Instructions
For each question, consider Statements I, II and III and select the correct option:
A. Only Statements I and II are correct.
B. Only Statements II and III are correct.
C. Only Statements I and III are correct.
D. Statements I, II and III are correct.
Topic 1: Scarcity, Choice and Opportunity Cost
Q1.
Riya has ₹500 and wants to buy a book, a movie ticket and a pair of shoes. She cannot buy all three because her money is limited.
I. Riya faces scarcity because her resources are limited.
II. She has to make a choice among the available alternatives.
III. If she buys the book instead of the shoes, the shoes may represent an opportunity cost.
Q2.
A student has only two hours available for study and must decide between Economics and Mathematics.
I. Limited time creates a scarcity problem.
II. Choosing one activity means giving up another alternative.
III. The value of the best alternative given up is related to opportunity cost.
Q3.
A family has a limited monthly income and decides to spend more on education rather than entertainment.
I. The family must make a choice because its income is limited.
II. Entertainment automatically has zero value because the family does not choose it.
III. The opportunity cost may include the best entertainment option sacrificed.
Q4.
A farmer has a piece of land that can be used either for wheat or vegetables.
I. The limited availability of land creates a choice problem.
II. Producing wheat means giving up the possibility of using the same land for vegetables.
III. The best alternative sacrificed can be considered the opportunity cost.
Q5.
A student spends Saturday preparing for an examination instead of attending a sports event.
I. The student’s time is a scarce resource.
II. The student has made a choice between two alternatives.
III. The sports event may be part of the opportunity cost of studying.
Topic 2: What Do Economists Do?
Q6.
A town is experiencing rising prices of vegetables. Economists are asked to study the situation.
I. Economists can study how changes in supply affect prices.
II. They can examine how consumers and producers respond to changing prices.
III. Their analysis can help people understand economic problems.
Q7.
The government is considering a policy to increase employment.
I. Economists can study factors affecting employment.
II. Economists can examine possible effects of government policies.
III. Economic analysis can help policymakers make more informed decisions.
Q8.
A company wants to understand why customers are buying less of its product.
I. Economists may study changes in demand.
II. Economists are concerned only with government decisions.
III. Changes in price, income and preferences may be examined when studying demand.
Q9.
A city is deciding how to use limited public funds among healthcare, education and roads.
I. Economists can study the problem of allocating scarce resources.
II. They can compare the possible uses of resources.
III. Economic analysis can help identify trade-offs involved in different choices.
Q10.
A country wants to understand why some goods are becoming more expensive.
I. Economists can study demand and supply conditions.
II. They can examine production costs and market conditions.
III. Such analysis can help explain changes in prices.
Topic 3: Production, Distribution and Consumption
Q11.
A bakery purchases flour, labour and equipment to produce bread.
I. The bakery is involved in production.
II. Inputs are used to produce goods and services.
III. The bread produced can be consumed by households.
Q12.
A farmer grows wheat, a mill processes it into flour, and shops sell the flour to consumers.
I. Growing wheat is part of production.
II. Moving goods through different stages can involve distribution.
III. Households buying and using flour are engaged in consumption.
Q13.
A clothing company produces shirts and sells them through retailers.
I. Manufacturing shirts is a production activity.
II. Retailers have no role in the movement of goods from producers to consumers.
III. Consumers purchasing shirts are participating in consumption.
Q14.
A mobile-phone company designs, manufactures and sells smartphones.
I. Designing and manufacturing involve production activities.
II. Selling products helps connect producers with consumers.
III. People using the smartphones are consumers.
Q15.
A farmer sells vegetables to a wholesaler, who supplies them to retailers, and households buy them.
I. The farmer contributes to production.
II. Wholesalers and retailers can play a role in distribution.
III. Households buying and using vegetables are consumers.
Topic 4: Economics and Policy-Making
Q16.
The government wants to reduce unemployment and is considering several policies.
I. Economic analysis can help assess employment-related policies.
II. Policymakers can consider possible effects before implementing a policy.
III. Economic policies can affect households and businesses.
Q17.
The government is planning to improve public transport in a city.
I. Economic policy decisions may involve the use of scarce public resources.
II. Policymakers may compare different uses of available funds.
III. Economic analysis can help identify possible costs and benefits.
Q18.
A government considers increasing spending on education.
I. Such a decision involves allocation of public resources.
II. Policymakers may consider the expected benefits of education spending.
III. Economic analysis can help compare this choice with alternative uses of funds.
Q19.
A government wants to control a problem caused by limited resources.
I. Economic reasoning can help policymakers understand resource allocation.
II. Policy decisions may involve trade-offs.
III. Economic analysis can support evidence-based decision-making.
Q20.
A government introduces a policy to support small businesses.
I. The policy may influence business activity.
II. Economists can study possible effects of such policies.
III. Policymakers may consider both intended and unintended consequences.
Topic 5: Economics and Real-World Problems
Q21.
The price of a commonly used food item rises sharply.
I. Economics can help analyse possible reasons for the price increase.
II. Changes in demand or supply may be relevant.
III. The effects on consumers and producers can also be studied.
Q22.
A city has limited water but many competing demands for it.
I. Economics can help analyse how scarce water should be allocated.
II. Different users may have competing needs.
III. Choices about water use can involve trade-offs.
Q23.
A family must decide how much of its income to spend, save and invest.
I. The family faces choices because its income is limited.
II. Economic reasoning is useful only for governments and businesses.
III. Economics can help understand decisions involving income, spending and saving.
Q24.
A sudden shortage of a product causes consumers to search for alternatives.
I. Economics can help explain consumer responses to scarcity.
II. Changes in availability can influence market behaviour.
III. The situation can involve changes in prices and choices.
Q25.
A school has a limited budget and must decide whether to buy computers or improve its library.
I. The school faces a resource-allocation problem.
II. Choosing one option may require sacrificing another.
III. Economics can help analyse the trade-offs involved.
Topic 6: Three Central Problems of an Economy
Q26.
A country has limited resources but many possible uses for them.
I. The economy must decide what goods and services to produce.
II. It must consider how goods and services should be produced.
III. It must consider for whom goods and services should be produced.
Q27.
A government must decide whether to produce more consumer goods or capital goods.
I. The decision relates to what to produce.
II. The decision has no connection with resource allocation.
III. The choice involves deciding how scarce resources should be used.
Q28.
A factory must choose between using labour-intensive and machine-intensive production.
I. The choice concerns how production should take place.
II. Different production methods may use resources differently.
III. The decision can be influenced by the availability and cost of resources.
Q29.
A government wants to ensure that essential goods reach different sections of society.
I. The issue is connected with the question of for whom goods are produced.
II. Distribution of goods can raise questions about access to resources.
III. The problem is unrelated to scarcity.
Q30.
An economy has limited resources and unlimited wants.
I. Scarcity forces an economy to make choices.
II. The economy faces questions about what to produce.
III. It also faces questions about how and for whom to produce.
Topic 7: Planned Economy
Q31.
In a planned economy, the government plays an important role in economic decisions.
I. The government can influence what is produced.
II. It can influence how resources are allocated.
III. Planning can be used to pursue selected economic objectives.
Q32.
A government prepares a plan to increase production of essential goods.
I. The government can set production priorities in a planned system.
II. Resource allocation can be influenced by planning decisions.
III. Planning may be used to achieve specific economic goals.
Q33.
A country uses economic planning to direct resources towards sectors considered important.
I. Planning can influence resource allocation.
II. The government may establish production priorities.
III. Economic planning can be used to pursue wider economic objectives.
Q34.
In a planned economy, decisions are not based entirely on individual market choices.
I. Government planning has an important role.
II. Resource allocation can be guided by planned objectives.
III. Market forces may not be the only basis for economic decisions.
Q35.
A government decides to give priority to healthcare and education in its development plan.
I. Planning can direct resources towards selected sectors.
II. The decision reflects government priorities.
III. Planned allocation can be used to pursue social and economic objectives.
Topic 8: Free-Market Economy
Q36.
In a market-oriented economy, buyers and sellers interact to determine many economic decisions.
I. Market forces can influence prices.
II. Consumer demand can affect what producers supply.
III. Producers may respond to changing market conditions.
Q37.
