#### Important Questions Part-III

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)

(b)

J M Keynes

(c)

Ragnar Frisch

(d)

Karl Marx

2. An economy consists of

(a)

consumption sector

(b)

Production sector

(c)

Government sector

(d)

All the above

3. The subject Economics is classified into two branches, namely,

(a)

Micro Economics and Minor Economics

(b)

Micro Economics and Macro Economics

(c)

Positive and Normative economics

(d)

Deductive and inductive economics

4. Identify which is not an example of capitalistic economy.

(a)

The USA economy

(b)

Germany economy

(c)

Indian economy

(d)

Australia economy

5. In a free-market economy the allocation of resources is determined by:

(a)

(b)

A central planning authority

(c)

By consumer preferences

(d)

The level of profits of firms

6. National income is a measure of the__________ performance of an economy

(a)

Industrial

(b)

Agricultural

(c)

Economic

(d)

Consumption

7. The financial year in India is__________

(a)

April 1 to March 31

(b)

March 1 to April 30

(c)

March 1 to March 16

(d)

January 1 to December 31

8. Inventories of finished and unfinished goods are called _________.

(a)

Net Investment

(b)

Investment

(c)

Gross Investment

(d)

Botha' and 'b'

9. Transfer earnings is referred to ______.

(a)

Pension payments to retired persons

(b)

Income paid as rent to landlord

(c)

An interest payments to a capitalist

(d)

Medical payments made to an employee of a company

10. (i) Firms, (ii) Households, (iii) Government, (iv) Rest of the world and
(v) Capital sector. are diffe rent elements of ………………?

(a)

social accounting method

(b)

private accounting method

(c)

public accounting method

(d)

social accounting model

11. ________ theory is a turning point in the development of modern economic theory.

(a)

Keynes’

(b)

Say’s

(c)

Classical

(d)

Employmen

12. 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

13. ______________ returns takes place as more workers are employed.

(a)

Law of diminishing marginal

(b)

Law of equi demand

(c)

Law of demand

(d)

None of the above

14. Assertion (A) :In developing countries like India, the nature of unemployment is different from that of developed countries.
Reason (R) :In developed countries, the unemployment is purely temporary or cyclical or frictional

(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

15. Unemployment means that

(a)

People are not willing to work at the going wage rate

(b)

At the going wage rate, there are people who want to work but cannot find work.

(c)

There are some people who will not work at the going wage rate

(d)

There is excess demand in the labour market

16. The MPC is equal to :

(a)

Total spending / total consumption

(b)

Total consumption/total income

(c)

Change in consumption /change in income

(d)

none of the above

17. The sum of the MPC and MPS is___________

(a)

1

(b)

2

(c)

0.1

(d)

1.1

18. K=1/MPS= ____________

(a)

$\frac{ΔP}{ΔQ}$

(b)

$\frac{C}{4}\times\frac{ΔP}{ΔQ}$

(c)

Value of multiplier

(d)

Value of accelerator

19. _____ is also known as ‘sequence multiplier’. In real life, income level does not increase instantly with investment.

(a)

Dynamic multiplier

(b)

Super multiplier

(c)

Static multiplier

(d)

Government multiplier

20. Which of the following is not correct:

(a)

MPC declines as income increase

(b)

MPC is positive but less than one

(c)

MPS is always positive

(d)

All 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. During depression the level of economic activity becomes extremely

(a)

high

(b)

(c)

low

(d)

good

23. Barter system was introduced by________

(a)

Mesopetamia tribes

(b)

Babylonian's

(c)

Both 'a' and 'b'

(d)

None of the above

24. Assertion (A): Reduced capital accumulation may discourage entrepreneurs and business men from taking business risk. Reason (R): With reduced capital accumulation, the investment will suffer a serious set-back which may have an adverse effect on the volume of production in the country.

(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. Which is not a major anti-inflationary fiscal measures: are the following

(a)

Reduction of Government Expenditure

(b)

Public Borrowing

(c)

Augmenting Foreign Investment

(d)

Enhancing taxation

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. Central bank is_____ authority of any country.

