Economics Quiz CBSE Class 12th, 2020: Important Questions & Answers

As CBSE and HSC boards are coming close, students need to revise for their major exams. Here are a few economics-based questions and answers that will help the students to appear for their economics paper. Check all the economics questions below.

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Check out the economics quiz below:

1. As per the durability of consumer goods ------------ are used for more than one year.

Answer - Durable goods like air-conditioners, refrigerators are used for more than one year.

2. In the case of credit, money is?

Answer - When money value is greater than commodity value it is said as credit money.

3.  The estimated income receipts of the government in the budget of 2016-17 is 25000 crore and its estimated expenditure are Rs. 27,500 crore. The budget of the government is ---------?

Answer - So when expenses are more than receipts it shows case the negative balance. Hence, the estimated income receipts of the government in the budget of 2016-17 is? 25000 crore and its estimated expenditure are Rs. 27,500 crore. The budget of the government is in deficit.

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4.  The national income of a country is Rs. 80 crore and consumption expenditure are Rs. 64 crore. What will be the value of Average Propensity to Save (APS)?

Answer - Average propensity to consume (APC) = Consumption divided by income

Hence,

APC = 64 crore/ 80 crore

        = 0.80

The average propensity to save (APS) is the ratio of savings (S) to disposable income or APS = Savings / Disposable Income.

Therefore,

APS= Saving/0.80

      = 0.20

Average Propensity to Save (APS) = 0.20

5. What is meant by CRR Cash Reserve Ratio?

Answer - Cash Reserve Ratio is the fraction of total deposit kept with the banks.

6. Who regulates the money supply?

Answer - The money supply is regulated by the Reserve Bank of India.

7. Which amongst the following are the limitations of barter systems of exchange?

Answer - The limitations of barter systems of exchange are lack of divisibility, lack of store of value, lack of common measures of value.

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8. The level of household consumption demand in an economy is determined by the level of?

Answer - The level of household consumption demand in an economy is determined by the level of disposable income.

9. Which are the measures of meeting deficit in a budget, leads to an increase in money supply in the economy?

Answer - The measures of meeting deficit in a budget leads to an increase in money supply in the economy are disinvestment, the loan from World bank and deficit financing.

10. Unilateral transfers are included in ------?

Answer - Unilateral transfers are included in the current account of BoP

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