Worksheet: Introduction - 2 | Economics Class 12 - Commerce PDF Download

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Q1: Macroeconomics studies economy-wide phenomena such as ____________, price levels, rate of economic growth, national income, GDP, and changes in unemployment.

Q2: Circular flow of income involves two types of flows: ________ flow and ________ flow.

Q3: Factor income includes income generated from __________, __________, and __________.

Q4: ________ are goods used for personal consumption or investment and require no further processing.

Q5: Transfer income in the form of benefits or subsidies is a ________ concept and is not included in National Income.

Q6: Economic territory includes areas where __________, __________, and __________ circulate freely.

Q7: Capital goods are defined as goods produced for use in __________ productive processes.

Q8: ________ phase of the circular flow involves the flow of factor income.

Q9: Real flow of income involves the flow of factor services from the ________ sector to the ________ sector.

Q10: Production boundary is the imaginary line around the ________ unit.

Assertion and Reason Based

Q1: Assertion: Macroeconomics studies individual economic units.
Reason: Macroeconomics focuses on overall economic behavior and large-scale market systems.
(a) Both Assertion and Reason are True, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are True, but Reason is not the correct explanation for Assertion.
(c) Assertion is True, but Reason is False.
(d) Both Assertion and Reason are False.

Q2: Assertion: Transfer income is included in National Income.
Reason: Transfer income contributes to the flow of goods and services.
(a) Both Assertion and Reason are True, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are True, but Reason is not the correct explanation for Assertion.
(c) Assertion is True, but Reason is False.
(d) Both Assertion and Reason are False.

Q3: Assertion: Final goods are used for further processing.
Reason: Intermediate goods require no further processing and give direct satisfaction to consumers.
(a) Both Assertion and Reason are True, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are True, but Reason is not the correct explanation for Assertion.
(c) Assertion is True, but Reason is False.
(d) Both Assertion and Reason are False.

Q4: Assertion: Economic territory includes foreign embassies.
Reason: Foreign embassies are not considered part of a country's economic territory.
(a) Both Assertion and Reason are True, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are True, but Reason is not the correct explanation for Assertion.
(c) Assertion is True, but Reason is False.
(d) Both Assertion and Reason are False.

Q5: Assertion: Capital goods have a short lifespan.
Reason: Capital goods need repair or replacement over time due to depreciation.
(a) Both Assertion and Reason are True, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are True, but Reason is not the correct explanation for Assertion.
(c) Assertion is True, but Reason is False.
(d) Both Assertion and Reason are False.

Very Short Answer Type Questions

Q1: Define Macroeconomics in one sentence.

Q2: Name two types of flows in circular flow of income.

Q3: Provide an example of a transfer income.

Q4: What is the production boundary?

Q5: Name one category under capital goods.

Q6: Define economic territory according to the United Nations.

Q7: Give an example of a non-durable good.

Q8: What are the two phases of circular flow related to money flow?

Q9: Explain the difference between final goods and intermediate goods.

Q10: What is the basis of classification between final goods and intermediate goods?

Short Answer Type Questions

Q1: Explain the three phases of circular flow with suitable examples.

Q2: Describe the concept of factor income and provide two examples.

Q3: Differentiate between current transfers and capital transfers with examples.

Q4: Discuss the categories of consumption goods with examples for each category.

Q5: Explain the concept of economic territory and provide examples of what is included and excluded.

Q6: Define normal resident and give examples of individuals or groups who are not considered normal residents.

Q7: Explain the difference between real flow and money flow in the context of circular flow of income.

Q8: Discuss the importance of the production boundary in differentiating between final goods and intermediate goods.

Long Answer Type Questions

Q1: Describe the structure of macroeconomics, focusing on its different sectors and their interdependence.

Q2: Discuss the circular flow of income in a two-sector model, explaining the production, distribution, and disposition phases in detail.

Q3: Explain the concept of economic territory according to the United Nations, providing examples and discussing its significance.

Q4: Analyze the importance of distinguishing between final goods and intermediate goods in the context of national income accounting and production processes. Provide examples and explain how this distinction impacts economic analysis.