12 th Std Class Economics - Importance questions with Answer Key

12 th Std Class Economics - Importance questions with Answer Key

UNIT : 1      Nature and Scope of Economics

Nature and Scope of Economics -- - Download - Key Answer
Definitions of Economics -- - Download - Key Answer
Adam Smith’s Definition (Wealth Definition) -- - Download - Key Answer
Alfred Marshall’s Definition (Welfare Definition) -- - Download - Key Answer
Lionel Robbins’ definition (Scarcity Definition) -- - Download - Key Answer
Samuelson’s Definition (Modern Definition of Economics) -- - Download - Key Answer

UNIT : 2      Basic Economic Problems

Main Divisions of Economics -- - Download - Key Answer
Economics : positive or normative science ? -- - Download - Key Answer
Economics in relation to other social sciences -- - Download - Key Answer
Economics and Politics , Economics and History -- - Download - Key Answer
Economics and Ethics , Economics and psychology -- - Download - Key Answer
Economics, mathematics and statistics -- - Download - Key Answer
Economics as a science -- - Download - Key Answer
Methods of Economic Analysis -- - Download - Key Answer
Economic Laws and Importance of Economic Laws -- - Download - Key Answer
Characteristics and Classification of Wealth -- - Download - Key Answer
Goods -- - Download - Key Answer
Income and Types of Income -- - Download - Key Answer
Economics : Value and Price -- - Download - Key Answer
Markets and Classification of Markets -- - Download - Key Answer
Importance of Economics -- - Download - Key Answer
Basic Economic Problems and Economic Systems -- - Download - Key Answer
Capitalist Economy : salient features, Merits and Disadvantages -- - Download - Key Answer
Socialist Economy : salient features, Merits and Disadvantages -- - Download - Key Answer
Mixed Economy : salient features, Merits and Demerits -- - Download - Key Answer
Production Possibility Curve -- - Download - Key Answer

UNIT : 3      Theory of Consumer Behaviour

Theory of Consumer Behaviour -- - Download - Key Answer
Economics - Consumer Behaviour - Characteristics of wants -- - Download - Key Answer
Economics - Consumer Behavior - Classification of Wants -- - Download - Key Answer
Concept of Utility - Total, Marginal Utility -- - Download - Key Answer
Law of Diminishing Marginal Utility(DMU) - Definition, Explanation, Importance, Criticism -- - Download - Key Answer
Law Of Equi-Marginal Utility - Definition, Explanation, Importance, Criticism -- - Download - Key Answer
Limitations of the Equi-Marginal Utility Law -- - Download - Key Answer
Importance of Equi-Marginal Utility Law -- - Download - Key Answer
Consumer’s surplus - Definition, Explanation, Importance, Criticism -- - Download - Key Answer
Indifference Curve Approach - Definition, Schedule, curve, map -- - Download - Key Answer

UNIT : 4      Demand and Supply

Law of Demand with Schedule and curve -- - Download - Key Answer
Exceptions to the Law of Demand -- - Download - Key Answer
Factors determining demand -- - Download - Key Answer
Elasticity of Demand and Types of Elasticity of Demand -- - Download - Key Answer
Importance of Elasticity of demand -- - Download - Key Answer
Factors determining supply -- - Download - Key Answer
Elasticity of supply : concept, Types, Factors determining -- - Download - Key Answer

UNIT : 5      Equilibrium Price

Equilibrium Price -- - Download - Key Answer
Shift in Demand and Supply -- - Download - Key Answer
Economics : Time Periods and Price Fixation -- - Download - Key Answer

UNIT : 6      Production

Production -- - Download - Key Answer
Factors of production : Land, Labour, Capital and Organisation -- - Download - Key Answer
Forms of Capital and Characteristics of capital -- - Download - Key Answer
Labour : Characteristics and Division of Labour -- - Download - Key Answer
Identifying the optimum combination of factors of production -- - Download - Key Answer
Short-run and Long-run production function -- - Download - Key Answer
Short-run production function - The law of variable proportions -- - Download - Key Answer
Long-run production function - Increasing, Constant, Decreasing Returns to Scale -- - Download - Key Answer
Characteristics of an isoquant -- - Download - Key Answer
Producer’s Equilibrium and The Cobb Douglas Production Function -- - Download - Key Answer
Economies of Scale - Internal - Internal, External economies -- - Download - Key Answer

