CBSE Assignment for Class XII Economics. Prepared by teachers of one of the best CBSE schools in Delhi. Based on CBSE and CCE guidelines. The students should practice these assignments to gain perfection which will help him to get more marks in CBSE examination.
Questions for revision
1. Define scarcity.
Ans : - Scarcity means shortage of resources in relation to their demand is called scarcity.
2. What is an economy?
Ans : - An economy is a system by which people get their living.
3. Define central problem.
Ans : - Central problem is concerned with the problems of choice (or) the problem of resource allocation.
4. Give one reason which gives rise to economic problems?
Ans : - Scarcity of resources which have alternative uses.
5. Name the three central problems of an economy.
Ans : - i) What to produce?
ii) How to produce?
iii) For whom to produce?
6. What is opportunity cost?
Ans: - It is the cost of next best alternative foregone.
7. Why is there a need for economizing of resources?
Ans: - Resources are scarce in comparison to their demand, therefore it is necessary to use resources in the best possible manner without wasting it.
8. What is production possibility frontier?
Ans: - It is a boundary line which shows the various combinations of two goods which can be produced with the help of given resources and technology.
9. Why PPC is concave to the origin?
Ans :- PPC is concave to the origin because of increased marginal opportunity cost.
10. Define marginal rate of transformation.
Ans :- MRT is the ratio of units of one good sacrificed to produce one more unit of other goods. MRT = Δy / Δx
11. What does a point inside the PPC indicate?
Ans :- Any point inside the production possibility curve indicate underutilization of resources
Please refer to attached file for CBSE Class 12 Economics Full Study Material