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12th Standard English Medium Economics Reduced Syllabus Creative one Mark Question with Answerkey - 2021(Public Exam )

12th Standard

    Reg.No. :
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Economics

Time : 01:00:00 Hrs
Total Marks : 50

    Part-A

    Multiple Choice Questions(Creative)

    50 x 1 = 50
  1. Planned economy is also known as _________.

    (a)

    Capitalist Economy

    (b)

    Socialist Economy

    (c)

    Mixed Economy

    (d)

    All the above

  2. Example for Mixed Economy ________.

    (a)

    India

    (b)

    France

    (c)

    China

    (d)

    Both 'a' and 'b'

  3. Combination of both capitalism and socialism ________.

    (a)

    Capitalist Economy

    (b)

    Traditional Economy

    (c)

    Mixed Economy

    (d)

    Socialist Economy

  4. _________ sector sells the entire output to house holds.

    (a)

    Firm

    (b)

    House hold

    (c)

    Government

    (d)

    Foreign trade

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

    (a)

    Capitalistic economy

    (b)

    Socialistic economy

    (c)

    Globalistic economy

    (d)

    Mixed economy

  6. The growth and development of an economy and the factors determining them could be understood only through________

    (a)

    macro analysis

    (b)

    micro analysis

    (c)

    positive analysis

    (d)

    rational analysis

  7. Identify which is not a part of classification of economy based on Level of National Income

    (a)

    Foreign Income Economies

    (b)

    Low Income Economies

    (c)

    Middle Income Economies

    (d)

    High Income Economies

  8. What is considered as the heart of any capitalistic economy?

    (a)

    Sales mechanism

    (b)

    Price mechanism

    (c)

    Demand mechanism

    (d)

    Exchange mechanism

  9. Pick basic composition of three 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

  10. Find the odd one out

    (a)

    C + I

    (b)

    C + I + G + (X – M)

    (c)

    C + I + G

    (d)

    (X – M)

  11. Given the chart, find the missing system of economy

    (a)

    Pure Mixed

    (b)

    Capitalist Learning

    (c)

    Mixed Learning

    (d)

    Marxis

  12. Assertion (A) :The means of production in a capitalistic economy are publicly owned.
    Reason (R) :Manufacturers produce goods and services with profit motive

    (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

  13. GDP stands for

    (a)

    Gross Domestic Product

    (b)

    Gross Direct Product

    (c)

    Gross Domestic Provident

    (d)

    Gross Derived Product

  14. National Income provides a comprehensive measure of _________ activities of a nation.

    (a)

    Economic activity

    (b)

    Production activity

    (c)

    Consumption activity

    (d)

    Industrial activity

  15. Nobel laureate Smimon Kuznets introduced the first concept of _________

    (a)

    Percapita Income

    (b)

    National Income

    (c)

    Domestic Income

    (d)

    Personal Income

  16. GNP includes __________ types of final goods and services.

    (a)

    Two

    (b)

    Four

    (c)

    Five

    (d)

    Three

  17. NNP at factor cost = NNP at Market Price - ________ + Subsidies.

    (a)

    Direct taxes

    (b)

    Canons of taxes

    (c)

    Indirecttaxes

    (d)

    None of these

  18. _________ reflects the economic welfare of the country.

    (a)

    Personal Income

    (b)

    Percapita Income

    (c)

    Disposal Income

    (d)

    All of these

  19. _______ are excluded from national income.

    (a)

    Capital Gains

    (b)

    Social Accounting

    (c)

    Statistical Problems

    (d)

    None ofthese

  20. 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

  21. The total money value of final goods and services produced in the country excluding depreciation is called _________.

    (a)

    NDP

    (b)

    GDP

    (c)

    NNP

    (d)

    GNP

  22. The income method of calculating national income includes the income of the _________

    (a)

    farmers only

    (b)

    businessmen only

    (c)

    service sector only

    (d)

    factors of production

  23. In _______ method, themeasuresof GDP are calculated by adding all the expenditures made in the economy.

    (a)

    Income

    (b)

    Expenditure

    (c)

    Product

    (d)

    All the above

  24. The value of net national product will be more than the value of net domestic product, if ________.

    (a)

    imports exceed exports

    (b)

    exports exceed imports

    (c)

    exports equal imports

    (d)

    none of the above

  25. Remittances made by NRIs to India in the context of national income accounting is called as….?

    (a)

    Remittance Income

    (b)

    NRI Income

    (c)

    Factor Payments

    (d)

    All of the above

  26. The difference between the income received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by nonresidents in the domestic territory of a country is known as___________

    (a)

    Net Factor Income from Abroad

    (b)

    Capital Consumption Allowances

    (c)

    Depreciatio

    (d)

    None of these

  27. That part of personal income which is actually available to households for consumption and saving is called________

    (a)

    National Disposable Income

    (b)

    Personal Disposable Income

    (c)

    Personal Income

    (d)

    None

  28. Full employment as "that level of employment at which any further increase in spending would resort in an inflationary spiral of wages and prices" who quote this above concept.

