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

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Questions:

Multiple Choice Question

50 x 1 = 50

Assertion: In developing countries like India, the nature of unemployment is different from that of developed countries.
Reason: 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

Supply creates its own demand “is a law of:

(a)

Investment

(b)

Inflation

(c)

Consumption

(d)

Market

Assertion: The concept of full employment generally refers to full employment of labour force of a country
Reason: 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.

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

GDP Deflator is equal to________

(a)

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

(b)

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

(c)

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

(d)

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

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

“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

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

(a)

MEI

(b)

MEC

(c)

Effective Demand

(d)

Aggregate Demand

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

10.

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.

11.

Assertion: National plans are drawn up by the Government and both private and public sectors abide.
Reason: 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.

12.

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

13.

Assertion: Planning is an integral part of a Capitalist economy.
Reason: 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

14.

Marginal propensity to save is measured by ____________

(a)

ΔC/ΔY

(b)

ΔS/ΔY

(c)

C/Y

(d)

S/Y

15.

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

16.

MPC Stands for ___________

(a)

Marginal Physical Consumption

(b)

Marginal Propensity to Consume

(c)

Marginal Price of the Commodity

(d)

None of these

17.

If the MPC = 0.6, find MPS

(a)

(b)

0.4

(c)

0.6

(d)

18.

Secondary sector is __________

(a)

Industry

(b)

Trade

(c)

Agriculture

(d)

Manufacture

19.

__________ 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

20.

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

21.

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

(a)

Direct taxes

(b)

Canons of taxes

(c)

Indirect taxes

(d)

None of these

22.

Based on Keynesianism __________ is vice.

(a)

Saving

(b)

Production

(c)

Consumption

(d)

None of these

23.

Keynes theory of employment and income is the principle of ____________

(a)

Reflective demand

(b)

Market demand

(c)

Effective demand

(d)

Individual demand

24.

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

25.

A person receives his income from ______________

(a)

production

(b)

purchase

(c)

sales

(d)

None of the above

26.

The modern banks create deposits in ________ways

(a)

(b)

(c)

(d)

27.

Barter system was introduced by________ tribes.

(a)

Mesopotamia

(b)

Phoenician

(c)

Babylonian

(d)

Jarwa

28.

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

29.

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

(a)

Deflation

(b)

Inflation

(c)

Trade

(d)

To achieve growth

30.

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

31.

Long-term plan is also known as_______

(a)

Progressive Plans

(b)

Non-progressive Plans

(c)

Perspective Plans

(d)

Non-perspective Plans

32.

"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

33.

In a pure public good, consumption is ___________

(a)

Rival

(b)

Non-rival

(c)

Both

(d)

None of the above

34.

Which of the following is a direct tax?

(a)

Excise duty

(b)

Income tax

(c)

Customs duty

(d)

Service tax

35.

The headquarters of ASEAN is

(a)

Jaharta

(b)

New Delhi

(c)

Colombo

(d)

Tokyo

36.

IBRD is otherwise called

(a)

IMF

(b)

World Bank

(c)

ASEAN

(d)

International Finance Corporation

37.

Trade between two countries is known as ____ trade

(a)

External

(b)

Internal

(c)

Inter-regional

(d)

Home

38.

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

(a)

SBI

(b)

NABARD

(c)

ICICI

(d)

RBI

39.

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

40.

Debit card is an example of

(a)

currency

(b)

paper currency

(c)

plastic money

(d)

money

41.

Paper currency system is managed by the______.

(a)

Central Monetary authority

(b)

State Government

(c)

Central Government

(d)

Banks

42.

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

43.

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)

₹ 0.8

(b)

₹ 800

(c)

₹ 810

(d)

₹ 0.81

44.

Keynes theory emphasized on________ equilibrium

(a)

Very short run

(b)

Short run

(c)

Very long run

(d)

Long run

45.

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

46.

PQLI is the indicator of___________.

(a)

Economic growth

(b)

Economic welfare

(c)

Economic welfare

(d)

Economic development

47.

GNP = _________ + Net factor income from abroad

(a)

NNP

(b)

NDP

(c)

GDP

(d)

Personal income

48.

National income is measured by using_______ methods.

(a)

Two

(b)

Three

(c)

Five

(d)

Four

49.

Identify The Father of Socialism

(a)

J M Keynes

(b)

Karl Marx

(c)

Adam Smith

(d)

Samuelson

50.

A steady increase in general price level is termed as_____________.

(a)

wholesale price index

(b)

Business Cycle

(c)

Inflation

(d)

National Income

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Answers Key:

Multiple Choice Question

50 x 1 = 50

(b)
Both A and R are true but R is not the correct explanation of A

(d)
Market

(b)
Both (A) and (R) are true, but (R) is not the correct explanation of (A)

(a)
Wages, profits, rents

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

(b)
Total value added by that stage

(b)
public bodies

(a)
MEI

(a)
J.M.Clar

10.

11.

12.

(b)
V.K.R.V. Rao

13.

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

14.

(b)
ΔS/ΔY

15.

(b)
J.M. Keynes

16.

(b)
Marginal Propensity to Consume

17.

(b)
0.4

18.

(a)
Industry

19.

20.

(d)
Net factor income from abroad

21.

22.

(a)
Saving

23.

24.

(b)
NNP at Market Prices - Indirect taxes + Subsidies.

25.

(a)
production

26.

(b)
2

27.

(a)
Mesopotamia

28.

(a)
15th July, 2010

29.

(a)
Deflation

30.

31.

32.

(b)
New welfare oriented approach

33.

(a)
Rival

34.

(b)
Income tax

35.

(a)
Jaharta

36.

(b)
World Bank

37.

(a)
External

38.

(d)
RBI

39.

(b)
Velocity of circulation of money

40.

41.

(a)
Central Monetary authority

42.

43.

(a)
₹ 0.8

44.

(b)
Short run

45.

46.

(b)
Economic welfare

47.

48.

(b)
Three

49.

(b)
Karl Marx

50.

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

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