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Important Questions Part-VII

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. Who is regarded as Father of Modern Macro Economics

    (a)

    Adam Smith

    (b)

    J M Keynes

    (c)

    Ragnar Frisch

    (d)

    Karl Marx

  2. The country following Capitalism is ________________

    (a)

    Russia

    (b)

    America

    (c)

    India

    (d)

    China

  3. Father of socialism _________.

    (a)

    Adamsmith

    (b)

    J.M. Keynes

    (c)

    Karl Marx

    (d)

    J.R. Hicks

  4. Identify the stock variable.

    (a)

    Wealth

    (b)

    Income

    (c)

    Foreign exchange

    (d)

    Money

  5. The government may impose industrial safety regulations and occupational licensing requirements in which of the following economic systems?

    (a)

    laissez-faire economy

    (b)

    laissez-faire economy

    (c)

    mixed market economy

    (d)

    macroeconomic system

  6. __________ is deducted from gross value to get the net value

    (a)

    Income

    (b)

    Depreciation

    (c)

    Expenditure

    (d)

    Value of final goods

  7. When net factor income from abroad is deducted from NNP, the net value is__________

    (a)

    Gross National Product

    (b)

    Disposable Income

    (c)

    Net Domestic Product

    (d)

    Personal Income

  8. National income per person is used as an indicator of________.

    (a)

    standard ofliving of people

    (b)

    poverty of the people

    (c)

    the richness of people

    (d)

    growth of industrialisation

  9. __________ employ factors of production to produce the goods and services.

    (a)

    Consumer

    (b)

    Business sectors

    (c)

    House holds

    (d)

    Farmers

  10. Find the incorrect one in the context of Income from illegal activities

    (a)

    gambling

    (b)

    arbitration

    (c)

    smuggling

    (d)

    illicit extraction of liquor

  11. Every able bodied person who is willing to work at the prevailing wage rate is employed called as ___________

    (a)

    Full employment

    (b)

    Under employment

    (c)

    Unemployment

    (d)

    Employment opportunity

  12. According to classical theory, rate of interest is a reward for __________

    (a)

    Investment

    (b)

    Demand

    (c)

    Capital

    (d)

    Saving

  13. ________________ started functioning from 1st July 1963.

    (a)

    ARDC

    (b)

    IMF

    (c)

    RBI

    (d)

    SBI

  14. __________can be cured by public investment or expansionary monetary policy.

    (a)

    Frictional unemployment

    (b)

    Structural unemployment

    (c)

    Cyclical unemployment

    (d)

    educational unemployment

  15. Thalib lost his job during the last recession. What type of unemployment is he experiencing?

    (a)

    frictional unemployment

    (b)

    structural unemployment

    (c)

    cyclical unemployment

    (d)

    natural unemployment

  16. As national income increases

    (a)

    The APC falls and gets nearer in value to the MPC

    (b)

    The APC increases and diverges in value from the MPC.

    (c)

    The APC stays constant

    (d)

    The APC always approaches infinity

  17. The multiplier tells us how much __________ changes after a shift in _____

    (a)

    Consumption , income

    (b)

    investment, output

    (c)

    savings, investment

    (d)

    output, aggregate demand

  18. Who is the proponent of the following statement? “The community with more equal distribution of income tends to have high propensity to consume.”

    (a)

    Keynes

    (b)

    V.K.R.V. Rao

    (c)

    Hicks

    (d)

    Say

  19. Ratio of consumption expenditure to any particular level of income

    (a)

    MPS

    (b)

    APS

    (c)

    APC

    (d)

    MPC

  20. Keynes assumed the presence of _____ economy for the fundamental law of consumption.

    (a)

    Capitalistic

    (b)

    Socialistic

    (c)

    Planned

    (d)

    None of the above

  21. MV stands for

    (a)

    demand for money

    (b)

    supply of legal tender money

    (c)

    Supply of bank money

    (d)

    Total supply of money

  22. “Money can be anything that is generally acceptable as a means of exchange and that thesame time acts as a measure and a store of value”, This definition was given by

    (a)

    Crowther

    (b)

    A.C.Pigou

    (c)

    F.A.Walker

    (d)

    Francis Bacon

  23. Identify anexample of digital currency.

    (a)

    crypto currencies

    (b)

    ATM

    (c)

    Legal Tender Money

    (d)

    None of the above

  24. Assertion (A): When the disposable income of the people increases, it raises their demand for goods and services.
    Reason (R): Disposable income may increase with the rise in national income or reduction in taxes or reduction in the saving of the people.

