Class 12 Economics MCQ Important Question Answer solution with pdf. Here We Provides Class 1 to 12 all Subjects NCERT Solution with Notes, Question Answer, CBSE and HBSE Important Questions, MCQ and old Question Papers for Students.
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HBSE ( Haryana Board ) Solution of Class 12 Economics MCQ important Question And Answer solution for 2025 exams.
HBSE Class 12 Economics MCQ Important Question 2025
Macro Economics
HBSE Class 12 Economics Chapter 1 – Introduction MCQ Important Questions 2024-25
1. Which of the following is not a macro elements ?
(A) Business cycle
(B) Consumer equilibrium
(C) Firm equilibrium
(D) Both (B) & (C)
Ans – (D) Both (B) & (C)
2. Which of the following is not a macroeconomic factor ? Most Important
(A) Aggregate demand
(B) National Income
(C) Trade Cycles
(D) Consumer Equilibrium
Ans – (D) Consumer Equilibrium
3. Which of the following is a macro variable ? Most Important
(A) Elasticity of demand
(B) Price of a commodity
(C) Consumer equilibrium
(D) National income
Ans – (B) Price of a commodity
4. Which of the following statement fits well with macro-economics? Most Important
(A) Study of national income
(B) Scarcity and choice are studied
(C) Private production is promoted
(D) None of these
Ans – (A) Study of national income
5. Which of the following is a macro variable? Most Important
(A) Theory of employment
(B) Price elasticity
(C) Theory of rent
(D) Price of a commodity
Ans – (D) Price of a commodity
6. International Trade is studied in:
(A) Micro Economics.
(B) Macro Economics
(C) Public Economics
(D) None of these
Ans – (B) Macro Economics
7. The year of World’s Great Depression is: Most Important
(A) 1927
(B) 1929
(C) 1931
(D) 1936
Ans – (B) 1929
8. The Price Theory is known as:
(A) Microeconomics
(B) Macroeconomics
(C) Public Finance
(D) Price control
Ans – (A) Microeconomics
9. The Keynesian school of thought advocates: Most Important
(A) Mixed economy
(B) Government control on economy
(C) Free economy
(D) All of these
Ans – (C) Free economy
10. According to Keynesian equality between AD and AS can take place in a situation of:
(A) Less than full employment
(B) Full employment
(C) Beyond full employment
(D) None of these
Ans – (A) Less than full employment
11. Which of the following is External Economies ?
(A) Technical Economies
(B) Managerial Economies
(C) Labour Economies
(D) None of the above
Ans – (D) None of the above
12. Which of the following is an external economies? Most Important
(A) Technical Economies
(B) Managerial Economies
(C) Economies of Risk
(D) Economies of Information
Ans – (D) Economies of Information
HBSE Class 12 Economics Chapter 2 – National Income Accounting MCQ Important Questions 2024-25
1. In India National Income is calculated by:
(A) Central Statistics Organisation
(B) Reserve Bank of India
(C) National Sample Survey Organization
(D) All of these
Ans – (B) Reserve Bank of India
2. Which of the following is not a method of calculating national income ? Most Important
(A) Income method
(B) Import-Export method
(C) Expenditure method
(D) Product method
Ans – (B) Import-Export method
3. As a result of double counting National Income is: Most Important
(A) Overestimated
(B) Underestimated
(C) Correctly estimated
(D) All of the above
Ans – (A) Overestimated
4. Which of the following will not be included in the National Income ?
(A) Domestic Services
(B) Intermediate Goods
(C) Transfer Income
(D) All of the above
Ans – (D) All of the above
5. National Income is studied in:
(A) Macro Economics
(B) Micro Economics
(C) Public Economics
(D) None of these
Ans – (A) Macro Economics
6. Which of the following is not included in national income ?
(A) Domestic services
(B) Intermediate services
(C) Transfer income
(D) All of the above
Ans – (C) Transfer income
7. The quantity measured in a certain time period is called:
(A) Goods
(B) Flow
(C) Stock
(D) None of these
Ans – (C) Stock
8. Net investment is equal to: Most Important
(A) Gross investment + Depreciation
(B) Gross investment – Depreciation
(C) Gross investment × Depreciation
(D) Gross investment ÷ Depreciation
Ans – (B) Gross investment – Depreciation
9. When marginal production decreases then what is position of total production ?
(A) Maximum
(B) Constant
(C) Increase at the decreasing rate.
