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

Explain the significance of 'medium of exchange' function of money

Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using production possibilities curve.

Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?

Give the meaning and characteristics of production possibility frontier.

Giving reason comment on the shape of production possibilities curve based on the following schedule:

A consumer consumes only two goods X and Y and is in equilibrium. Show that when the price of good X rises, the consumer buys less of good X. Use utility analysis.

A large number of technical training institutions have been started by the government. State its economic value in the context of production possibilities frontier.

A consumer consumes only two goods X and Y and is in equilibrium. Show that when the price of good X falls, demand for good X rises. Use Utility Analysis.

What are two alternative ways of determining equilibrium level of income? How are these related?

Giving reason, comment on the shape of Production Possibilities Curve based on the following table :

Giving reason, comment on the shape of Production Possibilities Curve based on the following table :

Answer the following question.
Explain the meaning of opportunity cost with the help of a production possibility schedule.

What do you mean by the production possibilities of an economy?

What is a production possibility frontier? 

What is a barter system?

What are the main functions of money?

What is transaction demand for money?

What is high-powered money?

What is marginal propensity to consume? 

Explain the automatic mechanism by which BoP equilibrium was achieved under the gold standard.