    (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.

  25. The development of money as a medium of exchange has facilitated the expansion of trade because

    (a)

    Holding money increases people's income

    (b)

    No other mediums of exchange are available

    (c)

    Money eliminates the "double coincidence of wants" problem

    (d)

    Holding money increases people's wealth

  26. Online Banking is also known as.

    (a)

    E-Banking

    (b)

    Internet Banking

    (c)

    RTGS

    (d)

    NEFT

  27. Expansions of ATM

    (a)

    Automated Teller Machine

    (b)

    Adjustment Teller Machine

    (c)

    Automatic Teller mechanism

    (d)

    Any Time Money

  28. _____ and _____ are the frequently used tools with which the RBI can control the availability and the supply of money in the economy.

    (a)

    The Repo Rate and the Reverse Repo Rate

    (b)

    CRR, SLR

    (c)

    Moral Suasion, Credit Ceiling

    (d)

    The Reverse Repo Rate, The Repo Rate

  29. Expand SIDC

    (a)

    State Industrial Development Company

    (b)

    Small Industrial Development Corporation

    (c)

    State Investment Development Corporation

    (d)

    State Industrial Development Corporation

  30. Assertion (A): The power of commercial bank to create deposits through expanding their loans and advances is known as credit creation.
    Reason (R): Banks have the power to expand or contract demand deposits and they exercise this power through granting more or less loans and advances and acquiring other assets.

    (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.

  31. If there is an imbalance in the trade balance (more imports than exports), it can be reduced by

    (a)

    decreasing customs duties

    (b)

    increasing export duties

    (c)

    stimulating exports

    (d)

    stimulating imports

  32. Benefits ofFDI include, theoretically

    (a)

    Boost in Economic Growth

    (b)

    Increase in the import and export of goods and services

    (c)

    Increased employment and skill levels

    (d)

    All of these

  33. Mercantilism

    (a)

    Is the philosophy of free international trade

    (b)

    Was a system of export promotion and barriers to imports practiced by governments

    (c)

    Was praised by Adam Smith in The Wealth of Nations

    (d)

    Both (a) and (c)

  34. Suppose a doctor from England is invited to diagnose the health status of a VIP in our State. The fees which we pay to the doctor are entered in to which account of the BOPs Account?

    (a)

    The current account

    (b)

    The capital account

    (c)

    State account of expenses

    (d)

    The official settlements account or official reserve assets account

  35. Match the correct codes

    1 Monetary measures i Import Duties
    2 Export Promotion ii Foreign Loans
    3 Import Control iii Abolition / reduction of duties
    4 Miscellaneous Measures iv Monetary Contraction / Expansion
    (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. International Monetary Fund was an outcome of

    (a)

    Pandung Conference

    (b)

    Dunkel Draft

    (c)

    Bretton Woods Conference

    (d)

    Doha Conference

  37. The Tenth BRICS Summit was held in July 2018 at

    (a)

    Beijing

    (b)

    Moscow

    (c)

    Johannesburg

    (d)

    Brasilia

  38. World Bank is otherwise called ______.

    (a)

    ASEAN

    (b)

    IBRD

    (c)

    International finance

    (d)

    SAARC

  39. Who issues the Special Drawing Rights (SDR) in the following?

    (a)

    World Bank

    (b)

    World Trade Organization

    (c)

    Asian Development Bank

    (d)

    International Monetary Fund

  40. Assertion (A): SDRs act both as an international unit of account and a means of payment.
    Reason (R): SDRs are used as a means of payment by Fund members to meet balance of payments deficits and their total reserve position with the Fund.v

    (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.