(D) None of the above
Ans – (C) Increase at the decreasing rate.
10. When marginal production is zero, then total production will be : Most Important
(A) Zero
(B) Negative
(C) Maximum
(D) None of these
Ans – (C) Maximum
11. Which of the following is not included in final consumption expenditure? Most Important
(A) Private final consumption expenditure
(B) Government final consumption expenditure
(C) Expenditure on construction
(D) None of these
Ans – (C) Expenditure on construction
12. The basic difference between the concepts of market price and factor cost is:
(A) direct taxes
(B) indirect taxes
(C) subsidiaries
(D) net indirect taxes
Ans – (D) net indirect taxes
13. Which of the following is direct tax ? Most Important
(A) Custom duty
(B) Sales tax
(C) Excise duty
(D) Income tax
Ans – (D) Income tax
14. Which of the following means ‘Net Indirect Tax’ ?
(A) Direct tax – subsidy
(B) Indirect tax + subsidy
(C) Indirect tax – subsidy
(D) None of the above
Ans – (C) Indirect tax – subsidy
15. Which of the following is not an example of direct tax ?
(A) Corporate Tax
(B) Wealth Tax
(C) Service Tax
(D) Income Tax
Ans – (C) Service Tax
16. Which of the following method deals with the problem of double counting? Most Important
(A) Income Method
(B) Expenditure Method
(C) Product Method
(D) All of the above
Ans – (C) Product Method
17. Which of the following is a flow variable ?
(A) Consumption
(B) Wealth
(C) Quantity of money
(D) None of these
Ans – (A) Consumption
18. Which of the following is not a flow variable ?
(A) Salary
(B) Monthly fees
(C) Wealth
(D) None of these
Ans – (C) Wealth
19. “Supply creates its own Demand.” Who said this statement ?
(A) Marshall
(B) Keynes
(C) J. B. Say
(D) Robbins
Ans – (C) J. B. Say
20. Market price is determined in:
(A) Shortrun
(B) Very Shortrun
(C) Longrun
(D) Very Longrun
Ans – (A) Shortrun
21. Assertion (A): Factor Income is earned income.
Reason (R): Domestic Income includes net factor income from abroad.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Ans – (C) Assertion (A) is true, but Reason (R) is false.
22. Assertion (A): Scholarship is a Revenue Expenditure.
Reason (R): Scholarship does not lead to creation of any asset.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Ans – (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
HBSE Class 12 Economics Chapter 3 – Money and Banking MCQ Important Questions 2024-25
1. What are the primary function of money in the following? Most Important
(A) Medium of exchange
(B) Unit of value
(C) Both (A) and (B)
(D) Transfer of value
Ans – (C) Both (A) and (B)
2. Primary or main function of money is:
(A) Medium of Exchange
(B) Standard of Deferred Payment
(C) Distribution of National Income
(D) All of these
Ans – (A) Medium of Exchange
3. In which year the Reserve Bank of India (RBI) was established? Most Important
(A) 1905
(B) 1920
(C) 1935
(D) 1951
Ans – (C) 1935
4. A commercial bank is bank that:
(A) gives long term loans
(B) creates credit
(C) gives short term loans
(D) All of the above
Ans – (D) All of the above
5. Which bank is authorised to issue currency ? Most Important
(A) Central Bank
(B) Commercial Bank
(C) Co-operative Bank
(D) None of these
Ans – (A) Central Bank
6. Who issues ‘One rupee note’ in India? Most Important
(A) Reserve Bank of India.
