option to fill in the blank)

Identify, which of the following statements is incorrect about the functions of environment.\n(Choose the correct option)

Read the following statements carefully:\n\nStatement 1: The Food Corporation of India maintains buffer stocks of wheat and rice as a measure to improve market mechanism.\nStatement 2: Minimum Support Price (MSP) is imposed by the government to safeguard the interest of farmers.\n\nIn the light of the given statements, choose the correct option from the following:

Suppose an economy is experiencing a situation of rise in Real Gross Domestic Product (GDP), without any corresponding rise in the employment opportunities.\nIn economic parlance, such a situation is termed as ________ growth.\n(Choose the correct option to fill in the blank)

Read the following statements - Assertion (A) and Reason (R). Choose the correct alternative from the options given below :\n\nAssertion (A): Excessive regulation of permit license raj prevented certain private firms from becoming more efficient.\nReason (R): Private sector wasted a significant time in obtaining licenses rather than enhancing product quality and international competitiveness.

Elaborate the economic reforms in agriculture sector undertaken by China.

(a) "Under the British rule, India underwent systematic economic exploitation with its resources and wealth being diverted to Britain."\nJustify the given statement with valid explanation.

(b) Appraise the Navratan policy adopted by the Government of India in the reforms of 1991.

(a) (i) Distinguish between human capital and physical capital.\n(ii) Describe 'LPG' and 'Gobar Gas' as strategies used to achieve sustainable development in rural areas.

(b) (i) Critically appraise the micro-credit programmes in rural India.\n(ii) State the meaning of sustainable development.

Read the given text carefully and answer the following questions:\n\nIn response to the problem of rapidly rising population, China introduced the 'One Child Policy'. The policy restricted couples to having only one child. This policy helped China to limit the population growth.\nThis policy led to significant consequences, such as an increase ageing population, gender imbalances due to male child preference, and social challenges for single children, etc.\nThis policy was relaxed in 2015, allowing all couples to have two children and further relaxed to three children in 2021.\nOverall, while the One Child Policy achieved its primary goal of controlling population growth, it also created a complex set of demographic and social challenges that China continues to address today.\n\n(a) Explain the consequences of implementation of the One Child Policy in China.\n(b) State any one reason for the implementation of the One Child Policy in China.

State and elaborate whether the following statements are true/false, with valid arguments:\n(a) In the Indian rural landscape, agricultural diversification has emerged as a solution for a lot of farmers' problems.\n(b) Informalisation of workforce in India, has increased various concerns on the front of employment generation among the youth of the country.

(a) (i) Discuss briefly, causes and consequences of tax reforms taken by the Indian Government during economic reforms.\n(ii) Distinguish between Multilateral Trade and Bilateral Trade.

(b) (i) "Import substitution policy, if not applied carefully, can prove to be a double-edged sword for any economy."\nDo you agree with the given statement? Justify your answer with valid arguments.\n\n(ii) Distinguish between stabilising measures and structural measures, as taken up by the Government of India in 1991.

Read the following text carefully:\n\nIndian labour market indicators have improved in the last six years, as per the Periodic Labour Force Survey Data. The unemployment rate has fallen to 3.2% in 2022-23. Rising youth and female participation in the workforce present an opportunity to tap the demographic and gender dividend. The factory employment data exhibits the bounce back of the organised manufacturing sector in FY 2022-23 with rise in employment and the upscaling of factories.\nThe net payroll additions under EPFO have more than doubled in the past five years, signalling healthy growth in formal employment.\nTo generate and sustain quality employment, agro-processing and care economy are two promising candidates.\n\nOn the basis of the given text and common understanding, answer the following questions :\n(a) State any one significance of rising youth and female participation in the Indian workforce.\n(b) Identify any two sectors which may be highlighted as promising for generating quality employment in India.\n(c) Elaborate the meaning of disguised unemployment with the help of a suitable example.

(b) On the basis of the following hypothetical data:\n\n| Year | Nominal GDP (in crore) | Nominal GDP (adjusted to base year prices) (in crore) |\n|---|---|---|\n| 2020-21 | 3,000 | 5,000 |\n| 2022-23 | 4,000 | 6,000 |\n\nCalculate the percentage change in Real Gross Domestic Product (GDP) in the year 2022-23 using 2020-21 as the base year.

