Bihar Board 12th Economics VVI Objective Questions Model Set 1 in English

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics VVI Objective Questions Model Set 1 in English

Question 1.
Who was the father of Economics ?
(A) J.B.Say
(B) Malthus
(C) Adam Smith
(D) Joan Robinson
Answer:
(C) Adam Smith

Question 2.
Production Possibility Curve is :
(A) Cancave to the axis
(B) Convex to the axis
(C) Parallel to the axis
(D) Vertical to the axis
Answer:
(A) Cancave to the axis

Question 3.
According to Marshall, utility of a commodity.
(A) can be measured by money
(B) cannot be measured by money
(C) can be measured in cardinal numbers
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 4.
An active factor of production is :
(A) Capital
(B) Labour
(C) Land
(D) None of these
Answer:
(B) Labour

Question 5.
In which market is average revenue equal to marginal revenue ?
(A) Perfect Competition
(B) Oligopoly
(C) Imperfect competition
(D) Monopoly
Answer:
(A) Perfect Competition

Question 6.
Which service is included in Tertiary Sesator ?
(A) Mining
(B) Construction
(C) Communication
(D) Animal Husbandary
Answer:
(C) Communication

Question 7.
By supply of money we mean :
(A) Money deposited in bank
(B) Money available with the public
(C) Deposits with Post Office savings bank
(D) All of these
Answer:
(D) All of these

Question 8.
Supply creates its own demand ? Who gave this law ?
(A) J.B.Say
(B) J.S.Mill
(C) Keynes
(D) Ricardo
Answer:
(A)J.B.Say

Question 9.
Which is included in indirect tax ?
(A) Income Tax
(B) Wealth Tax
(C) Excise Duty
(D) Gift Tax
Answer:
(C) Excise Duty

Question 10.
Balance of Trade means:
(A) Capital transaction
(B) Import & Export of goods
(C) Total debit and credit
(D) All of above
Answer:
(B) Import & Export of goods

Question 11.
Which of the following statement is true ?
(A) Human wants are infinite
(B) Resources are limited
(C) Scarcity problem gives birth to choice
(D) All of these
Answer:
(D) All of these

Question 12.
Micro economics includes :
(A) Individual unit
(B) Small units
(C) Individual Price determination
(D) All the above
Answer:
(D) All the above

Question 13.
In which economy decisions are taken on the basis of price mechanism ?
(A) Socialist
(B) Capitalist
(C) Mixed
(D) All of these
Answer:
(B) Capitalist

Question 14.
According to the law of equimarginal utility, the condition for consumer’s equilibrium is :
(A) \(\frac{\mathrm{MU}_{\mathrm{A}}}{\mathrm{P}_{\mathrm{A}}}=\frac{\mathrm{MU}_{\mathrm{B}}}{\mathrm{P}_{\mathrm{B}}}\)
(B) \(\frac{\mathrm{MU}_{\mathrm{A}}}{\mathrm{MU}_{\mathrm{B}}}=\frac{\mathrm{P}_{\mathrm{A}}}{\mathrm{P}_{\mathrm{B}}}\)
(C) Both (A) & (B)
(D) undefined
Answer:
(C) Both (A) & (B)

Question 15.
Which is a reason of change in demand ?
(A) Change of consumer’s income
(B) Change in price of related goods
(C) Population increases
(D) All of these
Answer:
(D) All of these

Question 16.
With an increase in income consumer decreases the consumption of which goods ?
(A) Inferior goods
(B) Normal goods
(C) Giffin goods
(D) Both (A) and (B)
Answer:
(C) Giffin goods

Question 17.
Which of the following factors affects elasticity of demand ?
(A) Nature of goods
(B) Price level
(C) Income level
(D) All of these
Answer:
(D) All of these

Question 18.
If all the factors of production are increased by some proportion and as a result output increases by a greater proportion then it is called :
(A) Constant returns to scale
(B) Decreasing returns
(C) Increasing returns to scale
(D) None of these
Answer:
(C) Increasing returns to scale

Question 19.
The shape of average cost curve is :
(A) U-Shaped
(B) Rectangular hyperbola shaped
(C) Line paralledl to v-axis
(D) None of these
Answer:
(A) U-Shaped

Question 20.
The reason of decrease in supply is :
(A) Increase in production cost
(B) Increase in price of substitutes
(C) Fall in number of firms in the industry
(D) All the above
Answer:
(D) All the above

Question 21.
It which market is average revenue equal to marginal revenue ?
(A) Perfect competition
(B) Oligopoly
(C) Imperfect competition
(D) Monopoly
Answer:
(A) Perfect competition

Question 22.
Market Price is found in :
(A) Short period market
(B) Long period market
(C) Very short period market
(D) None of these
Answer:
(A) Short period market

Question 23.
Which is not a condition for equilibrium of a monopoly firm?
(A) AR = MC
(B) MR = MC
(C) Marginal cost curve should cut the marginal revenue curve from below
(D) Both (B) & (C)
Answer:
(A) AR = MC

Question 24.
Which is the component of factor price determination ?
(A) Rent
(B) Wages
(C) Interest
(D) All of the above
Answer:
(D) All of the above

Question 25.
Rent is = ?
(A) Actual Income – Transfer Earnings
(B) Actual Income + Transfer earnings
(C) Transfer Earnings
(D) None of the above
Answer:
(A) Actual Income – Transfer Earnings

Question 26.
Which one of the following is included in circular flow ?
(A) Real Flow
(B) Money Flow
(C) Both (A) & (B)
(D) None of these
Answer:
(C) Both (A) & (B)

Question 27.
The market value of all final goods and services produced in an economy over a year is called :
(A) Gross National Product
(B) National Income
(C) Gross Domestic Product
(D) Net National Product
Answer:
(C) Gross Domestic Product

Question 28.
Which one is a compenent of profit ?
(A) Dividend
(B) Undistributed profit
(C) Corporate profit tax
(D) All the above
Answer:
(D) All the above

Question 29.
Which method is adopted in measuring National Income ?
(A) Production Method
(B) Income Method
(C) Expenditure method
(D) All the above
Answer:
(D) All the above

Question 30.
Money is a matter which is :
(A) A measure of value
(B) Accepted as a means of exchange
(C) used to store wealth
(D) All the above
Answer:
(D) All the above

Question 31.
Which one is the Bank of the Public ?
(A) Commercial Bank
(B) Central Bank
(C) Both (A) & (B)
(D) None of the above
Answer:
(A) Commercial Bank

Question 32.
The full form of ATM is :
(A) Any time money (B) All time money
(C) Automated Teller Money
(D) Both (A) & (B)
Answer:
(C) Automated Teller Money

Question 33.
Throught with which method can we withdraw money from bank ?
(A) Withdrawal Form
(B) Cheque
(C)ATM
(D) All of these
Answer:
(D) All of these

Question 34.
Who is the custodian of Indian Banking System ?
(A) Reserve Bank of India
(B) State Bank of India
(C) Unit Trust of India
(D) LIC of India
Answer:
(A) Reserve Bank of India

Question 35.
Monetary policy is related with :
(A) Public Expenditure
(B) Taxes
(C) Public Debt
(D) Open market operations
Answer:
(D) Open market operations

Question 36.
Who is the writer of the Book, ‘Trailed Economic Politique ?
(A) Pigou
(B) J. B. Say
(C) Keynes
(D) Ricardo
Answer:
(A) Pigou

Question 37.
On which concept does classical viewpoint depend ?
(A) Say’s law of market
(B) Perfect Flexibility of Wage Rate
(C) Perfect Flexibility of Interest Rate
(D) All of these
Answer:
(D) All of these

Question 38.
Keyness theory is associated with :
(A) Effective demand
(B) Propensity to consume
(C) Propensity to save
(D) All the above
Answer:
(D) All the above

Question 39.
The theory of employment multipler was propounded by:
(A) Keynes
(B) Kahn
(C) Hamen
(D) Marshall
Answer:
(B) Kahn

Question 40.
Which of the following is a reason of appeaming surplus Demand ?
(A) Increase in Public expenditure
(B) Increase in money supply
(C) Fall in taxes
(D) All the above
Answer:
(D) All the above

Question 41.
Which monetary measure is to be adopted in correcting Inflationary gap ?
(A) Increase in Bank rate
(B) Selling of securities in open market
(C) Increase in Cash Reserve Ratio
(D) All the above
Answer:
(D) All the above

Question 42.
In an unbalanced budget:
(A) Income is greater than expenditure
(B) Expenditure is higher relative to income
(C) Deficit is covered by loans or printing of notes
(D) Only (B) and (C)
Answer:
(D) Only (B) and (C)

Question 43.
In Indian one rupee note is issued by :
(A) Reserve Bank of India
(B) Finance Ministry of Government of India
(C) State Bank of India
(D) None of these
Answer:
(B) Finance Ministry of Government of India

Question 44.
Financial Year in India is :
(A) April 1 to March 31
(B) January 1 to December 31
(C) October 1 to September 30
(D) None of these
Answer:
(A) April 1 to March 31

Question 45.
Capital budget consist of:
(A) Revenue Receipts & Revenue Expenditure
(B) Capital Receipts & Capital Expenditure
(C) Direct & Indirect Tax
(D) None of these
Answer:
(B) Capital Receipts & Capital Expenditure

Question 46.
Foreign exchange rate is determined by :
(A) Government
(B) Bargeining
(C) World Bank
(D) Demand & Supply Forces
Answer:
(D) Demand & Supply Forces

Question 47.
The forms of foreign exchange market is/are :
(A) Spot Market
(B) Forward Market
(C) Both (A) & (B)
(D) None of these
Answer:
(C) Both (A) & (B)

Question 48.
Which account is included in the composition of Balance of Payments ?
(A) Current Account
(B) Capital Account
(C) Both (A) & (B)
(D) None of the above
Answer:
(C) Both (A) & (B)

Question 49.
Which one is the visible item of Balance of Payments ?
(A) Machine
(B) Cloth
(C) Cement
(D) All the above
Answer:
(D) All the above

Question 50.
Balance of Trade = ?
(A) Export of Visible Items – Imports of Visible Items
(B) Export of both Visible and Invisible Item – Imports of both visible and Invisible Items
(C) Import of Visibl Items – Export of Visible Items
(D) None of these
Answer:
(A) Export of Visible Items – Imports of Visible Items