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12th Standard Economics English Medium Free Online Test One Mark Questions with Answer Key 2020 - Part Seven

12th Standard

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Economics

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

    Answer all the questions

    10 x 1 = 10
  1. Indicate the fundamental economic activities of an economy

    (a)

    Production and Distribution

    (b)

    Production and Exchange

    (c)

    Production and Consumption

    (d)

    Production and Marketing

  2. Assertion (A) :The means of production in a capitalistic economy are publicly owned.
    Reason (R) :Manufacturers produce goods and services with profit motive

    (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. Assertion (A) :Personal income is the total income received by the individuals of a country from all sources before payment of direct taxes in a year.
    Reason (R) :Personal income is never equal to the national income, because the former includes the transfer payments whereas they are not included in national 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 true but R is false

  4. The basic concept used in Keynes Theory of Employment and Income is__________

    (a)

    Aggregate demand

    (b)

    Aggregate supply

    (c)

    Effective demand

    (d)

    Marginal Propensity Consume

  5. Match the correct codes

    1 J.B. Say’s Market Law i A person receives his income from production which is spent on the purchase of goods and services produced by others
    2. Keynes theory of employment ii Denotes money actually spent by the people on products of industry
    3. Market Law Meaning iii Effective demand signifies the money spent on consumption of goods and services and on investment
    4. Effective demand iv Supply creates its own demand
    (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) – (iv) (4) – (iii)

  6. Which of the following is not a kind of multiplier?

    (a)

    Tax multiplier

    (b)

    Employment multiplier

    (c)

    Foreign Trade multiplier

    (d)

    Technical Multiplier

  7. 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)

  8. Inflation means

    (a)

    Prices are rising

    (b)

    Prices are falling

    (c)

    Value of money is increasing

    (d)

    Prices are remaining the same

  9. Who among the following enunciated the concept of single factoral terms of trade?

    (a)

    Jacob Viner

    (b)

    G.S.Donens

    (c)

    Taussig

    (d)

    J.S.Mill

  10. The difference between total expenditure and total receipts including loans and other liabilities is called

    (a)

    Fiscal deficit

    (b)

    Budget deficit

    (c)

    Primary deficit

    (d)

    Revenue deficit

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