List of top Economics Questions on Cost Function and Marginal Cost asked in CBSE CLASS XII

On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (\(NDP_{FC}\)): \[ \begin{array}{|l|l|l|} \hline \textbf{S. No.} & \textbf{Items} & \textbf{Amount (in ₹ crore)} \\ \hline (i) & \text{Gross Domestic Fixed Capital Formation} & 300 \\ (ii) & \text{Exports} & 70 \\ (iii) & \text{Government Final Consumption Expenditure} & 400 \\ (iv) & \text{Consumption of Fixed Capital} & 50 \\ (v) & \text{Household Final Consumption Expenditure} & 590 \\ (vi) & \text{Inventory Investment (Net)} & -60 \\ (vii) & \text{Imports} & 80 \\ (viii) & \text{Net Indirect Taxes} & 50 \\ (ix) & \text{Net Factor Income from Abroad} & 40 \\ \hline \end{array} \]
“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.”
Justify the given statement with a valid explanation.

The present-day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where ________ . 
(i) Initially reforms were initiated in agriculture, foreign trade, and investment sectors 
(ii) The policy of dual pricing was adopted 
(iii) The Government revoked the policy of Special Economic Zones

\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ Crore)} \\ \hline (i) & \text{Tax Receipts} & 1,200 \\ \hline (ii) & \text{Revenue Expenditure} & 3,700 \\ \hline (iii) & \text{Non-Tax Receipts} & 2,000 \\ \hline (iv) & \text{Recovery of Loans} & 145 \\ \hline (v) & \text{Capital Expenditure} & 500 \\ \hline (vi) & \text{Disinvestment} & 120 \\ \hline (vii) & \text{Interest Payments} & 1,070 \\ \hline \end{array} \]
\[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{(APC)} & \textbf{(MPS)} \\ \hline 0 & -50 & -- & -- \\ \hline 100 & 0 & 1 & 0.5 \\ \hline 200 & 50 & \frac{3}{4} & 0.5 \\ \hline 300 & 100 & \frac{2}{3} & 0.5 \\ \hline \end{array} \]

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: 
Assertion (A): The equilibrium level of income is determined when ex-ante spending and ex-ante output are equal. 
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.

Identify which of the following will appear on the debit side in the Capital Account of India’s Balance of Payments:

Read the following statements – Assertion (A) and Reason (R). Choose the correct option given below: 
Assertion (A): China has used the market mechanism to create additional social and economic opportunities for its citizens. 
Reason (R): Social infrastructure creation by the government has brought positive results in human development indicators in China. 
 

“Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).”
Do you agree with the given statement? Justify your answer with a valid hypothetical numerical example.
Discuss the likely consequence on money supply if the rate-setting panel had decreased the said rate.
Distinguish between fixed exchange rate system and flexible exchange rate system.

“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” 
The above-mentioned transactions will be recorded on ______ side of _________ account of Balance of Payments of India. 
(Choose the correct alternative to fill in the blanks)

\[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \ldots(i)\ldots \\ \hline II & 4000 & \ldots(ii)\ldots & 800 \\ \hline \ldots & \ldots & \ldots & \ldots \\ \hline Total & \ldots(iii)\ldots & \ldots(iv)\ldots & 5000 \\ \hline \end{array} \]

Economic reforms were introduced in India and Pakistan in the years __________ and _____________ , respectively. 
(Choose the correct option to fill in the blanks)

Explain the stabilisation function of the Government Budget.
Justify the following statements with valid arguments: Money serves as the ‘medium of exchange’ for transactional purposes in an economy.
Identify the correct equation from the following:

Identify the incorrect feature(s) of money supply (\(M_1\)) from the following: 
(i) It is measured at a point of time. 
(ii) It does not include stock of money held by the government. 
(iii) It is always the currency in the hands of the Central Bank of a nation.