Important Questions Part-IV

12th Standard EM

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Economics

Time : 01:00:00 Hrs
Total Marks : 60

    Part - A

    60 x 1 = 60
  1. Who coined the word ‘Macro’?

    (a)

    Adam Smith

    (b)

    J M Keynes

    (c)

    Ragnar Frisch

    (d)

    Karl Marx

  2. Identify the flow variable

    (a)

    money supply

    (b)

    assests

    (c)

    income

    (d)

    foreign exchange reserves

  3. Identify the stock variable.

    (a)

    Wealth

    (b)

    Income

    (c)

    Foreign exchange

    (d)

    Money

  4. Pick basic composition of two 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

  5. 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

  6. Per capita income is obtained by dividing the National income by__________

    (a)

    Production

    (b)

    Population of a country

    (c)

    Expenditure

    (d)

    GNP

  7. The average income of the country is________

    (a)

    Personal Income

    (b)

    Per capita income

    (c)

    Inflation Rate

    (d)

    Disposal Income

  8. GDP by expenditure at ________ price.

    (a)

    Factor price

    (b)

    Market price

    (c)

    Real price

    (d)

    All the above

  9. In the context of Labour income, which of the following is wrong?

    (a)

    Wages and salaries

    (b)

    fringe benefits

    (c)

    employer’s contribution to social security

    (d)

    state insurance

  10. Sum of all kinds of income received by the individuals from all sources is called________

    (a)

    Personal Income

    (b)

    Private Income

    (c)

    Personal Disposable Income

    (d)

    Non

  11. 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

  12. The core of the classical theory of employment is____________

    (a)

    Law of Diminishing Return

    (b)

    Law of Demand

    (c)

    Law of Markets

    (d)

    Law of Consumption

  13. ___________ was set up in July 1982.

    (a)

    ARDC

    (b)

    NABARD

    (c)

    ICICI

    (d)

    Indian Bank

  14. Consider the following diagram

    What do you understand about the difference between No – Nf ?

    (a)

    the level of employment

    (b)

    the level of unemployment

    (c)

    the level of underemployment

    (d)

    none of the above

  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. An increase in the marginal propensity to consume will:

    (a)

    Lead to consumption function becoming steeper

    (b)

    Shift the consumption function upwards

    (c)

    Shift the consumption function downwards

    (d)

    Shift savings function upwards

  17. According to Keynes, investment is a function of the MEC and _________

    (a)

    Demand

    (b)

    Supply

    (c)

    Income

    (d)

    Rate of interest

  18. If there is _______ in the consumer goods industry, the accelerator principle would not work.

    (a)

    Full capacity

    (b)

    unused or excess capacity

    (c)

    No capacity

    (d)

    None

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

    (a)

    MPC

    (b)

    APC

    (c)

    Autonomous consumption

    (d)

    Induced consumption

  20. Rate of change in savings to change in income:

    (a)

    APS

    (b)

    APC

    (c)

    MPS

    (d)

    MPC

  21. Inflation means

    (a)

    Prices are rising

    (b)

    Prices are falling

    (c)

    Value of money is increasing

    (d)

    Prices are remaining the same

  22. When prices rise slowly, we call it

    (a)

    galloping inflation

    (b)

    mild inflation

    (c)

    hyper inflation

    (d)

    deflation

  23. "The purchasing power of money" was a book published by________in 1911

    (a)

    J.M. Keynes

    (b)

    Irving Fisher

    (c)

    Adam smith

    (d)

    Ricardo

  24. ________system is managed by the Central Monetary Authority.

    (a)

    Plastic money

    (b)

    Metallic Standard

    (c)

    Silver standard

    (d)

    Paper currency

  25. During stagflation
    I. an increase in aggregate spending will eliminate the recession.
    II. a decrease in aggregate spending will reduce inflation.
    III. government faces contradictory goals.
    IV. The central bank decreases money supply to reduce inflation

    (a)

    I and II only

    (b)

    III and IV only

    (c)

    I, II and III only

    (d)

    I, II, III and IV

  26. NBFI does not have.

    (a)

    Banking license

    (b)

    government approval

    (c)

    Money market approval

    (d)

    Finance ministry approval

  27. Expansions of ATM

    (a)

    Automated Teller Machine

    (b)

    Adjustment Teller Machine

    (c)

    Automatic Teller mechanism

    (d)

    Any Time Money

  28. "Commercial banks are the institutions that make short term loans to business and in the process create money" was said by_______

    (a)

    Culbertson

    (b)

    Adam smith

    (c)

    Ricardo

    (d)

    J.M. Keynes

  29. Commercial banks are institutions that conduct business________.

    (a)

    with profit motive

    (b)

    By accepting the deposits

    (c)

    By Lending loans

    (d)

    all the above

  30. Expand SIDC

    (a)

    State Industrial Development Company

    (b)

    Small Industrial Development Corporation

    (c)

    State Investment Development Corporation

    (d)

    State Industrial Development Corporation

  31. Trade between two countries is known as ____ trade

    (a)

    External

    (b)

    Internal

    (c)

    Inter-regional

    (d)

    Home

  32. Foreign direct investments not permitted in India

    (a)

    Banking

    (b)

    Automic energy

    (c)

    Pharmaceutical

    (d)

    Insurance

  33. When there is a chronic imbalance in the trade balance (more imports than exports), it can theoretically be reduced by means of a package of tax measures

    (a)

    decrease of customs duties

    (b)

    increase of customs duties

    (c)

    stimulating imports.

    (d)

    stimulating exports

  34. Absolute advantage is determined by

    (a)

    actual differences in labor productivity between countries

    (b)

    relative differences in labor productivity between countries.

    (c)

    both (a) and (b)

    (d)

    neither (a) nor (b)

  35. The Heckscher-Ohlin assumes that _______ are identical between countries

    (a)

    tastes and preferences

    (b)

    technology levels

    (c)

    factor endowments

    (d)

    both (a) and (b)

  36. SAARC meets once in __________ years.

    (a)

    2

    (b)

    3

    (c)

    4

    (d)

    5

  37. The headquarters of ASEAN is

    (a)

    Jaharta

    (b)

    New Delhi

    (c)

    Colombo

    (d)

    Tokyo

  38. The IMF has __________ member countries.

    (a)

    180

    (b)

    189

    (c)

    181

    (d)

    111

  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. Which of the following institutions is not part of the World Bank community?

    (a)

    IBRD

    (b)

    WTO

    (c)

    IDA

    (d)

    IFC

  41. The difference between total expenditure and total receipts including loans and other liabilities is called

    (a)

    Fiscal deficit

    (b)

    Budget deficit

    (c)

    Primary deficit

    (d)

    Revenue deficit

  42. The primary purpose of deficit financing is

    (a)

    Economic development

    (b)

    Economic stability

    (c)

    Economic equality

    (d)

    Employment generation

  43. The population of India has increased from 36.1 crore in 1951 to ___________ crore in 2011

    (a)

    121

    (b)

    131

    (c)

    111

    (d)

    110.5

  44. In India, there are more than ………….. above one million population.

    (a)

    45 cities

    (b)

    54 towns

    (c)

    54 cities

    (d)

    45 towns

  45. The major objectives of public expenditure are .......

    (a)

    Economic Growth

    (b)

    Maintenance of Defence

    (c)

    Social Welfare

    (d)

    All of the above

  46. Which one of the following causes of global warming?

    (a)

    Earth gravftation force

    (b)

    Oxygen

    (c)

    Centripetal force

    (d)

    Increasing temperature

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

    (a)

    Indus-Ganga

    (b)

    North-Indian

    (c)

    Gangetic plains

    (d)

    All the above

  48. Increasing temperature in the atmosphere leads to Global Warming.

    (a)

    Increase sea level

    (b)

    Melting of polar ice large

    (c)

    Displacement and loss of habitat

    (d)

    Destroying the forest

  49. ______________ occur outside of the market i.e. they affect people not directly involved in the production and consumption of a good or service

    (a)

    Fee good

    (b)

    spill-over effects

    (c)

    Public good

    (d)

    private good

  50. 1 EcoSystem i. The presence of harmful or objectionable material to damage water quality.
    2 Pollution ii. The increase in temperature of the Earth’s surface, due to greenhouse gases.
    3 Water Pollution iii. Residual discharges of contaminants into the natural environment to the air or water
    4 Global warming iv. The interacting system of a biological community and it's nonliving environmental surroundings
    (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)

  51. Which is not the feature of economic growth?

    (a)

    Concerned with developed nations

    (b)

    Gradual change

    (c)

    Concerned with quantitative aspect

    (d)

    Wider concept

  52. The Chair Person of NIT I Aayog is

    (a)

    Prime Minister

    (b)

    President

    (c)

    Vice - President

    (d)

    Finance Ministed

  53. Planning in India is

    (a)

    Centralized planning

    (b)

    Democratic planning

    (c)

    Partial Planning

    (d)

    Indicative planning

  54. Consider the following statement and find a suitable answer.
    “The increase in GNP is accompanied by decline in share of agriculture in output and employment while those of manufacturing and service sectors increase”

    (a)

    Modern Approach

    (b)

    new welfare approach

    (c)

    neo-classical approach

    (d)

    Traditional Approach

  55. The term 'underdeveloped country' is _____________ one.

    (a)

    relative

    (b)

    absolute

    (c)

    systematic

    (d)

    structural

  56. The purpose of simple linear regression analysis is to:

    (a)

    Predict one variable from another variable

    (b)

    Replace points on a scatter diagram by a straight -line

    (c)

    Measure the degree to which two variables are linearly associated

    (d)

    Obtain the expected value of the independent random variable for a given value of the dependent variable

  57. The raw materials of Econometrics are:

    (a)

    Data

    (b)

    Goods

    (c)

    Statistics

    (d)

    Mathematics

  58. Since 2007__________ every year is celebrated as Statistics Day to commemorate his birth anniversary.

    (a)

    28th of June

    (b)

    29th of July

    (c)

    28th of July

    (d)

    29th of June

  59. Find the positive correlation equation.

    (a)

    Y= a – bx

    (b)

    Y= a + bx

    (c)

    Y= b – ax

    (d)

    Y= a – by

  60. Find the equation of non-linear correlation

    (a)

    Y= a + bx2

    (b)

    Y= a + bx

    (c)

    Y= b – ax

    (d)

    Y= a – by

  61. Part - B

    35 x 2 = 70
  62. Define ‘Economic Model"

  63. Who is the controll authority of socialistic economy?

  64. Write a note on Central Planning?

  65. Draw the circular flow of a three sector economy.

  66. Mention the any three Capitalist Learning economies

  67. Write the formula for calculating GNP

  68. What are the methods of measuring National Income?

  69. What is Simple circular flow?

  70. List out the assumptions of Say’s law.

  71. What are the components of aggregate supply ?

  72. Write a short note about Keynes theory?

  73. What are the two factors depend on MEC?

  74. What is Aggregate demand?

  75. Define average propensity to consume (APC).

  76. Write any two long run factors which influencing marginal efficiency of capital?

  77. Increase in income always leads to an increase in both consumption and saving. – Explain.

  78. What is commodity money?

  79. What is Trade Cycle?

  80. What is Recovery?

  81. Mention the functions of agriculture credit department.

  82. Comment on RBI as “Lender of last resort"

  83. What are the All-India Level Institutions for industrial finance?

  84. Define Terms of Trade.

  85. What are the other names of internal trade?

  86. Mention the year of establishment of the following organization.
    South Asian Association for Regional
    Cooperation (SAARC), ASEAN and BRICSs

  87. Define public finance.

  88. What is Deficit budget?

  89. State the meaning of environment.

  90. Write a short note on “Indoor Air Pollution”.

  91. Distinguish between economic growth and development

  92. Draw the The Vicious Circle of Poverty

  93. What is the key difference between comprehensive and partial plan?

  94. What is Statistics?

  95. What are the kinds of data?

  96. “Coefficient of correlation’ – define.

  97. Part - C

    25 x 3 = 75
  98. Briefly explain the two sector circular flow model.

  99. What are the Merits of Socialism?

  100. Write a short note on per capita income

  101. How the gross value of the farm output is obtained In India?

  102. Explain about aggregate supply with the help of diagram.

  103. Write a note of John Maynard Keynes

  104. State the concept of super multiplier

  105. Draw the diagrams for Autonomous investment and induced investment.

  106. Explain Demand-pull and Cost push inflation.

  107. Write a note on paper currency standard

  108. Distinguish between money market and capital market

  109. List of the role of commercial bank.

  110. Compare the Classical Theory of international trade with Modern Theory of International trade.

  111. What are the assumptions of Absolute Cost Advantages?

  112. List the assumption of Comparative advantage theory of international trade.

  113. State briefly the functions of SAARC.

  114. Distinguish between IMF and World Bank

  115. What are the functions of a modern state?

  116. Draw the flow chart depicting components of budget

  117. Write a note on
    a) Climate change and
    b) Acid rain

  118. What are the various sources of E-Wastes?

  119. Elucidate major causes of vicious circle of poverty with diagram

  120. What are the six basic characteristics of under developed economy?

  121. Differentiate the economic model with econometric model.

  122. Calculate the SD of the following data. 2 3 , 2 5 , 2 8 , 3 1 , 3 8 , 4 0 , 4 6

  123. Part - D

    10 x 5 = 50
  124. Explain the four sector model of economy with chart.

  125. Given the table, calculate GNP, NNP, National Income, Personal Income and Disposable income

  126. Draw the diagram ADF.

  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. Write the History, Administration and Brief Functions of RBI.

  130. Explain Adam Smith’s Theory of Absolute Cost Advantage

  131. List the Revenue of State Sources

  132. Draw the 7 pillars of NITI Aayog

  133. Calculate the standard deviation for the following data by assumed mean method: 43, 48, 65, 57, 31, 60, 37, 48, 78, 59

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