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MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers

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Check the below NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided National Income Accounting 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-a/

National Income Accounting Class 12 MCQs Questions with Answers

National Income MCQ Class 12 Chapter 2 Question 1.
GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad

Answer

Answer: (A) GDPMP – Depreciation

MCQ On National Income Class 12 Question 2.
NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (A) GDPMP – Depreciation

MCQs On National Income Chapter 2 Class 12 Question 3.
NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these

Answer

Answer: (D) All of these

MCQ On National Income Class 12 Chapter 2 Question 4.
GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes

Answer

Answer: (A) GDPMP – Net indirect taxes

MCQ On National Income Pdf Chapter 2 Question 5.
NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these

Answer

Answer: (B) GDPFC – Depreciation

National Income MCQs Chapter 2 Economics Question 6.
NNPFC =
(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these

Answer

Answer: (D) All of these

National Income Accounting MCQ Chapter 2 Class 12 Question 7.
Which of the following is the method of measuring National Income?
(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these

Answer

Answer: (D) All of these

National Income Class 12 MCQ Chapter 2 Question 8.
Why are the intermediate goods not included in the National Income while measuring National Income?
(A) To avoid double accounting
(B) It decreases income
(C) Intermediate goods are not good
(D) All of these

Answer

Answer: (A) To avoid double accounting

Question 9.
Who had made the first attempt at National Income Accounting?
(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King

Answer

Answer: (D) Gregory King

Question 10.
Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these

Answer

Answer: (A) Money income

Question 11.
Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income

Answer

Answer: (B) Real income

Question 12.
Which of the following items are excluded from GNP measurement?
(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these

Answer

Answer: (D) All of these

Question 13.
The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these

Answer

Answer: (a) The Principle of National Income

Question 14.
Macro Economics Studies:
(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market

Answer

Answer: (a) Employment opportunities in the economy

Question 15.
General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) Macro Economics

Question 16.
Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these

Answer

Answer: (c) Macro Economics

Question 17.
Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these

Answer

Answer: (c) Capital Formation

Question 18.
Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit

Answer

Answer: (a) Wealth

Question 19.
Which one of the following is included in circular flow?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these

Answer

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

Question 20.
Which one of the following is included in ‘Stock’?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above

Answer

Answer: (d) All the above

Question 21.
Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these

Answer

Answer: (b) Investment

Question 22.
Which of the following is included in real flow?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these

Answer

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

Question 23.
Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above

Answer

Answer: (d) All the above

Question 24.
Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these

Answer

Answer: (d) All of these

Question 25.
Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above

Answer

Answer: (c) Family, Firm, Government, Foreign Sector

Question 26.
Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these

Answer

Answer: (c) C + I + G + (X-M)

Question 27.
The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these

Answer

Answer: (d) All the these

Question 28.
For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these

Answer

Answer: (d) All of these

Question 29.
Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry

Answer

Answer: (c) Communication

Question 30.
Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation

Answer

Answer: (a) Capital

Question 31.
The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these

Answer

Answer: (a) GDPMP

Question 32.
Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation

Answer

Answer: (c) NNP = GNP – Depreciation

Question 33.
GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above

Answer

Answer: (b) GDPMp + Net Factor Income from Abroad

Question 34.
NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above

Answer

Answer: (a) GNPMp – Depreciation

Question 35.
Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these

Answer

Answer: (a) GNPMp

Question 36.
NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation

Answer

Answer: (b) GNPMP – Indirect Tax + Subsidy

Question 37.
Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these

Answer

Answer: (a) National Income

Question 38.
Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit

Answer

Answer: (d) Rent, Wage, Salary, Interest, Profit

Question 39.
What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these

Answer

Answer: (b) Depreciation

Question 40.
Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes

Answer

Answer: (a) Disposable Income = Personal Income – Direct Taxes

Question 41.
If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP

Answer

Answer: (b) GDP > GNP

Question 42.
The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product

Answer

Answer: (c) Gross Domestic Product

Question 43.
Which method is adopted in measuring National Income?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these

Answer

Answer: (d) All of these

Question 44.
Which sector is included in an economy?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these

Answer

Answer: (d) All of these

Question 45.
Which of the following is not included in the calculation of Gross National Product?
(a) Purchase and Sale of Old commodities
(b) Intermediate Commodities
(c) (a) and (b) both
(d) None of the above

Answer

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

Question 46.
Which one of the following services are included in the Secondary Sector?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking

Answer

Answer: (b) Manufacturing

Question 47.
Which one is included in Primary Sector?
(a) Land
(b) Forest
(c) Mining
(d) All these

Answer

Answer: (d) All these

Question 48.
To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these

Answer

Answer: (b) Double Counting

Question 49.
Which one is a component of profit?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these

Answer

Answer: (d) All of these

Question 50.
Which one is included in National Income?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above

Answer

Answer: (d) None of the Above

Question 51.
Which one is included in the calculation of National Income?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above

Answer

Answer: (d) All the above

Question 52.
Which one is the limitation of Macro Economics?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these

Answer

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

Question 53.
Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.

Answer

Answer: (a) Principle or Theories of national income

Question 54.
Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.

Answer

Answer: (a) Capital

Question 55.
From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.

Answer

Answer: (d) All of the above.

Question 56.
Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.

Answer

Answer: (d) All of the above

Question 57.
Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capita income.

Answer

Answer: (d) Per capita income

Question 58.
Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.

Answer

Answer: (b) Three sectors

Fill in the blanks:

Question 1.
________ income is the value of current income at base-year prices.

Answer

Answer: Real

Question 2.
__________ flow shows flow of goods and services across different sectors.

Answer

Answer: Real

Question 3.
_______ sector is also known as the service sector.

Answer

Answer: Tertiary

Question 4.
_________ is an economic variable that is measured over a specific period of time. It is a dynamic concept.

Answer

Answer: Flow

Question 5.
________ is the loss of value of fixed assets due to normal wear and tear.

Answer

Answer: Depreciation

Question 6.
Environmental pollution caused by industries is a _______ externality.

Answer

Answer: negative

Question 7.
_______ are the economic assistance given by the government for the general welfare.

Answer

Answer: Subsidies

Question 8.
Investment refers to addition to the ________ of an economy. For example purchase of machinery, construction of the metro.

Answer

Answer: capital stock

Question 9.
Nominal GDP is the value of GDP at _______ prices.

Answer

Answer: current

Question 10.
________ means estimating the value of goods and services more than once.

Answer

Answer: Double counting

Question 11.
Agriculture is included in the…………… sector.

Answer

Answer: Primary

Question 12.
Pigou has divided welfare into ………….. parts.

Answer

Answer: Two

Question 13.
Chinese product is included in …………… area of the economy.

Answer

Answer: Secondary

Question 14.
National income in India is calculated by………………

Answer

Answer: Central statistical organisation

Question 15.
The total value of all final goods and services produced within the domestic territory of a country during an accounting year is known as ……….

Answer

Answer: GDP

Question 16.
……….. is an index of economic development of the country.

Answer

Answer: National income.

