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Important Questions Part-VIII

12th Standard EM

    Reg.No. :
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Economics

Time : 01:00:00 Hrs
Total Marks : 60

    Part - A

    60 x 1 = 60
  1. Identify the other name for Macro Economics

    (a)

    Price Theory

    (b)

    Income Theory

    (c)

    Market Theory

    (d)

    Micro Theory

  2. The country following Capitalism is ________________

    (a)

    Russia

    (b)

    America

    (c)

    India

    (d)

    China

  3. Who defined the following statement for an economy? “A system by which people earn their living.”

    (a)

    J. R. Hicks

    (b)

    A. J. Brown

    (c)

    J. S. Mill

    (d)

    J.M. Keynes

  4. 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

  5. Assertion (A) :In a mixed economy, all the resources are owned and operated by the government.
    Reason (R) :Public welfare is the mainmotive behind all economic activities in mixed economy

    (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)

    Both A and R arefalse

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

    (a)

    National Income

    (b)

    Domestic Income

    (c)

    Per capita Income

    (d)

    Salary

  7. Which is the largest figure?

    (a)

    Disposable income

    (b)

    Personal Income

    (c)

    NNP

    (d)

    GNP

  8. _________ provides the social goods like public health and education etc.

    (a)

    Private

    (b)

    Government

    (c)

    Unorganised sector

    (d)

    None of these

  9. The per capita income of an economy can be calculated by __________.

    (a)

    Dividing GDP by population

    (b)

    Dividing GNP by population

    (c)

    Multiplying GNP by population

    (d)

    Dividing GNP by number of people employed

  10. Disposable Income does not include:

    (a)

    Excise duty paid

    (b)

    Income tax

    (c)

    Customs duty paid

    (d)

    None of the above

  11. Structural unemployment is a feature in a _____________

    (a)

    Static society

    (b)

    Socialist society

    (c)

    Dynamic society

    (d)

    Mixed economy

  12. Say’s law stressed the operation of________ in the economy

    (a)

    Induced price mechanism

    (b)

    Automatic price mechanism

    (c)

    Induced demand

    (d)

    Induced investment

  13. Find the author of book, “The General Theory of Employment, Interest and Money” published in 1936.

    (a)

    David Ricardo

    (b)

    J. S. Mill

    (c)

    J. M. Keynes

    (d)

    J. B. Say

  14. In the classical model:

    (a)

    flexible markets will keep the economy at a full-employment level of spending and output

    (b)

    both households’ saving activity and firms’ investment activity are quite sensitive to changes in the interest rate.

    (c)

    adjustments in the interest rates quickly correct any imbalances between saving and investment

    (d)

    all of the above

  15. Match the correct codes

    1 Modern technology being capital intensive requires slanderousness contributes to technological unemployment. i Technical Unemployment
    2 Due to drastic change in the structure of the societ ii StructuralUnemployment
    3. Occurs when more people are than what is actually required iii Seasonal Unemployment
    4. ice cream industry, holiday resorts etc iv Disguised unemployment
    (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)

  16. 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

  17. As income increases, consumption will______

    (a)

    fall

    (b)

    not change

    (c)

    fluctuate

    (d)

    increase

  18. What is the nature of the relationship between the national income and induced investment?

    (a)

    positive

    (b)

    negative

    (c)

    zero

    (d)

    infinite

  19. The slope of the consumption function is called

    (a)

    MPC

    (b)

    MPS

    (c)

    APC

    (d)

    APS

  20. Match the items in the List – I with items in List – II. Select the correct answer from the code given below:

    List - I List - II
    I. Y 1. C + IA + IP
    II. (β) 2. ΔI / ΔC
    III. K 3. 1/1 - MPC
    IV. MPS 4. ΔS / ΔY
    (a)
    I II III IV
    3 2 1 4
    (b)
    I II III IV
    2 4 1 3
    (c)
    I II III IV
    2 4 1 3
    (d)
    I II III IV
    2 3 4 1
  21. The basic distinction between M1 and M2 is with regard to

