Arts (English Medium) Class 12 - CBSE Important Questions

Read the following statements carefully:

Statement 1: The induced consumption shows, the direct relation between consumption and income.

Statement 2: With a certain increase in income, induced consumption also increases.

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

Assertion (A): Human capital is not traded in the market; however its services are traded.

Reason (R): Human capital is intangible in nature.

Benefits of physical capital accrue only to private entities, whereas human capital provides private as well as ______ benefits.

"Active Government intervention is essential in education and health sectors in India."
Do you agree with the given statement? Give reasons in support of your answer.

"Expenditure on On-the-job training is an important means of human capital formation in an economy."
Give valid reasons to justify the given statement.

If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.

Identify, which of the following are associated with the problem of human capital formation in India?

1. Brain drain
2. Low academic standards
3. Rising population
4. Changes in social outlook

State with valid reason whether the following statement is true or false:

“Higher productivity and production are the outcome of investment in human resources.” 

State with valid reason whether the following statement is true or false:

Rising population is not the cause for quality of human capital formation. 

Statement 1: In a two sector economy, consumption expenditure and investment expenditure are the two components of Aggregate Demand.

Statement 2: Aggregate demand curve always start from point of origin with positive slope.

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

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments

Explain how government budget can used to bring in price stability in the economy.

Is the following revenue expenditure or capital expenditure in the context of government budget? Give reason.

Expenditure on a collection of taxes.

Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

Distinguish between revenue deficit and fiscal deficit.

Explain any one objective of Government Budget.

Explain how taxes and government expenditure can be used to influence revenue expenditure and capital expenditure?

Explain how government budget can be used to influence the distribution of income?

Explain the meaning of Budget set 

Define revenue