HBSE Class 12 Economics MCQ Important Questions 2025 PDF

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.

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


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