CLASS XII - ECONOMICS
MULTIPLE CHOICE QUESTIONS
1. Economics was originally developed as a
science of __________
(a) State craft. (b) business management (c) wealth
of management. (d) resource management.
2.
_________ of resources is necessary for development of economy.
(a) Utilization (b) Growth (c) Wastage (d) Non -utilization.
3. Which
of the following is not example of micro economics studies?
(a) Study of consumer equilibrium (b) Study of price determination of a
commodity
(c) study of an unemployment in an
economy. (d) All of above
4. Which
of the following is not the component of micro economic study ........
(a) Theory of consumer behavior (b) Theory related to equilibrium level of
output.
(c) Theory of producer behavior (d) None
of the above.
5. Which
of the following is not micro economic variables ?
(a) Consumer's demand (b) Aggregate demand (c) Firm's output
(d)
Market price of a commodity.
6. Which
of the following is not macro economic variables : -
(a) Aggregate demand (b) General price
level in the economy (c) Firm's output .
7. A PPC
curve is concave to the point of origin because of ------
(a) Increasing opportunity cost. (b) Law
of demand.
(c) Unit elastic (d) Law of supply.
8. If
there in unemployment in the economy, we would be producing __________the PPC
(a) below
(b) above (c) on (d) None of the
above.
9. If the
PPC is concave, MPC is ............
(a) Increasing (b) Equal (c) Decreasing (d)
None of the above.
10. If
MPC is constant, PPC would be ___
(a)Convex (b) Concave (c) straight line (d) horizontal
line.
11. PPC
is sloping is sloping __________because
more production of one good is associated with less of the others.
(a) Upward
downward (b) Straight (d) Uneven.
12. Factors
which leads to shift of PPC __________
(a) Increase in resources (b) Decrease in
resources
(c)
Change in technology. (d) All of the above.
13.
Rightward shift of PPC indicate _______
(a) Improve in technology (b) Quantum of
resources increase (c) Both A & b (d) None of the above.
14. A
point below PPC indicate _________
(a) Full employment and efficient use of
resources. (b) Under utilization and insufficient of resources (c) Growth of resources (d) None of the above.
15. A
point above PPC indicate -----
(a) Full
employment and efficient use of resources
(b) Growth
of resources (c) Under utilization of resources (d) None of the above.
16. Which
of the following is not the assumption of PPC ___
(a) Increasing MPC,
(b)
Decreasing MPC (c) Constant MPC
(D) All of the above.
17. Which of the following is not the assumption
of PPC ?
(a) Available resources are fully utilize (b)
There is change in the technology (c)Available resources are fully and
efficiently utilized (d) There is no
change in technology.
18. A
point on PPC indicate ----------
(a) Full
employment and efficient use of resources
(b) Under utilization of resources (c) Growth
of resources (d) None of the above.
CONSUMER'S
EQUILIBRIUM
19. Which
statement is false -
(a)
So long as MU positive , TU is increases. (b) TU is zero when MU is zero.
(c) TU starts decreasing when Mu is
negative.
20. The
extent to which a consumers expects a commodity to satisfy his wants for the
same is known as ________ of that commodity for him.
20. Total
utility is maximum when MU is _____
(a)
Equilibrium (b) Minimum (c) Maximum (d) Equal.
21. locus of
different combination of two goods which a consumers can afford by spending his whole income is known as : -
(a) Total
utility (b) Budget (c) Budget line (d) Budget set.
22.Total
utility falls when marginal utility is : -
(a) positive
(b) Negative (c) Equals (d) Zero.
INDIFFERENCE CURVE
23. Which is
not the characteristics of monotonic indifference curve?
(a) IC are negatively sloped. (b) IC
intersect each other.
(c) IC are convex to origin. (d) a
higher IC offered higher level of satisfaction.
24. Shape of
IC is convex due to _____________ MRT.
(a) (a) Increasing (b) Equal (c)
Diminishing (d) Maximum.
25. According
to IC approach, a consumer attains equilibrium at a point where budget line is
___________to indifference curve.
(a)
Tangent (b) Straight (c)
Diminishing (d) Maximum
26. Shape of
IC Curve is ________
(a) Downward sloping and convex to the
origin (b) Upward sloping and convex
to the origin.
(c) Down wards sloping and concave to the
origin (d) Upward sloping and concave
to origin
27. An IC
Curve is downward sloping because if quantity of one commodity is __ the
quantity of the other is to be _______in order to maintain the same satisfaction
level.
(a) Reduce ,increase
(b) Increase
, reduce.
(c) Increase
, increase
(d) Reduce,
Reduce.
29.
Properties of independence are: -
(a)
Negatively sloped (b) Convex to the point of origin (c) touches neither nor Y
axis
(d) All of
the above.
