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Cbse Class 12 Economics Most Important Questions Pdf Download, class 12 Economics most important objective questions, Class 12 Economics Most Important Questions

Cbse Class 12 Economics Most Important Questions

Class12th 
ChapterImportant Model Question Paper
BoardCbse Board
Book NCERT
SubjectEconomics
Medium English
Study MaterialsFree Study Materials

Class 12 Economics most important objective questions

Cbse Ncert class 12 Psychology Most Important Questions PDF

Q. 1. Who has defined economics as the science of money? (Who has defined Economics as a wealth of science?) 

Ans. Adam Smith has defined economics as the science of money.

Q. 2. What do you explain by micro economics? (What do you mean by Micro Economics?)

Ans. Microeconomics is the branch of economics that studies economic problems (or economic issues) related to individual economic units, such as a consumer or a producer. The problem of resource allocation is a major element of microeconomics. 

Q. 3. Explain the meaning of demand. (Give the meaning of demand.) 

Ans. Demand for a commodity is the quantity that is received by the buyer at a given price in a given time.

Q. 4. What is production function? (What is production function?) 

Ans. Production function means the functional relationship found between the physical factors and physical production of a commodity. In other words, production function expresses the technical relationship between the output of a firm and the physical factors of production.

Q. 5. Define market. (Define market?) 

Ans. The definition of market can be given in this way – any set of arrangements which allow people to conduct economic activities freely is called market. In a market a person can sell his surplus production to those who need his goods. A person can use the money received from sales to purchase those goods and services that he needs. In fact, market is a place where buying and selling of goods and services is done.

Class 12 Economics Most Important Questions

Q. 6. Give examples of substitute and complementary goods. 

Ans. Substitute goods – Jaggery and sugar Complementary goods Pen and ink.

Q. 7. Explain the difference between fixed cost and variable cost.

Ans. do it yourself

Q. 8. Write any three central problems of an economy. (Write any three central problems of an economy.)

Ans. do it yourself

Q. 9. What do you understand by utility? (What do you mean by utility?)

Ans. Meaning of utility in economics: The satisfaction a consumer gets from using a product is called utility. In other words, utility means the satisfaction or pleasure or benefit that a person receives from the consumption of money or property. It depends on the intensity of the need.

Q. 10. What do you understand by Lobe of Fulfillment? (What do you mean by elasticity of supply?)

Ans. The magnitude of supply means how much supply changes due to change in price. In short, price elasticity of supply expresses the degree of change in supply due to change in elasticity. If the change in price is less and the change in supply is more, then the demand is less elastic. On the contrary, if the change in price is large and the change in supply is small then supply is said to be less elastic. 

Elasticity of supply is the ratio of percentage change in supply-

Elasticity of supply (E,) Percentage change in price Percentage change in price Since price and supply change in the same direction, the coefficient of elasticity of supply is usually positive.

Class 12 Economics Most Important Questions 

Q. 11. Define monopoly. What are its characteristics? (Define monopoly. What are its main features?) 

Ans. do it yourself 

Q 12. Why does the demand line bend downwards to the right? (Why does a demand curve slope downwards to the right?) 

Ans. do it yourself 

Q. 13. What do you understand by returns to scale? (What do you mean by returns to scale?)

Ans. do it yourself

Class 12 Economics Most Important Questions 

Q. 14. Explain the law of diminishing marginal utility. (State the law diminishing marginal utility.)

Ans. do it yourself 

Or, when an item was being sold for ₹5, its demand was 100 units. Now the price of the good changes to ₹8 as a result of which the demand decreases to 50 units. Calculate price elasticity of demand. 

Ans. Suppose the initial value is P1 and the final value is P1. The quantity of a good demanded at the initial price (P.) is Q, and the quantity demanded at the final price (P.) is Q.

Q15. What do you understand by elasticity of supply? Describe the types of elasticity of supply. (What do mean by elasticity of supply? Describe the various types of elasticity of supply.)

Ans. Elasticity of supply or price elasticity of supply reflects the change in supply of a good due to changes in its price. The concept of price elasticity of supply tells us at what rate or ratio the supply of a good changes as a result of change in price. In simple words, elasticity of supply expresses the percentage change in supply as a result of percentage change in the price of a commodity.

Following are the different types of elasticity of supply-

(i) Perfectly inelastic supply – When there is no change in the quantity supplied as a result of change in the price of a commodity, then this type of supply is called inelastic.

(ii) Inelastic supply – When the percentage change in the quantity supplied of a good is less than the price, then it is less elastic. (iii) Unit elastic supply – When the change in supply of a commodity is equal to the change in price, it is called elastic supply.

(iv) Elastic supply – If the percentage change in supply is more than the percentage change in price then the supply will be price relative or elastic. (v) Perfectly elastic supply – The supply of a commodity is perfectly elastic, when

There is a large increase or decrease in supply even if there is no change in price.

Q.16. Why is the short run average cost line U-shaped? Explain briefly. (Why is short run average cost curve U-shaped? Explain briefly.) 

Ans. do it yourself

Ncert Class 12 Economics Most Important Questions 

Q. 17. What do you understand by depreciation? (What do you mean by depreciation?)

Ans. In the production process, the reduction in the value of capital goods like buildings, machines, capital, equipment etc. due to wear and tear, normal wear and tear, obsolescence (technological change) etc. is called depreciation. It is also called utilization of fixed capital and utilization or wear and tear of fixed capital.

Q. 18. What is the name of the Central Bank of India? (What is the name of central bank of India?)

Ans. The name of the central bank of India is Reserve Bank of India.

Q. 19. What is the savings function? (What is saving function?)

Ans. Saving-process (function) or tendency to save expresses the relationship between savings and income. Saving process is a schedule of savings and income at different levels of income. The relationship between savings and income is positive or direct.

Q. 20. What is the name of Keynes’s book published in 1936? (What is the name of Keynes’ book published in 1936?)

Ans. The name of Keynes’s book published in 1936 is ‘General Theory of Employment’.

Q. 21. What is called green GNP? (What is called green GNP?)

Ans. The concept of green GNP is being developed as a measure of economic growth. Efforts are being made to make GNP capable of measuring human efficiency. It is in this context that Green GNP has been formulated. Green GNP has emphasized the judicious exploitation of natural resources as the criterion for economic growth and equitable distribution of benefits of development. That is, GNP is related to judicious use of natural resources, conservation and their equitable distribution among different sections of the society.

Class 12 Economics Most Important Questions 

Q. 22. Explain the difference between Gross Domestic Product and Net National Income. (Make distinction between Gross Domestic Product and Net National Income.)

Ans. The gross value of all final goods and services produced within a country’s borders is called gross domestic product. This also includes grinding. In national income accounting, net national income is obtained by subtracting indirect taxes from the net national product. net national income households occupations

And the income of the government is included. Therefore, by doing a comparative study of Gross Domestic Product and Net National Mango, the difference between these two becomes clear. 

Q. 23. Define revenue receipts. (Define Revenue Receipts.) 

Ans. All types of taxes and fees collected by the government, interest and dividends received on investments and the amount received in return for various services are called revenue receipts.

Q. 24. Explain flexible exchange rate. (Explain flexible rate of exchange.)

Ans. This is the exchange rate which is determined by the forces of supply and demand of foreign currency in the international market. The exchange rate at which demand and supply of foreign currency becomes equal is called equilibrium exchange rate. Nowadays, economic transactions between different countries all over the world are settled on the basis of flexible exchange rates. 

Q. 25. What is meant by double counting? (What is meant by double counting?)

Ans. Double counting is an error that has occurred as a result of illogical calculations. This term is used in economics to refer to the faulty practice of counting the value of a country’s goods more than once. The problem of double counting also sometimes arises in the calculation of national income.

Q. 26. What is liquidity gap? (What is liquidity trap?)

Ans. The term liquidity is the situation where the demand for money becomes completely elastic for monetary purposes. In the case of liquidity loop, the additional injected currency is used without increasing or decreasing the interest rate.

Class 12 Economics Most Important Questions 

Q. 27. Explain the difference between balance of payments and trade balance. (Distinguish between Balance of Payment and Balance of Trade.)

Ans. The difference between these two can be clarified by doing a comparative study of balance of payments or balance of payments and trade balance or trade balance. Every country imports some goods and exports some other goods. The difference in prices between imports and exports is called trade balance.

At the international level, generally all countries import and export goods with each other. Exchange services and also transact money.

In this way, if the account of transactions on all these items is calculated after a certain period, it would be a shame for one country to take payment from another and the other country is left to pay the payment to a third country.