State true or false:

Question 1.
As compared to developed countries, India’s per capita income is quite less.

Answer

Answer: True

Question 2.
Black money has given birth to a parallel economy in the country.

Answer

Answer: True

Question 3.
The major contribution to India’s national income is from the secondary sector.

Answer

Answer: False

Question 4.
Electricity, LPG, and water supply are included in the primary sector.

Answer

Answer: False

Question 5.
Income from gifts is included in the national income.

Answer

Answer: False

Question 6.
The sale of second-hand goods is not included in the national income.

Answer

Answer: True

Match the following:

Question 1.

‘A’‘B’
1. Fish culture(a) Tertiary sector
2. Highest contribution in national income(b) Year 1952
3. National income committee was established in(c) Mixed method
4. National income calculation is done by(d) Year 1949
5. Establishment of C.S.O.(e) Primary sector.
Answer

Answer:

‘A’‘B’
1. Fish culture(e) Primary sector.
2. Highest contribution in national income(a) Tertiary sector
3. National income committee was established in(d) Year 1949
4. National income calculation is done by(c) Mixed method
5. Establishment of C.S.O.(b) Year 1952

Question 2.

Column-IColumn-II
1. Real flow(A) Imports, savings, etc.
2. Money flow(B) Exports, investments, etc.
3. Examples of injections(C) Balance in the bank account as of January 1st, 2019
4. Examples of leakages(D) Income per Month
5. Examples of stock(E) Income from a self-employed person
6. Examples of flow(F) GNP at constant prices
7. GDPMP(G) The flow of goods and sen/ices
8. Mixed-income(H) GDPFC + NIT – Subsidies
9. Change in the stock(I) Depreciation
10. Nominal GNP(J) The flow of money across different sectors
11. Real GNP(K) Closing stock – opening stock
12. Consumption1 of fixed capital(L) GNP at current prices
Answer

Answer:

Column-IColumn-II
1. Real flow(G) The flow of goods and sen/ices
2. Money flow(J) The flow of money across different sectors
3. Examples of injections(B) Exports, investments, etc.
4. Examples of leakages(A) Imports, savings, etc.
5. Examples of stock(C) Balance in the bank account as of January 1st, 2019
6. Examples of flow(D) Income per Month
7. GDPMP(H) GDPFC + NIT – Subsidies
8. Mixed-income(E) Income from a self-employed person
9. Change in the stock(K) Closing stock – opening stock
10. Nominal GNP(L) GNP at current prices
11. Real GNP(F) GNP at constant prices
12. Consumption1 of fixed capital(I) Depreciation

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 2 National Income Accounting with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics National Income Accounting 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 2 Theory of Consumer Behaviour with Answers

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Check the below NCERT MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers Pdf free download. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. We have provided Theory of Consumer Behaviour 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-2/

Theory of Consumer Behaviour Class 11 MCQs Questions with Answers

MCQ Questions For Class 11 Economics Chapter 2 Question 1.
Who gave the cardinal concept of utility?
(a) Marshall
(b) Pigou
(c) Hicks
(d) Samuelson

Answer

Answer: (a) Marshall

MCQ Class 11 Economics Chapter 2 Question 2.
Consumer’s behaviour is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Income Analysis
(d) None of these

Answer

Answer: (a) Micro Economics

Theory Of Consumer Behaviour MCQ Question 3.
Which of the following statement is true ?
(a) Utility means want-satisfying power
(b) Utility is a function of intensity of desire
(c) Desire of consumption gives birth to utility
(d) All of these

Answer

Answer: (d) All of these

Class 11 Economics Chapter 2 MCQ Question 4.
Which is the First Law of Gossen?
(a) Law of Demand
(b) Law of Diminishing Marginal Utility
(c) Law of Equi-marginal Utility
(d) Consumer’s Surplus

Answer

Answer: (b) Law of Diminishing Marginal Utility

Economics Class 11 Chapter 2 MCQ Question 5.
Which of the following is a characteristic of utility ?
(a) Utility is a psychological phenomenon
(b) Utility is subjective
(c) Utility is a relative concept
(d) All of these

Answer

Answer: (d) All of these

MCQ On Theory Of Consumer Behaviour Chapter 2 Question 6.
How we calculate marginal utility ?
(a) ∆TU/∆Q
(b) ∆MU/∆Q
(c) ∆Q/∆TU
(d) ∆Q/∆MU

Answer

Answer: (a) ∆TU/∆Q

Economics Class 11 Chapter 2 MCQ Question 7.
When TU becomes maximum, MU is:
(a) Positive
(b) Negative
(c) Zero
(d) None of these

Answer

Answer: (c) Zero

Question 8.
Which of the following is true ?
(a) TU increases till MU is positive
(b) TU is maximum when MU is equal to zero
(c) TU declines when MU is negative
(d) All of these

Answer

Answer: (d) All of these

Question 9.
Who basically propounded the concept of Law of Equimarginal Utility ?
(a) Marshall
(b) Gossen
(c) Ricardo
(d) J. S. Mill

Answer

Answer: (c) Ricardo

Question 10.
In difference curve is:
(a) Convex to the origin
(b) Concave to the origin
(c) Both (a) and (b) true
(d) All of these false

Answer

Answer: (a) Convex to the origin

Question 11.
The ability of satisfying human want in a goods is called its:
(a) Productivity
(b) Satisfaction
(c) Utility
(d) Profitability

Answer

Answer: (c) Utility

Question 12.
Slope of budget line or price line is:
(a) –\(\frac{P_x}{P_y}\)
(b) –\(\frac{P_y}{P_x}\)
(c) +\(\frac{P_x}{P_y}\)
(d) +\(\frac{P_y}{P_x}\)

Answer

Answer: (a) –\(\frac{P_x}{P_y}\)

Question 13.
Utility is related to:
(a) Usefulness
(b) Morality
(c) Satisfaction of human wants
(d) All the above

Answer

Answer: (d) All the above

Question 14.
Utility can be measured by:
(a) Money
(b) Exchange of goods
(c) Weight of the good
(d) None of these

Answer

Answer: (a) Money

Question 15.
Law of Equi-marginal utility is called:
(a) Law of increasing utility
(b) Law of diminishing utility
(c) Law of substitution
(d) None of these

Answer

Answer: (c) Law of substitution

Question 16.
Indifference curve slopes:
(a) From right to left
(b) From left to right
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (b) From left to right

Question 17.
The addition of utilities obtained from all units of a goods is called :
(a) Marginal Utility
(b) Total Utility
(c) Maximum Satisfaction
(d) Additional Utility

Answer

Answer: (b) Total Utility

Question 18.
Who propounded the ordinal utility theory’ ?
(a) Marshall
(b) Pigou
(c) Hicks and Allen
(d) Ricardo

Answer

Answer: (c) Hicks and Allen

Question 19.
The propounder of law of diminishing marginal utility is:
(a) Gossen
(b) Adam smith
(c) Chapman
(d) Hicks

Answer

Answer: (a) Gossen

Question 20.
Consumer’s equilibrium takes at a point where:
(a) MU = Price
(b) MU < Price
(c) MU > Price
(d) None of these

Answer

Answer: (a) MU = Price

Question 21.
The capability of a commodity to satisfy human wants is:
(a) Consumption
(b) Utility
(c) Quality
(d) Taste

Answer

Answer: (b) Utility

Question 22.
For the maximum satisfaction of consumer:
(a) Marginal utility of a good should be equal to its price.
(b) Marginal utility of a good should be greater than its price.
(c) There is no relation between marginal utility and price.
(d) None of these

Answer

Answer: (a) Marginal utility of a good should be equal to its price.