In the context of Current Account transactions of Balance of Payment, identify the incorrect statement from the following:

From the items given in Column-I and Column-II, choose the correct pair.\n\n| Column-I | Column-II |\n|---|---|\n| (a) Income from Property | (i) Old age pension |\n| (b) Income from Entrepreneurship | (ii) Profit |\n| (c) Mixed Income | (iii) Rent free accommodation from an employer |\n| (d) Compensation of Employees | (iv) Interest from capital |

Read the following statements carefully:\n\nStatement-1 : Managed floating exchange rate system is an amalgamation of fixed and flexible exchange rate system.\nStatement-2 : Managed floating exchange rate system is also known as 'hybrid system'.\n\nIn the light of the given statements, choose the correct option from the following:

'Irfaan (a student) borrows ₹ 80,000 to finance his college fee. He plans to begin repaying the loan six months after his graduation, making payments over a span of ten years.'\n\nBased on above text, identify the indicated function of money.

Suppose, the saving curve of an economy makes an intercept at a negative value of 50 crores. In the economy, 20% of an increase in income is saved.\n\nIn the light of above context, identify the value of investment multiplier ($K$).

Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below :\n\nAssertion (A): Public goods are those goods that are collectively consumed by the public.\nReason (R): Public goods are excludable and rivalrous in nature.

Suppose, the value of Average Propensity to Consume (APC) is 0.8 and National Income is ₹ 4,000 crores, the value of saving would be ________ crores.

In the context of the Commercial Banks, which of the following statements are correct?\n\n(I) Deposits received are liabilities for Commercial Banks.\n(II) They are creator of credit in the economy.\n(III) They accept deposits from general public.\n(IV) They accept deposits on behalf of Reserve Bank of India.

If a country exports goods worth of ₹ 600 crores and imports goods worth of ₹ 450 crores, the value of Balance of Trade of the country would be ________ of ________ crores.

From the set of terms given in Column-I and Column-II, choose the correct pair:\n\n| Column-I | Column-II |\n|---|---|\n| (a) Non-tax Revenue | (i) Goods and Services Tax |\n| (b) Indirect Tax | (ii) Free-rider |\n| (c) Capital expenditure | (iii) Borrowings |\n| (d) Private goods | (iv) Rivalrous in nature |

Calculate the value of Net Value Added at Factor Cost ($NVA_{FC}$):\n\n| S. No. | Particulars | Amount (In crore) |\n|---|---|---|\n| (i) | Operating Surplus | 3,740 |\n| (ii) | Increase in unsold stock | 600 |\n| (iii) | Sales | 10,625 |\n| (iv) | Purchase of raw materials | 2,625 |\n| (v) | Consumption of fixed capital | 500 |\n| (vi) | Subsidies | 400 |\n| (vii) | Indirect taxes | 1,200 |

Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports ($X-M$).

'The Government had launched Incredible India Campaign to promote tourism in various parts of the country.'\n\nElaborate the impact of this campaign on foreign exchange reserves and Balance of Payment of India.

'Under the Ayushmaan Bharat Scheme, the government provides free medical treatment to the poorer section of the society.'\n\nIdentify and explain the nature of budget expenditure and its objective, indicated in the given statement.

Suppose in an economy, primary deposits are ₹ 500, if the Reserve Ratio is 25%. Estimate the total deposits created and the total lending by the banking system.

In an economy; $C = 200 + 0.75Y$ (where C is consumption expenditure and Y is National Income).\nInvestment expenditure is ₹ 4,000 Crore.\nCalculate the following:\n(i) Equilibrium level of income.\n(ii) Total consumption expenditure at equilibrium income level.

Explain the adjustment mechanism in case ex-ante savings are greater than ex-ante investments.