This type of balance between different countries is called balance of payments. mutual transactions of

Q. 28. Explain the primary functions of money. (Explain the primary function of money.)

Ans. Following are the primary functions of money- 

(1) Medium of Exchange: Since the beginning, money has fulfilled the essential function of medium of exchange in the society. As a medium of exchange, money makes the transaction of all goods possible. Producers sell their goods to wholesalers in exchange for currency. 

Wholesalers sell the same goods to consumers in exchange for currency. Similarly, every section of the society receives currency in return for its services and purchases the goods of its need with it. By acting as a medium of exchange, money has removed the inconveniences of commodity exchange.

(ii) Common Measure of Value – The value of all goods and services produced in the economy is measured by the issue. In barter, it was difficult to decide how much quantity of another commodity should be received in exchange for a particular quantity of a particular commodity.

Money has freed the society from this difficulty by fulfilling the function of general value-measure. Now the value of all goods and services is known in currency only and currency is used in various forms.

It determines the ratio between goods and services on the basis of which mutual exchange of goods and services takes place easily. 

(iii) Standard of Deferred Payments: The modern economic structure is based on credit and credit is provided in the form of currency.

In fact, the importance of credit has now increased so much that it would not be wrong to call it the cornerstone of current economic progress. In addition to current payments, money is also the basis for future payments in society. Money is the only thing in which future payments can be accounted for in such a way that neither the debtor nor the lender suffers loss.

(iv) Means of storing value (Store of Value) – It was almost impossible to store money in the barter system. The invention of currency has removed this difficulty. By accumulating the necessary purchasing power through money

He can keep it and use it whenever he wants. There is no question of it getting spoiled. By making the accumulation of money possible, money has become in the present era the only means of accumulation of capital and through it the organized form of large-scale production system. 

Q. 29. Explain circular flow of income. (Explain the circular flow of income.) 

Ans. do it yourself

Class 12 Economics Most Important Questions 

Q. 30. Explain the concept of collective demand with a suitable diagram. (Explain the concept of Aggregate Demand using a suitable diagram.)

Ans. Aggregate Demand: The total demand for goods and services in an economy is called aggregate demand and it is expressed as the total expenditure of the economy. Thus, aggregate demand is measured in terms of total expenditure on goods and services in an economy.

In other words, aggregate demand measures the total expenditure that residents of a country are willing to spend to purchase goods and services at a given level of income.

Q. 31. What is the exchange rate? How is it determined? (What is exchange rate? How is it determined?)

Ans. Exchange rate is the rate at which a currency unit of one country is exchanged for the currency of another country. In other words, the foreign exchange rate tells how many units of another country’s currency can be bought in exchange for one unit of one country’s currency.

Determination of exchange rate: Where the demand and supply of foreign currency are equal, the exchange rate is determined. The equilibrium point of demand and supply of foreign currency is when the demand and supply curves of the currency intersect each other. The exchange rate at the equilibrium point is called equilibrium exchange rate and the quantity of demand and supply is called equilibrium quantity.


NOTES & QUESTIONS ANSWER



MCQS IN ENGLISH



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कक्षा 12 अर्थशास्त्र एनसीईआरटी नोट्स


  1. व्यष्टि अर्थशास्त्र
  2. उपभोक्ता के व्यवहार का सिद्धांत
  3. उत्पादन तथा लागत
  4. पूर्ण प्रतिस्पर्धा की स्थिति में फर्म का सिद्धांत
  5. बाजार संतुलन
  6. प्रतिस्पर्धारहित बाजार
  1. परिचय
  2. राष्ट्रीय आय का लेखांकन
  3. मुद्रा एवं बैंकिंग
  4. आय का निर्धारण
  5. सरकार: कार्य और विषय क्षेत्र
  6. खुली अर्थव्यवस्था: समष्टि अर्थशास्त्र

वस्तुनिष्ठ प्रश्न MCQs


  1. व्यष्टि अर्थशास्त्र
  2. उपभोक्ता के व्यवहार का सिद्धांत
  3. उत्पादन तथा लागत
  4. पूर्ण प्रतिस्पर्धा की स्थिति में फर्म का सिद्धांत
  5. बाजार संतुलन
  6. प्रतिस्पर्धारहित बाजार
  1. परिचय
  2. राष्ट्रीय आय का लेखांकन
  3. मुद्रा एवं बैंकिंग
  4. आय का निर्धारण
  5. सरकार: कार्य और विषय क्षेत्र
  6. खुली अर्थव्यवस्था: समष्टि अर्थशास्त्र

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