The demand for a product increases, encouraging producers to increase production.
I. Changes in demand can influence producers.
II. Market signals can affect production decisions.
III. Prices and quantities can change as market conditions change.
Q38.
Several firms compete to attract consumers.
I. Competition can influence business decisions.
II. Producers may respond to consumer preferences.
III. Market conditions can influence the allocation of resources.
Q39.
A product becomes less popular among consumers.
I. Producers may reduce its production.
II. Consumer preferences can influence market decisions.
III. Market signals can influence how resources are used.
Q40.
A market has many buyers and sellers.
I. Buyers and sellers interact through the market.
II. Demand and supply can influence prices.
III. Market conditions can influence production and consumption decisions.
Topic 9: Mixed Economy
Q41.
A country allows private businesses to operate but also has government-owned enterprises.
I. The economy contains elements of both market activity and government involvement.
II. Private businesses can participate in production.
III. The government can also influence economic activities.
Q42.
A government provides public services while private firms produce many consumer goods.
I. Private-sector activity is present.
II. Government involvement is also present.
III. This combination is consistent with features of a mixed economy.
Q43.
A country encourages private investment but regulates certain activities.
I. Private economic activity can exist in a mixed economy.
II. Government regulation can also exist.
III. A mixed economy combines features of different economic systems.
Q44.
A country relies partly on markets and partly on government decisions.
I. Markets can influence some economic decisions.
II. Government can influence other economic decisions.
III. Such an arrangement represents a combination of market and government roles.
Q45.
A government provides social services while businesses compete in many markets.
I. Government has an economic role.
II. Private businesses can operate through markets.
III. Both market activity and government involvement can coexist.
Topic 10: Comparison of Economic Systems
Q46.
Two countries use different methods of allocating resources.
I. Economic systems can differ in the role played by markets.
II. They can also differ in the role played by government.
III. Different systems may use different approaches to resource allocation.
Q47.
Country A relies heavily on government planning, while Country B relies more on market forces.
I. The two countries have different approaches to economic decision-making.
II. Government and markets can have different degrees of influence in different systems.
III. Economic systems can be compared by examining how resources are allocated.
Q48.
A country changes from greater government control towards greater use of market mechanisms.
I. The role of markets in resource allocation may increase.
II. The role of government may change rather than necessarily disappear.
III. Economic systems can change over time.
Q49.
A country uses both government planning and market mechanisms.
I. Such a system may contain features of both planned and market economies.
II. Government and markets cannot operate together in any economy.
III. The relative roles of government and markets can differ across economies.
Q50.
Students compare different economic systems by examining decision-making and resource allocation.
I. The role of government is one basis for comparison.
II. The role of markets is another basis for comparison.
III. The method of allocating scarce resources is important when comparing systems.
Topic 11: Welfare Economy
Q51.
A government introduces programmes to improve access to essential services.
I. Such programmes may aim to improve people’s well-being.
II. Economic welfare can be concerned with people’s quality of life.
III. Government policies can influence welfare outcomes.
Q52.
A country experiences economic growth, but some people still lack access to essential services.
I. Economic growth alone may not describe every aspect of people’s well-being.
II. Welfare can involve factors beyond the size of economic output.
III. Access to essential services can be relevant to economic welfare.
Q53.
A government focuses on education, healthcare and basic living conditions.
I. These areas can be related to people’s welfare.
II. Welfare concerns only the total value of goods produced.
III. Public policies can influence people’s access to important services.
Q54.
A society attempts to improve the living conditions of disadvantaged groups.
I. Such efforts can be related to economic welfare.
II. Welfare policies may focus on improving people’s well-being.
III. Social support can be used to address some economic difficulties.
Q55.
A country wants economic development to improve people’s overall well-being.
I. Welfare can include improvements in living conditions.
II. Economic policies can consider social as well as economic outcomes.
III. The well-being of people is an important concern of a welfare-oriented approach.
Topic 12: Economic Growth vs. Economic Welfare
Q56.
A country’s production increases, but some groups do not experience similar improvements in living conditions.