Question 23.
When marginal utility is negative, then total utility:
(a) is maximum
(b) Starts decreasing
(c) increases at decreasing rate
(d) None of these

Answer

Answer: (b) Starts decreasing

Question 24.
According to the law of equi-marginal utility, the condition for consumer’s equilibrium is:
(a) \(\frac{MU_A}{P_A}\)
(b) \(\frac{MU_B}{P_B}\)
(c) Both (a) and (b)
(d) Undefined

Answer

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

Question 25.
According to Marshall, utility of a commodity:
(a) Can be measured by money
(b) Cannot be measured by money
(c) Can be measured in cardinal numbers
(c) Both (a) and (b)

Answer

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

Question 26.
Which element is essential for demand ?
(a) Desire to consume
(b) Availability of adequate resources
(c) Willingness to consume
(d) All of these

Answer

Answer: (d) All of these

Question 27.
Demand Curve generally slopes:
(a) Upward from left to right
(b) Downward from left to right
(c) Parallel to X-axis
(d) Parallel to Y-axis

Answer

Answer: (b) Downward from left to right

Question 28.
In which goods, price fall does not make any increase in demand ?
(a) Necessities Goods
(b) Comfort Goods
(c) Luxuries Goods
(d) None of these

Answer

Answer: (a) Necessities Goods

Question 29.
Which of the following factor affects demand ?
(a) Price
(b) Change in income
(c) Taste of the Consumer
(d) All of these

Answer

Answer: (d) All of these

Question 30.
Goods, which can alternatively be used, are called:
(a) Complementary Goods
(b) Substitutes
(c) Comforts
(d) None of these

Answer

Answer: (b) Substitutes

Question 31.
Law of Demand is a:
(a) Qualitative Statement
(b) Quantitative Statement
(c) Both (a) and (b)
(d) None of these

Answer

Answer: (a) Qualitative Statement

Question 32.
Which of the following is a demand function ?
(a) PX
(b) DX = PX
(c) Dx = (Px)
(d) None of these

Answer

Answer: (c) Dx = (Px)

Question 33.
When change in the price of goods-X affects the demand of goods-Y, this demand is called:
(a) Price Demand
(b) Income Demand
(c) Cross Demand
(d) All of these

Answer

Answer: (d) All of these

Question 34.
For normal goods, Law of Demand states the relationship between price and quantity of goods:
(a) Direct
(b) Positive
(c) Indirect
(d) None of the above

Answer

Answer: (c) Indirect

Question 35.
Which of the following is a reason for fall in demand ?
(a) Fall in Income
(b) Fall in Number of Buyers
(c) Fall in Taste of Consumer
(d) All the above

Answer

Answer: (d) All the above

Question 36.
With rise in coffee price, the demand of tea:
(a) Rises
(b) Falls
(c) Remains stable
(d) None of these

Answer

Answer: (a) Rises

Question 37.
Contraction in demand appears when:
(a) Price rises and demand falls
(b) Price rises and demand also rises
(c) Price remains stable and demand falls
(d) Price falls but demand remains stable

Answer

Answer: (a) Price rises and demand falls

Question 38.
Which is a reason of change in demand ?
(a) Change in consumer’s income
(b) Change in price of related goods
(c) Population increase
(d) All pf these

Answer

Answer: (d) All pf these

Question 39.
For a change in which of the following, there is no change in demand ?
(a) Change in price
(b) Change in income
(c) Change in taste and fashion
(d) None of these

Answer

Answer: (d) None of these

Question 40.
With a rise in price the demand for ‘Giffin’ goods:
(a) increases
(b) decreases
(c) remains constant
(d) becomes unstable

Answer

Answer: (a) increases

Question 41.
Hie slope of the demand Curve of a normal goods is:
(a) Negative
(b) Positive
(c) Zero
(d) Undefined

Answer

Answer: (a) Negative

Question 42.
With an increase in income consumer decreases the consumption of which goods ?
(a) Inferior goods
(b) Normal goods
(c) Giffin goods
(d) Both (a) and (b)

Answer

Answer: (c) Giffin goods

Question 43.
The demand curve of a good shifts from DD’ to dd
MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers 1
(a) fail in the price of the goods
(b) rise in the price of the goods
(c) rise in the price of substitute goods
(d) rise in the price of complementary goods

Answer

Answer: (c) rise in the price of substitute goods

Question 44.
Elasticity of demand is a:
(a) Qualitative Statement
(b) Quantitative Statement
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Quantitative Statement

Question 45.
Which of the following is a formula for measuring the elasticity of demand ?
MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers 2

Answer

Answer: (a)

Question 46.
For Giffin goods, price elasticity of demand is :
(a) Negative
(b) Positive
(c) Zero
(d) None of these

Answer

Answer: (b) Positive

Question 47.
Following figure shows:
MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers 3
(a) High Elastic Demand
(b) Perfectly Elastic Demand
(c) Perfectly Inelastic Demand
(d) Inelastic Demand

Answer

Answer: (b) Perfectly Elastic Demand

Question 48.
Which of the following shows elasticity less than one ?
(a) Necessity Goods
(b) Comforts
(c) Luxuries
(d) All of these

Answer

Answer: (a) Necessity Goods

Question 49.
With which method, elasticity of demand is measured ?
(a) Total Expenditure Method .
(b) Percentage or Proportionate Method
(c) Point Method
(d) All of these

Answer

Answer: (d) All of these

Question 50.
Elastic demand is shown by:
MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers 4

Answer

Answer: (a) \(\frac{ΔQ}{Q} > \frac{ΔP}{P}\)

Question 51.
What is the price elasticity in following example ?
MCQ Questions for Class 11 Economics Chapter 2 Theory of Consumer Behaviour with Answers 5
(a) -2.5
(b) + 3.5
(c) + 4.0
(d) None of these

Answer

Answer: (a) -2.5

Question 52.
Who propounded the percentage or proportionate method of measuring elasticity of demand ?
(a) Marshall
(b) Flux
(c) Hicks
(d) None of these

Answer

Answer: (b) Flux

Question 53.
Which of the following factor affects elasticity of demand ?
(a) Nature of Goods
(b) Price Level
(c) Income Level
(d) All of these

Answer

Answer: (d) All of these

Question 54.
How many types elasticity of uemand has ?
(a) Three
(b) Five
(c)Six
(d) Seven

