" /> -->

#### Important Questions Part-IX

12th Standard EM

Reg.No. :
•
•
•
•
•
•

Economics

Time : 01:00:00 Hrs
Total Marks : 60

Part - A

60 x 1 = 60
1. Macro economics is a study of_________

(a)

individuals

(b)

firms

(c)

a nation

(d)

aggregates

2. Quantity of a commodity accumulated at a point of time is termed as ____________..

(a)

production

(b)

stock

(c)

variable

(d)

flow

3. Pick basic composition of three sector of model of economy

(a)

Y = C + I + G + (X – M)

(b)

Y = C + I + G

(c)

Y = C + S

(d)

Y = C + I

4. In the circular-flow diagram

(a)

Firms are sellers in the resource market and the product market

(b)

Households are sellers in the resource market

(c)

Firms are buyers in the product market

(d)

Spending on goods and services flow from firms to households

5. Match the correct codes

 1 Y = C + I i Don’t exist 2 Y = C + I + G ii Two Sector 3 Y = C + I + G + (X – M) iii Three Sector 4 Y = C iv Four Sector
(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

6. National income is a measure of the__________ performance of an economy

(a)

Industrial

(b)

Agricultural

(c)

Economic

(d)

Consumption

7. When net factor income from abroad is deducted from NNP, the net value is__________

(a)

Gross National Product

(b)

Disposable Income

(c)

Net Domestic Product

(d)

Personal Income

8. In the context of Labour income, which of the following is wrong?

(a)

Wages and salaries

(b)

fringe benefits

(c)

employer’s contribution to social security

(d)

state insurance

9. Windfall gains such as lotteries are also not to be included as they do not represent receipts from any ……………….. productive activity

(a)

current

(b)

previous

(c)

future

(d)

none of the above

10. GDP Deflator is equal to________

(a)

$\cfrac { (NominalGDP) }{ (NominalGDP) } \times 100$

(b)

$\cfrac { (RealGDP) }{ (NominalGDP) } \times 100$

(c)

$\cfrac { (NominalGNP) }{ (RealGNP) } \times 100$

(d)

$\cfrac { (NominalNDP) }{ (RealNDP) } \times 100$

11. Every able bodied person who is willing to work at the prevailing wage rate is employed called as ___________

(a)

Full employment

(b)

Under employment

(c)

Unemployment

(d)

Employment opportunity

12. Say’s law stressed the operation of________ in the economy

(a)

Induced price mechanism

(b)

Automatic price mechanism

(c)

Induced demand

(d)

Induced investment

13. Classicism theory is based on _________ equilibrium.

(a)

Very short run

(b)

Short run

(c)

Long run

(d)

very long run

14. In classical theory of employment, there is the possibility of:

(a)

Voluntary unemployment

(b)

No unemployment

(c)

Involuntary unemployment

(d)

Disguised unemployment

15. Which of the following was not a classical economist?

(a)

(b)

Thomas R. Malthus

(c)

John Stuart Mill.

(d)

John Maynard Keynes

16. The MPC is equal to :

(a)

Total spending / total consumption

(b)

Total consumption/total income

(c)

Change in consumption /change in income

(d)

none of the above

17. According to Keynes, investment is a function of the MEC and _________

(a)

Demand

(b)

Supply

(c)

Income

(d)

Rate of interest

18. The value of multiplier itself depends on ______ or marginal propensity to consume.

(a)

savings function

(b)

investment function

(c)

consumption function

(d)

interest function

19. Arrange the order of accelerator effects
Increase in consumer demand Films get close to fill capacity Films invest to meet rising demand

(a)

I, II, III

(b)

II, I, III

(c)

III, II, I

(d)

III, I, II

20. Keynes considered subjective and objective factors:

(a)

Important determinants of consumption

(b)

Unimportant determinants of consumption

(c)

Determinants of investment

(d)

Determinants of business’s willingness to pay

21. Paper currency system is managed by the

(a)

Central Monetary authority

(b)

State Government

(c)

Central Government

(d)

Banks

22. During inflation, who are the gainers?

(a)

Debtors

(b)

Creditors

(c)

Wage and salary earners

(d)

Government

(a)

J.M. Keynes

(b)

Irving Fisher

(c)

(d)

Ricardo

24. _____ is a branch of economics that provides a framework for analyzing money.

