CBSE Class 12 Economics Question Bank & Sample Questions PDF 2022-23

CBSE Class 12 Economics Question Bank & Sample Questions PDF 2022-23

1. What is unemployment?
Ans. It is a situation when people are willing to work at the existing wage rate, and are able to work,
but are not getting work.

2. What is meant by underemployment?
Ans. Underemployment is a situation in which a worker does not get a full time job.

3. Define occupational structure.

Ans. Distribution of workforce across Primary, secondary and tertiary sectors is called occupational distribution.

4. What is casualisation of workforce?
Ans. Casualisation of workforce refers to a situation when the percentage of casually- hired workers in the total workforce tends to rise over time.

5. What is informalisation of workforce?
Ans. Informalisation of workforce refers to a situation where percentage of workforce in the formal sector trends to decline and that in the informal sector tends to rise.

6. What is jobless growth?
Ans. jobless growth is a situation when the level of output in the economy tends to rise owing to
innovative technology without any meaningful rise in the level of employment. So that unemployment stays as a serious problem, even when there is a rise in GDP.

7. Define the worker population ratio.
Ans. Worker population ratio is an indicator which is used to analyse the employment situation in the country. It is measured as a ratio of workforce to total population of the country.
Worker Population Ratio=Total Number of Workers×100/Total Population

8. Unemployment and poverty are reflections of each other. Give reason.
Ans. It is true because unemployed people do not earn wages and salaries. Thus, poverty is the obvious consequence of unemployment.

9 . Choose the correct alternative:
Assertion: Self employed is a major source of livelihood in both the rural areas and urban areas.
Reason:In rural areas rural people work on their plots of land and in urban areas urban people have their own resource to work.
(a)both reason and assertion are true and reason is correct explaination of assertion.
(b) both reason and assertion are true and reason is not correct explaination of assertion
(c)assertion is true but reason is false
(d)assertion is false but reason is true.

10)Who are workers.
Ans) all those persons who are engazed in economic activities .

11)The newly emerging jobs are found mostly in the————(primary, tertiary) sector.
Ans) tertiary

12)Less women are found in regular salaried job . true or false

13.Explain classification of workforce.
The number of persons, who are actually employed at a particular time are known as workforce.

14.Define GDP
Sum total of the goods and services produced in the economy during a year is called GDP .

15.why are regular salaried employees more in urban areas than in rural areas?
Regular salaried employees are more in urban areas as considerable section of urban people are able to study in various educational institution and it enables them to look for an appropriate job to suit their qualifications and skills. However, in rural areas, most of thep people are illiterate and lack skills, which aren needed for regular Employment.

16. What do you mean by Informal sector Establishment?

All those private enterprises which hire less than 10 workers are called Informal sectors. Eg: Workers who work in farms, owners of Small Enterprises, Agriculture labourers. Here they do not get regular income. No protection or regulation by government can be dismissed at any time. Live in slums, use outdated technology, do not maintain accounts.

17.What is meant by frictional unemployment?
Temporary unemployment, which exists during the period, wherein. Workers leave one role and join some other, are called frictional unemployment.
People those who are not working and are neither seeking nor available for work are consider to be outside the labour force.

18.What are the Causes of unemployment ? what are remedial measures to solve problem of
1. Slow rate of economic growth
2. Population explosion
3. Underdeveloped agriculture
4. Defective educational system
5. Slow growth of Industry
6. Decline of collage and small industry .
7. Faulty planning
8. Inadequate employment planning.
9. Low capital formation.
Remedial measures for unemployment .
1. Accelerating growth rate of GDP
2. Control of population growth
3. Development to small scale enterprises.
4. Encouragement in infrastructure.
5. Special employment programmes.
6. Rapid industrialisation.

19. Why does workers in rural work migrate to urban areas during some part of the year?
Ans. People in rural areas are engaged mostly in agriculture, which is a seasonal activity. So, rural workforce migrates to urban areas during some part of the year.

20.Name the two kinds of urban unemployment?
1. Industrial unemployment
2. Educated unemployment
21.What do you mean by industrial unemployment?
It refers to the unemployment among the illiterates who wish to work in industrial establishment.

22.Give the meaning of educated unemployment.
Educated unemployment refers to the unemployment among the Educated people.

23.What is mean by wage employment?
An arrangement in which a worker sells his labour and earns wages in return.

24.Men are found in greater proportion than women in regular salaried employment.Why?
Rural unemployment is of two types :
1. Disguised unemployment
2. Seasonal unemployment
26.What is mean by seasonal unemployment?

Unemployment that occurs at certain seasons of the year is known as Seasonal unemployment.

27.Give the meaning of disguised unemployment?
Disguised unemployment refers to a state in which more people are engaged in work than are really needed.

Class 12 Economics Question Bank 2022-23 for 2023 CBSE exam

1. Women in rural areas are ready to work even at low wage rate why?
Ans. This is because of two reasons:
(I) There is widespread poverty in rural areas. poverty compels the women in rural areas to accept
low- wage occupations.

