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

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The expenditure multiplier is the ratio of ______.

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined

IS curve represent the combination of ______.

[1] National Income and Related Aggregates
Chapter: [1] National Income and Related Aggregates
Concept: undefined >> undefined

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Who is known as the father of modern macroeconomics?

[1] National Income and Related Aggregates
Chapter: [1] National Income and Related Aggregates
Concept: undefined >> undefined
S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

What is the revenue deficit?

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined
S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following shows fiscal deficit?

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined
S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

What will be the primary deficit?

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined
S. No. Content Rs (in crores)
1. Revenue Expenditure 100
2. Capital Receipts 40
3. Net Borrowings 38
4. Net Interest Payments 27
5. Tax Revenue 50
6. Non-tax Revenue 15

Which of the following is a non-tax revenue for the government?

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined

______ may be defined as the measure of the extent of demographic participation in social and political decision-making.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Give some examples of liberty indicators.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

State the importance of 'liberty indicator'.

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

Distinguish between 'Fixed Investment' and 'Inventory Investment'.

[3] Determination of Income and Employment
Chapter: [3] Determination of Income and Employment
Concept: undefined >> undefined

Assertion (A): The Balance of payments is in surplus, if autonomous receipts are greater than autonomous payments.

Reason (R): Autonomous transactions are determined by the difference in the Balance of Payments.

[5] Balance of Payments
Chapter: [5] Balance of Payments
Concept: undefined >> undefined

______ acts as a measure of 'the extent of democratic participation in social and political decision-making.'

[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

On the basis of the given data: 

Some Selected Indicators of Human Development, 2017-2019
Item India China Pakistan
Human Development Index (Value) 0.645 0.761 0.557
Rank (based on HDI) 130 87 154
Life Expectancy at Birth (years) 69.7 76.9 67.3
Mean years of Schooling
(% aged 15 and above)
6.5 8.1 5.2
Gross National Income per capita (PPP US$) 6681 16.057 5005
Percentage of people living Below Poverty Line (National) 21.9* 1.7** 24.3*
Infant Mortality Rate
(per 1000 live births)
29.9 7.4 57.2
Maternal Mortality Rate
(per 1 lakh births)
133 29 140
Population using at least basic Sanitation (%) 60 75 60
Population using at least basic drinking Water Source (%) 93 96 91
Percentage of Undernourished Children 37.9 8.1 37.6
  1. Identify one income indicator and one health indicator, each.
  2. Compare India and China on the basis of any one of the indicator identified above in part (i)
[3] Development Experience of India – a Comparison with Neighbours
Chapter: [3] Development Experience of India – a Comparison with Neighbours
Concept: undefined >> undefined

‘Current account deficit in an economy must be financed by a corresponding capital account surplus’.

Do you agree with the given statement? Give valid reason(s) in support of your answer.

[5] Balance of Payments
Chapter: [5] Balance of Payments
Concept: undefined >> undefined

‘Under the Ayushmaan Bharat Scheme, the Government provides free medicines to the economically backward section of the society’.

Identify and discuss the nature of the government expenditure indicated in the given statement.

[4] Government Budget and the Economy
Chapter: [4] Government Budget and the Economy
Concept: undefined >> undefined

'Deficit' in Balance of payment (BOP) refers to the excess of ______.

[5] Balance of Payments
Chapter: [5] Balance of Payments
Concept: undefined >> undefined

Distinguish between Autonomous transactions and Accommodating transactions. 

[5] Balance of Payments
Chapter: [5] Balance of Payments
Concept: undefined >> undefined

State with valid reason whether the following statement is true or false:

Rising population is not the cause for quality of human capital formation. 

[2] Current Challenges Facing Indian Economy
Chapter: [2] Current Challenges Facing Indian Economy
Concept: undefined >> undefined

Suppose, Country X, has more inflation than Country Y. Which of the following is most likely situation to happen in such a case, assuming other factors being constant?

[5] Balance of Payments
Chapter: [5] Balance of Payments
Concept: undefined >> undefined
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