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#### 12th All Chapter 1 mark Impatant Question

12th Standard EM

Reg.No. :
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Economics

Time : 01:00:00 Hrs
Total Marks : 48
48 x 1 = 48
1. Identify the other name for Macro Economics

(a)

Price Theory

(b)

Income Theory

(c)

Market Theory

(d)

Micro Theory

2. Indicate the fundamental economic activities of an economy

(a)

Production and Distribution

(b)

Production and Exchange

(c)

Production and Consumption

(d)

Production and Marketing

3. Pick basic composition of two sector of model of economy

(a)

Y = C + I + G + (X – M)

(b)

Y = C + I + G

(c)

Y = C + S

(d)

Y = C + I

4. Given the chart, find the missing system of economy

(a)

Pure Mixed

(b)

Capitalist Learning

(c)

Mixed Learning

(d)

Marxis

5. Net National product at factor cost is also known as

(a)

National Income

(b)

Domestic Income

(c)

Per capita Income

(d)

Salary

6. Which is the largest figure?

(a)

Disposable income

(b)

Personal Income

(c)

NNP

(d)

GNP

7. _______ are excluded from national income.

(a)

Capital Gains

(b)

Social Accounting

(c)

Statistical Problems

(d)

None ofthese

8. GDP= ___________

(a)

GDP at Market Price + Net factor income from abroad

(b)

GDP = $\frac{Normal\ GDP}{Real\ GDP}\times100$

(c)

GDP = GNP + Net factor income from abroad

(d)

All the above

9. J.B. Say is a ___________

(a)

Neo Classical Economist

(b)

Classical Economist

(c)

Modern Economist

(d)

New Economist

10. In Keynes theory of employment and income, ___________ is the basic cause of economic depression

(a)

Less production

(b)

More demand

(c)

Inelastic supply

(d)

Less aggregate demand in relation to productive capacity

11. Assertion (A) :Aggregate supply function is an increasing function of the level of employment.
Reason (R) :Aggregate supply refers to the value of total output of goods and services produced in an economy in a year.

(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

12. Mohan used to work as an autoworker, and due to the decline of the Indain auto industry, is now unemployed and thinking about retraining as a bicycle assembler. What type of unemployment is he experiencing?

(a)

frictional unemployment

(b)

structural unemployment

(c)

cyclical unemployment

(d)

natural unemployment

13. If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?

(a)

Rs.0.8

(b)

Rs.800

(c)

Rs.810

(d)

Rs.0.81

14. When investment is assumed autonomous the slope of the AD schedule is determined by the______

(a)

marginal propensity to invest

(b)

disposable income

(c)

marginal propensity to consume

(d)

average propensity to consume

15. What is relevant in the context of MEC?
I. The prospective yield from a capital asset.
II. The supply price of a capital asset.

(a)

I only relevant

(b)

II only relevant

(c)

Both I and II are relevant

(d)

Both are irrelevant

16. Assume a simple, closed economy with no government. The marginal propensity to consume (mpc) = 0.75. Then the value of the multiplier is:

(a)

1.34

(b)

0.57

(c)

4

(d)

1.75

17. Paper currency system is managed by the

(a)

Central Monetary authority

(b)

State Government

(c)

Central Government

(d)

Banks

18. MV stands for

(a)

demand for money

(b)

supply of legal tender money

(c)

Supply of bank money

(d)

Total supply of money

19. _____ can be possible When prices rise moderately and the annual inflation rate is a single digit ( 3% - 9%).

(a)

Walking Inflation

(b)

Running Inflation

(c)

Creeping Inflation

(d)

Hyper Inflation

20. Assertion (A): Fisher extended his original equation of exchange to include bank deposits M1 and its velocity V1.
Reason (R): In a modern economy, bank’s demand deposits or credit money and its velocity play a vital part in business.

(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 fals

(d)

A is false but R is true.

21. Repo Rate means.

(a)

Rate at which the Commercial Banks are willing to lend to RBI

(b)

Rate at which the RBI is willing to lend to commercial banks

(c)

Exchange rate of the foreign bank

(d)

Growth rate of the economy

22. Expansions of ATM

(a)

Automated Teller Machine

(b)

(c)

Automatic Teller mechanism

(d)

Any Time Money

23. In which of the following, the owners of these deposits are allowed to withdraw money anytime by writing a withdrawal slip or a cheque at the bank counter or from ATM centres using debit card?

