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12th Standard English Medium Economics Reduced Syllabus One Mark Important Questions with Answer key - 2021(Public Exam )

12th Standard

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Economics

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

      Part-A

      Multiple Choice Questions

    50 x 1 = 50
  1. A steady increase in general price level is termed as_____________.

    (a)

    wholesale price index

    (b)

    Business Cycle

    (c)

    Inflation

    (d)

    National Income

  2. Identify The Father of Socialism

    (a)

    J M Keynes

    (b)

    Karl Marx

    (c)

    Adam Smith

    (d)

    Samuelson

  3. A steady fall in general price level is termed as ___________.

    (a)

    Deflation

    (b)

    Inflation

    (c)

    Trade

    (d)

    To achieve growth

  4. Planning is an integral part of a Capitalist economy.
    In socialist system, all decisions are undertaken by the central planning authority

    (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

  5. Assertion (A) :National plans are drawn up by the Government and both private and public sectors abide.
    Reason (R) :The central planning authority prepares the economic plans

    (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.

  6. 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.

  7. National income is measured by using_______ methods.

    (a)

    Two

    (b)

    Three

    (c)

    Five

    (d)

    Four

  8. GNP = _________ + Net factor income from abroad

    (a)

    NNP

    (b)

    NDP

    (c)

    GDP

    (d)

    Personal income

  9. PQLI is the indicator of_____________

    (a)

    Economic growth

    (b)

    Economic welfare

    (c)

    Economic welfare

    (d)

    Economic development

  10. Formula for calculating NNP at factor cost.

    (a)

    \(\frac{Nominal\ GDP}{Real\ GDP}\times 100\)

    (b)

    NNP at Market Prices - Indirect taxes + Subsidies.

    (c)

    GNP - Depreciation allowance

    (d)

    Output = Income = Expenditure

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

    (a)

    Direct taxes

    (b)

    Canons of taxes

    (c)

    Indirecttaxes

    (d)

    None of these

  12. The difference between NNP and NDP is _________

    (a)

    Depreciation

    (b)

    Current transfers from rest of the world

    (c)

    Indirect tax

    (d)

    Net factor income from abroad

  13. __________ is not the correct indicator for the living standards of the people.

    (a)

    Per capita income

    (b)

    National income

    (c)

    Both

    (d)

    None of the above

  14. Secondary sector is __________

    (a)

    Industry

    (b)

    Trade

    (c)

    Agriculture

    (d)

    Manufacture

  15. “The Government sector” refers to the economic transactions of …………..at all levels, centre, state and local?

    (a)

    firms

    (b)

    public bodies

    (c)

    society

    (d)

    Non-governmental organisations

  16. Imputed value of good is added to the GDP because

    (a)

    Value of output minus value of input

    (b)

    Total value added by that stage

    (c)

    Total value produced at that

    (d)

    All of the above

  17. GDP Deflator is equal to________

    (a)

    \(\cfrac { (NominalGDP) }{ (NominalGDP) } \times 100\)

    (b)

    \(\cfrac { (RealGDP) }{ (NominalGDP) } \times 100\)

    (c)

    \(\cfrac { (NominalGNP) }{ (RealGNP) } \times 100\)

    (d)

    \(\cfrac { (NominalNDP) }{ (RealNDP) } \times 100\)

  18. Which of the following would be included in the income approach to measure GDP?

    (a)

    Wages, profits, rents

    (b)

    Wages, profits, investment spending

    (c)

    Wages, rents, investment spending,consumption spending consumption spending

    (d)

    The value added in production

  19. Keynes theory pursues to replace laissez faire by ___________

    (a)

    No government intervention

    (b)

    Maximum intervention

    (c)

    State intervention in certain situation

    (d)

    Private sector intervention

  20. Keynes theory emphasized on________ equilibrium

    (a)

    Very short run

    (b)

    Short run

    (c)

    Very long run

    (d)

    Long run

  21. A person receives his income from ______________

    (a)

    production

    (b)

    purchase

    (c)

    sales

    (d)

    None of the above

  22. Keynes theory of employment and income is the principle of ____________

    (a)

    Reflective demand

    (b)

    Market demand

    (c)

    Effective demand

    (d)

    Individual demand

  23. Based on Keynesianism __________ is vice.

    (a)

    Saving

    (b)

    Production

    (c)

    Consumption

    (d)

    None of these

  24. 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.

  25. Supply creates its own demand “is a law of:

    (a)

    Investment

    (b)

    Inflation

    (c)

    Consumption

    (d)

    Market

  26. 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

  27. If the Keynesian consumption function is C=10+0.8Y then, when disposable income is Rs 100, what is the marginal propensity to consume?

    (a)

    Rs.0.8

    (b)

    Rs.800

    (c)

    Rs.810

    (d)

    Rs.0.81

  28. When investment is assumed autonomous the slope of the AD schedule is determined by the______

    (a)

    marginal propensity to invest

    (b)

    disposable income

    (c)

    marginal propensity to consume

    (d)

    average propensity to consume

  29. If the MPC = 0.6, find MPS

    (a)

    1

    (b)

    0.4

    (c)

    0.6

    (d)

    2

  30. MPC Stands for ___________

    (a)

    Marginal Physical Consumption

    (b)

    Marginal Propensity to Consume

    (c)

    Marginal Price of the Commodity

    (d)

    None of these

  31. The author of the book "General Theory of Employment, Interest and Money" is:

    (a)

    Adam smith

    (b)

    J.M. Keynes

    (c)

    David Ricardo

    (d)

    Alfred Marshall

  32. Marginal propensity to save is measured by ____________

    (a)

    ΔC/ΔY

    (b)

    ΔS/ΔY

    (c)

    C/Y

    (d)

    S/Y

  33. 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

  34. The systematic development of the simple accelerator model was made by ______

    (a)

    J.M.Clar

    (b)

    J.M.Keynes

    (c)

    R.F. Khan

    (d)

    Learner

  35. Schedule that expresses relationship between rate of interest and corresponding amount of investment

    (a)

    MEI

    (b)

    MEC

    (c)

    Effective Demand

    (d)

    Aggregate Demand

  36. Paper currency system is managed by the

    (a)

    Central Monetary authority

    (b)

    State Government

    (c)

    Central Government

    (d)

    Banks

  37. Debit card is an example of

    (a)

    currency

    (b)

    paper currency

    (c)

    plastic money

    (d)

    money

  38. V in MV = PT equation stands for

    (a)

    Volume of trade

    (b)

    Velocity of circulation of money

    (c)

    Volume of transaction

    (d)

    Volume of bank and credit money

  39. The symbol of India rupee came into use on________

    (a)

    15th July, 2010

    (b)

    16th July, 2010

    (c)

    15th June, 2010

    (d)

    16th June, 2010

  40. Barter system was introduced by________ tribes.

    (a)

    Mesopotamia

    (b)

    Phoenician

    (c)

    Babylonian

    (d)

    Jarwa

  41. Who will act as the banker to the Government of India?

    (a)

    SBI

    (b)

    NABARD

    (c)

    ICICI

    (d)

    RBI

  42. The modern banks create deposits in ________ways

    (a)

    1

    (b)

    2

    (c)

    3

    (d)

    4

  43. Trade between two countries is known as ____ trade

    (a)

    External

    (b)

    Internal

    (c)

    Inter-regional

    (d)

    Home

  44. IBRD is otherwise called

    (a)

    IMF

    (b)

    World Bank

    (c)

    ASEAN

    (d)

    International Finance Corporation

  45. The headquarters of ASEAN is

    (a)

    Jaharta

    (b)

    New Delhi

    (c)

    Colombo

    (d)

    Tokyo

  46. Which of the following is a direct tax?

    (a)

    Excise duty

    (b)

    Income tax

    (c)

    Customs duty

    (d)

    Service tax

  47. In a pure public good, consumption is ___________

    (a)

    Rival

    (b)

    Non-rival

    (c)

    Both

    (d)

    None of the above

  48. "Redistribution with Growth" became popular slogan under which approach?

    (a)

    Traditional approach

    (b)

    New welfare oriented approach

    (c)

    Industrial approach

    (d)

    None of the above

  49. Long-term plan is also known as_______

    (a)

    Progressive Plans

    (b)

    Non-progressive Plans

    (c)

    Perspective Plans

    (d)

    Non-perspective Plans

  50. The value of the coefficient of correlation r lies between

    (a)

    0 and 1

    (b)

    -1 and 0

    (c)

    -1 and +1

    (d)

    -0.5 and +0.5

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