2. (ii) Women in rural areas are averse to migration. They are reluctant / willing to migrate to urban areas for jobs. Owing to the lack of education, they are not even capable of finding jobs outside rural areas. Accordingly, they prefer to be engaged in farm and non-farm activities, but in the rural areas only.

2. How do you evaluate Start-ups in India as a solution to the problem of unemployment? Write two observations.
Ans .(i) Start-up are expected to generate opportunities of self- employment, and are therefore,
solution to the problem of unemployment. (ii) Start-ups are to be aided with technical and financial support by the government. Accordingly, these are expected to encourage the use of latent resources (particularly entrepreneur skill and small savings) . When latent resources are used, employment opportunities are bound to arise.

3. “The gap between the growth of GDP and Employment is widening.” State the trend which highlight this phenomenon.
Ans. This trend is termed as ‘Jobless growth’. Jobless growth refers to a situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities. There is a situation when there is an overall acceleration in the growth rate of GDP in the economy without corresponding expansion in employment opportunities.

4. ‘Labour- force’ and ‘Work-force’ are one and the same thing. Comment.
Ans. The given statement is incorrect. Labour- force includes all those who are working and though not working, are seeking and are available for work, I.e. Labour -force = Persons
working + persons seeking and/ or available for work. On the other hand, Work-Force includes all those who are actually employed at a particular time.

5. Analyse the recent trends in sectoral distribution of workforce in India. Ans. The distribution of workforce in India in different sectors is as follows:
(I) Primary sector is the main source of employment (60.4%), for majority of workers in India.
(ii) Secondary sector provides employment to only 15.8% of workforce.
(iii) 23.8 percent of workers are engaged in the service sector.

6. You are residing in a village. If you are asked to advise the village panchayat, what kinds of activities would you suggest for the improvement of your village which would also generate employment.
Ans. The following two activities can be suggested to improve the village and to generate employment:
(I) Setting up of small- scale and cottage industries: Small -scale and cottage industries will not only generate new employment opportunities but will also act as subsidiaries to the industrial sector by providing them raw material.
(II) Encourage non-farm employment: Disguised and seasonal unemployment is a common features of indian economy.

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Fill in the blanks: –
Q,1 The country’s growth of aggregate real output was less than ______ during the first half of the twentieth century.
Q.2 The Indian economy was a/an _______ economy at the time of independence
Q.3 ______ of agriculture increased the burden of revenue on farmers
Q. 4 The distribution of the working population in different sectors of the economy offers a glimpse of ______ structure.
Answer: occupational
Q.5 The second stage of demographic transition began after ________ in India.
Q.6 ______ were developed by the British raj as a means to enlarge the size of the market for the British goods.
Ans Railways
Q.7 The British introduced the railways in India in ________
Q.8 The ________ sector accounted for 17.2 percent of the working population on the eve of
Ans-services sector
Q.9 India’s first official census was undertaken in ________
True /false
State whether the following statements are true or false.
Q.1 India was a prosperous and wealthy economy prior to the advent of British rule.
Q.2.The colonial rule destroyed India’s traditional handicraft industry.
Ans- true
Q.3.The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of India.
Q. 4. India was reduced to an importer of primary products.
Q.5.Land settlement introduced by the colonial government resulted in stagnation in the agricultural sector.
Q.6.The contribution of the new industrial sector to the Gross Domestic Product (GDP) expanded significantly during British rule.
Q.7.The secondary sector accounted for only 10.1 percent of the working population on the eve of independence.

Q.8.British colonial rule positively affected the structure, composition, and volume of India’s foreign trade.
Q.9.Before 1921, India was in the second stage of demographic transition.
Q.10.The aim of developing postal and telegraph was to enhance the efficiency of British administration
Long type question answer
Answer the following questions
Q.1 What was the basic objective of developing various infrastructure facilities by British government in India?
Under the colonial regime, basic infrastructure such as railways, ports, water transport, posts and telegraphs did develop. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests.

Q.2 Explain some of the infrastructural developments by British government in India and how did it affect Indian people and economy?
Following infrastructural development were done by British in India: –
(1) Roads constructed in India prior to the advent of the British rule were not fit for modern transport.
The roads that were built primarily served the purposes of mobilising the army within India and drawing
out raw materials from the countryside to the nearest railway station or the port.
(2) There always remained an acute shortage of all-weather roads to reach out to the rural areas during the rainy season. Naturally, therefore, people mostly living in these areas suffered grievously during natural calamities and famines.
(3) The British introduced the railways in India in 1850 and it is considered as one of their most important affected India in two ways: –
(a). On the one hand it enabled people to undertake long distance travel and thereby break geographical and cultural barriers
(b)On the other hand, it fostered commercialisation of Indian agriculture which adversely affected the self-sufficiency of the village economies in India.The volume of India’s exports undoubtedly expanded
but its benefits rarely accrued to the Indian people. The social benefits, which the Indian people gained
owing to the introduction of the railways, were thus outweighed by the country’s huge economic loss.
(3) The inland waterways, at times, also proved uneconomical as in the case of the Coast Canal on the
Orissa coast. Though the canal was built at a huge cost to the government exchequer, yet, it failed to compete with the railways, and had to be ultimately abandoned.
(4) The introduction of the expensive system of electric telegraph in India, similarly, served the purpose of maintaining law and order.
(5) The postal services, on the other hand, despite serving a useful public purpose, remained all through

Q.3 what was the state of Indian agriculture during the British period? How did various landbsettlement systems affect agriculture?

