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

Answer the following question.
Explain the central problem for whom to produce.

Explain how government budget can used to bring in price stability in the economy.

Government raises its expenditure on producing public goods. Which economic value does it reflect? Explain.

Explain any one objective of Government Budget.

A market for a good is in equilibrium. There is simultaneous "increase" both in demand and supply of the good. Explain its effect on the market price

Market for a good is in equilibrium. There is simultaneous "decrease" both in demand and supply of the good. Explain its effect on market price

Why do central problems of an economy arise?

Explain the role of government budget in bringing stability in the economy.

Explain how government budget can be used to influence the distribution of income?

Explain how government budget can be helpful in bringing economic stabilization in the economy.

A market for a good is in equilibrium. The demand for the good 'increases'. Explain the chain of effects of this change.

A market for a good is in equilibrium. The supply of good "decreases". Explain the chain of effects of this change

Answer the following question.
Explain how the government can use the budgetary policy in reducing inequalities in incomes.

Explain the role of the government budget infighting inflationary and deflationary tendencies.

A market for a product is in equilibrium. Demand for the product "decreases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram

What is meant by 'excess supply' of a good in a market?

Explain its chain of effects on the market of that good. Use diagram

Explain the economic stability as objectives of government budget.

Discuss the central problems of an economy.

Explain why public goods must be provided by the government.