Cbse Economics Class 12 Important Questions Answers PDF Download

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Cbse Economics Class 12 Important Questions Answers PDF Download, Class 12 Economics Most Important Objective Questions, Class 12 Economics Most Important MCQs Questions 

Cbse Economics Class 12 Important Questions Answers

ChapterImportant Model Question Paper
BoardCbse Board
Medium English 
Study MaterialsFree Study Materials

Class 12 Economics Most Important Objective Questions 

Cbse Economics Class 12 Important Questions Answers PDF Download

Q. 1. What is marginal revenue? (What is Marginal Revenue?)

Ans. The increase in total revenue by increasing the sale of one additional unit of product is called marginal revenue. 

Q. 2. What is the means of constant? (What is a fixed factor?) 

Ans. In some resources, change is not possible in the short term. Through these means, change is possible in the long run. Like land and machinery, these are called fixed assets.

Q. 3. What is the number of firms in a monopoly market? (How many firms are there in the monopoly market?)

Ans. one।

Q. 4. Sketch the budget line. (Draw the graph of a budget line.)

 Ans. Do it yourself

Q. 5. In which market AR is MR. (In which market does the condition AR = MR prevail?)

Ans. Perfect competition.

Economics Class 12 Important Questions 2024 With Answers

Q. 6. What is opportunity cost? (What is opportunity cost?)

Ans. Opportunity cost is the cost of the closest possible alternative among the available alternatives. Opportunity cost means the value of the second-best option among the available options. Let us assume that there are 3 jobs available with the following salaries:

A-600 Rs., B-500 Rs., C-400 Rs.

The first best-use price here is Rs 600. And the second best use price is Rs 500. Is of. Hence here the opportunity cost of choosing A is Rs 500. Is. Similarly, the opportunity cost of choosing B is Rs 400. Is.

Q. 7. Mention any three factors affecting demand. (Explain any three factors affecting demand.)

Ans. Factors affecting demand- 

(i) Price of the commodity – The market demand of the commodity is greatly influenced by its price. Any

The higher the price of a commodity, the lower its market demand. On the contrary, the lower the price of the commodity, the higher its market demand.

(ii) Number of consumers: The more buyers there are for a product in the market, the greater its market demand. On the contrary, the fewer consumers a product has, the less market silence it has.

(iii) Income distribution – Income distribution also has an impact on the market demand for goods. The more equal the distribution of income is, the greater will be the market demand. On the contrary, the greater the inequality in the distribution of income, the lesser will be the market demand.

Q. 8. What is the law of supply? (What is the law of supply?) 

Ans. The law of supply states that other things remaining equal, there is a positive relationship between the price and supply of a product. That is, as the price of a commodity increases, its supply also increases. The assumption ‘ceteris paribus’ means that apart from the price ‘Other elements remained constant’. 

In this, the prices of other goods, prices of inputs, changes in prices and taxes of related goods, prospects and production technology etc. remained constant. 

This is called the law of supply. The law of supply can be explained with the help of a supply schedule and curve-

The fulfilment schedule has different prices. As the prices reflect the price of the commodity. There is an increase, yes. The slope of the supply curve is positive which increases as the price of the good increases. So the quantity supplied also increases which shows that the quantity supplied increases.

Q. 9. Explain the difference between economic goods and free goods with an example. (Distinguish between economic goods and free goods with example.)

Ans. An economic good is that good for which we have to pay a price for its consumption. Like wheat, rice, cloth etc. Free goods are those things which we get from nature like river water, air etc. We do not have to pay any kind of price for their consumption, hence these are free things. 

Some services provided by the government are also free, like mid-day meals in schools, free medical services, etc. But in the production of these goods, someone has to bear the cost, hence these are also called economic goods. 

Q. 10. What is ‘equilibrium price’? Make a sketch. (What is ‘equilibrium price’? Give a diagram.)

Ans. Equilibrium Price: Equilibrium price is the price at which demand and supply are equal to each other or where buyers’ purchases or sellers’ sales are equal to each other. In a perfectly competitive market, the equilibrium price is determined by the forces of demand P and supply. The equilibrium price is determined at the point where market demand, O, equals market supply.

