CUET Economics Chapter-National Income and Related Aggregates

Important MCQ Questions on CUET Economics Chapter-National Income and Related Aggregates with Detailed explanation

HT having an expert teacher of Economics prepared Important MCQ Questions on CUET Economics Chapter-National Income and Related Aggregates with Detailed explanations. All the Chapters in the syllabus of CUET Economics are covered with coverage of the entire syllabus. This page is prepared for Chapter-National Income and Related Aggregates and covers all important topics of the competitive exam CUET for domain subject test. Check out the chapter-wise CUET Economics MCQ questions. 

MCQ Questions for CUET Economics Chapter-National Income and Related Aggregates Set-1

Macroeconomic Economics - MCQ on National Income and Related Aggregates

Class XII

Q.1. Microeconomic studies

I. Aggregates of the economy

II. Individual economic unit

III. Demand and supply

IV. Economics of a country

Answer:

Individual economic unit

Explanation: Micro economics is the study of individual economic units

Q.2. What are the two main branches of economics?

I. Indian Economics and World economics

II. Micro and Macro Economics

III. Individual Economics and aggregate economics

IV. Macro Economics and world economics

Answer:

Micro and Macro Economics

Explanation: There are two branches of economics micro economics and macro economics. Micro economics is the study of individual economic units and while macro economics is a study of economy as a whole and its aggregates

Q.3. Scarcity and choice is

I. Separable

II. Inseparable

III. No relation

IV. Combined

Answer:

Scarcity and choice is inseparable

Exp. When the resources are scarce then choice has to be made from them.

Q.4. What are the main factors of production?

I. Rent, profit, wages and interest

II. Land, labour, capital and entrepreneurship.

III. Land, labour and entrepreneur

IV. Rent, dividend, salary and profit

Answer:

Land, labour, capital and entrepreneurship.

Exp. The main factors of production are Land, labour, capital and entrepreneurship and income earned from it is Rent, profit, wages and interest

Q.5. What is “Central- problem.” of an economy?

I. Poverty

II. Unemployment

III. Choice making

IV. Growth of resources

Answer:

Choice making

Exp. The problem of choice or decision-making is basic or central to all economies whether they are big or small, poor or rich, developed or under-developed.

Q.6. What do you mean by PPC curve

I. Product purpose curve

II. Production possibility curve

III. Production possible curve

IV. Possibility production curve

Answer:

Production possibility curve

Exp. Production possibility curve is a curve which shows all possible combinations of two goods that can be produced by making full use of given resources and technology.

Q.7. What is the reason for the PPC to shift right?

I. Increase in Demand

II. Depletion of resources

III. Technological advancement

IV. Decrease in supply

Answer:

technological advancement

Exp. The reason for the PPC to shift right is Growth of resources or technological advancement

Q.8. A lot of people die due to severe flood in a country. How will it affect the country’s PPC?

I. It will shift to right

II. It will shift to left

III. It will shift upwards

IV. It will shift downwards

Answer:

It will shift to left

Exp. People will die due to severe flood in a country then PPC curve of an economy will shift to left.

Q.9. PPC is also called

I. Transmission curve

II. Temporary curve

III. Transformation curve

IV. Transferable curve

Answer:

Transformation curve

Exp. It is also called a transformation curve as movement along this curve means producing more of one commodity by sacrificing some quantity of the other commodity. Thus, one commodity is transformed into the other not physically but by transforming resources to it.

Q.10. Growth of resources can be done by:

I. Advances in technology

II. Discovery of new reserves of oil or minerals

III. Improvement in labour force

IV. All

Answer:

All

Exp. Growth of resource can be done by technological resources increase in man power and invention of new resources.

Q.11. Production possibility curve always slopes

I. Upwards

II. Downwards

III. Left

IV. Right

Answer:

It slopes downwards.

Exp. Production possibility curve slopes downwards from left to right. It is because in a situation of full employment of the given resources, production of both the goods cannot be increased. More of one good will means less of the other. So the downward slope.

Q.12. The shape of PPC curve is

I. Convex

II. Concave

III. Congruent

IV. Parabola

Answer:

Concave

Exp. It is concave to the origin of PPC curve. Production Possibility curve is concave to the origin which shows the operation of the law of increasing marginal opportunity cost.

Q.13. What is cost of producing a commodity if the quantity of the other good is sacrificed?

