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

Explain the stabilisation function of the Government Budget.
Distinguish between ‘Revenue deficit’ and ‘Primary deficit’.
Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer:
(i) Interest received on loan.
(ii) Disinvestment receipts from the sale of a government company.
(iii) Financial assistance by the Government of USA for promoting girl education in India.

Study the following chart carefully and analyse the changing trends in the government expenditure on: 
(I) Agriculture and Allied Activities 
(II) Transport 

Justify the following statements with valid arguments: Money serves as the ‘medium of exchange’ for transactional purposes in an economy.
“In an economy, ex-ante Aggregate Supply is less than ex-ante Aggregate Demand.”
Explain its impact on the level of output, income, and employment.
Complete the following table. Construct/Express the Consumption function at ₹ 200 crore level of income. \[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{Average Propensity to Consume (APC)} & \textbf{Marginal Propensity to Save (MPS)} \\ \hline 0 & -30 & 1 & 0.2 \\ 100 & 20 & 0.85 & 0.2 \\ 200 & 70 & 0.85 & 0.2 \\ 300 & 120 & 0.8 & 0.2 \\ \hline \end{array} \]

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 accommodating monetary policy.” On the basis of the given text and common understanding, answer the following questions: Identify and discuss the economic issue indicated in the above text.

Distinguish between fixed exchange rate system and flexible exchange rate system.
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (\(NDP_{FC}\)): \[ \begin{array}{|l|l|l|} \hline \textbf{S. No.} & \textbf{Items} & \textbf{Amount (in ₹ crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation} & 300 \\ (ii) & \text{Exports} & 70 \\ (iii) & \text{Government Final Consumption Expenditure} & 400 \\ (iv) & \text{Consumption of Fixed Capital} & 50 \\ (v) & \text{Household Final Consumption Expenditure} & 590 \\ (vi) & \text{Inventory Investment (Net)} & -60 \\ (vii) & \text{Imports} & 80 \\ (viii) & \text{Net Indirect Taxes} & 50 \\ (ix) & \text{Net Factor Income from Abroad} & 40 \\ \hline \end{array} \]
Read the following statements carefully:
Statement 1: If in an economy the level of income increases (\(ΔY\)), it will always proportionately increase the level of consumption (\(ΔC\)).
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 favorable balance of ₹ 500 crore. The values of merchandise exports are ₹ 1200 crore and transfer payments are ₹ 400 crore. The value of merchandise imports would be ₹ ______ . 
 

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 ____________ . 
 

Surplus in Balance of Payments (BOP) refers to the excess of  _________ .

Find the missing figures and choose the correct option: \[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \_\_\_ \\ II & 4000 & \_\_\_ & 800 \\ \vdots & \vdots & \vdots & \vdots \\ \hline \textbf{Total} & \_\_\_ & \_\_\_ & \_\_\_ \\ \hline \end{array} \]

Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .

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.

“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 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.

Read the following statements – Assertion (A) and Reason (R). Choose the correct option 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.
(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).
(b)(ii) State the importance of “Growth with equity” as the objective of Indian economic planning.
(a) State any two concerns owing to which the Central Pollution Control Board (CPCB) was established.
(a) State any two advantages of the micro-credit system of financing in rural areas of India.
(b) “In the current situation, Information Technology plays a vital role in achieving food security in a nation like India.”
Justify the given statement.