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

Which exchange rate is officially declared by the government?

1. Managed Floating Rate.
2. Floating Exchange Rate.
3. Fixed Exchange Rate.
4. None.

If India exports goods worth 20 crore and imports goods worth 30 crore, it will have a _________.

1. surplus of ₹ 10 crore in balance of trade.
2. deficit of ₹ 10 crore in balance of trade.
3. deficit of ₹ 50 crore in balance of trade.
4. can't say.

If the Average Product (AP) of a labour is 30 units of outputs, then find total product of 2 labours.

1. 10 units of output.
2. 15 units of output.
3. 30 units of output.
4. 60 units of output.

Hint: Total Product (TP) is the sum total of output produced by all units of labour.
TP = AP XL where, AP = Average Product
TP = 30 x 2 = 60 units L = Number of Labour

Which of the following is not the function of the central bank?

1. Banking facilities to government.
2. Banking facilities to public.
3. Lending’s to government.
4. Lending’s to commercial banks.

Average fixed cost curve ________. (Choose the correct alternative)

1. Is a straight line parallel to X-axis.
2. Is straight line parallel to Y-axis.
3. Falls, as more units are produced.
4. Rises, as more units are produced.

Price elasticity of demand is _______ in number because price and quantity demanded are inversely related:

1. Positive.
2. Negative.
3. Constant.
4. Prime.

Due to increase in income of the consumer, the demand curve of normal goods will:

1. Move upwards.
2. Shift leftwards.
3. Shift rightwards.
4. Move downwards.

Microeconomics is not concerned with the behaviour of:

1. National income.
2. A consumer.
3. A firm.
4. A producer.

Inferior goods are those whose income effect is:

1. Negative.
2. Positive.
3. Zero.
4. None of these.

The Law of Demand, assuming other things to remain constant, establishes the relationship between:

1. Income of the consumer and the quantity of goods demanded by him.
2. Price of goods and the quantity demanded.
3. Price of goods and the demand for its substitute.
4. Quantity demanded of goods and the relative prices of its complementary goods.