Bihar Board 12th Economics VVI Objective Questions Model Set 5 in English

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics VVI Objective Questions Model Set 5 in English

Question 1.
The subject matter of economics is being studied under which branches:
(A) Micro Economics
(B) Macro Economics
(C) Above two
(D) None of the above
Answer:
(C) Above two

Question 2.
On the basis of the ownership of the resources, economies are ?
(A) Centrally planned economy
(B) Market economy
(C) Mixed economy
(D) All of above
Answer:
(D) All of above

Question 3.
Which are the central problems of an economy ?
(A) Allocation of resources
(B) Best use of resources
(C) Economic development
(D) All the above
Answer:
(D) All the above

Question 4.
Macro Economics studies:
(A) Full employment
(B) Aggregate price level
(C) Gross National Product
(D) All the above
Answer:
(D) All the above

Question 5.
This is required for a budget set:
(A) Collection of bundles
(B) Prevailing market price
(C) Total income of the consumer
(D) All the above
Answer:
(D) All the above

Question 6.
In diminishing rate of substitution :
(A) more of goods 1
(B) less of goods 2
(C) more of both 1 and 2
(D) (A) and (B) both
Answer:
(C) more of both 1 and 2

Question 7.
Consumer behaviour is studied in :
(A) Micro Economics
(B) Macro Economics
(C) Income theory
(D) None of the above
Answer:
(B) Macro Economics

Question 8.
Slope of the budget line is :
\((A) -\frac{P x}{P y}
(B) -\frac{P y}{P x}
(\mathrm{C})+\frac{P y}{P x}
(D) None of the above\)
Answer:
(A)

Question 9.
Indifference curve is:
(A) Concave to the origin
(B) Convex to the origin
(C) Both the above true
(D) Both the above false
Answer:
(C) Both the above true

Question 10.
The slope of the demand curve is :
(A) left to right downward
(B) left to right upward
(C) parallel to x-axis
(D) none of the above
Answer:
(C) parallel to x-axis

Question 11.
Demand function is expressed by which equation ?
(A)Px
(B) Dx = Px
(C) Dx = f(Px)
(D) None of the above
Answer:
(D) None of the above

Question 12.
Short run production function is explained by which law ?
(A) By the law of demand
(B) By law of variable proportions
(C) By law of returns to scale
(D) By elasticity of demand
Answer:
(A) By the law of demand

Question 13.
Tick the correct in the following :
(A) TVC = TC-TFC
(B) TC – TVC-TFC
(C) TFC = TVC + TC
(D) TC = TVC x TFC
Answer:
(B) TC – TVC-TFC

Question 14.
MR is expressed as :
(A) \(\frac{\Delta T R}{\Delta Q}\)
(B) \(\frac{T R}{Q}\)
(c) \(\frac{\Delta A R}{Q}\)
(d) None of these
Answer:
(A) \(\frac{\Delta T R}{\Delta Q}\)

Question 15.
In monopoly and monopolistic condition :
(A )AR = MR
(B )AR>MR
(C) AR < MR
(D) None of the above
Answer:
(A )AR = MR

Question 16.
In every market situation which condition is necessary to be fulfilled for a firm’s equilibrium ?
(A) AR = MC
(B) MR – MC
(C) MC curve should cut the MR curve from below
(D) (B)and (C)both
Answer:
(D) (B)and (C)both

Question 17.
Which of the following statement is true ?
(A) There is direct relationship between the price of a commodity and its Supply
(B) Supply curve moves left to right upward
(C) Supply is affected by many factors
(D) All the above
Answer:
(D) All the above

Question 18.
If the price of a commodity rises by 40% but the supply increases by only 15%, supply of such commodity would be :
(A) Excessive elastic
(B) Elastic
(C) Inelastic
(D) completely inelastic
Answer:
(D) completely inelastic

Question 19.
In equilibrium position:
(A) The amount to be sold is equal to the amount to be purchased.
(B) Market supply is equal to market demand
(C) Neither the firm nor the consumer wants to be destabilised
(D) All the above
Answer:
(D) All the above

Question 20.
Every firm uses labour up to the point:
(A) Where labour’s marginal productivity is equal to the wage rate
(B) Where labour’s marginal productivity is less than the wage rate
(C) Where labour’s marginal productivity is more than the wage rate
(D) None of the above
Answer:
(A) Where labour’s marginal productivity is equal to the wage rate

Question 21.
In which market product differentiation is found ?
(A) Pure competition
(B) Perfect competition
(C) Monopoly
(D) Monopolistic competition
Answer:
(C) Monopoly

Question 22.
Government decides “price ceiling”
(A) On necessary goods
(B) Which is less than the price decided by market ?
(C) To make it affordable to the common man
(D) All of the above
Answer:
(D) All of the above

Question 23.
Price is determined at the point, where :
(A) Demand of the commodity is high
(B) Supply of the commodity is high
(C) Demand of the commodity and supply of the commodity is equal
(D) None of the above
Answer:
(C) Demand of the commodity and supply of the commodity is equal

Question 24.
Market price is found in :
(A) Short period market
(B) Long period market
(C) Very long period market
(D) None of the above
Answer:
(A) Short period market

Question 25.
British economist John Maynard Keynes famous book “The General Theory” was published in which year :
(A) 1926
(B) 1936
(C) 1946
(D) 1956
Answer:
(C) 1946

