Top 20 'Distinguish Between' Questions for HSC Economics 2026 Exam

Mastering the "Distinguish Between" section in Economics is the secret to scoring a perfect 80/80 in your board exams. In the Maharashtra Board HSC curriculum, Question 2(B) specifically asks you to "Distinguish Between" any three out of five options, carrying a total of 6 marks (2 marks each). However, these concepts also form the backbone of long answers and objective questions.

Our latest analysis of the 2026 syllabus and previous year trends shows that certain differences are repeated with almost 99% certainty. To secure your 12 marks (including the 6 in Q2B and related concepts in other sections) easily, we have compiled the top 20 Economics Distinguish Between HSC questions.

Top 20 'Distinguish Between' Questions for HSC Economics 2026

1. Microeconomics vs. Macroeconomics

This is the most fundamental distinction in the Economics Distinguish Between Class 12 list.

• Microeconomics: Studies the behavior of individual units like a consumer, a firm, or a specific industry. It uses the "Slicing Method."

• Macroeconomics: Studies the economy as a whole, focusing on aggregates like national income, total employment, and general price levels. It uses the "Lumping Method."

2. Slicing Method vs. Lumping Method

• Slicing Method: Dividing the economy into small individual units for intensive study (Micro).

• Lumping Method: Studying the entire economy in big aggregates rather than small units (Macro).

3. Total Utility (TU) vs. Marginal Utility (MU)

• Total Utility: The sum total of satisfaction derived by a consumer from consuming all units of a commodity.

• Marginal Utility: The addition made to total utility by consuming one additional unit of a commodity.

4. Expansion of Demand vs. Increase in Demand

• Expansion of Demand: Rise in quantity demanded due to a fall in price alone, while other factors remain constant. It results in a downward movement on the same demand curve.

• Increase in Demand: Rise in demand due to favorable changes in other factors (like income or fashion) while the price remains constant. It results in a rightward shift of the demand curve.

5. Contraction of Demand vs. Decrease in Demand

• Contraction of Demand: Fall in quantity demanded due to a rise in price alone.

• Decrease in Demand: Fall in demand due to unfavorable changes in other factors while the price remains constant.

6. Individual Demand vs. Market Demand

• Individual Demand: The quantity of a commodity that a single consumer is willing to buy at various prices.

• Market Demand: The total quantity of a commodity that all consumers in the market are willing to buy at various prices.

7. Extension of Supply vs. Increase in Supply

• Extension of Supply: A rise in quantity supplied due to a rise in price alone.

• Increase in Supply: A rise in supply due to favorable changes in other factors (like technology) while price remains constant.

8. Stock vs. Supply

• Stock: The total quantity of a commodity available with the seller for sale at a particular point in time. It is a potential supply.

• Supply: That part of the stock which a seller is willing and able to offer for sale at a particular price during a given period.

Pro-Tip: Remember that Stock can exceed Supply, but Supply can never exceed Stock!

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9. Partial Equilibrium vs. General Equilibrium

• Partial Equilibrium: Analyzes the equilibrium of an individual unit (consumer/firm) by keeping other variables constant (Ceteris Paribus).

• General Equilibrium: Analyzes the equilibrium of the entire economy where all variables are functionally interdependent.

10. Direct Demand vs. Indirect Demand

• Direct Demand: Demand for goods that satisfy human wants directly (e.g., clothes, food).

• Indirect Demand: Also known as derived demand; demand for goods needed for the production of consumer goods (e.g., labor, machinery).

11. Gross Domestic Product (GDP) vs. Net Domestic Product (NDP)

• GDP: The market value of all final goods and services produced within the domestic territory of a country in a year.

• NDP: The value of GDP after deducting depreciation. Formula:

  $$NDP = GDP - Depreciation$$

12. Personal Income vs. Personal Disposable Income

• Personal Income: Total income received by individuals from all sources.

• Personal Disposable Income: The part of personal income left after paying direct taxes (like income tax). This is the actual amount available for spending.

13. Product Method vs. Income Method of Measuring National Income

• Product Method: Measures national income by adding the value of all final goods and services produced (Output approach).

• Income Method: Measures national income by adding all factor incomes (Rent + Wages + Interest + Profit).

14. Internal Debt vs. External Debt

• Internal Debt: Loans raised by the government from within the country (citizens, banks).

• External Debt: Loans raised by the government from foreign countries or international institutions (World Bank, IMF).

15. Revenue Receipts vs. Capital Receipts

• Revenue Receipts: Government income that does not create a liability or reduce assets (e.g., Taxes, Fines).

• Capital Receipts: Government income that either creates a liability or reduces assets (e.g., Borrowings, Disinvestment).

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16. Simple Index Number vs. Weighted Index Number

• Simple Index: Every commodity in the basket is given equal importance.

• Weighted Index: Commodities are assigned weights based on their relative importance (e.g., Laspeyre’s or Paasche’s Index).

17. Price Index vs. Quantity Index

• Price Index: Measures the general changes in the prices of goods over time.

• Quantity Index: Measures changes in the level of physical volume of production.

18. Money Market vs. Capital Market

• Money Market: A market for short-term funds (less than one year). Controlled by the RBI in India.

• Capital Market: A market for long-term funds (more than one year). Controlled by SEBI.

19. Demand Deposits vs. Time Deposits

• Demand Deposits: Can be withdrawn by the customer at any time (e.g., Current and Savings accounts).

• Time Deposits: Can be withdrawn only after a specific period (e.g., Fixed Deposits).

20. Balance of Trade vs. Balance of Payments

• Balance of Trade (BOT): The difference between the value of visible exports and visible imports.

• Balance of Payments (BOP): A systematic record of all economic transactions (visible and invisible) between residents of a country and the rest of the world.

FAQs: Economics Distinguish Between Class 12

Q1: How should I write the Economics Distinguish Between Class 12 answers to get full marks?

Always write in a T-table format. Start with a "Meaning" or "Definition" point. Include a formula or diagram where applicable (like in TU/MU or Demand curves). Use at least 2-3 points for a 2-mark question.

Q2: Are these 20 questions enough for the 2026 Board Exam?

These 20 Economics Distinguish Between Class 12 questions cover over 90% of the recurring topics. Studying these ensures you are prepared for the most high-weightage areas of the syllabus.

Q3: Does the Maharashtra Board ask for diagrams in the Distinguish Between section?

While not mandatory for all, adding a small, neat diagram for "Expansion vs. Increase in Demand" or "TU vs. MU" significantly increases your chances of getting full marks.

Conclusion

Preparation for the HSC 2026 exam requires a blend of smart work and consistency. By focusing on these 20 differences, you are not just preparing for Q2(B), but you are also clarifying concepts that appear in MCQs and Answer in Detail sections.