Read the following text carefully:\n\nUnion Food and Consumer Affairs Minister said that the Central Government has taken many proactive steps in the past few years to control retail prices of food items. He said that the government aims to keep inflation under control without compromising the country's economic growth. Retail inflation inched up to a three-month high of 5.55% in November 2023 driven by higher food prices. Inflation has been declining since August 2023, when it touched 6.83%. 140 new price monitoring centres had been set up by the Central Government to keep a close watch on wholesale and retail prices of essential commodities. The Government has banned the export of many food items like wheat, broken rice, non-basmati white rice, onions etc. It has also reduced import duties on edible oils and pulses to boost domestic supply and control price rise.\n\nOn the basis of the given text and common understanding, answer the following questions:\n(a) Mention the number of new price monitoring centres set up by government.\n(b) State any two proactive measures taken by government to boost domestic supply and reduction in prices.\n(c) Explain any one monetary measure used to control inflation.

(a) (i) Explain any two precautions to be adopted while estimating National Income by Expenditure method.\n(ii) "Higher Gross Domestic Product (GDP) always means higher per capita availability of goods in the economy." Defend or refute the given statement as the index of welfare of the people of that country.

(b) (i) Distinguish between Stock and flow variables, using suitable examples.\n(ii) Explain the components of 'Profit' as per Income Method of estimating National Income ($NNP_{FC}$).

________ sector was the primary focus of the Great Leap Forward in China. (Fill up the blank with correct option)

Study the following picture:\n\n\n\nIdentify and select, the recent phenomenon in which demand for resources surpasses their supply.

Read the following statements carefully:\n\nStatement-1: Hired workers may be regular salaried workers or casual workers.\nStatement-2: Regular salaried employment is a major source of employment in rural areas in India.\n\nIn the light of the given statements, choose the correct option from the following:

'It is short-term unemployment occurring, as people transit between jobs.'\nOn the basis of given definition, identify the type of unemployment indicated.

Read the following statements carefully: Assertion (A) and Reason (R). Choose the correct option from those given below:\n\nAssertion (A): Prior to economic reforms, public investment in social infrastructure by China resulted in better Human Development Indicators (HDI).\nReason (R): China is ahead of India and Pakistan on many Human Development Indicators (HDI).

From the following terms given in Column-I, match the correct pair of meaning given in Column-II:\n\n| Column-I | Column-II |\n|---|---|\n| (a) Human Development Indicator | (i) Rule of Law |\n| (b) Demographic Indicator | (ii) Constitutional Protection |\n| (c) Special Economic Zone | (iii) Generation of additional economic activities |\n| (d) Commune System | (iv) Collective industrialisation |

Read the following statements carefully: Assertion (A) and Reason (R). Choose the correct option from those given below:\n\nAssertion (A): Human capital formation increases the rate of participation of population to economic activities and leads to economic growth.\nReason (R): Rate of participation of people refers to the percentage of people engaged in production process of a country.

India is NOT a member of which of the following regional/global economic grouping?

'Cooperatives have received a setback during the recent past.'\nJustify the given statement with valid explanation.

Explain the reasons behind less number of regular salaried employees in rural areas as compared to urban areas.

Trace the relationship between Human capital and Economic growth.

(a) "Bio-pesticides help to reduce the ill-impacts of green revolution on soil and water bodies while promoting sustainable development." Justify the given statement with valid explanation.\n(b) Define Absorptive capacity.

Describe briefly a rationale behind choosing 'Self-reliance' as a planning objective for the Indian economy.

Explain how, Goods and Services Tax (GST) has simplified the multiplicity of taxes on goods and services.

Describe the path of developmental initiatives taken by Pakistan for its economic development.

Giving valid reasons, state whether the following statements are true or false.\n(i) India followed unbalanced growth during the colonial rule.\n(ii) The economic policies implemented in India between 1950 - 1990's sought to promote regional equality.\n(iii) India has become a favourable destination of outsourcing, in post 1991 period.

(b) (i) Distinguish between:\n(1) Tariff and non-tariff barriers\n(2) Bilateral and multilateral trade\n(ii) "Small-Scale Industries require a shield against large scale industries." In the light of given statement, elaborate the steps initiated by the government in this direction.

