Arts (English Medium) Class 12 - CBSE Important Questions for Economics

A market for a product is in equilibrium. Demand for the product "decreases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram

What is imperfect oligopoly?

Define price floor. Explain the implications of price floor.

What are two alternative ways of determining equilibrium level of income? How are these related?

Discuss the need for promoting women’s education in India.

"The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh."

If the situation of deficient demand is prevailing in the economy, what will be the impact of this action taken by the government?

'Investment multiplier and Marginal Propensity to Consume are directly related to each other'. Explain with the help of numerical example.

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.