Maharashtra 12th Economics Exam 2025 : Important Question with Answers for Last-Minute Revision - Download PDF

Maharashtra Class 12 Economics exam is approaching, and last-minute revision is crucial for scoring high. To help you prepare effectively, we have compiled the Most Important Multiple-Choice Questions (MCQs), Short Answer Questions, and Long Answer Questions from the syllabus.

MCQs play a vital role in your Economics exam. Apart from MCQs, the exam also includes short and long answer questions that require conceptual clarity and proper explanations. Practicing these questions will help you write precise and well-structured answers.

Prepare well with these essential questions and boost your confidence for the Maharashtra HSC Economics exam 2025.

Maharashtra Board Economics Most Important Question Answers

Multiple-choice questions (MCQs)

Question 1. The term ‘Micro’ is derived from the Greek word.
(a) Makros
(b) Maikros
(c) Mikros
(d) Mikrosoft

Options:
(1) a
(2) b
(3) c
(4) d

Answer: (3) c

Question 2. Form Utility increases when –

(a) dress stitched from cloth.
(b) change in the format of given material.
(c) river water diverted towards farm.
(d) pot made from clay.
Options :
(1) a, b, c
(2) b, c, d
(3) a, b, d
(4) a, b, c, d

Answer: (3) a, b, d

Question 3. Demand for a commodity from different consumer at different prices.

(a) Decrease in demand
(b) Contraction in demand
(c) Individual demand
(d) Market demand

Options:
(1) c
(2) b
(3) a
(4) d

Answer: (4) d

Question 4. Demand for salt is …………….

(a) elastic
(b) inelastic
(c) perfectly elastic
(d) perfectly inelastic

Answer: (d) perfectly inelastic

Question 6. Increase in supply is shown by

(a) price change only
(b) movement on the same supply curve
(c) shift of supply curve to the left
(d) shift of supply curve to the right

Answer: (d) shift of supply curve to the right

Question 7. Types of imperfect market are –

(a) Monopoly
(b) Oligopoly
(c) Monopolistic Competition
(d) Perfect Competition

Options :

(1) b and c
(2) a, b and c
(3) only d
(4) all of these

Answer: (2) a, b and c

8. Base year quantity : …………….. :: Current year quantity : 125

9. Present period : Current period :: Past period : ……………..

10. All commodities with equal importance : …………….. :: All commodities with different importance :: Weighted Index

Answers: 100, Base period, Simple Index

👉 Maharashtra Board Class 12 Study Material

Subjective Type Questions

1. Clearing house system economises the use of cash.

Ans. True. The clearing house function implies that the Central Bank settles inter-bank claims of the commercial bank. In this way it reduces the need for cash reserves by the commercial bank, thereby economising the use of cash

2. State whether the following statement is True or False with reason: Central Bank works for profit.

Ans. False, the central bank does not work for earning profits.
Explanation:
Central bank is the apex financial institution of a country. It performs various functions such as being a banker to the government, controller of the credit, issuer of the currency notes and others. The main objective of a central bank is to work for the benefit and development of the society as a whole and not to earn profits.​

3. Define or explain the following concept: National income Define National Income.

Ans. National income is the total market value (in monetary terms) of all final goods and services produced by the firms during an accounting year. In other words, it can be defined as the aggregate of all factor incomes flowing from the firms to the households (i.e. by aggregating the rent, wages, interest and profit earned in the economy). There are three methods of measuring national income, namely: value-added/ product method, income method and expenditure method.

4. General equilibrium

Ans. In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.

5. Distinguish between microeconomics and macroeconomics.

Ans. Microeconomics studies economic problems at an individual level. It determines the output and price for an individual firm. While macroeconomics studies the economic problems at the level of an economy as a whole. It determines an aggregate output and general price level in the economy as a whole.

6. Define or Explain the following  concepts Macroeconomic variables

Ans. Macroeconomic variables are the ones that are used in the study of macroeconomics. Major macroeconomic variables are aggregate price, aggregate demand, aggregate supply, inflation, unemployment, etc.

7. State and explain the law of demand.

Ans. According to the law of demand, a consumer’s demand shares an inverse relationship with the price of a good and vice-versa, ceteris paribus (other things being constant). In other words, if the income, price of related goods and a consumer’s tastes and preferences remain unchanged, then the demand of a good move opposite to the movement in the price of those goods.

8. Meaning and Definition of Macroeconomics

Ans. 

Meaning:- The term Macro is derived from Greek word “Makros” which means large. It is the branch of economics, which studies the behaviour of all economics units combined together. Macroeconomics is a study of aggregates. It is the study of the economic system as a whole. Therefore, it is also called as Aggregate Economics.

Definition:- “Macroeconomics deals not with individual quantities as such, but with aggregates of these quantities; not with individual incomes but with the national incomes; not with individual prices but with the price level; not with individual outputs but with the national output’.

