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Important Questions Part-V

12th Standard EM

    Reg.No. :
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Economics

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

    Part - A

    60 x 1 = 60
  1. Who coined the word ‘Macro’?

    (a)

    Adam Smith

    (b)

    J M Keynes

    (c)

    Ragnar Frisch

    (d)

    Karl Marx

  2. A steady increase in general price level is termed as_____________.

    (a)

    wholesale price index

    (b)

    Business Cycle

    (c)

    Inflation

    (d)

    National Income

  3. Identify the Father of Scientific Socialism.

    (a)

    Adamsmith

    (b)

    J.M. Keynes

    (c)

    Karl Marx

    (d)

    Marshall

  4. Who defined the following statement for an economy? “A system by which people earn their living.”

    (a)

    J. R. Hicks

    (b)

    A. J. Brown

    (c)

    J. S. Mill

    (d)

    J.M. Keynes

  5. Which of the following is not a macroeconomic goal?

    (a)

    Full Employment

    (b)

    Price Stability

    (c)

    Economic Security

    (d)

    All of the above are macro economic goals

  6. Income method is measured by summing up of all forms of__________

    (a)

    Revenue

    (b)

    Taxes

    (c)

    expenditure

    (d)

    Income

  7. The financial year in India is__________

    (a)

    April 1 to March 31

    (b)

    March 1 to April 30

    (c)

    March 1 to March 16

    (d)

    January 1 to December 31

  8. Formula for calculating NNP at factor cost.

    (a)

    \(\frac{Nominal\ GDP}{Real\ GDP}\times 100\)

    (b)

    NNP at Market Prices - Indirect taxes + Subsidies.

    (c)

    GNP - Depreciation allowance

    (d)

    Output = Income = Expenditure

  9. __________ Framework is useful for economists as well as policy makers.

    (a)

    Social Accounting

    (b)

    Statistics

    (c)

    Capital Gains

    (d)

    None of these

  10. The value of ‘intermediate goods’ are excluded from GDP calculation because

    (a)

    It will increase the GDP unduly

    (b)

    It results in double counting of same value

    (c)

    Intermediate goods are not important

    (d)

    All the above

  11. Aggregate supply is equal to___________

    (a)

    C + I + G

    (b)

    C + S + G + (x-m)

    (c)

    C + S + T + (x-m)

    (d)

    C + S + T + Rf

  12. In Keynes theory of employment and income, ___________ is the basic cause of economic depression

    (a)

    Less production

    (b)

    More demand

    (c)

    Inelastic supply

    (d)

    Less aggregate demand in relation to productive capacity

  13. Say's law of market is the core of the __________ theory of employment.

    (a)

    classical

    (b)

    economical

    (c)

    environmental

    (d)

    proportional

  14. ____________ attributes unemployment to a lack of effective demand.

    (a)

    J.M. Keynes

    (b)

    J.B.Say

    (c)

    Wonnacott

    (d)

    Marshall

  15. What is considered as the starting point of Keynes theory of employment and income?

    (a)

    The principle of effective demand

    (b)

    The principle of effective supply

    (c)

    The principle of effective equilibrium

    (d)

    Say’s Market Law

  16. The average propensity to consume is measured by

    (a)

    C/Y

    (b)

    CxY

    (c)

    Y/C

    (d)

    C+Y

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

    (a)

    Demand

    (b)

    Supply

    (c)

    Income

    (d)

    Rate of interest

  18. If the Keynesian consumption function is C = 10 + 0.8Y then, if disposable income is Rs 1000, what is amount of total saving?

    (a)

    810

    (b)

    190

    (c)

    0.8

    (d)

    0.81

  19. Consumption function is the relationship ______ between and the national income.

    (a)

    Consumption expenditure

    (b)

    Government expenditure

    (c)

    Distribution expenditure

    (d)

    Investment expenditure

  20. The marginal propensity to save is defined as:

    (a)

    1-ΔC/ΔY

    (b)

    S/Y

    (c)

    Y/S

    (d)

    Y/ΔS

  21. ___________inflation occurs when general prices of commodities increases due to increase in production costs such as wages and raw materials.