Class 12 Economics Most Important Questions 

Q. 11. Define price elasticity of demand. (Define price elasticity of demand.)

Ans. The ratio of the percentage change in quantity demanded as a result of a change in price to the percentage change in price is called price elasticity of demand.

Price elasticity of demand – Percentage change in quantity demanded Percentage change in price

Q. 12. Show the producer’s equilibrium with the help of the total revenue line and total cost line. Use a diagram.

Ans: Do it yourself

Q. 13. What is Param Laam?

Ans. Absolute profit is the profit that is obtained from selling an item. The ultimate profit must be such that the seller is satisfied and the consumer is also happy. Example: If the price of a pen is Rs 5. If it is the cost price, then if it is sold for Rs. 66, then the ultimate profit will be the selling price minus the cost price. That means (6-5-1) Rs. There will be an immense benefit. Ultimate profit is also called maximum profit.

Class 12 Economics Most Important Questions 

Q. 14. What do you understand by perfect competition? Explain the conditions of the short-run equilibrium of a firm under perfect competition.

Ans. Perfect Competition: Perfect competition is a market situation in which there are many buyers and sellers of a product. Sellers sell identical goods at a uniform price, the price is not determined by the firm but is determined by the industry.

Condition of equilibrium of the firm in perfect competition – The short run is this period in which production can be increased only by using more variable resources and fixed resources remain constant, fixed resources cannot change because of time. the duration is so short

That it is not possible to change them. A perfectly competitive firm reaches the equilibrium point at which marginal cost intersects the price line in an increasing state.

Q. 15. Explain consumer equilibrium in terms of a single commodity.

Ans. (i) The consumer is rational – The consumer tries to maximize his satisfaction. Therefore, he spends his money very thoughtfully on two things.

(ii) The consumer’s indifference curve is definite – the consumer pre-determines various combinations (bundles) of two goods.

(iii) Goods are homogeneous and divisible and prices of goods are stable. 

(iv) The budget line (price line) is determined according to the income of the consumer and the consumer spends his entire budget on these two goods. 

Or, explain the law of variable proportions with the help of total product and marginal product curves.

Ans. The law of variable proportions holds an important place in economics. From this rule, the short-term production function can be explained in which the quantity of one resource is changed while keeping the quantity of other resources constant.

By adding a unit of a variable input, the additional quantity of production may be greater than, equal to, or less than the amount of production obtained in the previous unit. This phenomenon itself is the law of variable proportions. 

Assumptions- This rule is based on the following assumptions

(i) Other means are constant and one means is variable.

(ii) It is possible to change the ratio of means of production.

(iii) There is no change in the technology of production.

(iv) All units of variable mass are the same (identical).

Q.16. Describe various methods of measuring the elasticity of demand. (Explain the different methods of measuring price elasticity of demand.)

Ans. Various methods of measuring elasticity of demand-

(a) Percentage or proportional measurement – ​​The method of measuring the elasticity of demand in this system is as follows-

Elasticity of demand = Percentage change in demand Percentage change in price

(i) If its value is equal to 1 then there will be isoelastic demand.

(ii) If its value is more than 1 then there will be elastic demand.

(iii) If its value is less than 1 then there will be inelastic demand. 

(b) Total Expenditure System – This system was developed by Prof. Propounded by Marshall. In this system, the elasticity of demand is measured based on a change in total expenditure due to a change in the price of a commodity. According to this method, the elasticity of demand can be equal to the unit, less than a unit or greater than a unit.

(i) Elasticity equal to unity – When total expenditure remains unchanged with a price change, the elasticity of demand is said to be equal to unity.

(ii) When the price increases, the total expenditure decreases and when the price decreases, the total expenditure increases, then it is called elasticity greater than unity. (iii) Elasticity less than unity – When total expenditure decreases when the price falls and total expenditure increases when the price increases, then elasticity of demand will be said to be less than unity.

