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 - 2
Question 1:
Which is the determining factor for investment?
(a) Marginal Efficiency of Capital
(b) Interest Rate
(c) Both (a) and (b)
(d) None of these
Correct Answer – (C)
Question 2:
Which of the following is true for the Classical Theory of Employment?
(a) State of full employment in the economy
(b) No possibility of over-or under-production in the economy
(c) Both (a) and (b)
(d) None of the above
Correct Answer – (C)
Question 3:
Supply creates its own Demand. Who gave this law?
(a) J.B.Say
(b) J.S.Mill
(c) Keynes
(d) Ricardo
Correct Answer – (A)
Question 4:
Aggregate demand can be increased by:
(A) increasing bank rate
(B) selling govt, securities by RBI
(C) increasing cash reserve ratio
(D) none of these
Correct Answer – (D)
Question 5:
The value of multiplier is:
(A) 1/MPC
(B) 1/MPS
(C) 1/(1−MPS)
(D) 1/(MPC−1)
Correct Answer – (B)
MCQ Questions Class 12 Determination of Income and Employment With Answers
Question 6:
On which factor Keynesian Theory of Employment depends?
(a) Effective Demand
(b) Supply
(c) Production Efficiency
(d) None of the above
Correct Answer – (A)
Question 7:
Who is the author of the book ‘General Theory of Employment, Interest, and Money’?
(a) A.C. Pigou
(b) Malthus
(c) J.M. Keynes
(d) Marshall
Correct Answer – (C)
Question 8:
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will be
(A) greater than 2
(B) less than 2
(C) equal to 2
(D) equal to 5
Correct Answer – (A)
Question 9:
If MPC = 1, the value of the multiplier is:
(A) 0
(B) 1
(C) Between 0 and 1
(D) Infinity
Correct Answer – (D)
Question 10:
Which among is the direct tax?
(A) Income tax
(B) Gift and Corporation tax
(C) Wealth tax
(D) All of these
