CBSE Class 12 Economics Term 2 Exam: Important Revision Questions

 INDIAN ECONOMICS

Question 1.

State the factors which created a conducive environment for new investments in Pakistan.
Answer:
Following factors created conducive environment for new investments in Pakistan:
(i) Adoption of green revolution
(ii) Shift of the orientation of nationalisation policy to denationalisation and encouragement to private sector
(iii) Financial support from western nations
(iv) Growing remittances from Pakistani workers in the Middle-east

Question 2.

State some long-term impacts of global warming.
Answer:
Some long-term impacts of global warming are:

• Melting of polar ice
• Rise in sea level
• Frequent coastal flooding and tropical storms
• Disruption of drinking water supplies
• Extinction of species
• Increased incidence of tropical diseases

Question 3.
State some long-term impacts of global warming.
Answer:
Some long-term impacts of global warming are:
(i) Melting of polar ice
(ii) Rise in sea level
(iii) Frequent coastal flooding and tropical storms
(iv) Disruption of drinking water supplies
(v) Extinction of species
(vi) Increased incidence of tropical diseases

Question 4.
What type of fuels do rural women use to meet their energy requirements?
Answer:
Rural women use bio-fuels such as crop residues, dung and fuel wood to meet their energy requirement.

Question 5.
What percentage of rural population has access to improved sanitation?
Answer:
Only 20 percent of rural population has access to improved sanitation.

Question 6.
What are the commercial sources of energy? Give examples.
Answer:
Commercial sources of energy are those sources which are exchanged for money. Coal and petroleum are commercial sources of energy.

Question 7.
Which of these are unorganised sector activities?
(i) A teacher
(ii) A headload worker
(iii) A farmer
(iv) A doctor
(v) A daily wage labourer
(vi) A factory worker
Answer:
The headload worker, farmer, daily wage labourer and factory worker are involved in unorganised sector activities.

Question 8.
Define unemployment.
Answer:
Unemployment is a situation in which the person who is willing to work at the prevailing wages is unable to find jobs.

Question 9.
Suggest one way to resolve the problem of underemployment in rural areas.
Answer:

Government can identify, promote and locate industries in semi-rural areas to generate employment opportunities.

Question 10.
Write a brief note on the commune system in China.
Answer:
Commune system was started in the rural areas of China, under which people collectively cultivated lands. Commune lands were divided into small plots. These plots were allocated to individual households for cultivation, not ownership. Households were allowed to keep all income from the land after paying specified taxes. In 1958, there were 26,000 communes covering almost all the farm population. The commune system resulted in more equitable distribution of food grains in China.

MACROECONOMICS

Q1. Define stock & flow

Q2. Define Gross investment

Q3. Give two examples of the flow concept

Q4. Define externalities. Give an example of a negative externality. What is its impact on welfare?

Q5. If Real GDP is Rs. 200 and price index (with base = 100) is 110, calculate Nominal GDP.

Q6. If the Nominal GDP is Rs. 1,200 and the price index (with base = 100) is 120, calculate Real GDP.

Q7. Giving reason, explain whether the following are included in the domestic product of India.

Q8. Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.

Q9.Will the following factor income be a part of the domestic factor income of India? Give reasons for your answer.

i) Profit Earned by the foreign banks from their branches in India 

ii) Salary received by Indian residents, working in the American embassy in India.

iii) Profit earned by an Indian company from its branch in Singapore.

Q10. How will you treat the following while calculating the domestic product of India? Give reasons for your answer.

i) Profits earned by a foreign company in India.

ii) Salary of Indian residents working in Russian Embassy in India

Q11. Governments spend on child immunization programmes. Analyse its impact on GDP and the welfare of the people.

Q12. How will you treat the following while estimating the domestic product of a country? Give reasons for your answer.

(a) Profit earned by branches of the country’s bank in other countries.

(b) Gifts are given by an employer to his employees on Independence Day.

(c) Purchase of goods by foreign tourists

Q13. Explain the precautions that should be taken estimating national income by expenditure method (by value-added method).

Q14. Define the problem of double counting in the computation of the national income. State any Two approaches to correct the problem of double counting.

Q15. “Gross domestic product does not give us a clear indication of the economic welfare of a country”. Defend or refute the given statement with valid reason.

Q16. Define the following:

(a) Value addition 

(b) Gross Domestic Product 

(c) Flow variables 

(d) Income from property and entrepreneurship

Q17. What are non-monetary exchanges? Discuss with a suitable example.

Q18. Explain national income equilibrium through aggregate demand and aggregate supply. Use diagram. Also, explain the change that takes place in an economy when the economy is not in equilibrium.

Q19. In an economy the saving function, S = (-) 50 + 0.5Y here ( S= Saving and Y = National Income ) and Investment = Rs 7000 . From the following data calculate

a) Equilibrium level of National Income

b) Consumption Expenditure at the equilibrium level of Income

Q20. Explain the working of the investment multiplier with the help of a numerical example.