Students of class 12 Economics should refer to MCQ Questions Class 12 Economics Introduction to Macro Economics with answers provided here which is an important chapter in Class 12 Economics NCERT textbook. These MCQ for Class 12 Economics with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 12 Economics. The following MCQs can help you to practice and get better marks in the upcoming class 12 Economics examination

Chapter 7 Introduction to Macro Economics MCQ with Answers Class 12 Economics

MCQ Questions Class 12 Economics Introduction to Macro Economics provided below have been prepared by expert teachers of grade 12. These objective questions with solutions are expected to come in the upcoming Standard 12 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. The central problem of an economy is:
A. What to produce ?
B. How to produce ?
C. How to distribute produced goods ?
D. All of these

Question. Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
A. Microeconomics
B. Price theory
C. Factor price determination
D. Macroeconomics

Question. The deficiency of aggregate demand during depression period leads to
A. Seasonal unemployment
B. Voluntary unemployment
C. Involuntary unemployment
D.  Frictional unemployment 

Question. If factor cost is greater than Market price, then it means that:
A. Indirect taxes > subsidies
B. Indirect taxes = subsidies
C. Indirect Taxes < Subsidies
D. Indirect taxes = and > subsidies 

Question. Which among the following does not have the application of multiplier
A. Determination of income
B. Fiscal policy
C. Monetary policy
D. Foreign direct investment 

Question. What is the name of the book written by J.M. Keynes?
A. The Wealth of Nation
B. The General Theory of Employment, Interest, and Money
C. Political Economy
D. None of these 

Question. Which of the following is studied under Macro Economics ?
A. National Income
B. Full. Employment
C. Total Production
D. All of these 

Question. Broker’s commission on sale and purchase of second hand goods is included in national income because:
A. It is a part of compensation of employees
B. It is a part of GRoss Domestic Capital Formation
C. it is an income earned for rendering productive services
D. None of these 

Question. Study of aggregates is known as _________
A. Macroeconomics
B. Microeconomics
C. Price theory
D. Factor price determination 

Question. Economy may be classified as:
A. Capitalist
B. Socialist
C. Mixed
D. All of these 

Question. The reason for downward shape of production possibility curve is:
A. Increasing opportunity cost
B. Decreasing opportunity cost
C. Same opportunity cost
D. Negative opportunity cost 

Question. Multiplayer is the ratio of
A. change in income to change in investment
B. change in investment to change in income
C. change in income to change in interest
D. None of the above 

Question. Which one is inclded in National Income?
A. winning from lottery
B. milk purchase by a dairy shop
C. national debt interest
D. none of these.

Question. LM curve represents the combination of ;
A. price and out put
B. Demand for money and supply of money
C. income and investment
D. Money supply and nvestment 

Question . Who is known as the father of modern macroeconomics?
A. Adam Smith
B. J.M.Keynes
C. Samuelson
D. Hicks 

Question. Which of the following is studied under Micro Economics ?
A. Individual unit
B. Economic Aggregate
C. National Income
D. None of these 

Question. The basic factors of production are land, labour, capital, and _____.
A. Enterprise
B. Investment
C. Machinery
D. Resources

Question. Interest rates and bond prices are;
A. positively related
B. negatively related
C. not related
D. Either A or B 

Question. Under Keynesian model aggregate expenditure is measures along
A. Vertical axis
B. Horizontal axis
C. Vertical intercept
D. 450 line 

Question .When did the great depression occur?
A. 1929-30
B. 1934-35
C. 1938-39
D. 1941-42

Question. What is known as the study of individual units?
A. Macroeconomics
B. Microeconomics
C. Income and Employment Theory
D. Development economics 

Question. which of the following is not an economic activity and hence not included while estimating national income in india?
A. medical services rendered by a dispensary
B. a housewife doing household work
C. a lawyer doing his practice
D. a maid working full time with a family 

Question .When was the famous book of Prof. Keynes published?
A. 1930
B. 1931
C. 1936
D. 1940 

Question.“Economics is a science of logic.’’ Who said it ?
A. Hicks
B. Keynes
C. Robbins
D. Marshall 

Question. Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
A. Microeconomics
B. Price theory
C. Factor price determination
D. Macroeconomics

Question Macro-static equilibrium implies:
A. A complete absence of change
B. A change at an unchanged rate
C. A change in only absolute values
D. None of these 

Question .Under which type of activity would you categorise the sale of shares of another firm whilst preparing the cash flow statement?
A.Financing activity
B. Investing and financing
C. Operating activity
D. Investing activity 

Question. Who used the word ‘micro’ for the first time:
A. Marshall
B. Boulding
C. Keynes
D. Ragnar Frisch

Question.Which of the following is the salient feature of factors (or resources) ?
A. These are limited as compared to wants
B. These have alternative uses
C. Both (a) and (b)
D. None of the above 

Question Which of the following is NOT a flow variable?
A. Income
B. Wealth
C. Saving
D. Investment 

Question. National income is equal to:
A. Domestic product plus factor income earned from abroad
B. domestic product plus net factor income earned from abroad
C. Domestic product mins factor income earned from abroad
D. Domestic product plus export minus imports

Question. What is a good in economics
A. It is a service.
B. It can be a service.
C. It is something that appears appealing.
D. It is something that satisfies wants and needs. 