Read the following text carefully:\n\nAgro-startups and rural enterprises are becoming increasingly vital for rural development in India. They address the critical challenges faced by rural sector in India. These ventures bring in technological innovations such as precision farming, IT-based monitoring system and data-driven decision making tools that enhance productivity and resource efficiency. By streamlining supply chains and creating direct market linkages, they ensure better pricing for farmers and reduce dependency on traditional intermediaries. Such enterprises contribute actively to employment generation in the rural areas. The government has demonstrated a continuous policy and financial support for agri-startups and entrepreneurs through various programs like RKVY-RAFTAAR, the Agri-infrastructure fund and Agri-SURE.\n\nOn the basis of given text and common understanding, answer the following questions:\n(a) Explain, how agro-startups address the critical challenges faced by the agricultural sector.\n(b) Comment on the role of government in supporting agro-startups and entrepreneurs in India.

The monetary policy is formulated by the ________ in the Indian economy.\n(Choose the correct option to fill up the blank)

Identify, which of the following is not to be considered while estimating Revenue Deficit of a country.\n(Choose the correct option)

In the Keynesian Economics, ________ starts from the origin and is always drawn at an angle of $45^{\circ}$.\n(Choose the correct option to fill up the blank)

Read the following statements: Assertion (A) and Reason (R). Choose one of the correct options given below :\n\nAssertion (A): In case of public goods no one can be excluded from enjoying the benefits.\nReason (R): Public goods are non-rivalrous and non-excludable in nature.

Value Addition = ________ - Value of Intermediate Consumption.\n(Choose the correct option(s) to complete the stated formula.)\n\n(i) Domestic sales\n(ii) Sales + change in stock\n(iii) Value of output\n(iv) (Number of units produced) $\times$ (Price per unit)

Suppose for an economy, autonomous consumption stands as 100 crore and total consumption is 130 crores. The value of induced consumption would be ________ crore.\n(Choose the correct option to fill up the blank)

As the Banker to the Bank, Reserve Bank of India performs all functions except ________.\n(Choose the correct option to fill up the blank)

Read the following statements: Assertion (A) and Reason (R). Choose one of the correct options given below:\n\nAssertion (A): If the value of Marginal Propensity to Save is 0.5, Marginal Propensity to Consume will be equal to Marginal Propensity to Save.\nReason (R): Sum of Marginal Propensity to Consume and Marginal Propensity to Save always equals to unity.

The budget under, which the government may spend an amount equal to the revenue it collects is referred as ________ Budget.\n(Choose the correct option to fill up the blank)

To arrive at the value of equilibrium level of income, there must exists an equality between ex-ante ________ and ex-ante ________\n(Choose the correct option to fill up the blank)\n\n(i) Aggregate Demand, Aggregate Supply\n(ii) Aggregate Demand, Savings\n(iii) Aggregate Demand, Investment\n(iv) Savings, Investment

State the meaning and significance of Gross Domestic Product (GDP) deflator.

(a) "The government generally levies higher Goods and Services Tax (GST) on socially undesirable products like cigarettes, tobacco, liquor etc."\n\nIdentify and explain the indicated government budget objective in the above statement.

(b) Two friends Ramesh (a software engineer) and Pihu (a bakery owner) are discussing their contribution to the nation's economy through tax payments. Ramesh earns ₹ 8,00,000 per year, which makes him liable to pay income tax. Pihu pays Goods and Service Tax (GST) on the sale of cakes and pastries.\n\nOn the basis of the given text, identify whether Ramesh is paying a direct tax or an indirect tax. Explain valid differences between two types of taxes.

(A) On the basis of the given image, explain the steps which may be taken by the Government of India to control the indicated macroeconomic issue.\n\n\n\n(B) Define 'Open Market Operations'.

(a) Justify the following statements with valid arguments:\n(i) Money supply in an economy is an example of a stock variable.\n(ii) The Central Bank provides several Banking services to the government.

(b) Assuming for a hypothetical economy, Central Bank increases the Reserve Ratio from 20% to 25% and the total primary deposits stand at ₹ 1,000.\nExplain the effect of rise in Reserve Ratio on credit creation by commercial banks.

Suppose for an economy, government proposes project for construction of expressways with an incremental investment of ₹ 1200 crore. Assuming, 80% of increase in income is spent on consumption.\n\nEstimate the following on the basis of above information:\n(a) Change in income ($\Delta Y$)\n(b) Change in consumption ($\Delta C$).