(a)

Monetary

(b)

Fiscal

(c)

Wage

(d)

National Income

28. Expand FEMA.

(a)

Factory Exchange Management Act

(b)

Foreign Exchange Management Act

(c)

Foreign Economic Management Act

(d)

Foreign Exchange Maintenance Act

29. Expand SIDC

(a)

State Industrial Development Company

(b)

Small Industrial Development Corporation

(c)

State Investment Development Corporation

(d)

State Industrial Development Corporation

30. The RBI uses three policy tools to manipulate the money supply: ______ which affect reserves and the monetary base; changes in _____, which affect reserves and the monetary base by influencing the quantity of discount loans; and changes in _____, which affect the money multiplier.

(a)

market operations; the discount rate; margin requirements

(b)

open market operations; the discount rate; reserve requirements

(c)

the discount rate; open market operations; margin requirements

(d)

the discount rate; open market operations; reserve requirements

31. In general, a primary reason why nations conduct international trade is because

(a)

Some nations prefer to produce one thing while others produce another

(b)

Resources are not equally distributed among all trading nations

(c)

Trade enhances opportunities to accumulate profits

(d)

Interest rates are not identical in all trading nations

32. Components of balance of payments of a country includes

(a)

Current account

(b)

Official account

(c)

Capital account

(d)

All of above

33. Which is of the following statement is modern theory of trade

(a)

It presents a one factor (labour) model

(b)

It attributes the differences in the comparative costs to differences in the productive efficiency of workers in the two countries

(c)

the phenomenon of international trade on the basis of labour theory of value

(d)

It presents a multi - factor (labour and capital) model

34. The earliest statement of the principle of comparative advantage is associated with

(a)

(b)

David Ricardo

(c)

Eli Heckscher

(d)

Bertil Ohlin

35. The classical trade theories of Smith and Ricardo predict that

(a)

Countries will completely specialize in the production of export goods.

(b)

Considerable trade will occur between countries with different levels of technology

(c)

Small countries could obtain all of the gains from trade when trading with large countries

(d)

All of the above.

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

(a)

Pakistan

(b)

Sri Lanka

(c)

Bhutan

(d)

China

37. The term BRIC was coined in

(a)

2001

(b)

2005

(c)

2008

(d)

2010

38. Which is latest member of IMF as 189th member

(a)

Czech Republic

(b)

Afganistan

(c)

Uruguay

(d)

Republic of Nauru

39. The name “International Bank for Reconstruction and Development” was first suggested by ………………… to the drafting committee.

(a)

China

(b)

USA

(c)

Japan

(d)

India

40. Where is the head-quarter of ASEAN located?

(a)

Bangkok

(b)

Chili

(c)

New Dehli

(d)

Shangai

41. The direct tax has the following merits except

(a)

equity

(b)

convenient

(c)

certainty

(d)

civic consciousness

42. Deficit Budget means

(a)

An excess of government's revenue over expenditure

(b)

An excess of government's current expenditure over its current revenue

(c)

An excess of government's total expenditure over its total revenue

(d)

None of above

43. Financial operation of the government  _____________

(a)

Treasury

(b)

Bills of payment

(c)

Bills of exchange

(d)

All the above

44. Find the author of following statement. “Public finance is an investigation into the nature and principles of the state revenue and expenditure”.

(a)

Ricardo

(b)

Dalton

(c)

Marshall

(d)

45. Find the meaning of following statement. “Paid by a shopkeeper or retailer, who then shifts the tax burden to customers by charging sales tax on goods and services.”

(a)

(b)

GST

(c)

Sales Tax

(d)

Revenue Tax

46. Electronic waste is commonly referred as _______

(a)

solid waste

(b)

composite waste

(c)

e-waste

(d)

hospital waste

47. Alkali soils are predominantly located in the _______ plains?

(a)

Indus-Ganga

(b)

North-Indian

(c)

Gangetic plains

(d)

All the above

48. __________ are the particles, and gases out comes during the construction and agricultural activates to affect the air.

(a)

Dust particles

(b)

Gaseous emission

(c)

Ammonia

(d)

Oxygen gas

49. _____________ is the example of. negative consumption externality.

(a)

Non-smoker

(b)

Smoker

(c)

Chain smoker

(d)

Rare-smoker

50. The alkali soils are predominantly located in the _____________

(a)

Indo-Gangetic plains

(b)

Himalayaas

(c)

Southern Peninsula

(d)

Western Ghats

51. Which of the following plan has focused on the agriculture and rural economy

(a)

People's Plan

(b)

Bombay Plan

(c)

Gandhian Plan

(d)

Vishveshwarya Plan

52. Short-term plan is also known as________

(a)

Controlling Plans

(b)

De-controlling Plans

(c)

Rolling Plans

(d)

De-rolling Plans

53. plan is made for the period of five years.

