MCQ Questions

MCQ Questions for Class 12 Economics Chapter 2 Indian Economy 1950-1990 with Answers

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Check the below NCERT MCQ Questions for Class 12 Economics Chapter 2 Indian Economy 1950-1990 with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Indian Economy 1950-1990 Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-12-economics-chapter-2-part-b/

Indian Economy 1950-1990 Class 12 MCQs Questions with Answers

I. Choose the correct alternative.

Indian Economy 1950 to 1990 Class 12 MCQ Question 1.
In which of the following type of economy are resources owned privately and the main objective behind economic activities is profit-making?
(A) Capitalist
(B) Socialist
(C) Mixed
(D) Global

Answer

Answer: (A) Capitalist

Indian Economy 1950 to 1990 MCQ Chapter 2 Question 2.
Which of the following is the main objective of carrying out various economic activities?
(A) Profit
(B) Public welfare
(C) Competition
(D) Equality

Answer

Answer: (B) Public welfare

MCQ Of Indian Economy 1950 to 1990 Chapter 2 Question 3.
When was the National Development Council (NDC) set up as an adjunct to the Planning Commission?
(A) 1950
(B) 1969
(C) 1952
(D) 1979

Answer

Answer: (C) 1952

Indian Economic Class 12 MCQ Chapter 2 Question 4.
Which of the following had been responsible for the heavy burden of the deal and its interest?
(A) BOP deficit
(B) BOP surplus
(C) Equilibrium
(D) None of these

Answer

Answer: (A) BOP deficit

Chapter 2 Indian Economy Class 12 MCQ Question 5.
Agriculture sector contributed _______ percent to the GDP in 1990-91.
(A) 24.6
(B) 34.9
(C) 40.5
(D) 59.0

Answer

Answer: (B) 34.9

Indian Economy 1950 to 1990 MCQ Questions Ch 2 Question 6.
What is needed to provide protection against natural calamities like floods, drought, locusts, thunderstorms, etc.?
(A) Multiple cropping
(B) Green revolution
(C) Crop insurance
(D) HYV

Answer

Answer: (C) Crop insurance

Ch 2 Indian Economy Class 12 MCQ Question 7.
Which of the following steps promoted the growth of the economy as a whole by stimulating the development of industrial and tertiary sectors?
(A) Independence
(B) Planning
(C) Colonial rule
(D) Green revolution

Answer

Answer: (B) Planning

MCQ On Indian Economy 1950 to 1990 Chapter 2 Question 8.
How many industries have been reserved for the public sector under Industrial Policy Resolution, 1956?
(A) 17
(B) 21
(C) 15
(D) 2

Answer

Answer: (A) 17

II. Fill in the blanks with the correct answer.

MCQ Questions For Class 12 Economics Chapter 2 Question 1.
The percentage of the total population below the poverty line has ________ in India since independence.

Answer

Answer: declined

Indian Economy Chapter 2 MCQ Class 12 Question 2.
_______ planning includes all spheres of economic and social activities.

Answer

Answer: Comprehensive

MCQ Of Chapter 2 Indian Economy Class 12 Question 3.
________ is the Chairman of the Planning Commission.

Answer

Answer: Prime Minister

Class 12 Indian Economy Chapter 2 MCQs Question 4.
________ economy is the framework of planning in India.

Answer

Answer: Mixed

Question 5.
Full employment and equitable distribution of income and wealth are the _______ period objectives of planning in India.

Answer

Answer: long

Question 6.
________ combined with social justice is the principal goal of planning in India.

Answer

Answer: Economic growth

Question 7.
Modernisation means adoption of new technology and a change in ________

Answer

Answer: social outlook

Question 8.
Planning in India started with a heavy reliance on the _______ sector.

Answer

Answer: Public

Question 9.
Land Reforms were introduced to make tillers the owners of the land and bring about _______ in agriculture.

Answer

Answer: equity

Question 10.
Import Substitution policy was introduced to protect ________ from foreign competition.

Answer

Answer: domestic industries

III. State whether the following statements are true or false.

Question 1.
In a capitalist economy, production takes place for selling the output in the market with profit as the primary motive.

Answer

Answer: True

Question 2.
Pt. Jawaharlal Nehru and many other leaders favoured capitalism for independent India.

Answer

Answer: False

Question 3.
President is the Chairman of the Planning Commission.

Answer

Answer: False

Question 4.
Pt. Jawaharlal Nehru is regarded as the architect of Indian planning.

Answer

Answer: False

Question 5.
Economic growth means equal opportunity to all and the removal of inequality in the distribution of income and wealth.

Answer

Answer: False

Question 6.
Land Reforms were introduced to make tillers the owners of the land.

Answer

Answer: True

Question 7.
The green revolution resulted in a marketable surplus of agricultural produce.

Answer

Answer: True

Question 8.
The private Sector comprises industries owned, controlled, and managed by the government with the aim of social welfare.

Answer

Answer: False

Question 9.
Under Industrial Policy Resolution (IPR), 1956, Category II of the industrial sector includes industries jointly owned and controlled by the private sector and the state.

Answer

Answer: True

Question 10.
Quotas are a tax on imported goods while tariffs specify the number of goods which can be imported.

Answer

Answer: False

IV. Match the following.

Question 1.

Column-IColumn-II
1. Demonetization(A) 1950
2. Planning Commission(B) 2015
3. NITI Aayog(C) P. C. Mahalanobis
4. First five-year plan(D) 2016
5. Architect of Indian Planning(E) 1967-68
6. Green Revolution(F) 1951
7. Economic reforms in India(G) Prime Minister
8. Chairman of Planning Commission(H) 2017
9. New Development Council(I) 1991
10. GST(J) 1952
Answer

Answer:

Column-IColumn-II
1. Demonetization(D) 2016
2. Planning Commission(A) 1950
3. NITI Aayog(B) 2015
4. First five-year plan(F) 1951
5. Architect of Indian Planning(C) P. C. Mahalanobis
6. Green Revolution(E) 1967-68
7. Economic reforms in India(I) 1991
8. Chairman of Planning Commission(G) Prime Minister
9. New Development Council(J) 1952
10. GST(H) 2017

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 2 Indian Economy 1950-1990 with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Indian Economy 1950-1990 MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers

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Check the below NCERT MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers Pdf free download. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. We have provided Market Equilibrium Class 11 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-11-economics-chapter-5/

Market Equilibrium Class 11 MCQs Questions with Answers

MCQ Questions For Class 11 Economics Chapter 5 Question 1.
Which is a characteristic of the market ?
(a) One Area
(b) Presence of both Buyers and Sellers
(c) Single Price of the Commodity
(d) All the above