UNIT : 7      Cost and Revenue

Cost function, concepts and classifications -- - Download - Key Answer
Short run average cost curves - Average Fixed, Average variable and Average Total Cost -- - Download - Key Answer
Marginal Cost -- - Download - Key Answer
Long run Average Cost Curve (LAC) -- - Download - Key Answer
Accounting Cost and Economic cost -- - Download - Key Answer
Concepts Of Revenue - Average, Marginal Revenue(AR,MR) -- - Download - Key Answer
Measurement of Profit -- - Download - Key Answer

UNIT : 8      Market Structure and Pricing

Meaning, Definition and Characteristics of Market -- - Download - Key Answer
Classification of Markets according to Area, time, Competition -- - Download - Key Answer
Features and Conditions of perfect competition -- - Download - Key Answer
Nature of Revenue curves -- - Download - Key Answer
Monopoly : Characteristics and Causes -- - Download - Key Answer
Monopoly : Price and Output Determination - Advantages, Disadvantages -- - Download - Key Answer
Methods of Controlling Monopoly -- - Download - Key Answer
Definition and Conditions of Price Discrimination -- - Download - Key Answer
Characteristics of Monopolistic Competition -- - Download - Key Answer
Determination of Equilibrium price and output under monopolistic competition -- - Download - Key Answer
Wastages of Monopolistic competition -- - Download - Key Answer
Characteristics of Oligopoly -- - Download - Key Answer

UNIT : 9      Marginal Productivity Theory of Distribution

Marginal Productivity Theory of Distribution -- - Download - Key Answer
The Ricardian theory of Rent -- - Download - Key Answer
Modern Theory of Rent and Quasi-Rent -- - Download - Key Answer
Theories of wages -- - Download - Key Answer
Early theories of wages -- - Download - Key Answer
Recent Theories of wages -- - Download - Key Answer
Theories of Interest -- - Download - Key Answer
Loanable funds theory (Neo – classical theory) of Interest -- - Download - Key Answer
Liquidity preference theory (Keynesian theory) of interest -- - Download - Key Answer
Rent theory of profits -- - Download - Key Answer

UNIT : 10    Simple Theory of Income Determination

Simple Theory of Income Determination -- - Download - Key Answer
Say’s Law of Market -- - Download - Key Answer
Keynesian Theory of Income Determination -- - Download - Key Answer
Keynesian Theory Aggregate Demand : Consumption Function -- - Download - Key Answer
Keynesian Theory Aggregate Demand : Inducement to invest (Investment function) -- - Download - Key Answer
Rate of interest: Liquidity Preference Theory -- - Download - Key Answer
Functions of Money -- - Download - Key Answer
Economics : Importance of Money -- - Download - Key Answer
Money supply and Reserve Money of India -- - Download - Key Answer

UNIT : 11    Monetary Policy

Monetary Policy of India -- - Download - Key Answer
Monetary Transmission -- - Download - Key Answer
Economics : Inflation and Deflation, Types of Inflation -- - Download - Key Answer
Effects of changes in prices -- - Download - Key Answer
Definition of Fiscal Policy or public finance -- - Download - Key Answer
Subject matter of public finance(Fiscal Policy) -- - Download - Key Answer
Meaning and definition of a tax -- - Download - Key Answer
Canons of Taxation -- - Download - Key Answer
Kinds or Types of tax -- - Download - Key Answer
Meaning, Definition and Kinds(Types) of Budget -- - Download - Key Answer

UNIT : 12    Fiscal Policy

Fiscal policy - Meaning, Objectives, Limitations of Fiscal policy -- - Download - Key Answer

UNIT : 1    Nature and Scope of Economics

IV. Answer each one of the questions in a word or two :

1.     What is the other name for Economics ?

2.     What are the subjects that econometrics make use of ?

3.     What is the method that Ricardo made use of ?

4.     Give one or two examples of free goods.

What is the other name for money income ?

