Some Basic Concepts of Macroeconomics Class 12 MCQ includes – Multiple choice Questions, True or False, Fill in the Blanks, Short answers type questions. Answers to Basic Concepts of Macroeconomics Class 12 MCQ are available at the end of the last question.
| Category | CBSE Economics Class 12 MCQs |
| Subject | Economics |
| Chapter | Some Basic Concepts of Macroeconomics Class 12 MCQ |
Some Basic Concepts of Macroeconomics Class 12 MCQs (Multiple Choice Questions)
1.Which of the following is a part of domestic territory of India?
(a) Indian embassy in USA
(b) Russian embassy in Australia
(c) Chinese embassy in India
(d) None of the above
Answer
Answer: (a) Indian embassy in USA
2. Which of the following are not covered under domestic territory of India?
(a) Google office in India
(b) Indian embassy in Australia
(c) State bank of India in USA
(d) Air India on Russia’s Airport
Answer
Answer: (c) State bank of India in USA
3. Which of them are excluded from domestic territory?
(a) Embassies of foreign country
(b) Military consultants of foreign country
(c) International organizations (UNO, WHO)
(d) All of the above
Answer
Answer: (d) All of the above
4. Domestic territory is also called:
(a) Economic territory
(b) Political territory
(c) Foreign territory
(d) None of the above
Answer
Answer: (a) Economic territory
5. Which of the following is a part of normal resident of India?
(a) Indian official working in Indian embassy in USA
(b) Australian tourist staying for 5 days in India
(c) Indians staying for medical treatment in UK
(d) None of the above
Answer
Answer: (a) Indian official working in Indian embassy in USA
6.Which of the following is not a normal resident of India?
(a) Indians staying in UK for watching cricket match
(b) Japanese staying in USA for visiting relatives
(c) Russian official working in Indian embassy in Russia
(d) All of the above
Answer
Answer: (d) All of the above
7.Centre of economic interest includes:
(a) Resident lives or works in domestic territory
(b) Resident operates economic activities at that place
(c) Both (a) and (b)
(d) None of the above
Answer
Answer: (c) Both (a) and (b)
8. A Chinese living in India for more than a year for the purpose of his economic activity is:
(a) Citizen of India
(b) Resident of India
(c) Both (a)) and (b)
(d) None of them
Answer
Answer: (b) Resident of India
9. Which of the following is a factor income?
(a) Rent paid for land
(b) Wages paid to labor
(c) Interest paid on Capital
(d) All of the above
Answer
Answer: (d) All of the above
10. Which of the following is not a factor income?
(a) Rent
(b) Land
(c) Scholarship
(d) Both (b) and (c)
Answer
Answer: (d) Both (b) and (c)
Some Basic Concepts of Macroeconomics Class 12 MCQ
11. Which type of concept is factor income?
(a) Earning concept
(b) Receipt concept
(c) Transfer concept
(d) None of the above
Answer
Answer: (a) Earning concept
12. Which of the following is included in National income?
(a) Transfer income
(b) Intermediate consumption
(c) Factor incomes
(d) All of the above
Answer
Answer: (c) Factor incomes
13. Which of the following is a transfer income?
(a) Rent
(b) Wages
(c) Land
(d) Scholarships
Answer
Answer: (d) Scholarships
14. Which of the following is not a transfer income?
(a) Scholarships
(b) Old age pensions
(c) Wages and salaries
(d) Pocket money paid to children
Answer
Answer: (c) Wages and salaries
15. Which type of concept is transfer income?
(a) Earning concept
(b) Receipt concept
(c) Payment concept
(d) None of the above
Answer
Answer: (b) Receipt concept
16. Which of the following is not included in National Income?
(a) Transfer income
(b) Factor income
(c) Goods and services produced
(d) None of the above
Answer
Answer: (a) Transfer income
17. Final goods are neither:
(a) Resold
(b) Used for further production
(c) Inside production boundary
(d) All of the above
Answer
Answer: (d) All of the above
18. Finals goods have:
(a) Direct demand
(b) Derived demand
(c) Indirect demand
(d) None of the above
Answer
Answer: (a) Direct demand
19. Which of the following is not a final good?
(a) Milk purchased by household
(b) Machinery purchased by firms
(c) Milk purchased by sweet shop owner
(d) All of the above
Answer
Answer: (c) Milk purchased by sweet shop owner
20. Which of the following is a final good?
(a) Chalk purchased by institution
(b) Milk purchased by diary shop owner
(c) Cold drinks purchased by local shop owner for resale
(d) Ice cream purchased by shop owner for self consumption
Answer
Answer: (d) Ice cream purchased by shop owner for self consumption
Some Basic Concepts of Macroeconomics Class 12 MCQ
21. Intermediate goods are:
(a) Resold
(b) Used for further production
(c) Inside production boundary
(d) All of the above
Answer
Answer: (d) All of the above
22. Intermediate goods have:
(a) Direct demand
(b) Derived demand
(c) Indirect demand
(d) None of the above
Answer
Answer: (b) Derived demand
23. Which of the following is an intermediate good?
(a) Milk purchased by sweet shop
(b) Bread purchased by bakery shop
(c) Cold drink purchased by retail shops
(d) All of the above
Answer
Answer: (d) All of the above
24. Value of intermediate good is:
(a) Taken as the final value
(b) Included in final good
(c) Not merged with final goods’ value
(d) None of the above
Answer
Answer: (b) Included in final good
25. Which of the following is not consumption good?
(a) Durable goods
(b) Capital goods
(c) Non durable goods
(d) Services
Answer
Answer: (b) Capital goods
26. Consumption goods satisfy human wants:
(a) Directly
(b) Indirectly
(c) Partially
(d) None of the above
Answer
Answer: (a) Directly
27. Which of the following are consumption goods?
(a) Pens used by students
(b) Notebooks used by students
(c) Furniture used by household
(d) All the above
Answer
Answer: (d) All the above
28. Consumption goods are always:
(a) Final goods
(b) Intermediate goods
(c) Capital goods
(d) None of the above
Answer
Answer: (a) Final goods
29. Capital goods have:
(a) Direct demand
(b) Derived demand
(c) Indirect demand
(d) None of the above
Answer
Answer: (b) Derived demand
30. Which of the following is a capital good?
(a) Pens used by teachers
(b) Notebooks used by students
(c) Machinery used by firms
(d) All of the above
Answer
Answer: (c) Machinery used by firms
Some Basic Concepts of Macroeconomics Class 12 MCQ
31. Which of the following is not a feature of capital goods?
(a) Used for production purpose
(b) Inside production boundary
(c) Need repair or replacement
(d) Have derived demand
Answer
Answer: (b) Inside production boundary
32. All capital goods are always:
(a) Producer goods
(b) Final goods
(c) Intermediate good
(d) None of the above
Answer
Answer: (a) Producer goods
33. What is the difference between gross and net called?
(a) Depreciation
(b) Net indirect tax
(c) Factor income from abroad
(d) All of the above
Answer
Answer: (a) Depreciation
34. Which of the following is correct?
(a) GROSS INVESTMENT= Net Investment- depreciation
(b) GROSS INVESTMENT= Net Investment+ depreciation
(c) NET INVESTMENT= Gross Investment+ depreciation
(d) TOTAL INVESTMENT= Net Investment- Gross Investment
Answer
Answer: (b) GROSS INVESTMENT= Net Investment+ depreciation
35. Depreciation is also called:
(a) Capital consumption allowance
(b) Cost of fixed capital consumed
(c) Current replacement cost
(d) All of the above
Answer
Answer: (d) All of the above
36. Depreciation is caused due to:
(a) Normal wear and tear of asset
(b) Passage of time
(c) Obsolescence
(d) All of the above
Answer
Answer: (d) All of the above
37. Net indirect tax is the difference between :
(a) Indirect tax and subsidies
(b) Direct tax and indirect tax
(c) Direct tax and subsidies
(d) Subsidies and indirect tax
Answer
Answer: (a) Indirect tax and subsidies
38. Subsidies are also called:
(a) Economic assistance
(b) Financial assistance
(c) Both (a) and (b)
(d) None of the above
Answer
Answer: (c) Both (a) and (b)
