Q1
Planning Commission was set up in the year :
- A. 1947
- B. 1950Correct
- C. 1948
- D. 1951
Explanation. The Planning Commission of India was set up in March 1950 by a resolution of the Government of India.
12th Standard Economics May 2022: MCQs with Answers
The 20 one-mark questions from the May 2022 12th Standard Economics public exam, in paper order, with the correct option marked and a short explanation.
Answer key at a glance
Q2
Favourable trade means value of exports are ________ than that of Imports.
- A. more or less equal
- B. moreCorrect
- C. equal
- D. less
Explanation. A favourable balance of trade exists when the value of exports is more than the value of imports.
Chapter:
International Economics
Q3
Mild Inflation is also known as ________.
- A. Creeping InflationCorrect
- B. Walking Inflation
- C. Galloping Inflation
- D. Running Inflation
Explanation. A slow, mild rise in the general price level (about 2-3% a year) is called creeping inflation.
Chapter:
Monetary Economics
Q4
The RBI Headquarters is located at :
- A. MumbaiCorrect
- B. Delhi
- C. Bengaluru
- D. Chennai
Explanation. The Reserve Bank of India's central office has been in Mumbai since 1937.
Chapter:
Banking
Q5
Indicate the contribution of J.M. Keynes to Economics :
- A. Capital
- B. Wealth of Nations
- C. Public Finance
- D. General TheoryCorrect
Explanation. Keynes wrote 'The General Theory of Employment, Interest and Money' (1936). 'Capital' is by Karl Marx and 'Wealth of Nations' by Adam Smith.
Chapter:
Introduction to Macro Economics
Q6
The Average Propensity to consume is measured by :
- A. Y/C
- B. C/YCorrect
- C. C+Y
- D. C×Y
Explanation. Average propensity to consume is total consumption divided by total income: APC = C/Y.
Chapter:
Consumption and Investment Functions
Q7
Sources of Secondary data are ________.
- A. Published sources
- B. Unpublished sources
- C. Neither published nor unpublished sources
- D. Both (a) and (b)Correct
Explanation. Secondary data are collected from both published sources (reports, journals) and unpublished sources (records, files of offices).
Q8
J.B. Say is a ________.
- A. Modern Economist
- B. Neo Classical Economist
- C. New Economist
- D. Classical EconomistCorrect
Explanation. J.B. Say, the French economist who gave Say's law of markets, belongs to the classical school.
Chapter:
Theories of Employment and Income
Q9
Acid rain is one of the consequences of ________.
- A. Land pollution
- B. Air pollutionCorrect
- C. Noise pollution
- D. Water pollution
Explanation. Sulphur dioxide and nitrogen oxides released into the air mix with rain water to form acid rain, so it results from air pollution.
Chapter:
Environmental Economics
Q10
The term MEC was introduced by :
- A. Ricardo
- B. Adam Smith
- C. Malthus
- D. J.M. KeynesCorrect
Explanation. Keynes introduced the Marginal Efficiency of Capital (MEC) in his General Theory as a determinant of investment.
Chapter:
Consumption and Investment Functions
Q11
A Commercial Bank is an Institution that provides services :
- A. Accepting deposits
- B. Providing loans
- C. Both (a) and (b)Correct
- D. None of the above
Explanation. The primary functions of a commercial bank are accepting deposits and granting loans and advances.
Chapter:
Banking
Q12
GDP deflator = ________.
- A. \(\frac{\text{Nominal NDP}}{\text{Real NDP}} \times 100\)
- B. \(\frac{\text{Nominal GNP}}{\text{Real GNP}} \times 100\)
- C. \(\frac{\text{Nominal NNP}}{\text{Real NNP}} \times 100\)
- D. \(\frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100\)Correct
Explanation. The GDP deflator measures the price level: it is nominal GDP divided by real GDP, multiplied by 100.
Chapter:
National Income
Q13
Per capita Income is obtained by dividing the National Income by :
- A. Expenditure
- B. Production
- C. GNP
- D. Population of a countryCorrect
Explanation. Per capita income = National income ÷ Population of the country.
Chapter:
National Income
Q14
Say's law of Market assumes :
- A. Short-run analysis
- B. Full employmentCorrect
- C. Imperfect competition
- D. Under employment
Explanation. Say's law ('supply creates its own demand') assumes a perfectly competitive, long-run economy that is always at full employment.
Chapter:
Theories of Employment and Income
Q15
Trade between two countries is known as ________.
- A. Internal trade
- B. Home trade
- C. External tradeCorrect
- D. None of the above
Explanation. Trade across national borders, between two or more countries, is external (international) trade.
Chapter:
International Economics
Q16
New Development Bank is associated with :
- A. SAARC
- B. BRICSCorrect
- C. ASEAN
- D. WTO
Explanation. The New Development Bank was established by the BRICS countries (Brazil, Russia, India, China, South Africa), with headquarters in Shanghai.
Chapter:
International Economic Organisations
Q17
The branches of the subject Economics is :
- A. Demand and Supply
- B. Wealth and Welfare
- C. Micro and MacroCorrect
- D. Production and Consumption
Explanation. Economics is divided into two main branches: micro economics (individual units) and macro economics (the economy as a whole).
Chapter:
Introduction to Macro Economics
Q18
Who will act as the banker to the Government of India ?
- A. ICICI
- B. SBI
- C. RBICorrect
- D. NABARD
Explanation. As the central bank, the Reserve Bank of India acts as banker, agent and adviser to the Government.
Chapter:
Banking
Q19
The Modern State is :
- A. Welfare stateCorrect
- B. Laissez-faire state
- C. Police state
- D. Aristocratic state
Explanation. Modern states have moved from the laissez-faire/police state role to that of a welfare state that promotes the well-being of citizens.
Chapter:
Fiscal Economics
Q20
The Chairperson of NITI Aayog is ________.
- A. Vice-president
- B. Prime MinisterCorrect
- C. Finance Minister
- D. President
Explanation. The Prime Minister of India is the ex-officio Chairperson of NITI Aayog.
About this paper
These are the Part I one-mark multiple-choice questions from the May 2022 12th Standard Economics public examination conducted by the Tamil Nadu Directorate of Government Examinations. The answers and explanations are prepared by TN Online Test for revision. Each question links to the textbook chapter it comes from, so you can go back to that chapter's notes and MCQs.