Assertion Reason Questions for Class 12 Economics

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Here you will find assertion reason questions for class 12 economics. Chapterwise Assertion Reason Questions with Answers for Class 12 Economics are provided below. Go through them to increase your chances of scoring top marks in the CBSE 12th economics exam.

Chapterwise Assertion Reason for Class 12 Economics

PART A: INTRODUCTORY MACROECONOMICS

1. National Income and Related Aggregates Assertion Reason Questions
2. Money and Banking Assertion Reason Questions
3. Determination of Income and Employment Assertion Reason Questions
4. Government Budget and the Economy Assertion Reason Questions
5. Balance of Payment Assertion Reason Questions

PART B: INDIAN ECONOMIC DEVELOPMENT

1. Development Experience (1947-90) and Economic Reforms Since 1991 Assertion Reason Questions
2. Current Challenges Facing Indian Economy Assertion Reason Questions
3. Development Experience of India Assertion Reason Questions

Class 12 Economics Chapter List

PART A: INTRODUCTORY MACROECONOMICS

Unit-1: National Income and Related Aggregates

What is Macroeconomics?
Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

Circular flow of income (two sector model); Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.
Aggregates related to National Income:
Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP) – at market price, at factor cost; Real and Nominal GDP.
GDP Deflator and Welfare.

Unit-2: Money and Banking

Money – meaning and functions, supply of money – Currency held by the public and net demand deposits held by commercial banks.
Money creation by the commercial banking system.
Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit-3: Determination of Income and Employment

Aggregate demand and its components.
Propensity to consume and propensity to save (average and marginal).
Short-run equilibrium output; investment multiplier and its mechanism.
Meaning of full employment and involuntary unemployment.
Problems of excess demand and deficient demand; measures to correct them – changes in government spending, taxes and money supply.

Unit-4: Government Budget and the Economy

Government budget – meaning, objectives and components.
Classification of receipts – revenue receipts and capital receipts;
Classification of expenditure – revenue expenditure and capital expenditure.
Balanced, Surplus and Deficit Budget – measures of government deficit.

Unit-5: Balance of Payments

Balance of payments account – meaning and components.
Balance of payments – Surplus and Deficit
Foreign exchange rate – meaning of fixed and flexible rates and managed floating.
Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rate.
Managed Floating exchange rate system.

PART B: INDIAN ECONOMIC DEVELOPMENT

Unit-6: Development Experience (1947-90) and Economic Reforms since 1991:

A brief introduction of the state of Indian economy on the eve of independence. Indian economic system and common goals of Five-Year Plans.

Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade.
Economic Reforms since 1991:
Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST.

Unit-7: Current challenges facing Indian Economy

Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India

Rural development: Key issues – credit and marketing – role of cooperatives; agricultural diversification; alternative farming – organic farming

Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies

Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming.

Unit-8: Development Experience of India:

A comparison with neighbours
India and Pakistan
India and China
Issues: economic growth, population, sectoral development and other Human
Development Indicators.

CBSE Class 12 Economics Assertion Reason Questions

CBSE Class 12 Economics (code: 030) is a crucial subject for commerce and humanities stream students, and it requires diligent practice and memorization due to its theoretical nature. This exam, scheduled for March 17, plays a vital role in the academic journey of millions of CBSE students, making it an important milestone. Moreover, the knowledge gained from studying economics is not only useful in academics but also in daily life.

Preparation Tips for Class 12 Economics Exam

Getting prepared for the CBSE Examinations can be a challenging task, but with the right approach, you can be well-prepared. Every student wants to score well in the exams and be among the toppers. They all work hard to achieve this goal. The difference, between those who achieve the goal and those who do not, is not much. Here are a few points that will surely help in covering that difference and achieving the desired goal.

BE UPDATED
First, get a clear understanding of the syllabus and the exam pattern of the CBSE Examinations. This will help you know which topics you need to focus on and what to expect in the exam.

DEVISE A STUDY PLAN
Create a realistic study plan that covers all the subjects and topics that you need to study. Set realistic study goals for each day.

PRIORITISE THE TOPICS
Identify the important topics and prioritise them in your study plan. This will help you focus on the most important concepts and reduce stress.

MAKE NOTES AND SUMMARIES
Make concise notes and summaries of all the important topics. This will help you revise the concepts efficiently and effectively.

PRACTISE REGULARLY AND DILIGENTLY
Solving previous years’ question papers and sample papers will help you assess your preparation level and identify your weak areas. It will also help you manage your time effectively during the exam.

STAY COMPOSED
Try to keep calm and be in control of your feelings. Take a balanced diet, sleep well and do some physical exercise regularly. Spend some time doing the things which you like. Stay fit, calm and focused. It will help you immensely in your preparations and will lead you to success.

PREPARE FOR THE BIG DAY
The examination day holds a great significance for the learners. Most of the learners try to assimilate as much as they can, just before the examination. This stressful, last minute preparation should be avoided, as much as possible. The preparation should end a night before the examination. A sound sleep is important for a fresh start in the morning. Avoid over-stressing just before the examination.

MINDSET DURING THE EXAM
In the examination hall, ensure that you have filled your particulars in the answer sheet correctly. Answer the questions according to the given directions. First attempt the questions that you can answer easily. It will create a positive mindset.

EFFECTIVE USE OF TIME
If you have solved the paper before time, don’t leave the examination hall. Revise your answers and look for any correction or improvement. There is always room for improvement. Do utilise your time effectively.