39. Net indirect tax gives the difference between:
(a) Factor cost and market price
(b) Gross and net
(c) National and domestic
(d) None of the above
Answer
Answer: (a) Factor cost and market price
40. Which of the following is correct?
(a) Market Price= Factor Cost+ NIT
(b) Market Price= Factor Cost- NIT
(c) Factor Cost= Market Price+ NIT
(d) None of the above
Answer
Answer: (a) Market Price= Factor Cost+ NIT
Some Basic Concepts of Macroeconomics Class 12 MCQ
41. NFIA gives the difference between:
(a) National and domestic
(b) Gross and net
(c) Factor cost and market price
(d) None of the above
Answer
Answer: (a) National and domestic
42. Components of NFIA are:
(a) Net retained earnings
(b) Net income from property
(c) Net compensation of employees
(d) All of the above
Answer
Answer: (d) All of the above
43. NFIA can be:
(a) Negative
(b) Positive
(c) Zero
(d) All of the above
Answer
Answer: (d) All of the above
44. Which of the following is correct?
(a) National income= Domestic income+ NFIA
(b) Domestic Income= National income+ NFIA
(c) Domestic Income= National income+ Gross investment
(d) None of the above
Answer
Answer: (a) National income= Domestic income+ NFIA
45. NFIA will always be zero in case of:
(a) Open economy
(b) Closed economy
(c) Government economy
(d) None of the above
Answer
Answer: (b) Closed economy
46. Indian embassy in Japan is an example of ______.
(a) Economic sector
(b) Domestic territory
(c) International territory
(d) None of the above
Answer
Answer: (b) Domestic territory
47. Domestic territory is also known as ______ .
(a) Economic territory
(b) Foreign territory
(c) International territory
(d) None of the above
Answer
Answer: (a) Economic territory
48. Normal resident includes _____ and _____ .
(a) Individuals, Institutions
(b) Business firms, Foreign sector
(c) International territory
(d) None of the above
Answer
Answer: (a) Individuals, Institutions
49. Indian working in Russian embassy is an example of _____.
(a) Foreign Resident
(b) Normal Resident
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Normal Resident
50. _____ Incomes are included in National income.
(a) Transfer income
(b) Factor income
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Factor income
Some Basic Concepts of Macroeconomics Class 12 MCQ
51. Wages and salaries are _____ incomes.
(a) Transfer income
(b) Factor income
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Factor income
52. Scholarship is an example of _____ income.
(a) Transfer income
(b) Factor income
(c) Both a and b
(d) None of the above
Answer
Answer: (a) Transfer income
53. Transfer income is a ______ concept.
(a) Bilateral
(b) Unilateral
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Unilateral
54. Final goods are used for _____ and _____ .
(a) Consumption , Investment
(b) Investment , Further Production
(c) Consumption, Resale
(d) None of the above
Answer
Answer: (a) Consumption , Investment
55. Intermediate goods have _____ demand.
(a) Isolated
(b) Derived
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Derived
56. _____ Goods can be used for resale.
(a) Final goods
(b) Intermediate goods
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Intermediate goods
57. _____ Goods are inside the production boundary.
