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

(i) Study the following chart carefully and analyze the changing trends in the government expenditure on: Urban Development Rural Development 
 

“Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).”
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
The Central Bank acts as ‘Government’s Bank’ in an economy.
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.

Distinguish between fixed exchange rate system and flexible exchange rate system.
\[ \begin{array}{|l|l|l|l|} \hline \textbf{Income} & \textbf{Savings} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & (-)30 & - & - \\ \hline 100 & 20 & 1 & 0.3 \\ \hline 200 & 50 & 0.85 & 0.3 \\ \hline 300 & 80 & 0.8 & 0.3 \\ \hline \end{array} \]
\[ \begin{array}{|l|l|} \hline \textbf{S. No.} & \textbf{Items (in Rs. crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation = 400} \\ \hline (ii) & \text{Exports = 80} \\ \hline (iii) & \text{Government Final Consumption Expenditure = 500} \\ \hline (iv) & \text{Consumption of Fixed Capital = 70} \\ \hline (v) & \text{Household Final Consumption Expenditure = 640} \\ \hline (vi) & \text{Inventory Investment (Net) = (-80)} \\ \hline (vii) & \text{Imports = 90} \\ \hline (viii) & \text{Net Indirect Taxes = 60} \\ \hline (ix) & \text{Net Factor Income from Abroad = 50} \\ \hline \end{array} \]
(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.

“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.

“The participation rate of people in economic activities in rural areas is more than that in urban areas.” Justify the given statement.
Discuss any two liberalization measures pertaining to the tax reforms, introduced by the government, during the economic reform process of 1991.
“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.
___ farming is a system that is helpful in restoring, maintaining, and enhancing the ecological balance.
(Choose the correct alternative to fill in the blank):
Differentiate between public provision and public production.
Define externalities.