Bihar Board 12th Business Economics Objective Important Questions Part 2 in English

Bihar Board 12th Business Economics Objective Important Questions Part 2 in English

BSEB 12th Business Economics Objective Important Questions Part 2 in English

Question 1.
The causes of imbalances in balance of payment are:
(a) Natural Cause
(b) Economic cause
(c) Political Cause
(d) All of them
Answer:
(d) All of them

Question 2.
In trade which items are included?
(a) Capital transacted
(b) Invisible items
(c) Visible items
(d) None of the above
Answer:
(d) None of the above

Question 3.
What are the defects of elastic exchange rate system?
(a) Instability in international trade
(b) Uncertainty
(c) Bad effect of low rate
(d) All of them
Answer:
(d) All of them

Question 4.
Banking Lokpal Yojana was announced in which year?
(a) 1992
(b) 1995
(c) 1997
(d) 1999
Answer:
(b) 1995

Question 5.
Narasimhan Committee is related with which area:
(a) Tax reform
(b) agriculture reform
(c) Banking reform
(d) Income tax reform
Answer:
(c) Banking reform

Question 6.
The demand curve of food grains are generally:
(a) Elastic
(b) Inelastic
(c) Unit elastic
(d) Perfectly elastic
Answer:
(a) Elastic

Question 7.
Which is not public good?
(a) Street light
(b) Domestic electric saving
(c) National Security
(d) National highway
Answer:
(b) Domestic electric saving

Question 8.
Hard money is?
(a) Which is difficult in Sale and purchase
(b) Which is convertible in dollar and gold
(c) Fully and easily convertible
(d) None of these
Answer:
(a) Which is difficult in Sale and purchase

Question 9.
Larenge curve measures:
(a) Richness in society
(b) Degree of poverty
(c) Unemployment
(d) Inequality
Answer:
(d) Inequality

Question 10.
Which is not included in national income accounting?
(a) Income from rent
(b) Wages and income
(c) Interest and income
(d) Pension
Answer:
(d) Pension

Question 11.
The financial year of India is:
(a) January to December
(b) October to September
(c) April to March
(d) July to June
Answer:
(c) April to March

Question 12.
Monetary policy is regulated by:
(a) IMF
(b) Commercial Bank
(c) Finance Ministry
(d) Central Bank
Answer:
(d) Central Bank

Question 13.
What is the value of money?
(a) Price of the commodity
(b) Index
(c) Purchasing power
(d) Saving of money
Answer:
(c) Purchasing power

Question 14.
Which condition is necessary for a firm’s equilibrium in every market?
(a) AR = MC
(b) MR = MC
(c) MC Curve cuts MR curve from below
(d) both (a) and (b)
Answer:
(d) both (a) and (b)

Question 15.
Study of economics was divided into macro economics and micro economics in:
(a) 1930
(b) 1931
(c) 1935
(d) 1933
Answer:
(a) 1930

Question 16.
Short run average cost curve is generally:
(a) S-Shaped
(b) U-Shaped
(c) F-Shaped
(d) V-Shaped
Answer:
(b) U-Shaped

Question 17.
Opportunity cost is called:
(a) Explicit cost
(b) Implicit cost
(c) Transfer earning
(d) Monetary cost
Answer:
(c) Transfer earning

Question 18.
In perfect competition, which of the following is stable?
(a) AR
(b) MR
(c) Both AR and MR
(d) None of these
Answer:
(c) Both AR and MR

Question 19.
For a Firm’s equilibrium:
(a) MR = MC
(b) MR > MC
(c) MR < MC
(d) MR = MC = 0
Answer:
(a) MR = MC

Question 20.
In which market AR = MR?
(a) Monoploy
(b) Monopolistic Competition
(c) Both (a) and (b)
(d) Perfect competition
Answer:
(d) Perfect competition

Question 21.
In Monoploy and Monopolistic Competition:
(a) AR = MR
(b) AR > MR
(c) AR < MR
(d) None of these
Answer:
(b) AR > MR