(a) (i) On the basis of the data given below, estimate the value of National Income ($NNP_{FC}$)\n\n| S. No. | Items | Amount (in crore) |\n|---|---|---|\n| (1) | Private final consumption expenditure | 2,000 |\n| (2) | Government final consumption expenditure | 1,500 |\n| (3) | Gross domestic fixed capital formation | 1,000 |\n| (4) | Addition to stock | 400 |\n| (5) | Consumption of fixed capital | 50 |\n| (6) | Net factor income from abroad | 100 |\n| (7) | Net indirect Taxes | 200 |\n| (8) | Net Exports | 700 |\n\n(ii) Differentiate between Real flow and Money flow.

(b) (i) Gauhar, has recently completed her fashion designing studies and started a boutique. To produce dresses for sale, she purchased various materials, including a sewing machine, fabric, buttons and thread. These items are essential for producing the dresses.\nClassify the material purchased by Gauhar as Final or Intermediate goods, giving valid reasons in support of the classifications.\n\n(ii) "National Income is always equal to Domestic income in a two sector economy."\nDefend or refute the given statement with valid reasons.

Read the following text carefully:\n\nBalance of Payments (BoP) systematically summarise, the economic transactions of an economy with the rest of the world, over a given period of time. The BoP can be broadly divided into two accounts namely: current account, capital account. The current account measures the transfer of goods, services, income and transfers between an economy and rest of the world. The current account may be sub-divided into merchandise account and invisible account. Merchandise account consists of transactions related to export and import of goods.\nIn the invisible account, there are three broad categories: Non-factor services such as travel, transportation, insurance etc., Transfer which do not involve any value in exchange., Income which includes compensation of employees and investment income.\nThe capital account reflects the net changes in financial claims on rest of the world. The capital account can be broadly broken up into two categories: Non-debt flows such as direct and portfolio investments. Debt flows such as external assistance, commercial borrowings, non-resident deposits etc.\nThe sum of the two accounts indicates the overall balance, which could be either be in surplus or deficit. The movement in overall balance is reflected in changes in international reserves of the country.\n\nOn the basis of the given text and common understanding, answer the following questions :\n(a) Define Balance of Payments.\n(b) Differentiate between the two accounts of Balance of Payments.\n(c) Give the meaning of Balance of Payments deficit with formula.

________ of agriculture refers to production of crops for sale in the open market rather than for self consumption purpose.\n(Choose the correct option to fill up the blank)

Read the following statements carefully:\n\nStatement 1: In 1978, commune lands were divided into small plots to the individual households for cultivation.\nStatement 2: Under commune system, professionals were sent to work and learn from the country side.\n\nIn the light of the given statements, choose the correct option from the following:

Identify, the options that emphasize the role of information and technology.\n(i) Achieving sustainable development\n(ii) Attainment of food security\n(iii) Disseminates information regarding emerging technologies.\n\nOptions:

Read the following statements: Assertion (A) and Reason (R). Choose one of the correct options given below:\n\nAssertion (A): Under the land reforms, Indian government fixed the minimum land size which could be owned by an individual.\nReason (R): The purpose of land ceiling was to avoid the concentration of land ownership in a few hands.

________ are the people who operate their own farms / enterprises.\n(Choose the correct option to fill up the blank)

Agricultural marketing is a process that involves the ________ of agricultural commodities.\n(Choose the correct option to fill up the blank)\n\n(i) Privatisation\n(ii) Processing\n(iii) Assembling\n(iv) Grading

________ is based on the idea that education and health are integral to human well-being.\n(Choose the correct option to fill up the blank)

In recent years, all the adults are encouraged to open bank accounts as a part of a scheme known as ________.\n(Choose the correct option to fill up the blank)

The given chart indicates the problem of ________ in the Indian Economy, post 1990-92.\n(Choose the correct option to fill up the blank)\n\n

Read the following statements carefully:\n\nStatement 1: Environmental concerns of waste generation and pollution have become critical, due to reversal of demand and supply relationship.\nStatement 2: Environmental crisis happens, when the rate of resource extraction is less than that of regeneration of resource.\n\nIn the light of the given statements, choose the correct option from the following:

(a) Define liberty indicator.\n(b) State any two liberty indicators.

