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CBSE Class 12 Pre-Board Exam 2024-25: Economics Most Important Questions with Answers – Free PDF Download

The CBSE Class 12 pre-board exams for 2024-25 are an important step in your exam preparation. These exams help you check how well you’re prepared for the final board exams.

To help you study better, we’ve created a list of the most important Economics questions with answers. This Economics question focuses on essential topics to help you perform well.

The CBSE Pre-board Exam Economics questions cover key topics. They include objective, short/long answer, and competency-based questions, all matching the latest exam pattern.

CBSE 12 Pre-board Exam 2024-25 Economics Most Important Questions

1. Read the following statements carefully :

Statement 1: If in an economy the level of income increases (△Y), it will always proportionately increase the level of consumption (△C).

Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.

In the light of the given statements, choose the correct alternative from the following:

(A) Statement 1 is true and Statement 2 is false.

(B) Statement 1 is false and Statement 2 is true.

(C) Both Statements 1 and 2 are true.

(D) Both Statements 1 and 2 are false.

Ans. (D) Both Statements 1 and 2 are false.

2. Identify the correct equation from the following :

(A) GDPMP = NNPFC + Depreciation

(B) NDPFC = NNPFC + Net Indirect Taxes

(C) GNPMP = GDPMP + Net Factor Income from Abroad

(D) NNPFC = NDPMP + Depreciation

Ans. (C) GNPMP = GDPMP + Net Factor Income from Abroad

3. Read the following statements — Assertion (A) and Reason (R). Choose the correct alternative given below :

Assertion (A) : Full employment situation refers to absence of involuntary unemployment.

Reason (R) : Under full employment situation, all the willing and able bodied people get employment at the prevailing wage rate.

Alternatives :

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is notthe correct explanation of Assertion (A).

(C) Assertion (A) is true, but Reason (R) is false.

(D) Assertion (A) is false, but Reason (R) is true.

Ans. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

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CBSE 12 Pre-board Exam 2024-25 Economics Most Important Questions Click Here

4. "As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.”

The above mentioned transactions will be recorded on ____________ side of ____________ account of Balance of Payments of India. (Choose the correct alternative to fill in the blanks)

(A) Debit, Current

(B) Credit, Capital

(C) Credit, Current

(D) Debit, Capital

Ans. (D) Debit, Capital

5. Identify the incorrect feature(s) of money supply (M1) from the following :

(i) It is measured at a point of time.

(ii) It does not include stock of money held by the government.

(iii) It is always the currency in the hands of the Central Bank of a nation.

Alternatives :

(A) (i) and (ii)

(B) (ii) and (iii)

(C) (ii) only

(D) (iii) only

Ans. (D) (iii) only

6. Total consumption expenditure by households under Keynesian Economics is a combination of __________ and __________. (Choose the correct alternative to fill in the blanks)

(A) Autonomous Consumption, Autonomous Investments

(B) Autonomous Investments, Induced Consumption

(C) Induced Investments, Autonomous Investments

(D) Autonomous Consumption, Induced Consumption

Ans. (D) Autonomous Consumption, Induced Consumption

7. Find the missing figures and choose the correct alternative :

Round Deposits Loans (80%) Reserve Ratio (20%)
I 5000 4000 ..(i)..
II 4000 ..(ii).. 800
... ... ... ...
... ... ... ...
Total ..(iii).. ..(iv).. 5000

Alternatives :

(A) 1000, 800, 20000, 25000

(B) 5000, 3200, 25000, 20000

(C) 1000, 3200, 25000, 20000

(D) 1000, 800, 20000, 25000

Ans. (C) 1000, 3200, 25000, 20000

8. Surplus in Balance of Payments (BOP) refers to the excess of ___________. (Choose the correct alternative to fill in the blank) 

(A) Autonomous payments over Autonomous receipts

(B) Current Account payments over Autonomous receipts

(C) Capital Account receipts over Capital Account payments

(D) Autonomous receipts over Autonomous payments

Ans. (D) Autonomous receipts over Autonomous payments

9. Suppose for a hypothetical economy :

C = 100 + 0·75Y      (where C = Consumption and Y = Income) 

I0 = 400                  (I0 = Autonomous Investment) 

Value of Investment Multiplier (K) would be ____________.  (Choose the correct alternative to fill in the blank)

(A) 5

(B) 4

(C) 6

(D) 3

Ans. (B) 4

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10. Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of ₹ 500 crore. The values of merchandise exports are ₹ 1200 crore and transfer payments are ₹ 400 crore.