Despite being the occupation of a large population (about 85 per cent), the agricultural sector continued
to experience stagnation. This stagnation in the agricultural sector was caused mainly because of the
various systems of land settlement that were introduced by the colonial government. These land settlement systems affected Indian agriculture in following ways: –
(1) the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators.
However, the colonial government, did nothing to improve the condition of agriculture.
(2) The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators; this caused immense misery and social tension among the latter.
(3) the terms of the revenue settlement were also responsible for the zamindars adopting such an
attitude; dates for depositing specified sums of revenue were fixed, failing which the zamindars were to lose their rights.

Q.5 What do you mean by export surplus? how was it generated during British period? what was its effect on Indian economy?
Ans- When exports of a country are more than its imports it is known as Export Surplus. During thebBritish period this surplus came at a huge cost to the country’s economy. Several essential commodities—food grains, clothes, kerosene etc were scarcely available in the domestic market.
this export surplus did not result in any flow of gold or silver into India. it was used to make payments for: –
(a)the expenses incurred by an office set up by the colonial government in Britain.
(b)expenses on war fought by the British government.
(c) the import of invisible items, all of which led to the drain of Indian wealth.

Q.6 What do you mean by commercialisation of agriculture? did it really benefit Indian farmers
during the colonial rule?
Ans- growing of cash crops is known as instead of food crops is known as commercialisation of agriculture. But it didn’t really benefit Indian farmers because: –
(1) this could hardly help farmers in improving their economic condition as, instead of producing food
crops, they started producing cash crops which were ultimately used by British industries.
(2) Despite some progress made in irrigation, India’s agriculture was starved of investment in terracing,
flood-control, drainage and desalinisation of soil.
(3) though a small section of farmers changed their cropping pattern from food crops to commercial crops, a large section of tenants, small farmers and sharecroppers neither had resources and technology nor had incentive to invest in agriculture.

Q.6 Mention some of the regional variations on account of structural composition of Indian economy?
Ans- The largest share of workforce, which usually remained at a high of 70-75 per cent while the manufacturing and the services sectors accounted for only 10 and 15-20 per cent respectively.
(1) There was growing regional variation in some parts of India as there had been an increase in the
share of workforce in agriculture in states such as Orissa, Rajasthan and Punjab.

2) On the other hand, the then Madras Presidency, Bombay and Bengal witnessed a decline in the dependence of the workforce on the agricultural sector with a commensurate increase in the manufacturing and the services sectors.

Q.7 What was the impact of industrial revolution of Great Britain on Indian handicraft industry?
Prior to the industrial revolution, India had an internationally acclaimed cotton textile industry which was exported to different parts of the world including Europe, Middle East and the Americas among
others. After the Industrial Revolution, Britain started producing machine-made goods and textiles that
were much cheaper than the Indian goods. They were also often better in quality. Indian handicrafts
slowly died because they could not compete against the cheaper products from Britain that were flooding the Indian markets.

Q,8 What is capital goods industry? How was capital goods industry developed during the British period?
Ans-Capital goods industry means industries which can produce machine tools which are used for
producing articles for current consumption. There was hardly any capital goods industry in India during
colonial period to help promote further industrialisation in India.
The establishment of a few manufacturing units here and there was no substitute to the near wholesale displacement of the country’s traditional handicraft industries. the growth rate of the
new industrial sector and its contribution to the Gross Domestic Product (GDP) remained very small.
One of the significant drawbacks of the new industrial sector was the very limited area of operation of the public sector. This sector remained confined only to the railways, power generation,
communications, ports and some other departmental undertakings.

Q.9) Discuss three principal causes of backwardness of the Indian economy at the time of independence.
Ans) Principal causes of backwardness of the Indian economy at the time of independence are:
(1) India was treated as a colony which served as a source of raw material to British industry and their
finished goods. Apart from this the British had no interest in development of the country.
(2) Destruction of Indian handicrafts by the British proved detrimental to the Indian economy
(3) Land revenue policy followed by the British exploited the farmers which led to their object poverty
and backwardness.

Q.10 Explain the effects of decline of Indian handicraft industry on Indian economy.
(1) Massive unemployment- competition with machine made cheap, decreased supply of locally
made goods. the decline of the indigenous handicraft industries created massive unemployment among Indian handicraft workers.
(2) burden on agriculture-handicraft workers who lost their work due to decline in demand of their
product, were forced to become landless labours and this increased pressure on Indian agriculture.
(3) encouragement to import of cheap manufactured goods- presence of cheap machine-made goods created new demand in the Indian consumer market This demand of machine-made cheap goods was profitably met by the increasing imports of cheap manufactured goods from Britain.

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