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12th Standard Economics English Medium Free Online Test 1 Mark Questions 2020 - Part Two

12th Standard

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Economics

Time : 00:10:00 Hrs
Total Marks : 10

    Answer all the questions

    10 x 1 = 10
  1. In classical system which of the following keeps the economy at full employment

    (a)

    Level of saving

    (b)

    Increase in money supply

    (c)

    Adjustment in investment

    (d)

    Adjustment in money wages

  2. Assertion (A): J.B. Say propounded the fundamental Psychological Law of Consumption which forms the basis of the consumption function.
    Reason (R): The law implies that there is a tendency on the part of the people to spend on consumption less than the full increment of income.

    (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.

  3. Fisher’s Equation of quantity theory states that:

    (a)

    P varies directly with income

    (b)

    P varies directly with M

    (c)

    P and M are constant

    (d)

    None of the above

  4. _____ was introduced by Sher Shah Suri based on a ratio of 40 copper pieces (paisa) per rupee.

    (a)

    The first currency

    (b)

    The first rupee

    (c)

    The first money

    (d)

    The first transaction

  5. The modern theory explains the phenomenon of international trade on the basis of ___________.

    (a)

    Labour theory of value

    (b)

    Factor endowment theory

    (c)

    General theory of value

    (d)

    Ricardo theory

  6. The term ‘Fiscal Economics’ is a new one; the old and popular term of the subject is …………….?

    (a)

    Private Finance

    (b)

    Public Finance

    (c)

    International Finance

    (d)

    Modern Economics

  7. Pick out the feature which is not true in the case of repudiation of debt.

    (a)

    Simplest method of liquidating a debt.

    (b)

    It will increase the credibility of the government

    (c)

    Debtors may face loss

    (d)

    It is discriminating

  8. Find the odd one in the context of man made noises.

    (a)

    ships

    (b)

    aircraft

    (c)

    seismic exploration

    (d)

    submarines

  9. Consider the following statements:
    1. ‘Planned Economy for India’ was a famous book written by Dada BhaiNauroji.
    2. For Economic planning, ‘Gandhian plan’ was proposed by Mr. Mannarayan.
    3. First five year plan was started in 1950
    4.’People Plan’ was presented by M.N. Roy Select the correct answer from the given codes below

    (a)

    1 and 2

    (b)

    2 and 4

    (c)

    1, 2, and 3

    (d)

    1, 2,3 and 4

  10. Assertion (A): The principal factor affecting the development of an economy is the availability of natural resources.
    Reason (R): The existence of natural resources in abundance is essential for development.

    (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.

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