(a)

Saving Deposits

(b)

Demand Deposits

(c)

Time deposits

(d)

None of the above

24. The modern banks create deposits in two way,they are _____ deposit and ______ deposit

(a)

primary, derived

(b)

secondary, derived

(c)

primary, divided

(d)

preventable, divided

25. Net export equals _______.

(a)

Export x Import

(b)

Export + Import

(c)

Export - Import

(d)

Exports of services only

26. In the case of BOT,

(a)

Transactions of goods are recorded.

(b)

Transactions of both goods and services are recorded.

(c)

Both capital and financial accounts are included.

(d)

All of these

27. International economics first originated in ……………….on account of increasing importance of foreign trade in that part of the world

(a)

Eastern Europe

(b)

Western Europe

(c)

North America

(d)

None

28. With international trade, what would be the maximum number of DVDs that India would be willing to export to China in exchange for each ton of steel

 Country Tons of steel DVDs China 80 40 India 20 20
(a)

One DVD

(b)

Two DVDs

(c)

Three DVDs

(d)

Four DVDs

29. The other name for Special Drawing Rights is

(a)

Paper gold

(b)

Quotas

(c)

Voluntary Export Restrictions

(d)

None of these

30. Which of the following does not come under 'Six dialogue partners' of ASEAN?

(a)

China

(b)

Japan

(c)

India

(d)

North Korea

31. The SAARC movement was launched for ….

(a)

political alliances

(b)

regional cooperation

(c)

cultural exchanges

(d)

military strategy

32. Match the correct codes

 WTO Ministerial Conference Venue and Date 1 09 i Singapore, 9-13 December 1996 2 06 ii Bali, 3-6 December 2013 3 03 iii Hong Kong, 13-18 December 2005 4 01 iv Seattle, November 30 – December 3 1999
(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) – (iii) (4) – (iv)

33. Which of the following canons of taxation was not listed by Adam smith?

(a)

Canon of equality

(b)

Canon of certainty

(c)

Canon of convenience

(d)

Canon of simplicity

34. Consider the following statements and identify the right ones.
(i) The finance commission is appointed by the President
(ii) The tenure of Finance commission is five years

(a)

i only

(b)

ii only

(c)

both

(d)

none

35. Find the meaning of following statement. “Payable by the manufacturer who shifts the tax burden to retailers and wholesalers.”

(a)

Stamp Duty

(b)

Income Tax

(c)

Shifting Tax

(d)

Excise Duty

36. Which of the following Taxes are not Levied and Collected by the union but Assigned to the States (Art.269)?

(a)

Duties in respet of succession to property other than agricultural land.

(b)

Estate duty in respect of property other than agricultural land

(c)

Taxes on railway fares and freights

(d)

None of the above

37. The common source of outdoor air pollution is caused by combustion processes from the following ______________

(a)

Heating and cooking

(b)

(c)

Motor vehicles

(d)

All the above

38. The process of nutrient enrichment is termed as

(a)

Eutrophication

(b)

Limiting nutrients

(c)

Enrichment

(d)

Schistosomiasis

39. Find the missing agent of economy.

(a)

Producer’s Recycle

(b)

Distributor

(c)

Consumers

(d)

None of the above

40. Which of the following is regarded as the main cause of groundwater contamination?

(a)

agricultural products

(b)

landfills

(c)

septic tanks

(d)

All of the above main sources of groundwater contamination.

41. "Redistribution with Growth" became popular slogan under which approach?

(a)

(b)

New welfare oriented approach

(c)

Industrial approach

(d)

None of the above

42. Short-term plan is also known as________

(a)

Controlling Plans

(b)

De-controlling Plans

(c)

Rolling Plans

(d)

De-rolling Plans

43. How many approaches are there to the concept of development?

(a)

one

(b)

two

(c)

three

(d)

seven

44. Under which planning, there is central control and direction of all economic activities in accordance with a single plan

(a)

totalitarian planning

(b)

indicative planning

(c)

long term planning

(d)

mid term planning

45. The data collected by questionnaires are_______

(a)

Primary data.

(b)

Secondary data

(c)

Published data.

(d)

Grouped data

46. Econometrics is the amalgamation of

(a)

3 subjects

(b)

4 subjects

(c)

2 subjects

(d)

5 subjects

47. ___________ is known as the founder of modern statistics and also as father of ________ in India.

(a)

P.C. Mahalanobis and statistical economics

(b)

Viswesvaraya and statistics

(c)

P.C. Mahalanobis and statistics

(d)

None of the above

48. Given the diagram, find the nature of correlation.

(a)

A, B, C, are positive

(b)

A, B, C, are negative

(c)

A is positive, B is Negative and C is Positive

(d)

A is positive, B is Negative and C is Zero