List of top Economics Questions asked in CBSE CLASS XII

In a two-sector economy, the Aggregate Demand can be determined by adding ............ and ...............
Read the following statements carefully :
Statement 1: Import of heavy machinery from Japan is a source of demand for foreign exchange.
Statement 2: Financial aid by International Bank for Reconstruction and Development (IBRD) for landslide in Wayanad (Kerala) is a source of supply of foreign exchange.
In the light of the given statements, choose the correct option from the following :
The main objective of measuring the primary deficit is to highlight present ___________.
(Choose the correct option to fill in the blank)
Read the following statements carefully:
Statement 1: Marginal Propensity to Consume (MPC) refers to the consumption per unit of income.
Statement 2:As the income increases, the proportionate increase in the level of consumption is always more than the increase in the level of income.
In the light of the given statements, choose the correct option from the following:
Under the Keynesian theory, ‘Reference Line’ is a straight line passing through the origin drawn at an angle of _______.
(Choose the correct option to fill in the blank)
Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative from the options given below:
Assertion (A): Direct taxes are imposed on income/profits of individuals/companies.
Reason (R): The burden of payment of direct taxes cannot be shifted to any other entity.
Under the ............ Exchange Rate System, the Central Bank can control the foreign exchange rate in a range bound manner.
Read the following statements carefully :
Statement 1: Public goods are those goods for which the payments are made by all the entities in the country.
Statement 2: Private goods are those goods which are provided by the government of a country at subsidised rates.
In the light of the given statements, choose the correct option from the following :
To arrive at the value of Gross Value Added at Factor Cost (GVA\(_{FC}\)), .......... must be ................. to/from Gross Value Added at Market Price (GVA\(_{MP}\)).
Read the following statements carefully :
Statement 1: The government may reduce the repo rate, to control deflationary gap prevailing in the economy.
Statement 2: The government may reduce the deflationary gap, by selling off government securities (G-Sec) in the open market.
In the light of the given statements, choose the correct option from the following :
Growing carbon footprint of industries have put power and steel sector in the spotlight as the major contributor to the climate crisis. The challenge of climate change can be tackled only by making our industries and businesses follow practices and processes that reduce their carbon footprint. It can be possible only with green financing.
Green financing aims to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities.
Global green finance has also started chasing Indian companies. Global development finance institutions and funds are ready to offer long-term support (both equity and debt) at cheap rates to projects like solar energy and hydropower.
Green finance can positively affect environment quality, economic mdevelopment and financial issues that promote the green economy, such as reducing greenhouse gas emissions, improving energy efficiency or enhancing the organic economy.
On the basis of the given text and common understanding, answer the following questions :

Government provides certain goods and services which cannot be provided by the market mechanism. Examples of such goods are national defence, roads, government administration etc. which are referred to as public goods.
There are two major differences between public and private goods. One, the benefits of public goods are available to all and are not only restricted to one particular consumer. For example, if a person wears a shirt, it will not be available to others. It is said that this person’s consumption stands in rival relationship to the consumption of others. However, if we consider a public park or measures to reduce air pollution, the benefits will be available to all. One person’s consumption of a good does not reduce the amount available for consumption for others and so several people can enjoy the benefits, that is, the consumption of many people is not ’rivalrous’.
Two, in case of private goods, anyone who does not pay for the goods can be excluded from enjoying its benefits. If you do not buy a ticket, you will not be allowed to watch a movie at a local cinema hall. However, in case of public goods, there is no feasible way of excluding anyone from enjoying the benefits of the good. That is why public goods are called non-excludable. Even if some users do not pay, it is difficult and sometimes impossible to collect fees for the public good. These non-paying users are known as ’free-riders’. Consumers will not voluntarily pay for what they can get for free and for which there is no exclusive title to the property being enjoyed. The link between the producer and consumer which occurs through the payment process is broken and the government must step in to provide for such goods.

Indian labour market indicators have improved in the last six years, as per the Periodic Labour Force Survey Data. The unemployment rate has fallen to 3.2% in 2022–23. Rising youth and female participation in the workforce present an opportunity to tap the demographic and gender dividend. The factory employment data exhibits the bounce back of the organised manufacturing sector in FY 2022–23 with rise in employment and the upscaling of factories.
The net payroll additions under EPFO have more than doubled in the past five years, signalling healthy growth in formal employment.
To generate and sustain quality employment, agro-processing and care economy are two promising candidates.
On the basis of the given text and common understanding, answer the following questions:

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.

“The disinvestment policy of India under the 1991 reforms involved selling of part of the government’s stakes in Public Sector Undertakings (PSUs).”
Explain the rationale behind the decision undertaken by the government.

“British colonial rule in India executed a systematic economic exploitation that involved the extraction of India’s resources and wealth to benefit Britain.” Justify the given statement with valid explanation.

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.
State and elaborate whether the following statements are true/false, with valid arguments: (a) The Indian economy has shown satisfactory progress towards formalization of the workforce in the recent years.
(b) In the Indian rural landscape, agricultural diversification has emerged as a reasonable alternative to fill up the gaps in income.

(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.

Read the following text carefully and compare the impact of subsequent reforms initiated by China and India.
China underwent substantial policy changes to stimulate their economy. China's economic growth was rapid in the late 1970s across various sectors. However, India had to wait much longer for its economic transformation. India's significant economic progress was only realised after the economic reforms of 1991, which were implemented out of compulsion.
On the basis of given text and common understanding, compare the impact of subsequent reforms initiated by China and India.

Using the following data, analyse the sectoral contribution of India and Pakistan towards Gross Value Added (GVA).

SectorContribution to GVADistribution of Workforce
IndiaChinaPakistanIndiaChinaPakistan
Agriculture16724432641
Industry304119252824
Services545257324635
Total100100100100100100

Study the following image carefully :

From the following, choose the correct option which indicates similarities in the policies of India and Pakistan, in the post-1947 period:

Read the following statements carefully :
Statement 1 : The purchase of food grains, made by the government on the Minimum Support Price (MSP), is maintained as buffer stock.
Statement 2 : Minimum Support Price (MSP) safeguards the farmers against any sharp fall in farm product prices.
In the light of the given statements, choose the correct option from the following :
Read the following statements carefully :
Statement 1 : The British policies led to huge employment generation in the secondary and tertiary sectors of the Indian Economy.
Statement 2 : The real motive of the colonial government’s infrastructural development was to benefit the interests of India.
In the light of the given statements, choose the correct alternative from the following :
“Suppose an imaginary economy is experiencing a situation of rise in Real Gross Domestic Product (GDP), without any corresponding adequate rise in the employment opportunities in the economy.” In economic parlance, such a situation is termed as ..................... growth.
(Choose the correct option to fill in the blank)