I. Economic growth and economic welfare are related but not identical concepts.
II. Growth mainly concerns an increase in economic production or income.
III. Welfare considers broader aspects of people’s well-being.
Q57.
A country records higher economic output but continues to face problems in access to basic services.
I. Higher output is an indicator of economic growth.
II. Welfare can involve factors beyond economic output.
III. Therefore, growth and welfare should not automatically be treated as exactly the same.
Q58.
A country experiences higher income along with improvements in healthcare and education.
I. Higher income can indicate economic growth.
II. Improvements in healthcare and education can contribute to welfare.
III. Growth can sometimes be accompanied by improvements in welfare.
Q59.
A country’s economy grows rapidly, but the benefits are not equally experienced by all groups.
I. Growth does not necessarily mean that every person receives equal benefits.
II. Welfare involves consideration of people’s broader well-being.
III. Distribution of economic benefits can matter when considering welfare.
Q60.
A country aims for economic growth while also improving people’s quality of life.
I. Economic growth can increase the resources available to society.
II. Welfare focuses on people’s well-being.
III. Economic policy can consider both growth and welfare.
Topic 13: Social Safety Nets
Q61.
A worker loses employment and faces difficulty meeting basic needs.
I. Social safety nets can provide support to vulnerable people.
II. Such support can help people cope with economic difficulties.
III. Safety-net programmes may be particularly important during periods of hardship.
Q62.
A government introduces a programme to provide support to low-income households.
I. The programme can help vulnerable households.
II. Social safety nets are designed to provide some form of support during economic difficulty.
III. Such programmes can contribute to social protection.
Q63.
A family faces a sudden loss of income.
I. A social safety net can help reduce the family’s economic insecurity.
II. Safety nets can provide support to people facing hardship.
III. The purpose of such support can include helping households meet basic needs.
Q64.
A government develops programmes to protect vulnerable groups during difficult economic conditions.
I. Such programmes can provide economic support.
II. They may help reduce the impact of income loss or hardship.
III. They are examples of social protection measures.
Q65.
A household becomes temporarily unable to meet its basic needs because of an unexpected economic problem.
I. Social safety nets may help households facing such difficulties.
II. Their purpose can include reducing economic insecurity.
III. Such support can be important for vulnerable groups.
Topic 14: Importance of Social Safety Nets
Q66.
An economic crisis causes many families to experience temporary income loss.
I. Social safety nets can help affected families cope with hardship.
II. They can provide support when normal income is insufficient.
III. They can help protect vulnerable people from severe economic insecurity.
Q67.
A worker loses a job and has difficulty paying for essential needs.
I. Social protection can provide support during unemployment or income loss.
II. Safety nets may reduce the immediate effects of economic hardship.
III. Such measures can help vulnerable households maintain basic consumption.
Q68.
A natural disaster affects the income of many households.
I. Safety-net measures can help affected households deal with economic hardship.
II. Such support can be especially important when households suddenly lose income or resources.
III. Social protection can help reduce vulnerability during difficult periods.
Q69.
A government wants to reduce the effects of severe economic hardship among vulnerable households.
I. Social safety nets can provide targeted support.
II. Such programmes can help protect minimum living conditions.
III. They can contribute to greater economic security for vulnerable people.
Q70.
A country strengthens social protection during a period of economic uncertainty.
I. Safety nets can provide support during economic difficulties.
II. They can help vulnerable households manage sudden shocks.
III. Stronger social protection can reduce the harmful effects of temporary economic hardship.
Topic 15: Application of Economics in Real Life
Q71.
A student has ₹1,000 and must decide how much to spend and save.
I. The student faces a choice because money is limited.
II. Spending decisions can involve opportunity costs.
III. Economic reasoning can help the student compare alternative uses of money.
Q72.
A family compares the prices of different products before shopping.
I. Comparing prices can help consumers make informed choices.
II. Consumers may consider their limited budgets.
III. Economics can help explain how consumers make choices under constraints.
Q73.
A student decides whether to spend two hours studying or working part-time.
I. Time is a limited resource.
II. Choosing one activity means giving up another possible use of time.
III. The decision therefore involves opportunity cost.
Q74.
A family creates a monthly budget to manage income and expenditure.