Question. Cotton yarns purchased by handloom worker is
A. An intermediate good
B. A consumer good
C. A capital good
D. None of these 

Question. Defects in SNA include
A. Neglects depletion of natural capital
B. Neglects environmental pollution
C. Expenditure to defend the effects of pollution
D. All of the above

Question. Which among the following is not a feature of Keynesian theory?
A. Short run
B. Wage price flexibility
C. Fiscal policy
D. Underemployment equilibrium 

Question. Under classical theory, rate of interest is determined by
A. Demand for money and supply of money
B. Demand for capital and supply of savings
C. Demand for investment and price level
D. Demand for investment and supply of money 

Question. In the classical view, the price level is determined by
A. aggregate supply
B. aggregate demand and supply
C. supply of money
D. aggregate demand

Question. Under Keynesian theory of income determination, investment
A. Depends on income
B. Endogenous
C. Exogenous
D. Depends on money supply 

Question. What is a good in economics
A. It is a service.
B. It can be a service.
C. It is something that appears appealing.
D. It is something that satisfies wants and needs. 

Question. Cotton yarns purchased by handloom worker is
A. An intermediate good
B. A consumer good
C. A capital good
D. None of these 

Question. Defects in SNA include
A. Neglects depletion of natural capital
B. Neglects environmental pollution
C. Expenditure to defend the effects of pollution
D. All of the above

Question. In the classical view, the price level is determined by
A. aggregate supply
B. aggregate demand and supply
C. supply of money
D. aggregate demand 

Question. Under Keynesian theory of income determination, investment
A. Depends on income
B. Endogenous
C. Exogenous
D. Depends on money supply

Question. The value of MPC in Keynesian model is:
A. greater than zero and less than one
B. MPC=1
C. MPC greater than one
D. None of the above 

Question. Which among the following is not a feature of Keynesian theory?
A. Short run
B. Wage price flexibility
C. Fiscal policy
D. Underemployment equilibrium 

Question. Under classical theory, rate of interest is determined by
A. Demand for money and supply of money
B. Demand for capital and supply of savings
C. Demand for investment and price level
D. Demand for investment and supply of money 

Question. Two sector economy consists of:
A. Households, firms
B. Households, Government
C. Firms, Foreign sector
D. Firms, Government. 

Question. Market price ad factor cost would be equal when there is:
A. no direct tax
B. no indirect tax
C. no subsidy
D. no indirect tax and no subsidy

Question. In which type of economy, domestic income is equal to national income?
A. OPen economy
B. Closed Economy
C. Both a and b
D. Neither a nor b 

Question. In the classical view, the price level is determined by
A. aggregate supply
B. aggregate demand and supply
C. supply of money
D. aggregate demand 

Question. Under Keynesian theory of income determination, investment
A. Depends on income
B. Endogenous
C. Exogenous
D. Depends on money supply 

Question. A laptop purchased by consumer is an example of
A. An intermediate good
B. A consumer good
C. Intermediate consumption
D. None of the above 

Question. Under Keynesian model aggregate expenditure is measures along
A. Vertical axis
B. Horizontal axis
C. Vertical intercept
D. 450 line 

Question. The value of MPC in Keynesian model is:
A. greater than zero and less than one
B. MPC=1
C. MPC greater than one
D. None of the above 

Question. Under classical theory, rate of interest is determined by
A. Demand for money and supply of money
B. Demand for capital and supply of savings
C. Demand for investment and price level
D. Demand for investment and supply of money 

Question. Cotton yarns purchased by handloom worker is
A. An intermediate good
B. A consumer good
C. A capital good
D. None of these 

Question. Defects in SNA include
A. Neglects depletion of natural capital
B. Neglects environmental pollution
C. Expenditure to defend the effects of pollution
D. All of the above 

Question .When was the famous book of Prof. Keynes published?
A. 1930
B. 1931
C. 1936
D. 1940

Question. What is known as the study of individual units?
A. Macroeconomics
B. Microeconomics
C. Income and Employment Theory
D. Development economics 

Question. Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
A. Microeconomics
B. Price theory
C. Factor price determination
D. Macroeconomics

Question. LM curve represents the combination of ;
A. price and out put
B. Demand for money and supply of money
C. income and investment
D. Money supply and nvestment 

Question. Who is known as the father of modern macroeconomics?
A. Adam Smith
B. J.M.Keynes
C. Samuelson
D. Hicks

Question. Multiplayer is the ratio of
A. change in income to change in investment
B. change in investment to change in income
C. change in income to change in interest
D. None of the above 

Question. Study of aggregates is known as _________
A. Macroeconomics
B. Microeconomics
C. Price theory
D. Factor price determination 

Question. The deficiency of aggregate demand during depression period leads to
A. Seasonal unemployment
B. Voluntary unemployment
C. Involuntary unemployment
D. Frictional unemployment 

Question. An increase in planned investment spending causes aggregate output to;
A. increase by an amount equal to the change in investment spending.
B. increase by an amount less than the change in investment spending.
C. increase by an amount greater than the change in investment spending.
D. decrease by an amount less than the change in investment 

Question. Which among the following does not have the application of multiplier
A. Determination of income
B. Fiscal policy
C. Monetary policy
D. Foreign direct investment

Question. Interest rates and bond prices are;
A. positively related
B. negatively related
C. not related
D. Either A or B 

Question. Broker’s commission on sale and purchase of second hand goods is included in national income because:
A. It is a part of compensation of employees
B. It is a part of GRoss Domestic Capital Formation
C. it is an income earned for rendering productive services
D. None of these 

Question. Economy may be classified as:
A. Capitalist
B. Socialist
C. Mixed
D. All of these 

Question. The reason for downward shape of production possibility curve is:
A. Increasing opportunity cost
B. Decreasing opportunity cost
C. Same opportunity cost
D. Negative opportunity cost

Question. The central problem of an economy is:
A. What to produce ?
B. How to produce ?
C. How to distribute produced goods ?
D. All of these 

We hope the above multiple choice questions for Class 12 Economics for Chapter 7 Introduction to Macro Economics provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Introduction to Macro Economics is an important chapter in Class 12 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 12 students. Please go through these and let us know if you have any feedback in the comments section.