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 - 1
Question 1:
On the basis of government law, the compulsory payment made by the public is known as _________
(A) Expenditure
(B) Investment
(C) Tax
(D) Subsidy
Correct Answer – (C)
Question 2:
Which is the measure of correcting excess demand?
(A) Deficit financing
(B) Reduction in taxes
(C) Increase in public expenditure
(D) Increase in public debt
Correct Answer – (D)
Question 3:
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(A) 0.67
(B) 0.63
(C) 0.60
(D) 0.58
Correct Answer – (B)
Question 4:
According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these
Correct Answer – (A)
Question 5:
According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these
Correct Answer – (A)
MCQ Questions Class 12 Determination of Income and Employment With Answers
Question 6:
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case would be ________________.
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6
Correct Answer – (D)
Question 7:
What is a fiscal measure of correcting deficient demand?
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these
Correct Answer – (D)
Question 8:
What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite
Correct Answer – (A)
Question 9:
What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these
Correct Answer – (C)
Question 10:
What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic
