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

“During the colonial period, a number of socio-economic indicators were in a dilapidated state.”

List any three such indicators that led to the worsening of India’s demographic profile.

“In the late 1970s, China introduced the One-child policy that led to arrest in the population coupled with skewed sex ratio.”

Justify the given statement with valid arguments in support of your answer.

What is capital expenditure?

X and Y are complementary goods. The price of Y falls. Explain the chain of effects of this change in the market of X.

Explain the chain of an effect of excess demand of a good on it equilibrium price.

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 meant by 'excess supply' of a good in a market?

Explain its chain of effects on the market of that good. Use diagram

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

Equilibrium price of an essential medicine is too high. Explain what possible steps can be taken to bring down the equilibrium price but only through the market forces. Also explain the series of changes that will occur in the market.

Explain the implications of large number of sellers in a perfectly competitive market.

Explain why there are only a few firms in an oligopoly market. 

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

When is a firm called ‘price-taker’?

Draw average revenue and marginal revenue curves in a single diagram of a firm which can sell more units of a good only by lowering the price of that good. Explain. 

Market for a good is in equilibrium. There is an ‘increase’ in demand for this good. Explain the chain of effects of this change. Use diagram. 

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