CBSE Class 12 Economics — MCQs
Multiple choice questions from all previous year papers.
15 questions found
2026(15 questions)
- 1
In a two sector economy, the flow of factor payments moves from __________ to __________. (Choose the correct option to fill in the blanks)
1 mark· A· Circular Flow of Income - 4
In an economy, when __________ is insufficient to achieve the level of output corresponding to the full employment, the difference is termed a deflationary gap. (Choose the correct option to fill in the blank)
1 mark· A· Deflationary Gap - 21
Read the following text carefully : "In the recent times, the Government of India, has introduced several measures to encourage greater public participation in the capital market, including both primary and secondary stock markets." Under which sector have the above mentioned reforms been introduced ? (Choose the correct option)
1 mark· B· Financial Sector Reforms - 25
Match the terms given in Column-I with their respective meaning in Column-II. Select the correct option : Column-I | Column-II (i) Seasonal Unemployment | (a) Private enterprises hiring less than 10 employees (ii) Self-employed | (b) Workers using their own resources to earn livelihood (iii) Unorganised sector | (c) Unemployment occurring in specific season (iv) Disguised Unemployment | (d) Zero Marginal Productivity
1 mark· B· Employment Terms — Seasonal/Disguised Unemployment, Self-employment, Unorganised Sector - 3
Read the following statements carefully : Statement 1 : Depreciation of currency is an economic action undertaken by the government of a nation under the fixed exchange rate system. Statement 2 : Under the floating exchange Rate system, authorities actively intervene in the foreign exchange market by way of maintaining foreign exchange reserves. In the light of the given statements, choose the correct option from the following :
1 mark· A· Fixed vs Floating Exchange Rate — Devaluation and Depreciation - 5
In an economy, exclusion of ___________ may lead to under estimation of the value of Gross Domestic Product (GDP). (Choose the correct option to fill in the blank) (i) Barter Transactions (ii) Services provided by family members (iii) Illegal activities (iv) Depreciation of Assets
1 mark· A· Exclusions Leading to Underestimation of GDP - 7
Read the following statements carefully : Statement 1 : Final goods are those goods which normally lose their identity in the production process. Statement 2 : Final goods may get transformed during the consumption process by a consumer. (Choose the correct option)
1 mark· A· Final Goods vs Intermediate Goods - 9
"In the Indian Banking System, the Statutory Liquidity Ratio (SLR) plays a vital role in controlling the credit creation capacity of the Commercial Banks, as it __________." (Choose the correct option to fill in the blank)
1 mark· A· Statutory Liquidity Ratio (SLR) - 19
Read the following statements carefully : Statement 1 : During the British rule in India, the export surplus was utilised to import of invisible items from Britain. Statement 2 : Indians paid for the expenses incurred by an office set up by the colonial government in Britain. In the light of above statements, choose the correct option from the following :
1 mark· B· Drain of Wealth during British Rule - 22
The Montreal Protocol was signed in the year 1987 committing nations to __________. (Choose the correct option to fill in the blank)
1 mark· B· Montreal Protocol and Ozone Layer Protection - 24
Identify, which of the following, highlights a highly relevant issue associated with evolving employment trends in India's labour market ?
1 mark· B· Informalisation of Workforce - 26
"Sustainable development refers to the development that meets the need of the present generation without compromising the ability of the future generations, to meet their own needs." The above mentioned definition has been given by __________. (Choose the correct option to fill in the blank)
1 mark· B· Definition of Sustainable Development - 28
Arrange the following events in China's economic development history in correct chronological sequence and select the correct option : I. Great Proletarian Cultural Revolution. II. Great leap forward III. Introduction of Economic Reforms IV. Launch of the First Five Year Plan
1 mark· B· Chronology of China's Economic Development - 10
In an economy, the currency held by the public, Net Demand Deposits with Commercial Banks and Net Time Deposits with Commercial Banks stand at ` 1,42,000 crore, ` 22,000 crore and ` 86,000 crore respectively. The value of Money Supply (M1) would be ` __________ crore. (Choose the correct option to fill in the blank)
1 mark· A· Measures of Money Supply (M1) - 6
Identify, which of the following is true at the Break Even level of Income. (Choose the correct option)
1 mark· A· Break-Even Point (APC and APS)