Government Budget and The Economy Important Questions for class 12 economics Budgetary Deficiet and Its Measures 1. Budgetary Deficit When a government spends more than it collects by way of revenue, it incurs a budgetary deficit, i.e. Expected expense > Expected revenue.2.Measures of Budgetary Deficit It includes revenue deficit, fiscal deficit and primary … [Read more...]
Important Questions for class 12 economics Problems of Deficient and Excess Damand
Income Determination Important Questions for class 12 economics Problems of Deficient and Excess Damand 1. Full Employment Equilibrium In an economy, when AS = AD or S = I alongwith fuller utilisation of labour force, the economy is said to be in full employment equilibrium.2. Under Employment Equilibrium In an economy, when AS = AD or S = I but without the fuller … [Read more...]
Important Questions for class 12 economics Investment, Stock, Flows and Circular Flow of Income
Introduction Important Questions for class 12 economics Investment, Stock, Flows and Circular Flow of Income 1. Investment It is the process of capital formation by a firm or increase in the stock of existing capital stock.2. Components of Investment(i) Fixed investment In a specific time period (generally in an accounting year), the increase in the stock of fixed … [Read more...]
Important Questions for class 12 economics Foreign Exchange Rate
Foreign Exchange Rate and Balance of Payments Important Questions for class 12 economics Foreign Exchange Rate 1. Foreign Exchange It refers to the reserve of foreign currencies. e.g. INR is Indian currency except that all other currency will be foreign exchange for India.2. Foreign Exchange Rate It is the rate at which one currency can be exchanged for the other … [Read more...]
Important Questions for class 12 economics Concept and Components of Government Budget
Government Budget and The Economy Important Questions for class 12 economics Concept and Components of Government Budget 1. Government Budget It is a statement of expected/estimated receipts and expenditure of the government over the period of a financial year, i.e. 1st April to 31st March.2. Types of Budget (i) Balanced budget, i.e. estimated receipts = estimated … [Read more...]