  41. 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

  42. The primary purpose of deficit financing is

    (a)

    Economic development

    (b)

    Economic stability

    (c)

    Economic equality

    (d)

    Employment generation

  43. The interest payment of the central government has increased from Rs. 21,500 crores in …………to Rs.5, 75,794 crores in………….?

    (a)

    1950-51 and 2018-19

    (b)

    2000-01 and 2018-19

    (c)

    1990-91 and 2018-19

    (d)

    1960-61 and 2018-19

  44. Direct taxes satisfy the canon of ……….?

    (a)

    efficiency

    (b)

    economy

    (c)

    elasticity

    (d)

    equity

  45. Find the correct answer.

    Head Duration
    C. Rangarajan 2005–10
    Dr. Vijay L. Kelkar 2020–25
    Dr. Y. V Reddy 2015–20
    N. K. Singh 2010–15
    (a)

    All are incorrect

    (b)

    I and II are incorrect

    (c)

    II and III are incorrect

    (d)

    II and IV are incorrect

  46. Global warming also refers to as

    (a)

    Ecological change

    (b)

    Climate Change

    (c)

    Atmosphere change

    (d)

    None of the above

  47. Primary cause of Soil pollution is ________

    (a)

    Pest control measures

    (b)

    Land reclamation

    (c)

    Agricultural runoff

    (d)

    Chemical fertilizer

  48. _________________ considers the total economic process as a physically balanced flow between inputs and outputs.

    (a)

    Material Balance Model

    (b)

    Material Equality Model

    (c)

    Material Environmental Model

    (d)

    Material atmospheric Model

  49. Pure public goods pose a ________________?

    (a)

    free-rider problem

    (b)

    environment tax

    (c)

    environment fee

    (d)

    none of the above

  50. Which of the following conditions indicate the impact of global warming?
    1. Melting of glaciers
    2. Lowering down of sea level
    3. Changes in weather conditions
    4. Rise in global temperature
    Select the correct answer from the codes given below:
    Codes:

    (a)

    1 and 2

    (b)

    1,2 and 3

    (c)

    1, 3 and 4

    (d)

    1,4

  51. The basic philosophy behind long-term planning is to bring _______changes in the economy?

    (a)

    Financial

    (b)

    Agricultural

    (c)

    Industrial

    (d)

    Structural

  52. Sarvodaya Plan was advocated by__________

    (a)

    Mahatma Gandhi

    (b)

    J.P.Narayan

    (c)

    S.N Agarwal 

    (d)

    M.N. Roy

  53. The first Five Year Plan of India was launched in

    (a)

    1947

    (b)

    1951

    (c)

    1956 .

    (d)

    1961

  54. There will be ______ planning in acapitalist economy

    (a)

    rural

    (b)

    urban

    (c)

    total

    (d)

    partial

  55. The concept "development" refers to the _____________ changes towards betterment.

    (a)

    systematic

    (b)

    seasonal

    (c)

    structural

    (d)

    functional

  56. 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

  57. In the regression equation \(X={ \beta }_{ 0 }+{ \beta }_{ 1 }{ X }_{ , }\) the X is called:

    (a)

    Independent varia

    (b)

    Dependent variable

    (c)

    Continuous variable

    (d)

    None of the above

  58. Ronald Fisher is known as __________?

    (a)

    Father of statistics

    (b)

    Father of Mathematical economics

    (c)

    Father of econometrics

    (d)

    Father of Applied Economics

  59. When the correlation coefficient, r, is close to one:

    (a)

    there is no relationship between the two variables

    (b)

    there is a strong linear relationship between the two variables

    (c)

    it is impossible to tell if there is a relationship between the two variables

    (d)

    the slope of the regression line will be close to one

  60. The branch of economics wherein mathematics and statistics are used to measure and analyze economics activities is called _________.

