CBSE repeated Questions of class 12 Macroeconomics

Most important  CBSE repeated questions in Exams of class 12 macroeconomics

 Question 1. Define multiplier. What is the relation between marginal propensity to consume and multiplier? Calculate the marginal propensity to consume if the value of multiplier is 4.

 Question 2. Explain the role of the reserve Bank of India as the "lender of last resort".

 Question 3. What is meant by inflationary gap? State three measures to reduce this gap.

 Question 4. What iss meant by aggregate demand? state its components.

 Question 5. The value of marginal propensity to consume is 0.6 and initial income in the economy is 100 crore. prepare a schedule showing Income, consumption and saving. Also show the equilibrium level of income by assuming autonomous investment of 80 crores.

 Question 6. Explain the meaning of the following:
(a) Revenue deficit
(b) Fiscal deficit
(c) Primary deficit

 Question 7. Explain the following objective of government budget:
(a) Allocation of resources
(b) reducing income inequalities

 Question 8.  (a)Explain the impact of rise in exchange rate on national income.
(b) Explain the concept of 'deficit' in balance of payments.

 Question 9. (a) Net National Product at market price, and (b) Gross Domestic Product at Factor Cost:
(1) Rent and interest -------------- 6000
(2) Wages and salaries -------------- 1800
(3) Undistributed profit -------------- 400
(4) Net indirect taxes --------- 100
(5) Subsidies ---------- 20
(6) Corporation tax ---------120
(7)  Net factor income to abroad ------- 70
(8) Dividends -----------80
(9) Consumption of fixed capital --------- 50
(10)  Social security contribution by employers ------200
(11) Mixed income ------ 1000

 Question 10. Distinguish between stocks and flows. Give an example of each.

 Question 11. Explain the "medium of exchange" Function of money.

 Question 12. Distinguish between direct taxes and indirect taxes. Give an example of each.

 Question 13. An economy is in equilibrium. From the following data, calculate the marginal propensity to save:
(a) Income ---------10,000
(b) Autonomous consumption ----- 500
(c) Consumption expenditure ------ 8000

 Question 14. Explain the "Bankers Bank" Function of the central bank.
 Question 15. Explain the process of credit creation by commercial banks.

 Question 16. What are non-debt creating capital receipts? Give two example of such receipts.
  Question 17. Distinguish between (a) Current account and capital account, and (b) Between autonomous transactions and accommodating transactions of balance of payments account.

  Question 18. Explain the precautions that should be taken while estimating national income by expenditure method.
                 OR
Calculate the (a) Gross National Product at market price and (b) Net National Disposable Income:
(1) Compensation of employees -------- 2500
(2) Profit -------- 700
(3) Mixed income of self-employed -------- 7500
(4) Government final consumption expenditure ------ 3000
(5) Rent -------- 400
(6) Interest -------- 350
(7) Net Factor income from abroad ------- 50
(8) Net current transfers to abroad -----------100
(9) Net indirect taxes ------- 150
(10)  Depreciation ------ 70
(11) Net exports ------ 40

 Question 19. Describe the circular flow of income in a two sector economy with help of diagram showing real flow and nominal flow.

 Question 20. Calculate (a) Depreciation (b) Subsidies (c) NDPfc
(In crores)
(a) GNPfc ------------95000
(b) Indirect Tax ------- 14000
(c) NDPmp -------- 100422
(d) NNPmp -------- 100000
(e) GNPmp ----------107000

 Question 21. Calculate national income by income and Expenditure method.
(a) Compensation of employees --------25
(b) Imports -------- 59
(c) Mixed income ------- 50
(d) Gross fixed capital formation ------- 120
(e) Private final consumption expenditure -------- 550
(f) Depreciation ---------- 10
(g) NFIA ---------20
(h) NIT -------- 80
(i) Change in stock -------20
(j) Rent ----------100
(k) Interest ---------200
(l) Profit --------- 50
(m) exports -------- 10
(o) Govt. final consumption expenditure ----- 60

Question 22. What is meant by 'Money supply'? Discuss in brief, the various constituents of  money supply.

Question 23. Distinguish between stock and flow variables with suitable examples.

question 24. What are capital goods? How are they different from consumption goods?

Question 25. Define investment multiplier. How is it related to marginal propensity to consume?

Question 26. What is monetary policy? State any three instruments of monetary policy.

Question 27. Define full employment in an economy. Discuss the situation when aggregate demand is more than aggregates supply at full employment income level.

Question 28. What are two alternative ways of determining equilibrium level of income? How are these related?

Question 29. What is government budget? Explain its major components.

Question 30. Explain (a) Allocation of resources and (b) Economic stability objectives of government budget.

Question 31. Discuss briefly the meanings of:
(a) Fixed Exchange Rate
(b) Flexible Exchange Rate
(c) Managed Floating Exchange Rate.

Question 32. Calculate (a) Operating surplus and (b) Domestic Income:
(1) Compensation of employees ------ 2000
(2) Rent and interest ------- 800
(3) Indirect taxes ----- 120
(4) Corporation tax ------- 460
(5) Consumption of fixed capital ------ 100
(6) Subsidies ------ 20
(7) Dividend ------ 940
(8) undistributed profits ---- 300
(9) Net factor income to abroad ----- 150
(10) Mixed income -------- 200

Question 33. Explain any three limitations of using GDP as a measure of welfare of a country.

Question 34. Discuss any two differences between GDP at constant prices and GDP at current prices.

Question 35. in an economy investment expenditure increased by 400 crores and MPC is 0.8 calculate increase in income and increase in saving.

Question 36. What is deflationary gap? What is its impact on output, employment and prices?