The value of merchandise imports would be ₹ __________ crore. (Choose the correct alternative to fill in the blank)

(A) 1700

(B) 750

(C) 700

(D) 900

Ans. (C) 700

11. (a) On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDPFC) : 

S. No. Items Amount (in ₹ crore)
(i) Gross Domestic Fixed Capital Formation 200
(ii) Exports 50
(iii) Government Final Consumption Expenditure 320
(iv) Consumption of Fixed Capital 35
(v) Household Final Consumption Expenditure 470
(vi) Inventory Investment (Net) (–) 40
(vii) Imports 60
(viii) Net Indirect Taxes 50
(ix) Net Factor Income from Abroad 20

Ans. Net Domestic Product at Factor Cost (NDPFC)  = (v)+(iii)+(i)+(vi)+(ii-vii)-(iv)-(viii)

                                                                           = 470+320+200+(-40)+(50-60)-35-50

                                                                           = ₹ 855 crore

OR

(b) (i) Elaborate the concept of Externalities with the help of suitable example.

Ans. Externalities refer to benefits/harms which are caused by one entity to another without being paid/ penalised for it.

For example: Newly developed public park

(ii) Define Operating Surplus.

Ans. Factor income earned in the form of rent, royalties, interest and profits are together called ‘Operating Surplus’.

12. Distinguish between fixed exchange rate system and flexible exchange rate system.

Ans. Under the Fixed Exchange Rate System, the foreign exchange rate is fixed by the government. This exchange rate system helps in maintaining stability in the value of the domestic currency vis-à-vis foreign currencies.

                                            Whereas;

Under the Flexible Exchange Rate System, the foreign exchange rate is determined by the interaction of market forces of demand and supply. Flexible exchange rate keeps fluctuating according to the demand and supply.

13. (a) Complete the following table. Construct/Express the Consumption function at ₹ 200 crore level of income.

Income (Y)
(in ₹ crore)
Savings
(in ₹ crore)
Average Propensity to Consume (APC) Marginal Propensity to Save (MPS)
0 ( – ) 30
100 ........... 1 ...........
200 ........... 0·85 ...........
300 ........... 0·8 ...........

Ans. 

Income (Y)
(in ₹ crore)
Savings
(in ₹ crore)
Average Propensity to Consume (APC) Marginal Propensity to Save (MPS)
0 ( – ) 30
100 0 1 0.3
200 30 0·85 0.3
300 60 0·8 0.3

(Alternate answer for which marks may be awarded-Consumption at ₹ 200 crore level of income = ₹ 170)

Working Note:

At an income level of ₹ 200 crore, Marginal Propensity to Save (MPS) = 0.3 and Marginal Propensity to Consume (MPC) = 1- MPS ⇒ 1 - 0.3 = 0.7

OR

(b) "In an economy, ex-ante Aggregate Supply is less than ex-ante Aggregate Demand.”

Explain its impact on the level of output, income and employment.

Ans. In an economy, if ex-ante Aggregate Supply is less than ex-ante Aggregate Demand, it implies that households are planning to consume more than what the firms expected them to. This will lead to an unintended fall in inventories. To restore the desired level of inventories, producers may plan to expand production. As a result, there may be an increase in the level of output, employment and income in the economy.

14. Justify the following statements with valid arguments :

(a) The Central Bank is the sole currency issuing authority of an economy.

Ans. The Central Bank has the sole authority for issuing currency in the economy. This ensures uniformity in the issue of currency and it gives the Central Bank control over the money supply in the economy.

(b) Money serves as a measure of standard of deferred payments.

Ans. Deferred payments are contracted to be made at some future date. Money facilitates such transactions of borrowing and lending. Hence, money serves as a standard of deferred payments.

15. Read the following text carefully from "The Economic Times' dated 8th June, 2023 :

"The Reserve Bank of India's (RBI's) rate setting panel unanimously decided to keep the benchmark lending rate unchanged at 6·5%. The committee voted to remain focused on the withdrawal of accommodating monetary policy."

On the basis of given text and common understanding, answer the following questions:

(a) Identify and discuss the economic issue indicated in the above text.

Ans. Inflation in the economy may be the economic issue indicated in the above text. The situation of excess demand may be the underlying cause behind the decision taken by the Reserve Bank of India (RBI) to keep the benchmark lending rate unchanged at 6·5%.

(b) Discuss the likely consequence on money supply if the rate setting panel would have decreased the said rate.

Ans. If the rate setting panel would have decreased the benchmark lending rate, the commercial banks may reduce their lending rates. Consequently, it may encourage the borrowings by the general public leading to an increase in the money supply in the economy.

16. (a) Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer :

(i) Interest received on loan.

(ii) Disinvestment receipts from the sale of a government company.

(iii) Financial assistance by the Government of USA for promoting girl education in India.

Ans.

(i) Interest received on loan is a revenue receipt because it neither creates any liability nor causes a reduction in assets of the government.

(ii) Disinvestment receipts from sale of a government company are capital receipts as it causes a reduction in assets of the government.

(iii) Financial assistance by the Government of USA for promoting girl education in India is a revenue receipt as it neither creates any liability nor causes a reduction in assets of the government.

OR

(b) (i) Study the following chart carefully and analyse the changing trends in the government expenditure on :

(I) Transport

(II) Rural Development

Ans. As indicated in the given chart:

(I) Transport: The expenditure on transport accounted for ₹ 3.32 lakh crore in the year 2021-22. In the year 2022-23, a Revenue expenditure of ₹ 3.90 lakh crore was allocated for this sector. Out of the total budget expenditure of the year 2023-24, ₹ 5.17 lakh crore was allocated to transport.

(II) Rural Development: In the year 2021-22, the expenditure on rural development accounted for ₹ 2.29 lakh crore. In the year 2022-23, of the total revenue expenditure ₹ 2.43 lakh crore was allocated for rural development. ₹ 2.38 lakh crore was allocated for the development of rural sector from the total budget expenditure in the year 2023-24.

(b) (ii) Distinguish between fiscal deficit and revenue deficit.

Ans. Fiscal deficit refers to excess of the government’s total expenditure over its total receipts excluding borrowing for a fiscal year.

Whereas;

Revenue Deficit refers to the excess of government’s revenue expenditure over revenue receipts for a fiscal year.

Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 16 b(i).

Explain the stabilisation function of the Government Budget.

Ans. If an economy is facing fluctuations in income, employment and prices (inflation/deflation), the government may push for correction of the situation using budgetary (taxes/public expenditure) policies. The same may be undertaken by working on the level of Aggregate Demand, relating to the spending decisions of households and firms. 

17. (a) Discuss briefly the concept of circular flow of income in a two-sector model.

Ans. In a two-sector economy model, households are the owners of factors of production (Land, Labour, Capital, Entrepreneur). Firms combine these factors of production to produce goods and services. They make factor payments (Rent, wages, Interest, Profits) to households, which in turn, are spent by the households on the consumption of final goods and services.

Thus, the income earned by the factors of production flows back to the production units in the form of aggregate consumption expenditure. Thereby, completing the circular flow of income.

(b) “Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).”

Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.

Ans. Yes. Real Gross Domestic Product (GDP) is the money value of all the final goods and services produced in the domestic territory of an economy, measured at base year prices. Whereas, Nominal Gross Domestic Product (GDP) is money value of all the final goods and services produced in the domestic territory of an economy, measured at current year prices.

For example:

Year Price
(in ₹)
Output
(in units)
Real GDP
(P0Q1)
Nominal GDP
(P1Q1)
2010
(Base Year)
10 100 1,000 1,000
2011
(Current Year)
15 100  1,000 1,500

Real GDP is a better indicator to make comparison in terms of physical output and it eliminates the effect of price change.

18. Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below : 

Assertion (A) : The excessive regulation of permit license raj prevented certain private firms from becoming fairly competitive.

Reason (R) : Private sector wasted huge amounts in obtaining licenses rather than on improving the product quality and international competitiveness.

Alternatives :

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

(C) Assertion (A) is true, but Reason (R) is false.

(D) Assertion (A) is false, but Reason (R) is true.

Ans. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

19. In the decade of the 1970s, Pakistan nationalized its ________ industries. (Choose the correct alternative to fill in the blank) 

(A) Medical infrastructure

(B) Consumer goods

(C) Capital goods

(D) Foreign trade

Ans. (C) Capital goods

20. Read the following statements carefully :

Statement 1 : Under the colonial rule, basic infrastructure (like railways, post and telegraph etc.) was developed.

Statement 2 : The real motive behind the infrastructural development in India was to strengthen the British interests.

In the light of the given statements, choose the correct alternative from the following :

(A) Statement 1 is true and Statement 2 is false.

(B) Statement 1 is false and Statement 2 is true.

(C) Both Statements 1 and 2 are true.

(D) Both Statements 1 and 2 are false.

Ans. (C) Both Statements 1 and 2 are true.

21. Identify which of the following alternatives indicate the incorrectcomponents combination of Agriculture Marketing System :

(A) Assembling, Storage, Processing, Packaging

(B) Production, Assembling, Processing, Grading

(C) Assembling, Processing, Packaging, Transportation

(D) Processing, Packaging, Grading, Distribution

Ans. (B) Production, Assembling, Processing, Grading

22. Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below : 

Assertion (A) : World Trade Organization (WTO) is expected to establish the rule-based trading regime, to avoid unilaterally placed arbitrary restrictions by member nations.

Reason (R) : It is imperative to enlarge world production and ensure optimum utilization of world resources along with environmental protection.

Alternatives :

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is notthe correct explanation of Assertion (A).

(C) Assertion (A) is true, but Reason (R) is false.

(D) Assertion (A) is false, but Reason (R) is true.

Ans. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

23. Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below :

Assertion (A) : China has used the market mechanism to create additional social and economic opportunities for its citizens.

Reason (R) : Social infrastructure creation by the government has brought positive results in human development indicators in China.

Alternatives :

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is notthe correct explanation of Assertion (A).

(C) Assertion (A) is true, but Reason (R) is false.

(D) Assertion (A) is false, but Reason (R) is true.

Ans. (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

24. Identify from the following alternatives the incorrect objectives of regulated agriculture market :

(i) To make the marketing system efficient and effective for farmers to get best price of their products.

(ii) To discourage improvement of marketing infrastructure for farmers.

(iii) To prevent exploitation of farmers.

(iv) To discourage farmers from improving quality and quantity of their produce.

Alternatives :

(A) (i) and (ii)

(B) (i) and (iii)

(C) (iii) and (iv)

(D) (ii) and (iv)

Ans. (D) (ii) and (iv) 

25. Economic reforms were introduced in India and Pakistan in the years ___________ and ____________, respectively. (Choose the correct alternative to fill in the blanks) 

(A) 1988, 1978

(B) 1991, 1978

(C) 1991, 1988

(D) 1981, 1991

Ans. (C ) 1991, 1988 

26. Read the following statements carefully :

Statement 1 : As per the National Sample Survey Organization (NSSO), unemployment is a situation in which all those who, owing to lack of work, are not working, but are seeking work from prospective employers. They express their willingness/availability to work under the prevailing conditions of work and remuneration.

Statement 2 : Disguised Unemployment is generally a massive problem in a highly populated country like India.

In the light of the given statements, choose the correct alternative from the following :

(A) Statement 1 is true and Statement 2 is false.

(B) Statement 1 is false and Statement 2 is true.

(C) Both Statements 1 and 2 are true.

(D) Both Statements 1 and 2 are false.

Ans. (C) Both Statements 1 and 2 are true.

27. Identify which of the following is not a member nation of G20 :

(A) Brazil

(B) Australia

(C) Bangladesh

(D) Argentina

Ans. (C) Bangladesh

28. “During the colonial period, the occupational structure showed lopsided movements.”

