All Chapter MCQs of economics for 10+2 Students
These questions are prepared by qualified and experienced teachers, specially for class 12 students of economics and the ones planning to appear for CUET exams.
1. During basic economic activities, every society must face a scarcity of resources and it is the scarcity of resources that gives rise to the problem of _____.
a. Unemployment
b. Poverty
c. Choice
d. Wealth
2. Identify from the following the Economic problem that is concerned with ‘Whether to
have more of basic education or more of higher education.”
a. What is produced and in what quantities?
b. How are these goods produced?
c. For whom are these goods produced?
d. Why to produce?
3 Identify which of the following questions are studied in Microeconomics.
(i) How prices and quantities of goods and services are determined.
(ii) What is the level of total output in the economy?
(iii) How is the total output determined?
(iv) What are the reasons behind the unemployment of resources?
a. (i) and (ii) Only
b. (i) and (iii) Only
c. (ii) and (iv) Only
d. (i) Only
4. Income Effect in case of Inferior goods is.
a. Zero
b. One
c. Negative
d. Positive
5. If 4 bananas give us 28 units of total utility and 5 bananas give us 30 units of total utility.
How much is the Marginal utility derived from the 5th unit?
a. 58 units
b. 30 units
c. 2 units
d. 5 units
6. After reaching the point of satiety, consumption of additional units of 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
7. Anu decided to buy apples. While trying to obtain equilibrium She got stuck in the following equation:
MUx/Px > MUy/Py, then identify from the following that what Anu should do to reach equilibrium.
a. Stop buying both commodities
b. Buy both commodities
c. Buy more of X and less of Y
d. Buy less of X and More of Y
9..
Identify the Elasticity of demand in the above diagram.
a. Ed = 0
b. Ed > 1
c. Ed < 1
d. Ed =1
10. Identify the correct value of elasticity of demand if the price of a good falls by 10% and the quantity demanded rises by 25%.
a. 2.
b. – 2.5
c. 0.4
d. – 0.4
11. Identify Which of the following statements is correct in reference to macroeconomics.
a. (i) ,(ii) and (iv) Only
b.(i) , (ii) and (iii) Only
c. (ii) and (iv) Only
d. (i) and (ii) Only
12. Steel sheets used for making automobiles and copper used for making utensils are examples of types of goods.
a. Final goods.
b. Consumer Goods
c. intermediate goods,
d. capital goods
13. A tank is being filled with water coming from a tap. The amount of water which is flowing into the tank from the tap per minute is a (i)____________________
But how much water there is in the tank at a particular point of time is (ii)__________________
a. (i) Flow, (ii) Stock
b. (i) Stock (ii) Flow
c. (i) Flow (ii) Flow
d. (i) Stock (ii) Stock
14. A firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. What will be the net value added of the firm?
a. Rs. 80
b. Rs. 90
c. Rs. 70
d. Rs. 110
16. If the price of a pencil is Rs 2 and that of a pen is Rs 10 we can calculate the relative price of a pen with respect to a pencil, viz. a pen is worth 10 ÷ 2 = 5 pencils. Identify the function of money highlighted in the above example.
a. store of value
b. medium of exchange
c unit of account
d. barter exchanges
17. RBI is planning to increase the bank rate of interest to reduce the demand for money. Identify the function of the central bank highlighted in the above case.
a. issues the currency
b. acts as a banker to the government
c. custodian of the foreign exchange reserves
d. controls the money supply of the country
18. The interest rate paid by the banks to depositors is lower than the rate charged by the borrowers. This difference between these two types of interest rates called the _______ is the profit appropriated by the bank.
a. Interest rate
b. Profit
c. Margin
d. Spread
19. Rama plans to add Rs 100 worth of goods to her stock by the end of the year.. However, due to an unforeseen upsurge of demand for her goods in the market, the volume of her sales exceeds what she had planned to sell, and, to meet this extra demand, she has to sell goods worth Rs 30 from her stock. Therefore, at the end of the year, her inventory goes up by Rs (100 – 30) = Rs 70 only. Her (i) _____investment is Rs 100 whereas her (ii)_______, investment is Rs 70 only.
20. Identify which of the following statements are correct in reference to the consumption function: