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12th Standard Economics Theories of Employment and Income English Medium Free Online Test One Mark Questions 2020 - 2021

12th Standard

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Economics

Time : 00:20:00 Hrs
Total Marks : 20

    Answer all the questions

    20 x 1 = 20
  1. 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

  2. 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

  3. Keynes theory emphasized on________ equilibrium

    (a)

    Very short run

    (b)

    Short run

    (c)

    Very long run

    (d)

    Long run

  4. Every able bodied person who is willing to work at the prevailing wage rate but not employed is called _____________

    (a)

    Full employment

    (b)

    Under employment

    (c)

    Unemployment

    (d)

    Employment opportunity

  5. Rate of interest is a stock

    (a)

    Socialism

    (b)

    Keynesianism

    (c)

    Classicism

    (d)

    All the above

  6. A person receives his income from ______________

    (a)

    production

    (b)

    purchase

    (c)

    sales

    (d)

    None of the above

  7. Keynes theory of employment and income is the principle of _____________

    (a)

    long run

    (b)

    short run

    (c)

    capital

    (d)

    production

  8. Say's law of market is the core of the __________ theory of employment.

    (a)

    classical

    (b)

    economical

    (c)

    environmental

    (d)

    proportional

  9. ______________ 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

  10. ________________ started functioning from 1st July 1963.

    (a)

    ARDC

    (b)

    IMF

    (c)

    RBI

    (d)

    SBI

  11. Assertion (A) The concept of full employment generally refers to full employment of labour force of a country
    Reason (R) Every economy in the world aims at attaining the level of full employment equilibrium where all its available resources are fully and efficiently employed to achieve maximum level of output

    (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. Find the unsuitable example for Seasonal unemployment

    (a)

    ice cream industry

    (b)

    doctors

    (c)

    farmers

    (d)

    farmers

  13. What is considered as the starting point of Keynes theory of employment and income?

    (a)

    The principle of effective demand

    (b)

    The principle of effective supply

    (c)

    The principle of effective equilibrium

    (d)

    Say’s Market Law

  14. Which of the following is not an obstacle to full employment in classical theory?

    (a)

    Excess of saving over investment

    (b)

    Liquidity trap

    (c)

    Price rigidity

    (d)

    Wage Flexibility

  15. In classical system which of the following keeps the economy at full employment

    (a)

    Level of saving

    (b)

    Increase in money supply

    (c)

    Adjustment in investment

    (d)

    Adjustment in money wages

  16. In the Keynesian two sector economy, AD<AS, then

    (a)

    S=I

    (b)

    S>I

    (c)

    S<I

    (d)

    S=0

  17. Which of the following are true of disguised unemployment?
    I. It represents potential savings.
    II. The marginal productivity of labour is zero or extremely low.
    III. It is due to the existence of joint family system.
    IV. It is confined to the rural areas.

    (a)

    II and IV

    (b)

    III and IV

    (c)

    I, II and III

    (d)

    I, II, III and IV

  18. 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

  19. Assertion (A) : The slope of the aggregate supply curve depends on the relation between the employment and productivity.
    Reason (R) :The capital stock is often fixed and hence the law of diminishing marginal returns takes place as more workers are employed.

    (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

  20. 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

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