Economics
Class XII
Suggestions:
All the questions are compulsory.
Suggested time/question is max 5 minutes.
MACROECONOMICS
MONEY AND BANKING
Q1. What is a barter system? Explain the drawbacks of barter
system.
Q2. State the function of money and explain.
Q3. How does the central bank acts as banker of the commercial
banks? Explain.
Q4. Do you consider a commercial bank ‘creator of money’ in the
economy?
Q5. Briefly explain any four main function of a commercial bank.
Q6. Explain the quantitative instrument of credit control.
NATIONAL INCOME
Q1. Define macroeconomics.
Q2. What is the importance feature of a capitalist economy?
Q3. Describe the four major sectors in an economy according to the
macroeconomic point of view.
Q4. Complete the equation: NNPfc =NNPmp-____________
Q5. Distinguish between real flow and money flow. Give examples.
Q6. What are the uses of national income accounting?
Q7. From the following data:
(Rs. In crores)
• GNPfc 95,131
• Indirect taxes 14,709
• Subsidies 2,525
• Depreciation 6,625
• Net factor income from abroad 153
Calculate: (a) GNPmp (b) NNPmp (c) NDPmp (d) NDPfc
Q8. Calculate Net National disposable income from the following
data:
(Rs. in crores)
• Gross national product at factor cost 800
• Net current transfer from rest of the world 50
• Net indirect tax 70
• Consumption of fixed capital 60
• Net factor income from abroad -(10)
DETERMINATION OF INCOM AND EMPLOYMENT
Q1. In two sector economy, the saving and investment function are:
S= -10+0.2Y
I= -3+0.1Y
What will be the equilibrium level of income?
Q2. Give meaning of
• Aggregate demand
• Aggregate supply
• Excess demand
Q3. What is the consumption function?
Q4. What are the components of aggregate demand?
Q5. What is deficient demand?
Q6. MPC in an economy is0.8. In this economy, if investment is
increased by Rs. 5 crores, how much would be the MPS in an
economy.
Q7. What is inflationary gap?
Q8. Explain the concept of deflationary gap. Explain two fiscal
measures to reduce this gap.
GOVERNMENT BUDGET AND THE ECONOMY
Q1. What is a revenue budget?
Q2. What is a capital budget?
Q3. Define a government budget. State its three objectives.
Q4. Distinguish between direct and indirect tax. Give two examples
of each.
Q5. Define capital receipt of government. Discuss briefly the groups
in which these are classified.
Q6. From the budget estimates of government of India for the year
2017-2018
Calculate (i) Revenue deficit (ii) Fiscal deficit (iii) Primary deficit:
(Rs. Crores)
(a) Revenue receipts 2,037
(b) Revenue expenditure 2,811
(c) Capital receipts 1,348
(d) Recoveries of loans and other receipts 234
(e) Borrowing and other liabilities 1,113
(f) Interest payment 1,013
(g) Capital expenditure 574
BALANCE OF PAYMENT
Q1. Define foreign exchange.
Q2. How is foreign exchange rate determined under flexible
exchange rate system?
Q3. State the main sources of supply of foreign exchange.
Q4. What is foreign exchange rate? Distinguish between fixed and
flexible exchange rates.
Q5. State the main sources of demand of foreign exchange.