I. Average Cost

II. Marginal Opportunity Cost

III. Total Oppurtunity cost

IV. Marginal cost

Answer:

Marginal Opportunity Cost

Exp. Marginal opportunity cost of producing a commodity (cloth) is the quantity of the other good (wheat) that has to be sacrificed. In the previous figure when we move from point A to B, opportunity cost of producing 1000 bales of cloth is 10 lake tones of wheat.

Q.14. What is the next best alternative

I. Marginal Cost

II. Opportunity cost

III. Average cost

IV. Total Cost

Answer:

Opportunity cost

Exp. The opportunity cost of any good is the next best alternative, which is sacrificed.

Q.15. What is production?

I. Change of goods into services

II. Change of input into intermediate goods

III. Transformation of inputs into outputs

IV. None

Answer:

Transformation of inputs into outputs

Exp. Production means change of input into final goods. Production means transformation of inputs into outputs by adding utility to it.

MCQ Questions for CUET Economics Chapter-National Income and Related Aggregates Set-2

Q.16 Human Wants are

I. Limited

II. Unlimited

III. Transferable

IV. Incomplete

Answer:

Unlimited

Exp. Human wants are unlimited. There is no end to them. We want hundreds of goods and services like food, milk clothes house, TV, Car furniture etc. when a particular want is satisfied another crops up. They also recur.

Q.17. What are the main problems of an economy

I. What to produce

II. When to produce

III. How to produce

IV. All

Answer:

All

Exp. All of them are the main problems of the economy When we produce more of one commodity it means we will be able to produce less of another so a question arise what to produce Same goods can be produced using different techniques. We can use more labour per unit of production and less capital or more capital and less labour. In an economy goods and services are produced for the consumption of the people who can buy them.

Q.18. What is market economy

I. Forces of goods and services

II. Forces of Income and employment

III. Forces of demand and supply

IV. Forces of production and consumption

Answer:

Forces of demand and supply

Exp. Market economies are those economies where the decision-making is left to the market forces of demand and supply.

Q.19. What is the prime consideration behind allocation of resources

I. Economic Welfare

II. Social Welfare

III. Profit Maximisation

IV. Increase in Income

Answer:

Social Welfare

Exp. Social welfare is the prime consideration behind allocation of resources.

Q.20. What is mixed Economy?

I. Combination of production units and consumption units

II. Exports and imports

III. Liberalization and globalization

IV. Combination of government and private sector

Answer:

Combination of government and private sector

Exp. When the public and private sector co-exist in an economy the it is called a mixed economy

Q.21. What is normative analysis?

I. Functions different mechanisms

II. Mechanisms are desirable or not

III. Kinds of mechanism

IV. Way of functioning

Answer:

Mechanisms are desirable or not

Exp. The mechanisms used to solve the problems of economy are reliable or not

Q.22. Taking the best utilization of resources is called

I. Utilization of resources

II. Economizing of resources

III. Consumption of resources

IV. None

Answer:

Economizing of resources

Exp. Optimum utilization of resources is called the economizing resources

Q.23.Which specific problem of an economy is studied in welfare economics?

I. Effectiveness in distribution

II. Efficiency in production and distribution

III. Welfare of goods and services

IV. Welfare of individual economic activity

Answer:

Efficiency in production and distribution

Exp. In welfare economics the production of commodities and its distribution is studied.

Q.24. Means have

I. Limited uses

II. Unlimited uses

III. Alternative uses

IV. Particular uses

Answer:

Alternative uses

Exp. Means have alternative uses Choice has to be made for different alternative uses

Q.25. New equipment comes under

I. Income

II. Resources

III. Production

IV. None

Answer:

Resources

Exp. New equipment are used as resources in production.

Q.26. What does it mean when PPC shifts upward?

I. Growth in Income

II. Growth of Resources

III. Decrease in Employment

IV. Economic Development

Answer:

Growth of Resources

Exp. When PPC curve if upward it directed show increase in resources.

Q.27. What is the tendency of marginal opportunity cost?

I. Increase

II. Decrease

III. Constant

IV. Parallel to x axis

Answer:

Increase

Exp. It is a tendency of margin opportunity cost to increase with the increase of product.

Q.28. Under which of branch of economic do we study the aggregate of the economics.

Micro Economics

Marco Economics

Total Economics

None

Answer:

Macro Economics

Exp. Macro Economics study the aggregate of economy.