CBSE Class 12 Economics Macro Budget VBQs

CBSE Class 12 Value Based Questions - Economics - Macro Budget Based on CBSE and NCERT guidelines. Value based questions are now being given in exams to promote morals and values in students, Students should read and understand the following VBQs to get better understanding and score good marks in exams

Value based questions-Macro-Budget

1.suggest two measures through which the government can regulate the subsidy given to the farmers for electricity. (3)

Rationing of subsidies-depending upon the land size and land holdings.

Restricted hours of electricity supply for the use of farm lands Alternate source of energy could be explored. Collection of minimum charges from the farmers excepting the marginal farmers.

Value: social responsibility/social justice

2.what type of budget is advocated for emerging economies?

Deficit budget is the suitable one for the emerging economies, as they have to achieve maximum social welfare through lots of developmental projects. Govt. has to borrow and inject more capital to generate employment. Because, the revenue receipts will be less.

Value: social welfare.

3.What would you suggest to improve the rate of growth of real income of the weaker sections of the society in an emerging economy like India? Progressive taxation, grants for the mass employment schemes, development Of infrastructure, establishment of banks for productive credit creation.

Value: social justice/equality/social responsibility/care &concern.

4.Low income,low investment and low level of production leads to economic depression. How capital can be mobilized by the govt. to increase the production and capital formation? Foreign direct investment/ disinvestments to attract investment from abroad/ Borrowings from external sources.

Value: critical thinking.

5.Black money is detrimental to the economic growth of any economy. Suggest two measures to curb the same. Progressive tax system may be effectively introduced. Tax slabs and rates may be reduced at all levels to make it more reasonable and
acceptable. Incentives may be given for the corporate companies to attract more tax income. Taxation procedures may be simplified.

Value: social responsibility.

THEORY OF INCOME DETERMINATION

VALUE BASED QUESTIONS(Additional)

1.How can FDI in retail be used as a measure to reduce inflation in India? supply of essential commodities can be brought in to India through FDI, which will bring equilibrium in the market demand and supply to check inflation. Effective and efficient distribution of goods can be ensured govt. monitoring and price ceiling.

Value: problem solving.

2.RBI raises LRR when the country is suffering through inflation. How vital a tool can it be in this situation? LRR-it is the rate at which commercial banks maintains their reserve against the deposits.Their lending capacity is reduced when LRR is raised and
credit money in circulation is checked to control the inflation. Crdits become costlier.

Value: critical thinking.

3.70% crude oil in India is imported. Increase in oil price has played cascading effect on cost of production of all goods and prices have gone up several times. Suggest measures to reduce the import of oil. Explore the possibilities of alternatives and oil extraction with in India. Reduction of oil usage wherever possible. Usage of public transport system. Increasing taxes on oil to check its imports for essential usage. Rationing of oil distribution-including retail.

Value: critical thinking/problem solving

4.A part of population prefers to work even though suitable work is available to them. What values are affected under such situation? This situation is voluntary unemployment. It occurs due to lack of willingness to do the work. The available human resource remain unutilized and affects the economic growth as they share the development with others without their contribution.

Value: social responsibility./ maximum social welfare.

5.Nowadays market demand for gold investment is steadily increasing inspite of price rise. Suggest any two measures to check it. Sales tax to be raised. Import duty to be raised

Value: social responsibility.

Value based questions-Balance of payments

1.Do you think visiting foreign countries is wise, when the domestic currency value depreciate?
It is not advisable to carry foreign tours during depreciation of local currency, As we have to pay more for the foreign currency.

Value: Analytical thinking.

2. promotion of tourism in India would attract more foreign exchange- do you agree? Yes, it will attract more foreigners to visit India and brings in more exchange. Moreover, it will help to promote cultural exchange and values and international Understanding.

Value: universal brother hood/ international understanding

3. political instability leads to disequilibrium in balance of payments. How? Political instability may lead to large capital outflows and reduce the inflow Of foreign funds, thus leads to disequilibrium in the BOP.

Value: critical thinking