Why mcqs of class 12 Economics lesson 1 Basic Concepts of Macroeconomics is important ?
- these mcqs are important because these questions cover a wide topic of the chapter
- mcqs are easy to understand
- mcqs break the topic in some topic so they are easy to learn
- they give a short revision at the time of class 12 Economics exam
How to get pdf of class 12 Economics lesson 1 Basic Concepts of Macroeconomics mcqs
Increasing role of mcqs in board exam
1. Explain the meaning of non-market activities
Economic
Involuntary
Non marketable
Production
Answer - C
Explanation - Those activities not determined by market forces
2. Nominal GNP is same as
Real GNP
GNP less Net factor income from abroad
GNP at constant prices
GNP at current prices
Answer - D
Explanation - Nominal implies inflated entities in economics.
3. Real GNP is same as
GNP at constant prices
GNP at current prices
Nominal GNP
GNP less Net factor income from abroad
Answer - A
4. Real flow is the flow of
Money
Goods and services
Services only
Goods only
Answer - B
Explanation - Real in economics often pertains to goods and services whereas 'nominal' pertains to money.
5. Money flow is the flow of
Services only
Factor payments
Goods only
Goods and services only
Answer - B
Explanation - Money flow refers to payment for factor services.
6. State the statement which is true:
Gross domestic capital formation is always greater than gross fixed capital formation
Bread is always a consumer good
Capital formation is a flow
Nominal GDP can never be less that real GDP
Answer - C
Explanation - Capital formation is a flow because it is computed over a period of time.
7. Which of the following is an example of macroeconomics:
Inflation
Price determination
Consumer’s equilibrium
Producer’s equilibrium
Answer - A
Explanation - Because inflation pertains to the whole economy.
8. How is microeconomics different from macroeconomics?
Microeconomics deals with individual behaviour
Microeconomics deals with economic behaviour
Microeconomics deals with prices only
Microeconomics deals with government’s decisions
Answer - A
Explanation - The word 'micro' refers to small units. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments.
9. Consider the following statements and identify the right ones.
Personal income refers to the income of individuals of a country.
The income at their disposal after paying direct taxes is called disposable income
ii only
I only
None of these
Both
Answer - D
10. Which of the following is added to national income while calculating personal income?
Transfer payments to individuals
Social security contributions
Corporate taxes
Undistributed profits
Answer - A
Explanation - Transfer payments to individuals
11. An example of transfer payments is
Old-age pension
Employers’ contribution to social security
Retirement pension
Free meals in the company canteen
Answer - A
Explanation - Because old-age pension is paid without rendering services.
12. An example of factor payments is
Retirement pension
Old age pension
Employers’ contribution for social security
Employees’ contribution for social security
Answer - C
Explanation - Employers' contribution for social security is considered as wages.
13. Consumption goods are those which are bought to satisfy wants
By investors only
By banks only
By producers only
By consumers
Answer - D
Explanation - Consumers are required to satisfy their wants, unlike producers.
14. An example of consumption goods is
Machine
Fruits
Plant
Coal
Answer - B
Explanation - Because fruits once eaten are over. They don't lead to further production.
15. An example of durable goods is
Fan
Pepsi
Coal
Milk
Answer - A
Explanation - We can use a fan for a very long time period.
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