List of top Economics Questions asked in CBSE Class Twelve Board Exam

China was able to control its rapid population growth rate owing to __________. 
(Choose the correct alternative to fill in the blank):

Modernization is an important economic planning objective that focuses on ___________. 
(Choose the correct alternative to fill in the blank): 
[(i)] Adoption of innovative technology 
[(ii)] Equal distribution of income and wealth 
[(iii)] Bringing positive changes in the social outlook

During the British rule, India’s foreign trade had various features except ________. 
(Choose the correct alternative to fill in the blank):

The present day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where _______. 
(Choose the correct alternative to fill in the blank): 
(i) Initially reforms were initiated in agriculture, foreign trade, and investment sectors. 
(ii) The policy of dual pricing was adopted. 
(iii) The Government revoked the policy of Special Economic Zones.

_______ farming is a system that is helpful in restoring, maintaining and enhancing the ecological balance. 
(Choose the correct alternative to fill in the blank):

Read the following text carefully: Decisions taken by factors of production in the production process often may affect the stakeholders indirectly. Such impacts at times are huge but are not accounted for, while estimating national income. Economists call them as externalities and they can be positive or negative.} {In this regard, many economists suggest carbon pricing as an important tool to ensure ecological balance. Carbon pricing tries to control greenhouse gas emissions by either placing a fee on emitting or offering subsidies on lesser emission. Through instruments like carbon tax, green cess, eco tax, etc. economists suggest moving towards greener technology eliminating such negative externalities.On the basis of the given text and common understanding, answer the following questions:
(i) Define externalities.

Differentiate between public provision and public production.
\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in \( \text{Rs.} \) Crore)} \\ \hline (i) & \text{Tax Receipts} & 1,200 \\ \hline (ii) & \text{Revenue Expenditure} & 3,700 \\ \hline (iii) & \text{Non-Tax Receipts} & 2,000 \\ \hline (iv) & \text{Recovery of Loans} & 145 \\ \hline (v) & \text{Capital Expenditure} & 500 \\ \hline (vi) & \text{Disinvestment} & 120 \\ \hline (vii) & \text{Interest Payments} & 1,070 \\ \hline \end{array} \]
Distinguish between direct tax and indirect tax with the help of examples.
Complete the following table. Construct the consumption function at ₹ 200 crore level of income. \[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & -50 & -- & -- \\ \hline 100 & 0 & 1 & 0.5 \\ \hline 200 & 50 & \frac{3}{4} & 0.5 \\ \hline 300 & 100 & \frac{2}{3} & 0.5 \\ \hline \end{array} \]

"If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may lead to an unintended accumulation of inventories." 
Do you agree with the given statement? Give valid reasons in support of your answer.

For a hypothetical economy, assume the government increased an infrastructural investment by Rs. 20,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.

Increase in Income: Rs. 1,00,000 crore
Increase in Consumption Expenditure: Rs. 80,000 crore
Reserve Bank of India undertakes the important function of managing the government’s banking transactions.
Discuss the above-stated function performed by the Reserve Bank of India.
On the basis of the data given below, estimate the value of Gross National Product at Factor Cost (GNPFC): \[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 800 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Dividend} & 200 \\ \hline (vi) & \text{Depreciation} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]
"Depreciation of currency may promote exports of a nation."
Defend or refute the given statement with valid arguments.
"Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account."
Justify the given statement with a valid explanation.

Read the following statements carefully: 
Statement 1: Money is a commodity which is generally accepted as a medium of exchange. 
Statement 2: Money solved the problem of double coincidence of wants.

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity. 
Reason (R): At the break-even level of income, savings are zero.

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): The equilibrium level of income is determined, when ex-ante spending and ex-ante output are equal. 
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.

Study the following figure carefully and choose the correct alternative to fill in the blank: 
 

Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):

Read the following statements carefully: 
Statement 1: A consumption function describes the relationship between consumption and savings. 
Statement 2: Consumption function consists of two components---autonomous consumption and induced consumption. 
In the light of the given statements, choose the correct alternative from the following:

Define disguised unemployment. State its implications on output and employment in a country.
“The participation rate of people in economic activities in rural areas is more than that in urban areas.”
Justify the given statement.
“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.