Answer

Answer: (d) All the above

Market Equilibrium MCQ Chapter 5 Question 2.
Which is a basic for the classification of the market ?
(a) Perfect Competition
(b) Zero Competition (Monopoly)
(c) Imperfect Competition
(d) All the above

Answer

Answer: (d) All the above

MCQ On Market Equilibrium Chapter 5 Class 11 Question 3.
Which of the following is a feature of perfect competition ?
(a) Large Number of Buyers and Sellers
(b) Homogeneous Units of the Product
(c) Perfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above

Market Equilibrium MCQ Class 11 Chapter 5 Question 4.
In which market product differentiation is found ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly

Ch 5 Economics Class 11 MCQ Question 5.
Which of the following is true in perfect competition ?
(a) Firm is price-taker, not price-maker
(b) Firm’s demand curve is perfectly elastic
(c) AR = MR
(d) All the above

Answer

Answer: (d) All the above

MCQ On Market Equilibrium Class 11 Chapter 5 Question 6.
Which one is a feature of monopoly ?
(a) Single Seller and Many Buyers
(b) Lack of Close Substitutes
(c) Restrictions of New Firm entry
(d) All of these

Answer

Answer: (d) All of these

Class 11 Economics Chapter 5 MCQ Question 7.
Which one of the following is true for monopoly ?
(a) Firm is price-maker
(b) Demand curve slopes downward
(c) Price discrimination possibility arises
(d) All the above

Answer

Answer: (d) All the above

Class 11 Economics Chapter 5 MCQ Market Equilibrium Question 8.
Which one is a feature of monopolistic competition ?
(a) Differentiated Product
(b) Selling Cost
(c) Imperfect Knowledge of the Market
(d) All the above

Answer

Answer: (d) All the above

Chapter 5 Economics Class 11 MCQ Question 9.
A market in which there is free entry and exit, the market is:
(a) Monopolistic Competitive Market
(b) Imperfect Competitive Market
(c) Perfectly Competitive Market
(d) None of these

Answer

Answer: (c) Perfectly Competitive Market

Class 11 Economics Ch 5 MCQ Market Equilibrium Question 10.
What does a monopolist market show ?
(a) Production process
(b) Distribution system
(c) Nature of market
(d) None of these

Answer

Answer: (c) Nature of market

MCQ Questions On Market Equilibrium Chapter 5 Question 11.
Price discrimination is found in which market ?
(a) Pure Competition
(b) Perfect Competition
(c) Monopoly
(d) Monopolistic Competition

Answer

Answer: (c) Monopoly

MCQ Questions For Class 11 Economics Pdf Chapter 5 Question 12.
Which of the following is the feature of pure competition ?
(a) Perfect knowledge of the market
(b) Perfect mobility of factors
(c) Homogenity by products
(d) All the above

Answer

Answer: (d) All the above

MCQ On Market In Economics Chapter 5 Question 13.
Market situation where there is only one buyer is:
(a) Monopoly
(b) Monopsony
(c) Duropoly
(d) None of these

Answer

Answer: (b) Monopsony

Question 14.
The concept of monopolistic competition is given by:
(a) Hicks
(b) Chamberlin
(c) Mrs. Robinson
(d) Samuelson

Answer

Answer: (b) Chamberlin

Question 15.
Which of the following is not a feature of perfect competition ?
(a) Large number of buyers and sellers
(b) Homogeneity of product
(c) Advertisement and selling cost
(d) Perfect knowledge of the market

Answer

Answer: (c) Advertisement and selling cost

Question 16.
In which market is AR equal to MR ?
(a) Perfect competition
(b) Oligopoly
(c) Imperfect competition
(d) Monopoly

Answer

Answer: (a) Perfect competition

Question 17.
Which factor determines Equilibrium Price ?
(a) Demand for Commodity
(b) Supply of Commodity
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 18.
“Price is determined by Demand and Supply. Whose statement is this ?
(a) Jevons
(b) Walras
(c) Marshall
(d) None of these

Answer

Answer: (c) Marshall

Question 19.
Price of a commodity is determined at a point where :
(a) Demand exceeds
(b) Supply exceeds
(c) Demand equals supply
(d) None of these

Answer

Answer: (c) Demand equals supply

Question 20.
What is true for perfect competition market ?
(a) Price is determined by both Demand and Supply Forces
(b) Price is determined by the industry
(c) Each firm of the industry is Price-taker
(d) All the above

Answer

Answer: (d) All the above

Question 21.
Who gave the concept of ‘Time Element’ in price determination process ?
(a) Ricardo
(b) Walras
(c) Marshall
(d) J. K. Mehta

Answer

Answer: (c) Marshall

Question 22.
How many categories of production duration have been made by Marshall on the basis of supply ?
(a) Two
(b) Three
(c) Four
(d) Seven

Answer

Answer: (b) Three

Question 23.
Which is a reason of change in demand ?
(a) Change in Consumer’s Income
(b) Change in Prices of Related Goods
(c) Population increase
(d) All the above

Answer

Answer: (d) All the above

Question 24.
Which statement is correct ?
(a) In very short period, supply is perfectly inelastic, price is affected by both demand conditions.
(b) Supply curve elasticity depends on time period
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 25.
Market Price is found in:
(a) Short Period Market
(b) Long Period Market
(c) Very Long Period Market
(d) None of these

Answer

Answer: (a) Short Period Market

Question 26.
The price of a good is determined by:
(a) Demand
(b) Supply
(c) Both demand and supply
(d) Government

Answer

Answer: (c) Both demand and supply

Question 27.
Market price is associated with:
(a) Price of very short period
(b) Normal price
(c) Permanent price
(d) All of these

Answer

Answer: (a) Price of very short period

Question 28.
The price of a goods in perfect competition is determined by:
(a) Bargaining
(b) Production cost
(c) Marginal utility
(d) Demand and supply

Answer

Answer: (d) Demand and supply

Question 29.
In perfect competition, a firm:
(a) Determines price
(b) Obtains price
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Obtains price

Question 30.
In very short period, supply will be:
(a) Perfectly elastic
(b) Perfectly Inelastic
(c) Elastic
(d) None of these

Answer

Answer: (b) Perfectly Inelastic

Question 31.
Which is not a condition for equilibrium of a monopoly form ?
(a) Average Revenue = Marginal Cost
(b) Marginal Revenue = Marginal Cost
(c) Marginal Cost should cut the Marginal Revenue Curve from below
(d) Both (b) and (c)

Answer

Answer: (a) Average Revenue = Marginal Cost

Question 32.
In perfect competition, these is……. profit
(a) Normal
(b) Maximum
(c) Zero
(d) None of these

Answer

Answer: (a) Normal

Question 33.
A Seller Cannot influence the market price under:
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic Competition
(d) All of these

Answer

Answer: (a) Perfect Competition

Question 34.
Which determines the equilibrium price ?
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Question 35.
Which is the component of factor price determination ?
(a) Rent
(b) Wages
(c) Interest
(d) All of these

Answer

Answer: (d) All of these

Question 36.
Price of a goods is determined at a point where :
(a) Demand > Supply
(b) Demand < Supply
(c) Demand = Supply
(d) None of these

Answer

Answer: (c) Demand = Supply

Question 37.
None of these Rent is = ?
(a) Actual Income – Transfer Earnings
(b) Actual Income + Transfer Earnings
(c) Transfer Earnings
(d) None of these

Answer

Answer: (a) Actual Income – Transfer Earnings

Question 38.
Which of the following is correct ?
(a) Labour Demand comes from producer
(b) Demand of labour depends on its productivity.
(c) Marginal productivity of labour is its maximum wage
(d) All the above

Answer

Answer: (d) All the above

Question 39.
Main feature of perfectly competitive market is:
(a) Uniform price
(b) Homogeneous product
(c) Large number of buyers and sellers
(d) All of the above.

Answer

Answer: (d) All of the above.

Question 40.
The market in which there is free entry and exit is:
(a) Monopolistic competition market
(b) Imperfect competition market
(c) Perfect competitions market
(d) None of these.

Answer

Answer: (c) Perfect competitions market

Question 41.
There is inverse relation between demand and price of goods in:
(a) Only monopoly
(b) Only monopolistic competition
(c) Both (a) and (b)
(d) Only perfect competition.

Answer

Answer: (d) Only perfect competition.

Question 42.
According to which economist “Price of a commodity is determined by the forces of demand and supply”:
(a) Jevons
(b) Valros
(c) Marshall
(d) None of these.

Answer

Answer: (c) Marshall

Question 43.
Not a condition of equilibrium of monopoly firm:
(a) Average revenue = Marginal revenue
(b) Marginal revenue = Marginal cost
(c) Marginal cost curve cuts marginal revenue curve from downwards.
(d) Both (b) and (c).

Answer

Answer: (a) Average revenue = Marginal revenue

Question 44.
Market price is found in:
(a) Short period market
(b) Long period market
(c) Very long period market
(d) None of these.

Answer

Answer: (a) Short period market

Question 45.
Demand curve of a firm is perfectly elastic in:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly.

Answer

Answer: (a) Perfect competition

Questions 46.
Administrative price is:
(a) Price ceiling
(b) Price floor
(c) Both (a) and (b)
(d) None of these.

Answer

Answer: (c) Both (a) and (b)

Questions 47.
Minimum support price of wheat is called:
(a) Price ceiling
(b) Price floor
(c) Market price
(d) Equilibrium price.

Answer

Answer: (b) Price floor

Questions 48.
Which of the following is the component of instrument pricing:
(a) Rent
(b) Wages
(c) Interest
(d) None of these.

Answer

Answer: (c) Interest

Questions 49.
Which factors help in the determination of equilibrium price:
(a) Demand
(b) Supply
(c) Both (a) and (b)
(d) None of the above.

Answer

Answer: (d) None of the above

Questions 50.
Which among the following statement is not true:
(a) Demand of labor is done by the producer
(b) Demand of labor depends open its productivity
(c) Marginal productivity of a labor is his maximum wages
(d) All of the above.

Answer

Answer: (d) All of the above

Questions 51.
Excess demand can be seen in:
(a) Fixed market price
(b) Lowest fixed price
(c) Highest fixed price
(d) None of these.

Answer

Answer: (c) Highest fixed price

Fill in the blanks:

1. The price on which demand and supply are equal, is called ………………..

Answer

Answer: Normal

2. Price discrimination is possible in ……………….. market.

Answer

Answer: Monopolistic

3. Increase in total revenue by the sale of additional unit of the commodity is called ………………..

Answer

Answer: Marginal revenue

4. If the supply of any good remains unchanged, and with the increase in demand its ……………….. increases.

Answer

Answer: Increase

5. In perfect competition market, a firm is a ………………..

Answer

Answer: Price takes

6. Price ceiling is done by the ………………..

Answer

Answer: Government

7. In the ………………..period demand force is more effective.

Answer

Answer: Short period

8. In ………………..market there should be two or more two firms.

Answer

Answer: Oligopoly

9. A group of firms is called ………………..

Answer

Answer: Industry

10. The market for petrol is ………………..

Answer

Answer: International.

11. Price range and price floor are also called ………….. prices.

Answer

Answer: Administrative

12. The other name of minimum determined price is ………………..

Answer

Answer: Price floor

13. According to modem view point, rent increases because of land.

Answer

Answer: Scarcity

14. ………….. presented FAD principle.

Answer

Answer: Prof. Amartya Sen

15. …………….. Instrument demand is demand.

Answer

Answer: Derivative.

State true or false:

1. Market of bricks is provincial.

Answer

Answer: False

2. Normal price is imaginary.

Answer

Answer: True

3. Imperfect competition is a practical approach.

Answer

Answer: True

4. The forces of demand and supply remains in the state of equilibrium for a long period.

Answer

Answer: False

5. Among the forces of demand and supply, either of the two determines the price of the goods.

Answer

Answer: False

6. Under perfect competition firms themselves determine the price.

Answer

Answer: False

7. Under monopolistic competition demand curve is uncertain.

Answer

Answer: True.

8. Main objective of price range determination is to earn profit.

Answer

Answer: False

9. The price floor is also called lowest fixed price.

Answer

Answer: True

10. In independent market system, prices of goods and services are determined by the forces of demand and supply.

Answer

Answer: True

11. Price range and price floor differ from market oriented prices.

Answer

Answer: True.

Match the following:

1.

‘A’‘B’
1. Gold(a) National market
2. Clothes(b) Local market
3. Normal profit(c) International market
4. Equilibrium of firm(d) AR = MR
5. Milk(e) Zero profit.
Answer

Answer:

‘A’‘B’
1. Gold(c) International market
2. Clothes(a) National market
3. Normal profit(e) Zero profit.
4. Equilibrium of firm(d) AR = MR
5. Milk(b) Local market

2.

