Subject:-Economics

DON BOSCO PUBLIC SCHOOL Marks:-30

Class:-XII Periodic Assessment (PA) I Class Test Time:-1hours

Que.No.1 Multiple choice questions (Marks 9)

1) Increase in the stock of capital is known as…………..
A) Capital loss b) capital formation C) capital gain d) none of this
2) Total national income divided by total population is known as?
a) Private income (b) Personal income (c) Personal spendable income (d) Per capita income.
3) Nominal GNP is the same as,
(a)GNP at constant prices (b)Real GNP (c)GNP at current prices (d)GNP less net factor income from abroad
4) Which of the following statements is associated with general equilibrium analysis?
(a) Equilibrium in the market of gold ornaments (b) Equilibrium across all markets in the economy
(c) Equilibrium price of a good in the competitive market (d) None of these
5) Capital goods are those goods:
(a) which are used in the production process for several years (b) which are used in the production process for few
years (c) which involve depreciation losses (d) both (a) and (c)
6) Reason for the circular flow of income is:
(a) government intervention (b) production of and services
(c) mutual interdependence of producer and household sector (d) invention of money
7)N A car running between Delhi and Agra at a speed of 120 km/h includes:
(a) only stock variables (b) only flow variables
(d) none of these (c) both a stock and a flow variable
8) When Nominal Gross Domestic Product (GDP) is ? 840 crore and price index is 120, then the Real Gross
Domestic Product (GDP) will be
(a) 700 crore (b) 900 crore (c) 800 crore( d) 500 crore
9) Which of the following statement is incorrect?
(a) Gross Domestic Product (GDP) at market price = GDP at factor cost+ Net indirect taxes
(b) Net National Product (NNP) at market price - N * NP at factor cost
(c) Gross National Product (GNP) at market price = GDP at market price plus Net factor income from
(d) Net National Product (NNP) at factor cost- National Income
Que.No.2 Answer in Details (Marks 9)
1) Distinguish between stock and flow variables with examples.
2) What are externalities? State its types with suitable examples.
3) Distinguish between intermediate and final goods and explain study of national income.
Que.no.3 Answer in briefly (Marks 12)
1) Explain the given statement. "Circular flow of income in a two-sector economy is based on the axiom that
one's expenditure is Or other's income." Support your answer with valid reasons.
2) "Gross Domestic Product (GDP) is not the best indicator of the economic welfare of a country." Defend or
refute the given statement with valid reasons.
3) State the significance of circular flow model.

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