Question 22.
In which market AR curve is parallel to x-axis?
(a) Perfect competition
(b) Monoploy
(c) Monopolistic
(d) All of the above
Answer:
(a) Perfect competition

Question 23.
In which market MR may become zero or negative?
(a) Monopoly
(b) Monopolistic
(c) Both (a) and (b)
(d) Perfect competition
Answer:
(c) Both (a) and (b)

Question 24.
Which items are included in Balance of payment?
(a) Visible items
(b) Invisible items
(c) Capital transfers
(d) All the above
Answer:
(d) All the above

Question 25.
Which one is the item of capital account?
(a) Govt, transactions
(b) Private transactions
(c) Foreign direct investment
(d) All the above
Answer:
(d) All the above

Question 26.
Which one is the item of current account?
(a) Import of visible items
(b) Expenses of Tourists
(c) Export of visible items
(d) All the above
Answer:
(d) All the above

Question 27.
The components of Balance of payment are:
(a) Current account
(b) Capital account
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 28.
Es = O means that elasticity of supply is:
(a) Perfectly
(b) Perfectly inelastic supply
(c) Less elastic supply
(d) Unit elastic supply
Answer:
(b) Perfectly inelastic supply

Question 29.
How many types of elasticity of demand has?
(a) 3
(b) 5
(c) 6
(d) 7
Answer:
(b) 5

Question 30.
Which of the following shows elasticity less than one?
(a) Necessity goods
(b) Comfortable goods
(c) Luxurious goods
(d) All the above
Answer:
(a) Necessity goods

Question 31.
Which of the following factor affects elasticity of demand?
(a) Nature of goods
(b) Price level
(c) Income level
(d) All the above
Answer:
(d) All the above

Question 32.
In production function, production is a function of:
(a) Price
(b) Factor of production
(c) Total expenditure
(d) Total Income
Answer:
(b) Factor of production

Question 33.
Which of the following explains the short-run production function?
(a) Law of demand
(b) Law of variable proportion
(c) Return to scale
(d) Elasticity of demand
Answer:
(b) Law of variable proportion

Question 34.
Long-run production function is related to:
(a) Law of demand
(b) Law of increasing returns
(c) Laws of return to scale
(d) Elasticity of demand
Answer:
(c) Laws of return to scale

Question 35.
Production function is expressed as:
(a) Qx = Px
(b) Qx = f (A, B, C, D)
(c) Qx = Dx
(d) None of these
Answer:
(b) Qx = f (A, B, C, D)

Question 36.
Which factors of the following we find in short-run production process?
(a) Fixed factor
(b) Variable factor
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Variable factor

Question 37.
Which of the following is not fixed cost?
(a) Insurance premium
(b) Interest
(c) Cost of Raw material
(d) Rent of the land
Answer:
(c) Cost of Raw material

Question 38.
The alternative name of opportunity cost is:
(a) Economic cost
(b) Equilibrium price
(c) Marginal cost
(d) Average cost
Answer:
(a) Economic cost

Question 39.
Which of the following factor affects demand?
(a) Price
(b) Change in Income
(c) Taste of the consumer
(d) All the above
Answer:
(d) All the above

Question 40.
Law of demand is a:
(a) Qualitative Statement
(b) Quantitative Statement
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Quantitative Statement

Question 41.
Factor of demand is a?
(a) Px
(b) Dx = Px
(c) Dx = f (Px)
(d) None of the these
Answer:
(c) Dx = f (Px)

Question 42.
According to whom, economics is a science of human welfare?
(a) Marshall
(b) Keynes
(c) J.S. Mill
(d) Adam Smith
Answer:
(a) Marshall

Question 43.
Who said-“Economics is the science of wealth”
(a) Adam Smith
(b) Keynes
(c) Robbins
(d) Marshall
Answer:
(a) Adam Smith

Question 44.
Micro economics includes:
(a) Individual
(b) Infividual price determination
(c) Small units
(d) All of the above
Answer:
(d) All of the above

Question 45.
The word ‘micro’ was firstly used by:
(a) Marshall
(b) Boulding
(c) Keynes
(d) Ragner
Answer:
(d) Ragner

