CBSE Board Exams are starting in February. So, I have brought CBSE Board Class 12 Economics Important Questions 2024 which are being asked the same for last 3-4 years. Try to solve these questions for securing high marks in your board examinations.
You can also check the Important Questions for Physics, Chemistry, Math and Other Subjects.
CBSE Board Class 12 Economics Important Questions 2024: Objective
1. In light of the given statements, choose the correct alternative from the following:
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statements 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
2. The difference between National Income at market price and National Income at factor cost is.
(a) net indirect taxes
(b) net factor income from abroad
(c) consumption of fixed capital
(d) market price
3. The rate at which commercial banks borrow from the Reserve Bank of India to meet their long term requirements is known as.
(a) Margin requirement
(b) Bank rate
(c) Repo rate
(d) Reverse repo rate
4. Read the following news report carefully:
“The central bank has imposed fine on Hisar Urban Cooperative Bank Ltd. and Andaman and Nicobar State Cooperative Bank Ltd. for violation of banking norms.”
(a) Issue of currency
(b) Banker to the public
(c) Banker to the Government
(d) Banker’s Bank
5. If the value of investment multiplier = 4 and Dissavings = (-) 60, identify the correct Saving function from the following:
(a) S=(-) 60+0-25 Y
(b) S=(-) 600-75 Y
(c) S=(-) 60+0-20 Y
(d) S=(-) 600-60 Y
6. For the given Consumption function, C = 205 + 0-9 Y, the value of investment multiplier would be.
(a) 0.09
(b) 10-0
(c) 0-9
(d) 9.0
7. Suppose that, the Balance of Trade of a nation exhibits a deficit of Rs.50,000 crore. The import of visible items are five times of the exports of visible items. The value of exports of visible items would be crore.
(a) 20.000
(b) 10,000
(c) 12,500
(d) 20,300
8. Identify which of the following equations is true.
(a) MPC MPS = 0
(b) MPC + MPS = 1
(c) MPC MPS > 1
(d) MPC MPS < 1
9. A situation in which an able bodied person is not willing to work at the existing wage rate, is referred to as situation.
(a) Full employment
(b) Involuntary unemployment
(c) Voluntary unemployment
(d) Disguised unemployment
10. As per the Reserve Bank of India (RBI) press report, dated 22nd June, 2022: “Net Foreign Portfolio Investment (FPI) recorded an outflow of US$15.2 billion mainly from the equity market.”The above transaction will be recorded in the account on side of Balance of payments account of India. (Choose the correct alternative)
(a) current, credit
(b) current, debit
(c) capital, credit
(d) capital, debit
11. In order to tackle the problem of rising general price level in an economy, government may come up with a surplus budget to achieve the budget objective of.
(i) reallocation of resources
(ii) price stability
(iii) redistribution of income
Alternatives:
(a) (i) only
(b) (ii) only
(c) (iii) only
(d) (i) and (iii)
12. In the Indian economy. are issued by the Reserve Bank of India and acts as legal tender money.
(1) Coins of all denomination
(ii) Currency notes of various denominations, except one rupee note
(iii) Demand deposits
Alternatives:
(a) Only (i)
(b) Only (ii)
(c) Only (iii)
(d) (i) and (ii)
13. formulates the Monetary Policy in the economy.
(a) Commercial Banks
(b) International Monetary Fund
(c) Central Bank
(d) Central Government
14. formulates the Monetary Policy in the economy.
(a) Commercial Banks
(b) International Monetary Fund
(c) Central Bank
(d) Central Government
CBSE Board Class 12 Economics Important Questions 2024: Subjective
1. Define a plan.
2. Why did India opt for planning?
3. Why should plans have goals?
4. What are High Yielding Variety (HYV) seeds?
5. What is marketable surplus?
6. Explain the need and type of land reforms implemented in the agriculture sector.
7. What is Green Revolution? Why was it implemented and how did it benefit the farmers? Explain in brief.
8. Explain ‘growth with equity’ as a planning objective.
9. Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
10. Why was it necessary for a developing country like India to follow self-reliance as a planning objective?
11. What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.
12. Why was public sector given a leading role in industrial development during the planning period?
13. Explain the statement that green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during times of shortage.
14. While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the light of this fact.
15. Why. despite the implementation of green revolution, 65 per cent of India’s population continued to be engaged in the agriculture sector till 1990?