(a)

Fiscal Economics

(b)

Micro Economics

(c)

Monetary Economics

(d)

International Economics

25. Inflation is measured by the
I. consumer price index (CPI).
II. GDP deflator.
III. current account.
IV. depreciation.

(a)

I and II only.

(b)

I and III only.

(c)

III and IV only.

(d)

I, II and III.

26. Repo Rate means.

(a)

Rate at which the Commercial Banks are willing to lend to RBI

(b)

Rate at which the RBI is willing to lend to commercial banks

(c)

Exchange rate of the foreign bank

(d)

Growth rate of the economy

27. Monetary policy his formulated by.

(a)

Co-operative banks

(b)

Commercial banks

(c)

Central Bank

(d)

Foreign banks

28. Demand Deposits refers to deposits that can be withdrawn by individuals _____ to the bank.

(a)

without any prior notice

(b)

with prior notice

(c)

both a and b are correct

(d)

none of the above

29. Who is associated with the doctrine of “monetarism” and who received Nobel prize in 1976?

(a)

Milton Friedman

(b)

Joseph Schumpeter

(c)

John Stuart Mill

(d)

Keynes

30. Match the correct codes

 1 Commercial banks issue letters of credit to their customers to certify their creditworthiness i Issuing Traveler’s Cheques 2 It includes services, such as debit cards, credit card and Internet banking ii General Utility Functions 3 Banks issue traveler’s cheques to individuals for traveling outside the country iii Electronic Banking 4 It implies that commercial banks provide some utility services to customers by performing various functions iv Letter of Credit
(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

31. If there is an imbalance in the trade balance (more imports than exports), it can be reduced by

(a)

decreasing customs duties

(b)

increasing export duties

(c)

stimulating exports

(d)

stimulating imports

32. Benefits ofFDI include, theoretically

(a)

Boost in Economic Growth

(b)

Increase in the import and export of goods and services

(c)

Increased employment and skill levels

(d)

All of these

33. The modern theory of international trade explains the causes for …………….?

(a)

comparative cost difference

(b)

absolute cost difference

(c)

comparative cost similarities

(d)

absolute cost similarities

34. In the classical model of Ricardo, the direction of trade is determined by:

(a)

(b)

(c)

(d)

which way the wind blows

35. The Heckscher-Ohlin assumes that _______ are identical between countries

(a)

tastes and preferences

(b)

technology levels

(c)

factor endowments

(d)

both (a) and (b)

36. International Monetary Fund was an outcome of

(a)

Pandung Conference

(b)

Dunkel Draft

(c)

Bretton Woods Conference

(d)

Doha Conference

37. SAARC Agricultural Information Centre (SAle) works as a central information institution for agriculture related resources was founded on

(a)

1985

(b)

1988

(c)

1992

(d)

1998

38. The International Monetary Fund was established in ________.

(a)

1985

(b)

1940

(c)

1945

(d)

1918

39. Which of the following statements is not correct?

(a)

Both the IMF & IBRD have headquarters in Washington

(b)

Both IMF & IBRD are the Constituent organizations of United Nations Organization

(c)

IBRD is also called World Bank

(d)

India's vote share in the International Monetary Fund is 10%

40. Which of the following is not one of the international institutions established in the late 1940s?

(a)

The General Agreement on Tariffs and Trade (GATT)

(b)

The World Bank

(c)

The International Monetary Fund (IMF)

(d)

41. The difference between total expenditure and total receipts including loans and other liabilities is called

(a)

Fiscal deficit

(b)

Budget deficit

(c)

Primary deficit

(d)

Revenue deficit

42. Finance Commission determines

(a)

The finances of Government ofIndia

(b)

The resources transfer to the states

(c)

The resources transfer to the various departments

(d)

None of the above

43. During the past 67 years of planning, the population of India has increased from 36.1 crore in…………, to 121 crore in………..?

