Practice paper class 12th Economics Mp Board With answer

Practice Paper Class 12th Mp Board Economics with answer. 

Question 1. Choose the correct option and write-

(i) With rise in coffee price the demand of tea is-

(a) Rises 

(b) Falls 

(c) Remain Stable 

(d) becomes zero

Ans: a. Rises

(ii) Which of the following is an example of complementary good?

(A) Tea and Coffee

(B) Coke and Pepsi

(C) Rice and Wheat

(D) Car and Petrol

Ans.D. Car and Petrol

(iii) The main object of an socialist economy is -

(a) Maximum production

(b) Economic freedom

(c) Earning profit

(d) Maximum public welfare

Ans: d. Maximum public welfare

(iv) Utility can be measured by-

(a) money

(b) example of goods

(c) weight of the thing

(d) morality

Ans: a. Money

(v) In which economy decisions are taken on the basis of price mechanism-

(a)Socialist

(b)Capitalist

(c)Mixed

(d)Both A and B

Ans: b. Capitalist

(vi) When marginal utility is zero, then total utility is-

(a) stable

(b) Positive

(c) Negative

(d) Zero

Ans: a. Stable

Question 2. Fill in the blanks-

(i) Short run production function is called the law of....... proportion.

(ii) Returns to scale are associated with......run period.

(iii) In long run, all the factors of production may be....

(iv) es= 0 means that elasticity of supply is.........

(v) The shape of average cost curve is…………..

(vi) In cost function, cost is a function of...

Ans: (I) Variable (ii) long (iii) Variable (iv) Inelastic (v) U  (v) Production

Question 3.Write true/false-

(i) John Minard Keynes British economist was born in 1993.

(ii) GNP is a national concept.

(iii) Net investment = Gross investment value - depreciates.

(iv) In a very short period supply is complete and inelastic.

(v) in perfect competition Firm is price maker.

(vi) Market Price is Found in Long Run Market.

Ans: (I) False. (ii) True (iii) True (iv) True (v) false (vi) false

Question 4. Make the correct pair- 

        A                                                      B

(i)NDP.                                                  (a) Net National Product

(ii) NNP.                                                (b) Net Domestic Production

(iii) Central Bank.                              (c) Gross Domestic Production

(iv) Commercial Bank.                     (d) RBI

(v) Durable Goods.                            (e) Lyrical concept

(vi) Flow.                                            (f) SBI

(vii) Difficulty of barter system.   (g) Refrigerator

                                                            (h) absence of coincidence

Ans: (I) b, (ii) a, (iii) d, (iv) f, (v) g, (vi). e,   (vii) h.

Question 5. Write the answer in one sentence-

(i) Write the full form of MPC.

(ii) What is consumption function?

(iii) What is average consumption propensity to consume.

(iv) What is average propensity to save?

(v) What is GST?

(vi) Which items are included in balance of payments?

(vii) Which items are included in balance of trade?

Ans: 

(I) Marginal Propensity to consume. 

(ii). Shows relationship between total consumption expenditure and total Income.

(iii) shows ratio between total consumption and total Income.

(iv) shows relation between total Income and Total saving.

 (v) Goods and services tax.

(vi) Tangible and Intangible items both.

(vii) Tangible items