Class 12 Economics – Ten Most Important Questions

Class 12 Important Economics Questions

In this article we will provide you ten important Economics questions, which will help you in your class 12 board exams and other entrance exams. Class 12 Important Economics Questions

Class 12 Important Economics Questions is very important resource for students preparing for Class XII board Examination. Question from very important topics are covered here for NCERT Class 12. You will also get idea about the type of questions, you can expect in your Class 12th examination.

Here you can get Class 12 Important Economics Questions based on NCERT Text book for Class XII. Here we have covered Important Questions on all topics for Class 12 Economics subject.

Class 12 Important Economics Questions


  1. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be: (Choose the correct alternative):

(a) Greater than Average Revenue (b) Less than Average Revenue (c) Equal to Average Revenue (d) Zero

2. What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is (a) Zero, (b) –1, (c) –2.

3. What is minimum price ceiling? Explain its implications.


If the prevailing market price is above the equilibrium price, explain its chain of effects.

4. Explain the ‘medium of exchange’ function of money. How has it solved the related problem created by barter?


Explain the ‘standard of deferred payment’ function of money. How has it solved the related problem created by barter?

5. Define fixed cost. Give an example. Explain with reason the behaviour of Average Fixed Cost as output is increased.


Define marginal product. State the behaviour of marginal product when only one input is increased and other inputs are hold constant

6. Why do central problems of an economy arise? Explain the central problem of “for whom to produce”?

7. Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.

8. Explain the implications of the following in a perfectly competitive market: (a) Large number of sellers (b) Homogeneous products.


Explain the implications of the following in an oligopoly market: (a) Barriers to entry of new firms (b) A few or a few big sellers

9. What is aggregate demand? State its components.


Explain how controlling money supply is helpful in reducing excess demand.

10. An economy is in equilibrium. Calculate Marginal Propensity to Consume: National income = 1000 Autonomous consumption expenditure = 200 Investment expenditure = 100


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    • Under perfect competition, a firm is a price taker. It can not influence/change the market price. It can sell any number of units of output at the prevailing price. If a firm tries to sell at a price higher than market price, it will lose all its customers. Firm’s price line or revenue curve is a straight horizontal line. AR and MR Curves coincide with each other