Question:
Read the following text carefully and answer the questions given below:
“This organisation replaced General Agreement on Trade and Tariff (GATT) as global trade organisation.”
- [(i)] Identify the organisation which is known as the successor of GATT.
- [(ii)] In which year was this new organisation established?
- [(iii)] Explain any two objectives of the new organisation.
OR
Read the following text carefully and answer the questions given below:
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
- [(i)] Identify the indicated outcome of the globalisation process.
- [(ii)] State any two factors responsible for making India as an important source of these activities.
- [(iii)] Explain examples of services that have expanded due to advancements in information technology.
Read the following text carefully and answer the questions given below:
“This organisation replaced General Agreement on Trade and Tariff (GATT) as global trade organisation.”
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
“This organisation replaced General Agreement on Trade and Tariff (GATT) as global trade organisation.”
- [(i)] Identify the organisation which is known as the successor of GATT.
- [(ii)] In which year was this new organisation established?
- [(iii)] Explain any two objectives of the new organisation.
“It is an arrangement in which a firm hires some specialized firm(s) to carry out some of its activities (which were earlier being performed by itself). These service hirings could be from local / international markets.”
- [(i)] Identify the indicated outcome of the globalisation process.
- [(ii)] State any two factors responsible for making India as an important source of these activities.
- [(iii)] Explain examples of services that have expanded due to advancements in information technology.
Show Hint
WTO → global trade body (1995)
Outsourcing → key outcome of globalisation
Outsourcing → key outcome of globalisation
Updated On: Mar 19, 2026
Hide Solution
Verified By Collegedunia
Solution and Explanation
(A)
(i) Organisation
\[ \text{World Trade Organization (WTO)} \] (ii) Year of establishment
\[ 1995 \] (iii) Objectives of WTO
1. Promotion of free trade
(i) Identified outcome
\[ \text{Outsourcing} \] (ii) Factors making India an important source
1. Availability of skilled labour
(i) Organisation
\[ \text{World Trade Organization (WTO)} \] (ii) Year of establishment
\[ 1995 \] (iii) Objectives of WTO
1. Promotion of free trade
- Reduces trade barriers like tariffs and quotas
- Encourages smooth flow of international trade
- Provides a platform to resolve conflicts between countries
- Ensures fair trade practices
(i) Identified outcome
\[ \text{Outsourcing} \] (ii) Factors making India an important source
1. Availability of skilled labour
- Large number of educated and English-speaking workforce
- Lower wages compared to developed countries
- Business Process Outsourcing (BPO)
- Call centres
- IT services and software development
- Data entry and accounting services
Was this answer helpful?
0
0
Top Questions on Indian Economy
- "Although the subsidies play a crucial role in giving incentive to farmers to adopt modern agricultural technologies, they simultaneously impose a significant fiscal strain on the resources of the Government." Justify the given statement with valid arguments.
- CBSE CLASS XII - 2026
- Economics
- Indian Economy
- Read the following text carefully: To ensure inclusive and quality education for all, the Indian government has launched several important schemes. These schemes aimed at improving access, equity, and learning outcomes, especially among disadvantaged groups. The Right to Education (RTE) Act, passed by the India Parliament on August 4, 2009, guarantees free and compulsory education to every child between 6-14 years of age. It ensures that all children have access to education in neighbourhood schools, until they complete elementary education. Another key initiative is Sarva Shiksha Abhiyan (SSA). It was introduced in 2001. It is one of India’s flagship programmes for the Universalisation of Elementary Education. Digital India Campaign, launched on July 1, 2015, focuses on transforming India into a digitally empowered society by improving mobile and internet connectivity, particularly in rural and remote regions. This initiative supports digital learning & access to educational resources. Through these initiatives, the government strives to create an equitable, accessible & quality driven educational environment for all children, laying a strong foundation for national development. On the basis of the given text and common understanding, answer the following questions: (i) Identify, which law guarantees free and compulsory education upto the age of 14 years. Explain, how does it help in enhancing access to education. (ii) In your opinion, how has the increase in public spending on education contributed to India’s social and economic transformation? Support your answer with valid arguments.
- CBSE CLASS XII - 2026
- Economics
- Indian Economy
- "Under a study, examining the spending habits of a hypothetical economy, it was observed that even households with zero income managed to consume basic necessities. As the income of people increased, their consumption also increased, but not as rapidly as income."
Based on the given text and common understanding, answer the following questions: (i) Identify and elaborate the type of consumption indicated in the first para of the above text. (ii) Explain, the reason behind the positive slope of Aggregate Demand Curve.- CBSE CLASS XII - 2026
- Economics
- Indian Economy
- Income of an economy increased from ₹40,000 crore to ₹1,00,000 crore. Savings of the economy increased from ₹4,000 crore to ₹20,000 crore.
(i) Calculate Average Propensity to Consume (APC) and Average Propensity to Save (APS) before and after the rise in income.
