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Question : Categorise the following into stock and flow with reasons.
(a) Profits (b) Balance in bank account
OR
If real income is Rs. 400 and price index is 105, calculate nominal income.
Answer : (a) Profit is a flow as it is calculated during a period of time.
(b) Balance in bank account is a stock as it is calculated at a particular point of time.
OR
(i) Real Income = Price of base year × Quantity of Current Year
400 = 100 × Quantity of Current Year
Quantity of Current Year = 400/100 = 4
(ii) Nominal Income = Price of Current year × Quantity of Current Year = 105 × 4 = Rs. 420
Question : Give the meaning of average propensity to save. What is its relation with average propensity to consume?
OR
Find national income from the following data:
Autonomous consumption = Rs. 100, Marginal propensity to consume = 0.80, Investment = Rs. 50
Answer : The ratio of aggregate saving to aggregate income is known as average propensity to save (APS). By dividing aggregate saving by aggregate income, we get APS. Symbolically,
APS = S/Y
The sum of APC and APS is equal to one. It can be proved as under:
We know, Y = C + S
Dividing both sides by Y, we get,
Question : What is marginal propensity to consume? How is it related to marginal propensity to save?
Answer : (i) The ratio of change in consumption (C) to change in income (Y) is known as marginal propensity to consume.
It indicates the proportion of additional income that is being spent on consumption.
MPC = ΔC/ΔY
(ii) The sum of MPC and MPS is equal to one. It can be proved as under:
We know: ΔY = ΔC + ΔS
Dividing both sides by ΔY, we get,
ΔY/ΔY = ΔC/ΔY + ΔS/ΔY
1 = MPC + MPS
Question : Name the major indicators of health care.
OR
Why is it not an easy thing for a country like India to maintain employment growth at 2%?
Answer : Following are the major indicators of health care:
(i) Infant mortality rate (ii) Maternal mortality rate
(iii) Life expectancy (iv) Nutrition levels
(v) Global burden of disease
OR
It is not an easy thing for a country like India to maintain employment growth at 2% because of:
(i) Huge Population: 2% jobs means 24 crores jobs per annum.
(ii) Craze for capital intensive techniques: Indian industrialists have a craze for capital intensive techniques.
(iii) Ignorance of cottage and small scale industries: In India, cottage and small scale industries are not being given as much importance as required.
Question : Differentiate between renewable and non-renewable resources.
Answer : Difference between renewable and non-renewable resources is summarised below:
Question : Are the following statements true or false? Give reasons.
(a) Capital formation is a flow
(b) Bread is always a consumer good
OR
Distinguish between domestic product and national product. When can domestic product be more than national product?
Answer :
Question : Why are women paid fewer wages for the same work as compared to men?
Answer : Women are paid fewer wages for the same work as compared to men because:
(i) There are rules but these are not followed especially in informal sector.
(ii) There is a social prejudice which claims that males are more productive than females.
(iii) Males are more committed to their work life. Females have dual responsibility which reduces their commitment to their wok life.
(iv) Since females do not have complete financial responsibility, they agree to work for lower wages.
(v) Males have better physical abilities as compared to females.
Answer : Women are paid fewer wages for the same work as compared to men because:
(i) There are rules but these are not followed especially in informal sector.
(ii) There is a social prejudice which claims that males are more productive than females.
(iii) Males are more committed to their work life. Females have dual responsibility which reduces their commitment to their wok life.
(iv) Since females do not have complete financial responsibility, they agree to work for lower wages.
(v) Males have better physical abilities as compared to females.
Read the following text carefully and answer question number 8 and 9 given below:
Population growth in India and China
In both China and India, the gap between births and deaths is narrowing, resulting in slower population growth in both nations, as shown in Figure 2.7. Population growth rates are expected to be lower in China than in India throughout the 2000–2035 period. India’s population growth rate has been declining since before 2000 and is expected to do so at about the same rate throughout the period shown. By contrast, although China’s population growth rate is considerably lower than India’s, China’s rate is quite flat between 2002 and 2011 but is expected to fall somewhat more rapidly than India’s thereafter. Beginning in 2027, the number of deaths in China is expected to exceed the number of births, resulting in natural population loss.
In both China and India, the gap between births and deaths is narrowing, resulting in slower population growth in both nations, as shown in Figure 2.7. Population growth rates are expected to be lower in China than in India throughout the 2000–2035 period. India’s population growth rate has been declining since before 2000 and is expected to do so at about the same rate throughout the period shown. By contrast, although China’s population growth rate is considerably lower than India’s, China’s rate is quite flat between 2002 and 2011 but is expected to fall somewhat more rapidly than India’s thereafter. Beginning in 2027, the number of deaths in China is expected to exceed the number of births, resulting in natural population loss.
Age-Sex Structure of the Population
The trends in fertility and mortality discussed above affect the present and projected age distribution of a population. Demographers typically use population pyramids to depict the age and sex structure of a population. Such figures are called pyramids because, historically for most nations, particularly in those with persistently high fertility rates, they resemble a pyramid, with a wide base representing large numbers of younger age groups and more narrow bands near the top representing smaller numbers of older people near the end of their natural life span.
The trends in fertility and mortality discussed above affect the present and projected age distribution of a population. Demographers typically use population pyramids to depict the age and sex structure of a population. Such figures are called pyramids because, historically for most nations, particularly in those with persistently high fertility rates, they resemble a pyramid, with a wide base representing large numbers of younger age groups and more narrow bands near the top representing smaller numbers of older people near the end of their natural life span.
Women in the Economy
A significant determinant of future economic growth in both countries will be the degree to which women participate in the formal economy (Apps and Rees, 2001; Bloom et al., 2009; Fortin, 2009). In both countries, women are much less likely to participate in the formal labor force than men are, but the difference is much greater in India. In 2006, 69 percent of women in China participated in the formal economy, while in India the rate was only 34 percent (Cook and Chen, 2007).
A significant determinant of future economic growth in both countries will be the degree to which women participate in the formal economy (Apps and Rees, 2001; Bloom et al., 2009; Fortin, 2009). In both countries, women are much less likely to participate in the formal labor force than men are, but the difference is much greater in India. In 2006, 69 percent of women in China participated in the formal economy, while in India the rate was only 34 percent (Cook and Chen, 2007).
Attitudes regarding women’s roles are presently more permissive in China than in India. For example, 87 percent of Chinese respondents to the World Values Survey feel that a university education is as important for a girl as for a boy, compared with 50 percent in India (World Values Survey Association, 2009; DaVanzo, Dogo, and Grammich, forthcoming). As a consequence, China appears better positioned than India to welcome women into the formal workforce.
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CBSE Class 12 Economics Sample Paper Term 2 2022 Set 01 Solved & Sample Question Papers for Class 12 Economics
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Explore downloadable sample sets for Class 12 Economics. Utilizing the CBSE Class 12 Economics Sample Paper Term 2 2022 Set 01 Solved allows learners to gauge exam readiness and master official CBSE assessment structures.
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- Exam Blueprint: Understand mark allocations and structural guidelines relevant to Class 12 evaluations.
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How to Analyze Your Performance in CBSE Class 12 Economics Sample Paper Term 2 2022 Set 01 Solved
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- Target Weaknesses: Class 12 students should analyze missed questions to rectify conceptual misunderstandings.
- Deep Revision: Re-read sections in the NCERT book for Class 12 Economics to clear doubts before solving items again.
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