Monday, January 27, 2020

AHSEC - CLASS 12: ECONOMICS IMPORTANT QUESTIONS (PART B - MACRO ECONOMICS)


Pattern of Question Paper (Part B)
1 Marks x 6 Questions
2 Marks x 6 Questions
4 Marks x 5 Questions
6 Marks x 2 Questions
6 Marks
12 Marks
20 Marks
12 Marks
Total
50 Marks

ECONOMICS (PART-II)
Chapter-1: INTRODUCTION (1 to 3 Marks)
A. Short Answer Type Questions
1.     What is macroeconomics? Distinguish between micro economics and macroeconomics.                  2018
2.     What is general equilibrium?
3.     What do you mean by Economic agents?
4.     What is capitalist, socialist and mixed economy? Mention the characteristics of each of them.
5.     Fill in the blank:  Macro economics deals with the _____ variables of an economy.
6.     Describe briefly the Great Depression of 1929.
7.     Explain briefly the areas that macroeconomics deals with.
Chapter-2: NATIONAL INCOME ACCOUNTING

A. Very Short Answer Questions: (Marks 1)
1.           Define final goods.
2.           Define Gross Investment of an economy.
3.           Define depreciation.
4.           Define Gross Domestic Product.
5.           What is gross value added?
6.           What is net value added?
7.           What is inventory?
8.           Who is the founder father of modern economics?
9.           What is National Income?
10.      What is GDP inflator?
B. Short Answer Questions II type: (Marks 3)
1.     Explain the concept of intermediate goods, final goods, consumption goods and capital goods.     2014, 2018
2.     Distinguish between gross investment and net investment.   2015
3.     Distinguish between gross value added and net value added.
4.     What is national disposable income.
5.     What is net national product at factor cost.
6.     Distinguish between real GDP and nominal GDP.
7.     Distinguish between intermediate goods and final good.
C. Short Answer Questions I type: (Marks 4)
1.     Distinguish between consumer goods and capital goods.
2.     Distinguish between stocks and flows in regards to NI.
3.     Define and distinguish personal income from private income.          2016
4.     Define and distinguish between consumer price index and whole sale price index.
5.     Distinguish between gross national product and gross domestic product.
D. Long Answer Questions: (Marks 6)
1.     What are the four factors of production? Write down the name of the remuneration to each of them.  2017
2.     Explain the circular flow of income is simplified economy with two sectors – households and firms.     2012, 2014, 2016, 2018
3.     Explain the circular flow of income is simplified economy with three sectors – households, firms and government.  2019
4.     Explain the value added method of calculating GDP.                         2014
5.     Explain the income method of calculating GDP.                                  2012, 2013, 2015, 2017
6.     Explain the expenditure method of calculating GDP.                        2016, 2019
7.     Discuss the reasons why it will not be correct to say that the GDP is the index for measuring welfare of the people of a country.                     2013, 2018
Chapter-3: MONEY AND BANKING (8 Marks)
Very Short Answer Type Questions: (Marks 1/2)
1.     What is barter system?
2.     What is cash reserve ratio and statutory liquid ratio?
3.     What is Money?
4.     Define high-powered money.
5.     What is liquid money?
6.     What is fiat money? Can coins be termed as fiat money?
7.     What is inflation?
8.     What is liquidity trap? – Explain.
9.     Define money multiplier.
10.            Define demand and time deposit.         2018
11.            What is currency deposit ratio? Why does it increase during the festive season?
12.            What is sterilization operation of RBI?
13.            What is borrowing rate of a commercial bank?
14.            Why is reserve keeping with the RBI is costly for commercial bank?
Long Answer Type Questions: (Marks 3 to 6)
1.     What is money? Explain the functions or role of money in modern economy. How does money overcome the shortcomings of a barter system?             2017, 2018, 2019
2.     Describe the speculative (2014, 2017) and transaction demand (2012) for money. How is speculative demand for money related to the rate of interest?
3.     What are commercial banks? What are the functions of commercial bank?         2015, 2017
4.     Explain the process of credit creation of bank together with its limitations.          2019
5.     What is RBI? Explain the functions of RBI as an agent of note issue, Banker’s bank, banker to the government and lender of last resort.                  2014, 2017, 2018
6.     What are the instruments of monetary policy used by the RBI. Explain any two of them.      2012, 2015, 2019
7.     “RBI is responsible for changes in the supply of money in the economy” – Elaborate this statement.
8.     Explain the concept of deficit financing.    2013, 2017
Chapter-4: INCOME DETERMINATION (12 Marks)
Very Short Answer Type Questions: (Marks 1/2)
1.     What is aggregate demand and aggregate supply?       2012, 2013, 2016
2.     What is average and marginal propensity to consume and save?     2016
3.     Given the marginal propensity to save to be 0.3, find out the income multiplier.
4.     What is output multiplier?
5.     What is autonomous consumption expenditure?          2018
6.     What is the literary meaning of ‘ceteris paribus’?
7.     What is paradox of thrift – explain.
8.     Why do we assume that the prices vary only in the long-run?