‘A’‘B’
1. Price range(a) Excess supply
2. Price floor(b) Public Distribution System
3. Problem of price floor(c) Minimum wage provision.
Answer

Answer:

‘A’‘B’
1. Price range(b) Public Distribution System
2. Price floor(c) Minimum wage provision.
3. Problem of price floor(a) Excess supply

We hope the given NCERT MCQ Questions for Class 11 Economics Chapter 5 Market Equilibrium with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 11 Economics Market Equilibrium MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Economics Chapter 1 Indian Economy on the Eve of Independence with Answers

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Check the below NCERT MCQ Questions for Class 12 Economics Chapter 1 Indian Economy on the Eve of Independence with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Indian Economy on the Eve of Independence Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-12-economics-chapter-1-part-b/

Indian Economy on the Eve of Independence Class 12 MCQs Questions with Answers

Indian Economy on the Eve of Independence MCQ Class 12 Question 1.
In how many sectors is the occupational structure of India is divided?
(A) One
(B) Two
(C) Three
(D) Four

Answer

Answer: (C) Three

MCQ Of Indian Economy on the Eve of Independence Class 12 Question 2.
What is another name for the service sector?
(A) Tertiary
(B) Primary
(C) Secondary
(D) Agriculture

Answer

Answer: (A) Tertiary

Indian Economy on the Eve of Independence Class 12 MCQ Question 3.
What was the nature of the Indian economy on the eve of independence?
(A) Stagnant
(B) Backward
(C) Underdeveloped
(D) All of these

Answer

Answer: (D) All of these

Indian Economy on the Eve of Independence MCQ Questions Class 12 Question 4.
What was the life expectancy at birth in India on the eve of Independence?
(A) 44 years
(B) 50 years
(C) 60 years
(D) All of these

Answer

Answer: (A) 44 years

MCQ On Indian Economy on the Eve of Independence Class 12 Question 5.
What was the growth rate of per capita income in India on the eve of Independence?
(A) 0.9%
(B) 0.5%
(C) 1.2%
(D) 3%

Answer

Answer: (B) 0.5%

MCQs Of Indian Economy on the Eve of Independence Class 12 Question 6.
Which of the following activities is included in the primary sector?
(A) Agriculture
(B) Services
(C) Industries
(D) All of these

Answer

Answer: (A) Agriculture

Indian Economy Class 12 MCQ Questions Chapter 1 Question 7.
In which of the following sectors is manufacturing activity included?
(A) Primary
(B) Tertiary
(C) Secondary
(D) All of these

Answer

Answer: (C) Secondary

Indian Economic Development Class 12 MCQ Chapter 1 Question 8.
Where was the first iron and steel company established?
(A) Kolkata
(B) Jamshedpur
(C) Patna
(D) Ranchi

Answer

Answer: (B) Jamshedpur

Class 12 Economics Chapter 1 Indian Economy on the Eve of Independence MCQ Question 9.
What is the tax or duty on imports called?
(A) Tariff
(B) Quota
(C) Export
(D) None of these

Answer

Answer: (A) Tariff

MCQ Indian Economy on the Eve of Independence Chapter 1 Class 12 Question 10.
Which of the following was the major occupation on the eve of independence?
(A) Industry
(B) Services
(C) Agriculture
(D) None of these

Answer

Answer: (C) Agriculture

II. Fill in the blanks with the correct answer.

Indian Economy on the Eve of Independence MCQs Class 12 Chapter 1 Question 1.
The country’s growth of aggregate real output was less than ______ during the first half of the twentieth century.

Answer

Answer: two percent

Ch 1 Indian Economy Class 12 MCQ Question 2.
The Indian economy was a/an _______ economy at the time of independence.

Answer

Answer: agrarian

MCQ Of Chapter 1 Indian Economy on the Eve of Independence Question 3.
______ of agriculture increased the burden of revenue on farmers.

Answer

Answer: Commercialisation

Indian Economy MCQ Class 12 Chapter 1 Question 4.
The distribution of the working population in different sectors of the economy offers a glimpse of ______ structure.

Answer

Answer: occupational

Indian Economy on the Eve of Independence MCQ Pdf Question 5.
The second stage of demographic transition began after ________ in India.

Answer

Answer: 1921

MCQ Of Chapter 1 Indian Economy Class 12 Question 6.
Indian economy served as a source of _______ for the British industry and a market for its finished goods.

Answer

Answer: raw material

Question 7.
______ were developed by the British raj as a means to enlarge the size of the market for the British goods.

Answer

Answer: Railways

Question 8.
The British introduced the railways in India in ________

Answer

Answer: 1850

Question 9.
The ________ sector accounted for 17.2 percent of the working population on the eve of Independence.

Answer

Answer: tertiary/service

Question 10.
India’s first official census was undertaken in _________

Answer

Answer: 1881

III. State whether the following statements are true or false.

Question 1.
India was a prosperous and wealthy economy prior to the advent of British rule.

Answer

Answer: True

Question 2.
The colonial rule destroyed India’s traditional handicraft industry.

Answer

Answer: True

Question 3.
The economic policies pursued by the colonial government in India were concerned more with the protection and promotion of the economic interests of India.

Answer

Answer: False

Question 4.
India was reduced to an importer of primary products.

Answer

Answer: False

Question 5.
Land settlement introduced by the colonial government resulted in stagnation in the agricultural sector.

Answer

Answer: True

Question 6.
The contribution of the new industrial sector to the Gross Domestic Product (GDP) expanded significantly during British rule.

Answer

Answer: False

Question 7.
The secondary sector accounted for only 10.1 percent of the working population on the eve of independence.

Answer

Answer: True

Question 8.
British colonial rule positively affected the structure, composition, and volume of India’s foreign trade.

Answer

Answer: False

Question 9.
Before 1921, India was in the second stage of demographic transition.

Answer

Answer: False

Question 10.
The aim of developing postal and telegraph was to enhance the efficiency of British administration.

Answer

Answer: True

IV. Match the following.

Question 1.

