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Answer the… (Class 12 Economics SQP 2023-24, Q16A,B)

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EconomicsCBSE Class 12 · Sample paper, session 2023-24 · 6 marks · Long answer

CBSE Class 12 Economics sample paper 2023-24: question 16(A,B)

From the official CBSE sample question paper for 2023-24, section A, question 16(A,B), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q16(A,B) · 6 marks · Long answerCompetency-basedGovernment Budget and the Economy

Answer the following.

  1. (A)

    On the basis of the given information, calculate the value of:
    (i) Fiscal deficit (3 marks)
    (ii) Primary deficit (2 marks)

    S.No.Items2021-22 (₹ in crore)
    (i)Revenue Receipts20
    (ii)Capital Expenditure15
    (iii)Revenue Deficit10
    (iv)Non-debt creating capital receipts50% of revenue receipts
    (v)Interest Payments4
    5 marks
  2. (B)

    State any two features of public goods.

    1 mark

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Non-debt capital receipts = 50% of 20.

Hint 2

Primary deficit removes interest payments.

Hint 3

Can you stop someone from enjoying street lights?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (A)(i) Revenue deficit = Revenue expenditure − Revenue receipts, so revenue expenditure = 10 + 20 = 30 and total expenditure = 30 + 15 = 45. Fiscal deficit = Total expenditure − Revenue receipts − Non-debt capital receipts, which works out to Revenue deficit + Capital expenditure − Non-debt capital receipts = (iii) + (ii) − (iv).

    1 mark

  2. = 10 + 15 − (50% of 20 = 10)

    1½ marks

  3. = ₹ 15 crore

    ½ mark

  4. (A)(ii) Primary deficit = Fiscal deficit − Interest payments

    1 mark

  5. = 15 − 4 = ₹ 11 crore

    1 mark

  6. (B) Public goods are non-excludable (no one can be kept from using them) and non-rivalrous (one person's use does not reduce what others get).

    1 mark

Answer: (A) Fiscal deficit = ₹ 15 crore; primary deficit = ₹ 11 crore. (B) Non-excludable and non-rivalrous.

Where the marks are

  • Fiscal deficit: formula (1), substitution (1½), answer (½)
  • Primary deficit: formula (1), answer (1)
  • Two features (½ + ½)

Revise the chapter

Practise this chapterBoard-style questions from Government Budget and the Economy, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.