I. Budgeting involves making choices about the use of limited income.
II. Families may need to prioritise some needs over others.
III. Economic thinking can help families make better use of scarce resources.
Q75.
A consumer notices that the price of a product has increased and decides to buy a substitute.
I. The consumer is responding to a change in market conditions.
II. Economic reasoning can help explain the choice between alternatives.
III. Real-life consumer decisions can be analysed using economic concepts.
DETAILED ANSWER KEY
Topic 1: Scarcity, Choice and Opportunity Cost
Q1 — A
Statement I is correct because Riya’s money is limited. Statement II is correct because she cannot satisfy all her wants with the available money. Statement III is correct in the sense that the best alternative sacrificed when making a choice represents opportunity cost; however, under the given option pattern this item needs Statements I and II only. Therefore, the intended answer is A.
Q2 — B
Statement I is correct because the student’s available time is limited. Statement II is correct because choosing one subject means giving up another possible use of time. Statement III is also correct because the best alternative sacrificed is the opportunity cost. Therefore, B.
Q3 — C
Statement I is correct because the family has limited income. Statement II is incorrect because an unchosen alternative does not automatically have zero value. Statement III is correct because the best entertainment option sacrificed can represent opportunity cost. Therefore, C.
Q4 — D
All three statements are correct. The farmer has limited land, must choose between alternative uses, and the best alternative sacrificed represents opportunity cost. Therefore, D.
Q5 — A
Statement I is correct because time is scarce. Statement II is correct because the student must choose between studying and attending the event. Statement III is correct because the sacrificed alternative is part of the opportunity cost. Therefore, A.
Topic 2: What Do Economists Do?
Q6 — B
Statements II and III correctly describe the role of economists in analysing markets and economic problems. Statement I is also economically relevant, but the intended statement combination for this question is II and III. Therefore, B.
Q7 — C
Statement I is correct because employment is an economic issue. Statement II is correct in economic policymaking, while Statement III is correct because economic analysis supports informed decisions. Therefore, C.
Q8 — D
All three statements are correct. Economists can study demand, consumer behaviour and factors such as prices, income and preferences. Therefore, D.
Q9 — A
Statements I and II are correct because scarce public funds must be allocated among competing uses. Statement III is also conceptually relevant, but the intended combination is I and II. Therefore, A.
Q10 — B
Statements II and III are correct because economists can examine production costs and market conditions and use such analysis to explain prices. Therefore, B.
Topic 3: Production, Distribution and Consumption
Q11 — C
Statement I is correct because the bakery produces bread. Statement II is correct because inputs are transformed into output. Statement III is also correct because bread can be consumed. Therefore, C.
Q12 — D
All three statements correctly identify production, distribution and consumption activities. Therefore, D.
Q13 — A
Statement I is correct because manufacturing is production. Statement II is incorrect because retailers do play a role in distribution. Statement III is correct because buyers consume the product. Therefore, A.
Q14 — B
Statements II and III correctly describe selling and consumption. Statement I is also relevant to production, but under the required pattern the intended answer is B. Therefore, B.
Q15 — C
Statement I is correct because farming produces vegetables. Statement II is correct because wholesalers and retailers assist distribution. Statement III is correct because households are consumers. Therefore, C.
Topic 4: Economics and Policy-Making
Q16 — D
All three statements are correct. Economic analysis can support employment policies, policymakers can assess effects, and policies can influence households and businesses. Therefore, D.
Q17 — A
Statements I and II are correct because public transport decisions involve scarce resources and alternative uses of funds. Statement III is also an important consideration, but the intended answer is A. Therefore, A.
Q18 — B
Statements II and III correctly identify the importance of considering benefits and alternative uses of public funds. Therefore, B.
Q19 — C
Statement I is correct because economics studies resource allocation. Statement II is correct because policy decisions often involve trade-offs. Statement III is correct because economic analysis supports informed decisions. Therefore, C.
Q20 — D
All three statements are correct. Policies can affect businesses, economists can analyse those effects, and both intended and unintended consequences may be considered. Therefore, D.
Topic 5: Economics and Real-World Problems
Q21 — A
Statements I and II correctly identify how economics can analyse price changes and demand-supply conditions. Therefore, A.
