List of top Economics Questions asked in CBSE CLASS XII

Discuss the likely consequence on money supply if the rate-setting panel had decreased the said rate.

Read the following text carefully from ‘The Economic Times’ dated 8th June, 2023: 
{“The Reserve Bank of India’s (RBI’s) rate-setting panel unanimously decided to keep the benchmark lending rate unchanged at 6.5%. The committee voted to remain focused on the withdrawal of accommodative monetary policy.”} 
On the basis of the given text and common understanding, answer the following questions: (a) Identify and discuss the economic issue indicated in the above text.

\[ \begin{array}{|l|l|l|l|} \hline \textbf{Income} & \textbf{Savings} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & (-)30 & - & - \\ \hline 100 & 20 & 1 & 0.3 \\ \hline 200 & 50 & 0.85 & 0.3 \\ \hline 300 & 80 & 0.8 & 0.3 \\ \hline \end{array} \]
(a) “In an economy, ex-ante Aggregate Supply is more than ex-ante Aggregate Demand.”
Explain its impact on the level of output, income, and employment.
\[ \begin{array}{|l|l|} \hline \textbf{S. No.} & \textbf{Items (in Rs. crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation = 400} \\ \hline (ii) & \text{Exports = 80} \\ \hline (iii) & \text{Government Final Consumption Expenditure = 500} \\ \hline (iv) & \text{Consumption of Fixed Capital = 70} \\ \hline (v) & \text{Household Final Consumption Expenditure = 640} \\ \hline (vi) & \text{Inventory Investment (Net) = (-80)} \\ \hline (vii) & \text{Imports = 90} \\ \hline (viii) & \text{Net Indirect Taxes = 60} \\ \hline (ix) & \text{Net Factor Income from Abroad = 50} \\ \hline \end{array} \]
Distinguish between fixed exchange rate system and flexible exchange rate system.

“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” 
The above-mentioned transactions will be recorded on ______ side of _________ account of Balance of Payments of India. 
(Choose the correct alternative to fill in the blanks)

Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below: Assertion (A): Full employment situation refers to the absence of involuntary unemployment.
Reason (R): Under full employment situation, all the willing and able-bodied people get employment at the prevailing wage rate.
Identify the correct equation from the following:

Read the following statements carefully: Statement 1: If in an economy the level of income increases (\( \Delta Y \)), it will always proportionately increase the level of consumption (\( \Delta C \)). 
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.

Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of Rs. 500 crore. The values of merchandise exports are Rs. 1200 crore and transfer payments are Rs. 400 crore. 
The value of merchandise imports would be ______ . 
(Choose the correct alternative to fill in the blank)

Suppose for a hypothetical economy: 
\(C = 100 + 0.75Y\) (where \(C =\) Consumption and \(Y =\) Income) 
\(I_0 = 400\) (\(I_0 =\) Autonomous Investment) 
Value of Investment Multiplier (\(K\)) would be _________ . 
(Choose the correct alternative to fill in the blank)

Surplus in Balance of Payments (BOP) refers to the excess of ______ . 
(Choose the correct alternative to fill in the blank)

\[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \ldots(i)\ldots \\ \hline II & 4000 & \ldots(ii)\ldots & 800 \\ \hline \ldots & \ldots & \ldots & \ldots \\ \hline Total & \ldots(iii)\ldots & \ldots(iv)\ldots & 5000 \\ \hline \end{array} \]

Total consumption expenditure by households under Keynesian Economics is a combination of ________ and _____ . 
(Choose the correct alternative to fill in the blanks)

Identify the incorrect feature(s) of money supply (\(M_1\)) from the following:
[(i)] It is measured at a point of time. 
[(ii)] It does not include stock of money held by the government. 
[(iii)] It is always the currency in the hands of the Central Bank of a nation.

(c) Elaborate any two strategies to ensure sustainable development as adopted by India.
(b) Explain any two functions performed by the Central Pollution Control Board (CPCB).
(a) State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.
(b)(ii) State the importance of “Growth with equity” as the objective of Indian economic planning.
(b)(i) “Every coin has two sides — debate over farm subsidies is one such classic example of the same.”
Justify the given statement with two arguments each in favour of and against the continuation of the farm subsidies.
(a)(ii) Clarify how the Green Revolution enabled the government to procure sufficient food grains to build stocks to be used during times of food shortages.
(b) “In the current situation, Information Technology plays a vital role in achieving food security in a nation like India.”
Justify the given statement.
(a) State any two advantages of the micro-credit system of financing in rural areas of India.
(b)(ii) Mention any two examples of diversification activities in the non-agro processing industries.