Question 46.
The central problem of an economy is:
(a) What to produce
(b) How to produce
(c) How to distribute
(d) All the above
Answer:
(d) All the above

Question 47.
Economy may be classified as:
(a) Capitalist
(b) Socialist
(c) Mixed
(d) All the above
Answer:
(d) All the above

Question 48.
In a competitive market ………… will fall as a result of deficiency in demand:
(a) Price
(b) Output
(c) Employment
(d) All the above
Answer:
(a) Price

Question 49.
If the trade unions are strong ………… will not fall:
(a) Output
(b) Employment
(c) Wage rate
(d) All the above
Answer:
(c) Wage rate

Question 50.
Which is known as the ‘Bank of the Banks’ in India?
(a) Reserve Bank of India
(b) State Bank of India
(c) Bank of India
(d) Central Bank of India
Answer:
(a) Reserve Bank of India

Question 51.
Which one is included in the primary function of money?
(a) Medium of Exchange
(b) Measure of value
(c) Both (a) and (b)
(d) Store of value
Answer:
(c) Both (a) and (b)

Question 52.
Which one is included in the secondary function of money?
(a) Transfer of value
(b) Store of value
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 53.
The functions of money includes:
(a) Value determination
(b) Store of value
(c) Medium of exchange
(d) All of these
Answer:
(d) All of these

Question 54.
Which one is not the function of money?
(a) Measure of value
(b) Transfer of value
(c) Store of value
(d) Stabilization of value
Answer:
(d) Stabilization of value

Question 55.
India’s largest bank is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India
Answer:
(d) Bank of India

Question 56.
In India currency note is issued by:
(a) Ministry of Finance
(b) Finance Secretary
(c) State Bank of India
(d) Reserve Bank of India
Answer:
(d) Reserve Bank of India

Question 57.
Reserve Bank of India was established in:
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer:
(b) 1935

Question 58.
APC + APS = ?
(a) 0
(b) 1
(c) ∞
(d) None of the above
Answer:
(b) 1

Question 59.
Monetary policy is related with:
(a) Public expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations
Answer:
(d) Open market operations

Question 60.
What is Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Answer:
(a) Commercial Bank

Question 61.
Value of MPC is:
(a) 1
(b) 0
(c) greater than 0, less than 1
(d) ∞
Answer:
(c) greater than 0, less than 1

Question 62.
NNPmp = ?
(a) GNP mp – Depreciation
(b) GNP mp + Depreciation
(c) GNP mp + Indirect tax
(d) None of these
Answer:
(a) GNP mp – Depreciation

Question 63.
Who is known as the ‘Father of Economics’?
(a) Marshall
(b) Malthus
(c) Adam Smith
(d) John Robinson
Answer:
(c) Adam Smith

Question 64.
Which of the following is the agent of Production?
(a) Land
(b) Capital
(c) Labour
(d) All the above
Answer:
(d) All the above

Question 65.
Direct tax is:
(a) Income tax
(b) Gift tax
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 66.
Which of the following is an indirect tax?
(a) Income tax
(b) Gift tax
(c) Sales tax
(d) None of these
Answer:
(c) Sales tax

Question 67.
Study of national income is related to ………..:
(a) Micro economics
(b) Macro economics
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer:
(b) Macro economics

Question 68.
The General Theory of Employment, Interest and Money was Written by ………..:
(a) Marshall
(b) Ranger
(c) Keynes
(d) Ricardo
Answer:
(c) Keynes

Question 69.
Mountain and rivers are ………..:
(a) National Capital
(b) National wealth
(c) Real Capital
(d) International Capital
Answer:
(b) National wealth

Question 70.
An economy which has economic relations to other countries is known as ………..:
(a) Closed economy
(b) Open economy
(c) Self-reliant economy
(d) None of these
Answer:
(b) Open economy

Question 71.
Consumption of fixed capital is also known as ………..:
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All the above
Answer:
(b) Depreciation

Question 72.
National income is calculated through ………..:
(a) Income method
(b) Output method
(c) Expenditure method
(d) All the above
Answer:
(d) All the above

