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

What do you understand by normative economic analysis?

What are official reserve transactions? Explain their importance in the balance of payments.

Why is the open economy autonomous expenditure multiplier smaller than the closed economy one?

Calculate the open economy multiplier with proportional taxes, T = tY, instead of lump−sum taxes as assumed in the text.

Suppose C = 40 + 0.8Y D. T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y 

a) Find equilibrium income

(b) Find the net export balance at equilibrium income

(c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 to 50?

In the above example, if exports change to X = 100, find the change in equilibrium income and the net export balance.

Suppose C = 100 + 0.75Y D, I = 500, G = 750, taxes are 20 per cent of income, X = 150, M = 100 + 0.2Y. Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.

What are the main problems of human capital formation in India?

‘Information technology plays a very significant role in achieving sustainable development and food security’ — comment.

What is organic farming and how does it promote sustainable development?

Identify the benefits and limitations of organic farming.

Enlist some problems faced by farmers during the initial years of organic farming.

Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?

Mention the various indicators of human development.

Maternal mortality rate is high in ______.

Fill in the blank

Proportion of people below poverty line is more in __________.

Identify and discuss the nature of the following newspaper reports in terms of positive or normative economic analysis:
(i) "India jumped 23 points in the World Bank's ease of doing business index to 77^th place, highest in 2 years." – The Economic Times
(ii) "Government should further liberalise the business rules." – The Economic Times

Answer the following question.
Define "Trade surplus". How is it different from "Current account surplus"?

Answer the following question.
How are capital expenditure different from Revenue expenditure?  Discuss briefly.