Column-IColumn-II
1. Primary sector(A) Manufacturing sector
2. Secondary sector(B) Service sector
3. Tertiary sector(C) Agriculture sector
4. Introduction of Railway in India(D) 1921
5. First official Census in India(E) 1820
6. Year of Great Divide(F) 1881
Answer

Answer:

Column-IColumn-II
1. Primary sector(C) Agriculture sector
2. Secondary sector(A) Manufacturing sector
3. Tertiary sector(B) Service sector
4. Introduction of Railway in India(E) 1820
5. First official Census in India(F) 1881
6. Year of Great Divide(D) 1921

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 1 Indian Economy on the Eve of Independence with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Indian Economy on the Eve of Independence MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 11 Economics Chapter 4 The Theory of the Firm under Perfect Competition with Answers

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Check the below NCERT MCQ Questions for Class 11 Economics Chapter 4 The Theory of the Firm under Perfect Competition with Answers Pdf free download. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. We have provided The Theory of the Firm under Perfect Competition Class 11 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-11-economics-chapter-4/

The Theory of the Firm under Perfect Competition Class 11 MCQs Questions with Answers

MCQ Questions For Class 11 Economics Chapter 4 Question 1.
The concept of supply curve is relevant only for?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

Answer

Answer: (c) Perfect competition

MCQ Class 11 Economics Chapter 4 Question 2.
Which of the following is an example of perfect competition?
(a) Agriculture
(b) Banking sector
(c) Car manufacturing
(d) Railways

Answer

Answer: (a) Agriculture

Class 11 Economics Chapter 4 MCQ Question 3.
Can MR be negative or zero.
(a) Yes
(b) Can’t say
(c) No
(d) Only negative but not zero

Answer

Answer: (a) Yes

Chapter 4 Economics Class 11 MCQ Question 4.
If all units are sold at same price how will it affect AR and MR?
(a) B. AR > MR
(b) A. AR = MR
(c) D. AR + MR = 0
(d) C. AR < MR

Answer

Answer: (b) A. AR = MR

A Firm Under Perfect Competition MCQ Chapter 4 Question 5.
What is price line
(a) The demand curve
(b) The AR curve
(c) The MR curve
(d) The TR curve

Answer

Answer: (c) The MR curve

MCQ On Perfect Competition Chapter 4 Class 11 Question 6.
Can TR be a horizontal Straight line?
(a) May be
(b) Can’t say
(c) Yes
(d) No

Answer

Answer: (d) No

Under Perfect Competition MCQ Chapter 4 Question 7.
The revenue of a firm per unit sold is its
(a) MR
(b) AR
(c) TR
(d) TC

Answer

Answer: (b) AR

Ch 4 Economics Class 11 MCQ Question 8.
The product of AR and price at every unit sold is the firm’s
(a) TR
(b) TVC
(c) MR
(d) AR

Answer

Answer: (a) TR

Question 9.
In perfect competition, in the long run, ______________?
(a) There are large profits for the firm
(b) There is no profit and no loss for the firm
(c) There are negligible profits for the firm
(d) There are large losses for the firm

Answer

Answer: (b) There is no profit and no loss for the firm

Question 10.
In perfect competition, when the marginal revenue and marginal cost are equal, profit is?
(a) Maximum
(b) Zero
(c) Negative
(d) Average

Answer

Answer: (a) Maximum

Question 11.
In perfect competition, a firm earns profit when __________ exceeds the _____________?
(a) Total revenue, total fixed cost
(b) Marginal cost, marginal revenue
(c) Average revenue, average cost
(d) Total cost, total revenue

Answer

Answer: (c) Average revenue, average cost

Question 12.
In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
(a) Average
(b) Total
(c) Variable
(d) Marginal

Answer

Answer: (a) Average

Question 13.
In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in_________?
(a) Reduction in supply
(b) No change in price
(c) Fall in price
(d) Rise in price

Answer

Answer: (c) Fall in price

Question 14.
Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
(a) Monopolistic competition
(b) Monopoly
(c) Oligopoly
(d) Perfect competition

Answer

Answer: (d) Perfect competition

Question 15.
In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
(a) Average revenue
(b) Average cost
(c) Marginal revenue
(d) Marginal cost

Answer

Answer: (c) Marginal revenue

Question 16.
A firm can sell as much as it wants at the market price. The situation is related to?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

Answer

Answer: (c) Perfect competition
Explanation:
Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a “commodity” or “homogeneous”). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.

Question 17.
Globalization has made Indian Market as?
(a) Seller market
(b) Buyer market
(c) Monopsony market
(d) Monopoly market

Answer

Answer: (b) Buyer market
Explanation:
Globalisation is the rapid integration or interconnection between countries mostly on the economic plane. In other words Globalisation means integrating our economy with the world economy. Movement of people between countries increases due to globalisation.

Question 18.
When AR = Rs. 10 and AC = Rs. 8, the firm makes?
(a) Gross profit
(b) Super normal profit
(c) Normal profit
(d) Net profit

Answer

Answer: (b) Super normal profit
Explanation:
Super normal profit is defined as extra profit above that level of normal profit.
Here the firm earns profit of Rs. 2 over the cost occurred.

Question 19.
A competitive firm in the short run incurs losses. The firm continues production, if?
(a) P = AVC
(b) P > AVC
(c) P < AVC
(d) P > = AVC

Answer

Answer: (d) P > = AVC
Explanation:
With loss minimization, price exceeds average variable cost but is less than average total cost at the quantity that equates marginal revenue and marginal cost. In this case, the firm incurs a smaller loss by producing some output than by not producing any output.

Question 20.
In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?
(a) Monopolist competition
(b) Perfect competition
(c) Oligopoly
(d) Monopoly

Answer

Answer: (b) Perfect competition
Explanation:
Perfect competition is an industry structure in which there are many firms producing homogeneous products. None of the firms are large enough to influence the industry. In the long-run, companies that are engaged in a perfectly competitive market earn zero economic profits.

The long-run equilibrium point for a perfectly competitive market occurs where the demand curve (price) intersects the marginal cost (MC) curve and the minimum point of the average cost (AC) curve. Since they are the price takers and the price remains constant so does the AC of production.

Question 21.
While a seller under perfect competition equates price and MC to maximize profits a monopolist should equate?
(a) MR and MC
(b) AR and MR
(c) AR and MC
(d) TC and TR

Answer

Answer: (a) MR and MC
Explanation:
In a monopolistic market, there is only one firm that produces a product. There is absolute product differentiation because there is no substitute.

The marginal cost of production is the change in the total cost that arises when there is a change in the quantity produced.

The marginal revenue is the change in the total revenue that arises when there is a change in the quantity produced a firm maximizes its total profit by equating marginal cost to marginal revenue and solving for the price of one product and the quantity it must produce.

Question 22.
Marginal revenue in any competitive situation is?
(a) TRn – Pn-1
(b) TRn – TRn-1
(c) TRn / Qn-1
(d) None of above

Answer

Answer: (b) TRn – TRn-1
Explanation:
Marginal revenue (MR) can be defined as additional revenue gained from the additional unit of output. Marginal revenue is the change in total revenue which results from the sale of one more or one less unit of output.

Formula:
Total revenue = TR
Total Unit = n
Total Unit less one unit = n – 1
MR = TRn -TRn-1

Question 23.
A rational consumer is a person who?
(a) Has perfect knowledge of the market
(b) Is not influenced by persuasive advertising
(c) Behaves at all times, other things being equal, in a judicious manner
(d) Knows the prices of goods in different market and buys the cheapest

Answer

Answer: (a) Has perfect knowledge of the market
Explanation:
A rational consumer is considered to be that person who makes rational consumption decisions.

In other words, the consumer who makes his choices after considering all the other alternative goods (and services) available in the market is called a rational consumer.

Question 24.
In which of the following types of market structures, are resources, assumed to be mobile?
(a) Oligopoly
(b) Perfect competition
(c) Monopolistic competition
(d) Monopoly

Answer

Answer: (b) Perfect competition
Explanation:
Pure or perfect competition is a theoretical market structure in which the following criteria are met:
1. All firms sell an identical product (the product is a “commodity” or “homogeneous”).
2. All firms are price takers (they cannot influence the market price of their product).
3. Market share has no influence on prices.
4. Buyers have complete or “perfect” information in the past, present and future about the product being sold and the prices charged by each firm.
5. Resources for such a labor are perfectly mobile.
6. Firms can enter or exit the market without cost.

Question 25.
At producer’s equilibrium when MR = MC, the firm earns only
(a) Abnormal loss
(b) Abnormal profit
(c) Normal Profit
(d) Normal loss

Answer

Answer: (c) Normal Profit

Question 26.
Beyond producer’s equilibrium when MR<MC, the firm earns only
(a) Abnormal profit
(b) Normal loss
(c) Abnormal loss
(d) Normal Profit

Answer

Answer: (c) Abnormal loss
Explanation:
Marginal Cost < Marginal Revenue means abnormal loss situation, where the total revenue of a business does not cover total cost incurred for the business, due to which the profits of the business are below normal limits.

Question 27.
Before producer’s equilibrium when MR > MC, the firm earns only
(a) Normal Profit
(b) Normal loss
(c) Abnormal loss
(d) Abnormal profit

Answer

Answer: (d) Abnormal profit
Explanation:
If a firm makes more than normal profit it is called super-normal profit. Super normal profit is also called economic profit, and abnormal profit, and is earned when total revenue is greater than the total costs.
Total profits = total revenue (TR) – total costs (TC)
Abnormal Profit = MR > MC

Question 28.
A producer’s equilibrium is a situation when
(a) AR = MR
(b) MR = MC
(c) AR = AC
(d) TR = TC

Answer

Answer: (b) MR = MC
Explanation:
Producer’s equilibrium refers to a situation where profits are maximised, i.e., the difference between total revenue and total cost is maximised, or in cases of losses, the difference is minimised, so as to minimise losses.

Question 29.
The elasticity at a point on a straight line supply curve passing through the origin will be
(a) 3.0
(b) 1.0
(c) 4.0
(d) 2.0

Answer

Answer: (b) 1.0
Explanation:
Regardless of the gradient of the linear supply curve or its position on the supply curve, the PES of a linear supply curve that passes through the origin is always equal to 1. Therefore, if the supply curve originates with P = 0 and Q = 0, the elasticity will always be 1.

Formula:
% Change in quantity
% Change in price.

Question 30.
The elasticity at a point on a straight-line supply curve passing through the origin making an angle of 45° will be
(a) 4.0
(b) 2.0
(c) 3.0
(d) 1.0

Answer

Answer: (d) 1.0

Question 31.
Under perfect competition the number of firms
(a) Is about 10
(b) Are many but limited
(c) Is large
(d) Is limited

Answer

Answer: (c) Is large

Question 32.
When ___________, the firms are earning just normal profit:
(a) AC = AR
(b) MC = AC
(c) AR = MR
(d) MC = MR

Answer

Answer: (a) AC = AR
Explanation:
AC = AR means the firm’s cost and revenue are equal which means the firm does not earn any profit or no loss, which means the firm is earning normal profit.

Question 33.
Which of the following is the condition for equilibrium of a firm?
(a) MC curve must cut MR curve from above
(b) MR = MC
(c) None of above
(d) Both of these

Answer

Answer: (b) MR = MC
Explanation:
A firm is in equilibrium when it is satisfied with its existing level of output. The firm wills, in this situation produce the level of output which brings in greatest profit or smallest loss. When this situation is reached, the firm is said to be in equilibrium.

Marginal cost should be equal to marginal revenue, then only the firm can be called at equilibrium.

Question 34.
In perfect competition, since the firm is a price taker, the ________ curve is straight line
(a) Total cost
(b) Marginal cost
(c) Total revenue
(d) Marginal revenue

Answer

Answer: (d) Marginal revenue
Explanation:
Marginal revenue is the extra revenue generated when a perfectly competitive firm sells one more unit of output. The marginal revenue received by a firm is the change in total revenue divided by the change in quantity.

Perfect competition is a market structure with a large number of small firms, each selling identical goods. Perfectly competitive firms have perfect knowledge and perfect mobility into and out of the market. These conditions mean perfectly competitive firms are price takers, they have no market control and receive the going market price for all output sold.

Since they are the price takers and have no control over price but just the production, so even if they increase their quantity of production, still the price will remain constant and so does the marginal revenue.

Question 35.
Other name by which average revenue curve known:
(a) Indifference curve
(b) Profit curve
(c) Average cost curve
(d) Demand curve

Answer

Answer: (d) Demand curve
Explanation:
Average revenue curve is often called the demand curve due to its representation of the product’s demand in the market. Each point on the curve represents the price of the product in the market. Price determines the demand for a product, hence Average revenue curve is also demand curve. Assuming it is a perfect competitive market.

We hope the given NCERT MCQ Questions for Class 11 Economics Chapter 4 The Theory of the Firm under Perfect Competition with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 11 Economics The Theory of the Firm under Perfect Competition MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 12 Economics Chapter 5 Government Budget and the Economy with Answers

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Check the below NCERT MCQ Questions for Class 12 Economics Chapter 5 Government Budget and the Economy with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-12-economics-chapter-5-part-a/

Government Budget and the Economy Class 12 MCQs Questions with Answers

Government Budget Class 12 MCQ Chapter 5 Question 1.
An annual statement of the estimated receipts and expenditure of the government over the fiscal year is known as
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure

Answer

Answer: (A) Budget

Government Budget And The Economy Class 12 MCQ Question 2.
Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax

Answer

Answer: (D) Wealth tax

Govt Budget Class 12 MCQ Chapter 5 Question 3.
What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these

Answer

Answer: (A) 1 April to 31 March

Government Budget MCQ Class 12 Chapter 5 Question 4.
When government spends more than it collects by way of revenue, it incurs ______
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure

Answer

Answer: (B) Budget deficit

Government Budget And The Economy MCQ Chapter 5 Question 5.
The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings

Answer

Answer: (D) Borrowings

MCQ On Government Budget Class 12 Chapter 5 Question 6.
Which of the following is the component of a budget?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these

Answer

Answer: (C) Both of these

Government Budget MCQ Chapter 5 Question 7.
What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these

Answer

Answer: (B) Fiscal Budget

MCQ Of Government Budget Class 12 Chapter 5 Question 8.
How many types of revenue receipts are there?
(A) 2
(B) 3
(C) 4
(D) 6

Answer

Answer: (A) 2

Government Budget Class 12 MCQs Chapter 5 Question 9.
The amount collected by the government as taxes and duties is known as _______
(A) Capital receipts
(B) Tax revenue receipts
(C) Non-tax revenue receipts
(D) All of these

Answer

Answer: (B) Tax revenue receipts

Class 12 Government Budget MCQ Chapter 5 Question 10.
The amount collected by the government in the form of interest, fees, and dividends is known as ________
(A) Tax-revenue receipts
(B) Capital receipts
(C) Non-tax revenue receipts
(D) None of these

Answer

Answer: (C) Non-tax revenue receipts

MCQ Of Government Budget Chapter 5 Question 11.
Borrowing in the government budget is:
(A) Revenue deficit
(B) Fiscal deficit
(C) Primary deficit
(D) Deficit in taxes

Answer

Answer: (B) Fiscal deficit

MCQ Of Chapter 5 Government Budget Class 12 Question 12.
The non-tax revenue in the following is:
(A) Export duty
(B) Import duty
(C) Dividends
(D) Excise

Answer

Answer: (C) Dividends

Government Budget And Economy Class 12 MCQ Chapter 5 Question 13.
The primary deficit in a government budget will be zero, when _______
(A) Revenue deficit is zero
(B) Net interest payments are zero
(C) Fiscal deficit is zero
(D) Fiscal deficit is equal to interest payment

Answer

Answer: (D) Fiscal deficit is equal to interest payment

Class 12 Economics Government Budget MCQ Chapter 5 Question 14.
Direct tax is called direct because it is collected directly from:
(A) The producers on goods produced
(B) The sellers on goods sold
(C) The buyers of goods
(D) The income earners

Answer

Answer: (D) The income earners

MCQ On Government Budget Class 12 Pdf Chapter 5 Question 15.
Financial Year in India is:
(a) April I to March 31
(b) January 1 to December 31
(c) October 1 to September 30
(d) None of the above

Answer

Answer: (a) April I to March 31

MCQ Of Govt Budget Class 12 Chapter 5 Question 16.
Which objectives government attempts to obtain by Budget
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above

Answer

Answer: (d) All the above

Budget MCQ Class 12 Chapter 5 Question 17.
Which is a component of Budget?
(a) Budget Receipts
(b) Budget Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Government Budget Class 12 MCQ Questions Chapter 5 Question 18.
Which is a component of the Budget Receipt?
(a) Revenue Receipt
(b) Capital Receipt
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (c) Both (a) and (b)

Budget Class 12 MCQ Chapter 5 Question 19.
Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these

Answer

Answer: (d) All of these

Government Budget MCQs Chapter 5 Class 12 Question 20.
Which is included in the Direct Tax?
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Duty

Answer

Answer: (c) Both (a) and (b)

MCQs Of Government Budget Chapter 5 Class 12 Question 21.
Which is included in Indirect Tax?
(a) Excise Duty
(b) Sales Tax
(c) Both (a) and (b)
(d) Wealth Tax

Answer

Answer: (c) Both (a) and (b)

Question 22.
The expenditures which do not create assets for the government is called :
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Revenue Expenditure

Question 23.
Direct tax is :
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (c) Both (a) and (b)

Question 24.
In India, one rupee note is issued by:
(a) Reserve Bank of India
(b) Finance Ministry of Government of India
(c) State Bank of India
(d) None of these

Answer

Answer: (b) Finance Ministry of Government of India

Question 25.
Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these

Answer

Answer: (b) Capital Receipts and Capital Expenditure

Question 26.
Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these

Answer

Answer: (d) All of these

Question 27.
Which type of expenditure is made in bridge construction?
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Capital Expenditure

Question 28.
Which of the following budget is suitable for developing economies?
(a) Deficit Budget
(b) Balanced Budget
(c) Surplus Budget
(d) None of these

Answer

Answer: (a) Deficit Budget

Question 29.
What is the duration of a Budget?
(a) Annual
(b) Two Years
(c) Five Years
(d) Ten Years

Answer

Answer: (a) Annual

Question 30.
Which of the following is included in fiscal policy?
(a) Public Expenditure
(b) Tax
(c) Public Debt
(d) All of these

Answer

Answer: (d) All of these

Question 31.
Which of the following is the capital expenditure of the government?
(a) Interest Payment
(b) Purchase of House
(c) Expenses on Machinery
(d) All of the above

Answer

Answer: (a) Interest Payment

Question 32.
The budget may include:
(a) Revenue Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) All of these

Answer

Answer: (d) All of these

Question 33.
Which of the following statement is true?
(a) Fiscal deficit is the difference between total expenditure and total receipts
(b) Primary deficit is the difference between total receipt and interest payments
(c) Fiscal deficit is the sum of primary deficit and interest payment
(d) All of these

Answer

Answer: (c) Fiscal deficit is the sum of primary deficit and interest payment

Question 34.
Budget:
(a) is a description of income-expenditure of government
(b) is a document of the economic policy of the government
(c) is a description of non-programs of the government
(d) All of these

Answer

Answer: (d) All of these

Question 35.
In an unbalanced budget:
(a) Income is greater than expenditure
(b) Expenditure is higher relative to income
(c) Deficit is covered by loans or printing of notes
(d) Only (b) and (c)

Answer

Answer: (d) Only (b) and (c)

Question 36.
Which is included in indirect tax?
(a) Income tax
(b) Wealth tax
(c) Excise Duty
(d) Gift tax

Answer

Answer: (c) Excise Duty

Question 37.
Which one of the following is a pair of direct tax?
(a) Excise duty and Wealth Tax
(b) Service Tax and Income Tax
(c) Excise Duty and Service Tax
(d) Wealth Tax and Income Tax

Answer

Answer: (d) Wealth Tax and Income Tax

Question 38.
Which of the following is not a revenue receipt?
(a) Recovery of Loans
(b) Foreign Grants
(c) Profits of Public Enterprise
(d) Wealth Tax

Answer

Answer: (a) Recovery of Loans

Question 39.
Which of the following is a correct measure of the primary deficit?
(a) Fiscal deficit minus revenue deficit
(b) Revenue deficit minus interest payments
(c) Fiscal deficit minus interest payments
(d) Capital expenditure minus revenue expenditure