Q. 17. What is macroeconomics? (What is Macro-Economics?)

Ans. Macroeconomics is a branch of economics in which economic problems (subjects) are studied at the level of the entire economy. 

Q. 18. Define tax. (Define Tax.) 

Ans. The biggest source of income for modern governments is tax. Tax is a compulsory payment that the government imposes on individuals and enterprises to earn income and the income received is spent to provide general benefits to the public.

Q. 19. What is a closed economy? (What is a closed economy?)

Ans. When trade and production and income and expenditure are within the domestic limits of the country, it is called a closed economy. 

Q. 20. What is appropriation? (What is investment?) 

Ans. Investment – ​​Investment means expenditure which is capital. It is done to increase things like machines, factories, houses etc. Investment means an increase in capital goods.

In the private sector, investment is made by the entrepreneur to earn profit, whereas, in the public sector, investment is made for social welfare and economic development because the main objective of the public sector is not only to earn profit.

Q. 21. What is export and import? (What are exports and imports?) 

Ans. Export – When goods produced in the country go to foreign countries for sale, it is called export. Import – When goods manufactured from abroad come within the country to meet the needs, it is called import.

Economics Class 12 Important Questions 2024 With Answers

Q. 22. What is money supply? (What is the supply of money?) 

Ans. The sum of all types of currencies in the economy is called the money supply. It is important to keep two things in mind in the supply of money.

(i) Money supply is a stock. It represents the total quantity of money available at any point in time.

(ii) Stock of currency means the stock held by the public. Stock is all stock held by the public. The Reserve Bank of India publishes data for four alternative values ​​of money supply in the country. These values ​​are (M, M., M, M) respectively.

  • Where M = currency with the public + demand for deposits of the public in banks
  • M = M + Savings deposits in post office savings banks
  • M = M + Net Term Plans of Banks
  • M = M + all deposits of Post Office Savings Organization

Q. 23. What is a regressive tax? (What is Regressive Tax?) 

Ans. The tax in which the tax rate decreases as income increases and the tax rate increases when income decreases is called regressive tax. The burden of regressive tax falls less on rich people and it falls more on poor people.

Q. 24. What is the difference between gross domestic product and gross national product?

Ans. The total value of goods and services produced in an economy within its domestic borders in one year is called gross domestic product. If depreciation is subtracted from Gross Domestic Product (GDP), then the remaining amount is called net domestic product.

Q. 25. What is the exchange rate? (What is an Exchange Rate?)

An exchange rate is the rate at which one 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 one country’s currency can be exchanged for one unit of another country’s currency.

According to Crothers, “Exchange rate is the measure of units of currency of one country received in exchange of units of currency of another country.”

Q. 26. What is trade balance? (What is the Balance of Trade?)

Ans. Trade Balance or Trade Balance: The difference between the import and export of physical items or visible items or goods is called ‘Trade Balance’.

Trade Balance Visible Exports – Visible Imports This does not include shipping, banking, insurance, interest and dividends and tourism services.

Economics Class 12 Important Questions 2024 With Answers

Q. 27. What is the marginal propensity to consume? How is it measured?

Ans. Average Propensity to Consumption (APC) The ratio of total consumption to total income is called average consumption propensity. That means APC = Y

Where, C = total consumption and Y = total income.

In marginal propensity to consume (MPC), consumption changes due to changes in income and the ratio of the changes in both is called marginal propensity to consume.

  • i.e. MPC = AC
  • Where AC = change in consumption,
  • AY = change in income 

Q. 28. What is an investment multiplier?

Ans. Investment multiplier – The ratio of increase in national income as a result of an increase in investment is called investment multiplier. As a formula-

  • Change in Income (AY)
  • Investment multiplier (K) = change in investment (AN)

In short, investment multiplier refers to the ratio of change in investment to change in income.

Q. 29. Explain voluntary unemployment and involuntary unemployment. (Explain voluntary and involuntary unemployment.)

Ans. Voluntary unemployment refers to those people who are not willing to work but adequate and right work is available for them and is not done. Or more than that, they remain unemployed by their own will. 