Answer

Answer: (b) Five

Question 55.
Elasticity of demand for necessities is :
(a) Zero
(b) Unlimited
(c) Greater than unity
(d) Less than unity

Answer

Answer: (a) Zero

Question 56.
Price elasticity of demand means :
(a) Change in demand due to change in price
(b) Change in demand
(c) Change in real income
(d) Change in Price

Answer

Answer: (a) Change in demand due to change in price

Question 57.
The elasticity of demand at the mid-point of a straight line demand curve:
(a) will be zero
(b) will be unity
(c) will be infinity
(d) None of these

Answer

Answer: (b) will be unity

Question 58.
If the demand for a good changes by 60% due to 40% change in price, the elasticity of demand is :
(a) 0.5
(b) -1.5
(c) 1
(d) zero

Answer

Answer: (b) -1.5

Question 59.
For luxury goods the demand is:
(a) Inelastic
(b) Elastic
(c) Highly elastic
(d) Perfectly Inelastic

Answer

Answer: (c) Highly elastic

Question 60.
Any statement about demand for a good is considered complete only when the following is/are mentioned in:
(a) Price of the good
(b) Quantity of the good
(c) Period of time
(d) All of these

Answer

Answer: (a) Price of the good

Question 61.
Consumer is in equilibrium when:
(a) MUx = PUx
(b) MUx > PUx
(c) MUx < Px
(d) MUx ÷ Px

Answer

Answer: (a) MUx = PUx

Question 62.
Marshall has given the law of Equimarginal utility related:
(a) Related to goods
(b) Related to money
(c) In relation to both
(d) None of these.

Answer

Answer: (a) Related to goods

Question 63.
How many tremendous curves can touch the budget line:
(a) One
(b) Two
(c) Several
(d) Depends on the basis of indifference maps.

Answer

Answer: (a) One

Question 64.
Indifference curves were first introduced by the English economist in 1881 by:
(a) Edge worth
(b) Pareto
(c) Myers
(d) Hicks.

Answer

Answer: (a) Edge worth

Question 65.
Any statement about the demand of an object is considered complete when it is mentioned in the following:
(a) Price of good
(b) Demand of good
(c) Time period
(d) All of the above.

Answer

Answer: (d) All of the above.

Question 66.
If price of goods ‘X’ falls leading to increase in demand of goods ‘ Y’ then both the goods are:
(a) Substitute goods
(b) Complementary goods
(c) Not related
(d) Competitor.

Answer

Answer: (b) Complementary goods

Question 67.
According to total outlay method, the demand of a good is sinelastic when:
(a) Price will fall with the increase in amount spent
(b) When price of good decreases and money spent decreases
(c) Expenditure remains the same, even if price falls
(d) Expenditure decreases with the increase in price.

Answer

Answer: (b) When price of good decreases and money spent decreases

Fill in the blanks:

1. Consumer is a …………. human being.

Answer

Answer: Rational

2. If the price of substitute goods increases then the demand curve shifts to the ………….

Answer

Answer: Right

3. …………. propounded the law of Diminishing Returns.

Answer

Answer: Gossen

4. According to Marshall utility can be measured in terms of ………….

Answer

Answer: Money

5. An indifference curve gives …………. level of satisfaction to the consumers.

Answer

Answer: Equal

6. Car and Petrol are goods ………….

Answer

Answer: Substitute

7. There is …………. relation between price and demand.

Answer

Answer: inverse

State true or false:

1. Utility is an intensive assumption.

Answer

Answer: True

2. The proportion of the cost of two goods measures the slope of budget line.

Answer

Answer: True

3. Demand curve is generally negative sloped.

Answer

Answer: False

4. Budget set is a collection of all bundles that a consumer purchases from their income at market prices.

Answer

Answer: True

5. The elasticity of the demand of the object and the expenditure on the object is closely related.

Answer

Answer: True

Match the following:

‘A”‘B’
1. Inelastic(a) Utility analysis
2. Substitute goods(b) Demand of Necessary or Essential goods
3. Marshall(c) Gossen’s second law
4. Indifference curve(d) Cross demand
5. Law of equi marginal utility(e) Does not cut each ether
Answer

Answer:

‘A”‘B’
1. Inelastic(b) Demand of Necessary or Essential goods
2. Substitute goods(d) Cross demand
3. Marshall(a) Utility analysis
4. Indifference curve(e) Does not cut each ether
5. Law of equi marginal utility(c) Gossen’s second law

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MCQ Questions for Class 12 Economics Chapter 4 Determination of Income and Employment with Answers

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Determination of Income and Employment Class 12 MCQs Questions with Answers

Employment MCQ Class 12 Chapter 4 Question 1.
What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic

Answer

Answer: (B) Perfectly elastic

Determination Of Income And Employment Class 12 MCQ Question 2.
According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these

Answer

Answer: (A) Equal

Determination Of Income And Employment MCQ Chapter 4 Question 3.
What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these

Answer

Answer: (C) Both of these

Question 4.
According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these

Answer

Answer: (A) Full employment

Question 5.
What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite

Answer

Answer: (A) One

Question 6.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(A) 0.67
(B) 0.63
(C) 0.60
(D) 0.58

Answer

Answer: (B) 0.63

Question 7.
What is a fiscal measure of correcting deficient demand?
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these

Answer

Answer: (D) All of these

Question 8.
Which is the measure of correcting excess demand?
(A) Deficit financing
(B) Reduction in taxes
(C) Increase in public expenditure
(D) Increase in public debt

Answer

Answer: (D) Increase in public debt

Question 9.
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ______
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6

Answer

Answer: (D) 0.6

Question 10.
On the basis of government law, the compulsory payment made by the public is known as _________
(A) Expenditure
(B) Investment
(C) Tax
(D) Subsidy

Answer

Answer: (C) Tax

Question 11.
Which among is the direct tax?
(A) Income tax
(B) Gift and Corporation tax
(C) Wealth tax
(D) All of these

Answer

Answer: (D) All of these

Question 12.
The value of multiplier is:
(A) \(\frac{1}{MPC}\)
(B) \(\frac{1}{MPS}\)
(C) \(\frac{1}{1-MPS}\)
(D) \(\frac{1}{MPC-1}\)

Answer

Answer: (B) \(\frac{1}{MPS}\)

Question 13.
If MPC = 1, the value of the multiplier is:
(A) 0
(B) 1
(C) Between 0 and 1
(D) Infinity

Answer

Answer: (D) Infinity

Question 14.
Aggregate demand can be increased by:
(A) increasing bank rate
(B) selling govt, securities by RBI
(C) increasing cash reserve ratio
(D) none of these

Answer

Answer: (D) None of these

Question 15.
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be
(A) greater than 2
(B) less than 2
(C) equal to 2
(D) equal to 5

Answer

Answer: (A) greater than 2

Question 16.
Supply creates its own Demand. Who gave this law?
(a) J.B.Say
(b) J.S.Mill
(c) Keynes
(d) Ricardo

Answer

Answer: (a) J.B.Say

Question 17.
Who is the author of the book ‘General Theory of Employment, Interest, and Money’?
(a) A.C. Pigou
(b) Malthus
(c) J.M. Keynes
(d) Marshall

Answer

Answer: (c) J.M. Keynes

Question 18.
Which of the following is true for the Classical Theory of Employment?
(a) State of full employment in the economy
(b) No possibility of over-or under-production in the economy
(c) Both (a) and (b)
(d) None of the above

Answer

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

Question 19.
On which factor Keynesian Theory of Employment depends?
(a) Effective Demand
(b) Supply
(c) Production Efficiency
(d) None of the above

Answer

Answer: (a) Effective Demand

Question 20.
Which is the determining factor for investment?
(a) Marginal Efficiency of Capital
(b) Interest Rate
(c) Both (a) and (b)
(d) None of these

Answer

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

Question 21.
According to Keynes, investment implies:
(a) Financial Investment
(b) Real Investment
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Real Investment

Question 22.
With the increase in investment, MEC:
(a) Rises
(b) Falls
(c) Remains Constant
(d) None of these

Answer

Answer: (b) Falls

Question 23.
Which of the following is a Read Investment?
(a) Purchasing of a Share
(b) Purchasing of Old Factory
(c) Construction of Buildings
(d) Opening Deposit Account in the Bank

Answer

Answer: (c) Construction of Buildings

Question 24.
APC + APS = ?
(a) ?
(b) 2
(c) 1
(d) 0

Answer

Answer: (b) 2

Question 25.
MPC = MPS = ?
(a) ?
(b) 2
(c) 1
(d) 0

Answer

Answer: (c) 1

Question 26.
Which or is true?
(a) MPC + MPS = 0
(b) MPC + MPS < 1
(c) MPC + MPS = 1
(d) MPC + MPS > 1

Answer

Answer: (c) MPC + MPS = 1

Question 27.
The main component of aggregate demand is:
(a) Individual consumption
(b) Public consumption
(c) Investment
(d) All the above

Answer

Answer: (d) All the above

Question 28.
Who is the writer of the book, “Trained Economic Politique”?
(a) Pigour
(b) J.B. Say
(c) Keynes
(d) Ricardo

Answer

Answer: (a) Pigour

Question 29.
IF MPC = 0.5, then Multiplier (k) will be:
(a) 1/4
(b) = 0
(c) 1
(d) 2

Answer

Answer: (d) 2

Question 30.
On which concept does classical viewpoint depend?
(a) Say’s Law of Market
(b) perfect Flexibility of Wage Rate
(c) Perfect Flexibility of Interest Rate
(d) All of these

Answer

Answer: (d) All of these

Question 31.
“Wage cut maintains full employment in the economy.” Who put forward this view?
(a) Pigou
(b) Keynes
(c) Marshall
(d) None of the above

Answer

Answer: (a) Pigou

Question 32.
Which one of the following is the determining factor of Equilibrium Income is the Keynesian Viewpoint?
(a) Aggregate Demand
(b) Aggregate Supply
(c) Both (a) and (b)
(d) None of the above

Answer

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

Question 33.
In Keynesian viewpoint, the equilibrium level of income and employment in the economy will be established where:
(a) AD > AS
(b) AS > AD
(c) AD = AS
(d) None of these

Answer

Answer: (c) AD = AS

Question 34.
According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:
(a) S > I
(b) I > S
(c) S = I
(d) None of these

Answer

Answer: (c) S = I

Question 35.
An increase in aggregate demand of equilibrium level of income and employment causes an increase in:
(a) Employment
(b) Production
(c) Income
(d) All of these

Answer

Answer: (d) All of these

Question 36.
Which one is correct?
(a) Y = C + I
(b) Y = 0 = N
(c) C + S = C + I
(d) All of these

Answer

Answer: (d) All of these

Question 37.
Keynes theory is associated with :
(a) Effective demand
(b) Propensity to consume
(c) Propensity to save
(d) All of these

Answer

Answer: (d) All of these

Question 38.
Keynesian multiplier establishes a relationship between:
(a) Investment and Income
(b) Income and Consumption
(c) Saving and Investment
(d) None of the above

Answer

Answer: (a) Investment and Income

Question 39.
Which one is correct?
(a) K = \(\frac{1}{MPC}\)
(b) K = \(\frac{1}{MPS}\)
(c) K = \(\frac{1}{1-MPS}\)
(d) K = \(\frac{1}{1+MPS}\)

Answer

Answer: (b) K = \(\frac{1}{MPS}\)

Question 40.
Multiplier can be expressed as:
(a) K = \(\frac{\Delta \mathrm{S}}{\Delta \mathrm{I}}\)
(b) K = \(\frac{\Delta \mathrm{Y}}{\Delta \mathrm{I}}\)
(c) K = I – S
(d) None of these

Answer

Answer: (b) K = \(\frac{\Delta \mathrm{Y}}{\Delta \mathrm{I}}\)

Question 41.
Keynes derived Investment Multiplier from Kahn’s :
(a) Income Multiplier
(b) Consumption Multiplier
(c) Employment Multiplier
(d) None of the above

Answer

Answer: (c) Employment Multiplier

Question 42.
The value of Keynesian Investment Multiplier depends on:
(a) Income Level
(b) Marginal Productivity of Capital
(c) Marginal Propensity to Consume
(d) Investment Level

Answer

Answer: (c) Marginal Propensity to Consume

Question 43.
Which factor affects Keynesian Multiplier?
(a) Marginal Propensity to Save
(b) Marginal Propensity to Consume
(c) Both (a) and (b)
(d) None of the above

Answer

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

Question 44.
Which of the following is correct?
(a) MPC and multiplier have a direct relationship
(b) MPS and multiplier have an inverse relationship
(c) Both (a) and (b)
(d) None of the above

Answer

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

Question 45.
The value of MPC is:
(a) 1
(b) 0
(c) Greater than 0 but less than 1
(d) ?

Answer

Answer: (c) Greater than 0 but less than 1

Question 46.
If MPC = 0.5, then multiplier (K) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0

Answer

Answer: (c) 2

Question 47.
If MPC = 0.5 and initial investment is 100 Rs crores, the income generation in the economy will be :
(a) 5 crores Rs
(b) 100 crores Rs
(c) 200 crores Rs
(d) 500 crores Rs

Answer

Answer: (c) 200 crores Rs

Question 48.
‘The theory of employment multiplier was propounded by:
(a) Keynes
(b) Kahn
(c) Hansen
(d) Marshall

Answer

Answer: (b) Kahn

Question 49.
If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:
(a) Deficit Demand
(b) Surplus Demand
(c) Partial Demand
(d) None of these

Answer

Answer: (a) Deficit Demand

Question 50.
In Keynesian economics, the state of Deficit Demand is called as:
(a) Full Employment Equilibrium
(b) Under Full Employment Equilibrium
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Under Full Employment Equilibrium

Question 51.
What are the characteristics of Deficit Demand?
(a) Aggregate Demand falls short of Aggregate Demand required at full employment
(b) Aggregate Demand remains short of Aggregate Supply required of full employment level
(c) Both (a) and (b)
(d) None of above