    (a)

    post office deposits

    (b)

    time deposits of banks

    (c)

    saving deposits of banks

    (d)

    currency

  22. Debit card is an example of

    (a)

    currency

    (b)

    paper currency

    (c)

    plastic money

    (d)

    money

  23. Inflation is taxation without legislation' was said by______

    (a)

    Rudi Dorbush

    (b)

    Adam smith

    (c)

    Milton Friedman

    (d)

    Alfred Marshall

  24. In the Fisher’s extended equation of exchange MI VI represents:

    (a)

    Credit money

    (b)

    Primary money

    (c)

    Both primary and credit money

    (d)

    General price level

  25. What problems are we most likely to see at which stage of the business cycle?

    (a)

    High inflation during recessions

    (b)

    High unemployment during booms

    (c)

    Low inflation during booms.

    (d)

    High unemployment during recessions

  26. A Commercial Bank is an institutions that provides services

    (a)

    Accepting deposits

    (b)

    Providing loans

    (c)

    Both a and b

    (d)

    None of the above

  27. NBFI does not have.

    (a)

    Banking license

    (b)

    government approval

    (c)

    Money market approval

    (d)

    Finance ministry approval

  28. The modern banks create deposits in ________ways

    (a)

    1

    (b)

    2

    (c)

    3

    (d)

    4

  29. Identify the odd one.

    (a)

    Bank of Imperial (1921)

    (b)

    Bank of Bengal (1809)

    (c)

    Bank of Bombay (1840)

    (d)

    Bank of Madras (1843)

  30. Which of the following is not a scheme of Electronic Banking?

    (a)

    debit cards

    (b)

    demand draft

    (c)

    credit cards

    (d)

    Internet banking.

  31. Components of balance of payments of a country includes

    (a)

    Current account

    (b)

    Official account

    (c)

    Capital account

    (d)

    All of above

  32. Which of the following is not an example of foreign direct investment?

    (a)

    the construction of a new auto assembly plant overseas

    (b)

    the acquisition of an existing steel mill overseas

    (c)

    the purchase of bonds or stock issued by a textile company overseas

    (d)

    the creation of a wholly owned business firm overseas

  33. If the international terms of trade settle at a level that is between each country’s opportunity cost

    (a)

    There is no basis for gainful trade for either country

    (b)

    Both countries gain from trade

    (c)

    Only one country gains from trade

    (d)

    One country gains and the other country loses from trade

  34. The comparative advantage model of Ricardo was based on

    (a)

    intraindustry specialization and trade

    (b)

    interindustry specialization and trade

    (c)

    demand conditions underlying specialization and trade

    (d)

    income conditions underlying specialization and trade

  35. Match the correct codes

    1 Mercantilism i Takes an usversus- them
    view of trade
    2 Free Trade theories ii Absolute Advantage
    3 Free Trade refined iii David Ricardo
    4 Comparative Advantage iv Heckscher - Ohlin
    (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)

  36. The first ministerial meeting ofWTO was held at

    (a)

    Singapore

    (b)

    Geneva

    (c)

    Seattle

    (d)

    Doha

  37. Which of the following is not the member of SAARC?

    (a)

    Pakistan

    (b)

    Sri Lanka

    (c)

    Bhutan

    (d)

    China

  38. Expand the term GATT

    (a)

    General Agreement on Tariff and Trade

    (b)

    Joint Agreement on Tariff and Trade

    (c)

    General Arrangement on Tariff and Trade

    (d)

    General Agreement on Travel and Trade

  39. Why Was the SDR Created?

    (a)

    To assist developed nations

    (b)

    To improve FOREX imbalances

    (c)

    To be the World Reserve Currency

    (d)

    none of the above

  40. Expand the term TRIPs

    (a)

    Tradition Related Intellectual Procedural Rights

    (b)

    Trade Related Intellectual Property Rights

    (c)

    Tourism Related Intellectual Procedural Rights

    (d)

    Travel Related Intellectual Property Rights

  41. The tax possesses the following characteristics

    (a)

    Compulsory

    (b)

    No quid pro quo

    (c)

    Failure to pay is offence

    (d)

    All the above

  42. Which of the following is not a tax under Union list?

    (a)

    Personal Income Tax

    (b)

    Corporation Tax

    (c)

    Agricultural Income Tax

    (d)

    Excise duty

  43. The Union List consists of ………….. of national importance such as Defence, Railways, Post and Telegraph, etc.

    (a)

    22 subjects

    (b)

    100 subjects

    (c)

    3 subjects

    (d)

    200 subjects

  44. Find the correct answer.

    Finance Commission Formed in
    I. Twelfth 2002
    II. Thirteenth 2013
    III. Fourteenth 2007
    IV. Fifteenth 2017
    (a)

    All are correct

    (b)

    I and II are incorrect

    (c)

    II and III are incorrect

    (d)

    III and IV are only correct

  45. Match the correct codes

    1 Revenue Deficit (RD) i Fiscal deficit (PD) - Interest Payment (IP)
    2 Budget Deficit ii Total Revenue Expenditure (RE) - Total Revenue Receipts (RR),
    3 Fiscal deficit (FD) iii Total Expenditure – Total Revenue
    4 Primary Deficit (PD) iv Budget deficit + Government’s market borrowings and liabilities
    (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)

  46. Who developed Material Balance Models?

    (a)

    Thomas and Picardy

    (b)

    AlenKneese and R.Y. Ayres

    (c)

    Joan Robinson and J.M. Keynes

    (d)

    Joseph Stiglitz and Edward Chamberiin'

  47. The process of nutrient enrichment is termed as

    (a)

    Eutrophication

    (b)

    Limiting nutrients

    (c)

    Enrichment

    (d)

    Schistosomiasis

  48. "What goes in must come out" This is known as

    (a)

    Eco system

    (b)

    Material balance Approach

    (c)

    Material balance model

    (d)

    Material balance principle

  49. Find the odd one in the context green house effect.

    (a)

    Oxygen

    (b)

    Carbon dioxide

    (c)

    methane

    (d)

    Chlorofluoro Carbon

  50. Assertion (A): Wastes contain harmful chemicals and toxins which make the water poisonous for aquatic animals and plants.
    Reason (R): Sewage, garbage, and liquid waste of households, agricultural runoff, and effluents from factories are discharged into lakes and rivers.

    (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.

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

    (a)

    Traditional approach

    (b)

    New welfare oriented approach

    (c)

    Industrial approach

    (d)

    None of the above

  52. Which among the following is a characteristic of underdevelopment?

    (a)

    Vicious circle of poverty

    (b)

    Rising mass consumption

    (c)

    Growth of Industries

    (d)

    High rate of urbanization

  53. Which is not the characteristics of UDCs?

    (a)

    Low per capita

    (b)

    Wide in equality

    (c)

    High rate of unemployment

    (d)

    Price mechanism

  54. The aim of Seventh five year plan

    (a)

    agricultural growth in food grains production

    (b)

    increasing employment opportunities

    (c)

    raising productivity in all sectors

    (d)

    all the above

  55. Most mixed or capitalist developing countries are limited to an indicative plan, which indicates expectations, aspirations, and intentions

    (a)

    but falls short of authorization

    (b)

    with immediate implementation

    (c)

    of the central bank

    (d)

    of implementation through foreign aid.

  56. The word 'statistics' is used as _______

    (a)

    Singular.

    (b)

    Plural

    (c)

    Singular and Plural.

    (d)

    None of above

  57. A measure of the strength of the linear relationship that exists between two variables is called:

    (a)

    Slope

    (b)

    Intercept

    (c)

    Correlation coefficient

    (d)

    Regression equation

  58. ___________ 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

  59. In order to test the efficiency of a new drug or to compare the efficiency of two drugs or two medicines, __________ for the two samples is used.