    (a)

    Cost-push

    (b)

    demand pull

    (c)

    running

    (d)

    galloping

  22. “Money can be anything that is generally acceptable as a means of exchange and that thesame time acts as a measure and a store of value”, This definition was given by

    (a)

    Crowther

    (b)

    A.C.Pigou

    (c)

    F.A.Walker

    (d)

    Francis Bacon

  23. Identify anexample of digital currency.

    (a)

    crypto currencies

    (b)

    ATM

    (c)

    Legal Tender Money

    (d)

    None of the above

  24. Expand the CDR.

    (a)

    Cash Deposit Ratio (CDR)

    (b)

    Currency Digital Ratio (CDR)

    (c)

    Currency Deposit Ratio (CDR)

    (d)

    Currency Deposit Ration (CDR)

  25. The Cambridge version of the quantity theory of money was developed by:

    (a)

    Fisher

    (b)

    Alfred Marshall

    (c)

    Pigou

    (d)

    Keynes

  26. Central bank is_____ authority of any country.

    (a)

    Monetary

    (b)

    Fiscal

    (c)

    Wage

    (d)

    National Income

  27. Bank Rate means.

    (a)

    Re-discounting the first class securities

    (b)

    Interest rate

    (c)

    Exchange rate

    (d)

    Growth rate

  28. RBI will act as the banker to the___________

    (a)

    Private concern

    (b)

    Society

    (c)

    Government of India

    (d)

    Both 'i' and 'b'

  29. Finance is the life blood of all economic activities such as________

    (a)

    trade

    (b)

    commerce

    (c)

    agriculture

    (d)

    all the above

  30. _________is the life blood. of all the activities.

    (a)

    Finance

    (b)

    Sales

    (c)

    Deposits

    (d)

    Loans

  31. Components of balance of payments of a country includes

    (a)

    Current account

    (b)

    Official account

    (c)

    Capital account

    (d)

    All of above

  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. Find the missing flow of concept of H-O Theorem. Abundance of skilled labour → specialisation → ………?……..→ exchange for goods are services produced by countries with abundance of unskilled labour

    (a)

    import

    (b)

    export

    (c)

    devaluation

    (d)

    factor endowment

  34. Assertion (A) If the market forces of demand and supply are allowed to play freely, equilibrium will be automatically restored in course of time
    Reason (R) Under the free exchange rate system, the automatic adjustments of the balance of payments can take place through changes in the variables like price, interest, income and capital flows.

    (a)

    Both (A) and (R) are true and (R) is the correct explanation of (A).

    (b)

    Both (A) and (R) are true, but (R) is not the correct explanation of (A).

    (c)

    (A) is true, but (R) is false.

    (d)

    (A) is false, but (R) is true.

  35. Absolute advantage is determined by

    (a)

    actual differences in labor productivity between countries

    (b)

    relative differences in labor productivity between countries.

    (c)

    both (a) and (b)

    (d)

    neither (a) nor (b)

  36. International Monetary Fund is having its headquarters at

    (a)

    Washington D.C.

    (b)

    New York

    (c)

    Vienna

    (d)

    Geneva

  37. BENELUX is a form of

    (a)

    Free trade area

    (b)

    Economic Union

    (c)

    Common market

    (d)

    Customs union

  38. As of now, The IBRD has …………..member countries

    (a)

    188

    (b)

    189

    (c)

    35

    (d)

    210

  39. Until………………….became the member of World Bank in 1980, India was the largest beneficiary of the World Bank assistance.

