Bihar Board 12th Economics Objective Questions and Answers
Bihar Board 12th Economics VVI Objective Questions Model Set 2 in English
Question 1.
Which Economist divided Economics in two branches of micro and macro on the basis of economics activity ?
(A) Marshall
(B) Ricardo
(C) Ragnar Frish
(D) None of these
Answer:
(C) Ragnar Frish
Question 2.
Which of the following is studied under Micro Eco¬nomics ?
(A) Individual unit
(B) Economic Aggregate
(C) National Income
(D) None of these
Answer:
(A) Individual unit
Question 3.
Which of the following economic activities are included in the subject-matter of Economics ?
(A) Economics Activities related to Unlimited Wants
(B) Economic Activities related to Limited Resources
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)
Question 4.
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) All of these
Question 5.
Mention the name of the curve which shows economic problem:
(A) Productions Curve
(B) Demand Curve
(C) Indifference Curve
(D) production Possibility Curve
Answer:
(D) production Possibility Curve
Question 6.
Who gave the cardinal concept of utility ?
(A) Marshall
(B) Pigou
(C) Hicks
(D) Samuelson
Answer:
(A) Marshall
Question 7.
Consumer’s behaviour is studied in :
(A) Micro Economics
(B) Macro Economics
(C) Income Analysis
(D) None of these
Answer:
(A) Micro Economics
Question 8.
Which is the First Law of Gossen ?
(A) Law of Demand
(B) Law of Diminishing Marginal Utility
(C) Law of Equi-marginal Utility
(D) Consumer’s Surplus
Answer:
(B) Law of Diminishing Marginal Utility
Question 9.
Which element is essential for demand ?
(A) Desire to consumer
(B) Avaiability of adequate resources
(C) Willingness to consume
(D) All to these
Answer:
(D) All to these
Question 10.
Demand Curve generally slopes :
(A) Upward from left to right
(B) Downward from left to right
(C) Parallel to X-axis
(D) Parallel to Y-axis
Answer:
(B) Downward from left to right
Question 11.
With rise in coffee price, the demand of tea :
(A) Rises
(B) Falls
(C) Remains stable
(D) None of these
Answer:
(A) Rises
Question 12.
With a rise in price the demand for ‘Giffin’ goods :
(A) increases
(B) decreases
(C) remains’constant
(D) becomes unstable
Answer:
(A) increases
Question 13.
With which method, elasticity of demand is measured ?
(A) Total Expenditure Method
(B) Percentage or Proportionate Method
(C) Point Method
(D) All of these
Answer:
(D) All of these
Question 14.
How many types elasticity of demand has ?
(A) Three
(B) Five
(C) Six
(D) Seven
Answer:
(B) Five
Question 15.
For luxury goods the demand is :
(A) Inelastic
(B) Elastic
(C) Highly elastic
(D) Perfectly Inelastic
Answer:
(C) Highly elastic
Question 16.
In production fucntion, production is a function of:
(A) Price
(B) Factors of Production
(C) Total Expenditure
(D) None of these
Answer:
(B) Factors of Production
Question 17.
The basic reason of operating the Law of Diminishing Returns is:
(A) Scarcity of Factors
(B) Imperfect Substitution between Factors
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 18.
Which statement of the following is true ?
(A) AC = TFC – TVC
(B) AC = AFC + TVC
(C) AC = TFC = AVC
(D) AC = AFC + A VC
Answer:
(D) AC = AFC + A VC
Question 19.
The quantity of a goods which the seller is ready to sell in the market at fixed price and time is called ?
(A) Supply
(B) Demand
(C) Elasticity of supply
(D) Elasticity of demand
Answer:
(A) Supply
Question 20.
The measurement of the elasticity of supply is expressed as :
\((A) \frac{\Delta Q_{s} / Q_{s}}{\Delta P / P}
(B) \frac{Q_{s}}{\Delta P} \cdot \frac{1}{P}
(C) \frac{Q_{s}}{Q_{s}} \cdot \Delta P
(D) \frac{\Delta P}{Q_{s}} \cdot \frac{P}{\Delta Q_{s}}\)
Answer:
\((A) \frac{\Delta Q_{s} / Q_{s}}{\Delta P / P}\)
Question 21.
Which is a characteristic of the market ?
(A) One Area
(B) Preasence of both Buyers and Sellers
(C) Single Price of the Commodity
(D) All the above
Answer:
(D) All the above
Question 22.
Which factor determines Equilibrium Price ?
(A) Demand for Commodity
(B) Supply of Commodity
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 23.
“Price is determined by Demand and Supply. Whose statment is this” ?
(A)Jevons
(B) Walras
(C) Marshall
(D) None of these.
Answer:
(C) Marshall
Question 24.
Which statement is correct ?
(A) In very short period, supply is perfectly inelastic, price is affected by both demand conditions.
(B) Supply curve elasticity depends on time period
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 25.
Market Price is found in :
(A) Short Period Market
(B) Long Period Market
(C) Very Long Period Market
(D) None of these
Answer:
(A) Short Period Market
Question 26.
