Important Questions for CBSE Macro Economics Class 12 (2024-25)

Macroeconomics for class 12 is a very broad subject in terms of how the subject is a subdivision of economics that perceives things on a much larger scale compared to microeconomics. Here students will learn how to calculate the national income of the country and also the GDP. Students will also learn about the circular flow of income and how it helps the functioning of the economy Banking and its various operations, this includes the various types of banks and their functions present in the country. Students will also learn about the various state of employment and how income is determined. Students of class 12 will also learn about the budget and its various allocations in different sectors of the economy like agriculture, industrial, tourism, etc... Students will also learn about how India's liberalization policies created an open economy which benefited the country a lot with the foreign direct inflows and the income from the various imports and exports. 

CBSE Class 12 Economics Weightage 2024-25

Class 12 Macroeconomics Important Questions

For students to get a more detailed understanding of the subjects, they need to understand the various topics that are there in this subject. Here we will look at what the various chapters hold in class 12 macroeconomics. 

Introduction to Macroeconomics

This is the introductory chapter to macroeconomics where it starts with the differentiations between microeconomics and macroeconomics. This is important for students to know as they are two completely different aspects of economics. The chapter looks into the various features of a capitalistic economy and the various economic agents. Students will also learn what scarcity and opportunity mean in an economy. How resources are allocated and how it can advantage the poor and rich in a capitalistic society. The scope of macroeconomics is in economic policies, general unemployment, national income, and national growth. Students will also learn about the various goods produced in the economy like private goods, consumer goods, and substitute goods. 

National Income Accounting 

This is one of the most vital chapters in macroeconomics as students can score the most marks out of this chapter by just solving the sums. Students will learn about nonmarket activities and market activities. The difference between nominal GNP and nominal GNP. Students will also learn about the real flow of income and national disposable income. Students will also come to learn about the real flow of income and money flow of income. The various domestic factors to obtain national income. Students will also learn how to calculate real GNP. the difference between personal income and real income.

Money and Banking 

This chapter introduces students to how paper money came to be and the history of transactions from the Barter System. Students need to learn about all these as they can understand how money and banks play an essential role in the economy. Here students will learn about credit creation in banks and money supply. The various functions of commercial banks and the other types of banks in the country. The difference between bank rate and lending rate. Students will also learn who the lender of the resort is and also about the Lending reserve ratio. Students will also learn about high powered money and who controls the money supply in the country. 

Determination of Income and Employment 

How a two-sector economy functions and its contributions. Students will learn about the Average Propensity to Consume and the Average Propensity to Save. The level equilibrium of income and how it is determined. Students will also learn how the average propensity to consume can be greater than one. The differentiation between ex-ante and ex-post investment. The working of a multiplier with an example. Students will also learn if the value of APS can be negative. Students will also learn how to draw an inflationary gap on a map. The meaning of full employment. 

Government Budget and the Economy 

Here students will learn what a direct tax is and who it is levied on. The various policies are used to reduce the inequalities of income. Students will also learn who imposes budgetary policies. The difference between capital receipts and disinvestment. Students will learn about the types of taxes is a direct and indirect tax. The main items of capital receipts. The four different concepts of deficits include budget deficits, revenue, fiscal and primary deficits. Students will come to learn about the various problems that are there in the economy and how the government budget tried to rectify that. the example of developmental expenditures and what the surplus budget does for the economy. 

Open-Economy Macroeconomics 

In this chapter, we will look into how the country evolved after 1991. Students will learn about the balance of payments. What a foreign rate is and the source of supply for a foreign exchange and its difference from a fixed exchange rate. Students will also look into foreign exchange markets where international currencies are traded for another. Students will learn how the demand for foreign exchange rises or falls based on the price level. The difference between accommodating and autonomous transactions in the balance of payments. Students will also have a detailed study in the accounting of the Balance of Payments and how it can go into a deficit. 

Important Questions for Class 12 Economics

Macroeconomics important questions will give students an overview of the important topics in the subjects on how to better prepare for upcoming examinations. The following are the important questions-

1. Why does the demand for foreign exchange fall when the price falls? 

2. Distinguish between fixed exchange rate and flexible foreign exchange rate.

3. What determines the flow of exchange rate in the economy? 

4. What are the three major ways of public expenditure? 

5. Explain the four different concepts of budget deficits.

6. Explain the objectives of the government budget 

7. What are non-tax revenue receipts?

8. Explain the leading functions of commercial banks? 

9. What do you mean by high powered money?

10. Bring out the role of the central bank as the controller of the flow of money 

Significance of CBSE Macro Economics Class 12 Term 2 Important Questions with Solutions

There are a total of six chapters that focus on the important topics of Macro Economics such as national income accounting, money and banking, employment and income determination, a budget of a government, economy, etc. These topics are extremely crucial for the students to study and learn and develop a conceptual foundation.

Apart from the complete study materials, students will need the assistance of the important questions compiled by the experts for all these chapters. They have followed the latest Class 12 syllabus to cover all the topics and chapters for framing such questions. In fact, these questions come with proper solutions to follow and learn how to solve such fundamental questions easily.

The solutions have been framed in a simpler tone so that the students can comprehend the context of a question and learn how to use the concepts and principles studied in a chapter. This is how students can utilise these Important Questions for Class 12 Macroeconomics Board Exam as an essential part of their preparations.

Advantages of Macro Economics Class 12 Important Questions with Answers PDF

• There are individual files for all the chapters. Hence, you can easily find a file from the list and add it to your study sessions. In this way, you can complete preparing all the chapters faster and complete your syllabus accordingly.

• The answering format followed by the experts is based on the latest CBSE guidelines for Class 12. Hence, following these solutions will enable you to master this skill and score more in the exams.

• Resolve doubts on your own by using these solutions and make your answering skills better. Learn how the experts have formulated the answers by using the concepts mentioned in the chapters to clarify your doubts.

• Compare your answers to the solutions to find out where you need to focus more. Sue these questions as an assessment tool for your macro economics class 12 preparation.

Conclusion 

Macro Economics Class 12 is quite difficult for students without proper guidance. Here students will learn how to calculate the national income of the country and also the GDP. Students will also learn about the circular flow of income and how it helps the functioning of the economy Banking and its various operations, this includes the various types of banks and their functions present in the country. students can use this article to use their time wisely, it helps boost their confidence after consistent practice and students can plan their preparation accordingly. Students can work more diligently towards their goals and strive for higher marks as well. These important questions make sure that students are aware of the various topics in the subject and learn to master all the concepts. This chapter teaches students economics on a more macro level compared to microeconomics and the questions provided in this article helps students understand the subject better.

Download Class 12 Macro Economics Important Questions with Answers PDF 2024

Get the free PDF version of the important questions and their solutions. Practice solving these questions and make your preparation better. Learn how to attempt answering questions of these formats and score more in the Class 12 MacroEconomics exams.

Class 12 Economics Important Related Links

• CBSE Syllabus for Class 12 Economics

• NCERT Solutions for Class 12 Economics

• Previous Year Question Paper for CBSE Class 12 Economics with solutions

• CBSE Class 12 Economics Revision Notes

• CBSE Sample Papers for Class 12 Economics with Solution & Marking Scheme

CBSE Class 12 Study Materials

Other CBSE Class 12 Important Questions Related Links