CBSE Class 12th Economic exam is scheduled for 13th March 2020. In this article we have complied a list of important questions from Chapter 1 of Part B (Macroeconomics): Introduction. Questions given below are important questions and are expected to be asked in Class 12 Economics board exam 2019-20.
Ques 1 What are imports? (1 mark)
Solution: Goods & Services brought into a country from other country.
Ques 2 What is a market system? (1 mark)
Solution: In a market system, all goods or services come with a price (which is mutually agreed upon by the buyers and sellers) at which the exchanges take place.
Ques 3 What is a market economy? (1 mark)
Solution: In a market economy, all economic activities are organised through the market, unlike the centrally planned economy which is controlled by the government.
CBSE Class 12 Syllabus 2020: All Subjects
Ques 4 Give the meaning of capital goods.. (1 mark)
Solution: Capital goods are those goods which are repeatedly used in the process of production and help to convert intermediate goods into finished goods. These are the fixed assets of the producer, e.g. building, plant and machinery etc.
Ques 5 What is a centrally planned economy? (1 mark)
Solution: In a centrally planned economy, the government or the central authority plans all the important activities in the economy. All important decisions regarding production, exchange and consumption of goods and services are made by the government.
Ques 6 Distinguish between final goods and intermediate goods. Give suitable examples. (3 marks)
Solution: Final goods are the goods which are used either for final consumption or for investment. For example. purchase of food products by household
Download CBSE Class 12 Economics Syllabus 2019-20 in PDF format
Intermediate goods are those goods which are either for further production or for resale. For example. Milk purchased by a tea seller.
Ques 7 Distinguish between positive economics and normative economics, with suitable examples. (3 marks)
Solution:
| Positive Economics | Normative Economics
|
| Positive economics is that branch of economics which deals with economic issues as “what is”. It is based on facts and actual data. | Normative economics is that branch of economics which deals with economic issues as “what ought to be“. It is suggestive in nature.
|
| e.g. Western Railways has earned 517.41 crores by selling scrap material in 2018-19.
| e.g. the government should promote social safety nets to take care of the poor population |
Ques 8 Distinguish between Microeconomics and Macroeconomics (3 marks)
Solution:
| Microeconomics | Macroeconomics |
| Study of individual economic unit | Study of aggregate economic unit |
| Deals with determination of cost price and output in the individual markets | Deals with determination of general price and output in the whole economy |
| Takes bottoms up approach to anaylyze the economy | Takes top-down approach to anaylyze the economy |
Ques 9 State three reasons which give rise to an economic problem. (3 marks)
Solution: There are three factors responsible for the economic problems:
(i) Scarce resources
(ii) Alternative use of resources
(iii) Unlimited Wants
These factors result into the rise of problems of decision making and choice.
Ques 10 Give reason and identify whether the following are final expenditures or intermediate expenditure.
(i) Expenditure on maintenance of an office building.
(ii) Expenditure on improvement of machine in a factory (4 marks)
Solution: Expenditure on maintenance of an office building is an intermediary expenditure as it made on building which is used for the production purpose.
Expenditure on improvement of machine in a factory is a final expenditure as it is a capital investment.
Download CBSE Class 12 Economics Syllabus 2019-20 in PDF format
Chapter-wise Important Questions & Answers on Microeconomics and Macroeconomics
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