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Introduction to Macro Economics One Marks

12th Standard EM

    Reg.No. :
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Economics

Choose The Correct Answer:
Time : 01:00:00 Hrs
Total Marks : 20
    Part-A
    20 x 1 = 20
  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 coined the word ‘Macro’?

    (a)

    Adam Smith

    (b)

    J M Keynes

    (c)

    Ragnar Frisch

    (d)

    Karl Marx

  3. A steady increase in general price level is termed as_____________.

    (a)

    wholesale price index

    (b)

    Business Cycle

    (c)

    Inflation

    (d)

    National Income

  4. Identify the necessity of Economic policies

    (a)

    to solve the basic problems

    (b)

    to overcome the obstacles

    (c)

    to achieve growth

    (d)

    all the above

  5. Identify the economic system where only private ownership of production exists

    (a)

    Capitalistic Economy

    (b)

    Socialistic Economy

    (c)

    Globalisic Economy

    (d)

    Mixed Economy

  6. Economic system representing equality in distribution is _________.

    (a)

    Capitalism

    (b)

    Globalism

    (c)

    Mixedism

    (d)

    Socialism

  7. Who is referred as ‘Father of Capitalism’?

    (a)

    Adam Smith

    (b)

    Karl Marx

    (c)

    Thackeray

    (d)

    J M Keynes

  8. The country following Capitalism is ________________

    (a)

    Russia

    (b)

    America

    (c)

    India

    (d)

    China

  9. Identify The Father of Socialism

    (a)

    J M Keynes

    (b)

    Karl Marx

    (c)

    Adam Smith

    (d)

    Samuelson

  10. Identify the sectors of a Two Sector Model.

    (a)

    Households and Firms

    (b)

    Private and Public

    (c)

    Internal and External

    (d)

    Firms and Government

  11. Planned economy is also known as _________.

    (a)

    Capitalist Economy

    (b)

    Socialist Economy

    (c)

    Mixed Economy

    (d)

    All the above

  12. Market forces are _________.

    (a)

    Supply and price

    (b)

    Demand and price

    (c)

    Prices of commodity

    (d)

    Supply and demand

  13. In addition to household and firms, inclusion of the government sector make this model a ________ model.

    (a)

    Single sector model

    (b)

    Two sector model

    (c)

    Three sector model

    (d)

    Four sector model

  14. Assertion (A): Each individual and organization produce only those goods which ensure high profit.
    Reason (R): Profit is the driving force behind all economic activities in a capitalistic 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)

    (A) is false, but (R) is true

  15. Find the odd one out

    (a)

    C + I

    (b)

    C + I + G + (X – M)

    (c)

    C + I + G

    (d)

    (X – M)

  16. Which of the following statements regarding the circular-flow diagram is true?

    (a)

    If Vijay works for XYZ Solutions Ltd. and receives a salary payment, the transaction takes place in the market for goods and services.

    (b)

    If Vijay works for XYZ Solutions Ltd. and receives a salary payment, the transaction takes place in the market for goods and services.

    (c)

    None of these answers

    (d)

    The factors of production are owned by households.

  17. Which of the following could not be considered a major economic system?

    (a)

    capitalism.

    (b)

    communism.

    (c)

    socialism.

    (d)

    secularism.

  18. Unlike a market economy, a command economy uses

    (a)

    more centralized planning in economic decision making

    (b)

    consumer sovereignty to make production decisions

    (c)

    its resources more efficiently

    (d)

    price signals in economic decision making

  19. For an economy consisting of households and businesses only, which of the following is consistent with the circular flow of income and production?

    (a)

    Households are producers of goods and services and consumers of resources

    (b)

    Households are users of resources, and businesses are sources of saving

    (c)

    Households are suppliers of resources and consumers of goods and services

    (d)

    Businesses are users of taxes, and households are sources of taxes.

  20. Match the correct codes

    1. Wages, dividends, interest, profits and rent - i Towards
    Government
    2. Purchases of goods and Service - ii Towards `households
    3. Taxes - iii Towards firm
    4. Social Transfer - iv Towards house hold
    (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)

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