PART B

Answer for each of the following questions should be about four or five lines

State Alfred Marshall’s definition of economics

What are the main divisions of economics ?

Describe the relationship between economics, mathematics and statistics.

Distinguish between free goods and economic goods

Explain the difference between value-in-use and value-in-exchange.

PART C

Answer for each of the following questions should be about a page

State and examine the criticism against Adam Smith’s wealth definition.

Distinguish between micro economics and macro economics.

Is economics a positive science or a normative science?

Write a note on static and dynamic concepts.

30  Discuss the methods of economic analysis.

PART D

Answer for each of the following questions should be about three pages

Examine Marshall’s definition of economics.

Examine Lionel Robbins definition of economics.

Discuss the relationship between economics and other social sciences.

Discuss the nature and importance of economics laws.

Discuss the nature and scope of economics.

UNIT : 2    Basic Economic Problems

Answer each one of the questions in a word or two

Is traditional economy a subsistence economy ?

What is the basic force that drives a capitalist economy ?

What is the result of over-production ?

Name any two successful socialist economies.

Is there planning under mixed economy ?

PART – B

Answer for each of the following questions should be about four or five lines

What are the basic issues of any society ?

Name the important general economic systems ?

List the basic features of socialism.

Is India a mixed economy ?

What is opportunity cost ?

PART – C

Answer for each of the following questions should be about a page

Write a note on traditional economy.

Explain the salient features of capitalism.

What are the merits of socialist economy.

What are the merits and demerits of a mixed economy?

Explain ‘opportunity cost’ with an example.

PART – D

Answer for each of the following questions should be about three pages

What is capitalism ? Explain its advantages and disadvantages.

Explain features, merits and demerits of socialism.

Explain ‘mixed economy’ in detail.

Describe the ‘production possibility curve’ with a suitable diagram.

UNIT : 3    Theory of Consumer Behaviour

Answer in a word or two

Define Utility

What is the other name for the law of Equi-Marginal Utility

What is Indifference curve ?

What is Indifference Map ?

What is the other name for budget line ?

PART B

Answer the following questions in about four or five lines

What are the causes for wants ?

What are the classifications of goods ?

Define the Law of Dimnishing Marginal Utility.

What are the properties of Indifference curve ?

Define “consumer’s surplus” in the words of Marshall.

PART C

Answer the following questions in about a page

Distinguish between total and marginal utility.

What are assumptions of Law of Dimnishing Marginal Utility

Bring out the importance of Law of Dimnishing Marginal Utility

Mention the limitations of Law of Equi-Marginal Utility

Describe consumer’s equilibrium with the help of indifference map.

PART D

Answer for each question should be about three pages

Explain the characteristics of human wants

Describe the Law of Diminishing Marginal Utility with a diagram?

Explain Consumer’s Surplus with the help of a diagram and bring out its importance and its criticism.

Explain the Indifference Curve Approach

What is Indifference curve map ? Explain the properties of indifference curve with diagrams.

UNIT : 4    Demand and Supply

. Answer in a word or two

What is the basic assumption of economic theory ?

How does the demand change during boom and depression ?

Give the formula for point method

What is income elasticity of demand ?

When the demand for labour is inelastic, can a trade union raise wages ?

PART B

Answer the following questions in about four or five lines

What is demand ?

Enumerate the determinants of demand

Why does the demand curve slope downwards ?

Write a note on Giffen Paradox

What are the types of elasticity of demand ?

PART C

Answer the following questions in about a page

Explain the expansion and contraction in demand and shifts in demand.

Explain the types of elasticity of demand.

Give the importance of elasticity of demand.

Explain the law of supply with a suitable diagram.

What is elasticity of supply and explain its types with a diagram ?

PART D

Answer for each question should be about three pages

Discuss the law of demand.

Explain the methods of measurement of price elasticity of demand in detail.

UNIT : 5    Equilibrium Price

Answer in a word or two

What is equilibrium in general ?

What are the determinants of shift in demand curve ?

Who has introduced the time element ?

Give an example for fixed input ?

Is supply fixed in the market period ?