(B) Government of Haryana
(C) President
(D) Government of India
Ans – (D) Government of India
7. Barter system refers to that system wherein :
(A) Goods are exchanged for goods
(B) Goods are not exchanged for goods
(C) Goods are exchanged for metals
(D) All of the above
Ans – (A) Goods are exchanged for goods
8. The Opportunity Cost means: Most Important
(A) Cost of next alternative use
(B) Real Cost
(C) Total Cost
(D) None of these
Ans – (A) Cost of next alternative use
HBSE Class 12 Economics Chapter 4 – Determination of Income and Employment MCQ Important Questions 2024-25
1. Choose the correct formula:
(A) APC = ΔC ÷ ΔY
(B) APC = ΔΥ ÷ ΔC
(C) APC = Y ÷ C
(D) APC = C ÷ Y
Ans – (D) APC = C ÷ Y
2. Choose the correct equation formula:
(A) APC = ΔC / ΔΥ
(B) MPC = 1 / 1-APC
(C) K = 1 / 1-MPC
(D) K= 1 / 1-MPS
Ans – (C) K = 1 / 1-MPC
3. Average consumption propensity =
(A) C ÷ Y
(B) ΔC ÷ ΔY
(C) ΔY ÷ ΔC
(D) Y ÷ C
Ans – (B) ΔC ÷ ΔY
4. Average propensity to save (APS) =
(A) Y ÷ S
(B) ΔΥ ÷ ΔS
(C) S ÷ Y
(D) ΔS ÷ ΔY
Ans – (C) S ÷ Y
5. If MPC = 0.5, then the value of multiplier (K) will be: Most Important
(A) 1
(B) 6
(C) 2
(D) 4
Ans – (C) 2
6. If MPC = 0.8, then the value of multiplier will be : Most Important
(A) 1
(B) 2
(C) 4
(D) 5
Ans – (D) 5
7. If MPC = 1, multiplier will be : Most Important
(A) Zero
(B) One
(C) Two
(D) Infinity
Ans – (D) Infinity
HBSE Class 12 Economics Chapter 5 – Government Budget and the Economy MCQ Important Questions 2024-25
1. Financial Year is started from:
(A) 1st July
(B) 1st January
(C) 1st April
(D) None of these
Ans – (C) 1st April
2. Which of the following are the objectives of government budget?
(A) Redistribution of income and wealth
(B) Economic stability
(C) Both (A) and (B)
(D) Transforming of public enterprises into private sector
Ans – (C) Both (A) and (B)
3. Which of the following is a Capital receipt?
(A) Tax Revenue
(B) Income from Government Investment
(C) Fees and Penalty Amount
(D) Borrowing
Ans – (D) Borrowing
4. Primary Deficit =
(A) Fiscal Deficit – Interest Payment
(B) Fiscal Deficit + Interest Payment
(C) Fiscal Deficit ÷ Interest Payment
(D) Fiscal Deficit x Interest Payment
Ans – (A) Fiscal Deficit – Interest Payment
5. The objective of progressive taxation is: Most Important
(A) Addition to taxes
(B) Equitable distribution of sacrifice
(C) Restriction on harmful consumption
(D) None of these
Ans – (B) Equitable distribution of sacrifice
6. Which of the following is a non-tax receipt?
(A) Gift tax
(B) Sales tax
(C) Gifts and Grants
(D) All of the above
Ans – (D) All of the above
7. Inflationary gap measures which of the following ?
(A) Deficient demand
(B) Propensity to invest
(C) Excess demand
(D) Propensity to save
Ans – (C) Excess demand
8. In case of excess demand which of the following is correct?
(A) AD > AS
(B) AD < AS
(C) AD = AS
(D) AD x AS
Ans – (A) AD > AS
9. Full employment refers to the situation wherein AD = AS and S = I and there not exists:
(A) Involuntary unemployment
(B) Low wage rate
(C) Low level of output
(D) Low income
Ans – (A) Involuntary unemployment
10. Assertion (A): Any point outside the budget line represents non-attainable combinations.
Reason (R): In a situation of equilibrium the indifference curve and budget line touches each other.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Ans – (B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
HBSE Class 12 Economics Chapter 6 – Open Economy Macroeconomics MCQ Important Questions 2024-25
1. In which of the following categories are the Economic Transaction of Balance Payment divided:
(A) Visible items
(B) Invisible items
(C) Capital transfer
(D) All of the above
Ans – (D) All of the above
2. Bretton Woods system adopted from:
(A) 1944
(B) 1960
(C) 1994
(D) 1947
Ans – (A) 1944
3. Which of the following is not included in balance of trade ? Most Important
(A) Import-Export of services
(B) Payment of interest and dividend among the countries
(C) Expenditure by the tourists
(D) All of the above
Ans – (A) Import-Export of services
4. Balance of trade is :
(A) Difference between import and export of goods
(B) Difference between import and export of service
(C) Difference between import and export of capital
(D) None of these
Ans – (A) Difference between import and export of goods
5. Balance of Payments includes: Most Important
(A) Visible items
(B) Invisible items
(C) Capital transfer
(D) All of the above
Ans – (D) All of the above
6. Balance of payments is always:
(A) Unfavourable
(B) Balanced
(C) Favourable
(D) None of these
Ans – (B) Balanced
Micro Economics
HBSE Class 12 Economics Chapter 1 – Introduction MCQ Important Questions 2024-25
1. According to Keynes, equilibrium between AD and AS can take place in a situation of:
(A) Less than full employment
(B) Full employment
(C) Beyond full employment
(D) All of the above
Ans – (D) All of the above
2. Which one is studied in Micro Economics?
(A) National Income
(B) Price determination of a good
(C) Agricultural problem in India
(D) Aggregate demand
Ans – (B) Price determination of a good
3. Which of the following is a study of micro-economics ? Most Important
(A) National income
(B) Aggregate demand
(C) Trade cycle
(D) Law of demand
Ans – (D) Law of demand
4. Which of the following is the study of micro- economics ? Most Important
(A) Aggregate demand
(B) National Income
(C) Trade Cycle
(D) Consumer Equilibrium
Ans – (D) Consumer Equilibrium
5. Which of the following is an example of micro-economic variable ?
(A) National income
(B) Firm’s production
(C) Price level
(D) None of these
Ans – (B) Firm’s production
6. Origin of economic problem involves besides scarcity of resources:
(A) Two uses
(B) Three uses
(C) Alternative uses
(D) None of these
Ans – (C) Alternative uses
7. Economic Problem is related to: Most Important
(A) Poverty
(B) Unemployment
(C) Black money
(D) Choice of scarce means
Ans – (D) Choice of scarce means
8. Wants are:
(A) Unlimited
(B) Limited
(C) Negligible
(D) None of these
Ans – (A) Unlimited
9. Human wants are: Most Important
(A) Unlimited
(B) Limited
(C) Negligible
(D) None of these
Ans – (A) Unlimited
10. Slope of production possibility curve is:
(A) Convex to point of origin ‘O’
(B) Concave to point of origin ‘O’
(C) A straight line
(D) None of these
Ans – (B) Concave to point of origin ‘O’
11. Means are:
(A) Limited
(B) Unlimited
(C) Negligible
(D) All of these
Ans – (A) Limited
12. Who has given the material welfare definition of economics?
(A) Adam Smith
(B) Peterson
(C) Dr. Marshall
(D) None of these
Ans – (C) Dr. Marshall
13. Writer of ‘Principles of Economics’ is:
(A) Malthus
(B) Marshall
(C) Adam Smith
(D) Samuelson
Ans – (B) Marshall
14. Which of the following is not a central problem of an economy ?
(A) What to produce?