Involuntary unemployment occurs when a person willing to work does not get paid at the prevailing wage rate. That means they remain unemployed against their will. It is included in the labour force of the country.

Economics Class 12 Important Questions 2024 With Answers

Q. 30. Explain the reasons for the imbalance in the balance of payments. 

Ans. The following are the reasons for the imbalance in the balance of payments-

(i) When a country’s export of goods and services is more than its import. If the value of exports is more than the imports then the balance of payments will be in favour but if the value of exports is less than the value of imports then the balance of payments will be adverse.

(ii) Inequality of receipts and expenditure of transfer payments received by a country from abroad. These are shown in credit if the country receives transfer payments and in debit if the country gives transfer payments.

If transfers received from abroad exceed transfer payments to one country, the payment will go to the remaining party. On the contrary, if the country’s transfer payments are more than its receipts, then the payments go to the balance sheet. Balance of payments on a macro basis. An imbalance in the balance of payments occurs due to an imbalance in the current account and transfer accounts.

Or, explain the concept of inflationary gap with the help of a diagram. (Discuss the concept of inflationary gap with the help of a diagram.)

Ans. If aggregate demand is more than what is required to maintain full employment equilibrium in an economy, then the difference between them is called an inflationary gap.

To reduce this, employment should be increased. More employment opportunities should be provided. Efforts should be made to create an equilibrium situation of full employment balance. The gap between demand and supply should be reduced.

Q.31. Explain the following functions of the central bank-

(i) Bank of Issue, 

(ii) Banker’s Bank

Ans. The Central Bank has the following functions:

1. Issue of Currency: The Central Bank is the only apex institution for currency issues in the country. The Central Bank has to keep a safe reserve of assets worth the currency issued by it. These assets include gold, silver, coins, foreign currency and securities.

The Central Government has the right to borrow from the Central Bank. The government sells its securities to the Central Bank and whenever the Central Bank

Buys securities and issues currency equivalent to their value, thereby increasing the money supply. The Banking Department of the Central Bank deals with the operation of the currency or its disarmament. The government takes loans from the central bank to meet the budget deficit. Central Bank from the amount deposited with it or from new

Helps the government by printing notes. 2. Banker’s Bank and the Super-vision Bank: Commercial banks have to deposit a certain portion of their total deposits in the central bank, which is called the cash deposit ratio. The central bank keeps this amount safe, gives short-term loans to the banks and provides centralized clearing facilities to the banks.

The Central Bank supervises, regulates and controls commercial banks. This includes tasks like issuing licenses to banks, mergers, liquidation, management etc.

Q. 32. What are the objectives of the government budget? (What are the objectives of a government budget?) 

Ans. The government budget is the financial planning of the income and expenditure of the government. The details of all estimated government income and expenditure during a financial year are called the ‘Government Budget’. This annual statement of the Central Government is also called ‘Union Budget’ or ‘Union Budget’.

Or, what do you understand by ‘fiscal policy’ and ‘monetary policy’? be mentioned. (What do you mean by ‘fiscal policy’ and ‘monetary policy’? Explain.) 

Ans. Fiscal Government receives public income from sources like taxation, public debt etc. and spends it on administration, defence, and public services. All these are financial or fiscal activities.

The policy related to the direction and control of these activities is called fiscal policy. In other words, the policy related to control and direction of public expenditure is called ‘fiscal policy’.

Public expenditure and public income are the main fiscal instruments. Taxation is the main source of public income. Monetary Policy – ​​The policy of the government related to control and direction of the quantity of currency and credit is called ‘monetary policy’.

Monetary policy is implemented by the Central Bank of the country. The Reserve Bank implements monetary policy in India. The main scope of monetary policy is to control the quantity of credit to achieve certain objectives.

As the quantity of credit increases, investment expenditure increases and this increases the level of aggregate demand.

On the contrary, when the quantity of credit decreases, investment expenditure decreases and this reduces aggregate demand. All the measures adopted by the Central Bank to control the quantity of credit are called monetary policy instruments.



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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