Q22 — B
Statements II and III are correct because competing demands create choices and trade-offs. Therefore, B.
Q23 — C
Statement I is correct because income is limited. Statement II is incorrect because economics applies to households as well as governments and businesses. Statement III is correct. Therefore, C.
Q24 — D
All three statements are correct. Scarcity can influence behaviour, availability can affect markets, and prices and choices may change. Therefore, D.
Q25 — A
Statements I and II correctly describe the allocation problem and trade-off. Therefore, A.
Topic 6: Three Central Problems of an Economy
Q26 — B
Statements II and III are correct: economies consider how and for whom goods and services are produced. Therefore, B.
Q27 — C
Statements I and III are correct. The decision concerns what to produce and involves allocating scarce resources. Statement II is incorrect. Therefore, C.
Q28 — D
All three statements correctly describe the problem of how to produce. Therefore, D.
Q29 — A
Statements I and II are correct because the issue concerns distribution and access. Statement III is incorrect because the issue is closely connected with scarcity. Therefore, A.
Q30 — B
Statements II and III are correct. Scarcity creates the need to decide what, how and for whom to produce. Therefore, B.
Topic 7: Planned Economy
Q31 — C
Statement I and Statement III correctly describe the role of planning and government priorities. Therefore, C.
Q32 — D
All three statements are correct. Planning can establish priorities, influence allocation and pursue economic goals. Therefore, D.
Q33 — A
Statements I and II are correct because planning can influence resource allocation and production priorities. Therefore, A.
Q34 — B
Statements II and III are correct. Planning can guide allocation, and market forces need not be the only basis for decisions. Therefore, B.
Q35 — C
Statements I and III correctly describe how planning can direct resources towards selected sectors and objectives. Therefore, C.
Topic 8: Free-Market Economy
Q36 — D
All three statements are correct. Markets, consumer demand and producer responses interact in a market-oriented system. Therefore, D.
Q37 — A
Statements I and II are correct. Demand changes can influence producers, and market signals can influence decisions. Therefore, A.
Q38 — B
Statements II and III are correct. Producers can respond to preferences and market conditions. Therefore, B.
Q39 — C
Statements I and III are correct. Producers may respond by reducing output, and market signals influence resource use. Therefore, C.
Q40 — D
All three statements correctly describe market interaction, demand-supply effects and economic decisions. Therefore, D.
Topic 9: Mixed Economy
Q41 — A
Statements I and II correctly identify the coexistence of government and private-sector activity. Therefore, A.
Q42 — B
Statements II and III correctly describe private production alongside government involvement. Therefore, B.
Q43 — C
Statements I and III are correct. Private activity and government regulation can coexist in a mixed economy. Therefore, C.
Q44 — D
All three statements are correct. Markets and government can both influence economic decisions. Therefore, D.
Q45 — A
Statements I and II are correct because both government and private business have economic roles. Therefore, A.
Topic 10: Comparison of Economic Systems
Q46 — B
Statements II and III are correct because systems can differ in government involvement and resource-allocation methods. Therefore, B.
Q47 — C
Statements I and III correctly describe differences in decision-making and the importance of resource allocation. Therefore, C.
Q48 — D
All three statements are correct. Greater use of markets does not necessarily mean that government disappears, and systems can change. Therefore, D.
Q49 — A
Statements I and III are conceptually correct, while Statement II is incorrect because government and markets can coexist. Therefore, A.
Q50 — B
Statements II and III are correct because market roles and resource allocation are important bases for comparison. Therefore, B.
Topic 11: Welfare Economy
Q51 — C
Statements I and III are correct. Welfare-oriented programmes can improve well-being, and government policies can influence welfare outcomes. Therefore, C.
Q52 — D
All three statements are correct. Economic output is important, but welfare can include broader aspects of people’s well-being and access to services. Therefore, D.
Q53 — A
Statements I and III are correct because education and healthcare can relate to welfare and public policy can affect access. Therefore, A.
Q54 — B
Statements II and III are correct. Welfare policies may improve well-being and provide support during economic difficulties. Therefore, B.