Answer

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

Question 52.
Deflationary Gap shows the measurement of:
(a) Deficit Demand
(b) Surplus Demand
(c) Full Employment
(d) None of these

Answer

Answer: (a) Deficit Demand

Question 53.
Which one is the reason for appearing Deficit Demand condition?
(a) Fall in the money supply in the country
(b) Fall in investment demand as a result of rising in bank rate
(c) Fall in disposable income and consumer demand due to increase in taxes
(d) All the above

Answer

Answer: (d) All the above

Question 54.
Which of the following is true?
(a) Employment level declines due to decrease in demand
(b) Price level falls due to deficient demand in the country
(c) Production level falls deficient demand
(d) All the above

Answer

Answer: (d) All the above

Question 55.
The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as:
(a) Inflationary Gap
(b) Deflationary Gap
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (a) Inflationary Gap

Question 56.
Which of the following is a reason for surplus demand?
(a) Increase in Public Expenditure
(b) Increase in Money Supply
(c) Fall in Taxes
(d) All the above

Answer

Answer: (d) All the above

Question 57.
In the situation of the deflationary gap:
(a) Demand increases rapidly
(b) Supply increase rapidly
(c) Both demand and supply are equal
(d) All of these

Answer

Answer: (d) All of these

Question 58.
Which of the following causes the trade cycle?
(a) Deflationary Conditions
(b) Inflationary Conditions
(c) Both (a) and (b)
(d) None of these

Answer

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

Question 59.
Which one is the corrective measure for Deficient Demand?
(a) Fiscal Measures
(b) Monetary Measures
(c) Both (a) & (b)
(d) None of the above

Answer

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

Question 60.
Which measure is included in Fiscal Measures?
(a) Public Expenditure
(b) Taxation
(c) Public Debt
(d) All of these

Answer

Answer: (d) All of these

Question 61.
Which fiscal measure should be adopted for correcting Deficient Demand?
(a) Government should spend more on public works
(b) Taxation should be reduced
(c) Pubic debt should be reduced
(d) All the above

Answer

Answer: (d) All the above

Question 62.
With which component of Monetary Policy, Central Bank tries to attain economic stability in the country?
(a) Supply of Money
(b) Interest Rate
(c) Availability of Money
(d) All of these

Answer

Answer: (d) All of these

Question 63.
Which method Central Bank adopts for controlling quantitative credit?
(a) Bank Rate
(b) Open Market Operations
(c) Change in Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 64.
Which is a qualitative method of controlling credit?
(a) Change in Margin Requirements of Loanee
(b) Credit Rationing
(c) Direct Action
(d) All of these

Answer

Answer: (d) All of these

Question 65.
Which monetary measure may be adopted to correct Deficient Demand?
(a) Reduction in Bank Rate
(b) Buying Securities in Open Markey
(c) Reducing Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 66.
Which fiscal measure is to be adopted in correcting the Inflationary Gap?
(a) Reduction in Public Expenditure
(b) Increase in taxes
(c) Increase in Public debt
(d) All of these

Answer

Answer: (d) All of these

Question 67.
Which monetary measure is to be adopted in correcting Inflationary
(a) Increase in Bank Rate
(b) Selling of Securities in Open Market
(c) Increase in Cash Reserve Ratio
(d) All the above

Answer

Answer: (d) All the above

Question 68.
Income and employment are determined by:
(a) Total demand
(b) Total supply
(c) Total demand and total supply both
(d) By market demand

Answer

Answer: (c) Total demand and total supply both

Question 69.
The relation between consumption and savings are:
(a) Inverse
(b) Direct
(c) Inverse and direct both
(d) Neither inverse nor direct.

Answer

Answer: (a) Inverse

Question 70.
When an economy they’re to save all its extra income then investment calculation will be:
(a) 1
(b) Uncertain
(c) 0
(d) Infinite

Answer

Answer: (a) 1

Question 71.
“Supply creates its own demand”. This statement was given by the economist:
(a) Keynes
(b) Pigou
(c) J. B.Say
(d) Adam Smith

Answer

Answer: (c) J. B.Say

Question 72.
The classical theory is based on the assumption of:
(a) Say’s the law of market
(b) Flexibility in wage rates
(c) Flexibility in interest rate
(d) All of the above

Answer

Answer: (d) All of the above.

Fill in the blanks:

Question 1.
The multiplier is the ratio between the change in income and change in _________

Answer

Answer: investment

Question 2.
There is a/an _______ relation between multiplier and MPC.

Answer

Answer: direct

Question 3.
Deficient demand refers to the situation when Aggregate Demand _______ Aggregate Supply.

Answer

Answer: short

Question 4.
Income tax is a _______ tax.

Answer

Answer: direct

Question 5.
The price will be _______ an the inflationary gap.

Answer

Answer: increased

Question 6.
In a situation of inflationary gap, the economy faces a situation of _____ output.

Answer

Answer: higher

Question 7.
The deflationary gap is a measure of _______ demand.

Answer

Answer: excess

Question 8.
Excess demand refers to the situation when AD ______ AS.

Answer

Answer: >

Question 9.
______ policy is related to revenue and expenditure of the government.

Answer

Answer: fiscal

Question 10.
Bank rate is a ________ instrument of monetary policy.

Answer

Answer: quantitative

Question 11.
Tax, public borrowings are the main components of ________ policy.

Answer

Answer: fiscal

Question 12.
Bank rate and open market operation are the main components of _______ policy.

Answer

Answer: monetary

Question 13.
Fiscal policy has a ______ bearing on all the sectors of the economy.

Answer

Answer: direct

Question 14.
Sale tax is an example of ________ tax.

Answer

Answer: Indirect

Question 15.
The _______ Propensity to Consume is the proportion of the income, which is spent on consumption.

Answer

Answer: Average

Question 16.
MPC of the lower-income group is _______ than the higher income group.

Answer

Answer: higher

Question 17.
MPC is always _________

Answer

Answer: positive

Question 18.
MPC lies between ______ and ________

Answer

Answer: zero, one

Question 19.
________ refers to the highest rate of return over cost expected from a marginal or additional unit of a capital asset.

Answer

Answer: Marginal efficiency of capital

Question 20.
Deflationary gap is the measurement of _________ demand.

Answer

Answer: Deficit

Question 21.
Deficit demand indicates _________ gap.

Answer

Answer: Deflationary gap

Question 22.
In case of excess demand bank rate _________

Answer

Answer: Increase

Question 23.
Multiplier can also _________ in opposite direction.

Answer

Answer: Work

Question 24.
The point at which aggregate demand and aggregate supply are equal is known as __________

Answer

Answer: Effective demand

Question 25.
Unemployment is the result of ________

Answer

Answer: Deficit

Question 26.
Propensity to consume shows relation between _________ and distributed income.

Answer

Answer: Consumption

State true or false:

Question 1.
Consumption is the complement of saving.

