50 MOST EXPECTED QUESTIONS
PART A: MACRO ECONOMICS
XII BOARD EXAM 2023
Q.1) Explain circular flow of income in 2 sector economy
Q.2) Explain the limitation of GDP as welfare.
Q.3) Explain problem of double counting and how it should be avoided?
Q.4) Items included or excluded in the estimation of national income or domestic income
Q.5) Precautions regarding, Production, Income & Expenditure method
Q.6) What is meant by money supply? Discuss in brief, the M1 constituents of money supply
Q.7) Explain the following functions of central bank.
a) Banker’s bank
b) Government bank
c) Supervisory bank
d) Bank of issue
Q.8) Explain how inflation and Deflation is controlled by Central Bank through Monetary and Fiscal policy.
Q.9) Explain the process of money creation by commercial bank, giving a numerical example
Q.10) What are the component of aggregate demand?
Q.11) Explain the relationship between MPC, MPS & K (with maximum and minimum value of each)
Q.12) Show the derivation of saving curve from consumption curve.
Q.13) Explain the working of investment multiplier by giving a numerical example.
Q.14) How equilibrium level of income is attained through saving and investment approach?
Q.15) Define inflationary gap and Deflationary Gap. Also Explain how to correct this through Monetary
and Fiscal Policy ?
Q.16) What are the objectives of government budget?
Q.17) How exchange rate is determined in flexible exchange rate
Q.18) Define Depreciation of Domestic currency and its impact on export and imports. (national income)
Q.19) Define Appreciation of Domestic currency and its impact on export and imports. (national income)
Q.20) Give three sources of each of demand and supply of foreign exchange rate.
Q.21) Define managed floating exchange rate
Q.22) Write any 2 Merits and demerits of Fixed and Flexible Exchange Rate.
Q.23) Explain the components of current account in BOP
Q.24) Explain the components of capital account in balance of payment
Q.25) Differentiate between the following
a) Real GDP and Nominal GDP (with formula)
b) Final goods and intermediate goods (with examples)
c) Voluntary unemployment and involuntary unemployment
d) Autonomous and Accommodating transaction in BOP
e) Devaluation and Depreciation of Domestic currency
f) Revenue expenditure and capital expenditure
g) Revenue deficit and Capital receipts
h) Balance of trade and Balance of payment
i) Current account and Capital account in BOP
j) Depreciation and Capital Loss.
k) Current account surplus and current account deficit.
l) Direct Taxes and Indirect Taxes with Example
m) Stock and Flow
ONE NUMERICAL FROM BUDGET, AD- AS AND NATIONAL INCOME
PART B: INDIAN ECONOMIC DEVELOPMENT
Q.1) What are the main reasons for stagnation in agricultural sector ? (explain land settlement system)
Q.2) Explain the type of land reforms implemented in the agricultural sector
Q.3) Discuss the role of small scale industries in the generation of employment and why they need
protection for their growth
Q.4) Decline of Handicraft industry affected the Indian economy “comment”
Q.5) Long term Goals of five year plan
Q.6) Explain the various classification of industries as per the industry policy resolution 1956.
Q.7) Discuss the industrial sector reforms introduced under the new economic policy
Q.8) What are the sources of human capital formation in India?
Q.9) When and why Reforms introduced in India?
Q.10) Difference between
a) Physical capital and Human capital
b) Human capital and Human development
c) Institutional and non institutional sources
d) Carrying capacity and Absorptive capacity of the environment
e) Bilateral and Multilateral trade
f) Tariff and Non tariff barriers
Q.11) What similar development strategies have india, china and Pakistan followed for their respective
development paths
Q.12) Why is agricultural diversification required? State the benefit of diversification and what are the Two
types of diversification
Q.13) Explain the “Great Leap forward Campaign” and Cultural revolution of China.
Q.14) What are the sources of Rural Credit (Explain every point)
Q.15) What do you mean by formal and informal sector? Discuss the condition of workers in each of these
sector.
Q.16) Explain any 3 Major components of Human Development Indicators.
Q.17) What are the measures taken by the government of India to improve agricultural marketing?
Q.18) Discuss the various remedial measures which are needed to solve the problem of unemployment
in India.
Q.19) Define Purchasing Power Parity with an Example
Q.20) What are the Reasons for the slow down of growth and re- emergence of poverty in Pakistan’s
economy.
Q.21) Explain the following
a) Green revolution and its impact
b) Positive contribution by Britishers
c) Tariff, Quota and Import substitution
d) Functions of WTO
e) NABARD
f) Outsourcing
g) Self-help group
h) Horticulture
i) Organic farming
j) Importance of Human capital Formation
Q.22) Through the help of charts, diagram and schedule answer the following
a) Distribution of workforce on the basis of region (rural and urban) in India
b) Various indicator of human development index
c) Functions of Pollution control Board.
Q.23) What are the main problem of human capital formation in India?
Q.24) Answer the following in brief:
a) Functions of environment
b) Casualisation and information of workforce
c) Ozone depletion
d) Global warming
e) Land degradation
f) Bio diversity loss
g) Step to be taken for attaining sustainable development
h) Challenges to the mechanism of agricultural marketing
Q.25) Rural economic development is essential for Indian economic development do you agree with the
above statement? Support your answer with valid reason
