Distinguish between final goods and intermediate goods. Give an

Subject

Economics

Class

CBSE Class 12

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Sample Papers

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 Multiple Choice QuestionsShort Answer Type

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21.

Distinguish between final goods and intermediate goods. Give an example of each.


basis of difference final goods  intermediate goods
usage finals goods are those goods which are used by the consumers for final use. intermediate goods are those goods which are not ready for final consumption and are used as raw materials for further production.
resale value

these goods are not meant for sale. 

 these goods are resold for further production.
example sugar, salt purchased by consumer for final consumption. cotton purchased by a textile producer for making cloth from it.  
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22.

Explain the store of value function of money.
Or
State the meaning and components of money supply.

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23.

Explain the basis of classifying taxes into direct and indirect tax. Give examples

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24.

Explain ‘banker to the government’ function of the central bank.
Or
Explain the role of reverse repo rate in controlling money supply.

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25.

Explain how government budget can be used to influence distribution of income ?

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26.

An economy is in equilibrium. From the following data about an economy calculate autonomous consumption.
(i) Income = 5000
(ii) Marginal propensity to save = 0.2
(iii) Investment expenditure = 800

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27.

Why does the demand for foreign currency fall and supply rises when its price rises ? Explain.

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 Multiple Choice QuestionsLong Answer Type

28.

Explain ‘non-monetary exchanges’ as a limitation of using gross domestic product as an index of welfare of a country.
Or
How will you treat the following while estimating domestic product of a country ? Give reasons for your answer :
(a) Profits earned by branches of country’s bank in other countries
(b) Gifts given by an employer to his employees on independence day
(c) Purchase of goods by foreign tourists

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29.

Calculate (a) net domestic product at factor cost and (b) gross national disposable income :

s. no.   in RS
1 Private final consumption expenditure 8000
2 Government final consumption expenditure 1000
3 exports 70
4 imports 120
5 Consumption of fixed capital 60
6 Gross domestic fixed capital formation 500
7 change in stock 100
8 Factor income to abroad 40
9 Factor income from abroad 90 
10 indirect taxes 700
11 subsidies 50
12 Net current transfers to abroad (-)30
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30.

Assuming that increase in investment is Rs. 1000 crore and marginal propensity to consume is 0.9, explain the working of multiplier.

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