Skip to content

Answer the following. (Class 12 Economics SQP 2024-25, Q17A)

questionbuddy.in/q/cbse-12-economics-2024-25-sqp-q17a

EconomicsCBSE Class 12 · Sample paper, session 2024-25 · 6 marks · Long answer

CBSE Class 12 Economics sample paper 2024-25: question 17(A)

From the official CBSE sample question paper for 2024-25, section A, question 17(A), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q17(A) · 6 marks · Long answerCompetency-basedNational Income Accounting

Answer the following.

  1. (I)

    On the basis of the following hypothetical data:
    (all figures in ₹ crore)

    YearNominal GDPNominal GDP adjusted to base year prices
    20203,0004,000
    20234,0004,500

    Calculate the percentage change in Real Gross Domestic Product in the year 2023 using 2020 as the base year.

    3 marks
  2. (II)

    “The public investment on the construction of a multi-lane flyover may reduce traffic congestion.”
    On the basis of the above statement, discuss its likely impact on Gross Domestic Product (GDP) and welfare in an economy.

    3 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Real GDP uses base-year prices.

Hint 2

Percentage change = change ÷ old value × 100.

Hint 3

Does saved travel time count in GDP?

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. (I) Real GDP is nominal GDP at base-year prices: 2020 = ₹ 4,000 crore, 2023 = ₹ 4,500 crore (as given in the third column). % change in real GDP = (Change in real GDP ÷ Real GDP of 2020) × 100

    1½ marks

  2. = (4,500 − 4,000) ÷ 4,000 × 100

    1 mark

  3. = 12.5%

    ½ mark

  4. (II) The flyover is public investment, so it adds to GDP directly. Better infrastructure (faster transport) attracts more investment and creates jobs, raising GDP further. Less congestion saves travel time and lowers transport costs and pollution, so the well-being (welfare) of citizens rises too.

    3 marks

Answer: (I) Real GDP rose by 12.5%. (II) The flyover raises GDP (investment, jobs) and welfare (less congestion, time and cost saved).

Where the marks are

  • Formula (1½), substitution (1), answer (½)
  • Impact on GDP and welfare (3)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: 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.