List of top Economics Questions asked in CBSE CLASS XII

Identify the strategy given in the image that can be utilised for sustainable development.
China adopted _________ strategy in which farmers and industries bought and sold certain quantities at government fixed prices, while remaining transactions occurred at market prices.
The steep Indian education pyramid indicates _________.
Read the following statements – Assertion and Reason (R). Choose the correct option from those given below: Assertion : The dynamic sub-sectors like agro-processing industries, food processing industries, etc. have potential to create alternative employment opportunities. Reason (R): Men usually seek non-farm jobs, but recently, women have also started looking for such jobs.
“In the formative stages of reforms development of credit markets, administrative intervention in interest rates is both necessary and desirable.” Identify the sector under which the aforesaid reform was introduced.
Growth of rural economy depends primarily on infusion of _________ to realise higher productivity in agricultural and non-agricultural sectors.
From the types of unemployment given in Column-I and corresponding features given in Column-II, choose the correct pair:
__________ estimates India's national and per capita income during the colonial era was considered very significant.
(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:
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.
Read the following text carefully:
“A country’s total National Income (NI) at the end of the year is ₹ 80,000 crore. During the same year, the Gross Domestic Product (GDP) increased by ₹ 2,00,000 crore. Price index for capital goods at the end of year is ₹ 15 lakh crore. Additionally, country invested ₹ 8,000 crore in new capital goods industries.”
In the light of the above text, classify the items as ‘stock’ or ‘flow’ variables with valid arguments. OR The value of Nominal Gross National Product (GNP) of an economy was ₹ 2,500 crore in a particular year. The value of Gross National Product (GNP) of that country during the same year, estimated at the prices of base year was ₹ 3,000 crore.
  • [(i)] Estimate the Gross National Product (GNP) deflator (in percentage).
  • [(ii)] “The price level has risen between the base year and the year under consideration.” Defend or refute the statement with suitable argument.
Read the following text carefully:
“The Reserve Bank of India (RBI) announced a 50 basis point Repo Rate cut to 5.50% from 6%.”
In the light of the given text and common understanding, answer the following questions:
  • [(i)] Identify the economic issue indicated in the above text.
  • [(ii)] Explain the likely causes and consequences of this step of RBI on the economy.
Explain the likely impact of implementation of “Exports Promotion Scheme” of Government of India on the Balance of Payment (BoP) of the country. (Keeping other factors constant)
State the meaning of Trade Surplus.
“When initial deposits in the credit creation process remains same, the total amount of credit created rises as the value of money multiplier increases.” Defend or refute the above statement with the help of hypothetical numerical example. OR “Central Bank maintains reserves of all commercial banks and use to settle interbank claims.” Do you agree with the given statement? Give valid explanation in support of your answer.
Read the following statements carefully:
Statement 1: Brokerage earned by a dealer of second hand cars is included in the estimation of National Income.
Statement 2: Imputed value of production for self-consumption is included in National Income.
The Aggregate Demand (AD) curve lies parallel to consumption curve, indicating that both have _________.
Read the following flow chart carefully and choose the correct option:
Identify, which one of the following is not a function of Reserve Bank of India as a bank, agent and advisor to the government.
Read the following statements – Assertion and Reason (R). Choose the correct option from those given below: Assertion : Increase in exchange rate implies that the price of foreign currency in terms of domestic currency has increased. Reason (R): Balance of trade records the inflows and outflows of goods.
Sumit deposited ₹ 10 lakh in his savings account. The deposits made by him is a part of ____________ in the \(M_1\) measure of money supply.
Choose the correct consumption function from the options given below with reference to the illustrated diagram.
Identify that function of money which has effectively solved the problem of ‘double coincidence of wants’ in transactions.
Evaluate the impact of `LPG Reforms' (1991) on the Indian Economy.
Compare the development experiences of India and China on the basis of GDP growth and Sectoral contribution.
Discuss `Organic Farming' as a sustainable alternative.