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Class 12 Economics Term 2 Answer Key 2022 Question Paper Solution

Class 12 Economics Answer Key

Class 12 Economics Term 2 Answer Key 2021-22: The Central Board of Secondary Education has scheduled the Class 12 Term 2 Economics exam today on 28th May 2022, Thursday. The Class 12 Term 2 Economics exam will be held between 10:30 am to 12:30 pm and students can get Class 12 Economics Term 2 Answer Key 2021-22 from this page after completion of the examination. In Class 12 Economics Answer Key 2021-22, we have given question and their answers so it will be easy for students to match their responses with the answers given in Class 12 Economics Answer Key 2021-22. Go through the whole Class 12 Economics Term 2 Answer Key 2021-22 and bookmark this page to get Class 12 Term 2 Answer Key 2021-22 for the upcoming examination.

Economics Term 2 Answer Key

The CBSE Class 12th Term 2 Economics Answer Key is error-free and designed by experienced faculties in economics subject. Here we have given the miscellaneous information of CBSE Class 12th Term 2 Economics Answer Key. Have a look at the table below to access a brief detail about CBSE Class 12th Term 2 Economics Answer Key:

CBSE Class 12th Term 2 Economics Answer Key
Exam Conducting Body Central Board of Secondary Education
Exam & Subject Name CBSE Class 12 Economics
Category Answer Key & Paper Solutions
Exam Date 26th May 2022, Thursday
Unofficial Answer Key 26th May 2022, Thursday
Official Answer Key To be notified
Official Website https://www.cbse.nic.in/

Economics Class 12 Term 2 Answer Key and Exam Pattern

The Central Board of Secondary Education has released a sample paper of Economics for the reference of students. Here we have given the exam pattern on the same lines as given in the sample paper of Economics. The Class 12 Term 2 Economics question paper will be divided into three parts. In these parts very short answer type questions, short answer type questions, and long answer type questions will be asked check other details listed below:

Part 1: In this part, very short type questions of 2 marks each will be asked.

Part 2: In this part, short type questions of 3 marks each will be asked.

Part 3: In this part, long type questions of 5 marks each will be asked.

Class 12 Economics Term 2 Answer Key & Question Paper Solution

Class 12 Economics Term 2 Question Papers for Answer Key

Class 12 Economics Term 2 Question Paper Solution

Q.1(a) Distinguish between Consumption goods and Capital goods. 

Consumption Goods Capital Goods
Definition
Consumption goods are those goods that are used by the consumers and have no use in future. Capital goods are those goods that have a future use and are used for production of consumption goods
Purpose
Consumer goods are purchased in order to fulfill personal consumption needs Capital goods are purchased for manufacturing of consumption goods
Target Market
Consumer Manufacturers
Demand
Consumption goods have high demand Demand for capital goods is comparatively less
Pricing
Comparatively cheap Costlier in comparison to consumption goods

OR

(b) Giving valid reasons, classify the following into stock and flow variables:

i) Population of India as on 31st March 2021

ii) Domestic Income of Indian Economy during the fiscal year 2020-21

Q.3(a) If planned savings exceed planned investments in an economy, state its likely impact on output and employment.

When planned savings is more than planned investment, then the planned inventory would fall below the desired level. To bring back the Inventory at the desired level, the producers expand the output. More output means more income. Rise in output means rise in planned investment and rise in income means rise in planned savings.

OR

(b) If planned savings fall short of planned investments in an economy, state its likely impact on output and employment. 

When planned savings is less than planned investment, then the planned inventory rises above the desired level. To clear the unwanted increase in inventory, firms plan to reduce the output till S becomes equal to I.

Q. 4 “Workers working in the formal sector earn more than those in the informal sector.” Defend or refute the given statement with valid arguments. 

Some people are self-employed in the informal sector because they want to avoid registration and taxation. But many people work in the informal sector through necessity, not choice. Today, there are two features of the informal sector that are well-recognized. Firstly, much of the informal economy contributes greatly to the formal economy. Secondly, women constitute the majority of precarious, under-paid, informal workers.

What would a policy framework look like for an inclusive job market with broad objectives to move workers from informal to formal status? Here are two suggestions:

  1. Robust legal protection: The United Nations Commission on Legal Empowerment of the Poor outlines three areas of legal rights for the working poor – property rights, business rights, and labor rights. Enforcing these rights allows informal workers to realize the economic value of their assets. They also allow for better working conditions and worker benefits, as well as allow access to the financial market. They imply a heightened need for the poor to have access to justice and the judiciary system.
  2. Inclusive hiring targets and on-the-job training: Informal work is often undertaken because of barriers to entry to formal work. These barriers include the absence of requisite educational qualifications and the lack of corporate networks. The formal sector can bridge this gap by employing people from low-income households, investing in them through on-the-job training along with on-field exposure to working systems. A few firms engage in such processes through corporate social responsibility (CSR) objectives. However, mainstreaming this process by setting targets for hiring people who are found to be worthy of training would make the formal sector more inclusive.

Q.5 ” Economic development in India has been accompanied by environmental concerns.” Do you agree with the given statement? Give valid reasons in support of your answer.