9. Define or explain the following concept: National income

Ans. National income is the total market value (in monetary terms) of all final goods and services produced by the firms during an accounting year. In other words, it can be defined as the aggregate of all factor incomes flowing from the firms to the households (i.e. by aggregating the rent, wages, interest and profit earned in the economy). There are three methods of measuring national income, namely: value-added/ product method, income method and expenditure method.

10. Define or Explain the following concept. Partial equilibrium

Ans. Partial equilibrium is an equilibrium situation achieved taking into consideration only a part of the market condition. That is, it is the equilibrium with regard to an individual unit assuming the effect of other units and variables constant. In other words, it is based on the assumption of “other things remaining constant”. It neglects the interdependence among variables. Thus, microeconomic analysis is regarded as partial equilibrium.

11. Explain the types of utility.

Ans. 

The following are the different types of utility:

1. Form utility- Increase in utility due to change in shape of good is termed as form utility.
2. Place utility- Increase in utility due to change in the place where it is consumed is called place utility.
3. Time utility- Increase in utility due to change in the time of usage is called time utility.
4. Service utility- When services are rendered to the consumers by service providers or professionals, it is called service utility.
5. Knowledge utility- Increase in utility due to an increased knowledge about a good is known as knowledge utility.

12. Define or explain the following concept. Service utility.

Ans. It arises when personal services are rendered by various professional in the society to others. Services provided by doctors to patients, knowledge given by teachers to students, suggestions by lawyers to his clients, etc., are examples of service utility. In this case, production and consumption both take place at the same time. 

13. Define or explain the following concept. Unitary elastic demand.

Ans. Unitary elastic demand implies that a change in the price of a commodity leads to a proportionate change in the quantity demanded of that commodity. For instance, if the demand for Good X is unitary elastic, a 50% increase in the price of Good X will lead to a 50% decline in the quantity demanded of Good X. In this case, E_d = 1.

14. Define or Explain the following concept.Partial equilibrium

Ans. Partial equilibrium is an equilibrium situation achieved taking into consideration only a part of the market condition. That is, it is the equilibrium with regard to an individual unit assuming the effect of other units and variables constant. In other words, it is based on the assumption of “other things remaining constant”. It neglects the interdependence among variables. Thus, microeconomic analysis is regarded as partial equilibrium.

15. With the increase in income, both consumption and savings increase.

Ans. Lord J.M: Keynes explains the relationship between consumption (C) and income (Y), in terms of his psychological law of consumption. According to this law, as aggregate income increases, the total consumption expenditure in the economy also increases, but in a lesser proportion than the increase in income. In other words the proportion of income spent on consumption goes on falling as income increases. This is because as income increases, the individual wants are satisfied to a larger and larger extent. So when income increases further, people do not consume the entire income. They save a part of it. Hence, there is bound to be a gap between income and consumption. According to Keynes, with the increase in income, both consumption and savings increase.

16. Output method of measurement of national income. 

Ans. 

The output method measures the national income either, by taking the market value of final goods and services produced in an economy during an accounting year, or by estimating the contribution made by each of the producing units in the economy to the total production within the domestic territory during an accounting year. There are two methods of measuring national income by the output method.
i. The final goods method:  This method measures the national income by taking the market value of final goods and services produced in an economy during an accounting year.
ii. The value added method: The value added method measures the national income by estimating the contribution made by each of the producing units in the economy to the total production within the domestic territory during an accounting year.

17. Give reasons or explain the following statement:  Income which is not saved is consumption.  

Ans.  Income has two major components i.e., consumption and savings. This means an individual can utilise his/her income in two ways, either by consuming it (by purchasing goods and services or for investment purposes) or by saving it (by depositting it in banks). Thus, it can be said that income which is not saved is consumption.

18. Write short notes Significance of price elasticity of demand.

Ans. 

The following points highlight the importance of elasticity of demand:

• Useful for trade unions- The concept of elasticity of demand is used by trade union leaders in collective bargaining. For instance, the trade union leaders can bargain for higher wages if they know that the demand for their labour is inelastic.
• Useful in international trade- This concept proves helpful in determining the norms that would prove beneficial for international trade. For instance, based on the elasticity of the commodities that are exported, the country can decide on the price that is to be charged.
• Useful to finance minister- Elasticity of demand helps finance minister in selecting goods and services that can be taxed and on which subsidy should be provided. 

19. State with reason. Whether you ‘agree’ or ‘disagree’ with the following statement: There are no exceptions to the law of Demand

Ans. 

No. The statement is false. The exceptions to the law of demand are :

1. Changes in the prices of related goods
2. Tastes and Preferences of the consumers
3. Income of the consumer
4. Changes in technology
5. Changes in taxation policy
6. Changes in price expectations of consumers.

The law of demand may not work in case of the above cases.