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

Explain the chain effects, if the prevailing market price is below the equilibrium price.

What is perfect oligopoly?

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.

Giving reason, state whether the following statement is true or false.
When equilibrium price of a good is less than its market price, there will be competition among the sellers.

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 

Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.

Define revenue

A market for a good is in equilibrium. The demand for the good 'increases'. Explain the chain of effects of this change.

Which one of these is a revenue expenditure?

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

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

Expenditure on purchasing computers

What is imperfect oligopoly?

Giving reason, state whether the following is a revenue expenditure or a capital expenditure in a government budget:

Expenditure on scholarships