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

Read the following statements carefully:
Statement 1: Open Market Operations refers to purchase/sale of Government Securities (G-Sec) by the Central Bank.
Statement 2: To decrease money supply, Central Bank will sell the Government Securities to commercial banks.
Suppose, the consumption function is given as:
\[ C = 205 + 0.9Y \quad \text{(where C = Total Consumption and Y = National Income)} \]
The value of Investment Multiplier (K) would be ................
(Choose the correct option to fill in the blank)
Commercial banks are regarded as money creators because: (Choose the correct option)
Fill in the blank:
............... releases data of money supply in India. (Choose the correct option to fill in the blank)
Marginal Propensity to Consume (MPC) exhibits the slope of ............ function.
(Choose the correct option to fill in the blank)
"In the recent times through various schemes and policies, the Government of India has taken vital initiatives to generate employment directly/indirectly." Justify the statement giving valid arguments.
Justify the following statements with valid arguments:
(i) Money supply in an economy is an example of a stock variable.
(ii) The Central Bank provides several Banking services to the government.
The monetary policy is formulated by the ____ in the Indian economy.
"The government generally levies higher Goods and Services Tax (GST) on socially undesirable products like cigarettes, tobacco, liquor etc." Identify and explain the indicated government budget objective in the above statement.

In response to the problem of rapidly rising population, China introduced the ‘One Child Policy’. The policy restricted couples to having only one child. This policy helped China to limit the population growth. 
This policy led to significant consequences, such as an increase in the ageing population, gender imbalances due to male child preference and social challenges for single children, etc.
This policy was relaxed in 2015, allowing couples to have two children and further relaxed to three children in 2021.
Overall, while the One Child Policy achieved its primary goal of controlling population growth, it also created a complex set of demographic and social challenges that China continues to address today.

State and elaborate, whether the following statements are true/false, with valid arguments
Under the Golden Revolution there was tremendous growth in horticulture, making India the world leader in this field.

“The trade and investment policy initiated by the Indian Government during 1991 economic reforms involved some major decision-making with respect to local industries.” Elaborate any two major decisions and their respective impacts on the Indian economy.
State how multilateral trade is different from bilateral trade.
"All consumption goods are durable in nature." Defend or refute the given statement with a valid argument.
State one example each of a Maharatna and a Miniratna company in the public sector in India.
“British colonial rule in India resulted into systematic deindustrialisation of Indian indigenous industries.” Explain the two-fold motive of the British with valid arguments.
Discuss briefly, causes and consequences of the tax reforms initiated during economic reforms in India.
(a)
(i) Distinguish between human capital and physical capital.
(ii) Define Sustainable Development.
OR
(b)
(i) Describe briefly the importance of micro-credit programmes in Rural India.
(ii) State any one strategy involved in attaining sustainable development in India.

On the basis of the given data, estimate the value of Net Domestic Product at Factor Cost (NDPFC):

Given Data:

S.No.ItemsAmount (in ₹ Crore)
(i)Household Consumption Expenditure1,800
(ii)Gross Business Fixed Capital Formation1,150
(iii)Gross Residential Construction Expenditure1,020
(iv)Government Final Consumption Expenditure2,170
(v)Excess of Imports over Exports720
(vi)Inventory Investments540
(vii)Gross Public Investments1,300
(viii)Net Indirect Taxes240
(ix)Net Factor Income from Abroad-250
(x)Consumption of Fixed Capital440
Read the following text carefully:
The Labour Force Participation Rate (LFPR) measures the percentage of the population either employed or actively seeking employment in a nation. In India, the labour force grew by 99·2 million persons between 2000 – 2019. The labour force grew from 396·3 million to 495·5 million.
During 2012 – 2019, the labour force grew without a matching increase in employment, leading to higher unemployment.
The gender disparity in India’s labour market is notable with women’s LFPR at 32·8% in 2022, significantly lower than men’s LFPR at 77·2%. This is a major reason for India’s overall low LFPR, which is lower than the global average of 47·3%.
During 2000 – 2019, rural LFPR declined by 14·1%, compared to a 3·5% decline in urban areas. This trend reversed between 2019 – 2022, with rural LFPR increasing by 6% (especially among rural women) and urban LFPR by 2·1%. These shifts suggest that fluctuations occur in women’s labour market participation, particularly in rural areas.
This significantly affected the overall LFPR. Women join the workforce during economic hardships and move out when conditions improve.
On the basis of the given text and common understanding, answer the following questions:
(a) Define unemployment.
(b) Write the meaning of Labour Force Participation Rate (LFPR).
(c) Comment upon the gender disparities in rural and urban Labour Force Participation Rate (LFPR) during 2000 – 2019.
"Import substitution policy, if not applied carefully, can be a double-edged sword for any economy."
Do you agree with the given statement? Justify your answer with valid arguments.

State and elaborate, whether the following statements are true/false, with valid arguments
Small and marginal farmers are given preference in getting credit from non-institutional sources like Regional Rural Banks, Cooperative Banks, etc.
 

Equilibrium level of income for Economy B.
Read the following text carefully:
In an economy, a significant reduction in Aggregate demand raised concerns about future growth prospects of the country. This economic downturn underscores the urgent need for strategic measures to boost confidence of households and stimulate economic activities.
Based on the above text and common understanding, explain the measures which the government may take to stabilise the indicated situation.
Suppose, there are only three firms in a hypothetical economy, viz. A, B and C. During a given period of time, the following transactions were undertaken by them:
(I) Firm A sold goods worth ₹2,000 to Firm B and ₹1,200 to Firm C.
(II) Firm B sold goods worth ₹1,100 to Firm A and ₹3,500 to Firm C.
(III) Firm C sold to households for final consumption, goods worth ₹5,700.
Estimate the value of Gross Domestic Product at Factor Cost (GDP\(_{PC}\)), assuming the value of Net Indirect Taxes to be ₹240.