(ii) Draw appropriate conclusion regarding the behaviour of Average Propensity to Save (APS) as his income increases.- CBSE CLASS XII - 2026
- Economics
- Indian Economy
- Read the following text carefully:
The Union Budget 2025-26 proposed a significant package for rural India allocating ₹ 1.88 lakh crore to drive comprehensive development. The budget emphasises on boosting employment, women employment, education and infrastructure in rural areas, reflecting the government's commitment for a stronger, self-reliant rural economy. The extension of Jal-Jeevan Mission until 2028, with focus on achieving 100% rural water supply coverage and enhancing infrastructure maintenance. Broadband connectivity is set to expand under the Bharatnet project, providing internet access to all rural government secondary schools and primary health care centres.
Also, the budget highlights major rural schemes like the Pradhan Mantri Gram Sadak Yojana which has provided all-weather roads to rural areas. The Pradhan Mantri Grameen Awaas Yojana, which has delivered housing to economically weaker sections. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) continues to secure rural livelihoods with an allocation of ₹ 86,000 crore in FY 2024-25. On the basis of the above text and common understanding, answer the following questions:- [(i)] Explain the significance of rural development.
- [(ii)] Discuss any two policies initiated by Government of India for rural development.
- CBSE CLASS XII - 2026
- Economics
- Indian Economy
View More Questions
Questions Asked in CBSE CLASS XII exam
- Refer the given text carefully: According to the Economic Survey 2024-25, the government budget’s projections for the fiscal year 2025-26 indicate that gross direct tax revenue will rise by 12.7%, while gross indirect tax collections are expected to grow by 8.3% relative to FY 2024-25. Direct taxes include income tax and corporate tax, reflecting earnings and profits of households and firms. It plays a key role in revenue growth of the government. Indirect taxes encompass Goods and Services Tax (GST), custom duties and other transaction-based levies. Higher growth rate projected for direct taxes suggests a push to enhance tax buoyancy through improved compliance and reforms. On the other hand, indirect taxes are expected to benefit from consumption trends and Goods and Services Tax (GST) administration improvements. The balance tax strategy aims to mobilize resources while supporting fiscal consolidation and sustainable economic growth. On the basis of the above passage and common understanding, answer the following questions: (i) Differentiate between the two types of taxes indicated in the above text, with suitable examples. (ii) Elaborate the likely consequences of the tax projections made by the government.
- CBSE CLASS XII - 2026
- Income and Expenditure Account
- Refer the given image carefully:
- CBSE CLASS XII - 2026
- Fiscal Deficit
- Michel, an entrepreneur of Country Zeta, borrowed \$5 million from an overseas bank to expand his textile business. During the same financial year, the Government of Country Zeta secured a loan of \$30 Billion from an International Financial Institution to manage the ongoing Balance of Payments. Samuel, an Economics student categorised both of these transactions as 'autonomous transactions' in the BoP account of the country. Do you agree with his classification? Justify your answer with valid reasons.
- CBSE CLASS XII - 2026
- Income and Expenditure Account
- (I) Estimate the value of subsistence level of consumption expenditure from the following data, about an economy which is in equilibrium:
- [(i)] National Income (\(Y\)) = ₹ 1,500 crore
- [(ii)] Marginal Propensity to Consume (\(MPC\)) = 0.8
- [(iii)] Investment Expenditure (\(I\)) = ₹ 150 crore
(II) “An economy facing unplanned accumulation of inventories would try to increase its Aggregate Demand.”
Defend or refute the given statement with valid arguments.
(III) Identify the monetary measure being referred to each of the following and discuss whether the tool would be used during a situation of excess demand or deficient demand:- [(i)] Buying government securities (G-Sec) from public.
- [(ii)] Encouraging commercial banks to park their surplus funds with the Reserve Bank of India (RBI).
OR
(I) Complete the following table:
- CBSE CLASS XII - 2026
- Income and Expenditure Account
- Read the following text carefully:
The government has allocated ₹ 16.27 lakh crore for major sectors, ranging from defence to rural development to social welfare to commerce and so on. Government expenditure goes to paying states' share of taxes and duties. Around 19% is spent on interest payments and 16% on central sector schemes, with subsidies, pension and other payments contributing 19%. Government revenue is divided between borrowings and other liabilities, which account for massive 27% of the incoming cash. Income tax revenue of around 19%; Goods and Services Taxes (GST) and other taxes of around 18%; Corporation taxes account for around 17%. The next highest provision on this list is ₹ 2.66 lakh crore for rural development. This will include expenditure on rural infrastructure projects and increased outlay for the popular MGNREGA scheme.
On the basis of given text and common understanding, answer the following questions:- [(i)] Identify the major sources of government revenue and state what percentage does each one of them contribute.
- [(ii)] Discuss the need for allocating funds among different sectors of the economy.
- CBSE CLASS XII - 2026
- Fiscal Deficit
View More Questions