    (a)

    South Africa

    (b)

    China

    (c)

    Nepal

    (d)

    Indonesia

  40. Which of the following is correct representation in terms of trade agreement?

    (a)

    EU < CM > CU > FTA

    (b)

    EU > CM > CU > FTA

    (c)

    EU > CM< CU > FTA

    (d)

    EU< CM < CU < FTA

  41. Methods of repayment of public debt is

    (a)

    Conversion

    (b)

    Sinking fund

    (c)

    Funded debt

    (d)

    All these

  42. Which one of the following deficits does not consider borrowing as a receipt?

    (a)

    Revenue deficit

    (b)

    Budgetary deficit

    (c)

    Fiscal deficit

    (d)

    Primary deficit

  43. Income tax satisfies the canon of …………….?

    (a)

    equity

    (b)

    equality

    (c)

    economy

    (d)

    efficiency

  44. Impact of a tax refers to

    (a)

    Final money burden

    (b)

    Immediate money burden

    (c)

    Indirect real burden

    (d)

    None of the above

  45. Match the correct codes

    1 A fee i Charged by public authorities for rendering a service to the citizens
    2 A fine ii A penalty imposed on an individual for violation of law
    3 Earnings from Public Enterprises iii The Government also gets revenue by way of surplus from public enterprises
    4 A grant iv One government to another is an important source of revenue
    (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)

  46. Ecosystem is smallest unit of

    (a)

    Ionosphere

    (b)

    Lithosphere

    (c)

    Biosphere

    (d)

    Mesosphere

  47. The common source of outdoor air pollution is caused by combustion processes from the following ______________

    (a)

    Heating and cooking

    (b)

    Traditional stoves

    (c)

    Motor vehicles

    (d)

    All the above

  48. The relationship between the ___________ and _________is generally explained in the form of a “Material Balance Model’’ developed by AlenKneese and R.V. Ayres.

    (a)

    economy and the ecosystem

    (b)

    society and the environment

    (c)

    ecosystem and society

    (d)

    economy and the environment

  49. Find the odd one in the context green house effect.

    (a)

    Oxygen

    (b)

    Carbon dioxide

    (c)

    methane

    (d)

    Chlorofluoro Carbon

  50. Which of the following statements are correct?
    1. A new study has found that changes in solar activity contributed no more than 10 percent to global warming in the 20th century published in the journal Environmental Research Letters.
    2. It has been proposed that cosmic rays may have a role in cooling the earth by encouraging clouds to form, which subsequently reflect the sun’s rays back into space.
    3. Researchers found a high correlation between cosmic rays and global temperatures occurring every 22 years.

    (a)

    1 only

    (b)

    1 and 2 only

    (c)

    2 and 3 only

    (d)

    All of the above

  51. Which of the following plan has focused on the agriculture and rural economy

    (a)

    People's Plan

    (b)

    Bombay Plan

    (c)

    Gandhian Plan

    (d)

    Vishveshwarya Plan

  52. The Chair Person of NIT I Aayog is

    (a)

    Prime Minister

    (b)

    President

    (c)

    Vice - President

    (d)

    Finance Ministed

  53. What are the income limits of Middle Income Countries as per World Development Report?

    (a)

    GNI Per Capita Ranging Between $906 And $11, 115

    (b)

    GDP Per Capita Ranging Between $906 And $11, 115

    (c)

    Per Capita Ranging $11, 115 and above

    (d)

    GDP Per Capita Ranging Between $906 or below

  54. Capital formation refers to the net addition to the ___________ which are either tangible like plants and machinery or intangible like health, education, and research.

    (a)

    existing flow of capital goods

    (b)

    old stock of capital goods

    (c)

    anticipated flow of capital goods

    (d)

    existing stock of capital goods

  55. The missing part of the cycle

    (a)

    Low income

    (b)

    Low tax

    (c)

    Low productivity

    (d)

    Low investment

  56. The word 'statistics' is used as _______

    (a)

    Singular.

    (b)

    Plural

    (c)

    Singular and Plural.

