#### First Mid Term Model Question Paper

12th Standard EM

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Economics

Time : 01:00:00 Hrs
Total Marks : 50
10 x 1 = 10
1. The branches of the subject Economics is

(a)

Wealth and welfare

(b)

production and consumption

(c)

Demand and supply

(d)

micro and macro

2. Who is regarded as Father of Modern Macro Economics

(a)

(b)

J M Keynes

(c)

Ragnar Frisch

(d)

Karl Marx

3. Percapita Income =

(a)

National Income - Population

(b)

Personal Income

(c)

National Income $\div$ Population

(d)

National Income x Population

4. Who was the Nobel laureate first introduced the concept of national income?

(a)

Quasney

(b)

Keynes

(c)

Simon Kuznets

(d)

5. The main concention of the Classical Economic Theory is____________

(a)

Under employment

(b)

Economy is always in the state of equilibrium

(c)

Demand creates its supply

(d)

Imperfect competition

6. Full employment as "that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices" who quote this above concept.

(a)

J,M. Keynes

(b)

Lerner

(c)

J,B. Say

(d)

All the above

7. If the MPC = 0.6, find MPS

(a)

1

(b)

0.4

(c)

0.6

(d)

2

8. According to Keynes the most important determinant of investment

(a)

MEC

(b)

Effective demand

(c)

Aggregate demand

(d)

Rate of interest

9. Money is

(a)

acceptable only when it has intrinsic value

(b)

(c)

the most liquid of all assets

(d)

needed for allocation of resources

10. Irving Fisher'_______s was published in 1911.

(a)

Quantity theory of money

(b)

Liquidity preference

(c)

Quality theory of money

(d)

Both 'b' and 'c'

11. 5 x 1 = 5
12. Mixed Economy

13. (1)

National Income at current price $\div$ P1/P0

14. National income at constant a price

15. (2)

Economic Welfare

16. PQLI

17. (3)

ΔC/ΔY

18. MPC

19. (4)

India

20. n

21. (5)

P(K+rK1)

5 x 2 = 10
22. ‘Circular Flow of Income’ - Define

23. Write down the countries that have capitalistic, economy.

24. Define National Income.

25. What is consumption function?

26. What are Subjective Factors?

27. 5 x 3 = 15
28. Write the basis how Economies can be classified into different types

29. Write a short note on per capita income

30. State Duesenberry hypothesis.

31. Explain any three long run factors of MEC.

32. Explain Effects on Production of Inflation.

33. 2 x 5 = 10
34. Discuss the concept of “Factor Cost”.

35. In each of the following scenario, classify the individual as frictionally,structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slow down. Because of weak demand, Kumar has lost his portering job at the railway station.
(b) Sathish, a newly qualified dental graduate, is looking for a place to set up practice.
(c) Latha is thrown out of work by the introduction of a more mechanized production process.
(d) Devi, a computer programmer with a large bank, quit her job two months ago in search of a better-paid programming position. She is still looking.