12th Economics Chapter No. 1 - Introduction to Microeconomics

Question 1(A):

Fill in the blanks with appropriate alternatives given in the brackets.

Question 1(B):

Match the following

Question 1(C):

State whether the following statements are TRUE or FALSE.

1) Dr. Marshall is known as the Father of Economics.

2) Micro Economics studies theory of firm.

3) Microeconomics deals with allocation of resources.

4) Micro Economic theory assumes full employment.

5) Micro Economic theory suggests policies to solve the problem of inflation.

Question 2(A):

Define or Explain the following concepts.

1) Micro Economics

2) Partial equilibrium

3) Economic efficiency

4) Individual economic unit

5) Resource allocation

Question 2(B):

Give reasons or explain the following statements.

1) Micro Economics is also known as price theory.

2) Micro Economics studies individual economic unit.

3) Micro Economics analyses partial equilibrium.

4) Micro Economic theories are based on certain assumptions.

5) Marginalism principle is used as a tool of analysis in microeconomics.

Write short notes on :

Features of Micro-Economics

Subject matter of Microeconomics

Historical review of Micro Economics

Importance of Micro Economics

Answer the following questions

Explain the meaning of Microeconomics with the help of few important definitions.

What is the scope & subject matter of Micro Economics?

What is the importance of Micro Economics?

What are the features of Micro Economics?

What are the basic economic questions dealt by Micro Economics?

Do you agree with the following statements? Give reasons.

i) Micro Economics studies behaviour of individual unit.

ii) Micro Economics is known as income theory.

Answer in details

Explain the features of Micro Economics.

Explain the scope and subject matter of Micro Economics.

Chapter 14 - Public Economics Economics Solutions for Class 12 Commerce Economics

Chapter 14 - Public Economics

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

Match the following

State whether the following statements are true or false.

1. The budget is a monthly statement.

2. Fiscal policy is related to public revenue and public expenditure.

3. Indirect taxes are paid directly by people to the government.

4. Financial year in India is from 1st March to 28th February.

Define or Explain.

1. Fine and Penalty

2. Budget

3. Plan expenditure

4. Recovery of Debt

Give reason of Explain the statement

1. Income collected from tax is a main source of government revenue.

2. Revenue receipts and Revenue expenditure is known as Revenue Budget.

3. Government revenue is more than government expenditure.

Distinguish between:

1. Revenue budget and capital budget

2. Direct tax and indirect tax

3. Deficit budget and balanced budget

Write short notes on:

1. Capital expenditure

2. Revenue receipts

Answer the following question

What are the main components of budget?

What are the source of non-tax revenue?

Explain the government’s development and non-development expenditure.

State with reasons whether you agree or disagree with the following statements.

1. Capital budget consists of revenue receipts and revenue expenditure.

2. When government expenditure is greater than government revenue, it is called Surplus Budget.

3. During the period of inflation, Surplus Budget is advisable.

Answer in detail:

1. Explain the concept of Balanced Budget.

2. Explain capital receipts and capital expenditure as a part of Capital Budget.

Fill in the blanks with appropriate alternatives given in the brackets. Chapter 14 - Public Economics Economics Solutions for Class 12 Commerce Economics

Chapter 14 - Public Economics

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

1. The term budget is derived from __________ word Bougette (Latin/French/Germen/Greek)

2. __________ is an example of direct tax. (Excise duty/ Wealth tax/ Sales tax/ Gifts)

3. When Government revenue exceeds government expenditure it is known as __________ budget. (surplus/balanced/deficit/unbalanced)

4. During depression, __________ budget is preferable. (balanced/surplus/deficit/zero)

Answer: 

1. The term budget is derived from French word Bougette.

Explanation:

‘Bougette’ is a french word meaning a bag, or a wallet containing financial proposals. The term budget has been derived from this. A budget is a financial statement showing item-wise expected government receipts and government payments during a financial year.

2. Wealth tax is an example of direct tax.

Explanation:

Direct taxes are those taxes which are borne by the person on whom they are imposed. Since a wealth tax is directly imposed on the wealth of an individual, and the burden of this tax cannot be shifted to other, it is an example of direct tax.

3. When Government revenue exceeds, government expenditure it is known as surplus budget.

Explanation:

Surplus budget refers to the excess of government revenue over the expenditure. In other words, when the government revenue is greater than its expenditure, it is called a surplus budget.

That is,

Surplus budget = Government revenue – Government expenditure

4. During depression, deficit budget is preferable.

Explanation:

Deficit budget is a situation where the government expenditure exceeds its receipts. This kind of budget is preferable at the time of depression as during the depression, the output and economic activities are low causing unemployment in the country. In order to solve this problem, the government can increase expenditure for productive purposes and and use it for generating employment opportunities. This will help in increasing demand for goods and services and lowering unemployment.

Chapter 13 - Central Banking Economics Solutions for Class 12 Commerce Economics

Chapter 13 - Central Banking

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

Match the following

State whether the following statements are TRUE or FALSE.

1. Credit rationing is quantitative credit control measure of Central bank.

2. Regulation of Consumer Credit is a quantitative credit control measure of Central Bank.

3. Bank Rate is the selective credit control measure used by the Central Bank of the country.

4. Central Bank also performs commercial banking business.

5. The main objective of a Central Bank is to earn profit.

Define or Explain the following concepts.

1. Prof. Samuelson's definition of Central Bank

2. Open Market Operation

3. Bank Rate

4. Moral suasion

5. Cash Reserve Ratio

6. Clearing House System

7. Central Bank as Bank of Issue

Give reasons or explain.

1. Clearing house system economises the use of cash.

2. Central Bank acts as a lender of the last resort.

3. The CRR affects the lending capacity of the banks.

4. As a banker to the government, the Central Bank transfers government funds.

5. A Central Bank may take 'Direct Action' against the defaulting commercial banks.

Distinguish between:

1. Central Bank and Commercial Bank

2. Quantitative Credit Control Measures and Qualitative Credit Control Measures

3. Bank Rate and Open Market Operations

4. Cash Reserve Ratio and Statutory Liquidity Ratio

Write short notes on:

1. Definition of a Central Bank

2. Issuing Directives

3. Central Bank's measure of regulation of consumer credit

4. Regulation of Margin Requirements

5. Cash Reserve Ratio (CRR)

6. Bank Rate

7. Open Market Operations (OMO)

Answer the following questions:

1. Central Bank of the country has a monopoly of note issue. Explain.

2. How does a Central Bank (for example RBI) transfer funds from one place to another? Illustrate.

3. Explain the Data Collection and Publicity functions of the Central Bank.

4. What are the various measures of quantitative credit control?

5. What are the various measures of qualitative credit control?

State with reasons whether you agree or disagree with the following statements.

1. Central Bank is the Bank of Issue.

2. A co-operative bank acts as a lender of last resort.

3. Credit control is the function of the Central Bank of the country.

4. Central Bank is a profit-making institution.

5. Central Bank having monopoly of note issue is most appropriate institute of the government.

Answer in detail.

What are the qualitative measures of credit control?

Explain the functions of the Central Bank.

Explain Regulation of consumer credit as a qualitative measure of the Central Bank of India.