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CBSE Class 12 (Arts) Introduction to Microeconomics — practice questions — page 2

Explore 50 free Introduction to Microeconomics questions in CBSE Class 12 (Arts) Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Introduction to Microeconomics questions and exercises with answers

Showing questions 31–50 of 50.

In social accounting, public enterprises such as Post Offices and railways are classified under which sector?Read the answer and worked solution →Pop what this year's GDP countsRead the answer and worked solution →Fill the money multiplier chainRead the answer and worked solution →In which year did India get its central bank, the Reserve Bank of India?Read the answer and worked solution →Which function of money removes the need for a double coincidence of wants in trade?Read the answer and worked solution →The Cash Reserve Ratio is the percentage of a bank's deposits that it must hold asRead the answer and worked solution →The RBI is described as the 'lender of last resort' because itRead the answer and worked solution →Which of these is a function of the Reserve Bank of India?Read the answer and worked solution →Currency issued by the central bank, held by the public or by banks, is known asRead the answer and worked solution →A commercial bank's 'spread' is the difference between the interest itRead the answer and worked solution →Which requirement obliges a bank to hold reserves in liquid form in the short term?Read the answer and worked solution →When the RBI buys government bonds in the open market, the money supplyRead the answer and worked solution →The rate at which the RBI lends money through a repurchase agreement is theRead the answer and worked solution →Under a reverse repurchase agreement, the RBI is effectivelyRead the answer and worked solution →An increase in the bank rate affects the money supply by makingRead the answer and worked solution →Which of these is a quantitative tool of monetary control?Read the answer and worked solution →As interest rates rise, the quantity of money people wish to holdRead the answer and worked solution →A general rise in the price level means the purchasing power of money hasRead the answer and worked solution →Jan Dhan accounts and Aadhaar-enabled payment systems are steps towardsRead the answer and worked solution →With a CRR of 20 per cent and an initial deposit of Rs 100, how much can the bank lend in the first round?Read the answer and worked solution →

Worked practice questions

In social accounting, public enterprises such as Post Offices and railways are classified under which sector?

  1. The government sector
  2. The capital sector
  3. The firms sector
  4. The rest of world sector
Show answer and solution

Correct answer: C. The firms sector

1. Social accounting divides the economy into five sectors: firms, households, government, rest of the world, and the capital sector. 2. Firms are all organisations that employ the factors of production to produce goods and services. 3. The government sector covers the economic transactions of public bodies at the centre, state and local levels, whose main function is to provide social goods such as defence, public health and education. 4. The textbook states explicitly that public enterprises like Post Offices and railways are separated from the government sector and included as firms. 5. The capital sector is separate again, covering saving and investment activities and the transactions of banks, insurance corporations and financial houses. _Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 2 "National Income", §2.8.1_

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Pop what this year's GDP counts

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Other terms
  1. Resale of old flat
  2. Pension payment
  3. Scholarship money
  4. Capital gain
  5. A gift of money
Matching terms
  1. New apartment rent
  2. Bread for a family
  3. A new factory
  4. Value added output
Instructions
Pop only the items produced in the current year, and let everything else float past untouched.
_Source: Qallery verified question bank, Karnataka PUC II, topic national_income_accounting_

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Fill the money multiplier chain

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Missing parts
  1. Answer
    20 percent
    Choices
    1. 20 percent
    2. 10 percent
    3. 40 percent
  2. Answer
    five
    Choices
    1. two
    2. five
    3. ten
  3. Answer
    five hundred
    Choices
    1. two hundred
    2. one thousand
    3. five hundred
Complete the statement
With a cash reserve ratio of {0}, the money multiplier is {1}, so one hundred rupees of reserves can support deposits of {2} rupees.
Instructions
Tap the right value for each blank to complete the sentence about the money multiplier.
_Source: Qallery verified question bank, Karnataka PUC II, topic money_and_banking_

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Current Challenges Facing Indian EconomyGovernment Budget and the EconomyDetermination of Income and EmploymentOpen Economy MacroeconomicsIndian Economy on the Eve of Independence & ReformsMoney and BankingNational Income Accounting