Which of the following is a stock ?
(A) Wealth
(B) Saving
(C) Export
(D) Profit
Answer:
(A) Wealth
Question 27.
Which one of the following is included in ‘Stock’ ?
(A) Quantity of Money
(B) Wealth
(C) Quantity of wheat stored in warehouse
(D) All the above
Answer:
(D) All the above
Question 28.
Primary sector includes :
(A) Agriculture
(B) Retail trading
(C) Small Industries
(D) All the these
Answer:
(D) All the these
Question 29.
Which one is a component of profit ?
(A) Divident
(B) Undistributed Profit
(C) Corporate Profit Tax
(D) All of these
Answer:
(D) All of these
Question 30.
Which one is included in National Income ?
(A) Rent, Wage, Interest
(B) Rent, Wage, Salary
(C) Rent, Profit, Interest
(D) Rent, Wage, Salary, Interest, Profit
Answer:
(D) Rent, Wage, Salary, Interest, Profit
Question 31.
“Money is what money does.” Who said it ?
(A) Hartley Withers
(B) Hawtrey
(C) Thomas
(D) Keynes
Answer:
(A) Hartley Withers
Question 32.
The function of money is :
(A) Medium of Exchange
(B) Measure of Value
(C) Store of Value
(D) All the above
Answer:
(D) All the above
Question 33.
The primary function of Commercial Bank is ?
(A) Accepting Deposits
(B) Advancing Loans
(C) Credit Creation
(D) All of these
Answer:
(D) All of these
Question 34.
Credit money is increased when CRR :
(A) Falls
(B) Rises
(C) Both (A) and (B)
(D) None of these
Answer:
(A) Falls
Question 35.
Central Bank of India is :
(A) Reserve Bank of India
(B) State Bank of India
(C) Central Bank of India
(D) Bank of India
Answer:
(A) Reserve Bank of India
Question 36.
Who is the author of the book ‘General Theory of Employment, Interest and Money’ ?
(A) A.C. Pigou
(B) Malthus
(C) J.M. Keyness
(D) Marshall
Answer:
(C) J.M. Keyness
Question 37.
On which factor Keyesian Theory of Employment depends ?
(A) Effective Demand
(B) Supply
(C) Production Efficiency
(D) None of the above
Answer:
(A) Effective Demand
Question 38.
MPC + MPS = ?
(A) ∞
(B) 2
(C) 1
(D) 0
Answer:
(C) 1
Question 39.
Multiplier can be expressed as :
(A) K = \(\frac{\Delta \mathrm{S}}{\Delta \mathrm{I}}\)
(B) K = \(\frac{\Delta Y}{\Delta l}\)
(C) K = I – S
(D) None of the these
Answer:
(B) K = \(\frac{\Delta Y}{\Delta l}\)
Question 40.
Which of the following is correct ? .
(A) MPC and multiplier have direct relationship
(B) MPS and multiplier have inverse relationship
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 41.
Which of the following is included in fiscal policy ?
(A) Public Expenditure
(B) Tax
(C) Public Debt
(D) All of these
Answer:
(D) All of these
Question 42.
Budget may include :
(A) Revenue Deficit
(B) Finscal Deficit
(C) Primary Deficit
(D) All of these
Answer:
(D) All of these
Question 43.
Which one of the following is a pair of direct tax ?
(A) Excise duty and Wealth Tax
(B) Service Tax and Income Tax
(C) Excise Duty and Service Tax
(D) Wealth Tax and Income Tax
Answer:
(D) Wealth Tax and Income Tax
Question 44.
Which of the following is not a revenue receipt ?
(A) Recovery of Loans
(B) Foreign Grants
(C) Profits of Public Enterprise
(D) Wealth Tax
Answer:
(A) Recovery of Loans
Question 45.
Which of the following is a correct measure of primary deficit ?
(A) Fiscal deficit minus revenue deficit
(B) Revenue deficit minus interest payments
(C) Fiscal deficit minus interest payments
(D) Capital expenditure minus revenue expenditure
Answer:
(C) Fiscal deficit minus interest payments
Question 46.
Which one is a kind of exchange rate ?
(A) Fixed Exchange Rate
(B) Flexible Exchange Rate
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 47.
Which of the following is true ?
(A) Fixed exchange rate is determined by the government
(B) Flexible exchange rate is determined by market (demand and supply of foreign exchange)
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)
Question 48.
Balance of Trade = ?
(A) Export of Visible Items – Imports of Visible Items
(B) Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
(C) Import of Visible Items – Export of Visible Items
(D) None of the above
Answer:
(A) Export of Visible Items – Imports of Visible Items
Question 49.
Which items are included in Balance of Payments ?
(A) Visible Items
(B) Invisible Items
(C) Capital Transfers
(D) All the above
Answer:
(D) All the above
Question 50.
Which one is the item of Current Account ?
(A) Import of Visible Items
(B) Expenses of Tourists
(C) Exports of Visible Items
(D) All the above
Answer:
(D) All the above