Introduction to Micro and Macro Economics — Economics STD 12 Commerce / Arts — Question

Obligatory functions of the Government:
a) Provision of employment
b) Maintaining internal law and order
c) Welfare measures
d) Exporting goods and services

International trade is important because –
(a) it helps in optimal utilisation of resources
(b) it brings stability in price level
(c) it helps to earn foreign exchange
(d) it encourages investment

Determinants of supply are …………………..

Optional functions of Government.
(a) Protection from external attack.
(b) Provision of education and health services.
(c) Provision of social security measures.
(d) Collection of tax.

Identify the right group of pairs from the given options.
I) Direct tax – a) Non-tax revenue
ii) Indirect tax – b) Inflation
iii) Fees and Fines – c) GST
iv) Surplus budget – d) Personal income tax

a) National Income Committee — 1949
b) Financial year 1’ April to 31st March
c) Income method — National Income = Rent + Wages + Interest + Profit + Mixed income + Net Income from abroad
d) Expenditure method – National Income = Rent + Wages + Interest + Profit

Trends shown by Public expenditure of any Government shows following trend.
a) Constant
b) Increasing
c) Decreasing
d) Fluctuating

Role of foreign trade is
a) To earn foreign exchange
b) To encourage investment
c) Lead to division of labour
d) Bring change in composition of exports

After a point of satiety, any additional consumption of commodity results into –
(a) negative MU
(b) diminishing TU
(c) disutility
(d) maximum TU

According to National Income Committee, NI is ………………….
(a) volume of goods and services
(b) produce in one year
(c) goods and services counted without duplication
(d) all of these