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Read the following statements carefully:
Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.
Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.
In the light of the given statements, choose the correct alternative from the following:
Concept: Aggregate Demand and Its Components >> Consumption
________ and _____ are the reasons for the slowdown of the Pakistan economy since independence.
- political instability
- over-dependence on remittances from abroad
- stable performance of agriculture sector
- growth of service sector
Concept: Gross Domestic Product and Sectors
From the set of the events given in column I and corresponding facts given in Column II, choose the correct pair of statements:
| COLUMN I | COLUMN II | ||
| i | Dual Pricing | A | Economic Reforms of 1991 |
| ii | Setting up of Special Economic Zones in China | B | To attract foreign Direct Investment |
| iii | Commune System | C | Backyard based Industrial production units |
| iv | Great Proletarian Cultural Revolution | D | Collective Farming |
Concept: Developmental Path - a Snapshot View
Read the following statements carefully.
Statement 1: Both India and Pakistan initiated their economic reforms without any external pressures.
Statement 2: Pakistan has successfully implemented the SEZ policy and reaped its benefits using the Export Promotion policy.
In the light of the given statements, choose the correct alternative:
Concept: Developmental Path - a Snapshot View
Assertion (A): In the late 1970s, China’s population growth rate had sharply declined.
Reason(R): China has witnessed an increase in the proportion of elderly people owing to stringent family planning programmes.
Concept: Developmental Path - a Snapshot View
Compare and analyse the following information related to Imports and Exports of the three neighbouring nations:
| Country | Exports from India (in ₹ Crore) |
Imports to India (in ₹ Crore) | ||||
| 2004- 05 | 2018-19 | Annual rate of growth (%) | 2004-05 | 2018-19 | Annual rate of growth (%) | |
| Pakistan | 2,341 | 14,426 | 3.7 | 427 | 3,476 | 5.1 |
| China | 25,232 | 1,17,289 | 2.6 | 31,892 | 4,92,079 | 10.3 |
Concept: Development Strategies - an Appraisal
At the break-even point level of incomes for the economy is ₹ 10,000 crores and if the people tends to save 20 per cent of their additional income, then calcualte the value of autonomous consumption.
Concept: Aggregate Demand and Its Components >> Consumption
Read the following statements carefully:
Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.
Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).
In light of the given statements, choose the correct alternative from the following:
Concept: Aggregate Demand and Its Components >> Consumption
Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.
Concept: Determination of Equilibrium Income in the Short Run >> Macroeconomic Equilibrium with Price Level Fixed
Suppose for a given economy,
S = -60 + 0.1Y
I = ₹ 4,000 crore
(Where S = Saving Function, Y = National Income and I = Investment Expenditure)
Equilibrium level of Income would be ₹ ______ crore.
Concept: Determination of Equilibrium Income in the Short Run >> Effect of an Autonomous Change in Aggregate Demand on Income and Output
Under ______ in China, farmers and industrial units were required to buy and sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchased and sold at market prices.
Concept: Developmental Path - a Snapshot View
From the set of the events given in column I and corresponding facts given in Column II, choose the correct pair of statements:
| Column I | Column II | ||
| A. | Adoption of mixed economic system | I. | The common development policy of India and China |
| B. | Introduction of economic reforms in China | II. | Imposed by World Bank |
| C. | Great Leap Forward Campaign | III. | Focussed on massive industrialization |
| D. | First Five Year Plan of Pakistan | IV. | Announced in 1953 |
Concept: Developmental Path - a Snapshot View
“During the colonial period, a number of socio-economic indicators were in a dilapidated state.”
List any three such indicators that led to the worsening of India’s demographic profile.
Concept: Demographic Indicators
“In the late 1970s, China introduced the One-child policy that led to arrest in the population coupled with skewed sex ratio.”
Justify the given statement with valid arguments in support of your answer.
Concept: Demographic Indicators
What is capital expenditure?
Concept: Classification of Expenditure
X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.
Concept: Equilibrium Price
Explain the chain of an effect of excess demand of a good on it equilibrium price.
Concept: Equilibrium Price
Give the equation of Budget Line.
Concept: Types of Budget
Explain the role of the government budget infighting inflationary and deflationary tendencies.
Concept: Objectives of Government Budget
Calculate investment expenditure from the following date about an economy which is in equilibrium :
National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100
Concept: Classification of Expenditure
