Class 12 Economics Important Questions

CHAPTER-1 BASIC CONCEPTS OF ECONOMICS AND ALLOCATIONS RESOURCES

DEFINE 1 MARKS

1. What is the production possibility curve?
2. What is the opportunity cost?
3. Write in brief about scarcity and choice.
4. Define possibility curve.
5. Define an economic problem.
6. What are the main reasons behind the origin of an economic problem?
7. What do you mean by economizing resources?
8. Why do central problems arise?
9. Define an economic problem.
10. What does the production point inside the production possibility curve indicate?

SHORT QUESTIONS 5 MARKS

1. Explain the features of a mixed economy.
2. Explain the scarcity and choice with examples.
3. Explain the production possibility curve with a diagram.
4. Describe the allocation of the resources.
5. Explain the concepts of productions of the possibility curve.
6. Write short notes on the allocation of resources.
7. Explain the concepts of scarcity and resources with choice.
8. Explain the problems related to allocations of resources in economics.

LONG QUESTIONS ANSWERS 8 MARKS

1. What is the production possibility curve? Explain it with the help of a table and a diagram.
2. Explain the concept of the production possibility curve. Why does it expand outwards?
3. What do you understand by the allocation of resources? Explain its curve with a suitable diagram.

CHAPTER-2 MACROECONOMICS MARKET AND REVENUE CURVES

DEFINE

1. Define total revenue.
2. Define marginal revenue.
3. Define total revenue.
4. What is average revenue?

SHORT QUESTIONS 5 MARKS

1. Show the relations among the total revenue, marginal revenue, and average revenue in perfect competition.
2. Explain the nature of Average revenue and marginal revenue.
3. Explain the nature of average revenue and marginal revenue in the chart.
4. Explain the nature of marginal revenue and average revenue under the monopoly market.
5. Derive AV and MR curves from the TR curves in perfect competition.

LONG QUESTIONS 8 MARKS

1. Define the Average Revenue, Marginal Revenue, and Total Revenue curve of a firm in perfect competition.
2. Describe the nature of AR, TR, and MR, under a monopoly market with the help of a chart.
3. Explain the relationship between AR, TR, and MR under a monopoly market.
4. Describe the nature of AR, TR, and MR, under a monopoly market with the help of a diagram.
5. Define the Average Revenue, Marginal Revenue, and Total Revenue curve of a firm in a perfect monopoly market.

NUMERICALS

Answer the following questions based on a given table.

Units	Prices	Total revenue	Marginal revenue	Average revenue
1	10	….	…	…
2	10	….	….	….
3	10	...	….	….
4	10	….	….	….
5	10	….	….	….

1. Complete the given table.
2. Construct the marginal revenue and average revenue curves based on the completed table.

CHAPTER-3 COST CURVES

DEFINE

1. What is the total fixed cost?
2. What is a variable cost?
3. Distinguish between fixed and variable costs?
4. Define Marginal cost?
5. Write is the short-run cost?
6. Write the meaning of variable cost?
7. Present short-run average cost curves in a diagram.
8. Show total fixed cost, Total variable cost, and total cost curves in one diagram.

SHORT QUESTIONS 5 MARKS

1. Explain the relationship among total fixed cost, total variable, and total cost in the short run.
2. Show the relationship between total cost. total variable cost in the short run.
3. Show the relationship between marginal cost and average cost.
4. Show the relationship between total fixed cost, total variable, and total cost.
5. Explain with a diagram, the total fixed cost and total variable cost in brief.
6. What is the relationship between the average and marginal cost curves?

LONG QUESTIONS 8 MARKS

1. Explain the relationship between total cost, Average cost, and Marginal cost with the help of a diagram.
2. Explain the nature of short-run cost curves in detail.
3. Explain the derivations of short-run total curves in detail

NUMERICALS

Answer the following questions based on the following table.

Output	TFC	TVC	TC	AC	MC
0	100	0
1	100	10
2	100	24
3	100	47
4	100	72
5	100	100
6	100	140

1. Complete the table by computing the total, average, and marginal costs.
2. Draw the average and marginal cost curves from the completed table.

CHAPTER-4 THEORY OF PRICE AND OUTPUT DETERMINATIONS

DEFINE QUESTIONS 1 MARKS

1. What is firm equilibrium?
2. Define perfect competitions.
3. What is a monopoly?
4. Mention the assumptions of a perfect competition market.
5. Write any four features of a perfectly competitive market.
6. Mentions the conditions of firm equilibrium.
7. Two characteristics of perfect competition.
8. Define monopoly.
9. Define the competitive market.
10. Conditions of firm equilibrium.

SHORT QUESTIONS 5 MARKS

1. Explain how a firm determines its equilibrium level of output by using the MR-MC approach under perfect competition.
2. Explain the features of monopoly markets.
3. Describe the monopolist equilibrium according to the MC=MR.
4. What is a monopoly market? what are its assumptions write in detail.
5. Explain the features of the monopoly market.
6. How is price determined under a perfectly competitive market?

LONG QUESTIONS 8 MARKS

1. How equilibrium price and output are determined in the short run by a firm using the MR-MC approach under a monopoly market? Explain.
2. How are price and output determined under monopoly?
3. Define monopoly. How are price and output determined under it.?
4. What is perfect market competition? How are price and output determined under it?
5. How is output ad price determined under a monopoly market described with the help of a diagram?

CHAPTER-5 BANKING SYSTEM AND MONETARY POLICY

DEFINE QUESTIONS 1 MARKS

1. Define money market.
2. Define monetary policy.
3. Define the capital market.
4. Define saving deposits in a commercial bank.
5. Define the money market.
6. Functions of commercial banks.
7. Define saving deposit.

SHORT QUESTIONS 5 MARKS

1. Describe the functions of the commercials bank.
2. Describe the main functions of the central bank.
3. Describe the major functions of a commercial bank.
4. Describe the role of the capital market in the economic development of the country.
5. Discuss the role of the banking system.
6. Write short notes on the money market and capital market.

LONG QUESTIONS 8 MARKS

1. What are the functions of the commercials bank? Explains
2. What are the functions of the central bank? Explains

CHAPTER-6 POVERTY, INEQUALITY, UNEMPLOYMENT, AND HUMAN RESOURCES

DEFINE QUESTIONS

1. Define economic growth.
2. Define unemployment.
3. Define economic development.
4. Define poverty.
5. Define human resources.

SHORT QUESTIONS ANSWER

1. Evaluate the efforts made by the government for the reduction of the unstable economy in Nepal.
2. Describe the remedial measures for stopping unemployment.
3. Describe the following table.

AREAS	POPULATION DENSITY
RURAL	153
URBAN	1234
HIMAL	22
HILLS	156

All the best for your exams!