(B) For whom to produce?
(C) How to achieve fuller utilization of resources?
(D) The problem of poverty and unemployment.
Ans – (D) The problem of poverty and unemployment.
15. If the efficiency of the resources of a country improved then what will be the positions of the Production Possibility Curve?
(A) Production possibility curve will shift upwards to the right.
(B) Production possibility curve will shift downwards to the left.
(C) Production possibility curve will not change.
(D) All the above are correct.
Ans – (A) Production possibility curve will shift upwards to the right.
16. If the efficiency of the resources of a country decline then what will be the positions of the Production Possibility Curve ?
(A) Production possibility curve will shift downwards to the left.
(B) Production possibility curve will shift upwards to the right.
(C) Production possibility curve will not change.
(D) All of the above are correct.
Ans – (A) Production possibility curve will shift downwards to the left.
HBSE Class 12 Economics Chapter 2 – Theory of Consumer Behaviour MCQ Important Questions 2024-25
1. Indifference curve is to the origin: Most Important
(A) Concave
(B) Convex
(C) Straight line
(D) None of these
Ans – (B) Convex
2. Marginal Utility can be: Most Important
(A) Positive
(B) Negative
(C) Zero
(D) All of the above
Ans – (D) All of the above
3. When demand curve is parallel to OY, the price elasticity of demand will be: Most Important
(A) Infinite
(B) Zero
(C) Equal to Unitary
(D) Less the Unitary
Ans – (B) Zero
4. When the demand curve is parallel to OX-axis, then price elasticity of demand is: Most Important
(A) Unity
(B) More than unity
(C) Zero
(D) Infinity
Ans – (D) Infinity
5. How many degrees, the price elasticity of demand have ? Most Important
(A) Seven
(B) Five
(C) Twelve
(D) Two
Ans – (B) Five
6. Price of Ice-cream is studies in:
(A) Macro Economics
(B) Micro Economics
(C) Public Economics
(D) None of these
Ans – (B) Micro Economics
7. The unit elasticity of demand on a straight line demand curve will be :
(A) At mid point
(B) Over mid point
(C) Below mid point
(D) At the each point of demand curve
Ans – (A) At mid point
8. If 18% rise in price causes 27% rise in supply, then elasticity of supply will be:
(A) 1.5
(B) 0.5
(C) 3.5
(D) 2.5
Ans – (A) 1.5
9. Demand of car and petrol is called: Most Important
(A) Complementary
(B) Substitution
(C) Unit
(D) Zero
Ans – (A) Complementary
10. Demand of Shoes and Shocks are called:
(A) Substitute
(B) Complementary
(C) Unitary
(D) Luxury
Ans – (A) Substitute
11. Rise in demand is caused by: Most Important
(A) Fall in price of complementary goods
(B) Rise in the income of the consumer
(C) Rise in the price of substitute goods
(D) All of the above
Ans – (D) All of the above
12. When percentage change in demand is more than percentage change in price, demand is:
(A) inelastic
(B) elastic
(C) perfectly inelastic
(D) unitary elastic
Ans – (B) elastic
13. The slope of demand curve is:
(A) positive
(B) negative
(C) parallel to OX-axis
(D) parallel to OY-axis
Ans – (D) parallel to OY-axis
14. In case of Giffen goods, the slope of demand curve is: Most Important
