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All Chapter 1 Mark

12th Standard EM

    Reg.No. :
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Economics

Time : 00:45:00 Hrs
Total Marks : 48
    Choose The Correct Answer:
    48 x 1 = 48
  1. Identify the other name for Macro Economics

    (a)

    Price Theory

    (b)

    Income Theory

    (c)

    Market Theory

    (d)

    Micro Theory

  2. The Circular Flow Model that represents an open Economy

    (a)

    Two Sector Model

    (b)

    Three Sector Model

    (c)

    Four Sector Model

    (d)

    All the above

  3. The right to property exists largely in _______.

    (a)

    Traditional society

    (b)

    Capitalism

    (c)

    Socialism

    (d)

    Mixed economy

  4. Match the correct codes

    1. Wages, dividends, interest, profits and rent - i Towards
    Government
    2. Purchases of goods and Service - ii Towards `households
    3. Taxes - iii Towards firm
    4. Social Transfer - iv Towards house hold
    (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)

  5. Expenditure method is used to estimate national income in_______

    (a)

    Construction sector

    (b)

    Agricultural Sector

    (c)

    Service sector

    (d)

    Banking sector

  6. The value of NNP at production point is called_________

    (a)

    NNP at factor cost

    (b)

    NNP at market cost

    (c)

    GNP at factor cost

    (d)

    Per capita income

  7. Real and nominal income is calculated respectively at_________

    (a)

    Current price and Constant Price

    (b)

    Constant price and Current price

    (c)

    Current price and Current price

    (d)

    Constant price and Constant price

  8. GNPMP is equal to

    (a)

    GDPMP + NFIA

    (b)

    GDPMP - NFIA

    (c)

    GDPMP – D

    (d)

    None

  9. In disguised unemployment, the marginal productivity of labour is _________

    (a)

    Zero

    (b)

    One

    (c)

    Two

    (d)

    Positive

  10. The component of aggregate demand is__________

    (a)

    Personal demand

    (b)

    Government expenditure

    (c)

    Only export

    (d)

    Only import

  11. After raising two children, Ancy hasstarted looking for a job and sent out a few job applications. What type of unemployment is she experiencing?

    (a)

    frictional unemployment

    (b)

    structural unemployment

    (c)

    cyclical unemployment

    (d)

    natural unemployment

  12. In the classical model:

    (a)

    flexible markets will keep the economy at a full-employment level of spending and output

    (b)

    both households’ saving activity and firms’ investment activity are quite sensitive to changes in the interest rate.

    (c)

    adjustments in the interest rates quickly correct any imbalances between saving and investment

    (d)

    all of the above

  13. The average propensity to consume is measured by

    (a)

    C/Y

    (b)

    CxY

    (c)

    Y/C

    (d)

    C+Y

  14. Lower interest rates are likely to :

    (a)

    Decrease in consumption

    (b)

    increase cost of borrowing

    (c)

    Encourage saving

    (d)

    increase borrowing and spending

  15. When MPS = 0.2, MPC will be

    (a)

    0.8

    (b)

    0.2

    (c)

    1.2

    (d)

    20

  16. 1- C/Y is defined as:

    (a)

    Average propensity to consume

    (b)

    Marginal propensity co consume

    (c)

    Average propensity to save

    (d)

    Marginal propensity to save

  17. Money is

    (a)

    acceptable only when it has intrinsic value

    (b)

    constant in purchasing power

    (c)

    the most liquid of all assets

    (d)

    needed for allocation of resources

  18. Paper currency system is managed by the

    (a)

    Central Monetary authority

    (b)

    State Government

    (c)

    Central Government

    (d)

    Banks

  19. Find which is not a an example of Fixed income Groups?

    (a)

    wages

    (b)

    salary

    (c)

    pension

    (d)

    organization

  20. In Fisher’s equation of exchange MV=PT, the variation of which produces a proportional change in price:

    (a)

    M

    (b)

    V

    (c)

    P

    (d)

    T

  21. Lender of the last resort is one of the functions of.

    (a)

    Central Bank

    (b)

    Commercial banks

    (c)

    Land Development Banks

    (d)

    Co-operative banks

  22. 2016 Demonetization of currency includes denominations of

    (a)

    Rs.500 and Rs.1000

    (b)

    Rs.1000 and Rs2000

    (c)

    Rs.2c0 and Rs.500

    (d)

    All the above

  23. Under which Act, every bank has to obtain a banking license from RBI to conduct banking business in India.

    (a)

    Sec 32 of Banking Regulation Act

    (b)

    Baking Act of Parliament

    (c)

    Sec 22 of Banking Regulation Act

    (d)

    None of the above

  24. The specific objectives of monetary policy are

    (a)

    Neutrality of money

    (b)

    Tax control

    (c)

    Stability of exchange rates

    (d)

    Price stability

  25. Terms of Trade of a country show __________.

    (a)

    Ratio of goods exported and imported

    (b)

    Ratio of import duties

    (c)

    Ratio of prices of exports and imports

    (d)

    Both (a) and (c)

  26. Favourable trade means value of exports are ________ Than that of imports.

    (a)

    More

    (b)

    Less

    (c)

    More or Less

    (d)

    Not more than

  27. Assertion (A) A country can gain from trade when it produces at relatively lower costs.
    Reason (R) When a country enjoys absolute advantage in both goods, the country would specialize in the production and export of those goods which are relatively more advantageous

    (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.

