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ECONOMICS CLASS XII UNAVOIDABLE QUESTIONS FOR HIGHER SECONDARY EXAMINATION, MARCH,2024
Prepared by Sunikumar VK, HSST Senior Sel. Gr Economics, GHSS Moolankave, Wayanad
(NB: Blue colours and most important questions)

Chapter 1 25. List out five degrees of Elasticity.

1. Distinguish between Microeconomics and 26. What are different methods of measurement of
Macroeconomics Price elasticity of demand?
2. Feature of capitalism
27. Quantity demanded rises from 10 kg to 30 kg as
3. Features of socialism
4. Define PPC. a result of fall in price from 6 to 4.
5. Opportunity cost & Marginal Opportunity cost 28. Find Expenditure and Determine elasticity.
6. Discuss the central problems of an economy. Price Quantity Expenditure Elasticity
Chapters 2 100 10
7. Define Marginal utility 200 9
8. Explain the relationship between TU & MU. 300 6
9. Explain the Law of Diminishing Marginal 400 4
Utility.
10. Find MU for the table.
29. Mark elasticity at point A, B, C, D and E
Consumption 0 1 2 3 4 5
TU 0 10 14 16 16 13 A
11. Find TU for the table. Price
B
Consumption 0 1 2 3 4 5 C
MU 0 7 5 3 0 -1
D
12. The price of good 1 and good 2 are Rs 5 and Rs
8 respectively, and the income of the consumer is E
Rs 40. Answer the following questions(8 Mark)
a) Frame budget set equation Demand
b) Frame budget equation 30. List out any 3 determinants of elasticity.
c) How much quantity that the consumer can Chapter 3
buy if he spends Rs 40 for good 1? 30. What is production function?
d) How much quantity that the consumer can 31. What is Law of variable proportion? Explain.(8
buy if he spends Rs 40 for good 2? mark)
e) Draw budget line 32. What are the relationship between TP and MP?
f) Find slope of Budget line
13. Define Indifference curve 33. Find MP and AP and draw diagram
14. Defined Indifference Map Labor TP MP AP
15. What are the properties of Indifference Curve? 0 0 - -
16. Discuss consumer’s equilibrium/Optimum 1 10
choice of the consumer. (5 Mark) 2 15
17. List out any four factors depends on Demand? 3 23
18. Explain Law of demand 4 23
19. Distinguish between Normal good and Inferior 5 20
goods 34. Complete the table
20. Distinguish between Substitute and Labor TP MP AP
Complementary goods 0 0 - -
21. Define Giffen goods 1 5
22. Distinguish between Movement along the 2 3
demand curve and shift of Demand curve 3 4
23. What is market demand? 4 12
24. Define Price elasticity of demand 5 -2
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35. What are the relationship between AP and MP? 51. Explain geometric method of measurement of
36. Explain three Laws of Production price elasticity of supply
function.(Hints:IRS,CRS and DRS) Chapter 5
37. Classify the following into fixed cost and 52. What do you mean by Market equilibrium?
variable cost: electricity, equipment, rent, 53. qs = 10 + p and qd = 30 − 3p are supply and
wages for temporary employees, minimum demand functions respectively. Find equilibrium
electricity charge, raw materials, building, price and quantity. (2 mark)
purchase of land, water charge, machine 54. Explain the effects of price ceiling and price
floor
38. Complete the table: (8 Mark) Chapter 7
55. ‘The General theory of employment, Interest
q FC VC TC AFC AVC AC MC and Money’ was written by _____
0 10 0 - - - - 56. Discuss the emergence of macroeconomics.
1 6 57. What are the different sectors of the economy?
