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Important Questions Part-VI

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. Indicate the contribution of J M Keynes to economics

    (a)

    Wealth of Nations

    (b)

    General Theory

    (c)

    Capital

    (d)

    Public Finance

  2. Who is referred as ‘Father of Capitalism’?

    (a)

    Adam Smith

    (b)

    Karl Marx

    (c)

    Thackeray

    (d)

    J M Keynes

  3. Macro economics is also known as __________.

    (a)

    Price theory

    (b)

    Income theory

    (c)

    Business cycle

    (d)

    Poverty and unemployment

  4. Market forces are _________.

    (a)

    Supply and price

    (b)

    Demand and price

    (c)

    Prices of commodity

    (d)

    Supply and demand

  5. Identify which is not an example of capitalistic economy.

    (a)

    The USA economy

    (b)

    Germany economy

    (c)

    Indian economy

    (d)

    Australia economy

  6. Net National product at factor cost is also known as

    (a)

    National Income

    (b)

    Domestic Income

    (c)

    Per capita Income

    (d)

    Salary

  7. The largest proportion of national income comes from___________

    (a)

    Private sector

    (b)

    Local sector

    (c)

    Public sector

    (d)

    None of the above

  8. GDP calculate at market price is known as __________.

    (a)

    GDP at factor price

    (b)

    NDP at factor price

    (c)

    GNP at factor price

    (d)

    GDP at Market price

  9. Goods and services produced in a year to satisfy immediate wants is known as ________.

    (a)

    Production

    (b)

    Consumption

    (c)

    Distribution

    (d)

    Exchange

  10. Inventories of finished and unfinished goods are called _________.

    (a)

    Net Investment

    (b)

    Investment

    (c)

    Gross Investment

    (d)

    Botha' and 'b'

  11. 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

  12. In Keynes theory , the demand for and supply of money are determined by ________

    (a)

    Rate of interest

    (b)

    Effective demand

    (c)

    Aggregate demand

    (d)

    Aggregate supply

  13. ___________ was set up in July 1982.

    (a)

    ARDC

    (b)

    NABARD

    (c)

    ICICI

    (d)

    Indian Bank

  14. Structural unemployment results from massive and deep rooted changes in _______?

    (a)

    political structure

    (b)

    economic structure

    (c)

    social structure

    (d)

    cultural structure

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

    (a)

    Voluntary unemployment

    (b)

    No unemployment

    (c)

    Involuntary unemployment

    (d)

    Disguised unemployment

  16. If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?

    (a)

    Rs.0.8

    (b)

    Rs.800

    (c)

    Rs.810

    (d)

    Rs.0.81

  17. As increase in consumption at any given level of income is likely to lead

    (a)

    Higher aggregate demand

    (b)

    An increase in exports

    (c)

    A fall in taxation revenue

    (d)

    A decrease in import spending

  18. 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

  19. When MPS = 0.2, MPC will be

    (a)

    0.8

    (b)

    0.2

    (c)

    1.2

    (d)

    20

  20. Assertion (A): The multiplier refers to the change in national income resulting from change in investment.
    Reason (R): The value of multiplier itself depends on consumption function or marginal propensity to consume.

    (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.

  21. MV stands for

    (a)

    demand for money

    (b)

    supply of legal tender money

    (c)

    Supply of bank money

    (d)

    Total supply of money

  22. ___________inflation is in no way dangerous to the economy

    (a)

    walking

    (b)

    running

    (c)

    creeping

    (d)

    galloping

  23. Barter system was introduced by________ tribes.

    (a)

    Mesopotamia

    (b)

    Phoenician

    (c)

    Babylonian

    (d)

    Jarwa

  24. In Keynes’ extended equation: n = p (k + rk') or p = n/(k + rk'), which one is wrongly denoted?

    (a)

    n = total money supply

    (b)

    p = price level of consumer goods

    (c)

    k = peoples' desire to hold money in hand (in terms of consumer goods) in the total income of them

    (d)

    r = community’s total money deposit in banks, in terms of consumers goods

  25. _____ can be possible When prices rise moderately and the annual inflation rate is a single digit ( 3% - 9%).

    (a)

    Walking Inflation

    (b)

    Running Inflation

    (c)

    Creeping Inflation

    (d)

    Hyper Inflation

  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. ______is the one of the functions of RBI.

    (a)

    Accepting Deposits

    (b)

    Advancing Loans

    (c)

    Collecting Cheques

    (d)

    Lender of the last resort

  29. _________was set up in July 1982

    (a)

    ARDC

    (b)

    NABARD

    (c)

    ICICI

    (d)

    Indian Bank

  30. Assertion (A): Banks issue traveler’s cheques to individuals for traveling outside the country.
    Reason (R): Traveler’s cheques are the safe and easy way to protect money while traveling.

    (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.

  31. Trade between two countries is known as ____ trade

    (a)

    External

    (b)

    Internal

    (c)

    Inter-regional

    (d)

    Home

  32. 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

  33. Mercantilism

    (a)

    Is the philosophy of free international trade

    (b)

    Was a system of export promotion and barriers to imports practiced by governments

    (c)

    Was praised by Adam Smith in The Wealth of Nations

    (d)

    Both (a) and (c)

  34. The earliest statement of the principle of comparative advantage is associated with

    (a)

    Adam Smith

    (b)

    David Ricardo

    (c)

    Eli Heckscher

    (d)

    Bertil Ohlin

  35. Assume that Country A is relatively abundant in labor and Country B is relatively abundant inland. Note that wages are the returns to labor and rents are the returns to land. According to thefactor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B.

    (a)

    wages and rents should fall in Country A

    (b)

    wages and rents should rise in Country A

    (c)

    wages should rise and rents should fall in Country A

    (d)

    wages should fall and rents should rise in Country A

  36. The headquarters of ASEAN is

    (a)

    Jaharta

    (b)

    New Delhi

    (c)

    Colombo

    (d)

    Tokyo

  37. The Tenth BRICS Summit was held in July 2018 at

    (a)

    Beijing

    (b)

    Moscow

    (c)

    Johannesburg

    (d)

    Brasilia

  38. Find the correct answer
    I. Financial – Assistance to correct short and medium term deficit in BOP;
    II. Regulatory – Counseling and technical consultancy
    III. Consultative - Code of conduct and

    (a)

    All are correctly matched

    (b)

    II only correctly matched

    (c)

    All are incorrectly matched

    (d)

    I only correctly matched

  39. Expand the term ECM

    (a)

    European Common Market

    (b)

    Equal Common Market

    (c)

    East Asian Common Market

    (d)

    EnglandCustom Market

  40. In …………….. BRICS summit in Brazil, the member countries, signed an agreement to create a development bank (New Development Bank) with headquarters at Shangai, China in 2015.

    (a)

    the first

    (b)

    the second

    (c)

    the sixth

    (d)

    the latest

  41. GST is equivalence of

    (a)

    Sales tax

    (b)

    Corporation tax

    (c)

    Income tax

    (d)

    Local tax

  42. Which of the following is not a tax under Union list?

    (a)

    Personal Income Tax

    (b)

    Corporation Tax

    (c)

    Agricultural Income Tax

    (d)

    Excise duty

  43. Budget estimates are prepared by _____________

    (a)

    Ministry of Finance

    (b)

    Public finance

    (c)

    Public Revenue

    (d)

    All the above

  44. Which of the following is note related to direct tax?

    (a)

    Progressive

    (b)

    Falls on the same person

    (c)

    Income or wealth of the assesse

    (d)

    Can be shifted

  45. How do you measure Revenue Deficit?

    (a)

    When RE + RR > 0

    (b)

    When RE - RR > 0

    (c)

    When RE - RR < 0

    (d)

    When RE - RR = 0

  46. Environmental goods are ____________

    (a)

    Market goods

    (b)

    Non-market goods

    (c)

    Both

    (d)

    None ofthe above

  47. The major contributor of Carbon monoxide is

    (a)

    Automobiles

    (b)

    Industrial process

    (c)

    Stationary fuel combustion

    (d)

    None of the above

  48. The natural pollution causes both aquatic and

    (a)

    Cancer

    (b)

    Human illness

    (c)

    Children

    (d)

    Asthm(a)

  49. In economic activities of Goods and Service, what the RC+RP mean?

    (a)

    Recycles from Production and Consumption

    (b)

    Residual Discharges from Consumption and Production

    (c)

    Consumption and Production

    (d)

    Final Residual Discharge from Production and Consumption

  50. Which of the following statement is TRUE?

    (a)

    Eco-Systems may vary in size

    (b)

    Eco-Systems are always very large

    (c)

    Eco-Systems are always very small

    (d)

    None of these is true.

  51. The supply side vicious circle of poverty suggests that poor nations remain poor because

    (a)

    Saving remains low

    (b)

    Investment remains low

    (c)

    There is a lack of effective government

    (d)

    a and b above

  52. Sarvodaya Plan was advocated by__________

    (a)

    Mahatma Gandhi

    (b)

    J.P.Narayan

    (c)

    S.N Agarwal 

    (d)

    M.N. Roy

  53. Perspective Plan covers a period of

    (a)

    5 years

    (b)

    10 years

    (c)

    10 to 30 years

    (d)

    15 years

  54. The concept "development" refers to the _____________ changes towards betterment.

    (a)

    systematic

    (b)

    seasonal

    (c)

    structural

    (d)

    functional

  55. _______________ is peculiar to the mixed economies.

    (a)

    Financial Planning

    (b)

    Structural Planning

    (c)

    Indicative planning

    (d)

    Physical Planning

  56. The data collected by questionnaires are_______

    (a)

    Primary data.

    (b)

    Secondary data

    (c)

    Published data.