  28. The opportunity cost of one DVD in India is

    Country Tons of steel DVDs
    China 80 40
    India 20 20
    (a)

    One ton of steel

    (b)

    Two tons of steel

    (c)

    Three tons of steel

    (d)

    Four tons of steel

  29. The first ministerial meeting ofWTO was held at

    (a)

    Singapore

    (b)

    Geneva

    (c)

    Seattle

    (d)

    Doha

  30. 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

  31. _______ meets once in 2 years.

    (a)

    ASEAN

    (b)

    SAARC

    (c)

    IMF

    (d)

    WTO

  32. 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

  33. One of the following is NOT a feature of private finance

    (a)

    Balancing of income and expenditure

    (b)

    Secrecy

    (c)

    Saving some part of income

    (d)

    Publicity

  34. The difference between revenue expenditure and revenue receipts is

    (a)

    Revenue deficit

    (b)

    Fiscal deficit

    (c)

    Budget deficit

    (d)

    Primary deficit

  35. Find the meaning of following statement. “Import duties levied on goods from outside the country, ultimately paid for by consumers and retailers”

    (a)

    Sales Tax

    (b)

    Custom Duty

    (c)

    Gift Tax

    (d)

    GST

  36. A Finance Commission is set up once in every …………..?

    (a)

    6 years

    (b)

    1 year

    (c)

    5 years

    (d)

    3 years

  37. Ecosystem is smallest unit of

    (a)

    Ionosphere

    (b)

    Lithosphere

    (c)

    Biosphere

    (d)

    Mesosphere

  38. Global warming also refers to as

    (a)

    Ecological change

    (b)

    Climate Change

    (c)

    Atmosphere change

    (d)

    None of the above

  39. Increasing temperature in the atmosphere leads to __________ and thereby _____________and melting of polar icebergs, displacement, and loss of habitat

    (a)

    global warming and to increase sea level rise

    (b)

    Acid Rain and to increase sea level rise

    (c)

    global warming and to decrease sea level rise

    (d)

    None of the above

  40. 1 EcoSystem i. The presence of harmful or objectionable material to damage water quality.
    2 Pollution ii. The increase in temperature of the Earth’s surface, due to greenhouse gases.
    3 Water Pollution iii. Residual discharges of contaminants into the natural environment to the air or water
    4 Global warming iv. The interacting system of a biological community and it's nonliving environmental surroundings
    (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)

  41. Arrange following plans in correct chronological order
    (i) People's Plan
    (ii) Bombay Plan
    (iii) Jawaharlal Nehru Plan
    (iv) Vishveshwarya Plan

    (a)

    (i) (ii) (iii) (iv)

    (b)

    (iv) (iii) (ii) (i)

    (c)

    (i) (ii) (iv) (iii)

    (d)

    (ii) (i) (iv) (iii)

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

    (a)

    Friedrich Hayek

    (b)

    H.R. Hicks

    (c)

    David Ricardo

    (d)

    Thomas Robert Malthus

  43. _____is the period of sixth five year plan during Ianata party in centre.

    (a)

    1975-80

    (b)

    1980-85

    (c)

    1985-90

    (d)

    1978-83

  44. Match list-I with List-II correctly and select your answer from the codes given below:

    List I List II
    a) Gandhian Plan 1) ArdesirDalal
    b) People’s plan 2) Mannarayana
    c) Bombay Plan 3) M. N. Roy
    d) Sarvodaya Plan 4) Jay Prakash Narayan
    (a)

    1 2 3 4

    (b)

    2 3 1 4

    (c)

    2 3 4 1

    (d)

    1 2 4 3

  45. If both variables X and Y increase or decrease simultaneously, then the coefficient of correlation will be:

    (a)

    Positive

    (b)

    Negative

    (c)

    Zero

    (d)

    One

  46. If the points on the scatter diagram indicate that as one variable increases the other variable tends to decrease the value of r will be:

    (a)

    Perfect positive

    (b)

    Perfect negative

    (c)

    Negative

    (d)

    Zero

  47. If the correlation coefficient is a positive value, then the slope of the regression line

    (a)

    must also be positive

    (b)

    can be either negative or positive

    (c)

    can be zero

    (d)

    can not be zero

  48. Match the correct codes

    1 Statistics
    Regression
    1 Y = β0 + β1X1 +
    β2X2 + β3X3+Ui
    2 Econometrics
    Regression
    2 β0 + β1Xi
    3 More than 2
    variables
    3 Yi = β0 + β1Xi
    4 Systematic Part 4 Yi = β0 + β1Xi
    (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)

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