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MCQ Questions for Class 12 Economics Set-2
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1. Which of the following is the method of measuring National Income?
Income method
Product method
Expenditure method
All of these
2. Which method is adopted in measuring National Income?
Production Method
Income Method
Expenditure Method
All of these
3. The market value of all final goods and services produced in an economy over a year is called :
Gross National Product
National Income
Gross Domestic Product
Net National Product
4. If for a country net factor income from abroad is negative then:
GDP < GNP
GDP > GNP
GDP ≥ GNP
GDP = GNP
5. Which of the following is correct?
Disposable Income = Personal Income – Direct Taxes
Disposable Income = Private Income – Direct Taxes
Disposable Income = Personal Income – Indirect Taxes
Disposable Income = Private Income – Indirect Taxes
6. What is the consumption of fixed capital called?
Capital formation
Depreciation
Investment
All of these
7. Which one is included in National Income?
Rent, Wage, Interest
Rent, Wage, Salary
Rent, Profit, Interest
Rent, Wage, Salary, Interest, Profit
8. Which sector is included in an economy?
Primary
Secondary
Tertiary
All of these
9. Which of the following is not included in the calculation of Gross National Product?
Purchase and Sale of Old commodities
Intermediate Commodities
(a) and (b) both
None of the above
10. Which one of the following services are included in the Secondary Sector?
Insurance
Manufacturing
Trade
Banking
11. Which one is included in Primary Sector?
Land
Forest
Mining
All these
12. To include the value of goods or services more than one time while calculating National Income is called :
Single Counting
Double Counting
Multiple Counting
None of these
13. Which one is a component of profit?
Dividend
Undistributed Profit
Corporate Profit Tax
All of these
14. Which one is included in National Income?
Transfer Earnings
Sale proceeds of Shares and Bonds
Black Money
None of the Above
15. Which one is included in the calculation of National Income?
New Final Goods and Services
Earned Income of Indian Companies in Abroad
Expenses made by Foreign Tourists in the country
All the above
16. Which one is the limitation of Macro Economics?
Collective Economic Paradox
Ignores Individual Units
Both (a) and (b)
None of these
17. Macro-economics is the study of:
Principle or Theories of national income
Consumer’s theory
Production theory
None of these.
18. Out of the following which is not a flow:
Capital
Income
Investment
Depreciation.
19. From the following which method is used for measuring national income:
Production method
Income method
Expenditure method
All of the above.
20. Which of the following is included in the primary sector:
Land
Forest
Mines
All of the above.
21. Total national income divided by total population is known as:
Private income
Personal income
Personal spendable income
Per capita income.
22. Production enterprises are divided in:
Two sectors
Three sectors
Four sectors
Five sectors.
23. What is the defect of the barter system?
Lack of double coincidence of wants
Difficulty in the measurement of value
Difficulty in store of value
All of these
24. Which of the following is the credit money?
Cheque and draft
Promissory note
Exchange note
All of these
25. Which among the following is the near money?
Bonds
Insurance policy
Securities
All of these
26. Which of the following is the feature of money?
General acceptability
Homogeneous unit
Liquid asset
All of these
27. In order to encourage investment in the economy, the Central Bank may ________
Reduce Cash Reserve Ratio
Increase Cash Reserve Ratio
Sell Government securities in the open market
Increase Bank Rate
28. Institution that accepts deposits for lending purpose is known as __________
Commercial Bank
Central Bank
Government
Public
29. Which of the following is the function of a commercial bank?
Accepting deposits
Credit creation
Agency function
All of these
30. The central bank can increase the availability of credit by:
Rasing repo rate
Raising reverse repo rate
Buying government securities
Selling government securities
31. Giving permission to withdraw money by an amount more than deposited to is known as _________
Advance
Overdraft
Loan
None of these
32. What are the alternative measures of money supply in India?
M1
M2
M3 and M4
All of these
33. Who circulates all mint and one rupee not in India?
Ministry of Finance
RBI
Ministry of External Affairs
State Government
34. Which of the following is the narrow measure of the money supply?
M2
M3
M1
M4
35. When was the minimum reserve system started in India?
1947
1948
1951
1957
36. Which is the most liquid measure of the money supply?
M4
M3
M2
M1
37. High Powered Money includes:
C + DD + OD
C + R + OD
C + R + TD
C + DD + TD
38. Indian Monetary System is based on ________
Paper Standard
Metallic Standard
Gold Standard
Credit Money Standard
39. Which of the following is the apex bank of India?
RBI
SBI
SBP
PNB
40. Who has the right of note issue?
Central Bank
Commercial Bank
Government
Co-operative Bank
41. Which of the following is the function of a Central bank?
Issue of notes
Banker to the Government and Banks
Supply and control of money
All of these
42. The ratio of total deposits that a commercial bank has to keep with RBI is called:
Statutory liquidity ratio
Deposit ratio
Cash reserve ratio
Legal reserve ratio
43. Demand deposits include
Saving account deposits and fixed deposits
Saving account deposits and current account deposits
Current account deposits and fixed deposits
All type of deposits
44. What are the necessary conditions of the Barter System?
Limited Needs
Limited Exchange Area
Economically Backward Society
All the above
45. What are the advantages of the Barter System?
Simple System
More Mutual Co-operation
No Economic Disparities
All the above
46. Which one is the difficulty of the Barter System?
Lack of Double Coincidence
Difficulty of Division of the Goods
Lack of General Acceptable Measure of Value
All the above
47. Which is the correct order of money evolution?
Commodity Money, Paper Money, Metal Money
Commodity Money, Metal Money, Paper Money, Credit Money
Credit Money, Metal Money, Paper Money
None of the above
48. “Money is what money does.” Who said it?
Hartley Withers
Hawtrey
Thomas
Keynes
49. Which one is included in the primary function of money?
Medium of Exchange
Measure of Value
Both (a) and (b)
Store of Value
50. Which one is included in the secondary function of money?
To make Deferred Payments
Store of Value
Transfer of Value
All of these
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