CBSE Class XII Economics - Practice Test

Read the following statements: Statement 1: The level of consumption has a direct impact on the amount of savings the households can accumulate over time. Statement 2: Higher consumption often lead to lower savings, while lower consumption tend to facilitate higher levels of savings. Choose the correct alternative:

The scenario which would lead to an increase in GDP, but might not necessarily improve overall welfare?

If the government implements a tax cut and people use most of their extra money to increase their consumption, this suggests about the MPC that:

A positive balance in the Capital Account of the Balance of Payments of a country indicates that:

When individuals harmoniously enter into agreements to honor the repayment of a loan at a designated point in the future, they are engaging in which pivotal function of money:

Punjab National Bank receives a deposit of 80,000 and the reserve requirement is 10%. If the bank decides to hold reserves equal to 20% of the deposit instead of the required amount, how much excess reserve does the bank hold?

The interaction between the concept of the price level and the dynamics of aggregate demand in an economy is interconnected as:

The influence exerted by international borrowing on the foreign exchange supply within an economy is indicated when it:

Given an economy with a Consumption Function of C = 750 + 0.5Y, where C represents Consumption Expenditure, Y represents National Income and an Investment Expenditure of 2,300, what would be the Consumption Expenditure at the equilibrium level?

Which of the following best defines 'Unilateral Transfers' in the context of international transactions?

What is the distinction between Autonomous Items and Accommodating Items concerning a nation's Balance of Payments?

Calculate Gross Domestic Product at market price using Expenditure method with given data: Private final consumption expenditure 9,800 crore, Government final consumption expenditure 12,000 crore, Change in stock 275 crore, Gross domestic fixed capital formation 875 crore, Net exports (-90) crore.

If National Income is 250 crore and Savings is 80 crore, what is the Average Propensity to Consume? When National Income rises to 390 crore and Savings to 115 crore, what will be the Marginal Propensity to Save?

What happens when ex-post Aggregate Demand surpasses ex-post Aggregate Supply?

Which is a main function of the Reserve Bank of India that contributes to economic growth?

With Revenue expenditure 80,350 crore, Capital expenditure 92,000 crore, Interest payments 18,000 crore, Revenue receipts 63,875 crore, what is the Revenue Deficit?

In the estimation of a country's National Income, is 'Rent-free house to an employee by an employer' included?

The overarching objective of equitable distribution goals in planning is to:

The main objective of China's One Child Policy, which was implemented from 1979 to 2016 was:

What favorable outcomes can be anticipated from a strategy of substituting imports with domestic renewable energy technologies?

A farmer Chandu practices organic farming and uses crop rotation and natural predators to control pests. What is an advantage of this approach compared to conventional pesticides use?

Assertion (A): The industrial sector reforms implemented under liberalization policies led to an increase in Foreign Direct Investment in the manufacturing sector. Reason (R): Liberalization policies aimed to toughen trade barriers, regulate industries, and provide a conducive environment for Indigenous investors. Choose the correct alternative:

The multifaceted process of demographic transition within the context of India pertains to:

Select the option that presents a common challenge associated with sustainable aquaculture practices:

In urban areas with high population density, which challenge is often associated with housing and living conditions?

Statement 1: Jobless growth has been a significant challenge in the Indian economy in recent years. Statement 2: Despite witnessing economic growth, the Indian economy has been struggling to create sufficient employment opportunities. Choose the correct alternative:

Match the correct pairs: A. Medium Term Development Plan, B. NITI Aayog, C. Command Economy, D. Economic Reform 1991 with I. China model of growth, II. Reforms in India, III. Pakistan's Five-Year Plans, IV. Planning commission is replaced

Which was a key feature of the Indian economy on the eve of independence that contributed to its predominantly stagnant structure?

Which is a source of human capital development?

Which was a primary policy endeavor undertaken by the Chinese government after independence for economic advancement?