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

State and discuss any two precautions to be considered while estimating national income by Expenditure Method.

Compare and analyse the following information related to Imports and Exports of the three neighbouring nations:

“India has failed to implement the recommendations of Education Commission of 1964-66.” Give valid arguments in support of the given statement.

Compare and analyse the Annual Growth rate of population of India and China.

Compare and analyse the sector-wise trends in employment, based on following information:

Trends in Employment (Sector-wise)

Ram is an owner of a salon. He is temporaily absent from work due to injury.

Can he be considered as worker? Explain.

“In the late 1990's India experienced a widening gap between the growth of GDP and employment generation”. Discuss. 

Assertion (A): During 1980's, economic growth rate of Pakistan was more than that of India.

Reason (R): Pakistan followed the path of mixed economic structure with equal participation of the public and the private sector.

Fiscal deficit equals :

(a) Interest payments

(b) Borrowings

(c) Interest payments less borrowing

(d) Borrowing less interest payments

Distinguish between revenue deficit and fiscal deficit.

Explain 'Revenue Deficit in a Government budget? What does it indicate?

Define fiscal deficit.

Given normal income, how can we find real income? Explain.

Explain non-monetary exchanges as a limitation of using the gross domestic product as an index of the welfare of a country

Define revenue

‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.

Give the relationship between the revenue deficit and the fiscal deficit.

Suppose that for a particular economy, investment is equal to 200, government purchases are 150, net taxes (that is lump-sum taxes minus transfers) is 100 and consumption is given by C = 100 + 0.75Y (a) What is the level of equilibrium income? (b) Calculate the value of the government expenditure multiplier and the tax multiplier. (c) If government expenditure increases by 200, find the change in equilibrium income.

Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100 (a) Find the equilibrium level of income and the autonomous expenditure multiplier in the model. (b) If government expenditure increases by 30, what is the impact on equilibrium income? (c) If a lump-sum tax of 30 is added to pay for the increase in government purchases, how will equilibrium income change?

Consider an economy described by the following functions:- C = 20 + 0.80Y, I = 30, G = 50, TR = 100, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.