(a)

1951 and 2011

(b)

1981 and 2011

(c)

1991 and 2018

(d)

1971 and 2001

44. Consider the following statements and identify the right ones.
i. Central government does not have exclusive power to impose tax which is not mentioned in state or concurrent list.
ii. The constitution also provides for transferring certain tax revenues from union list to states

(a)

i only

(b)

ii only

(c)

both

(d)

none

45. The following is not a characteristic of a tax.

(a)

It is a compulsory payment

(b)

Every tax involves a sacrifice by tax payer

(c)

There is a quid-pro-quo between the tax payer and the Government

(d)

Refusal to pay tax is a punishable offence.

46. Ecosystem is smallest unit of

(a)

Ionosphere

(b)

Lithosphere

(c)

Biosphere

(d)

Mesosphere

47. One of the most important market failures is caused by __________

(a)

Positive externalities

(b)

Negative externalities

(c)

Both

(d)

None of the above

48. _____________ is the example of. negative consumption externality.

(a)

Non-smoker

(b)

Smoker

(c)

Chain smoker

(d)

Rare-smoker

49. Environmental Economics is the subset of economics that is concerned with the efficient allocation of _______________ resources.

(a)

economical

(b)

environmental

(c)

natural

(d)

industrial

50. Find the relevant term of the following statement. “When some residents of a locality hire a private security agency to patrol their area, the other residents of the area also benefit from better security without bearing cost”

(a)

NegativeProduction Externality

(b)

Negative Consumption Externality

(c)

Positive production Externality

(d)

Positive Consumption Externality

51. The non-economic determinant of economic development

(a)

Natural resources

(b)

Human resource

(c)

Capital formation

(d)

52. Who wrote the book 'The Road to Serfdom'?

(a)

Friedrich Hayek

(b)

H.R. Hicks

(c)

David Ricardo

(d)

Thomas Robert Malthus

53. In capitalism, the allocation of resources and distribution of rewards are done through the ____ system.

(a)

supply

(b)

demand

(c)

price

(d)

curve

54. The vicious circle of poverty was introduced by______

(a)

(b)

Nurkse

(c)

Dalton

(d)

Robbins

55. GNI Per Capita of \$906 and below refers to ___________?

(a)

High Income Countries

(b)

Middle Income Countries

(c)

Poor Countries

(d)

Low Income Countries

56. Sources of secondary data are______

(a)

Published sources

(b)

Unpublished sources.

(c)

Neither published nor unpublished sources

(d)

Both (a) and (b)

57. In the regression equation $X={ \beta }_{ 0 }+{ \beta }_{ 1 }{ X }_{ , }$ the X is called:

(a)

Independent varia

(b)

Dependent variable

(c)

Continuous variable

(d)

None of the above

58. Which is not a limitation of statistics?

(a)

Statistics is not suitable to the study of qualitative phenomenon

(b)

Statistical laws are not exact

(c)

Statistical collection should be systematic with a predetermined purpose

(d)

Statistics is only one of the methods of studying a problem

59. ________ are further classified as nominal and rank data.Eg.Gender, Community, honesty.

(a)

Raw data

(b)

Qualitative data

(c)

Refined data

(d)

Quantitative data

60. The value of a correlation is reported by a researcher to be r = −0.5. Which of the following statements is correct?

(a)

The x-variable explains 25% of the variability in the y-variable

(b)

The x-variable explains −25% of the variability in the y-variable.

(c)

The x-variable explains 50% of the variability in the y-variable

(d)

The x-variable explains −50% of the variability in the y-variable.

