Determination of Income and Employment — Economics STD 12 Humanities & Commerce — Question

With a rise in real national income, welfare of the people:

1. Rises.
2. Falls.
3. Remains unchanged.
4. None of the above.

Scholarship is an example of:

1. Grant.
2. Transfer payment.
3. Subsidies.
4. Capital formation.

When the value of MPC is 0.7, the value of MPS will be:

1. 0.3
2. 1.0
3. Zero
4. 0.8

Primary deficit in a government budget is: (Choose the correct alternative)

1. Revenue expenditure - Revenue receipts.
2. Total expenditure - Total receipts.
3. Revenue deficit - Interest payments.
4. Fiscal deficit - Interest payments.

Equilibrium output, income and employment can be determined at economic equilibrium point when (Where, Y = National Income, C = Consumption, S = Savings, I = Investment)

1. Y = C
2. AS = AD
3. S = 1
4. Both (b) and (c)

Which function of foreign exchange market protects against the foreign exchange risk?

1. Credit function.
2. Hedging function.
3. Transfer function.
4. All of them.

If revenue expenditure is ₹ 980 crore, tax revenue is ₹ 410 crore and non-tax revenue is ₹ 365 crore, then find revenue deficit.

1. ₹ 615 crore
2. ₹ 205 crore
3. ₹ 765 crore
4. ₹ 570 crore

Credit creation by commercial banks is determined by:

1. Cash Reserve Ratio (CRR).
2. Statutory Liquidity Ratio (SLR).
3. Initial Deposits.
4. All the above.

The government starts selling its securities to private sector. What is this process called?

1. Open market operation.
2. Disinvestment.
3. Monetary expansion.
4. None of these.