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12th Standard Economics English Medium Free Online Test Creative One Mark Questions with Answer Key

12th Standard

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Economics

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

    Answer all the questions

    10 x 1 = 10
  1. Inflation refers to steady ________ in general price level.

    (a)

    decrease

    (b)

    increase

    (c)

    constant

    (d)

    flat

  2. Secondary sector is __________

    (a)

    Industry

    (b)

    Trade

    (c)

    Agriculture

    (d)

    Manufacture

  3. Sum of all kinds of income received by the individuals from all sources is called________

    (a)

    Personal Income

    (b)

    Private Income

    (c)

    Personal Disposable Income

    (d)

    Non

  4. Investment is the addition to real ___________

    (a)

    Input

    (b)

    Output Asset

    (c)

    Capital Assets

    (d)

    None of these

  5. As income decreases, consumption will ____________

    (a)

    fall

    (b)

    not change

    (c)

    fluctuate

    (d)

    increase

  6. Match the correct codes

    1 The average propensity to consume i The ratio of change in saving to a change
    in income
    2 The marginal propensity to
    consume
    ii The ratio of saving to income
    3 Marginal Propensity to Save iii Defined as the ratio of the change in the
    consumption to the change in income
    4 The average propensity to save iv The ratio of consumption expenditure to
    any particular level of income
    (a)

    (1) – (i) (2) – (ii) (3) – (iv) (4) – (i)

    (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)

  7. The general form of equation given by fisher is______

    (a)

    MV=PT

    (b)

    M = KPY

    (c)

    N= P/K

    (d)

    None of the above

  8. During stagflation
    I. an increase in aggregate spending will eliminate the recession.
    II. a decrease in aggregate spending will reduce inflation.
    III. government faces contradictory goals.
    IV. The central bank decreases money supply to reduce inflation

    (a)

    I and II only

    (b)

    III and IV only

    (c)

    I, II and III only

    (d)

    I, II, III and IV

  9. The process of ______ begins with banks lending money out of primary deposit.

    (a)

    credit creation

    (b)

    cash credit

    (c)

    debit creation

    (d)

    over draft

  10. There are _______ major exchange rate system

    (a)

    two

    (b)

    three

    (c)

    four

    (d)

    five

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