61. Part - B

35 x 2 = 70
62. Define ‘Economic Model"

63. What do you mean by Socialism?

64. Give the countries which have communism.

65. Write the equation for Four-sector economy.

66. Write a note on Central Planning?

67. Write the formula for calculating GNP

68. What is the features of GDPMP?

69. What do you understand by Net Factor Income from Abroad (X-M)?

70. What is the main feature of rural unemployment ?

71. List out the assumptions of Say’s law.

72. What is unemployment?

73. What is Cyclical Unemployment?

74. What is Technical Unemployment?

75. What is consumption function?

76. List out the assumption of psychological Law of Consumption.

77. Increase in income always leads to an increase in both consumption and saving. – Explain.

78. What is barter?

79. Define paper currency.

80. Write the Fisher’s Extended Form of equation

81. Define Commercial banks.

82. What is a debit card?

83. Differential in short – NEFT and RTGS.

84. What is meant by Exchange Rate?

85. What are the types Trade?

86. What is the multi fibre agreement?

87. Differentiate tax and fee.

88. What is Repudiation?

89. What are environmental goods? Give examples

90. Draw the diagram depicts the interdependence of economics and environment.

91. Distinguish between economic growth and development

92. What do you mean by development?

93. What is the key difference between comprehensive and partial plan?

94. What do you mean by Inferential Statistics?

95. Define Correlation.

96. Comment – “Statistics and Education”

97. Part - C

25 x 3 = 75
98. Distinguish between Capitalism and Globalism.

99. Outline major demerits of capitalism.

100. Explain briefly NNP at factor cost.

101. Compare and contrast different measures of GDP calculations

102. According to classical theory of employment, how wage reduction solve the problem of unemployment diagramatically explain.

103. What are the economic costs of unemployment?

104. Differentiate autonomous and induced investment.

105. List of uses of multiplier.

106. Explain disinflation

107. What is money? Explain the three functions that money performs. Which one is the primary function of money?

108. Give a brief note on NBFI.

109. Discuss the Primary Functions.

110. State the objectives of Foreign Direct Investment.

111. List out the limitations of Modern Theory of International Trade?

112. What are the Determinants of Exchange Rates?

114. What are the major achievements of WTO?

115. Describe Canons of Taxation.

116. What are the main sources of internal public debt?

117. What are the causes of water pollution?

118. Draw the classification of sources of e-waster.

119. How would you break the vicious circle of poverty?

120. List the economic and non-economic determinants of economic development.

121. Mention the uses of Regression Analysis

122. State the types of correction on the basis of number of variables studied.

123. Part - D

10 x 5 = 50
124. Discuss the features of Capitalist economy

125. Consider the following are the only transactions take place in an economy:
(i) Industry A imports goods worth Rs. 100. It sells goods worth Rs. 400 to industry B, 'goods worth Rs. 200 to industry C, and goods worth Rs. 1,000 for private consumption.
(ii) Industry B sells goods worth Rs. 500 to industry C and goods worth Rs. 800 for private consumption.
(iii) Industry C sells goods worth Rs. 600 to private consumption. and exports goods ,valUed at Rs. 500.
(iv) Depreciation cost during the year amounts to Rs. 100,
(v) Government realises taxes of the value of Rs. 100. Calculate the following with the help of net value added method from the data given above (a) GNPMP (b) GNPFC (c) NNPMP and (d) NNPFC

126. In each of the following scenario, classify the individual as frictionally,structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slow down. Because of weak demand, Kumar has lost his portering job at the railway station.
(b) Sathish, a newly qualified dental graduate, is looking for a place to set up practice.
(c) Latha is thrown out of work by the introduction of a more mechanized production process.
(d) Devi, a computer programmer with a large bank, quit her job two months ago in search of a better-paid programming position. She is still looking.

127. What are the differences between MEC and MEI.

128. Derive the value of the multiplier assuming the basic form of the consumption function as C = a + bY where "a" is autonomous consumption and "b" is the marginal propensity to consume. You may assume a two-sector economy.

129. What are the objectives of ARDC? Explain

130. Elaborate various Gains from International Trade?

131. What are the advantages of GST?

132. Explain non-economic factors determining development?

133. Find the Pearsonian correlation coefficient between sales (in thousand units) and expenses (in thousand rupees) of the following 10 firms:

 Firm 1 2 3 4 5 6 7 8 9 10 Sales: 50 50 55 60 65 65 65 60 60 50 Expenses: 11 13 14 16 16 15 15 14 13 13