PART B

Answer the following questions in about four or five lines

What is equilibrium price ?

Distinguish between change in demand and shift in demand.

What are the determinants of shift in supply ?

Differentiate the short period from the long period.

Write a short note on market period.

PART C

Answer the following questions in about a page

Explain the shift in demand with the help of a diagram.

Explain the shift in supply with diagram.

How is the equilibrium price determined in the market period ?

Explain with a help of diagram how demand and supply exert influence on price in the short period.

Describe the flatter long run supply curve.

PART D

Answer for each question should be about three pages

Analyse the determination of equilibrium price with a diagram.

Explain with a suitable diagram

Market price

Short period price

Long period price

UNIT : 6    Production

Answer in a word or two

Who is the changing agent of the society ?

How do internal economies arise ?

What is other name for isoquant ?

Give the condition for producer’s equilibrium ?

State the Cobb-Douglas production function.

PART - B

Answer the following questions in about four or five lines

Name the types of utility.

Define labour.

What is meant by division of labour?

What are the forms of capital ?

What is production function ? and what are its classification ?

PART - C

Answer the following questions in about a page

Explain the merits and demerits of division of labour.

Describe the characteristics of capital.

What are the functions of entrepreneur?

Distinguish between laws of returns and returns to scale.

Explain the producer’s equilibrium by using isoquants.

PART - D

Answer for each question should be about three pages

What is land and what are the peculiarities of land ?

What are the characteristics of labour ?

Explain the three phases of ‘Return to scale’

Write a note on ‘Cobb-Douglas’ production function

Explain the law of variable proportions.

What are isoquants ? Describe their characteristics.

Describe the kinds of economies of scale.

UNIT : 7    Cost and Revenue

Answer in a word or two

When average revenue remains constant what will be M.R. ?

What is Marginal Revenue ?

What is break-even point ?

What is an envelope curve ?

How will you calculate AC ?

PART - B

Answer the following questions in about four or five lines

Bring out the distinction between short run and long run.

Define opportunity cost.

What are economic costs ?

Define marginal cost ?

Mention the relationship between MC and AC

PART - C

Answer the following questions in about a page

Give a note on long run average cost curve.

Explain the relationship between AR and MR curve

Explain the short run average cost curves

Explain the marginal cost with suitable illustration.

Explain the relationship between SAC and SMC.

PART - D

Answer for each question should be about three pages

Explain various costs incurred by the firm.

Explain TC, AC and MC curves.

Explain TR, AR and MR curves.

Explain the measurement and maximization of profit with diagram.

UNIT : 8    Market Structure and Pricing

Answer in a word or two

What is an industry?

Who undertakes the public utilities?

How does the government control monopoly?

What is the essential feature of monopolistic competition?

In which year the MRTP Act was passed?

PART B

Answer the following questions in about four or five lines

What are the characteristics of a market?

Classify the market based on competition.

Mention any three benefits of perfect competition.

What are the conditions of price discrimination?

Define price discrimination with an example.

PART C

Answer the following questions in about a page

Briefly explain the classification of markets.

Explain the features of perfect competition.

What are the methods of controlling monopoly?

Write a note on ‘product differentiation’.

Describe the wastes of monopolistic competition.

PART D

Answer for each question should be about three pages

How is the price and output determined in the short run under perfect competition?

Define monopoly. What are the characteristics and causes of monopoly?

Explain the price and output determination under monopoly.

Explain the advantages and disadvantages of monopoly.

Differentiate the perfect competition from monopoly.

Explain the price and output determination under monopolistic competition.

UNIT : 9    Marginal Productivity Theory of Distribution

Answer each one of the questions in a word or two

According to Ricardio, do all lands get rent ?

Even if all lands are equally fertile, can rent arise ?

Who is the author of Agio theory of interest ?

Who is the author of the rent theory of profits ?

What is the name of Schumpeter’s theory of profits ?

PART - B

Answer for each of the following questions should be about four or five lines.

What are the assumptions of marginal productivity theory of distribution ?

What is “Transfer earnings”?

Distinguish between real wages and money wages.

What is standard of living theory of wages?

