Practice CBSE Class 12 Economics Determination of Income and Employment MCQs Set B provided below. The MCQ Questions for Class 12 Chapter 4 Determination of Income and Employment Economics with answers and follow the latest CBSE/ NCERT and KVS patterns. Refer to more Chapter-wise MCQs for CBSE Class 12 Economics and also download more latest study material for all subjects
MCQ for Class 12 Economics Chapter 4 Determination of Income and Employment
Class 12 Economics students should review the 50 questions and answers to strengthen understanding of core concepts in Chapter 4 Determination of Income and Employment
Chapter 4 Determination of Income and Employment MCQ Questions Class 12 Economics with Answers
Question. If saving function of an economy is S = -50 + 0.25 Y, then the value of MPC is——-
a- 0.25
b- 1.25
c- (-0.25)
d- 0.75
Answer : D
Question. The ratio of change in saving and change in Income is———————-
a- MPC
b- APC
c- MPS
d- APS
Answer : C
Question. When MPC is increasing in the economy, the rate of investment multiplier will———
a- Rise
b- Fall
c- Either rise or fall
d- Neither rise nor fall
Answer : A
Question. If consumption expenditure is equal to the national income, then APS will be?
a- 1
b- o
c- (-1)
d- infinity
Answer : B
Question. If the value of APC is greater than one, APS will be?
a- Negative
b- Zero
c- Greater than one
d- None of the options
Answer : A
Question. Which of the followings value may be negative?
a- MPC
b- MPS
c- APS
d- APC
Answer : C
Question. When MPS value is 0.25 , the value of investment multiplier will be?
a- 1.33
b- 2
c- 5
d- 4
Answer : D
Question. Maximum value of investment multiplier is————- when the value of MPC————
a- Ten, zero
b- infinity, one
c- infinity, zero
d- none of the options
Answer : B
Question. Multiplier is —————— related to the MPS.
a- Negatively
b- directly
c- not
d- rarely
Answer : A
Question. In an economy investment increase by 100 Crores , and MPC is 0.57 , then National income will increase by———-
a- 500
b- 250
c- 570
d- 400
Answer : D
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Important Practice Resources for Class 12 Economics
MCQs for Chapter 4 Determination of Income and Employment Economics Class 12
Students can use these MCQs for Chapter 4 Determination of Income and Employment to quickly test their knowledge of the chapter. These multiple-choice questions have been designed as per the latest syllabus for Class 12 Economics released by CBSE. Our expert teachers suggest that you should practice daily and solving these objective questions of Chapter 4 Determination of Income and Employment to understand the important concepts and better marks in your school tests.
Chapter 4 Determination of Income and Employment NCERT Based Objective Questions
Our expert teachers have designed these Economics MCQs based on the official NCERT book for Class 12. We have identified all questions from the most important topics that are always asked in exams. After solving these, please compare your choices with our provided answers. For better understanding of Chapter 4 Determination of Income and Employment, you should also refer to our NCERT solutions for Class 12 Economics created by our team.
Online Practice and Revision for Chapter 4 Determination of Income and Employment Economics
To prepare for your exams you should also take the Class 12 Economics MCQ Test for this chapter on our website. This will help you improve your speed and accuracy and its also free for you. Regular revision of these Economics topics will make you an expert in all important chapters of your course.
You can get most exhaustive CBSE Class 12 Economics Determination of Income and Employment MCQs Set B for free on StudiesToday.com. These MCQs for Class 12 Economics are updated for the 2025-26 academic session as per CBSE examination standards.
Yes, our CBSE Class 12 Economics Determination of Income and Employment MCQs Set B include the latest type of questions, such as Assertion-Reasoning and Case-based MCQs. 50% of the CBSE paper is now competency-based.
By solving our CBSE Class 12 Economics Determination of Income and Employment MCQs Set B, Class 12 students can improve their accuracy and speed which is important as objective questions provide a chance to secure 100% marks in the Economics.
Yes, Economics MCQs for Class 12 have answer key and brief explanations to help students understand logic behind the correct option as its important for 2026 competency-focused CBSE exams.
Yes, you can also access online interactive tests for CBSE Class 12 Economics Determination of Income and Employment MCQs Set B on StudiesToday.com as they provide instant answers and score to help you track your progress in Economics.