Economics (214) | Set A1 • Code 71/S/214

Ans. (D) All of the above
Justification: Services possess three distinct fundamental properties in economics:
• Intangibility: They cannot be touched or physically handled.
• Perishability: They are consumed simultaneously at the time of creation and cannot be accumulated or stored in a warehouse.
• Inseparability & Inalienability: The service cannot be separated from the service provider (transfer of ownership is not possible).

Ans. (A) Economic good
Justification: An Economic good is defined as a commodity that is scarce relative to its human demand, commands a positive monetary price, involves costs of production, and is bought and sold in the market. In contrast, Free goods exist in natural abundance and carry zero price.

Justification: Statement (A) is correct because free goods have supply exceeding demand at zero price; (B) is correct because public goods (parks, defense, roads) are non-excludable and collectively owned; and (C) is correct because durable goods have a multi-year lifespan with repeated usage.

Justification: Land encompasses all natural resources. It is a free gift of nature, fixed in total supply, and geographically completely immobile. It cannot be shifted from one geographic place to another.

Justification: A bicycle purchased by an individual household is used for direct personal transportation, satisfying household wants directly without generating commercial output. Hence, it is classified under final household consumption expenditure on durable goods.

1. Environmental Pollution: Contamination of air, water, and soil through toxic industrial emissions, plastics, and chemical waste.
2. Resource Depletion: The reckless overexploitation and destruction of natural capital, such as deforestation, soil erosion, and depletion of groundwater and fossil fuels.

Imports of India refer to all commodities and commercial services bought by Indian households, businesses, and government from other nations. India's import basket is heavily dominated by crude petroleum and mineral oils (POL), precious metals and stones, capital machinery, electronic equipment, organic chemicals, and edible oils to support industrial growth.

• Agriculture & Allied Activities: Crop farming, horticulture, and plantations.
• Animal Husbandry: Livestock rearing and dairy farming.
• Forestry and Logging: Gathering of timber and forest products.
• Fishing: Marine and inland aquaculture.
• Mining and Quarrying: Extraction of raw minerals from the earth.

Central Tendency refers to the statistical inclination of individual observations within a data distribution to cluster around a central, typical value. A measure of central tendency provides a single representative figure that summarizes an entire distribution for comparative analysis (primarily Arithmetic Mean, Median, and Mode).

A Cooperative Society is a voluntary association of individuals formed to protect and promote their common economic interests through mutual self-help. Key characteristics include:
• Democratic Governance: Operates strictly under the rule of "One Member, One Vote" irrespective of the capital contributed.
• Service Motive: Aims primarily at member welfare and eliminating middleman exploitation rather than maximizing private profits (e.g., Amul, IFFCO).

Commercial banks are financial institutions that mobilize deposits from the public and advance loans to businesses and individuals to earn profits under RBI oversight. In India, they comprise:
• Public Sector Banks: Majority-owned by the Government of India (e.g., SBI, PNB).
• Private Sector Banks: Owned by private shareholders (e.g., HDFC, ICICI).
• Foreign Banks: Registered overseas with Indian operations (e.g., Standard Chartered).

Formula: \\[\bar{X} = \frac{\sum fX}{\sum f} = \frac{333}{114} \approx \mathbf{2.92}\\] Answer: Arithmetic Mean \\(\bar{X} \approx 2.92\\)

1. Backbone for Primary and Secondary Sectors: Supplies vital infrastructural services—transportation, warehousing, communication, and banking—without which farm products and manufactured goods cannot reach consumers.
2. Largest Contributor to National GDP: Generates more than 53% of India's Gross Value Added (GVA), leading national economic expansion.
3. Employment & Foreign Exchange: Offers massive employment in hospitality, IT, logistics, healthcare, and education, generating foreign exchange via software exports and business services.

1. Automobile Exhaust: Vehicles burning petrol and diesel release carbon monoxide (\\(CO\\)), nitrogen oxides (\\(NO_x\\)), hydrocarbons, and particulate matter ($PM_{2.5}$).
2. Thermal Power Plants & Industries: Coal combustion releases sulfur dioxide (\\(SO_2\\)), fly ash, and carbon dioxide (\\(CO_2\\)).
3. Biomass & Stubble Burning: Open burning of agricultural residue, garbage, and firewood creates heavy smog.
4. Construction & Quarrying: Emits coarse mineral dust and cement particles into the ambient air.

1. Deforestation & Agricultural Expansion: Clear-cutting native woodlands for farming and commercial plantations destroys wildlife homes.
2. Infrastructure & Urbanization: Construction of roads, railway networks, and urban sprawl fragments natural ecosystems.
3. Industrial Pollution: Discharge of toxic chemical effluents, plastics, and agricultural pesticides poisons rivers and soils.
4. Open-Cast Mining: Strip mining and quarrying strip topsoil, destabilizing local ecosystems.