(a) Do you agree with the given statement ? Justify your answer with valid arguments.

Ans. Yes, The occupational structure during the colonial period showed lopsided movements as:

● Parts of Madras Presidency, Bombay and Bengal witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors.

● There had been an increase in the share of workforce in agriculture in states such as Orissa, Rajasthan and Punjab.

OR

(b) Elaborate the reasons owing to which the private sector was regulated under the Industrial Policy Resolution, 1956.

Ans. The Industrial Policy Resolution, 1956 regulated the private sector through a system of licenses. This policy aimed at achieving regional equality. The government made it relatively easier to obtain an industrial license, for industrial units to be established in economically backward areas.

Moreover, to ensure judicious use of resources owned by the private sector, licenses were needed for expanding/diversifying output by existing industrial units.

29. “In India, National Education Policy 2020 has stressed a lot on in-service training of the teachers.”

(i) Identify the source of Human Capital Formation (HCF) indicated in the aforesaid statement.

Ans. On-the-job training is the source of Human Capital Formation (HCF) indicated in the aforesaid statement.

(ii) Elaborate the likely impacts of this source on the economic development of India.

Ans. On-the-job training has become an integral part of work environment in the recent times as it enhances the productive capacity of employees. It enables employees to develop skills and adapt to modern technologies. As a result of on-the-job training, an employee is likely to contribute more productively leading to the economic development of India.

30. (a) United Nations Department of Economic and Social Affairs indicated that India has overtaken China as the world’s most populous country in the month of April 2023.”

Explain the consequences of one-child policy adopted by China in the 1970s.

Ans. In the late 1970’s, owing to the population explosion and the subsequent socioeconomic concerns, China adopted the One Child Norm. This policy led to a sharp decline in its population growth rate. In addition to this, the sex ratio declined. Furthermore, the implementation of the one-child norm led to increase in the population of elderly people in proportion to young people.

(b) Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of China.

Ans. The setting up of Special Economic Zones (SEZs) in China led to a substantial increase in foreign direct investment in the economy. With the massive inflow of foreign capital and technology in China, the productive capacity increased thereby contributing to the rapid economic growth of China. 

31. (a) State and elaborate whether the following statements are true or false, with valid arguments :

(i) In the recent past, the Government of India has taken crucial steps, like Jan-Dhan Yojana, for efficient allocation of financial resources.

Ans. True, the Government of India has implemented schemes like Jan-Dhan Yojana, which has promoted thrift habits and efficient allocation of financial resources. The formal banking system has been benefitted by mobilization of a substantial amount under this yojana.

(ii) Worker – population ratio is an indicator, used for analyzing the employment situation in a nation.

Ans. True, Worker-population ratio is useful in knowing the proportion of population that is actively contributing to the production of goods and services of a country. If the ratio is higher, it means that a greater number of people are employed and vice versa. 

OR

(b) (i) Elaborate the need to promote women’s education in India.

Ans.  Promoting women's education in India is imperative for societal progress and gender equality. Educated women contribute to economic growth by entering the workforce and making informed decisions about their lives. Moreover, educating women makes a favourable impact on the fertility rate and health care of women and children. Hence, investing in women's education uplifts communities and drives sustainable development across India.

(ii) Mention any two examples of diversification activities in the non-agro processing industries.

Ans. Examples of diversification activities in the non-agro processing industries are:

• Fisheries

• Animal Husbandry

32. (a) State any two problems faced by farmers during the initial years of organic farming.

Ans. In the initial years of organic farming, farmers used to face a lot of problems such as:

• Yields from organic farming are relatively less.

• Inadequate infrastructure.

(b) “In the current situation, Information Technology plays a vital role in achieving food security in a nation like India.”

Justify the given statement

Ans. In India, Information Technology (IT) plays a crucial role as government can predict areas of food insecurity and vulnerability using appropriate information and software tools. It helps in disseminating information regarding emerging technologies and their applications, prices, weather and soil conditions for growing different crops etc. Hence, IT plays a vital role in achieving sustainable development and food security in a nation like India. 

