Commerce (English Medium) कक्षा १२ - CBSE Question Bank Solutions for Economics

Statement 1: China introduced structural economic reforms on its own, without any pressure.

Statement 2: Scholars argue that in India, the economic reforms process led to the worsening of all the economic indicators.

On the basis of the given information, calculate the value of:

1. Fiscal deficit
2. Primary deficit

“The pre-independent India’s occupational structure experienced growing regional variation.”

Justify the above statement with valid explanation.

Identify the correct reason(s) that may affect the demand for foreign exchange in an economy.

1. Imports of visibles
2. Exports of invisibles
3. Remittances by residents working abroad
4. Purchase of assets abroad

Statement 1: Special Economic Zones (SEZ's) policy has led to huge Foreign Direct Investment (FDI) flow to China.

Statement 2: China's rapid industrial growth was the result of its economic reform in 1981.

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

Unemployment is reduced due to the measures were taken by the government. State its economic value in the context of production possibilities frontier.

Complete the following table:

What is likely to be the impact of efforts towards reducing unemployment on the production potential of the economy? Explain

Complete the following table:

Distinguish between the nominal exchange rate and the real exchange rate. If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.

Suppose it takes 1.25 yen to buy a rupee, and the price level in Japan is 3 and the price level in India is 1.2. Calculate the real exchange rate between India and Japan (the price of Japanese goods in terms of Indian goods).

What is the marginal propensity to import when M = 60 + 0.06Y? What is the relationship between the marginal propensity to import and the aggregate demand function?

Suppose the exchange rate between the Rupee and the dollar was Rs. 30=1$ in the year 2010. Suppose the prices have doubled in India over 20 years while they have remained fixed in USA. What, according to the purchasing power parity theory will be the exchange rate between dollar and rupee in the year 2030.

Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2,000 crores. The amount of budget deficit was (−) Rs 1,500 crores. What was the volume of trade deficit of the country?

Victor is able to get work only for two hours in a day. Rest of the day, he is looking for work. Is he unemployed? Why? What kind of jobs could persons like Victor be doing?

Explain the term ‘infrastructure’.

Explain the two categories into which infrastructure are divided. How are both interdependent?

Infrastructure contributes to the economic development of a country. Do you agree? Explain.

State the relation between marginal product and average product. Show this relation in a diagram.