    (a)

    F-test

    (b)

    Z - test

    (c)

    Large test

    (d)

    t - test

  60. Find an example of Statistics Regression.

    (a)

    Yi = β0 + β1Xi

    (b)

    Yi = β0 + β1Xi+ Ui

    (c)

    Xi = β0 + β1Xi+ Ui

    (d)

    Yo = β0 + β1Xi+ Uo

  61. Part - B

    35 x 2 = 70
  62. Define the term ‘Inflation

  63. Who is the controll authority of socialistic economy?

  64. What is Business Cycle?

  65. What is Economic Policies?

  66. Expand the given equation :Y = C + I + G + (X-M).

  67. Define National Income.

  68. Write the formula for calculating Market Price and factor cost

  69. Mention the examples of factor costs

  70. Define full employment.

  71. Give reasons for labour retrenchment at present situation

  72. What is Technical Unemployment?

  73. Write any two Criticisms of Say’s Law.

  74. Draw the diagram of effective demand

  75. What do you mean by propensity to save?

  76. Write the definition of “Leverage Effect”.

  77. Explain how the following two equations can both be true: Multiplierk = 1/MPS Multiplier k = 1/1-MPC.

  78. What is gold standard?

  79. What is Reserve deposit Ratio (RDR)?

  80. State the Fiscal Measures for Inflation.

  81. What is rationing of credit?

  82. What are the two credit measures of RBI?

  83. Mention few major functions of RBI.

  84. What is the main difference between Adam Smith and Ricardo with regard to the emergence of foreign trade?

  85. List the assumption of Adam smith trade theory.

  86. Who are the founding fathers of Brettenwoods twin?

  87. Define public finance.

  88. Define – “Escheats”.

  89. Specify the meaning of seed ball.

  90. What are the types of water pollution?

  91. Distinguish between economic growth and development

  92. What is perspective plan?

  93. List the NITI Aayog’s seven pillars of effective governs.

  94. What are the kinds of data?

  95. Define Regression.

  96. What is the important Disadvantages of Scatter diagram method?

  97. Part - C

    25 x 3 = 75
  98. Describe the different types of economic systems.

  99. Describe the three models of circular flow of income.

  100. What is the solution to the problem of double counting in the estimation of national
    income?

  101. What are the items should not be included while estimating national income through income method?

  102. Explain about aggregate supply with the help of diagram.

  103. Write the criticism of Say's Law.

  104. State the propositions of Keynes’s Psychological Law of Consumption

  105. Draw the diagram of induced investment and autonomous investment.

  106. Write a note on metallic money

  107. What is money? Explain the three functions that money performs. Which one is the primary function of money?

  108. What are the functions of NABARD?

  109. Differentiate CRR and SLR.

  110. What are import quotas?

  111. List the “Role of a state” according to mercantilists?

  112. Mention the difference between FDI and FII

  113. State briefly the functions of SAARC.

  114. Explain the achievements of WTO.

  115. Mention any three similarities between public finance and private finance.

  116. Comparison between the direct and indirect taxes. (or)
    Differentiate between the direct and indirect taxes.

  117. Brief the linkage between economy and environment.

  118. Explain the Types of Land Pollution.

  119. How would you break the vicious circle of poverty?

  120. List out the types of Planning.

  121. State and explain the different kinds of Correlation

  122. What are the divisions of NSSO?

  123. Part - D

    10 x 5 = 50
  124. Explain the four sector model of economy with chart.

  125. Discuss the method measuring the National Income by Income Method.

  126. Draw the diagram ADF.

  127. What are the differences between MEC and MEI.

  128. Explain Multiplier with help of suitable diagram.

  129. What are the objectives of ARDC? Explain

  130. Explain the causes for Balance of Payment Disequilibrium

  131. numerate the factors are taken into account while preparing the budget

  132. Draw the 7 pillars of NITI Aayog

  133. Compare and contrast primary and secondary data.

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