(a) Final goods
(b) Intermediate goods
(c) Both a and b
(d) None of the above
Answer
Answer: (b) Intermediate goods
58. Consumption goods satisfy consumer’s wants ______.
(a) Directly
(b) Indirectly
(c) Later
(d) None of the above
Answer
Answer: (a) Directly
59. Furniture purchased by household is an example of _____ goods.
(a) Final goods
(b) Intermediate goods
(c) Both a and b
(d) None of the above
Answer
Answer: (a) Final goods
60. Final consumer goods have _____ demand.
(a) Isolated
(b) Derived
(c) Direct
(d) Indirect
Answer
Answer: (c) Direct
Some Basic Concepts of Macroeconomics Class 12 MCQ
61. Final producer goods have _____ demand.
(a) Isolated
(b) Derived
(c) Direct
(d) Indirect
Answer
Answer: (b) Derived
62. Capital goods are also called _____.
(a) Final producer goods
(b) Consumer goods
(c) Intermediate goods
(d) Indirect goods
Answer
Answer: (a) Final producer goods
63. All producer goods are never _____ goods.
(a) Final goods
(b) Capital goods
(c) Intermediate goods
(d) Indirect goods
Answer
Answer: (b) Capital goods
64. Consumption goods which can be used over long time are called _____.
(a) Service
(b) Non-Durable
(c) Durable
(d) None of the above
Answer
Answer: (c) Durable
65. Cotton used by cloth mill is an example of ______ goods.
(a) Final goods
(b) Capital goods
(c) Intermediate goods
(d) Indirect goods
Answer
Answer: (c) Intermediate goods
66. Normal wear and tear of assets cause _____.
(a) Depreciation
(b) Amortization
(c) Obsolesce
(d) Devaluation
Answer
Answer: (a) Depreciation
67. Addition to capital stock before making allowance of depreciation is called _____ investment.
(a) Net
(b) Gross
(c) New
(d) Indirect
Answer
Answer: (b) Gross
68. Addition to capital stock after making allowance of depreciation is called ______ investment.
(a) Net
(b) Gross
(c) Ne
(d) Indirect
Answer
Answer: (a) Net
69. Net indirect tax is the difference between ______ and ______.
(a) Indirect taxes and direct taxes
(b) Direct taxes and subsidies
(c) Indirect taxes and subsidies
(d) All of these
Answer
Answer: (c) Indirect taxes and subsidies
70. The difference between market price and factor cost is ______.
(a) Net Indirect taxes
(b) Net Direct taxes
(c) Net Subsidies
(d) All of these
Answer
Answer: (a) Net Indirect taxes
Some Basic Concepts of Macroeconomics Class 12 MCQ
71. _______ Increase the price of the product.
(a) Indirect taxes
(b) Direct taxes
(c) Subsidies
(d) All of these
Answer
Answer: (a) Indirect taxes
72. _______ Decrease the price of product.
(a) Indirect taxes
(b) Direct taxes
(c) Subsidies
(d) All of these
Answer
Answer: (c) Subsidies
73. The difference between national income and domestic income is ______
(a) Depreciation
(b) NIT
(c) NFIA
(d) All of these
Answer
Answer: (c) NFIA
74. NFIA is zero in _______ economy.
(a) Closed
(b) Open
(c) Socialist
(d) Mixed
Answer
Answer: (a) Closed
75. Indian embassy in USA is not a part of domestic territory.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
76. Border workers near international borders are not treated as normal resident.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
77. A person can be a resident of one country but citizen of other countries.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
78. Factor incomes are not included in national income.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
79. Transfer incomes are included in domestic income
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
80. Intermediate goods have derived demand.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
Some Basic Concepts of Macroeconomics Class 12 MCQ
81. Purchase of chalks and duster by school is intermediate consumption.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
82. All producer goods are capital goods but all capital goods are not producer goods
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
83. Depreciation is caused due to unforeseen circumstances.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
84. Market price includes indirect taxes and subsidies.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
85. Assertion: Transfer income is received without participating in production process.
Reason: Transfer income is not included in national income.
(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) 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).
86. Assertion: Final goods can be used either for consumption or investment.
Reason: Value of final good is included in national income.
(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).
87. Assertion: All producer goods are not Capital goods.
Reason: Capital goods are a part of producer goods.
(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).
88. Assertion: Factor cost refers to the amount paid to factors of production for their services.
Reason: Factor cost is included to calculate national income.
(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: (c) (A) is correct but (R) is wrong.
89. Assertion: Gross investment excludes depreciation.
Reason: Depreciation is fall in the value of an asset due to its usage.
(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: (d) (A) is wrong but (R) is correct.
90. Assertion: NFIA can be negative.
Reason: Factor income from abroad can be less than factor income to abroad.
(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).
91. Assertion: Intermediate goods are those which are still in the production boundary.
Reason: Value of intermediate goods are included in national income.
(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: (c) (A) is correct but (R) is wrong.
CBSE Economics Class 12 MCQ with Answers – Term 2
Part A: Introductory Macroeconomics
- Circular Flow of Income Class 12 MCQ with Answers
- Some Basic Concepts of Macroeconomics Class 12 MCQ
- National Income and Related Aggregates Class 12 MCQs
- National Income and Related Aggregates Class 12 Numericals
- Determination of Income and Employment Class 12 MCQs
Part B: Indian Economic Development
- Current challenges facing Indian Economy – 12 Marks
- Development Experience of India – A Comparison with Neighbours – 6 Marks