MCQ Questions Class 12 Determination of Income and Employment With Answers

CBSE Class 12 Determination of Income and Employment Multiple Choice Questions with Answers. MCQ Questions Class 12 Determination of Income and Employment with Answers Is Prepared Based on Latest Exam Pattern. Students can solve NCERT MCQ questions Class 12 Determination of Income and Employment with Answers to know their preparation level.

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MCQ Questions Class 12 Determination of Income and Employment with Answers - Set - 5

Question 1:

Which one is the reason for appearing Deficit Demand condition?
(a) Fall in the money supply in the country
(b) Fall in investment demand as a result of rising in bank rate
(c) Fall in disposable income and consumer demand due to increase in taxes
(d) All the above

Check Answer

Correct Answer – (D)

Question 2:

What are the characteristics of Deficit Demand?
(a) Aggregate Demand falls short of Aggregate Demand required at full employment
(b) Aggregate Demand remains short of Aggregate Supply required of full employment level
(c) Both (a) and (b)
(d) None of above

Check Answer

Correct Answer – (C)

Question 3:

If income equilibrium level in the economy is determined at the level before full employment, it is known as the state of:
(a) Deficit Demand
(b) Surplus Demand
(c) Partial Demand
(d) None of these

Check Answer

Correct Answer – (A)

Question 4:

If MPC = 0.5 and initial investment is 100 Rs crores, the income generation in the economy will be :
(a) 5 crores Rs
(b) 100 crores Rs
(c) 200 crores Rs
(d) 500 crores Rs

Check Answer

Correct Answer – (C)

Question 5:

Which of the following is correct?
(a) MPC and multiplier have a direct relationship
(b) MPS and multiplier have an inverse relationship
(c) Both (a) and (b)
(d) None of the above

Check Answer

Correct Answer – (C)

MCQ Questions Class 12 Determination of Income and Employment With Answers

Question 6:

Deflationary Gap shows the measurement of:
(a) Deficit Demand
(b) Surplus Demand
(c) Full Employment
(d) None of these

Check Answer

Correct Answer – (A)

Question 7:

In Keynesian economics, the state of Deficit Demand is called as:
(a) Full Employment Equilibrium
(b) Under Full Employment Equilibrium
(c) Both (a) and (b)
(d) None of the abov

Check Answer

Correct Answer – (B)

Question 8:

‘The theory of employment multiplier was propounded by:
(a) Keynes
(b) Kahn
(c) Hansen
(d) Marshall

Check Answer

Correct Answer – (B)

Question 9:

If MPC = 0.5, then multiplier (K) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0

Check Answer

Correct Answer – (C)

Question 10:

Which factor affects Keynesian Multiplier?
(a) Marginal Propensity to Save
(b) Marginal Propensity to Consume
(c) Both (a) and (b)
(d) None of the above

Check Answer