16. Though public sector is very essential for industries, many public sector undertakings incur huge losses and are a drain on the economy’s resources. Discuss the usefulness of public sector.
17. Ships and aircrafts owned by and operated by normal residents between two or more countries. e.g. Planes operated by Air India between Japan and China are part of the domestic territory of India. Similarly, planes operated by Turkish Airlines between India and Britain are a part of the domestic territory of Turkey.
18. Fishing Vessels, oil and natural gas rigs and floating platforms operated by residents of a country in the international waters where they have exclusive rights of operation. eg. fishing boats operated by Indian fishermen in international waters of Indian ocean will be considered a part of domestic territory of India.
19. Embassies, consulates and military establishments of a country located abroad. eg. Indian embassy in China is a part of the domestic territory of India.
20. Distribution of GDP: With in increase in the level of GDP distribution of goods and services also increase but the distribution is unequal, welfare level of poor people may not rise. Only fewer people get this benefit. India is facing almost in similar situation at present. Overall level of GDP has tended to rise but poor’s are still poor and hunger i.e. lives below poverty line but rich’s are more richer.
21. Composition of GDP: Composition of GDP may not be welfare oriented always. There is no direct increase in the welfare of the masses if GDP has risen owing largely to the increase in the production of defence goods. Strong defence offers a peaceful environment but living standard of poor peoples may not rise. GDP rises i.e. goods and services are produced more but it may be defence goods not consumption goods always.
22. Barter system exchange: In economies like of India, barter system of exchange is not totally non-existent. Non-monetary transactions are quite popular in rural areas where payments for farm labour are often made in kind rather than cash. But such transactions are not recorded because they are outside the monetary system of exchange. To this extent GDP remains under estimated and is therefore not a proper index of welfare.
23. Externalities: Externalities refers to good and bad impact of an
activity without paying the price or penalty for that. eg. Positive externalities occur when a beautiful garden is maintained by Mr. X raises welfare of Mr. Y even Mr. Y is not paying for it. There is no valuation of it in the estimation of GDP. Negative externalities occur when smoke omitted by factories cause air pollution or the industrial waste is driven into rivers cause water pollution. This cause a loss of social welfare. But no body is penalised for it. Impact of externalities is not accounted in the index of social welfare. So it can be under or over estimates the level of welfare.
24. Transfer earnings like old age pensions, unemployment allowances, scholarship, pocket money etc. should not be included in national income, because corresponding to transfer payment there is no value addition in the economy. Similarly, indirect taxes are not included.
25. Income from illegal activities like smuggling, theft, gambling etc. should not be included in national income. Black money is not to be counted in national income. Lottery also not included because it is a windfall gain. There is no productive activity connected with them.
26. Income from sale of second hand goods not included but commissions received on the sale of secondhand goods are to be included in national income because these are new factor income for rendering factor services.
27. Do not include income arising from the sale of financial assets. These are share, bonds, debentures, govt. Securities, etc. Buying and selling of these are not an activity related to production of goods and services. (However any Commission or brokerage charged by the intermediaries is a payment for the services rendered by them and is a factor income).
28. Imputed rent of owner occupied houses is to be treated along with rent as a component of factor incomes. Corresponding to production for self-consumption must be included.
29. Do not include expenditure on intermediate goods and services: Intermediate expenditure is already a part of final expenditure. So, including intermediate expenditure will mean double counting of expenditure.
30. Include imputed expenditure on self-consumed or own account produced: Output used for consumption and investment. eg. self consumed output by farmers, self consumed services of owner occupied houses are included.
31. Do not include expenditure on transfer payments: A transfer payment is one against which no goods or services is provided is return. eg. gift, donations, charity, scholarship, old age pension, unemployment allowances etc.
32. Do not include expenditure on financial assets: It means expenditure on buying shares, debentures, bonds, govt. securities etc. But if any brokerage or services charge is paid in buying financial assets it is treated as expenditure on buying services. Hence brokerage, commission are included.
33. Do not include expenditure on second hand goods: Expenditure on these goods was accounted when they were purchased new. Including expenditure on second hand goods would mean counting of the same expenditure twice. No fresh production takes place in such a case. However, if any commission or brokerage is paid to an intermediary in such transaction it should be treated as final expenditure because it is a fresh payment for the services purchased.