33. (a) (i) “Under the liberalisation measures taken by the Government of India, regulation of industrial sector was extremely crucial.”

Reject or support the given statement with valid arguments.

Ans. The given statement is rejected. As the liberalisation measures curtailed many restrictions on the industrial sector.

Industrial licensing was abolished for almost all except for three industries. Many goods produced by Small Scale Industries were dereserved. In most of the industries, market has been allowed to determine the prices independently. This was necessitated by the slower industrial growth rate under the pre-reform period.

(ii) “Despite the implementation of Green Revolution, 65 per cent of India’s population continued to be engaged in the agriculture sector till the 1990s.”

Justify the given statement with valid explanation.

Ans. Some economists argue that Green Revolution did not make much impact on the occupational structure of the country, as 65% of India’s population continued to find its livelihood in agriculture. A major reason for this fairly large proportion of population in agricultural sector as the industrial and service sector were not able to absorb the people working in the agricultural sector. 

OR

(b) (i) "Every coin has two sides – debate over farm subsidies is one such classic example of the same."

Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.

Ans. The introduction of farm subsidies had been an opinionated step taken by the Government of India.

Arguments in favour of continuing farm subsidies:

• Eliminating subsidies may increase inequalities of income between rich and poor farmers.

• Most farmers (small and marginal) may not be able to afford expensive agricultural inputs without subsidies.

Arguments against farm subsidies:

• It is often argued that farm subsidies have helped the fertilizer industry much more than helping the needy farmers.

• Economists argue that subsidies are a huge burden on government’s finances.

(ii) State the importance of “Growth with equity” as the objective of Indian economic planning.

Ans. For a nation, both growth of Gross Domestic Product (GDP) and equity in distribution of income are equally important. Growth refers to an increase in a country’s capacity to produce goods and services. Equity refers to reductions in inequality of income and wealth. 

Growth with equity ensures that the fruits of economic development are enjoyed by all sections of society equitably. Hence, achieving equitable growth is an important objective that was taken into consideration in the Indian economic planning.

34. Read the following text carefully :

In order to address two major environmental concerns in India, viz. water and air pollution, the government set up the Central Pollution Control Board (CPCB) in 1974. This was followed by states establishing their own state level boards to address all the environmental concerns. They investigate, collect and disseminate information relating to water, air and land pollution, lay down standards for sewage/trade effluent and emissions. These boards provide technical assistance to governments in promoting cleanliness of streams and wells by prevention, control and abatement of water pollution, and improve the quality of air and to prevent, control or abate air pollution in the country.

These boards also carry out and sponsor investigation and research relating to problems of water and air pollution and for their prevention, control or abatement. They organize, through mass media, a comprehensive mass awareness programme for the same. The PCBs prepare manuals, codes and guidelines relating to treatment and disposal of sewage and trade effluents.

They assess the air quality through regulation of industries. In fact, state boards, through their district level officials, periodically inspect every industry under their jurisdiction to assess the adequacy of treatment measures provided to treat the effluent and gaseous emissions. It also provides background air quality data needed for industrial siting and town planning.

The pollution control boards collect, collate and disseminate technical and statistical data relating to water pollution. They monitor the quality of water in 125 rivers (including the tributaries), wells, lakes, creeks, ponds, tanks, drains and canals.

On the basis of the given text and common understanding, answer the following questions :

(a) State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.

Ans. Two major concerns owing to which the Central Pollution Control Board (CPCB) was established were:

• Water pollution

• Air pollution

(b) Explain any two functions performed by the Central Pollution Control Board (CPCB).

Ans. Functions performed by the Central Pollution Control Board (CPCB) are:

• It investigates, collects and disseminates information relating to water, air and land pollution.

• It lays down standards for sewage/trade effluent and emissions.

(c) Elaborate any two strategies to ensure sustainable development as adopted by India.

Ans. In order to ensure sustainable development, following strategies are adopted by India:

• Use of wind energy: In areas where speed of wind is usually high, windmills are used to generate electricity without any adverse impact on the environment. 

• Use of solar energy: With the help of photovoltaic cells/solar panels, solar energy can be converted into electricity. This technology is extremely useful for remote areas and is free from pollution. 

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