Circular Flow of Income Class 12 MCQ with Answers

Circular Flow of Income Class 12 MCQ with Answers includes Multiple choice questions, Fill in the blanks, True or False, Short answers type questions. Answers to Circular Flow of Income Class 12 CBSE MCQs are available at the end of the last question.

Category CBSE Economics Class 12 MCQs
Subject Economics
Chapter Circular Flow of Income Class 12 MCQs

Circular Flow of Income Class 12 MCQs (Multiple Choice Questions)




1. Which of the following, is not a phase of Circular Flow of income?
(a) Production Phase
(b) Income phase
(c) Expenditure phase
(d) Growth phase

Answer

Answer: (d) Growth phase


 

2. In closed economy, which of the following Sectors is not included?
(a) Household
(b) Local Firms
(c) Local Government
(d) Rest of the world

Answer

Answer: (d) Rest of the world


 

3. Which of the following is not a Flow Concept?
(a) Capital
(b) Capital Formation
(c) Income
(d) Depreciation

Answer

Answer: (a) Capital


 

4. “Real flow” refers to the flow of : –
(a) Goods and services across different sector of the economy
(b) Emotions
(c) Factor services from household sector to the producer sector
(d) Both A and C

Answer

Answer: (d) Both A and C





5. Which of the following is a “Stock Concept” ?
(a) Population
(b) Wealth
(c) Capital
(d) All of the above

Answer

Answer: (d) All of the above


 

6. Flow of goods and services in Barter economy is called
(a) Water flow
(b) Real flow
(c) Money flow
(d) All of the above

Answer

Answer: (b) Real flow


 

7. Real flow is also called
(a) Invisible flow
(b) Money flow
(c) Physical flow
(d) Both (a) and (c)

Answer

Answer: (c) Physical flow


 

8. Two sectoral economy consists of : –
(a) Household and foreign sector
(b) Firms and foreign sector
(c) Households and firms
(d) Government and firms

Answer

Answer: (c) Households and firms


 

Circular Flow of Income Class 12 MCQ with Answers

9. Which of the following is a factor income?
(a) Rent
(b) Wages
(c) Profit
(d) All of the above

Answer

Answer: (d) All of the above


 

10. Money flow depicts the way —- circulates in an economy : –
(a) Money
(b) Goods
(c) Services
(d) All of the above

 

Answer

Answer: (a) Money





11. Which of the following is also called nominal flow?
(a) Real flow
(b) Money flow
(c) Physical flow
(d) All of the above

Answer

Answer: (b) Money flow


 

12. Which of the following is a flow?
(a) Aggregate Supply
(b) National Income
(c) Investment
(d) All of the above

Answer

Answer: (d) All of the above


 

13. Saving is an example of
(a) Stock
(b) Flow
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Flow


 

14. Flow variables are those which
(a) Can be measured at a point of time
(b) Can be measured over a period of time
(c) Cannot be measured
(d) None of the above

Answer

Answer: (b) Can be measured over a period of time


 

15. Capital formation is classified as ______.
(a) Stock
(b) Flow
(c) Both (a) and (b)
(d) None of the above

Answer

Answer: (b) Flow





16. Capital is classified as _____.
(a) Stock
(b) Flow
(c) Money Flow
(d) None of the above

Answer

Answer: (a) Stock


 

17. Real flow is also called ______ flow.
(a) Physical
(b) Flow
(c) Nominal
(d) None of the above

Answer

Answer: (a) Physical


 

18. _____ is measured over a period of time.
(a) Stock
(b) Flow
(c) Physical
(d) None of the above

Answer

Answer: (b) Flow


 

Circular Flow of Income Class 12 MCQ with Answers

19. Wealth is a ______ concept.
(a) Real
(b) Stock
(c) Flow
(d) None of the above

Answer

Answer: (b) Stock


 

20. Two sectoral economy consists of _____ and _____.
(a) Firms, Government
(b) Firms, Households
(c) Foreign Sector , Government
(d) None of the above

Answer

Answer: (b) Firms, Households





21. Income is a _______ concept.
(a) Real
(b) Stock
(c) Flow
(d) Physical

Answer

Answer: (c) Flow


 

22. Production is a _______ concept.
(a) Stock
(b) Flow
(c) Real Flow
(d) None of the above

Answer

Answer: (b) Flow


 

23. Population is a ______ concept.
(a) Stock
(b) Flow
(c) Both a and b
(d) None of the above

Answer

Answer: (a) Stock


 

24. Bank deposits are _____ variable.
(a) Stock
(b) Flow
(c) Physical flow
(d) None of the above

Answer

Answer: (a) Stock


 

Circular Flow of Income Class 12 MCQ with Answers

25. Capital is a stock concept.
(a) True
(b) False
(c) Can’t say
(d) None of the above

Answer

Answer: (a) True





26. Circular flow of income has four phases.
(a) True
(b) False
(c) Can’t say
(d) None of the above

Answer

Answer: (b) False


 

27. Real flow includes flow of money.
(a) True
(b) False
(c) Can’t say
(d) None of the above

Answer

Answer: (b) False


 

28. Capital formation is a flow variable.
(a) True
(b) False
(c) Can’t say
(d) None of the above

Answer

Answer: (a) True


 

29. Assertion: National wealth is a stock concept.
Reason: Stock variable is measured at a particular point of time.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.

Answer

Answer: (a) Both (A) and (R) are correct and (R) is the correct reason of (A).





30. Assertion: Real flow measures flow of factor service.
Reason: Factor services are provided by the factors of production.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.

Answer

Answer: (b) Both (A) and (R) are correct but (R) is not the correct reason of (A).


 

CBSE Economics Class 12 MCQ with Answers – Term 2

Part A: Introductory Macroeconomics




Part B: Indian Economic Development

Circular Flow of Income Class 12 Questions – Video Explanation

What are the Different phases of Circular flow of Income?

Distinguish between Stock and Flow?

What is meant by circular flow of income? Distinguish between Real flow and Money flow.

Explain Circular flow of income in two sector economy.

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