Achieving economic development is vital to a country. But what if it comes at the cost of environmental degradation? With globalization opening the doors of economic development for so many countries, there is a serious concern regarding how far we are being able to save the environment and not hamper its constituents.

To understand the impact of economic growth and development on the environment, we need to be aware of the concept of sustainable development as an alternative solution.

The environment performs four crucial functions:

  1. Supplying Resources: The environment contains both renewable (air, water, land) and non-renewable (fossil fuels) resources. While the former are re-usable and do not get depleted soon, non-renewable resources come with the fear of depletion.
  2. Assimilating Waste: Economic activities generate waste which the environment absorbs through natural processes.
  3. Sustenance of Life: The environment comprises abiotic components that aid the living of biotic components. In the absence of elements such as air, water, land, etc. there would be no life on the planet.
  4. Aesthetic Value: The environment adds aesthetic value to life. The mountains, oceans, seas, landmasses and other scenery of the environment enhance the quality of life.

Q.6 “In the late 1970s, China’s population growth rate had sharply declined as compared to India.” Elucidate the reason and impact of this situation. 

Since the 1970s, China’s total fertility rate has decreased dramatically. After a period of fluctuation around replacement level in the 1980s, it dropped below replacement level in the 1990s. The transition of fertility in China since the 1970s has been a demographic revolution. Analysis of the 2000 census reveals that by 2000 the total fertility rate of China had dropped to 1.4-1.6 (Morgan et al., 2009). Preliminary results of the 2010 census reveal that the total fertility rate is 1.18, well below the replacement level (PCO, 2012). The dramatic decline in fertility rate is at least to a certain extent attributable to China’s population policy, which is known as the one child policy. From the original strict control of population growth, to stabilization of a low fertility level in the 2010s, and to “upholding and improving” the current population policy, China’s population policy has undergone a series of changes, which have also affected the nation’s economy and social development.

SOCIAL IMPACTS

China’s population policy has clearly played a major role in decreasing the fertility level; however, it has also had many side effects (Wu et al., 2008). Already in the middle 1980s, far-sighted demographers predicted that if the one-child policy were to achieve complete success, these side effects would become much more serious (Bongaarts and Greenhalgh, 1985; Greenhalgh and Bongaarts, 1987). The 1980 Open Letter refuted concerns about some side effects, such as possible shortfalls in manpower, rapid population aging, and distortions in sex ratios (Greenhalgh and Winkler, 2005). However, after 30 years of implementation, with elimination of 100 million to 400 million births according to different estimates (Cai, 2010), the one-child policy, initiated during Deng’s administration, has created vast social difficulties and human suffering (Greenhalgh and Winkler, 2005).

Q.8 Discuss briefly any two similar development strategies followed by India and Pakistan. 

India and Pakistan have followed many similar strategies in their respective development plans
(i) India and Pakistan both started their development process on economic planning after getting independence in 1947.
(ii) Both of them have adopted the mixed economic system involving the co-existence of both the public and the private sector.

Q.9(a) Briefly explain the different phases of circular flow of income.

Circular flow of income refers to unbroken circularity of real flows and money flows across the different sectors of the economy. Different phases of circular flow of income:
a) General phase
b) Distribution phase
c) Disposition phase.

Q.11 Explain the concept of deficient demand. How can government spending policy be helpful in correcting the situation of deficient demand?

Increase in the government spending during deficient demand or deflation causes injection of expenditure in the economy. As a result, aggregate demand, purchasing power and money supply get increased. Thus, the problem of deficient demand or deflationary gap in the economy gets combated.

Q.13 (a) Outline any two steps involved by the NITI Aayog index in attaining sustainable development.

  • NITI Aayog has the twin mandate to oversee the adoption and monitoring of the SDGs in the country, and also promote competitive and cooperative federalism among States and UTs.
    • The index represents the articulation of the comprehensive nature of the Global Goals under the 2030 Agenda while being attuned to the national priorities.
    • In 2015, the UNs General Assembly adopted the 2030 Agenda for Sustainable Development.
    • The 17 SDGs are a bold commitment to finish what the Millennium Development Goals (MDGs) started, and tackle some of the more pressing challenges.
  • The SDG India Index 2020–21 is also live on an online dashboard, which has cross-sectoral relevance across policy, civil society, business, and academia.

Check Other Subjects Term 2 Answer key

 

CBSE Class 12 Economics Term 2 Answer Key 2022: FAQs

Q. Where can I get the Class 12 Term 2 Economics Answer Key 2022?

On this page, you will get the Class 12 Term 2 Economics Answer Key 2022. The Class 12 Term 2 Economics Answer Key 2022 is error-free and students can calculate their marks using  Class 12 Term 2 Economics Answer Key 2022.

Q. What is the subject code of Class 12 Economics?

The subject code of Class 12 Economics is 030.

Q. What is the exam pattern of Class 12 Term 2 Economics?

The Class 12 Term 2 Economics question paper consists of three parts. Part 1 carries 2 marks questions, Part 2 carries 3 marks questions, and Part 3 carries 5 marks questions.

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