    (d)

    Grouped data

  57. The term regression was used by:

    (a)

    Newton

    (b)

    Pearson

    (c)

    Spearman

    (d)

    Galton

  58. Find an example of Statistics Regression.

    (a)

    Yi = β0 + β1Xi

    (b)

    Yi = β0 + β1Xi+ Ui

    (c)

    Xi = β0 + β1Xi+ Ui

    (d)

    Yo = β0 + β1Xi+ Uo

  59. Which of the statements do not hold true?

    (a)

    Both regression coefficients cannot be greater than 1

    (b)

    Regression coefficients are unaffected by origin shift and scale shift

    (c)

    Both correlation and regression coefficients are of same sign

    (d)

    Two regression lines coincide if r=±1

  60. In regression, the equation that describes how the response variable (y) is related to the explanatory variable (x) is:

    (a)

    the correlation model

    (b)

    the regression model

    (c)

    used to compute the correlation coefficient

    (d)

    None of these alternatives is correct.

  61. Part - B

    35 x 2 = 70
  62. What do you mean by Capitalism?

  63. What is Globalism?

  64. What is Mixed Economy?

  65. What is Globalisation?

  66. What are the subject matters of macroeconomic theory

  67. What do you mean by the term ‘Personal Income’?

  68. Write the formula for calculating NDP.

  69. What are unpaid services?

  70. Define full employment.

  71. Give short note on frictional unemployment

  72. What are the three motives of liquidity preference?

  73. What is Cyclical Unemployment?

  74. Write the equation of Aggregate Supply.

  75. Define average propensity to consume (APC).

  76. Distinguish between positive multiplier and negative multiplier.

  77. State the Duesenberry hypothesis.

  78. What is gold standard?

  79. What do you mean by Trade cycle?

  80. Use the graph below to answer the following questions:

    a. Mention the phases of the “points mentioned” in business cycle graph.
    A: ___________
    B:___________
    C: ___________
    D: ___________

  81. Write the meaning of Open market operations

  82. In which year the (ATM) Automated teller Machine was introduced?

  83. What is a debit card?

  84. State any two merits of trade.

  85. What is Foreign Institutional Investment (FII)?

  86. Write a note on WTO’s Dispute Settlement Body

  87. Give two examples for direct tax.

  88. What are Sale Taxes?

  89. State the meaning of environment.

  90. What do you mean by pollution?

  91. What are the social indicators of economic development?

  92. Write a note on the demand-side of the vicious circle of poverty.

  93. Compare the different term plans.

  94. What are the kinds of Statistics?

  95. What do you mean by Inferential Statistics?

  96. List the Limitations of statistics.

  97. Part - C

    25 x 3 = 75
  98. Briefly explain the two sector circular flow model.

  99. Draw the Circular flow of income in a three sector economy.

  100. Explain briefly NNP at factor cost.

  101. What is Output method? What is its major challenge?

  102. What do you mean by aggregate demand ? Mention its components

  103. Write a short note on effective demand?

  104. Mention the differences between accelerator and multiplier effect 

  105. Draw the diagram of Multiplier in an economy.

  106. Explain disinflation

  107. Explain the three secondary function of money.

  108. Distinguish between money market and capital market

  109. Discuss the Agency Functions of RBI.

  110. Describe the subject matter of International Economics.

  111. What are the assumptions of Absolute Cost Advantages?

  112. List the assumption of Comparative advantage theory of international trade.

  113. Write the agenda ofBRICS Summit, 2018.

  114. What are the achievements of World Bank?

  115. Describe Canons of Taxation.

  116. List the Classification of public expenditure Classification on the Basis of Function

  117. What are the causes of water pollution?

  118. What are the types of Noise Pollution?

  119. Trace the evolution of economic planning in India.

  120. Distinguish between Economic Development and Growth. (Any Three Points)

  121. Mention the uses of Regression Analysis

  122. Calculate the AM of 305, 320, 332, 350

  123. Part - D

    10 x 5 = 50
  124. Explain the Demerits of capitalism.

  125. Explain the basic concepts of national income.

  126. Draw the diagram for Aggregate supply curves diagram.

  127. Explain the operation of the Accelerator

  128. Use the table below (for a simple economy with no foreign sector or government) to answer the questions that follow.

    (1)
    Income
      (Y)
    (2)
    Consumption
          (C)
    (3)
    Investment
         (l)
    (4)
    Aggregate Demand
    AD=C+1 =Column(2) +Column(3)
    0 30 (a) 50
    300 300 20 (b)
    400 (c) 20 410
    500 480 20 500
    600 (d) 20 (e)

    Fill in the missing numbers in the spaces marked (a)-(c). Determine the consumption function, and use the result to fill in the remaining missing numbers (d)-(e). (f) Determine the equilibrium output level.

  129. Write the History, Administration and Brief Functions of RBI.

  130. Explain the causes for Balance of Payment Disequilibrium

  131. What are the causes for the increase in public debt?

  132. Elucidate various measures of economic development.

  133. What are the the Formula for computing Karl Pearson’s Coefficient of correlation?

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