Class 12 EconomicsImportant Questions for Board Exams
22
Total Questions
18
Long Answer
4
Short Answer
Introduction to Microeconomics
2 questionsWhat is opportunity cost? Explain using a Production Possibility Curve.
State two differences between microeconomics and macroeconomics.
Consumer Equilibrium and Demand
2 questionsState and explain the Law of Diminishing Marginal Utility. What are its exceptions?
What is Price Elasticity of Demand? Calculate it using the percentage method given: price changes from ₹10 to ₹12 and demand falls from 100 to 80 units.
Production and Costs
2 questionsExplain the relationship between Average Cost (AC) and Marginal Cost (MC) with a diagram.
Complete the following table and calculate MC: [TP given at different levels of labour]
The Theory of Firm under Perfect Competition
2 questionsWhat are the conditions for profit maximisation of a firm? Explain with a diagram.
A firm's fixed cost is ₹500 and variable cost is ₹30 per unit. At what price will the firm shut down if market price is ₹25?
Market Equilibrium
2 questionsExplain the effect of simultaneous increase in demand and supply on equilibrium price and quantity.
What is a price ceiling? Give one example and explain its consequences.
Non-competitive Markets — Monopoly and Monopolistic Competition
2 questionsWhat is price discrimination? Under what conditions can a monopolist practise price discrimination?
Distinguish between monopoly and monopolistic competition.
National Income Accounting
2 questionsCalculate NNP_FC from the following data: GDP_MP = ₹5,000 crore, Depreciation = ₹200 crore, NFIA = ₹100 crore, Net Indirect Taxes = ₹300 crore.
Distinguish between final goods and intermediate goods. Why should only final goods be included in GDP?
Money and Banking
2 questionsExplain the process of money creation (credit multiplication) by commercial banks with a numerical example.
The LRR is 20%. A deposit of ₹5,000 crore is made. What is the maximum deposit creation?
Determination of Income and Employment
2 questionsExplain the concept of investment multiplier with a numerical example. What is the value of K when MPC = 0.8?
An economy is in a state of deflationary gap. What corrective measures can the government take through its fiscal policy?
Government Budget and the Economy
2 questionsDistinguish between Revenue Deficit and Fiscal Deficit. Calculate Fiscal Deficit given: Total Expenditure ₹8,000 crore, Revenue Receipts ₹4,500 crore, Capital Receipts excluding borrowings ₹1,500 crore.
What are the objectives of a government budget?
Open Economy Macroeconomics — Balance of Payments
2 questionsWhat is the Balance of Payments? Distinguish between the current account and capital account.
Explain how exchange rate is determined in a free-float system using demand and supply of foreign exchange.