    (a)

    Applied Economics

    (b)

    Econometrics

    (c)

    Statistics

    (d)

    Macro Economics

  61. Part - B

    35 x 2 = 70
  62. Classify the economies based on status of development

  63. Draw the diagram for Circular flow of income in a Two-sector economy

  64. Write a note on Central Planning?

  65. Mention any two limitations of macroeconomics

  66. Mention the any three Capitalist Learning economies

  67. What do you mean by the term ‘Personal Income’?

  68. Mention the factors included in PQLI

  69. Mention any two statistical problems as Difficulties in Measuring National Income

  70. Define full employment.

  71. What are the components of aggregate supply ?

  72. What is Technical Unemployment?

  73. Mention few names of Classical theor

  74. What is Aggregate supply?

  75. Define Accelerator

  76. What are positive and negative multipliers?

  77. What is a static multiplier?

  78. What is plastic money? Give example.

  79. Define paper currency.

  80. What is Currency Deposit Ratio (CDR)?

  81. What is credit creation?

  82. What are the two credit measures of RBI?

  83. List any two of concessions RBI to RRBs.

  84. State any two merits of trade.

  85. What is Favourable BoP?

  86. Why was the SDR created?

  87. Define public finance.

  88. List the sources of external public debt of India

  89. Define Global warming.

  90. What are the dimensions of sustainable development?

  91. What is GNP?

  92. What is short term planning?

  93. What is the key difference between comprehensive and partial plan?

  94. What is Statistics?

  95. What are the kinds of Statistics?

  96. List the major differences between Descriptive Statistics and Inferential Statistics

  97. Part - C

    25 x 3 = 75
  98. Indicate the demerits of socialism

  99. What are the demerits of mixed economy?

  100. Give short note on Expenditure method

  101. Compare and contrast different measures of GDP calculations

  102. Write short note on the implications of Say’s law.

  103. Write a note of John Maynard Keynes

  104. State the concept of super multiplier

  105. State Duesenberry hypothesis.

  106. What is money supply?

  107. What are the Contingent Functions?

  108. What are the functions of NABARD?

  109. Discuss the Primary Functions.

  110. Compare the Classical Theory of international trade with Modern Theory of International trade.

  111. List out the limitations of Modern Theory of International Trade?

  112. List the assumption of Comparative advantage theory of international trade.

  113. What is Multilateral Agreement?

  114. Explain the “General Agreement on Trade in Services (GATS)”

  115. What is primary deficit?

  116. What are external public debt?

  117. Write a note on
    a) Climate change and
    b) Acid rain

  118. Explain the Types of Land Pollution.

  119. Distinguish between functional and structural planning.

  120. Write short note on second five year plan

  121. Specify the objectives of econometrics.

  122. How an econometric model is done?

  123. Part - D

    10 x 5 = 50
  124. Discuss the features of Capitalist economy

  125. Consider the following are the only transactions take place in an economy:
    (i) Industry A imports goods worth Rs. 100. It sells goods worth Rs. 400 to industry B, 'goods worth Rs. 200 to industry C, and goods worth Rs. 1,000 for private consumption.
    (ii) Industry B sells goods worth Rs. 500 to industry C and goods worth Rs. 800 for private consumption.
    (iii) Industry C sells goods worth Rs. 600 to private consumption. and exports goods ,valUed at Rs. 500.
    (iv) Depreciation cost during the year amounts to Rs. 100,
    (v) Government realises taxes of the value of Rs. 100. Calculate the following with the help of net value added method from the data given above (a) GNPMP (b) GNPFC (c) NNPMP and (d) NNPFC

  126. Draw the diagram ADF.

  127. Illustrate the working of Multiplier

  128. Derive the value of the multiplier assuming the basic form of the consumption function as C = a + bY where "a" is autonomous consumption and "b" is the marginal propensity to consume. You may assume a two-sector economy.

  129. Explain the chain of events that results from an expansionary monetary policy.

  130. Compare and contrast fixed and flexible exchange rates.

  131. Distinguish between Balanced and Unbalanced Budget

  132. Elucidate various measures of economic development.

  133. Calculate Karl Pearson’s Coefficient of correlation from the following data and interpret its value:
    Example 1
    Calculate Karl pearson's Cofficient of correlation form the followng data and interpret its value:

    Price:X 10 12 14 15 19
    Supply:Y 40 41 48 60 50

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