9.     What is involuntary unemployment and full employment?    2016
Long Answer Type Questions: (Marks 3 to 6)
a)     Mention the components of aggregate demand and aggregate supply.                 2013
b)    Explain the relationship between investment multiplier and marginal propensity to consume.  2012, 2017
c)     What is marginal propensity to consume and marginal propensity to save? State the relation and difference between marginal propensity to consume from marginal propensity to save.        2014, 2016
d)    What is excess demand? Explain the fiscal measures to solve the problem of excess demand.       2018
e)    What is investment multiplier? Explain with the help of a diagram.       2014, 2019
f)      What is investment, gross investment and net investment? Distinguish between gross and net investment.         2014, 2015
g)     Distinguish between autonomous investment and induced investment.          2013, 2016
h)    What is ex-ante and ex-post? Explain the concept of ex ante aggregate demand and consumption.         2012
i)       What is ex ante investment? What are the determinants of investment demand?                  2013
j)       State the problem of double counting. Explain the need for avoiding double counting in the estimation of national income.       2015
Chapter-5: GOVERNMENT BUDGET AND THE ECONOMY (8 Marks)
Very Short Answer Type Questions: (Marks 1/2)
1.     State one example of non-tax revenue and tax revenue.                                 2014, 2016
2.     State one example of capital expenditure and revenue expenditure.
3.     What is fiscal policy?
4.     Fill in the blank:  The excess of revenue expenditure over revenue receipt is called revenue _____.
5.     Distinguish between public gods and private goods.     2015
6.     What is allocation function of the government?
7.     What are the components of capital receipt of government budget?
8.     What are various classes of government receipts? Mention them with examples. Also distinguish between them.          2017, 2019
9.     What are various classes of government expenditure? Mention them with examples
Long Answer Type Questions: (Marks 3 to 6)
1.     What is government budget? Briefly explain the components of a government budget.
2.     List out the objectives of preparing government budget.                    2013, 2016
3.     What are the sources of government revenue? State them briefly. Distinguish between tax-revenue and non-tax revenue with examples.               2012
4.     Define and distinguish between direct tax and indirect taxes.            2019
5.     Mention two merits and demerits of direct taxes and indirect taxes.           2017
6.     What is revenue deficit, fiscal deficit and primary deficit? Mention their implications and measures to control it.                   2015, 2016, 2017, 2018, 2019
7.     Define surplus budget, deficit budget and balanced budget. Mention their implications.           2015, 2016
8.     Define and Distinguish between plan and non-plan expenditure with examples.                        2014, 2016, 2018
9.     Define and distinguish public goods and private goods.       2018
10.            Is government debt is a burden?
11.            Trace out the relationship between government deficit and government debt.                  2013
12.            State the distribution function of government. What are the functions operated through government revenue and expenditure measures.           2015
Chapter-6: OPEN ECONOMY MACROECONOMICS (8 Marks)
Very Short Answer Type Questions: (Marks 1/2)
1.     What is invisible trade?
2.     What is transfer payment?
3.     What is foreign exchange market? Name the participant of such market.
4.     What is purchasing power parity?
5.     What is real exchange rate?
6.     Y = C + I + G + NX.  In this equation what does NX refer to?
7.     What is Bilateral Nominal Exchange rate?
8.     When the import function is given as M=50+0.4Y, what will be the marginal propensity to import?
9.     Define budget deficit and trade deficit.
Long Answer Type Questions: (Marks 3 to 6)
1.     What is foreign exchange rate? What are its two types? Also distinguish between them.            2016
2.     What is fixed exchange rate? Mention its merits and demerits.                     2015
3.     What is fluctuating exchange rate? Mention its merits and demerits.
4.     Explain various determinants of exchange rate under flexible exchange rate system. How exchange rate is determined under flexible exchange rate system?
5.     Explain how the equilibrium price of a foreign currency is determined in foreign exchange market.
6.     Describe the role of speculation in determining the flexible rate of exchange.
7.     Mention the sources of demand and supply of foreign exchange.
8.     What is balance of payment and Balance of trade? Distinguish between them.                  2014, 2016
9.     Explain the two main accounts of balance of payments.      2014, 2018
10.            Distinguish between autonomous and accommodating items of balance of payment.     2013, 2015
11.            What is disequilibrium in Balance of Payments? Mention the causes behind disequilibrium in BOP.    2015, 2017, 2019
12.            What is open and closed economy? Distinguish between them.
13.            Can a country have a trade deficit and current account surplus simultaneously?  Discuss the impact of trade deficit.

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