R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Economics Set-1

What is known as the study of individual units?

1. Macroeconomics
2. Microeconomics
3. Income and Employment Theory
4. Development economics

✅ Correct Answer: 2

What is the main cause of all economic problems?

1. Abundance
2. Convenience
3. Scarcity
4. None of these

✅ Correct Answer: 3

Study of aggregates is known as _________

1. Macroeconomics
2. Microeconomics
3. Price theory
4. Factor price determination

✅ Correct Answer: 1

What is the name of the book written by J.M. Keynes?

1. Wealth of Nation
2. Political economy
3. The General Theory of Employment, Interest and Money
4. None of these

✅ Correct Answer: 3

When was the famous book of Prof. Keynes published?

1. 1930
2. 1931
3. 1936
4. 1940

✅ Correct Answer: 3

When did the great depression occur?

1. 1929-30
2. 1934-35
3. 1938-39
4. 1941-42

✅ Correct Answer: 1

Who is known as the father of modern macroeconomics?

1. Adam Smith
2. J.M.Keynes
3. Samuelson
4. Hicks

✅ Correct Answer: 2

Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?

1. Microeconomics
2. Price theory
3. Factor price determination
4. Macroeconomics

✅ Correct Answer: 4

Why are the intermediate goods not included in the National Income while measuring National Income?

1. To avoid double accounting
2. It decreases income
3. Intermediate goods are not good
4. All of these

✅ Correct Answer: 1

Who had made the first attempt at National Income Accounting?

1. Prof. D.R.Gadgill
2. Simon Kuznets
3. J.M.Keynes
4. Gregory King

✅ Correct Answer: 4

Calculation of National Income at Market Prices is known as _________

1. Money income
2. Real income
3. Non-monetary income
4. None of these

✅ Correct Answer: 1

Accounting of National Income at constant prices is known as ________

1. Money income
2. Real income
3. Current income
4. Domestic income

✅ Correct Answer: 2

Which of the following items are excluded from GNP measurement?

1. Purely financial transactions
2. Transfer of used goods and non-market goods and services
3. Illegal activities and the value of leisure
4. All of these

✅ Correct Answer: 4

The subject of the Study of Macro Economics is:

1. The Principle of National Income
2. The Principle of Consumer
3. The Principle of Producer
4. None of these

✅ Correct Answer: 1

Macro Economics Studies:

1. Employment opportunities in the economy
2. Theory of supply of Commodities
3. Elasticity of demand in Scooter
4. Price of wheat in the market

✅ Correct Answer: 1

General Price Level is studied in:

1. Micro Economics
2. Macro Economics
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 2

Employment Theory is related to :

1. Static Economics
2. Micro Economics
3. Macro Economics
4. None of these

✅ Correct Answer: 3

Increase in Stock of Capital is known as:

1. Capital Loss
2. Capital Profit
3. Capital Formation
4. None of these

✅ Correct Answer: 3

Which of the following is sPktock ?

1. Wealth
2. Saving
3. Export
4. Profit

✅ Correct Answer: 1

Which one of the following is included in circular flow?

1. Real Flow
2. Money Flow
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

Which one of the following is included in ‘Stock’?

1. Quantity of Money
2. Wealth
3. Quantity of wheat stored in a warehouse
4. All the above

✅ Correct Answer: 4

Which one is included inflow ?

1. Consumption
2. Investment
3. Income
4. All of these

✅ Correct Answer: 2

Which of the following is included in real flow?

1. Flow of Goods
2. Flow of Services
3. Both (a) and (b)
4. None of these

✅ Correct Answer: 3

Which services are provided by families to a firm?

1. Land
2. Labour
3. Capital and Enterprises
4. All the above

✅ Correct Answer: 4

Which one is included in the three-sector model?

1. Family
2. Firm
3. Government
4. All of these

✅ Correct Answer: 4

Which one is included in the four-sector model?

1. Family, Firm, Industry
2. Family, Firm, Government
3. Family, Firm, Government, Foreign Sector
4. None of the above

✅ Correct Answer: 3

Which is the equilibrium condition of circular flow in the four sector model?

1. C + I
2. C + I + G
3. C + I + G + (X-M)
4. None of these

✅ Correct Answer: 3

The primary sector includes:

1. Agriculture
2. Retail trading
3. Small Industries
4. All the these

✅ Correct Answer: 4

For a four sector or open economy the condition for equilibrium is:

1. Savings + taxes + Imports = Investment + govt, expenditure + exports
2. Total Leakages = Total Injections
3. Aggregate output = Aggregate Expenditure
4. All of these

✅ Correct Answer: 4

Which service is included in Tertiary Sector?

1. Mining
2. Construction
3. Communication
4. Animal Husbandry

✅ Correct Answer: 3

Which of the following is not flow?

1. Capital
2. Income
3. Investment
4. Depreciation

✅ Correct Answer: 1

The market price of all final goods of a country in a year is known as:

1. GDPMP
2. GDPFC
3. NNPFC
4. None of these

✅ Correct Answer: 1

Which one is true?

1. GNP = GDP + Depreciation
2. NNP = GNP + Depreciation
3. NNP = GNP – Depreciation
4. GNP = NNP – Depreciation

✅ Correct Answer: 3

NDPFC = ?

1. NDPMP – Indirect Tax
2. GNPMP – Indirect Tax + Subsidy
3. NDPMP – Subsidy
4. NDPMF – Depreciation

✅ Correct Answer: 2

Net National Income at Factor Cost is called?

1. National Income
2. Gross Investment
3. Domestic Income
4. None of these

✅ Correct Answer: 1