Question 26.
The great Depression came in which year :
(A) 1949
(B) 1939
(C) 1929
(D) 1919
Answer;
(C) 1929

Question 27.
Macro economics sees an economy as a combination of which sectors :
(A) Family
(B)Firm
(C) Government and external sector
(D) All of above
Answer:
(D) All of above

Question 28.
GNP_Mp=?
(A) GDP_Mp – Depreciation
(B) GDP_Mp + net factor income from abroad
(C) Both the above
(D) None of the above
Answer:
(D) None of the above

Question 29.
Which is the correct sequence of money’s development ?
(A) Commodity money, Paper money, Metal money
(B) Commodity money, Metal money. Paper money
(C) Credit money, Metal money, Paper money
(D) None of the above
Answer:
(A) Commodity money, Paper money, Metal money

Question 30.
Reserve Bank of India has presented four measures of money supply, namely M₁, M₂, M₃ and M₄, M₅ includes:
(A) C = currency held by public
(B) DD = net demand deposit of the bank
(C) OD = other deposits held with the RBI
(D) All of the above
Answer:
(A) C = currency held by public

Question 31.
Which is common man’s bank ?
(A) Commercial Bank
(B) Central Bank
(C) (A) and (B) both
(D) None of the above
Answer:
(C) (A) and (B) both

Question 32.
Credit multiplier is :
(A) \(\frac{1}{C R R}\)
(B) \(\text { Cash } \times \frac{1}{C R R}\)
(C) Cash x CRR
(D) None of the above
Answer:
(C) Cash x CRR

Question 33.
Which of the following is Central Bank’s function ?
(A) Right of issuing notes
(B) Government’s banker
(C) Custodian of Foreign Exchange Reserves
(D) All of the above
Answer:
(D) All of the above

Question 34.
Which currency is issued by Central Bank of the country ?
(A) Money in circulation
(B) Credit money
(C) Coins
(D) All of the above
Answer:
(A) Money in circulation

Question 35.
In an open economy which are the components of Aggregate Demand :
(A) Consumption
(B) Investment
(C) Consumption + government expenditure
(D) Consumption + Investment + Govt, expenditure + net export
Answer:
(D) Consumption + Investment + Govt, expenditure + net export

Question 36.
APC + APS = ?
(A) 0
(B) 1
(C) Infinity
(D) None of the above
Answer:
(C) Infinity

Question 37.
What are the reasons of excess demand ?
(A) Increase in public expenditure
(B) Increase in money supply
(C) Decrease in taxes
(D) All the above
Answer:
(D) All the above

Question 38.
Indian’s financial year is :
(A) lsl April to 31st March
(B) 1st January to 3 Ist March
(C) 1st July to 30th June
(D) None of the above
Answer:
(A) lsl April to 31st March

Question 39.
In direct taxes which one of the following is included ?
(A) Income Tax
(B) Gift Tax
(C) (A) and (B) both
(D) None of the above
Answer:
(C) (A) and (B) both

Question 40.
In India who issues one rupee note :
(A) Reserve Bank of India
(B) Finance Ministry of govt, of India
(C) State Bank of India
(D) None of the above
Answer:
(B) Finance Ministry of govt, of India

Question 41.
Capital Budget includes :
(A) Revenue receipts and revenue expenditure
(B) Capital receipts and capital expenditure
(C) Direct and Indirect taxes
(D) None of the above
Answer:
(B) Capital receipts and capital expenditure

Question 42.
Primary deficit is :
(A) Fiscal Deficit – Interest Payment
(B) Fiscal Deficit + Interest Payment
(C) (A) and (B) both
(D) None of the above
Answer:
(A) Fiscal Deficit – Interest Payment

Question 43.
Budgets are of the following types :
(A) Balanced Budget
(B) Surplus Budget
(C) Deficit Budget
(D) All the above
Answer:
(D) All the above

Question 44.
Exchange rate is of the following types :
(A) Fixed exchange rate
(B) Flexible echange rate
(C) (A) and (B) both
(D) None of the above
Answer:
(C) (A) and (B) both

Question 45.
During Bretton Woods System most countries had :
(A) Fixed Exchange Rate
(B) Pegged Exchange rate
(C) (A) and (B) both
(D) None of the above
Answer:
(C) (A) and (B) both

Question 46.
Fixed exchange rate has following merits :
(A) Promotes Capital movements
(B) Prevents capital outflow
(C) Prevents speculation
(D) All the above
Answer:
(D) All the above

Question 47.
Bretton Woods Conference of 1944 established :
(A) International Monetary Fund
(B) World Bank
(C) (A) and (B) both
(D) None of the above
Answer:
(A) International Monetary Fund

Question 48.
Demerits of flexible exchange rate are :
(A) Instability and uncertainty
(B) Encourages speculation
(C) Discourage international trade and investment
(D) All of the above
Answer:
(D) All of the above

Question 49.
Balance of Trade = ?
(A) Export of visible items – Import of visible item
(B) Export if visible and invisible items – Import of visible and invisible items
(C) Import of visible items – Export of visible items
(D) None of these
Answer:
(B) Export if visible and invisible items – Import of visible and invisible items

Question 50.
Components of Balance of Payments is :
(A) Current Account
(B) Capital Account
(C) (A) and (B) both
(D) None of the above
Answer:
(C) (A) and (B) both