CBSE Class 12 Economics Macroeconomics MCQs Set 01

Question : Interest rates and bond prices are;
a) positively related
b) negatively related
c) not related
d) Either A or B

Answer : B

Question : (“Economics is a science of logic)’’ Who said it ?
a) Hicks
b) Keynes
c) Robbins
d) Marshall

Answer : C

Question : The deficiency of aggregate demand during depression period leads to
a) Seasonal unemployment
b) Voluntary unemployment
c) Involuntary unemployment
d) Frictional unemployment

Answer : C

Question : An increase in planned investment spending causes aggregate output to;
a) increase by an amount equal to the change in investment spending.
b) increase by an amount less than the change in investment spending.
c) increase by an amount greater than the change in investment spending.
d) decrease by an amount less than the change in investment

Answer : A

Question : Which among the following does not have the application of multiplier
a) Determination of income
b) Fiscal policy
c) Monetary policy
d) Foreign direct investment

Answer : C

Question : Broker's commission on sale and purchase of second hand goods is included in national income because:
a) It is a part of compensation of employees
b) It is a part of GRoss Domestic Capital Formation
c) it is an income earned for rendering productive services
d) None of these

Answer : C

Question : Study of aggregates is known as _________
a) Macroeconomics
b) Microeconomics
c) Price theory
d) Factor price determination

Answer : A

Question : Economy may be classified as:
a) Capitalist
b) Socialist
c) Mixed
d) All of these

Answer : D

Question : The reason for downward shape of production possibility curve is:
a) Increasing opportunity cost
b) Decreasing opportunity cost
c) Same opportunity cost
d) Negative opportunity cost

Answer : B

Question : The central problem of an economy is:
a) What to produce ?
b) How to produce ?
c) How to distribute produced goods ?
d) All of these

Answer : D

Question : 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 : D

Question : The basic factors of production are land, labour, capital, and _____.
a) Enterprise
b) Investment
c) Machinery
d) Resources

Answer : A

Question : Multiplayer is the ratio of
a) change in income to change in investment
b) change in investment to change in income
c) change in income to change in interest
d) None of the above

Answer : A

Question : Which one is inclded in National Income?
a) winning from lottery
b) milk purchase by a dairy shop
c) national debt interest
d) none of these.

Answer : D

Question : LM curve represents the combination of ;
a) price and out put
b) Demand for money and supply of money
c) income and investment
d) Money supply and nvestment

Answer : B

Question : Who is known as the father of modern macroeconomics?
a) Adam Smith
b) J.M.Keynes
c) Samuelson
d) Hicks

Answer : B

Question : Which of the following is studied under Micro Economics ?
a) Individual unit
b) Economic Aggregate
c) National Income
d) None of these

Answer : D

Question : 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 : D

Question : Macro-static equilibrium implies:
a) A complete absence of change
b) A change at an unchanged rate
c) A change in only absolute values
d) None of these 

Answer : A

Question :  What is the name of the book written by J.M. Keynes?
a) The Wealth of Nation
b) The General Theory of Employment, Interest, and Money
c) Political Economy
d) None of these

Answer : B

Question :  Which of the following is studied under Macro Economics ?
a) National Income
b) Full. Employment
c) Total Production
d) All of these

Answer : D

Question :  What is known as the study of individual units?
a) Macroeconomics
b) Microeconomics
c) Income and Employment Theory
d) Development economics

Answer : B

Question : Which of the following is not an economic activity and hence not included while estimating national income in india?
a) medical services rendered by a dispensary
b) a housewife doing household work
c) a lawyer doing his practice
d) a maid working full time with a family

Answer : B

Question :  When was the famous book of Prof. Keynes published?
a) 1930
b) 1931
c) 1936
d) 1940

Answer : C

Question : Under which type of activity would you categorise the sale of shares of another firm whilst preparing the cash flow statement?
a) Financing activity
b) Investing and financing
c) Operating activity
d) Investing activity

Answer : D

Question : Who used the word ‘micro’ for the first time:
a) Marshall
b) Boulding
c) Keynes
d) Ragnar Frisch

Answer : D

Question :   Which of the following is the salient feature of factors (or resources) ?
a) These are limited as compared to wants
b) These have alternative uses
c) Both a) and b)
d) None of the above

Answer : C

Question : Which of the following is NOT a flow variable?
a) Income
b) Wealth
c) Saving
d) Investment

Answer : B

Question :   When did the great depression occur?
a) 1929-30
b) 1934-35
c) 1938-39
d) 1941-42

Answer : A

Question : What is a good in economics
a) It is a service.
b) It can be a service.
c) It is something that appears appealing.
d) It is something that satisfies wants and needs.

Answer : D

Question : Cotton yarns purchased by handloom worker is
a) An intermediate good
b) A consumer good
c) A capital good
d) None of these

Answer : A

Question : Defects in SNA include
a) Neglects depletion of natural capital
b) Neglects environmental pollution
c) Expenditure to defend the effects of pollution
d) All of the above

Answer : D

Question. Which among the following is not a feature of Keynesian theory?
a) Short run
b) Wage price flexibility
c) Fiscal policy
d) Underemployment equilibrium

Answer : B

Question : Under classical theory, rate of interest is determined by
a) Demand for money and supply of money
b) Demand for capital and supply of savings
c) Demand for investment and price level
d) Demand for investment and supply of money

Answer : B

Question : In the classical view, the price level is determined by
a) aggregate supply
b) aggregate demand and supply
c) supply of money
d) aggregate demand

Answer : C

Question : Under Keynesian theory of income determination, investment
a) Depends on income
b) Endogenous
c) Exogenous
d) Depends on money supply

Answer : C

Question : A laptop purchased by consumer is an example of
a) An intermediate good
b) A consumer good
c) Intermediate consumption
d) None of the above

Answer : B

Question : Under Keynesian model aggregate expenditure is measures along
a) Vertical axis
b) Horizontal axis
c) Vertical intercept
d) 450 line

Answer : A

Question : The value of MPC in Keynesian model is:
a) greater than zero and less than one
b) MPC=1
c) MPC greater than one
d) None of the above

Answer : A

Question : Two sector economy consists of:
a) Households, firms
b) Households, Government
c) Firms, Foreign sector
d) Firms, Government. 

Answer : A

Question : If factor cost is greater than Market price, then it means that:
a) Indirect taxes > subsidies
b) Indirect taxes = subsidies
c) Indirect Taxes < Subsidies
d) Indirect taxes = and > subsidies 

Answer : C

Question : Market price ad factor cost would be equal when there is:
a) no direct tax
b) no indirect tax
c) no subsidy
d) no indirect tax and no subsidy

Answer : D

Question : In which type of economy, domestic income is equal to national income?
a) Open economy
b) Closed Economy
c) Both a and b
d) Neither a nor b

Answer : B

Question : National income is equal to:
a) Domestic product plus factor income earned from abroad
b) domestic product plus net factor income earned from abroad
c) Domestic product mins factor income earned from abroad
d) Domestic product plus export minus imports

Answer : B