Board Paper of Class 12-Commerce 2022 Economics Delhi(SET 2) - Solutions

General lnstructions:

1. This question paper contains 13 questions.

2. All questions are compulsory. Marks are indicated against each question.

3. This question paper contains 5 questions of 2 marks each, 5 questions of 3 marks each and 3 questions of 5 marks each.

4. 2 marks questions are short-answer type questions and are to be answered in 30-50 words.

5. 3 marks questions are also short-answer type questions and are to be answered in 50-80 Words

6. 5 marks questions are long-answer type questions and are to be answered in 80-120 words.

7. There is no overall choice in the question paper. However, internal choices have been provided in few questions.

The candidates need to attempt only one question from such questions.

8. This question paper contains Case/Source Based question also.

Question 1
'Consumption function curve of an involuntary unemployed workers start from some positive level on Y-axis even at zero level of Income'.
Justify the given statement. VIEW SOLUTION

Question 2
'Health is a yardstick of human well-being'.
Justify the given statement with valid explanation. VIEW SOLUTION

Question 3
"In an economy, the autonomous consumption is ₹100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is ₹300."
Justify the statement with valid calculation.
OR

An Economy is in equilibrium, calculate the Marginal Propensity to Save (MPS) from the following:

(i) National Income (Y) = ₹4,400

(ii) Autonomous Consumption $(\bar{c})$ = ₹1,000

(iii) Investment Expenditure (I) = ₹70

VIEW SOLUTION

Question 4
Distinguish between Factor Cost and Market Price.
OR

Distinguish between Factor Income and Transfer Income. VIEW SOLUTION

Question 5

'Ram is able to get work only for two hours in a day. Rest of the day, he is looking for work.' Is he unemployed ? What kind of job could person like Ram be doing ?

Compare and analyse the sector-wise trends in employment, based on following information:

Trends in Employment (Sector-wise)
Sector	1999-2000	2011-12
Primary sector	60.4	48.9
Secondary sector	15.8	24.3
Tertiary sector	23.8	26.8
Total	100	100

VIEW SOLUTION

Question 6
'Infrastructure facilities boost production.' Do you agree ? Explain. VIEW SOLUTION

Question 7
"Gross Domestic Product (GDP) as an indicator of welfare loses its significance if the distribution of income turns unequal".
Justify the given statement with valid reason.
OR

Giving valid reasons, explain how the following would be treated while estimating domestic income?
(i) Payment made by a Japanese tourist for goods purchased in India.
(ii) Broker's commission on the sale of second hand goods. VIEW SOLUTION

Question 8
Define 'liberty indicator' with the help of an example and state its importance. VIEW SOLUTION

Question 9
"The Government has raised the exemption limit for the payment of Income tax from ₹2 lakh to ₹2.5 lakh."
If the situation of deficient demand is prevailing in the economy, what will be the impact of this action taken by the Government ? VIEW SOLUTION

Question 10
Briefly explain any two similar developmental strategies opted by India and Pakistan for their respective developmental path. VIEW SOLUTION

Question 11
'Investment multiplier and Marginal Propensity to Save are indirectly related to each other.'
Explain with the help of numerical example. VIEW SOLUTION

Question 12

(I) From the following data, calculate the value of compensation of employees (COE) :

S.No.	Items	Amount in (₹ crore)
(i)	Old age pension	1,250
(ii)	Wages and salaries in cash	49,500
(iii)	Rent free accommodation to employees	13,500
(iv)	Employer's contribution to provident fund	8,900
(v)	Payment of life insurance premium by the employees	3,000
(vi)	Contribution to provident fund by employees	35,600

(II) Distinguish between Real Gross Domestic Product (GDP).

Nominal Gross Domestic Product (GDP).

(I) From the following data, calculate the value of operating surplus:

S.No.	Items	Amount in (₹ crore)
(i)	Royalty	10
(ii)	Rent	70
(iii)	Interest	25
(iv)	Net domestic product at factor cost	500
(v)	Profit	50
(vi)	Dividends	20

(II) Distinguish between 'Fixed Investment' and 'Inventory Investment'. VIEW SOLUTION

Question 13
Read the following text carefully and answer question number 13(a) and 13(b) given below:
Green investment and sustainability are priorities in public policy. India has emerged as a global leader at the front of the climate change. India has pledged to seek solutions for the future.
Government schemes and policies such as Swachh Bharat Mission, Pradhan Mantri Awas Yojana, Smart Cities, Deen Dayal Upadhyay Gram Jyoti Yojana among other, all contribute towards achieving sustainable development goals.
The government has contributed to maintain economic growth by introducing and implementing various policies and measures relating to sustainable development, climate change, energy efficiency and air pollution.
Pradhan Mantri Uijwala Yojana Scheme, has actively contributed to cleaner air. It has resulted in drastic reduction of respiratory diseases and ultimately death as per recent medical report.
The Jal Jeevan Mission was launched with the objective of achieving water security. We have seen 68 per cent decline in the size of population of various animal species and amphibian over the last 60 years. The issue of green house gases and rising temperature of the earth are a global concern. India is one of those countries that will be affected by the over 2 degree celsius rise in global temperature.
'India has already taken a lot of steps in the area of innovation and development of different production methodologies which are environmentally friendly in the long run.'
Source: The Economic Times; Oct. 27, 2021
(a) State and discuss any two steps involved in attaining sustainable development in India.
(b) From the given text, state any two factors which challenged the carrying capacity of the environment. VIEW SOLUTION

(i)	National Income (Y)	=	₹4,400
(ii)	Autonomous Consumption $(\bar{c})$	=	₹1,000
(iii)	Investment Expenditure (I)	=	₹70