Answer

Answer: (c) Fiscal deficit minus interest payments

Question 40.
The duration of the Government budget is:
(a) 5 years
(b) 2 years
(c) 1 year
(d) 10 years

Answer

Answer: (c) 1 year

Question 41.
Budget is presented in the Parliament by:
(a) Prime Minister
(b) Home Minister
(c) Finance Minister
(d) Defence Minister

Answer

Answer: (c) Finance Minister

Question 42.
Budget speech in Lok Sabha is given by:
(a) President
(b) Prime Minister
(c) Finance Minister
(d) Home Minister

Answer

Answer: (c) Finance Minister

Question 43.
Professional tax is imposed by:
(a) Central Government
(b) State Government
(c) Municipal Corporation
(d) Gram Panchayat

Answer

Answer: (b) State Government

Question 44.
From the following which is included in the direct tax:
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Tax

Answer

Answer: (c) Both (a) and (b)

Question 45.
Who issues 1 rupee note in India:
(a) Reserve Bank of India
(b) Finance Ministry of India
(c) State Bank of India
(d) None of these

Answer

Answer: (b) Finance Ministry of India

Fill in the blanks:

Question 1.
A deficit budget is that in which total expenditure is ________ total receipts.

Answer

Answer: greater than

Question 2.
Revenue deficit is that in which revenue receipts are ________ revenue expenditure.

Answer

Answer: less than

Question 3.
_______ tax is that in which the final burden of the tax fall on the person who pays it.

Answer

Answer: Direct

Question 4.
Tax is a legally compulsory payment imposed by the _______ on income and property of persons and companies.

Answer

Answer: Government

Question 5.
Recovery of loan is treated as capital receipt because it leads to __________

Answer

Answer: reduction of assets

Question 6.
Primary Deficit = Fiscal Deficit minus __________

Answer

Answer: Interest on Debt

Question 7.
________ are levied on goods and services.

Answer

Answer: Indirect taxes

Question 8.
_________ does not have any impact on the asset-liability status of the government.

Answer

Answer: Revenue budget

Question 9.
The government can influence the allocation of resources through the implementation of appropriate _________

Answer

Answer: fiscal policy

Question 10.
__________ is a document containing income and expenditure of the government.

Answer

Answer: Budget

Question 11.
Income tax is _________ tax.

Answer

Answer: Direct

Question 12.
_________ tax is levied on the value of the goods.

Answer

Answer: Advalorem

Question 13.
Service tax is levied by the ________

Answer

Answer: Central

Question 14.
_________ budget is considered good for the country.

Answer

Answer: Deficit

Question 15.
Finance bill contains _________ proposals.

Answer

Answer: Tax

Question 16.
Government budget is presented on the last day of _________

Answer

Answer: February

State true or false :

Question 1.
Public goods are collectively consumed.

Answer

Answer: True

Question 2.
There is a feasible way of excluding anyone from enjoying the benefits of public goods.

Answer

Answer: False

Question 3.
The three functions of allocation, redistribution, and stabilization are operated through the expenditure and receipts of the government.

Answer

Answer: True

Question 4.
The deficit decreases in a recession and increases in a boom, even without any change in fiscal policy.

Answer

Answer: False

Question 5.
Indirect taxes are not convenient to realise.

Answer

Answer: False

Question 6.
Payment of salaries to the government employees is a capital payment.

Answer

Answer: False

Question 7.
Expenditure made on the establishment of the metro rail line in Delhi is a capital expenditure.

Answer

Answer: True

Question 8.
Public borrowing is a capital receipt.

Answer

Answer: True

Question 9.
Recovery of loan is a revenue receipt.

Answer

Answer: False

Question 10.
Service tax is a direct tax.

Answer

Answer: False

Question 11.
Grants by the government are treated as revenue expenditure.

Answer

Answer: True

Question 12.
Excess of capital expenditure over capital receipt is called revenue deficit.

Answer

Answer: False

Question 13.
A deficit budget is not considered a good budget.

Answer

Answer: False

Question 14.
Electricity tax is levied by the State Government.

Answer

Answer: True

Question 15.
The budget speech is given by the Finance Minister.

Answer

Answer: True

Question 16.
Central excise duty is a direct tax.

Answer

Answer: False

Question 17.
The interest payment is a planned item.

Answer

Answer: False

Question 18.
During deflation surplus budget is made.

Answer

Answer: True

Question 19.
The rail budget is generally not included in the annual budget.

Answer

Answer: True

Match the following

Question 1.

‘A’‘B’
1. Income and expenditure of the government(a) 31 March
2. First of all finance bill is presented in the(b) Budget
3. Budget is presented on(c) Details about income and expenditure
4. Aim or Objective of the budget(d) Lok sabha
5. Main feature of the budget(e) Economic development.
Answer

Answer:

‘A’‘B’
1. Income and expenditure of the government(b) Budget
2. First of all finance bill is presented in the(d) Lok sabha
3. Budget is presented on(a) 31 March
4. Aim or Objective of the budget(e) Economic development.
5. Main feature of the budget(c) Details about income and expenditure

Question 2.

Column-IColumn-II
1. Surplus budget(A) Revenue receipts > Revenue expenditure
2. Deficit budget(B) Fiscal deficit – interest payments
3. Revenue deficit(C) Govt. Expenditure < Govt. Receipts
4. Fiscal deficit(D) Income tax, corporate profit tax
5. Primary deficit(E) Expenditure on roads and health
6. Examples of direct tax(F) Govt. Expenditure > Govt. Receipts
7. Examples of indirect tax(G) Loans granted to state governments
8. Examples of development expenditure(H) Total expenditure > total receipts
9. Examples of non-development expenditure(I) Sale tax, excise duty
10. Examples of capital expenditure(J) Sales tax, Income tax
11. Sources of tax revenue(K) Expenditure on administration and defence
Answer

Answer:

Column-IColumn-II
1. Surplus budget(C) Govt. Expenditure < Govt. Receipts
2. Deficit budget(F) Govt. Expenditure > Govt. Receipts
3. Revenue deficit(A) Revenue receipts > Revenue expenditure
4. Fiscal deficit(H) Total expenditure > total receipts
5. Primary deficit(B) Fiscal deficit – interest payments
6. Examples of direct tax(D) Income tax, corporate profit tax
7. Examples of indirect tax(I) Sale tax, excise duty
8. Examples of development expenditure(E) Expenditure on roads and health
9. Examples of non-development expenditure(K) Expenditure on administration and defence
10. Examples of capital expenditure(G) Loans granted to state governments
11. Sources of tax revenue(J) Sales tax, Income tax

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