Bihar Board 12th Economics VVI Objective Questions Model Set 3 in English

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics VVI Objective Questions Model Set 3 in English

Question 1.
Which of the following is not a factor of production ?
(A) Land
(B) Labour
(C) Money
(D) Capital
Answer:
(C) Money

Question 2.
According to whom, Economics is a science of human welfare ?
(A) A. Marshall
(B) Paul Samuelson
(C) J.S. Mill
(D) Adam Smith
Answer:
(A) A. Marshall

Question 3.
The word ‘micro’ was firstly used by :
(A) Marshall
(B) Boulding
(C) Keynes
(D) Ragnar Frish
Answer:
(D) Ragnar Frish

Question 4.
Who gave the definition of Economics related to welfare ?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Samuelson
Answer:
(B) Marshall

Question 5.
“Economics is ascience of logic.” who said it ?
(A) Hicks
(B) Keynes
(C) Robbins
(D) Marshall
Answer:
(C) Robbins

Question 6.
How we calculate marginal utility ?
(A) ∆TU/∆Q
(B) ∆MU/∆Q
(C) ∆Q/∆TU
(D) ∆Q/∆MU
Answer:
(A) ∆TU/∆Q

Question 7.
The ability of satisfying human want in a goods is caled its:
(A) Productivity
(B) Satisfaction
(C) Utility
(D) Profitability
Answer:
(C) Utility

Question 8.
Slope of budget line or price line is :
\((A) -\frac{P_{x}}{P_{y}}
(\mathrm{B})-\frac{\mathrm{P}_{y}}{\mathrm{P}_{x}}
(C) +\frac{P_{x}}{P_{y}}
(\mathrm{D})+\frac{\mathrm{P}_{y}}{\mathrm{P}_{x}}\)
Answer:
\((A) -\frac{P_{x}}{P_{y}}\)

Question 9.
Goods, which can alternatively be used, are called :
(A) Complementary Goods
(B) Substitutes
(C) Comforts
(D) None of these
Answer:
(B) Substitutes

Question 10.
Law of Demand is a :
(A) Qualitative Statement
(B) Quantitative Statement
(C) Both (A) and (B)
(D) None of these
Answer:
(A) Qualitative Statement

Question 11.
Elasticity of demand for necessities is :
(A) Zero
(B) Unlimited
(C) Greater than unity
(D) Less than unity
Answer:
(A) Zero

Question 12.
If the demand for a good changes by 60% due to 40% change in price, the elasticity of demand is :
(A) 0.5
(B) -1.5
(C) 1
(D) zero
Answer:
(B) -1.5

Question 13.
Long-run production function is related to :
(A) Law of Demand
(B) Law of Increasing Returns
(C) Laws of Returns to Scale
(D) Elasticity of Demand
Answer:
(C) Laws of Returns to Scale

Question 14.
In which stage of production a rational producer likes to operate in shot-run production ?
(A) First Stage
(B) Second Stage
(C) Third Stage
(D) None of these
Answer:
(B) Second Stage

Question 15.
The cycle which increases first and after being constant starts to reduce is called :
(A) APP
(B) MPP
(C) TPP
(D) All these
Answer:
(D) All these

Question 16.
Law of variable proportion is related to :
(A) Both short-run and long run
(B) Long-run
(C) Short-run
(D) Very Long-run
Answer:
(C) Short-run

Question 17.
Which of the following is not fixed cost ?
(A) Insurance Premium
(B) Interest
(C) Cost of Raw Material
(D) Rent of the Factory
Answer:
(C) Cost of Raw Material

Question 18.
Supply is associated with :
(A) A Time Period
(B) Price
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Question 19.
If the price of goods rises by 60 % but supply increases by only 5%, the supply of goods will be :
(A) Highly Elastic
(B) Elastic
(C) Inelastic
(D) Perfectly Inelastic
Answer:
(C) Inelastic

Question 20.
The elasticity of a straght line supply curve originating from the centre of origin is :
(A) Less than unity
(B) greater than unity
(C) equal to unity
(D) equal to zero
Answer:
(C) equal to unity

Question 21.
Which one is a feature of monopoly ?
(A) Single Seller and Many Buyers
(B) Lack of Close Substitutes
(C) Restrictions of New Firm entry
(D) All of these
Answer:
(D) All of these

Question 22.
A market in which there is free entry and exit, the market is:
(A) Monopolistic Competitive Market
(B) Imperfect Competitive Market
(C) Perfectly Competitive Market
(D) None of these
Answer:
(C) Perfectly Competitive Market

Question 23.
Which of the following is the feature of pure competition ?
(A) Perfect knowledge of the market
(B) Perfect mobility of factors
(C) Homogenity by products
(D) All the above
Answer:
(D) All the above

Question 24.
Market situation where there is only one buyer is :
(A) Monopoly
(B) Monopsony
(C)Duropoly
(D) None of these
Answer:
(B) Monopsony

