Some of the important questions of class 12 Economics are from Microeconomics Theory, Theory of Income and Employment, Money and Banking, BOP, Public Finance, etc. These topics can help students score well in the exam. Check here Important Questions for Class 12 Economics!
While preparing for the Economics for the class 12th exam, students must be aware of the important questions to focus on. The important questions for class 12 Economics are based on the CBSE Class 12 syllabus, which includes questions from both microeconomics and macroeconomics.
These questions can help students prepare effectively for their board exams and help them get an idea of the type of questions asked from each chapter. There are 5 chapters from microeconomics and 6 chapters from macroeconomics, and each chapter consists of 2-3 important questions. We have included in this article the important questions for class 12 economics chapter-wise and have included a PDF for the same.
Students can check more on important questions for class 12 Economics in the article below.
Important Questions for Class 12 Economics Microeconomics
Some of the important questions for class 12 Economics from Microeconomics have been listed below. These questions are included from each chapter of CBSE Class 12 Economics Syllabus:
Chapter 1: Introduction to Microeconomics
- What is the difference between microeconomics and macroeconomics?
- Define opportunity cost with examples.
- Explain the central problems of an economy.
Chapter 2: Theory of Consumer Behavior
- Define the law of demand with the help of a diagram.
- What are the factors affecting demand for a good?
- Explain the concept of price elasticity of demand.
- Derive the indifference curve and explain its properties.
Chapter 3: Production and Cost
- Explain the law of diminishing marginal returns with a diagram.
- What is the relationship between Total Product, Average Product, and Marginal Product?
- Define economies of scale and give examples.
Chapter 4: Market Equilibrium
- Explain the concept of equilibrium price and quantity in a market.
- Discuss the effects of a shift in demand or supply on market equilibrium.
Chapter 5: Forms of Market
- Differentiate between perfect competition and monopoly.
- What is price discrimination? Provide examples.
- Discuss the features of monopolistic competition.
Important Questions for Class 12 Economics Macroeconomics
Some of the important questions for class 12 Economics from Macroeconomics have been listed below. These questions are prepared on the basis of CBSE Class 12 Previous Year Question papers for Economics:
Chapter 1: National Income and Related Aggregates
- Define GDP, GNP, and NNP.
- Explain the difference between nominal GDP and real GDP.
- What are the methods of measuring national income?
Chapter 2: Money and Banking
- Define money and explain its functions.
- What is the role of the Reserve Bank of India in controlling credit?
- Differentiate between CRR and SLR.
Chapter 3: Determination of Income and Employment
- Explain the concept of aggregate demand and aggregate supply.
- What is the multiplier? Derive the formula.
- Discuss the relationship between savings and investment.
Chapter 4: Government Budget and the Economy
- What are the components of a government budget?
- Differentiate between revenue deficit, fiscal deficit, and primary deficit.
- Explain the concept of public goods with examples.
Chapter 5: Balance of Payments
- What is the difference between balance of trade and balance of payments?
- Define current account and capital account.
- What are the causes of disequilibrium in the balance of payments?
Chapter 6: Indian Economic Development (if included)
- What were the objectives of India’s Five-Year Plans?
- Discuss the role of agriculture in Indian economic development.
- What are the causes and effects of unemployment in India?
Important Questions for Class 12 Economics Chapter Wise PDF Download
The chapter-wise Important Questions for Class 12 Economics PDF can be downloaded by clicking on the links below:
| Chapter Name | |
| Microeconomics | Download PDF |
| Macroeconomics | Download PDF |
Class 12 Economics Important Topics Chapter Wise
While it is crucial to check the important questions for class 12 economics, it is equally important to check the topics they belong to. Listed are the chapter-wise important topics for class 12 Economics.
Part A: Microeconomics
Chapter 1. Introduction
- Central problems of an economy (What, How, and For Whom to produce)
- Concept of opportunity cost
- Production Possibility Curve (PPC) and its implications (shifts, rotations)
Chapter 2. Theory of Consumer Behavior
- Cardinal and ordinal utility approaches
- Indifference curve analysis: Properties of indifference curves
- Consumer equilibrium through indifference curve and budget constraint
- Demand: Law of demand and its determinants
- Elasticity of demand: Degrees, types, and methods of measurement (percentage and total expenditure methods)
Chapter 3. Production and Costs
- Law of Variable Proportions
- Returns to Scale
- Cost concepts: Total, Average, Marginal costs (Short-run vs Long-run)
- Relationship between TC, AC, and MC curves
Chapter 4. The Theory of Firm under Perfect Competition
- Features of perfect competition
- Concept of revenue: TR, AR, MR (with diagrams)
- Profit maximization condition: MR = MC
Chapter 5. Market Equilibrium
- Market equilibrium with fixed demand and supply
- Changes in demand and supply and their impact on equilibrium price
Chapter 6. Non-Competitive Markets
- Monopoly: Features and price discrimination
- Monopolistic competition: Features and product differentiation
- Oligopoly: Features, collusive and non-collusive
Part B: Macroeconomics
Chapter 1. National Income and Related Aggregates
- Concepts: GDP, GNP, NNP (factor cost and market price)
- Methods of calculating national income: Income, Expenditure, and Value Added methods
- Real vs Nominal GDP; GDP deflator
- Circular flow of income (two-sector model)
Chapter 2. Money and Banking
- Functions of money
- Money supply: M1, M2, M3, M4
- Role of the central bank: Quantitative and qualitative instruments (CRR, SLR, repo rate, etc.)
- Commercial banks: Functions and credit creation
Chapter 3. Determination of Income and Employment
- Aggregate demand (AD) and aggregate supply (AS)
- Components of AD: Consumption, investment, government expenditure, net exports
- Propensity to consume and save (APC, APS, MPC, MPS)
- Investment multiplier and its working
- Determination of equilibrium level of income: AD = AS approach
Chapter 4. Government Budget and the Economy
- Components of the government budget: Revenue and capital receipts, expenditure
- Fiscal policy: Revenue deficit, fiscal deficit, primary deficit
- Budgetary tools: Taxation and public expenditure
Chapter 5. Balance of Payments
- Components of the balance of payments: Current and capital accounts
- Balance of trade vs Balance of payments
- Exchange rate systems: Fixed, floating, and managed float
- Causes of disequilibrium in the balance of payments
These topics can help students score well in the class 12 Economics exam hence, students need to have a major focus on these questions.