List of top Questions asked in CBSE CLASS XII

Define Net Factor Income from Abroad (NFIA) and discuss its components.
Using the given information, complete the following table:
Income (Y)
(in ₹ crore)		Savings 
(in ₹ crore)		Consumption 
(in ₹ crore)		Average Propensity to Consume (APC)
0(i)30-
1000301
200301700.85
300602400.8
Read the following statements carefully:
Statement 1: The price of a given currency in terms of another is known as bank rate.
Statement 2: Demand curve for foreign exchange is a downward sloping curve.
Distinguish between autonomous transactions and accommodating transactions in the Balance of Payments of the economy.
Suppose in an economy, planned spending is greater than planned output. Identify the correct option with respect to effects on the economy:
(i) Decrease in planned inventories in the economy
(ii) Rise in National Income
(iii) Decrease in real output level in the economy
(iv) Decrease in employment level in the economy
Identify, which of the following is not a source of demand for foreign exchange.
Identify, which of the following items will not be included in estimating National Income of India.
If the total credit created by the banks is ₹ 500 and Reserve Ratio is 20\%, the value of primary deposits would be ________ .
Central Bank can decrease the money supply in the economy by ________ .
"Indian economy has hugely benefited by the disinvestment policy adopted by the Government of India in the post-1991 period." Defend or refute the given statement with valid arguments.
If the value of Investment Multiplier (K) is 5, the relevant saving function would be ___________.
Read the following statements – Assertion (A) and Reason (R) carefully. Choose the correct option from those given below :
Assertion (A): Other things remaining constant, devaluation of domestic currency may lead to rise in National Income of the nation.
Reason (R): Devaluation of domestic currency refers to reduction in the value of domestic currency by the government with respect to foreign currency under the fixed exchange rate system.
If an upward sloping straight line consumption function makes an intercept at the Y-axis at a positive coordinate, it implies that Marginal Propensity to Consume (MPC) _______ and Average Propensity to Consume (APC) _______ as the income increases.
Read the following statements carefully:
Statement 1: The British policies were accountable for the commercialization of Indian agriculture.
Statement 2: In the larger interest of Indians, the British rulers focused on the infrastructural growth of India.
Discuss the likely impact of the construction of 20 new hospitals in a country on the Gross Domestic Product (GDP) and Welfare in the economy.
Distinguish between Tariffs and Quotas.
Organic farming offers a means to substitute costlier agricultural inputs with locally produced organic inputs.
Discuss briefly the foreign exchange reforms undertaken by the Government of India in the post 1991 period.
“Indian economy has greatly benefitted by the process of globalisation.”
Justify the given statement with valid arguments.
Elaborate the reasons responsible for emergence of poverty in Pakistan.
“Import substitution policy, if not applied carefully, can prove to be a double-edged sword for any economy.” Do you agree with the given statement? Justify your answer with valid arguments.
Elaborate the meaning of disguised unemployment with the help of a suitable example.
``Disposition phase of circular flow of income involves flow of factor income from firms to households.''
Justify the statement giving valid reason.
Distinguish between Multilateral Trade and Bilateral Trade.
Distinguish between stabilising measures and structural measures, as taken up by the Government of India in 1991.