Question 25.
Price of a commodity is determined at a where :
(A) Demand exceeds
(B) Supply exceeds
(C) Demand equals supply
(D) None of these
Answer:
(C) Demand equals supply

Question 26.
Which one is included in flow ?
(A) Consumption
(B) Investment
(C) Income
(D) All of these
Answer:
(D) All of these

Question 27.
Which one is included in three-sector model ?
(A) Family
(B) Firm
(C) Government
(D) All of these
Answer:
(D) All of these

Question 28.
The market price of all final goods and services produced in the domestic territory of a country in a year is known as :
(A) GDP_Mp
(B) GD_PC
(C) NN_PC
(D) None of these
Answer:
(A)GDP_Mp

Question 29.
Which one is true ?
(A) GNP = GDP + Depreciation
(B) NNP = GNP + Depreciation
(C) NNP = GNP – Depreciation
(D) GNP = NNP – Depreciation
Answer:
(C) NNP = GNP – Depreciation

Question 30.
Net National Income at Factor Cost is called :
(A) National Income
(B) Gross Investment
(C) Domestic Income
(D) None of these
Answer:
(A) National Income

Question 31.
Which of the following is not a function of money ?
(A) Medium of exchange
(B) Price stability
(C) Store of value
(D) Unit of account
Answer:
(B) Price stability

Question 32.
Which is the Agency Function of Commercial Banks ?
(A) Advancing Loans
(B) Accepting Deposits
(C) Act as Trustee
(D) Locker Facility
Answer:
(C) Act as Trustee

Question 33.
Which of the following is the function of Central Bank ?
(A) Monopoly of Note Issue
(B) Banker of the Government
(C) Custodian of Foreigen Exchange Reserves
(D) All the above
Answer:
(D) All the above

Question 34.
Which type of currency is issued by the Central Bank ?
(A) Currency
(B) Credit Money
(C) Coins
(D) All of these
Answer:
(A) Currency

Question 35.
Which is not quantitative method of credit control ?
(A) Bank Rate
(B) Moral Suasion
(C) Open Market Operations
(D) Change in CRR
Answer:
(B) Moral Suasion

Question 36.
Reserve Bank of India was established in :
(A) 1947
(B) 1935
(C) 1937
(D) 1945
Answer:
(B) 1935

Question 37.
According to Keynes, investment implies :
(A) Financial Investment
(B) Real Investment
(C) Both (A) and (B)
(D) None of the above
Answer:
(B) Real Investment

Question 38.
Which of the following is a Real Investment ?
(A) Purchasing of a Share
(B) urchasing of Old Factory
(C) Construction of Buildings
(D) Opening Deposit Account in the Bank
Answer:
(C) Construction of Buildings

Question 39.
If MPC = 0.5, then Multiplier (k) will be :
(A) 1/2
(B) = 0
(C) 1
(D) 2
Answer:
(D) 2

Question 40.
Which one of the following is the determining factor of Equilibrium Income in Keynesian Viewpoint ?
(A) Aggregate Demand
(B) Aggregate Supply
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Question 41.
In the situation of deflationary gap :
(A) Demand increases rapidly
(B) Supply increases rapidly
(C) Both demand and supply are equal
(D) All of these
Answer:
(D) All of these

Question 42.
Which is a component of Budget Receipt ?
(A) Revenue Receipt
(B) Capital Receipt
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Question 43.
Tax revenue of the Government includes :
(A) Income Tax
(B) Corporate Tax
(C) Excise Duty
(D) All of these
Answer:
(D) All of these

Question 44.
Which is included in the Direct Tax ?
(A) Income Tax
(B) Gift Tax
(C) Both (A) and (B)
(D) Excise Duty
Answer:
(C) Both (A) and (B)

Question 45.
The expenditures which do not create for the government is called:
(A) Revenue Expenditure
(B) Capital Expenditure
(C) Both (A) and (B)
(D) None of the above
Answer:
(A) Revenue Expenditure

Question 46.
Which of the following statement is true ?
(A) Fiscal deficit is the difference between total expenditure and total receipts
(B) Primary deficit is the difference between total receipt and interest patments
(C) Fiscal deficit is the sum of primary deficit and interest payment
(D) None of the above
Answer:
(C) Fiscal deficit is the sum of primary deficit and interest payment

Question 47.
By exchange rate we mean :
(A) How much local currency we have to pay for a foreign currency
(B) How much of a foreign currency we have to pay for another foreign currency
(C) The rate at which foreign currency is bought and sold
(D) All of these
Answer:
(D) All of these

Question 48.
Which one is the invisible item of Balance of Payments ?
(A) Banking
(B) Shipping
(C) Communication
(D) All of these
Answer:
(D) All of these

Question 49.
Which one is the feature of Balance of Payments ?
(A) Systematic Accounts
(B) Fixed Time Period
(C) Comprehensiveness
(D) All the above
Answer:
(D) All the above

Question 50.
Which one is the item of Capital Account ?
(A) Government Transactions
(B) Private Transactions
(C) Foreign Direct Investment
(D) All the above
Answer:
(D) All the above