ECONOMICS (030)
CLASS XII (2024-25)
MARKING SCHEME
Q.NO. SECTION A – MACRO ECONOMICS MARKS
1. D. Assertion (A) is false, but Reason (R) is true. 1
2. C. Redistribution of income 1
3. B. Net Product Taxes 1
4. B. flexible 1
5. A. (i) 1
For Visually Impaired Candidates:
B. 450 1
6. B. fiscal 1
7. A. Statement 1 is true and Statement 2 is false. 1
8. D. Autonomous Consumption, Induced Consumption and Autonomous 1
Investment
9. C. Both Statements 1 and 2 are true. 1
10. C. deficit, 0.74 1
For Visually Impaired Candidates:
C. Receipts < Payments on current account 1
11. Domestic Income (NDPFC) = i + iv + ii + iii + vii + vi – v – x – viii 1½
(A) = 800+170+150+120+500+140–20 – 40 – 70 1
= ₹ 1,750 crore ½
OR
11. Steps pertaining to the estimation of National Income under the Income
(B) method:
1. Identify and classify production units into distinct heads namely primary, 1
secondary, and tertiary sector.
2. Estimate and classify the factor payments in different categories as 1
Compensation of Employees, Operating Surplus, and Mixed Income. The
sum of factor payments represents the contribution of the sectors to
Domestic Income (NDPFC).
3. Finally, estimate and add the value of Net Factor Income from Abroad 1
(NFIA) to arrive at National Income (NNPFC).
12. Tax revenue collection by the government may be categorized as:
• Direct Taxes: It refers to those taxes whose impact and incidence ½+1
lie on the same entity. In other words, the liability of paying direct
taxes can’t be shifted.
½+1
1
, • Indirect Taxes: It refers to those taxes whose impact and incidence
may lie on different entities. In other words, the liability of paying
indirect taxes can be shifted.
13. (I) Foreign Portfolio Investments in India in the fiscal year 2023-24 will be
recorded on the credit side of the capital account of the Balance of
Payments (BOP) account. 3
It is recorded on the credit side, as it results in the inflow of foreign
exchange. Furthermore, such transactions are documented in the capital
account as they reflect the change in the ownership of financial assets
between the residents of a country and rest of the world.
(II) Balance of Payments deficit occurs when autonomous receipts fall short 1
of autonomous payments during a given fiscal year in an economy.
14. Given consumption curve (C) intersecting 45o line at B (Break-even level of
(A) income). Steps for derivation of saving curve from the consumption curve
are as follows:
1. Take OA on the negative intercept on Y-axis equals to OC (Autonomous 1
consumption) having positive intercept on Y-axis, as a starting point of the
saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis 1
at B’ (where S=0) which is another point on the saving curve.
3. Join point A to point B’ extending the line till point S to get the saving 1
curve (AS).
1
For Visually Impaired Candidates:
Given consumption curve (C) intersecting 45o line at B (Break-even level of
income). Steps for derivation of saving curve from the consumption curve
are as follows:
1. Take OA on the negative intercept on Y-axis equals to OC (Autonomous 4
consumption) having positive intercept on Y-axis, as a starting point of the
saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis
at B’ (where S=0) which is another point on the saving curve.
3. Join point A to point B’ extending the line till point S to get the saving
curve (AS).
OR
2
CLASS XII (2024-25)
MARKING SCHEME
Q.NO. SECTION A – MACRO ECONOMICS MARKS
1. D. Assertion (A) is false, but Reason (R) is true. 1
2. C. Redistribution of income 1
3. B. Net Product Taxes 1
4. B. flexible 1
5. A. (i) 1
For Visually Impaired Candidates:
B. 450 1
6. B. fiscal 1
7. A. Statement 1 is true and Statement 2 is false. 1
8. D. Autonomous Consumption, Induced Consumption and Autonomous 1
Investment
9. C. Both Statements 1 and 2 are true. 1
10. C. deficit, 0.74 1
For Visually Impaired Candidates:
C. Receipts < Payments on current account 1
11. Domestic Income (NDPFC) = i + iv + ii + iii + vii + vi – v – x – viii 1½
(A) = 800+170+150+120+500+140–20 – 40 – 70 1
= ₹ 1,750 crore ½
OR
11. Steps pertaining to the estimation of National Income under the Income
(B) method:
1. Identify and classify production units into distinct heads namely primary, 1
secondary, and tertiary sector.
2. Estimate and classify the factor payments in different categories as 1
Compensation of Employees, Operating Surplus, and Mixed Income. The
sum of factor payments represents the contribution of the sectors to
Domestic Income (NDPFC).
3. Finally, estimate and add the value of Net Factor Income from Abroad 1
(NFIA) to arrive at National Income (NNPFC).
12. Tax revenue collection by the government may be categorized as:
• Direct Taxes: It refers to those taxes whose impact and incidence ½+1
lie on the same entity. In other words, the liability of paying direct
taxes can’t be shifted.
½+1
1
, • Indirect Taxes: It refers to those taxes whose impact and incidence
may lie on different entities. In other words, the liability of paying
indirect taxes can be shifted.
13. (I) Foreign Portfolio Investments in India in the fiscal year 2023-24 will be
recorded on the credit side of the capital account of the Balance of
Payments (BOP) account. 3
It is recorded on the credit side, as it results in the inflow of foreign
exchange. Furthermore, such transactions are documented in the capital
account as they reflect the change in the ownership of financial assets
between the residents of a country and rest of the world.
(II) Balance of Payments deficit occurs when autonomous receipts fall short 1
of autonomous payments during a given fiscal year in an economy.
14. Given consumption curve (C) intersecting 45o line at B (Break-even level of
(A) income). Steps for derivation of saving curve from the consumption curve
are as follows:
1. Take OA on the negative intercept on Y-axis equals to OC (Autonomous 1
consumption) having positive intercept on Y-axis, as a starting point of the
saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis 1
at B’ (where S=0) which is another point on the saving curve.
3. Join point A to point B’ extending the line till point S to get the saving 1
curve (AS).
1
For Visually Impaired Candidates:
Given consumption curve (C) intersecting 45o line at B (Break-even level of
income). Steps for derivation of saving curve from the consumption curve
are as follows:
1. Take OA on the negative intercept on Y-axis equals to OC (Autonomous 4
consumption) having positive intercept on Y-axis, as a starting point of the
saving curve.
2. Draw a perpendicular from point B (where, Y=C) intersecting the X-axis
at B’ (where S=0) which is another point on the saving curve.
3. Join point A to point B’ extending the line till point S to get the saving
curve (AS).
OR
2