Medhya and Danish both had their own farms. Medhya invested in a few agricultural courses, learnt modern farming techniques and trained her labourers on best practices related to soil fertility, crop management, pest control etc.\nWhereas, Danish invested heavily in, by purchasing advanced farming machinery, irrigation systems, and high quality seeds.\n\nDo you agree that, Danish had made investment in human capital? Give valid reason in support of your answer.

"Expenditure on preventive medicine, curative medicine and social medicine helps in building human capital and economic development."\n\nDo you agree with the given statement? Give valid arguments in support of your answer.

"The British introduced many infrastructural development project, which was largely driven by its own self-serving interest".\n\nBriefly explain any two main causes behind the infrastructural development undertaken by the colonial government.

"In the recent times through various schemes and policies, the Government of India has taken vital initiatives to generate employment directly / indirectly."\n\nJustify the statement giving valid arguments.

"Micro credit programmes have been very helpful in supporting rural development and improving livelihoods in India."\n\nDo you agree with the given statement? Give valid reasons in support of your answer.

On the basis of the given data, compare and analyse the Distribution of workforce and its contribution to Gross Value added in India and China.\n\nSectoral Share of Employment and GVA (%) in 2018-2019\n\n| Sector | Contribution to GVA (India) | Contribution to GVA (China) | Contribution to GVA (Pakistan) | Distribution of Workforce (India) | Distribution of Workforce (China) | Distribution of Workforce (Pakistan) |\n|---|---|---|---|---|---|---|\n| Agriculture | 16 | 7 | 24 | 43 | 26 | 41 |\n| Industry | 30 | 41 | 19 | 25 | 28 | 24 |\n| Services | 54 | 52 | 57 | 32 | 46 | 35 |\n| Total | 100 | 100 | 100 | 100 | 100 | 100 |

(a) (i) "To promote green revolution, the Indian government provided fertilizer subsidies to the farmers."\nBriefly explain any two arguments in favour of such subsidies.\n\n(ii) As per a news report dated, 8th Oct. 2021, the Government of India sold its entire 100% stake in Air India. Tata sons, the original founder of Air India won the bid and purchased the airline for ₹ 18,000 crore.\n(1) Identify the step taken by the Government of India.\n(2) State any two ways in which identified step can be executed by the government.

(b) (i) "After 1991, reforms in external sector led to an increase in foreign exchange inflows".\nJustify the given statement with valid argument.\n\n(ii) "During the planning period, public sector was given a dominant role in Indian Economy."\nJustify the rationale behind this step taken by the Government of India.

Read the following text carefully:\n\nClimate change and sustainability of environment are two pressing issues that have captured global attention. In recent years, the world has witnessed a surge in extreme weather events including severe droughts, cloud bursts, floods, land slides, receding coastlines and the alarming melting of arctic ice and Himalayan Glaciers. Wildfires have become more frequent and intense.\nIn this context, sustainable agriculture emerges as a crucial solution. This refers to those farming practices that meet today's requirements while preserving resources for the future generation. This means adopting methods that protect the environment, reduce dependence on chemical inputs, efficiently using water and land and ensuring socio-economic equity for farmers.\nOn one hand sustainable agricultural practices are necessary, on the other, they are often more expensive to implement compared to conventional methods. Sustainable practices like organic farming, climate smart technologies, modern irrigation system may seem costly upfront, but they offer long-term benefits by improving productivity, and environmental stewardship. Without accessible and affordable financing options, the much needed shift to sustainable farming practices will remain a distant dream for many.\nTherefore, sustainable finance should not only promote eco-friendly practices but also ensure that financial resources are available to the farmers who need it.\n\nOn the basis of the given text and common understanding, answer the following questions:\n(a) Define Sustainable Agriculture.\n(b) "Sustainable Agriculture practices, like organic farming may seem costly initially, but offer long term benefits."\nDiscuss the long term benefits these practices can offer.\n(c) State any two strategies to promote sustainable development in a developing country like India.