1

KVS ZONAL INSTITUTE OF EDUCATION AND TRAINING, GWALIOR

Class XII- Economics

Repeatedly Asked Board Questions for Low Achievers

Section A -Micro Economics

  1. Why do economic problems arise? Explain the problem of allocation of resources.
  2. Define Production Possibility Curve. Present the central problems on the PPC.
  3. State the law of demand.
  4. Explain any three determinants of demand.
  5. Diagrammatically explain the consumer’s equilibrium by using indifference curve analysis.
  6. State and explain the law of variable proportions.
  7. What are the relationship between AVC, ATC and MC?
  8. What are the relationship between TR, AR, and MR under imperfect competition?
  9. Define producer’s equilibrium. How is it determined under MC-MR analysis?
  10. Distinguish between the following:

(i)Extension and increase in supply;

(ii)Contraction and decrease in supply

  1. Explain the features of perfect competition.
  2. Distinguish between monopoly and monopolistic competition.
  3. What are the features of perfect competition?
  4. Define oligopoly. What are its features?
  5. Why does the demand curve under monopoly less than unit elastic than under monopolistic competition?
  6. How is equilibrium price determined under perfect competition?

Section B - Macro Economics

  1. Explain the concept of circular flow in a two sector economy.
  2. Define national income. Explain the steps in the calculation of national income by value added method.
  3. What are the precautions to be taken while calculating national income by income method and expenditure method?
  4. Explain the steps to be taken while estimating national income by expenditure method.
  5. Define money. What are the primary and secondary functions of money?
  6. State the components of M1, M2, M3, and M4.
  7. Explain with the help of an example money(credit) creation by commercial banks.
  8. Explain the functions of central bank.
  9. State and explain the Say’s law of Markets.
  10. How is equilibrium level of income is determined by AD and AS ?
  11. What are the monetary and fiscal measures to correct excess demand?
  12. What are the monetary and fiscal measures to be taken to correct deficient demand?
  13. What are the objectives of government budget?
  14. Distinguish between the following:

(a)Revenue receipts and capital receipts;

(b)Revenue expenditure and capital expenditure.

15. Distinguish between fiscal deficit, primary deficit and revenue deficit.

16.How is foreign exchange rate determined under flexible exchange

rate system?

  1. Define Balance of payments. How is it different from Balance of Trade?

ADDITIONAL QUESTIONS-Micro

  1. Distinguish between positive economics and normative economics.
  2. What are the three stages of returns to scale?
  3. What are the reasons for increasing, constant, and decreasing returns to scale?
  4. Distinguish between maximum price(price ceiling) and support price (floor price).
  5. Distinguish between price discrimination and product differentiation.

ADDITIONAL QUESTIONS- Macro

  1. Define double counting. What are the two ways to avoid it?
  2. GNP is not a good indicator of welfare. Elucidate.
  3. Distinguish between bank rate, repo-rate, and reverse repo rate.
  4. Define investment multiplier.
  5. Distinguish between currency depreciation and currency appreciation.

Prepared by: JOSEPH K.A., Training Assistant(Economics), ZIET, GWALIOR,

and Ex. Head Examiner of Economics.

Phone: 9446369351 E-mail: