Class 12 Economics Practice Questions

Q1. Macroeconomics is concerned with: 📊

1. Behaviour of individual firms
2. The economy as a whole, including GDP and inflation
3. Pricing of specific goods
4. Individual consumer choices

Q2. Gross Domestic Product (GDP) measures: 📊

1. Population growth rate
2. Total exports of a country
3. Total value of goods and services produced in a country
4. Government tax revenue

Q3. The Green Revolution in India was primarily associated with: 📊

1. Forest conservation
2. Urban infrastructure development
3. Increased agricultural production using HYV seeds
4. Industrial growth

Q4. Inflation is defined as: 📊

1. Decrease in money supply
2. Fall in interest rates
3. Increase in exports
4. Sustained rise in the general price level

Q5. Which sector of the Indian economy employs the largest number of people? 📊

1. Technology sector
2. Agricultural sector
3. Industrial sector
4. Services sector

Q6. Aggregate demand is the total demand for goods and services in an economy at a given: 📊

1. Exchange rate
2. Price level
3. Level of taxation
4. Level of employment

Q7. The Reserve Bank of India (RBI) is responsible for: 📊

1. Manufacturing goods
2. Agriculture subsidies
3. Defence procurement
4. Monetary policy and currency issuance

Q8. Which five-year plan in India focused on self-reliance and growth? 📊

1. Third Five-Year Plan
2. First Five-Year Plan
3. Fifth Five-Year Plan
4. Fourth Five-Year Plan

Q9. The multiplier effect in economics refers to: 📊

1. How an initial spending change leads to a larger change in income
2. A decrease in investment leading to lower income
3. Proportional tax increase
4. Equal distribution of income

Q10. Which of the following is NOT a source of public revenue in India? 📊

1. Public borrowing
2. Household savings
3. Fees and fines
4. Taxes

Q11. The branch of economics that studies the economy as a whole (GDP, inflation) is:

1. Macroeconomics
2. Microeconomics
3. Sociology
4. Marketing

Q12. The total market value of all final goods and services produced in a country in a year is called:

1. GNP-per-day
2. GDP
3. EMI
4. IPO

Q13. A sustained general rise in the price level over time is called:

1. Deflation
2. Recession
3. Inflation
4. Devaluation

Q14. Which is the central bank of India?

1. SEBI
2. World Bank
3. IMF
4. Reserve Bank of India

Q15. The branch of economics that studies individual units like households and firms is:

1. Microeconomics
2. Macroeconomics
3. Statistics
4. Auditing

Q16. A market structure with only one seller is called:

1. Perfect competition
2. Monopoly
3. Monopsony
4. Oligopoly