CBSE XII Economics practice questions

Question 1

Which of the following is NOT included in the estimation of Domestic Income?

Accepted Answer

Old-age pensions paid by the government

Answer

Brokerage on sale of second-hand shares

Answer

Imputed rent of owner-occupied houses

Answer

Operating surplus of public enterprises

Question 2

If the Legal Reserve Ratio (LRR) is 20%, an initial cash deposit of Rs 1,000 Crore will create total credit of:

Accepted Answer

Rs 5,000 Crore

Answer

Rs 2,000 Crore

Answer

Rs 4,000 Crore

Answer

Rs 10,000 Crore

Question 3

The slope of the Consumption Function curve is measured by:

Accepted Answer

Marginal Propensity to Consume (MPC)

Answer

Average Propensity to Consume (APC)

Answer

Autonomous Consumption (c_bar)

Answer

Investment Multiplier (k)

Question 4

Interest payments on public debt incurred in previous years are classified as:

Accepted Answer

Revenue Expenditure

Answer

Developmental Capital Expenditure

Answer

Capital Receipt

Answer

Plan Capital Outlay

Question 5

Accommodating transactions in the Balance of Payments are carried out to:

Accepted Answer

Bridge the gap / cover the deficit or surplus in Autonomous transactions

Answer

Maximize international arbitrage profit

Answer

Speculate on foreign currency movements

Answer

Fund foreign direct investment projects

Question 6

Which of the following was NOT an element of trade and industrial deregulation under the 1991 New Economic Policy?

Accepted Answer

Expansion of quantitative import restrictions

Answer

Abolition of industrial licensing for most industries

Answer

Contraction and dereservation of the public sector

Answer

Reduction in import tariffs and duties

Question 7

The Right of Children to Free and Compulsory Education (RTE) Act was enacted by the Indian Parliament in:

Accepted Answer

2009

Answer

2002

Answer

2005

Answer

2014

Question 8

The phenomenon where more workers are engaged in an agricultural activity than genuinely required is termed:

Accepted Answer

Disguised unemployment

Answer

Frictional unemployment

Answer

Structural unemployment

Answer

Seasonal unemployment