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

Identify, which of the following is not a feature of physical capital. (Choose the correct option)
(i) Tangibility
(ii) Tradability
(iii) Immobility
Define Current Account Surplus.
State one example of External Assistance as a component of capital account.
Define excess demand.
“In an economy, ex-ante investment (I) exceeds ex-ante savings (S).”
Explain the likely impact of the given situation on output, employment and income.
“Domestic income is always less than national income.”
Do you agree with the given statement? Support your answer with valid arguments.
“Margin requirements are extremely helpful in correcting the situation of deflationary gap in an economy.”
Justify the given statement with valid arguments.
Aggregate expenditure in the economy during an accounting year is also known as ................
(Choose the correct option to fill in the blank)
The 45° line in Keynesian economics indicates .............
(Choose the correct option to fill in the blank)
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)
Marginal Propensity to Consume (MPC) exhibits the slope of ............ function.
(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)
"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.
State one example each of a Maharatna and a Miniratna company in the public sector in India.
Discuss briefly, causes and consequences of the tax reforms initiated during economic reforms 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.