    (a)

    J,M. Keynes

    (b)

    Lerner

    (c)

    J,B. Say

    (d)

    All the above

  29. A person receives his income from ______________

    (a)

    production

    (b)

    purchase

    (c)

    sales

    (d)

    None of the above

  30. Wages and prices are _____________

    (a)

    flexible

    (b)

    related

    (c)

    homogeneous

    (d)

    none of the above

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

    (a)

    classical

    (b)

    economical

    (c)

    environmental

    (d)

    proportional

  32. Based on Keynesianism __________ is vice.

    (a)

    Saving

    (b)

    Production

    (c)

    Consumption

    (d)

    None of these

  33. Classicism theory is based on _________ equilibrium.

    (a)

    Very short run

    (b)

    Short run

    (c)

    Long run

    (d)

    very long run

  34. In the linear consumption function C = a + bY, coefficient ‘a’ denotes

    (a)

    MPC

    (b)

    APC

    (c)

    Autonomous consumption

    (d)

    Induced consumption

  35. Which of the following is correct?

    (a)

    1+ MPS = MPC

    (b)

    1- MPC = MPS

    (c)

    MPC + MPS > 1

    (d)

    MPC + MPS < 1

  36. The marginal propensity to consume is:

    (a)

    increasing if the marginal propensity to save is increasing

    (b)

    the proportion of total disposable income that the average family consumes

    (c)

    the change in consumer spending divided by the change in aggregate disposable income.

    (d)

    the change in consumer spending minus the change in aggregate disposable income.

  37. When prices are raised drastically(rapidly) we call it

    (a)

    Galloping inflation

    (b)

    Mild inflation

    (c)

    Hyper Inflation

    (d)

    Deflation

  38. Barter system was introduced by________

    (a)

    Mesopetamia tribes

    (b)

    Babylonian's

    (c)

    Both 'a' and 'b'

    (d)

    None of the above

  39. The exchange of one good for another without the use of money is called______

    (a)

    Supply of Money

    (b)

    Inflation

    (c)

    Deflation

    (d)

    Barter

  40. _____ is a monetary arrangement in which a country’s Government allows conversion of its currency into fixed amount of silver.

    (a)

    The Gold Standard

    (b)

    The silver standard

    (c)

    The Metallic standard

    (d)

    None of the above

  41. Which of following country do not to accept a unique currency symbol?

    (a)

    China

    (b)

    America

    (c)

    Britain

    (d)

    Japan

  42. Expand the CDR.

    (a)

    Cash Deposit Ratio (CDR)

    (b)

    Currency Digital Ratio (CDR)

    (c)

    Currency Deposit Ratio (CDR)

    (d)

    Currency Deposit Ration (CDR)

  43. Given the equation, M = KPY, which is wrongly denoted?

    (a)

    M is the quantity of money

    (b)

    Y is the aggregate real income of the community

    (c)

    K represents the fraction of the real income which the public desires to hold in the form of money

    (d)

    None of the above

  44. Scarcity induced inflation has happened in Venezula of the year ______

    (a)

    2017

    (b)

    2018

    (c)

    2016

    (d)

    2008

  45. 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

  46. In MV=PT, if M doubles and V and T remain constant, then P will:

    (a)

    Double

    (b)

    1/2

    (c)

    1

    (d)

    4

  47. Which of the following are costs of inflation?
    I. Inflation weakens the creation of credit and capital markets.
    II. Inflation distorts business behavior, especially investment behavior.
    III. Inflation increases the prices of foreign goods relative to domestic goods.
    IV. Inflation imposes a tax on the holders of money.

    (a)

    I and II only

    (b)

    III and IV only

    (c)

    I, II and IV only

    (d)

    I, II and III only

  48. RBI will act as the banker to the___________

    (a)

    Private concern

    (b)

    Society

    (c)

    Government of India

    (d)

    Both 'i' and 'b'

  49. ________is the monetary authority of the country.

    (a)

    Central bank

    (b)

    RBI

    (c)

    SBI

    (d)

    Botha' and 'b'

  50. Find the suitable match :Commercial banks act as agents of customers by performing various functions.

    (a)

    Primary Function

    (b)

    Secondary Function

    (c)

    Other Function

    (d)

    None of the above

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