Question 73.
The Great Depression of the world took place in ………..:
(a) 1920
(b) 1925
(c) 1930
(d) 1935
Answer:
(c) 1930

Question 74.
Keynes assumed the situation of ………..:
(a) full employment
(b) involuntary unemployment
(c) underemployment
(d) marginal unemployment
Answer:
(c) underemployment

Question 75.
Multiplier is equal to ………..:
(a) Changes in income/Changes in investment
(b) Change in income
(c) Changes in investment
(d) None of these
Answer:
(a) Changes in income/Changes in investment

Question 76.
Fiscal policy is also called ………..:
(a) Monetary policy
(b) Budgetary policy
(c) Economic policy
(d) None of these
Answer:
(b) Budgetary policy

Question 77.
In case of monetary policy excess and deficient demand is possible through ………..:
(a) Bank rate policy
(b) Credit control
(c) (a) and (b)
(d) None of these
Answer:
(c) (a) and (b)

Question 78.
Number of central bank in a country is ………..:
(a) Two
(b) One
(c) Three
(d) None of these
Answer:
(b) One

Question 79.
Central bank grants loan to ………..:
(a) General Public
(b) Private Companies
(c) Commercial Bank
(d) All the above
Answer:
(c) Commercial Bank

Question 80.
Credit creation is controlled by ………..:
(a) Government
(b) Central Bank
(c) Commercial Bank
(d) None of these
Answer:
(b) Central Bank

Question 81.
Which one of the following is the tax revenue of the government?
(a) Excise
(b) Wealth tax
(c) Entertainment tax
(d) All of these
Answer:
(d) All of these

Question 82.
Balance of payment deficit can be corrected by ………..:
(a) Import substitution
(b) Export promotion
(c) Increase in production
(d) All the above
Answer:
(d) All the above

Question 83.
……….. is the short form of export-import:
(a) EI
(b) EXI
(c) EXIM
(d) EIM
Answer:
(c) EXIM

Question 84.
Which deposit pay more interest?
(a) Saving account
(b) Current account
(c) Fixed account
(d) All three
Answer:
(c) Fixed account

Question 85.
Who has the right to issue the paper note in India?
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) None of the above
Answer:
(c) Reserve Bank of India

Question 86.
The name of Central Bank in India is:
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Punjab National Bank
Answer:
(c) Reserve Bank of India

Question 87.
14 Banks of India were nationalized in:
(a) 1960
(b) 1969
(c) 1980
(d) 1985
Answer:
(b) 1969

Question 88.
Which economist has given the transaction approach of money?
(a) Marshall
(b) Pigou
(c) Fischer
(d) Robertson
Answer:
(c) Fischer

Question 89.
State Bank was established in:
(a) 1951
(b) 1955
(c) 1957
(d) 1966
Answer:
(b) 1955

Question 90.
Imperial Bank of India was transformed in:
(a) Reserve Bank
(b) Central Bank
(c) State Bank
(d) Punjab National Bank
Answer:
(c) State Bank

Question 91.
Keynes theory is associated with:
(a) Effective demand
(b) Propensity to consume
(c) Propensity to save
(d) All the above
Answer:
(d) All the above

Question 92.
On which of the following Keynesian theory of employment depends upon?
(a) Effective demand
(b) Supply
(c) Production efficiency
(d) None of these
Answer:
(a) Effective demand

Question 93.
If MPC = 0.5, then multiplier (k) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0
Answer:
(c) 2

Question 94.
Which factor affects Keynesian multiplier?
(a) Marginal propensity to save
(b) Marginal propensity to consume
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 95.
Keynes derived investment multiplier from Kahn’s:
(a) Income multiplier
(b) Consumption multiplier
(c) Employment multiplier
(d) None of these
Answer:
(c) Employment multiplier

Question 96.
In the situation of deflationary gap?
(a) Demand increases rapidly
(b) Supply increases rapidly
(c) Both demand and Supply are equal
(d) None of these
Answer:
(b) Supply increases rapidly