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ISC (Science) Class 12 - CISCE Important Questions for Economics

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Economics
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A consumer spending on the purchase of goods regardless of the income in possession is an example of _______ consumption.

Appears in 1 question paper
Chapter: [0.02] Theory of Income and Employment
Concept: Consumption Function and Propensity to Save

Complete the following schedule -

Y C APC MPC
100 90 ? ?
120 108 ? ?
Appears in 1 question paper
Chapter: [0.02] Theory of Income and Employment
Concept: Consumption Function and Propensity to Save

How is it determined by using Saving and Investment approach?

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Chapter: [0.02] Theory of Income and Employment
Concept: Concept of Aggregate Demand and Aggregate Supply

Discuss the mechanism of investment multiplier with the help of a numerical.

Appears in 1 question paper
Chapter: [0.02] Theory of Income and Employment
Concept: Investment Multiplier and Its Mechanism

Medium of exchange and measure of value is ______.

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Chapter: [0.031] Money
Concept: Function of Money - Primary Function

Distinguish between:

Cash Reserve Ratio and Statutory Liquidity Ratio

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Chapter: [0.032] Banks
Concept: Central Bank Function - Banker's Bank

Differentiate between Cash Credit and Outright Loans.

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Chapter: [0.032] Banks
Concept: Central Bank Function - Controller of Credit

What is meant by the following function of the Central bank:

Clearing house

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Chapter: [0.032] Banks
Concept: Function of Central Bank - Bank of Issue

What is meant by the following function of the Central bank:

Lender of the last resort

Appears in 1 question paper
Chapter: [0.032] Banks
Concept: Function of Central Bank - Bank of Issue

Read the given extract carefully and answer the following questions.

Mr. X wanted to buy an expensive motorcycle for his son but he did not have sufficient money to buy it. He approached a public sector commercial bank for the loan. The bank asked Mr. X to deposit 20% cash of the loan amount and rest 80% of the loan amount was given by the bank.
  1. Briefly explain a Commercial Bank.
  2. What is the regulation of consumer credit in selective credit control?
  3. Name the bank which controls all the commercial banks and financial institutions in the country.
Appears in 1 question paper
Chapter: [0.032] Banks
Concept: Money Creation Or Credit Creation by the Commercial Banking System

______ is the creation of new currency to fill the gap between Government revenue and Government expenditure of the country.

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Chapter: [0.051] Fiscal Policy
Concept: Meaning of Deficit Financing

Give one difference between a Direct tax and an Indirect tax.

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Chapter: [0.051] Fiscal Policy
Concept: Direct and Indirect Tax

Explain the following method of redemption of Public Debt:

Debt conversion

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Chapter: [0.051] Fiscal Policy
Concept: Public Debt - Redemption

Explain the following method of redemption of Public Debt:

Sinking fund

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Chapter: [0.051] Fiscal Policy
Concept: Public Debt - Redemption

Briefly explain two reasons for the adverse Balance of Payments in any economy.

Appears in 1 question paper
Chapter: [4.01] Balance of Payment
Concept: Concept of Balance of Payments Account

How is the rate of exchange determined in a flexible exchange rate system?

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Chapter: [4.01] Balance of Payment
Concept: Concept of Foreign Exchange Rate

Draw a well labelled diagram of two sector model of a circular flow of income including the financial sector.

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Chapter: [6.01] Circular Flow of Income.
Concept: Circular Flow of Income (Two Sector Model)

Firm A sells flour to firm B for ₹ 100/- Firm B sells biscuits to the wholesaler C for ₹ 160/- and Firm C sells biscuits to consumers for ₹ 200/-. Hence, the gross value added is ______.

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Chapter: [6.02] Concepts and Definition
Concept: National Disposable Income (Gross and Net)

GNP(fc) = GNP(mp) - ______.

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Chapter: [6.02] Concepts and Definition
Concept: Aggregates Related to National Income - Gross National Product (GNP)

Transfer earning in National income refers to ______.

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Chapter: [6.03] Methods of Measuring National Income
Concept: Precautions and Difficulties of Measuring National Income Method
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