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

Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100 (a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model. (b) If government expenditure increases by 30, what is the impact on equilibrium income? (c) If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?

Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.

We suppose that C = 70 + 0.70Y D, I = 90, G = 100, T = 0.10Y (a) Find the equilibrium income. (b) What are tax revenues at equilibrium Income? Does the government have a balanced budget?

Are the concepts of demand for domestic goods and domestic demand for goods the same?

Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.

Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.

Explain the relation between government deficit and government debt.

Does public debt impose a burden? Explain.

Are fiscal deficits inflationary?

Discuss the issue of deficit reduction.

What do you understand by G.S.T?

If inflation is higher in country A than in Country B, and the exchange rate between the two countries is fixed, what is likely to happen to the trade balance between the two countries?

Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.

Highlight the salient features of India’s pre independence occupational structure.

Agriculture sector appears to be adversely affected by the reform process. Why?

There is a downward trend in inequality world-wide with a rise in the average education levels. Comment.

Examine the role of education in the economic development of a nation.

Answer the following question.
In the given figure, what does the gap 'KT' represent? State any two fiscal measures to correct the situation.

Classify the following statement into positive economic or normative economic, with suitable reason:
Government should try to control the rising fiscal deficit.

Suppose you are a member of the "Advisory Committee to the Finance Minister of India". The Finance Minister is concerned about the rising Revenue Deficit in the budget.
Suggest anyone measure to control the rising Revenue Deficit of the government.