2 10 58. Classify the following variables related to
3 12 Microeconomics and Macroeconomics:
4 13 GDP, PCI, prince, supply of money, price level,
5 15 saving, production of a firm, investment,
6 18 savings, fiscal policy, inflation,
7 23
39. Complete the table: Chapter 8:
q FC VC TC AFC AVC AC MC 59. Explain Circular flow of income and
0 6 0 - - - - expenditure. (5 Mark)
1 2 60. Classify the following into stocks and flows:
2 10 Investment, Income, Wealth, supply of money,
3 2 3 spending of money, Capital formation, water in
4 4 a river, water in a tank
61. Complete the table
5 6
Factors of production Rewards
6 36
Land
7 42
Wages
40. Explain the relationship between SAC and SMC
Capital
41. Explain the relationship between LAC and LMC
Profit
Chapters 4 62. Fill in the blanks with appropriate terms in
42. What is Perfect competition? List out its brackets:
defining features. (Depreciation, Net-indirect taxes, Net-factor
43. What are the conditions of profit maximizing income from abroad)
firm under perfect competition? Explain with a) NDP= NDPFC +______
the help of diagram. (5 Mark) b) GDP= GNP -______
44. Find AR and MR c) NNP= GDP + ____- _____
Output 0 1 2 3 4 5 d) NNPFC= GNP - _____ -______
TR - 20 24 30 40 55 e) National Income = GDP -____-_____
+_____
MR
63. Distinguish between stocks and flows variables.
AR
64. Explain different Methods of measurement of
45. Define Short run supply curve
national Income. (8 Mark)
46. Define Long run supply curve
65. Explain Value Added method of measurement
47. List out the determinants of Supply curve
of national Income. (8 Mark)
48. Briefly explain the factors of supply curve
66. Distinguish between nominal GDP and Real
49. Define price elasticity of supply
GDP
50. Quantity supplied rises from 10 kg to 20 59. Find GDP, GNP and National Income from the
kg as a result of rise in price from following information: (5)
5 to 7.
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Amount MPC ∆C
Items ∆Y
( Cr.)
Rent 5000 88. Find Aggregate Demand for the following table.
Wages 8000 C I AD
Interest 4000 100 50
Gross profit 3000
Gross Value of Output 26000
400 50
Indirect taxes 2000 600 50
Subsidies 500 700 50
Depreciation 200 Chapter 11
Factor income from Abroad 1300
Factor income to abroad 1000 89. Classify the following into revenue receipts and
Intermediate consumption 6000 capital receipts:
60.What is GDP Deflator? interest, disinvestment, taxes, borrowing, fines,
61.Do you think GDP is a better index for welfare?
loan, customs duty.
Justify your answer. (5 Mark)
Chapter 9 90. Classify the following into revenue expenditure
69. List out any three drawbacks of Barter system and capital expenditure:
70. Explain the functions of money. (5 Mark) interest, salaries, expenditure on building,
71. List out three motives of demand for money pensions, subsidies, economic services,
72. What is speculative demand for money? machinery, flood relief, investment, grants
73. What do you mean by Liquidity trap?
74. What are the different measures of money
91. Briefly explain different measures of Budget
supply? deficit. (5 Mark)
75. Explain the functions of RBI. 92. What are the functions of government? explain
76. Find Money multiplier, if CRR is ) 25 %
Chapter 12
77. Classify the following into quantitative and
qualitative tools of credit control: 93. Distinguish between Balance of trade and
CRR, Moral suasion, Bank rate, Margin Balance of Payment
requirement, Direct action, Open market 94. Classify the following into visible and invisible
operations & SLR items:
78. Discuss the methods in which RBI control insurance, raw material, legal advice, textiles,
money supply. (5 Mark) teaching, food items, banking, medical,
Chapter 10
software, machinery, tourism, shipping,
79. What are the components of AD of an vehicles.
economy? 95. List the accounts of Balance of payment?
80. What are the components of AD in a two-sector 96. Explain the different methods of determination
model? of exchange rate. (5 Mark)
81. State the Law of consumption function. 97. Sethu buys $600 by giving 50,000. What is the
82. Explain the determination of income and exchange rate?
employment in a two-sector economy. (8Mark) 98. Distinguish between currency appreciation and
83. Distinguish between ax-ante and ex-post values. currency depreciation.
84. Explain the effect of Autonomous expenditure 99. Distinguish between Revaluation and
and MPC on employment and income/output Devaluation of currency.
85. What is investment multiplier? 100. Match column A and B
86. MPC is 0.8, what is multiplier A B
87. Match column A and B Trade balance Export > Import
A B Trade surplus Export = Import
APC ∆S
Trade deficit Export < Import
∆Y
MPS S
Y Prepared by Sunilkumar VK, HSST Economics,
APS C
Y
GHSS Moolankave, Wayanad, Mob. 9526390040