Multiple choice questions for class 12 -2014-15

CLASS XII - ECONOMICS MULTIPLE CHOICE QUESTIONS

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.