Arts (English Medium) कक्षा १२ - CBSE Question Bank Solutions

Read the given case study and answer the question.

Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.

Standard economic theories failed to explain the post war rapid growth due to ______.

‘As the income increases, people tend to save more’. Justify the given statement.

State and discuss any two precautions to be considered while estimating national income by Expenditure Method.

Compare and analyse the following information related to Imports and Exports of the three neighbouring nations:

“India has failed to implement the recommendations of Education Commission of 1964-66.” Give valid arguments in support of the given statement.

Compare and analyse the Annual Growth rate of population of India and China.

Compare and analyse the sector-wise trends in employment, based on following information:

Trends in Employment (Sector-wise)

Ram is an owner of a salon. He is temporaily absent from work due to injury.

Can he be considered as worker? Explain.

“In the late 1990's India experienced a widening gap between the growth of GDP and employment generation”. Discuss. 

Assertion (A): During 1980's, economic growth rate of Pakistan was more than that of India.

Reason (R): Pakistan followed the path of mixed economic structure with equal participation of the public and the private sector.

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments

Distinguish between revenue deficit and fiscal deficit.

Explain 'Revenue Deficit in a Government budget? What does it indicate?

Define fiscal deficit.

Given normal income, how can we find real income? Explain.

Explain non-monetary exchanges as a limitation of using the gross domestic product as an index of the welfare of a country

Define revenue

‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.

Give the relationship between the revenue deficit and the fiscal deficit.

Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.