Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 1.
On which base structure of economic problems has been installed ?
(A) Unlimited Wants
(B) Limited Resources
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 2.
‘Micros’, which means ‘Small’ belongs to :
(A) Arabian word
(B) Greek word
(C) German word
(D) English word
Answer:
(B) Greek word

Question 3.
Which of the following is the salient feature of factors (or resources) ?
(A) These are limited as compared to wants
(B) These have alternative uses
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Question 4.
Which is a central problem of an economy ?
(A) Allocation of Resources
(B) Optimum Utilisation of Resources
(C) Economic Development
(D) All of these
Answer:
(D) All of these

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 5.
Which of the following is a type of economic activities ?
(A) Production
(B) Consumption
(C) Exchange and Investment
(D) All of these
Answer:
(D) All of these

Question 6.
To which factor, economic problem is basically related to:
(A) Choice
(B) Consumer’s Selection
(C) Firm Selection
(D) None of these
Answer:
(A) Choice

Question 7.
Which of the following statement is true ?
(A) Utility means want-satisfying power
(B) Utility is a function of intensity of desire
(C) Desire of consumption gives birth to utility
(D) All of these
Answer:
(D) All of these

Question 8.
For the maximum satisfaction of consumer :
(A) Marginal utility of a good should be equal to its price
(B) Marginal utility of a good should be greater than its price
(C) There is no relation between marginal utility and price
(D) None of these
Answer:
(A) Marginal utility of a good should be equal to its price

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 9.
For a change in which of the following, there is no change in demand ?
(A) Change in price
(B) Change in income
(C) Change in taste and fashion
(D) None of these
Answer:
(D) None of these

Question 10.
The slope of the demand Curve of a normal goods is :
(A) Negative
(B) Positive
(C)Zero
(D) Undefined
Answer:
(A) Negative

Question 11.
Which of the following is a formula for measuring the elasticity of demand ?
im 1
Answer:
(A)

Question 12.
For Giffin goods, price elasticity of demand is :
(A) Negative
(B) Positive
(C) Zero
(D) None of these
Answer:
(B) Positive

Question 13.
At which time all the factors of production may be changed ?
(A) Short run
(B) Long run
(C) Very Long run
(D) All the three
Answer:
(B) Long run

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 14.
Production function is expressed as :
(A) Qx = Px
(B) Qx = f(A, B, C, D)
(C) Qx = Dx
(D) None of these
Answer:
(B) Qx = f(A, B, C, D)

Question 15.
Which of the following is a saruce of production ?
(A) Land
(B) Labour
(C) Capital
(D) All of these
Answer:
(D) All of these

Question 16.
The alternative name of opportunity cost is :
(A) Economic Cost
(B) Equilibrium Price
(C) Marginal Cost
(D) Average Cost
Answer:
(A) Economic Cost

Question 17.
Average variable costs can be defind as :
(A)TVC x Q
(B)TVC + Q
(C)TVC – Q
(D)TVC ÷ Q
Answer:
(D)TVC ÷ Q

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 18.
When supply increases more with a result of small increase in price, the nature of supply will be:
(A) Elastic
(B) Inelastic
(C) Perfectly Elastic
(D) Perfectly Inelastic
Answer:
(A) Elastic

Question 19.
Which one is a feature of monopolistic competition ?
(A) Differentiated Product
(B) Selling Cost
(C) Imperfect Knowledge of the Market
(D) All the above
Answer:
(D) All the above

Question 20.
What does a monopolist market show ?
(A) Production process
(B) Distribution system
(C) Nature of market
(D) None of these
Answer:
(C) Nature of market

Question 21.
Price discrimination is found in which market ?
(A) Pure Competition
(B) Perfect Competition
(C) Monopoly
(D) Monopolistic Conpetition
Answer:
(C) Monopoly

Question 22
The price of a good is determined by :
(A) Demand
(B) Supply
(C) Both demand and supply
(D) Government
Answer:
(C) Both demand and supply

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 23.
In very short period, supply will be :
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Elastic
(D) None of these
Answer:
(B) Perfectly inelastic

Question 24.
In perfect competition, these is………………profit.
(A) Normal
(B) Maximum
(C) Zero
(D) None of these
Answer:
(A) Normal

Question 25.
Who gave the concept of ‘Time Element’ in price determination process ?
(A) Ricardo
(B) Walras
(C) Marshall
(D) J.K. Mehta
Answer:
(C) Marshall

Question 26.
General Price Level is studied in :
(A) Micro Economics
(B) Macro Economics
(C) Both (A) and (B)
(D) None of these
Answer:
(B) Macro Economics

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 27.
Employment Theory is related to :
(A) Static Economics
(B) Micro Economics
(C) Macro Economics
(D) None of these
Answer:
(C) Macro Economics

Question 28.
Which is the equilirbium condition of circular flow in four sector model ?
(A) C + I
(B) C + I + G
(C) C + I + G + (X-M)
(D) None of these
Answer:
(C) C + I + G + (X-M)

Question 29.
NNPMP =?
(A) GNMP – Depreciation
(B) GNPMP + Depreciation
(C) GNPMP + IndirectTax
(D) None of the above
Answer:
(A) GNMP – Depreciation

Question 30.
What is consumption of fixed capital called ?
(A) Capital formation
(B) Depreciation
(C) Investment
(D) All of these
Answer:
(B) Depreciation

Question 31.
Commercial banks:
(A) Issue currency notes
(B) Accepts deposits from customers
(C) Provide loans to customers
(D) Only (B) and (C)
Answer:
(D) Only (B) and (C)

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 32.
Central bank controls credit through :
(A) Bank rate
(B) OPen market operations
(C) CRR
(D) All the above
Answer:
(A) Bank rate

Question 33.
Which of the following is a qualitative method of credit control ?
(A) Variation in cash reserve ratio of banks
(B) Restriction on consumer credit
(C) Open market operations
(D) Variation in bank rate
Answer:
(B) Restriction on consumer credit

Question 34.
The major objectives of monetary policy is/are :
(A) Increase in output and employment
(B) Stability in foreign exchange rate
(C) Price stability
(D) All of these
Answer:
(B) Stability in foreign exchange rate

Question 35.
Who regulates money supply ?
(A) Govt, of India
(B) Reserve Bank of India
(C) Commercial Bank
(D) Planning Commission
Answer:
(D) Planning Commission

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 36.
Which one is true ?
(A) MPC + MPS = 0
(B) MPC + MPS < 1 (C) MPC + MPS = 1 (D) MPC + MPS > 1
Answer:
(C) MPC + MPS = 1

Question 37.
The main component of aggregate demand is :
(A) Individual consumption
(B) Public consumption
(C) Investment
(D) All the above
Answer:
(D) All the above

Question 38.
“Wage cut maintains full employment in the economy.” Who put forward this view ?
(A) Pigou
(B) Keynes
(C) Marshall
(D) None of the above
Answer:
(A) Pigou

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 39.
Increase in aggregate demand of equilibrium level of income and employment causes increase in :
(A) Employment
(B) Production
(C) Income
(D) All of these
Answer:
(D) All of these

Question 40.
In MPC = 0.5, then multiplier (K) will be:
(A) 1/2
(B) 1
(C) 2
(D) 0
Answer:
(C) 2

Question 41.
Which objectives government attempts to obtain by Budget ?
(A) To Promote Economic Development
(B) Balanced Regional Development
(C) Redistribution of Income and Wealth
(D) All the above
Answer:
(D) All the above

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

Question 43.
Which is included in Indirect Tax ?
(A) Excise Duty
(B) Sales Tax
(C) Both (A) and (B)
(D) Wealth Tax
Answer:
(C) Both (A) and (B)

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 44.
Direct tax is :
(A) Income Tax
(B) Gift Tax
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)

Question 45.
Which type of expenditure is made in bridge construction ?
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Both (A) and (B)
(D) None of the above
Answer:
(A) Capital Expenditure

Question 46.
Which one is a kind of fixed exchange rate ?
(A) Gold Standard System of Exchange Rate
(B) Bretton Woods System of Exchange Rate
(C) Both (A) and (B)
(D) None of the above
Answer:
(C) Both (A) and (B)

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 47.
Which one is a merit of flexible exchange rate ?
(A) Simple System
(B) Continuous Adjustments
(C) Improves Balance of Payments
(D) All the above
Answer:
(D) All the above

Question 48.
Which one is a source of the demand of foreign exchange ?
(A) Imports of Goods and Services from Abroad
(B) Investment in Foreign Nations
(C) Gift Scheme to Foreign Nations
(D) All the above
Answer:
(D) All the above

Question 49.
The component(s) of Balance of Payment is/are :
(A) Current Account
(B) Capital Account
(C) Both (A) and (B)
(D) None of these
Answer:
(C) Both (A) and (B)

Bihar Board 12th Economics VVI Objective Questions Model Set 4 in English

Question 50.
The reason of imbalance in balance of payment is :
(A) Natural Reasons
(B) Economic Reasons
(C) Political Reasons
(D) All of these
Answer:
(D) All of these