(A) Positive
(B) Negative
(C) Parallel to OX-axis
(D) Parallel to OY-axis
Ans – (A) Positive
15. Under which market form, demand curve for a firm is a horizontal straight line ?
(A) Monopoly
(B) Perfect competition
(C) Monopolistic competition
(D) Oligopoly
Ans – (B) Perfect competition
16. If the demand curve of a firm is compatible with market demand curve, then :
(A) Firm is price taker
(B) Firm is a monopoly firm
(C) Firm can fix any price without restriction
(D) MR is equal to AR
Ans – (A) Firm is price taker
17. The law of demand applies to:
(A) Normal goods
(B) Giffen goods
(C) Articles of distinction
(D) All of the above
Ans – (D) All of the above
18. On which commodities law of demand is applicable ? Most Important
(A) Giffen goods
(B) Normal goods
(C) Substitution goods
(D) Articles of distinction
Ans – (B) Normal goods
19. Which of the factors lead to decrease in Supply ? Most Important
(A) Fall in input price
(B) Increase price of other goods
(C) Increase in excise tax rate
(D) None of these
Ans – (C) Increase in excise tax rate
20. Which pair of the following goods is the example of substitute goods ?
(A) Car and Petrol
(B) Coffee and Milk
(C) Limca, Pepsi Cola
(D) All of the above
Ans – (C) Limca, Pepsi Cola
21. Which of the following is a wrong equation?
(A) MU = ΔTU / ΔQ
(B) TU = ΣMU
(C) MU = TU / Q
(D) MU = TUn -TUn-1
Ans – (C) MU = TU / Q
22. “The Laws of Returns’ are studied under the theory of:
(A) Demand
(B) Price determination
(C) Factor pricing
(D) Production
Ans – (D) Production
HBSE Class 12 Economics Chapter 3 – Production and Costs MCQ Important Questions 2024-25
1. Which of the following is correct statement ?
(A) TP = AP × L
(B) AP = TP ÷ L
(C) Both (A) and (B)
(D) None of these
Ans – (C) Both (A) and (B)
2. When the level of output is zero, then total variable cost (TVC) is equal to:
(A) Total Cost (TC)
(B) Zero
(C) Total Fixed Cost (TFC)
(D) None of these
Ans – (C) Total Fixed Cost (TFC)
3. When average production increases, marginal product is:
(A) equal to average production
(B) more than average production
(C) less than average production
(D) zero
Ans – (C) less than average production
4. When level of Production is Zero then the Fixed Cost is:
(A) Positive
(B) Negative
(C) Zero
(D) Equal to Variable Cost
Ans – (A) Positive
5. Which is a fixed cost?
(A) Electricity bill
(B) Expenses on raw material
(C) Wages of daily workers
(D) Interest on fixed capital
Ans – (D) Interest on fixed capital
6. Which of the following is correct?
(A) TC = TFC × TVC
(B) TC = TFC ÷ TVC
(C) TC = TFC + TVC
(D) TC = TFC – TVC
Ans – (C) TC = TFC + TVC
HBSE Class 12 Economics Chapter 4 – The Theory of the Firm Under Perfect Competition MCQ Important Questions 2024-25
1. Under perfect competition the firm is in equilibrium, when : Most Important
(A) MC = TR
(B) MC = MR
(C) MC = TC
(D) AC = AR
Ans – (B) MC = MR
2. Under perfect competition, firm is:
(A) Price taker
(B) Price maker
(C) Both (A) and (B)
(D) None of these
Ans – (A) Price taker
3. Under perfect competition:
(A) MR curve is below AR curve
(B) Price AR = MR
(C) AR remains constant.
(D) Both (B) and (C)
Ans – (D) Both (B) and (C)
4. Choose the correct equation: Most Important
(A) AR = MR ÷ Q
(B) TR = AR ÷ Q
(C) MR = ΔTR ÷ ΔQ
(D) AR = TR x Q
Ans – (C) MR = ΔTR ÷ ΔQ
5. Choose the right/correct equation:
(A) TR = ΣAR
(B) TR = AR ÷ θ
(C) MR = ΔTR ÷ ΔQ
(D) AR = TR × Q
Ans – (C) MR = ΔTR ÷ ΔQ
6. Total Revenue ÷ Quantity (TR ÷ Q) =
(A) AR
(B) MR
(C) TQ
(D) None of these
Ans – (A) AR
7. Under which of the following conditions MR can be negative ?
(A) When AR is increasing
(B) When AR is decreasing
(C) When AR is constant
(D) In all the above conditions
Ans – (B) When AR is decreasing
8. When MR is zero, then :
(A) TR is minimum
(B) TR is zero
(C) TR is maximum
(D) TR is equal to MR
Ans – (C) TR is maximum
9. At break even point, profit and loss of the firm are: Most Important
(A) Zero
(B) Positive
(C) Negative
(D) None of these
Ans – (A) Zero
10. What is the shape of firm’s demand curve under monopoly ?
(A) Perfectly elastic
(B) Perfectly inelastic
(C) Less elastic
(D) More elastic
Ans – (C) Less elastic
11. Which of the following is a characteristic of the monopolistic competition ?
(A) One seller
(B) Homogeneous products
(C) Ban on freedom of entry and exit of firm
(D) Product differentiation
Ans – (D) Product differentiation
12. Under monopoly average revenue curve is:
(A) Downward sloping
(B) parallel to OY-axis
(C) parallel to OX-axis
(D) None of these
Ans – (A) Downward sloping
13. Supply curve is:
(A) slopes downward to the right
(B) parallel to OX-axis
(C) slopes upward to the right
(D) parallel to OY-axis
Ans – (C) slopes upward to the right
14. When the price of competitive good falls, its supply:
(A) does not change
(B) falls
(C) increases
(D) none of these
Ans – (B) falls
15. MC curve cuts AC curve, when : Most Important
(A) AC curve is falling.
(B) AC curve is rising.
(C) AC curve is minimum.
(D) None of these
Ans – (C) AC curve is minimum.
16. Selling costs has importance in which market ? Most Important
(A) Perfect Competition
(B) Monopoly
(C) Imperfect Competition
(D) None of these
Ans – (C) Imperfect Competition
17. Normal profits occurs, when : Most Important
(A) AR > AC
(B) AR = AC
(C) AR < AC
(D) TR > TC
Ans – (B) AR = AC
18. The process of charging different prices from different buyers for the same goods or service is called:
(A) Price extension
(B) Price contraction
(C) Price discrimination
(D) All of the above
Ans – (C) Price discrimination
19. Assertion (A): Supply and Quantity Supplied are similar concept.
Reason (R): Market Supply Schedule means the Supply Schedule of the entire industry.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true.
Ans – (D) Assertion (A) is false, but Reason (R) is true.
HBSE Class 12 Economics Chapter 5 – Market Equilibrium MCQ Important Questions 2024-25
1. Equilibrium point is the point at which the force of demand and supply :
(A) goes back and forth
(B) is not equal
(C) are equal
(D) Not work
Ans – (C) are equal
2. Consumer attains equilibrium when he gets: Most Important
(A) maximum income
(B) maximum loss
(C) maximum satisfaction
(D) none of these
Ans – (C) maximum satisfaction
3. In a situation of over full employment equilibrium :
(A) prices alone rise
(B) there is no increase in flow of goods and services
(C) aggregate demand is more than necessary full employment
(D) All of the above
Ans – (D) All of the above
4. Which of the following are components of aggregate supply ?
(A) Consumption
(B) Saving
(C) Both (A) & (B)
(D) None of these
Ans – (D) None of these
5. Disequilibrium in balance payments means:
(A) Surplus balance payments
(B) Deficit balance of payments
(C) Both (A) and (B)
(D) none of these
Ans – (C) Both (A) and (B)
6. Equilibrium point is that point at which:
(A) Demand > Supply
(B) Demand = Supply
(C) Demand < Supply
(D) None of these
Ans – (B) Demand = Supply
7. In which market a firm is price taker? Most Important
(A) Monopoly
(B) Perfect competition
(C) Monopolistic competition
(D) None of these
Ans – (B) Perfect competition