    (d)

    None of above

  57. Econometric is the word coined by

    (a)

    Francis Galton

    (b)

    Ragnar Frish

    (c)

    Karl Person

    (d)

    Spearsman

  58. Find the equation of multiple correlation.

    (a)

    Qd= f (P, Pc, Ps, t, y)

    (b)

    X= a – bx

    (c)

    Y= a + bx

    (d)

    Y= a – bx

  59. The term ‘Regression’ was first coined and used in 1877 by________.

    (a)

    Hicks

    (b)

    Friedman

    (c)

    Galton

    (d)

    Spearman

  60. How many divisions of operations that NSSO has?

    (a)

    four divisions

    (b)

    three divisions

    (c)

    five divisions

    (d)

    two divisions

  61. Part - B

    35 x 2 = 70
  62. ‘Circular Flow of Income’ - Define

  63. What is Mixed Economy?

  64. Give the countries which have communism.

  65. Who is the controll authority of socialistic economy?

  66. Draw the chart depicting various systems of economy

  67. What is the difference between NNP and NDP?

  68. Write a short note on Capital Gains.

  69. What is Gross Nation Product at Market Price (GNPMP)?

  70. Define full employment.

  71. What is effective demand ?

  72. Write the formula for aggregate supply?

  73. What is Aggregate supply?

  74. What is the main criticism of Keynes on Classicals?

  75. Define average propensity to consume (APC).

  76. Find the missing value in the given schedule of consumption function.

                    Question
    Income Consumption Savings
    Y C S
    0 20 -20
    60 70 -10
    120 120 ?
    180 170 10
    240 ? 20
    300 270 ?
    360 320 ?
  77. What are positive and negative multipliers?

  78. What is commodity money?

  79. Write a short note on wage-price spiral

  80. Mention the components of Money Supply in India.

  81. Define Commercial banks.

  82. What is “Banking Ombudsman Scheme”

  83. What is Moral Suasion?

  84. Define Terms of Trade.

  85. List the Types of Exchange Rates Exchange rates

  86. Write any four functions of WTO.

  87. Write a short note on zero based budget.

  88. What is role of state on infrastructure?

  89. What do you mean by ecosystem?

  90. What are the dimensions of sustainable development?

  91. What are the social indicators of economic development?

  92. What is financial planning?

  93. Distinguish between planning by direction and inducement.

  94. What are the kinds of Statistics?

  95. Define Regression.

  96. Write some of econometric software that you may know.

  97. Part - C

    25 x 3 = 75
  98. Indicate the demerits of socialism

  99. What are limitations from which Macro economics suffer?

  100. Write briefly about national income and welfare

  101. What are the five types of final goods and services that GNP includes?

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

  103. Distinguish between Fictional and Structural unemployment.

  104. Specify the limitations of the multiplier.

  105. Draw the diagram depicting the psychological law of consumption.

  106. Explain Demand-pull and Cost push inflation.

  107. Explain the concept of Plastic Money.

  108. What are the functions of NABARD?

  109. Differentiate CRR and SLR.

  110. Distinguish between Balance of Trade and Balance of Payments.

  111. What are the general advantages of International Trade?

  112. Write the measures to correct BOP Disequilibrium.

  113. Mention any three lending programmes of IMF.

  114. What are the major objectives of WTO?

  115. What is primary deficit?

  116. Explain the Components of GST.

  117. What is land pollution? Mention the causes of land pollution.

  118. Explain different types of Noise.

  119. Elucidate major causes of vicious circle of poverty with diagram

  120. What are the main objectives of planning in India?

  121. Specify the objectives of econometrics.

  122. Given the diagrams, find the nature of correlation of various figures.

  123. Part - D

    10 x 5 = 50
  124. Explain the three sector model of economy with chart

  125. Discuss the methods of measuring the National Income by Product Method.

  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. Explain the operation of the Accelerator

  128. Explain Marginal propensity to consume and multiplier, with the help of a diagram.

  129. Compare and contrast RBI and other Commercial Banks.

  130. Explain Adam Smith’s Theory of Absolute Cost Advantage

  131. What are the taxes levied and collected by the union but assigned to the states?

  132. Elucidate various measures of economic development.

  133. Compute the Pearson r for the same sets of data using the raw score method

    X 9, 13, 6, 18, 14, 12, 11, 7, 2, 6, 14, 15, 5, 8,
    Y 23, 40, 10, 48, 25, 30, 15, 10, 5, 45, 40, 35, 12, 27

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