Exam Instructions

• The maximum marks for the exam is 80.
• The time allotted for the exam is three hours.
• The reading time is an additional fifteen minutes.
• Candidates are allowed fifteen minutes for reading the question paper
• Candidates must not start writing during reading time.
• The question paper has 7 pages.
• The question paper is divided into three sections and has 13 questions.
• All questions are compulsory and must be answered.
• Section A has sixteen subparts with very short answer questions, each carrying 1 mark.
• Only one option should be written as the answer for Multiple Choice Questions in Section A.
• Section B has eight short answer questions, each carrying 4 marks.
• Section C has four long answer questions, each carrying 8 marks.
• Internal choices are provided in two questions in Section B and in one question in Section C.
• The intended marks for questions are given in brackets [].

Question 1 (Section A)

• Mr. Ramchandran buys a gold necklace for his daughter's marriage even at a high price due to it being a conspicuous good.
• If Mr. Vivaan's income increases, his budget line of two goods X and Y will shift rightward
• The image shows inelastic demand.
• Revenue receipts in the government's budget keep liability and assets unaltered.
• Intensified tensions in the Middle East could significantly affect global crude oil prices, with potential consequences for emerging markets like India and the foreign exchange of the Indian economy will result in the outflow of US Dollars from India will rise.
• The action taken by the Central Bank is expected to decrease the inflation in the economy.
• In an illustration where Central Government buy products produced from the indigenous defence manufacturing industry is Monopsony form of market.
• A company located in India receives a loan from a company located abroad will be recorded in the credit side of Balance of Payment because it results in inflow of foreign exchange
• Ex-ante Savings and Ex-ante Investments are always equal at equilibrium level.
• Ex-post investments represent actual level of investments.
• The diagram presented represents a situation the earnings are less than expenses of the government budget
• Production function establishes the correlation between physical inputs and physical output.
• Point of inflexion is being asked for
• A mobile company introduces new features and discovers that wholesaler orders considerably outnumber the quantity of things being manufactured will means the demand and price both increase.
• If the value of investment multiplier is 4 and autonomous consumption is ₹20 Crore, the relevant consumption function can be calculated
• The value of marginal propensity to consume is one when marginal propensity to save is zero.
• Students must draw a straight-line supply curve with price equal to one, less than one, more than one and infinity