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12th Standard Economics English Medium Free Online Test Creative 1 Mark Questions - 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. What is considered as the heart of any capitalistic economy?

    (a)

    Sales mechanism

    (b)

    Price mechanism

    (c)

    Demand mechanism

    (d)

    Exchange mechanism

  2. The value of net national product will be more than the value of net domestic product, if ________.

    (a)

    imports exceed exports

    (b)

    exports exceed imports

    (c)

    exports equal imports

    (d)

    none of the above

  3. Which one of the following is not a macro economic variables

    (a)

    Input – Output ratio

    (b)

    Tax – GDP ratio

    (c)

    Current Account Deficit - GDP ratio

    (d)

    Fiscal Deficit - GDP ratio

  4. Keynesian theory is based on _____________ equilibrium.

    (a)

    Very short - run equilibrium

    (b)

    Short run - equilibrium

    (c)

    Long run - equilibrium

    (d)

    Very long run - equilibrium

  5. The Great Depression of 1930s was also caused by a _______________

    (a)

    Fall in investment

    (b)

    Income and consumption

    (c)

    Income and employment

    (d)

    Interest and money

  6. 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

  7. According to Marshall’s equation, the value of money is influenced not only by changes in M, but also by changes in

    (a)

    K

    (b)

    P

    (c)

    Kl

    (d)

    Pl

  8. Assertion (A): Whenever banks have any shortage of funds they can borrow from the RBI, against securities.
    Reason (R): If the RBI increases the Repo Rate, it makes borrowing expensive for banks and vice versa.

    (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.

  9. The Heckscher-Ohlin theory explains comparative advantage as the result of differences incountries’:

    (a)

    Economies of large-scale production.

    (b)

    Relative abundance of various resources

    (c)

    Relative costs of labor.

    (d)

    Research and development expenditures.

  10. In regression analysis, the variable that is being predicted is the

    (a)

    response, or dependent, variable

    (b)

    independent variable

    (c)

    intervening variable

    (d)

    is usually x

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