(a)

Short term plan

(b)

Long term plan

(c)

Medium term plan

(d)

Annual plan

54. Economic development refers to

(a)

economic growth

(b)

economic growth plus changes in output distribution and economic structure

(c)

improvement in the well-being of the urban population

(d)

sustainable increases in Gross National Product.

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. Who stated that statistics as a science of estimates and probabilities.

(a)

Horace Secrist.

(b)

R.A Fisher

(c)

Ya-Lun-Chou

(d)

Boddington

57. If Y = 2 - O.2X, then the value of Y intercept is equal to

(a)

-0.2

(b)

2

(c)

0.2X

(d)

All of the above

58. Who said “Econometrics is concerned with the empirical determination of economic laws”

(a)

Galton

(b)

H Theil

(c)

Fisher

(d)

Dalton

59. What is the term given for the following sequence of action?
“Economic theory, Mathematical model of the theory, Economic model of the theory, Data Estimation of econometric model, Hypothesis Testing, ,Forecasting or prediction Using the model for control or policy purpose”

(a)

Anatomy of Economic Modeling

(b)

Anatomy of Mathematical Economic Modeling

(c)

Anatomy of Econometric Modeling

(d)

None of the above

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. Define ‘Economic Model"

63. What do you mean by Socialism?

64. What are the different models of circular flow of income?

65. Mention any two limitations of macroeconomics

66. Mention the any three Socialist Learning economies.

67. Write the formula for calculating GNP

68. What is Gross Domestic Product?

69. What is Net Domestic Product?

70. What is effective demand ?

71. What are the components of aggregate supply ?

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 consume?

76. What are the “Leakages of Multiplier? Leakages of multiplier.

77. Mention any two uses of multiplier concept.

78. What is commodity money?

79. What is creeping inflation?

80. What is Recovery?

81. Define Commercial banks.

82. What is meant by Regulation of consumer's credit?

83. Write a brief note on Bank Rate Policy.

84. What do you mean by Balance of Payments?

85. How Modern theory of International Trade attributes international differences in comparative costs to?

86. What are The Three Regulatory Pillars of the “World Economic Order”?

87. Differentiate tax and fee.

88. What the term ‘fiscal economics’ means?

89. Define Global warming.

90. List the examples of Home E-Wastes.

91. Distinguish between economic growth and development

92. Mention the predominant characters of UDCs

93. What are the differences between centralized and decentralized plan?

94. What is Statistics?

95. What are the kinds of data?

96. Comment – “Statistics and Education”

97. Part - C

25 x 3 = 75
98. Distinguish between Capitalism and Globalism.

99. What are the limitation of Macro Economics.

100. Write briefly about national income and welfare

101. What are the five types of final goods and services that GNP includes?

102. What do you mean by aggregate demand ? Mention its components

103. Write the criticism of Say's Law.

104. Specify the limitations of the multiplier.

105. Write the formula for APC, MPC, APS, MPS.

106. State Cambridge equations of value of money.

107. Explain “The Keynes Equation” Keynes equation is expressed as:

108. Give a brief note on NBFI.

109. Distinguish between NEFT and RTGS

110. Explain the Net Barter Terms of Trade and Gross Barter Terms of Trade.

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

112. Mention the difference between FDI and FPI

113. Mention the various forms of economic integration.

115. Mention any three methods of redemption of public debt.

116. What is the difference between Capital Budget and Revenue Budget?

117. Brief the linkage between economy and environment.

118. Explain the types of water pollution.

119. Trace the evolution of economic planning in India.

120. Explain the concept "economic development"

121. Discuss the important statistical organizations (offices) in India.

122. State the types of correction on the basis of number of variables studied.

123. Part - D

10 x 5 = 50
124. Explain the concepts of macro economics

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

126. Comparison of Classicism and Keynesianism

127. Explain Keynes psychological law of consumption f.unction with diagram.

128. Explain Marginal propensity to consume and multiplier, with the help of a diagram.

129. Distinguish between NBFC and Other Commercial Bank.

130. Discuss the state of FDI in India.

131. What are the taxes levied and collected by the union but assigned to the states?

132. Explain non-economic factors determining development?

133. Explain the steps involved computing the correlation Coefficient.