Arts (English Medium) Class 12 - CBSE Question Bank Solutions for Economics

Which of the following was the major occupation on the eve of independence?

Identify which of the following is not an example of ‘invisible item’ under Current Account of the Balance of Payments transactions:

Under the Balance of Payments structure of a nation, the two main categories of accounts for the classification of the transactions are ____________ and ____________.

i. current account

ii. unilateral transfer account

iii. capital account

iv. loan account

Identify the correct alternatives from the following:

Prior to India's independence, the stagnation in the agricultural sector was mainly caused by ____________.

In equation C = a + by, the value of b lies between ______.

Money on wings indicates ______.

Final goods refer to those goods which are used either for ______ or for ______.

Which of the following is not an indicator of human development?

Read the following statements carefully:

Statement 1: The consumption curve is an upward sloping straight line curve due to the direct relationship between income and consumption and the assumption of constant Marginal Propensity to Consume.

Statement 2: Aggregate Demand curve and Consumption curve are parallel to each other.

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

Read the following statements carefully:

Statement 1: Export of financial services by India will be recorded on credit side of current account.

Statement 2: Foreign Direct Investments in India will be recorded on credit side of capital account.

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

On the basis of following schedule, answer the given questions:

1. Calculate Marginal Propensity to Save (MPS) at ₹ 150 crores level of income.
2. What is the value of Autonomous Consumption?

"In an economy, the autonomous consumption is ₹ 100 and Marginal Propensity to Consume (MPC) is 0.6. If the equilibrium level of Income is 2,000, then the autonomous investment is  ₹ 300." Justify the statement with valid calculation.

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: 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:

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:

“The value of all goods and services can be expressed in monetary units.”

On the basis of the given statement, identify the function performed by money:

“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.

‘Money is an asset which can be stored for use in future.

In the light of given statement, identify the function of money.

If in an economy, the Investment Multiplier is 4 and Autonomous Consumption is ₹ 30 crore, the relevant consumption function would be ______.