CBSE Class 12 Introductory Macroeconomics by Pavan | Practice Test to Test Your Knowledge
Students

Academic Programs

AI-powered learning for grades 8-12, aligned with major curricula

Engineering Courses
Professional

Professional Courses

Industry-relevant training in Business, Technology, and Design

Certifications
Games

Interactive Games

Fun games to boost memory, math, typing, and English skills

  2. Practice Tests
  3. CBSE Class 12 Introductory Macroeconomics
CBSE Class 12 Introductory Macroeconomics

CBSE Class 12 Introductory Macroeconomics

Complete mock test covering National Income, Money, and Government Budget. Includes macroeconomic theories, policy instruments, and economic indicators.

2025-07-19
Pavan Pavan
CBSE Class 12 Macroeconomics Grade 12

Duration

30 min

Questions

30

Marking

Negative

You've not yet enrolled in this practice test. Please login to start practice test.

Questions Preview

What is the primary difference between microeconomics and macroeconomics?

A
Microeconomics deals with individual agents and markets, while macroeconomics examines the economy as a whole.
B
Microeconomics deals with global economic policies, while macroeconomics focuses on individual markets.
C
Microeconomics focuses on government decisions, while macroeconomics focuses on consumer behavior.
D
There is no difference between microeconomics and macroeconomics.

What caused the emergence of macroeconomics as a separate branch of economics?

A
The Great Depression of 1929 and the subsequent need to study economic functioning in its entirety.
B
The rise of capitalism in the early 20th century.
C
The failure of classical economic theory to explain inflation.
D
Increased international trade and the need to regulate it.

Which of the following is NOT a sector in the macroeconomic model?

A
External sector
B
Household sector
C
Private sector
D
Government sector

What was the unemployment rate in the USA during the Great Depression (1929-1933)?

A
3%
B
10%
C
25%
D
50%

Which of the following is NOT a factor of production in a capitalist economy?

A
Capital
B
Labour
C
Wage Labour
D
Raw Materials

What is the primary goal of macroeconomic policies?

A
To maximize profits for individual firms
B
To direct the economy towards societal welfare and public goals
C
To regulate international trade
D
To maximize the consumption of goods

Which economist is considered the founding father of modern economics?

A
Karl Marx
B
John Maynard Keynes
C
Adam Smith
D
Milton Friedman

Which event is most closely associated with the development of macroeconomics?

A
The Industrial Revolution
B
The Great Depression
C
World War I
D
The establishment of the European Union

What is the primary role of government in a capitalist economy?

A
To control all means of production
B
To regulate markets and provide public goods
C
To provide employment to all citizens
D
To prevent international trade

Which of the following is NOT a typical characteristic of a capitalist economy?

A
Private ownership of production
B
Government regulation of wages
C
Production for sale in markets
D
Wage labor

What is the main source of income for a household in a capitalist economy?

A
Profits from owning businesses
B
Wages from working in firms or government
C
Rent from leasing land
D
Sales of products in the market

Which of the following does NOT fall under the 'four factors of production' in a capitalist economy?

A
Land
B
Labour
C
Capital
D
Rent

Which of the following economic activities is NOT part of the 'external sector'?

A
Exports
B
Imports
C
Government expenditure
D
Capital flows between countries

What is the key characteristic of a capitalist economy?

A
Government control over production
B
Private ownership of production
C
No competition in the market
D
Wage equality

What is 'investment expenditure' in a capitalist economy?

A
Money spent by the government on welfare
B
Money spent by households on consumption
C
Money spent by firms to increase production capacity
D
Money spent by consumers on durable goods

What caused the unemployment rate in the USA to rise dramatically during the Great Depression?

A
Overproduction of goods
B
Decrease in consumer demand and factory closures
C
Government regulation of wages
D
Increased international trade

Which of the following best describes 'macroeconomic equilibrium'?

A
The point where all firms in the economy are producing at full capacity
B
The point where total demand equals total supply in the economy
C
The point where government spending equals taxes
D
The point where inflation and unemployment are both zero

Which of the following is the primary responsibility of the central bank (e.g., RBI)?

A
Regulating trade between countries
B
Managing the country's monetary policy
C
Setting the wage rates for all workers
D
Approving government expenditure

Which concept does macroeconomics primarily focus on?

A
The behavior of individual firms
B
The allocation of resources within individual markets
C
The overall performance of the economy
D
Individual income distribution

What is the role of government in a capitalist economy?

A
To control the prices of goods and services
B
To provide public goods and regulate markets
C
To own and control all industries
D
To ensure equal distribution of wealth

Which of the following is an example of an economic agent in macroeconomics?

A
The government
B
Consumers
C
Producers
D
All of the above

What is the role of international trade in a capitalist economy?

A
To increase domestic competition
B
To allow the country to export capital
C
To provide access to a larger market for goods and services
D
To reduce domestic production of goods

Which of the following would be an example of government intervention in the economy?

A
Setting minimum wage laws
B
Fixing prices of goods and services
C
Taxation policies
D
All of the above

Which of the following is NOT part of the macroeconomic framework?

A
Inflation rates
B
National income
C
Price levels
D
Market supply and demand

What is the most likely effect of inflation in an economy?

A
Increased purchasing power
B
Decreased interest rates
C
Decreased purchasing power
D
Increase in employment

What is the effect of a government's fiscal policy on an economy?

A
Changes in taxation and government spending
B
Adjustments to the money supply
C
Determining interest rates
D
Setting wage rates

What does 'market failure' refer to in macroeconomics?

A
When the supply and demand curves intersect
B
When markets do not allocate resources efficiently
C
When firms make large profits
D
When the government sets price controls

Which of the following is NOT a tool used by the government in macroeconomics?

A
Taxation policies
B
Monetary policy
C
Price controls
D
Interest rate changes

What is 'national income' in macroeconomics?

A
The total money supply in the economy
B
The total amount of goods and services produced
C
The total amount of government expenditure
D
The total number of workers employed

Which economic concept does the government focus on when aiming for full employment?

A
Reducing inflation
B
Increasing exports
C
Increasing government spending and investment
D
Raising interest rates