Check the beneath MCQ Questions for Class 12 Economics Determination of Income and Employment with Answers. We have given Determination of Income and Employment Class 12 Economics Multiple Choice Questions with Answers to assist understudies with understanding the idea well overall. MCQ Questions for Class 12 Economics with Answers were arranged dependent on the most recent exam pattern and syllabus endorsed by CBSE.
MCQ Questions for class 12 Economics to assist you with overhauling the total Syllabus and score more marks in your assessments. MCQ Questions with Answers for CBSE Class 12 Economics which is laid out by master Economics instructors from the most recent form of CBSE books. We have given Important MCQ Questions for Class 12 Economics to get great imprints in board tests. We should Start Practice of given Multiple Choice Questions for scoring high in the exams.
1. What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic
2. According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these
3. What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these
4. According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these
5. What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite
6. If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(A) 0.67
(B) 0.63
(C) 0.60
(D) 0.58
7. What is a fiscal measure of correcting deficient demand?
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these
8. Which is the measure of correcting excess demand?
(A) Deficit financing
(B) Reduction in taxes
(C) Increase in public expenditure
(D) Increase in public debt
9. Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ______
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6
10. On the basis of government law, the compulsory payment made by the public is known as _________
(A) Expenditure
(B) Investment
(C) Tax
(D) Subsidy
11. Which of the following statements accurately describes the consumption function?
(A) The consumption function is a relation between income, savings, price and consumption
(B) The consumption function is a relation between income and consumption
(C) The consumption function is a relation between price, savings and consumption
(D) The consumption function is a relation between income, price and savings
12. Which of the following statements is an accurate description of propensity to consume?
(A) It is the additional income that gets spent on consumption
(B) It denotes the ratio of the consumption to income
(C) It defines the tendency of a consumer to consume more than usual
(D) It denotes the actual level of income at which is it equal to the consumption expenditure
13. Which of the following statements is the correct description of propensity to save?
(A) It is the additional income that does not get saved
(B) It denotes the ratio of the savings to income
(C) It denotes the actual level of income at which is it equal to the savings
(D) None of the above
14. Which of the following statements is true about the consumption function?
(A) The consumption function is a functional relationship between aggregate demand and aggregate supply
(B) The consumption function is a functional relationship between consumption and national income
(C) The consumption function is a functional relationship between national income and private income
(D) The consumption function is a functional relationship between consumption and aggregate demand
15. Which of the following statements is not true about average demand in a two-sector economy?
(A) The average demand is the total of consumption and savings
(B) The average demand curve commences from some point that is above the origin
(C) The average demand is the total of consumption and investment
(D) The average demand curve has a positive slope
16. Which of the following statements about the consumption curve is correct?
(A) The consumption curve lies above the forty-five degrees line at the break-even point
(B) The consumption curve lies below the forty-five degrees line at the break-even point
(C) The consumption curve intersects the forty-five degrees line at the break-even point
(D) None of the above
17. Which of the following statements is accurate about the average propensity to consume?
(A) The average propensity to consume can never be less than one
(B) The average propensity to consume can never be more than one
(C) The average propensity to consume can never be zero
(D) The average propensity to consume can never be positive
18. Which of the statements is correct about the relationship between the average propensity to save (APS) and average propensity to consume (APC)?
(A) Both APS and APC rise in case of an increase in the national income
(B) Both APS and APC fall in case of an increase in the national income
(C) APC rises, but APS falls in case of an increase in the national income
(D) APS rises, but APC falls in case of an increase in the national income
19. Which of the statements is true about the relationship between planned savings and planned investment?
(A) When planned investment is more than planned savings, the national income may increase
(B) When planned investment is more than planned savings, the national income may decrease
(C) When planned investment is more than planned savings, there is no effect on the national income
(D) None of the above
20. Which of the statements is not true in the case of underemployment equilibrium?
(A) The aggregate supply is equal to the aggregate demand
(B) The resources are fully utilised in an efficient manner
(C) The resources are not fully utilised in an efficient manner
(D) There is an existence of an excessive production capacity in the economy
21. What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic
22. According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these
23. What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these
24. According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these
25. What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite
