CBSE Class 12 Economics Microeconomics MCQs Set B

Question. Farming in which crops are produced to provide for the basic needs of the family is called:
(a) stagnant agriculture
(b) subsistence agriculture
(c) commercial agriculture
(d) none of these

Answer : B

Question. Decay of handicrafts was caused by:
(a) British tariff policy
(6) Competition from machine-made products
(c) Change in patterns of demand
(d) All of these

Answer : D

Question. Suez canal was opened in :
(a) 1867
(c) 1869
(b) 1868
(d) 1870

Answer : D

Question. Gender-bias in the society on the eve of independence was indicated by :
(a) Mortality rate
(b) Literacy rate
(c) Death rate
(d) Life expe

Answer : B

Question. The first railway line in India was laid in:
(a) 1854
(b) 1853
(c) 1855
(d) 1850

Answer : B

Question. Which industry of India got severely affected under the colonial rule?
(a) Sugar industry
(b) Iron & Steel industry
(c) Handicraft industry
(d) Paper industry

Answer : C

Question. A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and `20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X?
(a) 100 units
(b) 25 units
(c) 250 units
(d) 4 units

Answer : B

Question. After reaching the point of satiety, consumption of additional units of the commodity causes:
(a) TU falls and MU increases
(b) Both TU and MU increase
(c) TU falls and MU falls and becomes negative
(d) TU becomes negative and MU falls

Answer : C

Question. A consumer consumes only two goods X and Y whose prices are ₹3 and ₹`4 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 4 and that of Y equal of 3, then the consumer will ________.
(a) Buy more units of both, X and Y
(b) Buy more units of Y and less of X
(c) Buy more units of X and less of Y
(d) Buy less units of both, X and Y

Answer : C

Question. If the demand curve is a rectangular hyperbola, value of price elasticity of demand is _____________.
(a) 1
(b) 0
(c) infinity
(d) less than one

Answer : A

Question. _________ measures the slope of indifference curve.
(a) Budget Line
(b) Marginal Rate of Substitution
(c) Marginal Rate of Transformation
(d) Price Ratio

Answer : B

Question. If the demand curve is vertical, value of price elasticity of demand is ____________.
(a) zero
(b) less than one
(c) more than one
(d) infinity

Answer : A

Question. If two commodities are complements, this means that a rise in the price of one commodity will result in _______.
(a) a rightward shift of demand curve of the other commodity
(b) a rise in the price of the other commodity
(c) no shift in demand curve of the other commodity
(d) a leftward shift in demand curve of the other commodity

Answer : D

Question. When income of the consumer falls the impact on price-demand curve of an inferior good is:
(a) Shifts to the right.
(b) Shifts to the left.
(c) There is upward movement along the curve.
(d) There is downward movement along the curve.

Answer : A

Question. If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be:
(a) Downward sloping convex
(b) Downward sloping concave
(c) Downward sloping straight line
(d) Upward sloping convex

Answer : B

Question. Which one of the following commodities will not have inelastic demand?
(a) Salt
(b) Medicine
(c) Mobile phone
(d) School uniform

Answer : C

Question. When marginal utility is zero, total utility is
(a) zero
(b) minimum
(c) maximum
(d) negative

Answer : C

Question. If Marginal Rate of Substitution is constant throughout, the Indifference curve will be:
(a) Parallel to the X-axis.
(b) Downward sloping concave.
(c) Downward sloping convex.
(d) Downward sloping straight line.

Answer : D

Question. The formula for calculating marginal utility is _________ .
(a) TU_n – TU_n – 1
(b) TU_n + TU_n – 1
(c) MU⁰ = MU₂ = MU₃
(d) MU₁ + MU₂ + MU₃ + … + MU_n

Answer : A

Question. During colonial period, India’s demographic profile showed:- :
(a) High birth rate
(b) High death rate
(c) High infant mortality
(d) All of these

Answer : D

Question. On the eve of independence, bulk of the population was engaged in :
(a) agriculture sector
(b) trade andcommerce
(c) mining sector
(d) industrial sector

Answer : A

Question. High infant mortality is a sign of:
(a) extreme poverty
(b) poor healthcare
(c) both (a) and (b)
(d) none of these

Answer : C

Question. Change in demand implies _____________ .
(a) Increase or decrease in demand of a good due to change in its price
(b) Increase or decrease in demand of a good due to change in the price of its substitute goods
(c) Increase or decrease in demand of a good due to change in the price of its complementary goods
(d) Shifting of demand curve

Answer : D

Question. When demand for a commodity is perfectly inelastic, an increase in price by 2%, leads to increase in quantity demanded by ____ ___.
(a) 10%
(b) 0%
(c) 3%
(d) 2%

Answer : B

Question. On the eve of independence, the proportion of population engaged in agricultural sector:
(a) approx. 40%
(b) approx. 60%
(c) approx. 65%
(d) approx. 70%

Answer : D

Question. Stagnant economy is the one which shows:
(a) little growth in income
(c) low level of productivity
(b) high growth in income
(d) both (a) and (c)

Answer : D

Question. Land holding sat the time of independence were:
(a) fragmented
(b) large
(c) small
(d) both (a) and (c)

Answer : D

Question. On the eve of independence, India was net exporter of:
(a) primary products
(b) industrial products
(c) capital goods
(d) all of these

Answer : A

Question. If with the rise in price of good Y, demand for good X rises, the two goods are:
(a) Substitutes
(b) Complements
(c) Not related
(d) Jointly demanded

Answer : A

Question. The Indian economy on the eve of the independence was:
(a) developed
(b) underdeveloped
(c) stagnant
(d) both (b) and (c)

Answer : D

Question. If due to fall in the price of good X, demand for good Y rises, the two goods are:
(a) Substitutes
(b) Complements
(c) Not related
(d) Competitive

Answer : B

True/False

Question. Landholdings on the eve of independence were fragmented .(True/False)
Answer : True

Question. It was owing to the discriminatory tariff policy of the colonial government that handicraft industry in India got destroyed .(True/False)
Answer : True

Question. Commercialisation of agriculture refers to a shift from cultivation for self-consumption to cultivation for sale in the market. (True/False)
Answer : True

Question. On the eve of independence, only heavy and basic industries were developed in the Indian economy. (True/False)
Answer : False

Question. Infant mortality rate refers to the death rate of children below the age of 2 year per 1000 live births. (True/False)
Answer : False

Question. Per capita income refers to the income per head of the total work force of the country. (True/False)
Answer : False

Question. Railways were developed by the colonial government to promote the market for British goods in India . (True/False)
Answer : True

Question. From the year 1921 , total population inIndia never declined . (True/False)
Answer : True

Question. During British period, India was treatedasa colony supplying raw material to the British industries. (True/False)
Answer : True

Question. Muslin is a type of cotton textile which had its origin in Bengal . (True/False)
Answer : True

Question. The demand for cooking gas is not falling inspite of regular hike in the price of cooking gas. What will be the elasticity of demand for cooking gas? Give reason in support of your answer.
Answer : Demand will be inelastic because cooking gas is a necessity.

Question. What policy initiatives can the government undertake to increase the demand of milk in the country? Mention any one.
Answer : Give subsidies to reduce price/Undertake health campaigns to promote the positive effects of milk consumption.

Question. Ceteris Paribus, if the government provides subsidies on electricity bills, what would be the likely change in the market demand of desert coolers?
Answer : Demand for desert coolers will increase.

Question. Suggest any one economic measure by which the government can promote consumption of ‘Khadi’.
Answer : Reduce price by giving subsidy.

Question. What economic measure can the Government take to reduce demand for commodity X which is harmful for health?
Answer : Put a tax on it so that its price rises

Question. On the eve of independence, Indian economy was a (feudal economy/semi -feudal economy)
Answer : semi-feudal economy

Question. Zamindari system of land revenue worked through the system of middlemen called (jagirdars/zamindars)
Answer : zamindars

Question. An economy made to serve the interests of its colonial rulers is called a (colonial economy/feudal economy)
Answer : colonial economy

Question. is a form of farming in which crops are produced to provide for the basic needs of the family. (Commercial farming/Subsistence farming)
Answer : Subsistence farminga

Question. infrastructure includes educatinal, health and housing facilities. (Economic/Social)
Answer : Social

Question. During the colonial rule, India was a of finished products from/to Britain . (net exporter/net importer)
Answer : net importer

Question. The year is regarded as the ‘ Year of Great Divide’ in the history of demographic transition of India . (1921/1931)
Answer : 1921

Question. Occupational structure refers to the distribution of across primary, secondary and tertiary sectors of the econom. (population/working population)
Answer : working population

Question. as a production activity, belongsto primary sector of the economy. (Animal husbandry/Storage)
Answer : Animal husbandry

Question. At the time of independence, secondary and stage of growt h . sectors were in their infant (primary/tertia ry)
Answer : tertiary