The CBSE Class 12th Economics Practical Exam is a crucial component of the overall assessment. To help students prepare effectively, we have compiled a list of 50 important viva questions along with their answers. These questions cover key areas of the syllabus and ensure that you are well-prepared to tackle the viva confidently.
Part A: Microeconomics
- What is Microeconomics?
Microeconomics is the study of individual economic units such as households, firms, and markets. - What are the central problems of an economy?
The central problems are what to produce, how to produce, and for whom to produce. - Define demand.
Demand refers to the quantity of a good or service that consumers are willing and able to buy at different prices in a given period. - State the law of demand.
The law of demand states that other things being equal, as the price of a good falls, its quantity demanded rises, and vice versa. - What is elasticity of demand?
Elasticity of demand measures the responsiveness of quantity demanded to a change in price. - What is meant by marginal utility?
Marginal utility is the additional satisfaction gained by consuming one more unit of a good. - Explain the concept of indifference curve.
An indifference curve represents a combination of two goods that provide the consumer with equal satisfaction. - What is perfect competition?
Perfect competition is a market structure with many buyers and sellers, homogeneous products, and free entry and exit. - What are fixed costs?
Fixed costs are costs that remain constant regardless of the level of production. - Define producer equilibrium.
Producer equilibrium occurs when a producer maximizes profit by producing a quantity where marginal cost equals marginal revenue.
Part B: Macroeconomics
- What is Macroeconomics?
Macroeconomics studies the economy as a whole, focusing on aggregate variables like GDP, inflation, and unemployment. - What is GDP?
GDP (Gross Domestic Product) is the total value of all final goods and services produced within a country in a given period. - What is national income?
National income is the total income earned by a country’s residents and businesses, including wages, rents, interests, and profits. - What is fiscal policy?
Fiscal policy refers to government policies regarding taxation and public expenditure. - Explain monetary policy.
Monetary policy involves managing the money supply and interest rates to control inflation and stabilize the economy. - What is inflation?
Inflation is the sustained rise in the general price level of goods and services over time. - Define unemployment.
Unemployment refers to the situation where people who are willing and able to work cannot find jobs. - What is balance of payments?
Balance of payments is a record of all economic transactions between a country and the rest of the world in a specific period. - What is foreign exchange?
Foreign exchange refers to the currencies of other countries and the exchange system that facilitates international trade. - What is the difference between direct tax and indirect tax?
Direct tax is paid directly to the government by the individual (e.g., income tax), while indirect tax is levied on goods and services (e.g., GST).
Part C: Project Work
- What is the objective of your project?
(Answer depends on your project’s topic; e.g., analyzing the impact of GST on small businesses.) - What methodology did you use for your project?
(Provide details like surveys, interviews, secondary data analysis, etc.) - What are your key findings?
(Summarize the main results of your project.) - How did you collect your data?
Data was collected through primary sources such as surveys and secondary sources like reports. - What challenges did you face during the project?
(Explain challenges like data collection difficulties or time constraints.) - What is the significance of your project?
(Highlight the importance of your project’s findings.) - What are the limitations of your study?
(Discuss any constraints such as sample size or data availability.) - How is your project relevant to the economy?
(Explain how your project addresses real-world economic issues.) - What suggestions do you have based on your project?
(Provide practical recommendations derived from your findings.) - Can you explain any one concept used in your project?
(Choose a key concept, e.g., elasticity, to explain.)
General Questions
- What is the role of the Reserve Bank of India?
The RBI regulates the country’s monetary policy, issues currency, and maintains financial stability. - What is the difference between microeconomics and macroeconomics?
Microeconomics focuses on individual units, while macroeconomics examines the economy as a whole. - What are the different types of market structures?
Perfect competition, monopoly, monopolistic competition, and oligopoly. - What is opportunity cost?
Opportunity cost is the value of the next best alternative forgone. - What are public goods?
Public goods are non-excludable and non-rivalrous, such as street lighting. - Explain the concept of supply.
Supply refers to the quantity of a good that producers are willing to sell at different prices in a given period. - What is the Phillips Curve?
The Phillips Curve shows the inverse relationship between inflation and unemployment. - What is deficit financing?
Deficit financing occurs when a government spends more than its revenue and covers the gap by borrowing. - What is the law of diminishing marginal utility?
As more units of a good are consumed, the additional satisfaction from consuming each additional unit decreases. - What is the multiplier effect?
The multiplier effect refers to the increase in final income arising from an initial injection of spending.
Practical and Case-Based Questions
- Can you interpret this demand schedule?
(Be prepared to analyze a given schedule.) - What are the factors affecting demand?
Income, tastes, prices of related goods, expectations, etc. - Explain the law of supply with an example.
As the price of a good rises, its supply increases, e.g., agricultural products. - What is the relationship between cost and revenue?
Costs are expenses incurred, while revenue is income earned from sales. - Can you analyze this economic graph?
(Practice interpreting graphs like demand curves or GDP trends.) - What is the importance of data in economics?
Data helps in making informed decisions and analyzing trends. - What is sustainable development?
Development that meets current needs without compromising future generations. - What is the role of government in a mixed economy?
The government regulates and intervenes while allowing private enterprises to operate. - What is the significance of the circular flow of income?
It illustrates the movement of income between households and firms in an economy. - What are the basic assumptions in economics?
Rational behavior, scarcity of resources, and optimization.
Preparing these questions will ensure you are confident and well-prepared for your Economics viva. Remember to revise your project thoroughly and stay calm during the exam. Good luck!
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