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

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 ______.

In an economy, the value of Marginal Propensity to Save (MPS) is 0.25, what will be the value of increase in income, if investments increased by ₹ 200 crores? 

Giving valid reason, state whether the following statement is true or false: 

Dividend received from investment abroad is recorded on the credit side of the capital account.

During the British rule in India, Indian agricultural output witnessed stagnation due to ______.

Identify the incorrect statement from the following:

Explain the central problem of "choice of technique".

Giving reason comment on the shape of Production Possibilities curve based on the following schedule :

What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat Mission) on the Production Possibilities curve of the economy and why?

What will likely be the impact of large-scale outflow of foreign capital on Production Possibilities curve of the economy and why?