By QB365 on 31 Dec, 2022
QB365 provides a detailed and simple solution for every Possible Questions in Class 12 Economics Subject - Important 2 Mark English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
12th Standard
Economics
Answer all the following Questions.
Classify the economies based on status of development.
‘Circular Flow of Income’ - Define.
Write the formula for calculating GNP.
What do you mean by the term ‘Personal Income’?
What is the main feature of rural unemployment ?
What is effective demand?
What do you mean by propensity to consume?
Define Multiplier.
What is commodity money?
What is Stagflation?
Define Commercial banks.
Distinguish between CRR and SLR
What is rationing of credit?
State any two merits of trade.
What is meant by Exchange Rate?
Mention any two objectives of ASEAN.
When and where was SAARC Secretariat established?
What is public revenue?
Write a short note on zero based budget.
What do you mean by public debt?
Mention the countries where per capita carbondioxide emission is the highest in the world.
Define Global warming.
Distinguish between economic growth and development.
What are the social indicators of economic development?
What do you mean by Inferential Statistics?
Define Regression.
What are the movements of Business Cycle?
Why social accounting is considered as most useful tool of national income calculation?
What are the 2 approaches to determine equilibrium level of income?
What are the function of Money?
Answers
Economies can be classified into different types based on the Status of Development are
1. Developed
2. Underdeveloped
3. Undeveloped and
4. Developing economies
(i) Circular flow of income is a model of an economy showing connections between different sectors of an economy.
(ii) It shows flows of income, goods and services and factors of production between economic agents such as firms, households, government and nations.
\(\mathrm{GNP}=\mathrm{C}+\mathrm{I}+\mathrm{G}+(\mathrm{X}-\mathrm{M})+(\mathrm{R}-\mathrm{P})\) or \(\mathrm{GNP}_{\mathrm{MP}}=\mathrm{GDP}_{\mathrm{MP}}\) + Net Factor income from Abroad.
It is the total income received by the individuals of a country before payment of direct tax.
Personal Income = National Income
- (Social Security Contribution and undistributed corporate profits)
+ Transfer payments
The major feature of rural unemployment is the existence of unemployment in the form of disguised unemployment and seasonal unemployment.
(i) Effective demand is the money spent on consumption of goods and services and on investment.
(ii) Employment and output depends on the level of effective demand
(iii) When effective demand increases, employment will increase.
(iv) Effective demand is determined by aggregate supply and aggregate demand.
-
It is the proportion of disposable income which individuals spend on consumption.
Muliplier is the ratio of the change in national income to change in Investment.
K = \(\frac{ΔY}{ΔI}\)
(i) Surplus goods were exchanged for money which in turn was exchanged for other needed goods.
(ii) Goods like furs, skins, salt, rice, wheat, utensils, weapons were used as money
Stagflation is a combination of stagnant economic growth, high unemployment and high inflation.
A Commercial bank is a financial institution that accepts deposits and advances loans and are profit motivated.
(i) SLR is the amount which a bank has to keep with itself in the form of cash, gold or approved securities.
(ii) CRR is the proportion of deposits which the bank has to keep with RBI in the form of cash.
(i) It aims to control and regulate the purposes for which credit is granted by commercial banks.
(ii) It is of 2 types: variable portfolio ceiling and variable capital asset ratio
(i) Availability of variety of goods for consumption.
(ii) Generation of more employment.
(iii) Industrialization of backward nations.
(iv) Division of labour and specialisation.
The rate at which one currency is exchanged for another currency.
(i) To accelerate the economic growth, social progress and cultural development in the region.
(ii) To promote regional peace and stability and adherence to the principles of the UN Charter.
The SAARC Secretariat was established in Kathmandu (Nepal) on 16th January 1987.
(i) The income of the government through all sources is public revenue.
(ii) Public revenue deals with the methods of raising public revenue such as tax and non-tax, the principles of taxation, rates of taxation, impact, incidence and shifting of taxes and their effects.
(i) It involves fresh evaluation of expenditure in the Government budget assuming it as a new item.
(ii) A review is made to justify the project based on the socio-economic objectives and priorities of the society.
(iii) Government of India presented Zero Base Budgeting in 1987-88.
When the responsibilities of the state increase, it supplements traditional revenue sources by borrowing from individuals and institutions within and outside the country. This is public debt.
China, USA, India, Russia, Japan.
Global warming is the current increase in temperature of the earth's surface (both land and water) and its atmosphere.
Economic Growth | Economic Development |
---|---|
Deals with the problems of develop ed countries |
Deals with the problems of UDCs (Under Developed Countries) |
Change is gradual and stead | Change is discontinuous and s spontaneous |
Means more output | Means not only more output but also its composition. |
Concerns Quantitative aspects i.e. increase in per capita income | Quantitative as well as Qualitative |
Narrow Concept | Wider Concept Development = Growth + Change. |
Basic and collective needs of the people - health, education, sanitation, water, food, housing facilities.
The branch of statistics concerned with using sample data to make an inference about a population of data is called Inferential Statistics.
(i) Regression means going back and it is a mathematical measure showing the average relationship between two variables.
(ii) It indicates the cause and effect relationship between the variables and establishes functional relationship.
The movements of business cycles are,
(i) Boom
(ii) Recession
(iii) Depression and
(iv) Recovery
1. The social accounting framework is useful for economists as well as policy makers, because it represents the major economic flows and statistical relationships among various sectors of the economic system.
2. It becomes possible to forecast the trends of economy more accurately
1. Aggregate demand - Aggregate supply approach
2. Saving - Investment approach
(i) Medium of exchange
(ii) Store of value
(iii) Measure of value
(iv) Standard of deferred payment