Answer

Answer: True

Question 2.
Full employment means the absence of involuntary unemployment.

Answer

Answer: True

Question 3.
MPC can be negative.

Answer

Answer: False

Question 4.
MPC of the rich class is higher.

Answer

Answer: False

Question 5.
MPC can be greater than one under abnormal conditions.

Answer

Answer: True

Question 6.
According to Keynes, “Unemployment is the cause of AD < AS.”

Answer

Answer: True

Question 7.
There is an indirect relationship between multiplier and MPC.

Answer

Answer: False

Question 8.
With the increase in investment, the multiplier increases income many times more. It is called backward action of the multiplier.

Answer

Answer: False

Question 9.
The value of K is in between 1 and ∝.

Answer

Answer: True

Question 10.
When MPC is zero multipliers is 1.

Answer

Answer: True

Question 11.
Consumption by one person becomes the income of the other.

Answer

Answer: True

Question 12.
The deflationary gap is the shortfall in AD from the level required to maintain full employment equilibrium in the economy.

Answer

Answer: True

Question 13.
Corporation tax is an indirect tax.

Answer

Answer: False

Question 14.
Monetary policy is related to the revenue and expenditure policy of the government.

Answer

Answer: False

Question 15.
When there is excess demand, the rate of taxation is to be reduced.

Answer

Answer: False

Question 16.
When there is deficient demand, public expenditure is to be generally expanded.

Answer

Answer: True

Question 17.
Full employment does not mean zero unemployment.

Answer

Answer: True

Question 18.
An increase in the interest rate in the future will reduce the savings.

Answer

Answer: False

Question 19.
Consumption expenditure does not increase in the same proportion as income increases.

Answer

Answer: True

Question 20.
Theories of employment were propounded by Marshall.

Answer

Answer: False

Question 21.
Unemployment is the result of deficit demand.

Answer

Answer: False

Question 22.
Keynes’s theory also applies to underdeveloped countries.

Answer

Answer: False

Question 23.
Keynes’s theory is based on the concept of full employment.

Answer

Answer: True

Match the following:

Question 1.

‘A’‘B’
1. Meaning of market demand(a) Directly related to each other
2. Income and Savings both(b) J. B. Say
3. Independent jurisdiction(c) Income is inelastic
4. Induced investment(d) By the demand of one good
5. Supply creates its own demand(e) Is ruled by
6. Effective demand = Total demand and Total supply(f) Income is elastic.
Answer

Answer:

‘A’‘B’
1. Meaning of market demand(d) By the demand of one good
2. Income and Savings both(a) Directly related to each other
3. Independent jurisdiction(c) Income is inelastic
4. Induced investment(f) Income is elastic.
5. Supply creates its own demand(b) J. B. Say
6. Effective demand = Total demand and Total supply(e) Is ruled by

Question 2.

Column-IColumn-II
1. Components of Aggregate Demand(A) C + S
2. Components of Aggregate Supply(B) Rate of interest and MEC
3. Determinants of investment(C) AD = AS
4. Equilibrium level of income(D) C + I + G + ( X – M)
5. Investment multiplier(E) Taxes, deficit financing
6. MPC = 0.6, MPS = ?(F) 0.4
7. APC = 0.9, APS = ?(G) 0.1
8. Measures of fiscal policy(H) k = \(\frac{\Delta Y}{\Delta I}\)
9. Measures of monetary policy(I) Bank rate, CRR
10. Quantitative Instrument(J) Rationing
11. Qualitative Instrument(K) Open market operation
Answer

Answer:

Column-IColumn-II
1. Components of Aggregate Demand(D) C + I + G + ( X – M)
2. Components of Aggregate Supply(A) C + S
3. Determinants of investment(B) Rate of interest and MEC
4. Equilibrium level of income(C) AD = AS
5. Investment multiplier(H) k = \(\frac{\Delta Y}{\Delta I}\)
6. MPC = 0.6, MPS = ?(F) 0.4
7. APC = 0.9, APS = ?(G) 0.1
8. Measures of fiscal policy(E) Taxes, deficit financing
9. Measures of monetary policy(I) Bank rate, CRR
10. Quantitative Instrument(K) Open market operation
11. Qualitative Instrument(J) Rationing

We hope the given NCERT MCQ Questions for Class 12 Economics Chapter 4 Determination of Income and Employment with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 12 Economics Determination of Income and Employment MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

MCQ Questions for Class 11 Economics Unit 3 Statistical Tools and Interpretation with Answers

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Check the below NCERT MCQ Questions for Class 11 Economics Unit 3 Statistical Tools and Interpretation with Answers Pdf free download. MCQ Questions for Class 11 Economics with Answers were prepared based on the latest exam pattern. We have provided Statistical Tools and Interpretation Class 11 Economics MCQs Questions with Answers to help students understand the concept very well. https://mcqquestions.guru/mcq-questions-for-class-11-economics-unit-3/

Statistical Tools and Interpretation Class 11 MCQs Questions with Answers

MCQ Questions For Class 11 Statistics Economics Unit 3 Question 1.
The most common measurement of central tendency is:
(a) Median
(b) Multiple
(c) Mean
(d) Weighted mean.

Answer

Answer: (c) Mean

Statistical Tools And Interpretation Class 11 MCQ Question 2.
Division of one column in ten equal parts is called:
(a) Decile
(b) Quartile
(c) Percentile
(d) None.

Answer

Answer: (a) Decile

Unit 3 Statistical Tools Class 11 MCQ Economics Question 3.
Which of the following equation is correct:
(a) Anova = σ
(b) Anova = σ-2
(c) Anova = σ4
(d) Anova = √σ × 2.

Answer

Answer: (b) Anova = σ-2

Class 11 Statistical Tools Unit 3 MCQ Economics Question 4.
Where is correlation multiple placed:
(a) Between 0 and + 1
(b) Between – 1 and 0
(c) Between – 1 and + 1
(d) None of these.

Answer

Answer: (c) Between – 1 and + 1

Statistical Tools Class 11 Unit 3 MCQ Economics Question 5.
Base year is:
(a) Comparison year
(b) Present year
(c) Any year
(d) One year previous to present year.

Answer

Answer: (a) Comparison year

Statistical Tools Unit 3 Class 11 MCQ Economics

Fill in the blanks:

1. Rule of ……………………….. is supposed to be idle for creation of index.

Answer

Answer: Fisher

2. Multiple is the value of column in which ……………………… comes repeatedly.

Answer

Answer: Maximum

3. The value which divides the column into more than two parts is called ……………………………

Answer

Answer: Division

4. ………………………. is the difference between maximum and minimum value.

Answer

Answer: Range

5. …………………………. is the simple ray that shows relation between two values.

Answer

Answer: Analogical relation

MCQ Questions For Class 11 Statistics Economics Unit 5

State true or false:

1. Cumulative frequency shows “less than” or “more than” of any sequence.

Answer

Answer: True

2. 5 is the mode of the numbers 3, 4, 3, 5, 5, 3, 2.

Answer

Answer: False

3. Range is found by adding highest value and smallest value.

Answer

Answer: False

4. Money inflation is measured on changes of index number of whole sale market of weekly statement.

Answer

Answer: True

5. High income leads high savings.

Answer

Answer: True

MCQ Questions For Class 11 Statistics Economics Unit 3

Match the columns:

Column AColumn B
1. \(\frac { Σx }{ N }\), here Σx is(a) Positive or negative
2. Formula of range(b) Minimum effect of values
3. Type of correlation(c) Total of all values
4. Consumer Price Index(d) \(\frac { H-L }{ H+L }\)
5. Median(e) Cost of living index.
Answer

Answer:

Column AColumn B
1. \(\frac { Σx }{ N }\), here Σx is(c) Total of all values
2. Formula of range(d) \(\frac { H-L }{ H+L }\)
3. Type of correlation(a) Positive or negative
4. Consumer Price Index(e) Cost of living index.
5. Median(b) Minimum effect of values

Class 11 Statistics For Economics Unit 3 MCQ

Answer in one word:

1. Graphic method of studying dispersion.

Answer

Answer: Lorenz curve

2. Definite relation between two or more groups.

Answer

Answer: Correlation

3. One which divides column in ten equal parts.

Answer

Answer: Deciles

4. In India which index helps to measure average change in prices.

Answer

Answer: Consumer Price Index

5. Saving is directly related to.

Answer

Answer: Income

6. What is measure of central tendency?

Answer

Answer: Measure of central tendency is the single value which represents the characteristics of the entire universe.

7. Which is the popular measure of central tendency?

Answer

Answer: Arithmetic mean.

8. Define Arithmetic mean?

Answer

Answer: It is defined as the sum of the values of all observations divided by the number of observations.

9. Find out mode from the following data:
7, 12, 8, 5, 9, 10, 9, 11, 96

Answer

Answer: 9 is the number which is repeated maximum number of times. Hence, mode is 9.

10. Write the formula of weighted arithmetic mean?

Answer

Answer: Weighted Arithmetic Mean = \(\frac{ΣWx}{ΣW}\)

We hope the given NCERT MCQ Questions for Class 11 Economics Unit 3 Statistical Tools and Interpretation with Answers Pdf free download will help you. If you have any queries regarding CBSE Class 11 Economics Statistical Tools and Interpretation 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 Introduction to Macroeconomics with Answers

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Check the below NCERT MCQ Questions for Class 12 Economics Chapter 1 Introduction to Macroeconomics with Answers Pdf free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. We have provided Introduction to Macroeconomics 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-a/

Introduction to Macroeconomics Class 12 MCQs Questions with Answers

I. Choose the correct alternative.

MCQ Questions For Class 12 Economics Chapter 1 Question 1.
What is known as the study of individual units?
(A) Macroeconomics
(B) Microeconomics
(C) Income and Employment Theory
(D) Development economics

Answer

Answer: (B) Microeconomics

Macroeconomics Class 12 Chapter 1 MCQ Economics Question 2.
What is the main cause of all economic problems?
(A) Abundance
(B) Convenience
(C) Scarcity
(D) None of these

Answer

Answer: (C) Scarcity

MCQ Class 12 Economics Chapter 1 Question 3.
Study of aggregates is known as _________
(A) Macroeconomics
(B) Microeconomics
(C) Price theory
(D) Factor price determination

Answer

Answer: (A) Macroeconomics

Class 12 Economics Chapter 1 MCQ Question 4.
What is the name of the book written by J.M. Keynes?
(A) Wealth of Nation
(B) Political economy
(C) The General Theory of Employment, Interest and Money
(D) None of these

Answer

Answer: (C) The General Theory of Employment, Interest and Money

Macroeconomics MCQs With Answers Class 12 Question 5.
When was the famous book of Prof. Keynes published?
(A) 1930
(B) 1931
(C) 1936
(D) 1940

Answer

Answer: (C) 1936

Economics Class 12 Chapter 1 MCQ Question 6.
When did the great depression occur?
(A) 1929-30
(B) 1934-35
(C) 1938-39
(D) 1941-42

Answer

Answer: (A) 1929-30

Class 12 Economics Ch 1 MCQ Question 7.
Who is known as the father of modern macroeconomics?
(A) Adam Smith
(B) J.M.Keynes
(C) Samuelson
(D) Hicks

Answer

Answer: (B) J. M. Keynes

Economics Chapter 1 Class 12 MCQ Question 8.
Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
(A) Microeconomics
(B) Price theory
(C) Factor price determination
(D) Macroeconomics

Answer

Answer: (D) Macroeconomics

II. Fill in the blanks with the correct answer.

Class 12 Macroeconomics Chapter 1 MCQ Question 1.
The mother of all economic problems is _________

Answer

Answer: scarcity

Macroeconomics Studies MCQ Class 12 Question 2.
Macroeconomics is defined as that branch of economics, which studies economic activities of an economy as a _______

Answer

Answer: whole

MCQ Of Economics Class 12 Chapter 1 Question 3.
_______ was the founding father of modern economics.

Answer

Answer: Adam Smith

Introduction to Macroeconomics Class 12 MCQ Question 4.
Keynes book on Income and Employment came into light in the year _________

Answer

Answer: 1936

MCQ Of Chapter 1 Macroeconomics Class 12 Question 5.
Aggregate Demand is the sum total of consumption and _________

Answer

Answer: investment

MCQ On Introduction To Macroeconomics Class 12 Question 6.
The period of the great depression was from __________

Answer

Answer: 1929-33

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

MCQ Of Chapter 1 Economics Class 12 Question 1.
Capital, land, labour, and entrepreneur are the factors of production.

Answer

Answer: True

MCQ Economics Class 12 Chapter 1 Question 2.
The expenses which raise productive capacity are known as investment expenditure.

Answer

Answer: True

Question 3.
The domestic country may sell goods to the rest of the world. It is called imports.

Answer

Answer: False

Question 4.
The domestic country may buy goods from the rest of the world. It is called exports.

Answer

Answer: False

Question 5.
The capitalist economy works for social welfare.

Answer

Answer: False

Question 6.
Microeconomics deals with the aggregate economic variable of an economy.

Answer

Answer: False

Question 7.
‘Save more’ is always a virtue.

Answer

Answer: False

IV. Match the following.

Question 1.

Column-IColumn-II
1. Worldwide Depression(A) 1936
2. Publication year of Keynes’s book(B) 1929-30
3. Problem of unemployment(C) Microeconomics study
4. Study of the sugar industry(D) J.M.Keynes
5. Father of Macroeconomics(E) Ragnar Frisch
6. Who divided economics into two parts?(F) Macroeconomics study
Answer

Answer:

Column-IColumn-II
1. Worldwide Depression(B) 1929-30
2. Publication year of Keynes’s book(A) 1936
3. Problem of unemployment(F) Macroeconomics study
4. Study of the sugar industry(C) Microeconomics study
5. Father of Macroeconomics(D) J.M.Keynes
6. Who divided economics into two parts?(E) Ragnar Frisch

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