AHSEC Class 12 Economics Most Important Topics for 2026 Exam I AHSEC Class 12 Economics

AHSEC CLASS 12 ECONOMICS MOST IMPORTANT QUESTIONS

Macroeconomics PART A – 40 Marks

Part A: Introductory Macroeconomics Syllabus

Part A: Question Paper Pattern

Must Do

1. 2022, 2023, 2024 Question Papers

2. At least 3 sample papers

Chapter-1: NATIONAL INCOME ACCOUNTING (10 Marks)

1. Define national income. Differentiate between nominal GDP and real GDP. 2023

2. Explain various methods of calculating national income (Production or value added method, income method and expenditure method.)  2022, 2023, 2024, 2025

3. What is value addition? Explain the value-added method of calculating national income. Write an important merit of this method. 2025

4. What are the four factors of production? Write down the name of the remuneration to each of them.  2017

5. Explain the circular flow of income is simplified economy with two sectors – households and firms. 2012, 2014, 2016, 2018

6. Explain the circular flow of income is simplified economy with three sectors – households, firms and government. 2019, 2023

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. Or Is GDP an indicator of welfare of a nation? Justify your answer. 2013, 2018, 2020, 2022, 2025

8. In the context of national income accounting, analyse the concept of planned and unplanned change in inventories with a hypothetical example. 2025

9. State the problem of double counting. Explain the need for avoiding double counting in the estimation of national income. 2015, 2023

10. Define personal income, personal disposable income and national disposable income.

11. Explain the concept of intermediate goods, final goods, consumption goods and capital goods. Also distinguish between them. 2014, 2018, 2020, 2022, 2025

12. Write the difference between GDP at market price and GDP at factor cost.        2022

13. Short definition: Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP)-at market price, at factor cost; Personal Income, Personal Disposable Income, National Disposable Income and Private income; Real and Nominal GDP.

14. What is macroeconomics? What are its features? Explain various sectors of macroeconomics.

Chapter-2: INCOME AND EMPLOYMENT DETERMINATION (12 Marks)

1. What is aggregate demand and aggregate supply? Mention the components of aggregate demand and aggregate supply. 2012, 2013, 2016, 2020, 2024, 2025

2. What is average and marginal propensity to consume and save? Show that MPC + MPS = 1. 2016

3. 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, 2022, 2023

4. Explain diagrammatically how equilibrium level of employment and income is determined in a two sector economy with the concept of aggregate demand and aggregate supply.  2022, 2023

5. What is investment multiplier? Explain how it works with the help of a diagram and example. 2014, 2019, 2022, 2023, 2025

6. Explain the relationship between investment multiplier and marginal propensity to consume. 2012, 2017

7. What is paradox of thrift – explain.      2022

8. What is investment, gross investment and net investment? Distinguish between gross and net investment. 2014, 2015

9. Define and Distinguish between autonomous investment and induced investment. 2013, 2016, 2022, 2024

9. What is ex-ante and ex-post? Explain the concept of ex ante aggregate demand and consumption. 2012

10. What is ex-ante investment and ex-post investment? What are the determinants of investment demand? Also distinguish between them. 2013, 2022, 2023, 2025

11. Explain the process of equilibrium income and employment determination of an economy with the use of aggregate demand and aggregate supply curves. 2020

12. What is involuntary unemployment and full employment? 2016 

13. What is excess demand? Explain the fiscal measures to solve the problem of excess demand. 2018

14. What is deficit demand? Write are the causes of deficit demand.

Chapter-3: MONEY AND BANKING (6 Marks)

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, 2023

2. What are various types of money? Explain the static and dynamic functions of money.

3. What demand for money? What are its various motives? What factors affecting demand for money?

4. Describe the speculative (2014, 2017) and transaction demand (2012) for money. How is speculative demand for money related to the rate of interest?

5. What is supply of money? What are its determinants?

6. What are the components of money supply (M1, M2, M3, M4)? What is high powered money? 2022, 2023

7. What is RBI or central bank? 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

8. What are commercial banks? What are the functions of commercial bank (Primary, secondary and agency)? 2015, 2017, 2022, 2024

9. Explain the process of credit creation of bank together with its limitations. 2019, 2022, 2025

10. What are the instruments of monetary policy/Credit control techniques used by the RBI? Explain any two of them. 2012, 2015, 2019, 2020, 2022, 2025

11. Write a brief note on demonetization. What are its impact? 2020, 2024

12. What is barter system? What are its merits and demerits? 2024

Chapter-4: GOVERNMENT BUDGET AND THE ECONOMY (6 Marks)

1. What is government budget? Briefly explain the components of a government budget. List out the objectives of preparing government budget (Redistribution of income/PLI). 2013, 2016, 2022, 2023, 2024

2. What are various classes of government expenditure (Capital and Revenue)? Distinguish between them with examples. 2024, 2025

3. What are various classes of government receipts? Mention them with examples. Also distinguish between them. 2017, 2019, 2023

4. What are the sources of government revenue? State them briefly. Distinguish between tax-revenue and non-tax revenue with examples. 2012, 2014, 2016

5. What are various types of taxes? Mention two merits and demerits of direct taxes and indirect taxes. Also distinguish between direct tax and indirect taxes. 2017, 2019, 2020, 2022, 2025

6. Define and Distinguish between plan and non-plan expenditure with examples.        2014, 2016, 2018, 2022, 2024

7. Define surplus budget, deficit budget and balanced budget. Mention their implications. 2015, 2016, 2020

8. What is revenue deficit, fiscal deficit and primary deficit? Mention their implications and measures to control it. 2013, 2015, 2016, 2017, 2018, 2019, 2022, 2025

9. What is fiscal policy? Write its two objectives?  Discuss the impact of changes in government expenditure and changes in taxes on equilibrium income. 2024, 2025

10. Explain in detail Fiscal Responsibility and Budget Management Act, 2003

11. What is public goods and private goods? Give examples and also distinguish between them.

12. Distinguish between 'Public Provision' and 'Public Production'.

Chapter-5: Balance of Payments (6 Marks)

1. What is open and closed economy? Distinguish between them. 2020

2. What is balance of payment and Balance of trade? Distinguish between them. 2014, 2016, 2020, 2022

3. What is balance of payment? Explain the two main accounts of balance of payments in details. 2014, 2018, 2020, 2023, 2024, 2025

4. Distinguish between autonomous and accommodating items of balance of payment. 2013, 2015

5. What is disequilibrium in Balance of Payments? Mention the types and causes behind disequilibrium in BOP. How it can be controlled? 2015, 2017, 2019, 2024

7. What is foreign exchange rate? What are its two types? Also distinguish between them. 2016, 2020, 2022

8. What is fixed exchange rate? Mention its merits and demerits. 2015, 2023

9. What is fluctuating exchange rate? Mention its merits and demerits.

10. Explain various determinants of exchange rate under flexible exchange rate system. How exchange rate is determined under flexible exchange rate system?  2024

11. What do you mean by devaluation of currency? How does it affect the import of a country? 2020, 2025

12. What are the sources of supply of foreign currency?2025

13. Outline how equilibrium exchange rate is determined in free market system. 2023

14. Define spot and forward exchange rate. 2023