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.