CBSE Class 12 Economics — Short Answer Questions

"Under the provisions stated in the Section 20 and Section 21 of the Reserve Bank of India (RBI) Act, 1934, the RBI is mandated to handle the banking operations of the Government of India." In the light of the given statement, elaborate the indicated function of the Reserve Bank of India.

"In the late 1970's China's population growth rate has sharply declined as compared to India." Elucidate the reasons and impacts of this situation.

(A) Meera and Shahid are two classmates, who were comparing India's economic growth over the years. Meera referred to the increase in Gross Domestic Product (GDP) at current prices prevailing in market, while Sahid insisted on considering GDP after adjusting for inflation. Their debate on which of the two measures gives a true picture of people's well-being, remained inconclusive. Considering the above mentioned situation, elaborate with valid reason, which of the two variables is considered a better indicator of welfare and why ? OR (B) Two friends, Ravi and Harry were discussing whether the money received from sale of an old car should be included in India's National income. Ravi was of the view that it should be included in India's National income while Harry did not agree with him. They also had difference of opinion on the treatment of brokerage paid to the car dealer. As their Economics teacher, state the treatments with valid arguments.

Michel, an entrepreneur of Country Zeta, borrowed $5 million from an overseas bank to expand his textile business. During the same financial year, the Government of Country Zeta secured a loan of$ 30 Billion from an International Financial Institution to manage the ongoing Balance of Payments. Samuel, an Economics student categorised both of these transactions as `autonomous transactions' in the BoP account of the country. Do you agree with his classification ? Justify your answer with valid reasons.

(A) For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA). On the basis of the following data, estimate the value of Domestic Sales of both the firms (X and Y) : S. No. | Items | Amount (in ` crore) (i) Value of Output of firm Y | 700 (ii) Purchases by firm X from firm Y | 200 (iii) Exports by firm X | 100 (iv) Purchases by firm Y from firm X | 150 (v) Additions to Stock of firm X | 50 OR (B) Ms. Reeta D'Costa, retired from the post of Income Tax Commissioner in the year 2023. Apart from her pension, she also receives the following from various sources : - Rental income from a flat she owns. - Interest income from her fixed deposits. - Money sent by her children settled abroad. Identify and classify, her monthly incomes into `factor income' and `transfer income', with valid reasons.

(A) "Employment in the formal sector guarantees better income and social benefits compared to informal sector job." Defend or refute the above statement with valid reason and example. OR (B) During the `Mann ki Baat' program aired on 29th June, 2025, Prime Minister shared that World Health Organisation (WHO) has declared India as a Trachoma free (an eye disease). This achievement, he shared, is a result of sustained efforts in health care, sanitation, awareness and medical access. In the light of the above statement, explain how investments in health care contributes to a nation's development. Support your answer with valid arguments.

(A) State and explain any two changes which were observed in India's occupational structure during the British Rule. OR (B) "The British sought to achieve their vested interest through their policies of infrastructural development in India." Do you agree with the given statement ? Justify your answer with valid explanation.

In the light of the given chart, analyse the gender-wise sectoral distribution of workers. Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 32 (B). Elaborate any two reasons behind more women employed in economic activities in Rural areas as compared to Urbans areas.

"At the time of independence, both India and Pakistan inherited similar colonial economic structures. Both the nations adopted many similar economic planning strategies." Explain any two such similarities in the developmental path of India and Pakistan.

Refer the given image carefully : Explain any two measures that can be taken by the Central Bank to control the indicated macroeconomic problem. Note : The following question is for the Visually Impaired Candidates only in lieu of Q. No. 15. State and explain any two measures that can be taken by the Central Bank to control the situation of deficient demand.