Smit Sir Commerce← GSEB Notes
GSEB • Class 12 • Economics

Practice after every chapter.

Short self-check questions tied to the concepts covered in the uploaded GSEB Economics notes. Read the chapter first, answer without looking, then compare with the key idea.

Important: these are original revision questions for practice. They are not labelled as official GSEB questions, board-paper questions or PYQs.
Chapter 2

Indicators of Growth and Development

1. Distinguish economic growth from economic development.
Key idea: growth focuses on an increase in economic output/income, while development is broader and includes qualitative improvement in living conditions.
2. Why is per-capita income used with national income?
Key idea: it relates total income to population and gives a better basis for comparing average income levels.
3. Name two broader development indicators.
Key idea: PQLI and Human Development Index (HDI).
Read Chapter 2
Chapter 3

Money and Inflation

1. State one major limitation of barter.
Key idea: barter depends on a double coincidence of wants and creates exchange difficulties.
2. What happens to purchasing power during inflation?
Key idea: when the general price level rises, the purchasing power of money falls.
3. Distinguish demand-pull and cost-push inflation.
Key idea: one is driven by excess demand; the other by rising production costs.
Read Chapter 3
Chapter 4

Banking and Monetary Policy

1. What is the role of a commercial bank?
Key idea: accepting deposits and providing credit are core banking functions.
2. Why does RBI use monetary-policy instruments?
Key idea: to influence money, credit and monetary conditions in the economy.
3. Name four quantitative instruments covered in the notes.
Key idea: Bank Rate, Repo Rate, CRR, SLR and Open Market Operations are among the listed tools.
Read Chapter 4
Chapter 5

Poverty

1. Distinguish absolute and relative poverty.
Key idea: absolute poverty is judged against a minimum standard; relative poverty compares people or groups with others.
2. What is a poverty line used for?
Key idea: to identify or estimate the population below a specified minimum standard.
3. Why is poverty not only an income issue?
Key idea: the notes also consider non-income dimensions of poverty.
Read Chapter 5
Chapter 6

Unemployment

1. What two conditions are important when identifying an unemployed person?
Key idea: ability/willingness to work and lack of suitable employment are central to the concept.
2. What is meant by active workforce?
Key idea: people participating in or seeking participation in economic work.
3. Why do economists classify unemployment into different types?
Key idea: different forms have different causes and may require different remedies.
Read Chapter 6
Chapter 7

Population

1. What is population explosion?
Key idea: a very rapid rise in population that creates pressure on resources and development.
2. Which two basic demographic rates are discussed?
Key idea: birth rate and death rate.
3. Why are population trends important for economic planning?
Key idea: population size and growth affect resource needs, employment and development planning.
Read Chapter 7
Chapter 8

Agriculture Sector

1. Why is agriculture called a backbone of the economy?
Key idea: it supports income, employment, production and linkages with other sectors.
2. State two economic contributions of agriculture.
Key idea: contribution to national income and employment are major examples.
3. How is agriculture linked with industry?
Key idea: sectors are connected through inputs, raw materials, demand and production linkages.
Read Chapter 8
Chapter 9

Foreign Trade

1. Distinguish domestic and international trade.
Key idea: domestic trade occurs within a country; international trade crosses national boundaries.
2. Give one reason countries engage in foreign trade.
Key idea: differences in resources, costs, technology and specialisation create gains from exchange.
3. How can specialisation support trade?
Key idea: countries can focus more on goods/services where they have favourable conditions and exchange with others.
Read Chapter 9
Chapter 10

Industrial Sector

1. State two ways industry contributes to development.
Key idea: industrialisation can raise production/national income and generate employment.
2. How can industry contribute to foreign-exchange earnings?
Key idea: industrial exports can earn foreign exchange.
3. Why is balanced development linked with industrialisation?
Key idea: expansion of industry can diversify economic activity and support other sectors.
Read Chapter 10
Chapter 11

Emerging Issues in Indian Economy

1. Which major reform period provides context for this chapter?
Key idea: the post-1991 economic-reform period.
2. What two population-movement issues are highlighted?
Key idea: migration and urbanisation.
3. Why is infrastructure important for development?
Key idea: infrastructure provides supporting services required for economic and social activity.
Read Chapter 11