List of top Economics Questions on Money and Inflation asked in CBSE CLASS XII

“During the colonial period the agricultural sector showed massive stagnation.” Do you agree with the given statement? Justify your answer with valid arguments.
“There exists a positive correlation between human capital formation and economic growth of a nation.” Justify the given statement with valid explanation.
“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.
\[ \begin{array}{|c|c|c|c|c|c|} \hline \textbf{Sector} & \textbf{India} & \textbf{China} & \textbf{Pakistan} & \textbf{India} & \textbf{China} & \textbf{Pakistan} \\ \hline \text{Agriculture} & 16 & 7 & 24 & 43 & 26 & 41 \\ \hline \text{Industry} & 30 & 41 & 19 & 25 & 28 & 22 \\ \hline \text{Services} & 54 & 52 & 57 & 32 & 46 & 35 \\ \hline \end{array} \]
State any two strategies to achieve the objective of sustainable development.
“Self-Help Groups provide stimulus to socio-economic development in rural areas.”
Justify the given statement with a valid explanation.
___ farming is a system that is helpful in restoring, maintaining, and enhancing the ecological balance.
(Choose the correct alternative to fill in the blank):

During the British rule, India’s foreign trade had various features except _________ .

Elaborate how and why carbon pricing should be promoted.
Differentiate between public provision and public production.
Explain the ‘redistribution of income’ objective of the Government Budget.
Distinguish between direct tax and indirect tax with the help of suitable examples.
"If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may lead to an unintended accumulation of inventories."
Do you agree with the given statement? Give valid reasons in support of your answer.

Identify the incorrect statement with reference to Cash Reserve Ratio (CRR):

Suppose in an imaginary economy, autonomous consumption = Rs. 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be ________ . (Choose the correct alternative to fill in the blank):

Read the following statements carefully: 
Statement 1: Money is a commodity which is generally accepted as a medium of exchange. 
Statement 2: Money solved the problem of double coincidence of wants. 
In the light of the given statements, choose the correct alternative from the following:

Study the following figure carefully and choose the correct alternative to fill in the blank:

 Balance of Payments Account 

“Under the liberalisation measures taken by the Government of India, Trade and Investment Policy reforms were extremely crucial.” Reject or support the given statement with valid arguments.
(i) Elaborate the need to promote women’s education in India.

State and elaborate whether the following statements are true or false, with valid arguments:
[i.] In the recent past, the Government of India has taken crucial steps, like Jan-Dhan Yojana, for efficient allocation of financial resources. 
[ii.] Worker–population ratio is an indicator used for analyzing the employment situation in a nation.

“In the current situation, Information Technology plays a vital role in achieving food security in a nation like India.” Justify the given statement.
Identify from the following options the {incorrect objectives of regulated agriculture market:} (i) To make the marketing system efficient and effective for farmers to get the best price of their products.
(ii) To discourage improvement of marketing infrastructure for farmers.
(iii) To prevent exploitation of farmers.
(iv) To discourage farmers from improving quality and quantity of their produce.

Read the following statements carefully: 
Statement 1: Under the colonial rule, basic infrastructure (like railways, post and telegraph, etc.) was developed. 
Statement 2: The real motive behind the infrastructural development in India was to strengthen the British interests. 
In the light of the given statements, choose the correct alternative from the following:

In the decade of the 1970s, Pakistan nationalized its _______ industries. 
(Choose the correct option to fill in the blank)

Classify the following as Revenue receipts or Capital receipts. Give valid arguments in support of your answer: Interest received on loan. Disinvestment receipts from the sale of a government company. (a) Interest received on loan.