Important CBSE Class 12 Economics MCQs 2023 PDF: Check Chapter-wise Questions, and Answers for Quick Revision

CBSE Class 12 Economics Important MCQs 2023: According to the CBSE exam date sheet, class 12 Economics 2023 paper is scheduled for March 17, 2023. The paper will have various types of subjective and objective questions covering the syllabus of CBSE Class 12 Economics 2220-23. To get a good score on these questions a student should have a proper hold on the basics, terminologies and equations used in Economics. To help students learn fast and effectively for their upcoming class 12 Economics exam, we are providing here some of the important Economics MCQs. You can find the chapter-wise list of CBSE class 12 Economics MCQs covering major important topics. These MCQs are curated by the subject experts after analysing the latest exam pattern and the revised syllabus of CBSE Class 12 Economics. All the MCQs are provided with answers.

CBSE Class 12 Economics Chapter-wise Important MCQs

Part A: Introductory Macroeconomics

Unit 1: National Income and National Aggregates

Question 1: In an economy, the value of indirect taxes is Rs. 200 crore and value of net indirect taxes is (-) Rs.250 crores. Identify the value of subsidies

1. Rs. 50 Crore 
2. Rs. 450 Crore 
3. Rs. (-) 450 Crore 
4. Rs. 250 Crore

Answer: B

Question 2: Which of the following items are excluded from GNP measurement?

1. Purely financial transactions
2. Transfer of used goods and non-market goods and services
3. Illegal activities and the value of leisure
4. All of these

Answer: D

Question 3: Total national income divided by total population is known as:

1. Private income 
2. Personal income
3. Personal spendable income 
4. Per capita income.

Answer: D

Question 4: A car purchased by a household is a _________. (Choose the correct alternative)

1. single use capital good 
2. single use consumer good
3. durable consumer good 
4. semi-durable consumer good

Answer: C

Question 5: Nominal GNP is the same as,

1. GNP at constant prices 
2. Real GNP
3. GNP at current prices 
4. GNP less net factor income from abroad

Answer: C

Unit 2: Money and Banking

Question 1: When the central act as a banker to the government, what does it do?

1. It carries out government transactions
2. It advises on monetary and financial matters
3. It keeps accounts of the government
4. It carries out government transactions, advises on monetary and financial matters and keeps accounts of the government

Answer: D

Question 2: Which of the following is the supplier of money?

1. Government and banking system 
2. Cooperative societies
3. General public 
4. Life insurance corporation

Answer: A

Questions 3: Supply of money is a:

1. Flow variable 
2. Stock variable
3. Real flow 
4. None of these

Answer: B

Question 4: Identify qualitative measure of central bank:

1. Bank rate 
2. Open market operation
3. Margin Requirement 
4. Cash reserve ratio

Answer: C

Question 5: Which of the following is not a quantitative Method of Credit Control?

1. Open Market Operation 
2. Margin Requirements
3. Variable Reserve Ratio 
4. Bank Rate Policy

Answer: B

Unit 3: Determination of Income and Employment

Question 1: Excess demand in an economy may give birth to:

1. Deflationary gap 
2. Inflationary gap
3. Low level of employment 
4. excess capacity

Answer: B

Question 2: Desired consumption during an accounting year is called as:

1. ex-ante consumption 
2. ex-post consumption
3. Autonomous consumption 
4. None of these

Answer: A

Question 3: The value of multiplier is: ................

1. 1/ MPC 
2. 1/ MPS 
3. 1/ 1-MPS 
4. 1/ MPC-1

Answer: B

Question 4: If MPC is 0.5, the value of investment multiplier equals:

1. 4 
2. 2 
3. 1 
4. 0.2

Answer: B

Question 5: The value of investment multiplier lies between:

1. 0 and 1 
2. 0 and infinity
3. 1 and infinity 
4. None of these

Answer: C

Unit 4: Government Budget and the Economy

Question 1: Identify which of the following is not an example of tax revenue for the government. (Choose the correct alternative)

1. Wealth Tax
2. Special Assessments
3. Income Tax
4. Corporate Tax

Answer: B

Question 2: Identify the correct formula to calculate Fiscal Deficit.

1. Total expenditure - Total Receipt (other than borrowings)
2. Revenue Expenditure- Revenue Receipt
3. Capital Expenditure- Capital Receipt
4. Revenue Expenditure + Capital expenditure - Revenue Receipt.

Answer: A

Question 3: In a govt. budget, revenue deficit is Rs. 50000 crores and borrowings are Rs.75000 crores. The fiscal deficit will be:

1. Rs. 25000 crores
2. Rs.125000 crores
3. Rs.50000 crores
4. Rs.75000 crores

Answer: D

Question 4: Which of the following is Revenue expenditure?

1. Construction of school
2. Borrowings
3. Grants given to the state governments.
4. Loans given to the state governments

Answer: C

Question 5: Find out incorrect statement from the following:

1. A government budget is an estimation of receipts and expenditure for current year.
2. A government budget is an estimation of receipts and expenditure for next financial year.
3. Capital receipts decreases assets of the government.
4. Subsidies are not treated as capital expenditure of the government.

Answer: A

Unit 5: Balance of Payment

Question 1: .................. is the difference between value of goods sold to the rest of the world

and value of goods imported from rest of the world.

1. Balance of payment
2. Balance of trade
3. Balance of current account
4. Balance of capital account

Answer: B

Question 2: From the following which is not included in "Residents" in Balance of Payments transactions?

1. Firms
2. Foreign Military Personnel
3. Government agencies
4. Individuals
5. None of these

Answer: B

Question 3: In current account, when value of credit items are more than debt items, it

indicates net ............. of foreign exchange.

1. Asset
2. Liability
3. Inflow
4. Outflow

Answer: B

Question 4: Balance of Payments is a .......... concept.

1. Flow
2. Stock
3. Vibrant
4. Narrow

Answer: A

Question 5: 'Import of Machinery' is recorded in the ................ Account and 'Borrowings from

abroad' is recorded in the ............... account.

1. Current, Capital
2. Capital, Current
3. Capital, Capital
4. Current, Current

Answer: A

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