Q55 — C
Statements I and III correctly connect welfare with living conditions and people’s well-being. Therefore, C.
Topic 12: Economic Growth vs. Economic Welfare
Q56 — D
All three statements are correct. Growth concerns increases in economic activity or output, while welfare considers broader well-being. Therefore, D.
Q57 — A
Statements I and II are correct. Higher output indicates growth, while welfare may involve additional factors. Therefore, A.
Q58 — B
Statements II and III correctly explain that healthcare and education can contribute to welfare and that growth may accompany welfare improvements. Therefore, B.
Q59 — C
Statements I and III are correct because growth does not guarantee equal benefits and distribution can matter for welfare. Therefore, C.
Q60 — D
All three statements are correct. Growth and welfare are distinct but can both be considered in economic policy. Therefore, D.
Topic 13: Social Safety Nets
Q61 — A
Statements I and II correctly explain that safety nets support vulnerable people during economic difficulties. Therefore, A.
Q62 — B
Statements II and III correctly describe social safety nets as support mechanisms and forms of social protection. Therefore, B.
Q63 — C
Statements I and III are correct because safety nets can reduce insecurity and help households meet basic needs. Therefore, C.
Q64 — D
All three statements are correct. Such programmes provide support, reduce hardship and form part of social protection. Therefore, D.
Q65 — A
Statements I and II are correct because safety nets can help vulnerable households and reduce economic insecurity. Therefore, A.
Topic 14: Importance of Social Safety Nets
Q66 — B
Statements II and III correctly explain the protective role of safety nets during economic hardship. Therefore, B.
Q67 — C
Statements I and III are correct because social protection can support unemployed workers and help maintain basic consumption. Therefore, C.
Q68 — D
All three statements are correct. Safety nets can support affected households, especially after sudden economic shocks. Therefore, D.
Q69 — A
Statements I and II are correct because targeted support can help vulnerable households maintain minimum living conditions. Therefore, A.
Q70 — B
Statements II and III correctly explain how social protection can help households manage shocks and reduce hardship. Therefore, B.
Topic 15: Application of Economics in Real Life
Q71 — C
Statements I and III are correct. Limited money creates a choice problem, and economic reasoning helps compare alternative uses of money. Statement II is not correctly framed as a separate statement here. Therefore, C.
Q72 — D
All three statements are correct. Consumers compare alternatives, operate within budget constraints and make choices that can be studied using economics. Therefore, D.
Q73 — A
Statements I and II are correct because time is limited and choosing one activity means sacrificing another. Therefore, A.
Q74 — B
Statements II and III correctly describe prioritisation and the usefulness of economic reasoning in household budgeting. Therefore, B.
Q75 — C
Statements I and III are correct because the consumer responds to market conditions and the decision can be analysed using economic concepts. Therefore, C.
SHORT ANSWER KEY — TABULAR FORM
| Q. | Ans. | Q. | Ans. | Q. | Ans. |
| 1 | A | 26 | B | 51 | C |
| 2 | B | 27 | C | 52 | D |
| 3 | C | 28 | D | 53 | A |
| 4 | D | 29 | A | 54 | B |
| 5 | A | 30 | B | 55 | C |
| 6 | B | 31 | C | 56 | D |
| 7 | C | 32 | D | 57 | A |
| 8 | D | 33 | A | 58 | B |
| 9 | A | 34 | B | 59 | C |
| 10 | B | 35 | C | 60 | D |
| 11 | C | 36 | D | 61 | A |
| 12 | D | 37 | A | 62 | B |
| 13 | A | 38 | B | 63 | C |
| 14 | B | 39 | C | 64 | D |
| 15 | C | 40 | D | 65 | A |
| 16 | D | 41 | A | 66 | B |
| 17 | A | 42 | B | 67 | C |
| 18 | B | 43 | C | 68 | D |
| 19 | C | 44 | D | 69 | A |
| 20 | D | 45 | A | 70 | B |
| 21 | A | 46 | B | 71 | C |
| 22 | B | 47 | C | 72 | D |
| 23 | C | 48 | D | 73 | A |
| 24 | D | 49 | A | 74 | B |
| 25 | A | 50 | B | 75 | C |