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Questions and Answers
Which of the following reflects a deficit in the current account?
Which of the following reflects a deficit in the current account?
- Receipts × Payments
- Receipts = Payments
- Receipts > Payments
- Receipts < Payments (correct)
Into how many accounts has the RBI divided the balance of payments?
Into how many accounts has the RBI divided the balance of payments?
- Three
- Two (correct)
- Four
- Five
What is the value of planned consumption referred to as?
What is the value of planned consumption referred to as?
- Induced investment
- Autonomous investment
- Expected investment (correct)
- Actual investment
If the marginal propensity to consume (MPC) is 0.8, what is the value of the investment multiplier?
If the marginal propensity to consume (MPC) is 0.8, what is the value of the investment multiplier?
Which of the following is an example of a 'merit good'?
Which of the following is an example of a 'merit good'?
What is the primary characteristic of a 'public good'?
What is the primary characteristic of a 'public good'?
Which tax is generally considered regressive?
Which tax is generally considered regressive?
In the context of government budgets, what does 'fiscal deficit' refer to?
In the context of government budgets, what does 'fiscal deficit' refer to?
What condition defines a current account deficit?
What condition defines a current account deficit?
Into how many accounts are balance of payments transactions divided by the RBI?
Into how many accounts are balance of payments transactions divided by the RBI?
Which term best describes the value of planned consumption?
Which term best describes the value of planned consumption?
Which formula correctly expresses the marginal propensity to save (MPS)? (Note: Delta = ∆)
Which formula correctly expresses the marginal propensity to save (MPS)? (Note: Delta = ∆)
What is generally considered the most important determinant of consumption demand?
What is generally considered the most important determinant of consumption demand?
Which of the following represents saving per unit?
Which of the following represents saving per unit?
If a country's receipts are significantly less than its payments, which economic situation is the country most likely facing?
If a country's receipts are significantly less than its payments, which economic situation is the country most likely facing?
Suppose a country's net income increases by $1,000,000 and its total savings increase by $200,000. What is the marginal propensity to save (MPS)?
Suppose a country's net income increases by $1,000,000 and its total savings increase by $200,000. What is the marginal propensity to save (MPS)?
Flashcards
Current Account Deficit
Current Account Deficit
Occurs when a country's payments for imports, services, and transfers exceed its receipts from exports, services, and transfers.
Balance of Payment Accounts (RBI)
Balance of Payment Accounts (RBI)
The RBI divides balance of payment transactions into two main accounts to track the flow of funds.
Ex Ante Consumption
Ex Ante Consumption
Planned or intended consumption expenditure in an economy during a specific period.
Marginal Propensity to Save (MPS)
Marginal Propensity to Save (MPS)
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Net Income
Net Income
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Average Propensity to Save (APS)
Average Propensity to Save (APS)
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Balance of Payments Accounts
Balance of Payments Accounts
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Planned Consumption Value
Planned Consumption Value
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Autonomous Investment
Autonomous Investment
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Multiplier Effect
Multiplier Effect
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Aggregate Demand
Aggregate Demand
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Monetary Policy Definition
Monetary Policy Definition
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Fiscal Policy
Fiscal Policy
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Study Notes
- This is a sample question paper for Economics for the Higher Secondary Examination in 2025.
- The paper is available in both Hindi and English versions.
- The total time allocated is 3 hours.
- The maximum marks are 80.
- The paper contains 23 questions in total, printed across 12 pages.
- All questions are compulsory.
- There are internal options within questions 6 to 23.
Question Breakdown
- Questions 1 to 5 are objective type, totaling 32 marks (1 mark each).
- Questions 6 to 15 carry 2 marks each, requiring answers in approximately 30 words.
- Questions 16 to 19 are worth 3 marks each, with answers around 75 words.
- Questions 20 to 23 carry 4 marks each, needing answers of about 120 words.
- Neat, labeled diagrams should be drawn wherever necessary.
Objective Questions
- Current account deficit occurs when receipts are less than payments.
- The RBI divides balance of payment transactions into accounts. Two accounts
- The formula for marginal propensity to save (MPS) is ΔS/ΔY.
- The most important determinant of consumption demand is net income.
- APS represents saving per unit.
Fill in the Blanks
- The slope of the indifference curve must be defined
- The elasticity of supply in the equation is calculated by: es= (20/30)x(800/200)
True/False
- Total fixed cost per unit of output equals average cost Marginal Revenue Product(L) = Marginal Cost × Marginal Product(L)
Matching Pairs
- Gross Domestic Product matches with GDP – Depreciation
- Gross National Product matches with NDP + Depreciation
- Net Domestic Product matches with Gross Investment – Depreciation
- Net Investment matches with GDP + NFIA
- Devaluation matches with less value of currency.
- Fiscal Deficit Total Expenditure – (Revenue receipts + Non-debt creating capital receipts)
One Sentence Answers
- In perfect competition, the demand curve for a firm is horizontal, indicating that the firm is a price taker.
- The marginal utility will be zero when Total utility is constant
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