What are the three motives of liquidity preference ?

PART - C

Answer for each of the following questions should be about a page.

Discuss Marshall’s theory of Quasi-rent.

Write a note on the subsistence theory of wages.

Discuss the Abstinence or Waiting theory of interest.

Briefly describe the dynamic theory of profits.

Explain Schumpeter’s theory of profits.

PART - D

Answer for each question should be about three pages.

Discuss marginal productivity theory of distribution.

Examine Ricardian theory of rent.

Describe Loanable funds theory of interest.

Discuss Keynesian theory of interest.

Profit is the reward for risk-taking and uncertainty – bearing.

UNIT : 10  Simple Theory of Income Determination

Answer in a word or two

What crippled the free enterprise economies of US and UK?

State J.B. Say’s Law of Market.

Who is the author of the “General Theory of Employment, Interest and Money”?

Name the point of intersection of Aggregate Demand and Aggregate Supply

Give the formula for Multiplier

Part – B

Answer the following questions in about four or five lines

What are the assumptions of Say’s law of markets?

What is effective demand?

Give the factors on which the aggregate demand depends.

What are the three motives of liquidity preference theory?

Write a note on multiplier.

Part – C

Answer the following questions in about a page

What are the criticisms of Say’s Law?

Draw the flow chart to depict the essence of Keynes theory.

Describe the consumption function with a diagram

What are the determinants of consumption other than income?

What are the assumptions of Keynes’ Simple Income Determination?

Part – D

Answer for each question should be about three pages

Critically examine J.B.Say’s Law of Markets.

Write a note on Aggregate Demand and Aggregate Supply.

Describe the simple theory of income determination with a suitable diagram.

UNIT : 11  Monetary Policy

Answer each one of the following questions in a word or two

Name the bank which controls money supply in a country.

When is dear money policy followed ?

What is the name of inflation without a rise in price level ?

Is wage cut a remedy for depression?

Give the example of a country that experienced hyperinflation.

PART B

Answer for each of the following questions should be about four or five lines

Define Money.

What are the four components of money supply in India ?

Define monetary policy.

What are the instruments of quantitative credit control ?

What is Stagflation ?

PART C

Answer for each of the following questions should be about a page

Explain the difficulties of barter system.

Write a note on Reserve Money.

Explain a) dear money policy b) cheap money policy

Explain the equation of exchange.

Write a note on Incomes Policy.

PART D

Answer for each question should be about three pages

Describe the functions of money.

Discuss the objectives and instruments of monetary policy.

Discuss the quantity theory of money.

Discuss the causes, effects and remedies for inflation.

Discuss the process of monetary transmission mechanism with the aid of a diagram.

UNIT : 12  Fiscal Policy

Answer in a word or two

What is a tax ?

Give the expansion for VAT

What is the meaning of proportional tax ?

What are the kinds of budget ?

What is public debt ?

PART B

Answer the following questions in about four or five lines

Define Public Finance.

What is the subject matter of Public Finance ?

What are the canons of taxation ?

What are the kinds of tax ?

What is zero based budget ?

PART C

Answer the following questions in about a page

Explain the canons of taxation

What are main sources of tax and non-tax revenue of the state government ?

Define Budget. Explain the balanced and unbalanced budget.

What are the limitations of fiscal policy ?

Differentiate between the direct and indirect taxes ?

PART D

Answer for each question should be about three pages

Define tax and explain the kinds of direct taxes ?

Classify budgets

Explain the subdivisions of Public Finance

What are the objectives and limitations of fiscal policy ?

 HIGHER SECONDARY - SECOND YEAR

UNIT : 1    Nature and Scope of Economics

UNIT : 2    Basic Economic Problems

UNIT : 3    Theory of Consumer Behaviour

UNIT : 4    Demand and Supply

UNIT : 5    Equilibrium Price

UNIT : 6    Production

UNIT : 7    Cost and Revenue

UNIT : 8    Market Structure and Pricing

UNIT : 9    Marginal Productivity Theory of Distribution

UNIT : 10  Simple Theory of Income Determination

UNIT : 11  Monetary Policy

UNIT : 12  Fiscal Policy