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Government Budget Class 12 MCQ

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Government Budget Class 12 MCQ. We covered all the Government Budget Class 12 MCQ in this post for free so that you can practice well for the exam.

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Mock Test on Government Budget for Class 12 Students

Private ownership of the means of production is a feature of a ………. economy.

(a) capitalist

(b) socialist

(c) mixed

(d) dual

Option a – capitalist

The growth of resources in an economy is shown in Production Possibility by

(a) Leftward shift

(b) Rightward shift

(c) Unchanged

(d) None of the above

Option b – Rightward shift

Which State of India experiences the maximum annual variation of rainfall?

(A) Meghalaya

(B) Kerala

(C) Rajasthan

(D) West Bengal

Show Answer

According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to

(a) improve

(b) diminish

(c) remain constant

(d) first, diminish and then improve

Option b – diminish

The value of the slope of a normal demand curve is

(a) positive

(b) negative

(c) zero

(d) infinity

Option b – negative

Pakyong Airport is located in?

(A) Sikkim

(B) Jammu and Kashmir

(C) Arunachal Pradesh

(D) Mizoram

Show Answer

Which of the following deals with microeconomics analysis?

(a) General price level

(b) General Supply

(c) Market demand

(d) Consumer demand

Option d – Consumer demand

The production function of a firm will change whenever.

(a) input price changes.

(b) the firm employs more of any input.

(c) the firm increases its level of output.

(d) the relevant technology changes.

Option a – input price changes

Which one of the following is not correct?

(a) The average revenue and marginal revenue curves of a perfectly competitive firm are perfectly elastic.

(b) The marginal revenue curve of the monopoly firm is above its average revenue curve.

(c) In the long run, a competitive firm earns only normal profits.

(d) In equilibrium, the marginal cost curve of the monopoly firm may be rising, falling, or constant.

Option b – The marginal revenue curve of the monopoly firm is above its average revenue curve

One criticism of Rostow’s Theory of Economic Growth is that

(a) much available data contradicts his thesis about the take-off stage.

(b) there is no explanation for why growth occurs after take-off.

(c) his hypothesis of stages of growth is difficult to test empirically.

(d) All of the above are correct

Option d – All of the above are correct

Zero price elasticity of demand means

(a) whatever the change in price, there is absolutely no change in demand.

(b) for a small change in price, there is a small change in demand.

(c) for a small change in price, there is a large change in demand.

(d) for a large change in price, there is a small change in demand.

Option a – whatever the change in price, there is absolutely no change in demand

Which one among the following pairs is not correctly matched?

(a) When the total product increases at an increasing rate – Marginal product increases

(b) When total product increases at a diminishing rate – Marginal product declines

(c) When the total product reaches its maximum – The marginal product becomes zero

(d) When the total product begins to decline – The marginal product becomes positive

Option d – When the total product begins to decline – The marginal product becomes positive

According to the Law of Diminishing Returns, in a production function, when more and more units of the variable factor are used, holding the quantities of a fixed factor constant, a point is reached beyond which

(a) the marginal revenue will diminish.

(b) the average revenue will diminish.

(c) the marginal product will diminish.

(d) the marginal product will increase.

Option c – the marginal product will diminish

The law of increasing returns means

(a) increasing cost

(b) decreasing cost

(c) increasing production

(d) increasing income

Option a – increasing cost

Which one of the following is an example of a Price-ceiling?

(a) Fares charged by Airlines in India.

(b) The price is printed on biscuit packets.

(c) The minimum support price for cane growers.

(d) Minimum wages are fixed by State governments.

Option b – The price is printed on biscuit packets

According to Simple Keynesian theory, the slope of the aggregate consumption curve against income is

(a) Positive

(b) Negative

(c) Zero

(d) Infinity

Option a – Positive

John Maynard Keynes, best known for his economic theory (Keynesian economics), hailed from which country?

(a) Sweden

(b) Denmark

(c) Australia

(d) England

Option d – England

The price of a commodity is the same as

(a) average revenue

(b) total cost

(c) average cost

(d) total revenue

Option a – average revenue

Income and consumption are

(a) inversely related

(b) directly related

(c) partially related

(d) unrelated related

Option b – directly related

The minimum payment of the factor of production is called

(a) quasi rent

(b) rent

(c) wages

(d) transfer payments

Option d – transfer payments

The demand in economics means

(a) aggregate demand

(b) market demand

(c) individual demand

(d) demand backed by purchasing power.

Option d – demand backed by purchasing power

The equilibrium price is the price when

(a) supply is greater than demand.

(b) supply is less than demand.

(c) demand is very high.

(d) supply is equal to demand.

Option d – supply is equal to demand

Barter Transaction means.

(a) goods are exchanged for gold

(b) coins are exchanged for good

(c) money acts as a medium of exchange

(d) goods are exchanged with goods

Option d – goods are exchanged with goods

Who is renowned as the ‘Father of Modern Economics’?

(a) Adam Smith

(b) Marshal

(c) Keynes

(d) Robins

Option a – Adam Smith

Who is the writer of the book ‘Wealth of Nations’?

(a) Adam Smith

(b) Marshal

(c) Pigow

(d) Keynes

Option a – Adam Smith

The main emphasis of Keynesian economics is on

(a) expenditure

(b) exchange

(c) foreign trade

(d) taxation

Option a – expenditure

Who coined the concept of the ‘Paradox of Thrift’?

(a) Adam Smith

(b) Alfred Marshall

(c) John Maynard Keynes

(d) Paul A Samuelson

Option a – Adam Smith

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