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

Read the following statements carefully.

Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and practical experiences.

Statement 2: On-the-job trainings update the employees, with the latest changes in their work field.

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

State whether the following statement is true/false, with valid argument:

Human Capital and Human Development are one and the same thing.

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

At the break-even point level of incomes for the economy is ₹ 10,000 crores and if the people tends to save 20 per cent of their additional income, then calcualte the value of autonomous consumption.

Read the following statements carefully:

Statement 1: Consumption function assumes that, consumption changes at a constant rate as income changes.

Statement 2: Autonomous consumption is the ratio of total consumption (C) to total income (Y).

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

Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.

Suppose for a given economy,

S = -60 + 0.1Y

I = ₹ 4,000 crore

(Where S = Saving Function, Y = National Income and I = Investment Expenditure)

Equilibrium level of Income would be ₹ ______ crore.

“Ravya was initially working as an office clerk in a firm. In the pursuit to attain, a higher position and income, she attended a few on-the-job training sessions. These sessions contributed positively to her skills and expertise.”

Explain the impact of Ravya’s decision on human capital formation.

What is capital expenditure?

Give the equation of Budget Line.

Explain the role of the government budget infighting inflationary and deflationary tendencies.

Calculate investment expenditure from the following date about an economy which is in equilibrium :
National Income = 1000
Marginal propensity to save = 0.20
Autonomous consumption expenditure = 100

Calculate Autonomous Consumption Expenditure from the following data about an economy which is in equilibrium: 
National income = 500
Marginal propensity to save = 0.30
Investment expenditure = 100

What is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.

Explain the concept of ‘fiscal deficit’ in a government budget. What does it indicate?

Explain the ‘redistribution of income’ objective of Government budget.

Discuss the importance of credit in rural development.

Critically evaluate the role of the rural banking system in the process of rural development in India.

Enlist some problems faced by farmers during the initial years of organic farming.

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