Top 30+ CBSE Class 12 Economics MCQs for Board Exam 2024 with Answers to Secure Good Marks

CBSE Board Class 12 Economics MCQs (With Answers) 2024: The Central Board of Secondary Education (CBSE) is currently conducting the CBSE Class 12 board exams 2024. It has scheduled the CBSE Class 12 Economics Exam 2024 on March 18, 2024 from 10:30 AM to 1:30 PM. At this time, all the students who are to appear for the exam might be in dire need of study materials to boost their preparation for the exam. To assist you all in the process, we have brought to you CBSE Class 12 Economics MCQs along with a PDF download link of the same. Here, we will be providing you with the top 30 Multiple Choice Questions (MCQs) that can strengthen your preparation for the exam. 

CBSE Board Class 12 Economics MCQs With Answers 2024

Check the Top 30 Class 12 Economics MCQs along with their answers below.

1. For a closed economy (with no foreign trade), which one of the following is correct?

a) GDP = GNP

b) GDP > GNP

c) GDP < GNP

d) GDP + GNP=0

Answer. a) GDP = GNP

2. “The value of all goods and services can be expressed in monetary units.” On the basis of the given statement, identify the function performed by money:

a) Medium of exchange

b) Store of Value

c) Unit of account

d) Means of standard of deferred payments

Answer. c) Unit of account

3. Identify the correct reason(s) that may affect the demand for foreign exchange in an economy.

Imports of visible

Exports of Invisibles

Remittances by residents working abroad

Purchase of assets abroad

Alternatives:

1. a) I and II
2. b) II and III
3. c) III and IV
4. d) I and IV

Answer. d) I and IV

4. Graphically, Aggregate Demand function can be obtained by vertically adding the _________ and _________ function.(Choose the correct alternative to fill up the blanks)

a) consumption, saving

b) consumption, investment

c) investment, saving

d) aggregate supply, consumption

Answer. b) consumption, investment

5. Owing to the Russia-Ukraine crisis, the world is experiencing rising crude prices due to supply-side issues.’ Identify the most likely impact on the Balance of Payment situation of the Indian economy from the following:

a) Production of cars in India will rise.

b) Production and sale of cycles in India will rise.

c) Inflow of US Dollars in India will rise.

d) Outflow of US Dollars from India will rise.

Answer. d) Outflow of US Dollars from India will rise

6. Read the following statements carefully:

Statement 1: Export of financial services by India will be recorded on credit side of current account.

Statement 2: Foreign Direct Investments in India will be recorded on credit side of capital account. In the light of the given statements, choose the correct alternative:

a) Statement 1 is true and statement 2 is false

b) Statement 1 is false and statement 2 is true

c) Both statements 1 and 2 are true

d) Both statements 1 and 2 are false

Answer. c) Both statements 1 and 2 are true

7. If increase in National Income is equal to increase in consumption, identity the value of Marginal Propensity to Save :

a) Equal to unity

b) Greater than one

c) Less than one

d) Equal to zero

Answer. d) Equal to zero

8. Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Ex-post Investments represent planned Investments; whereas ex-ante Investments represent actual level of investments.

Reason (R): At equilibrium level, Ex-ante Savings and Ex-ante Investments are always equal.

Alternatives:

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

Answer. d) Assertion (A) is false but Reason (R) is true.

9. The scenario which would lead to an increase in GDP, but might not necessarily improve overall welfare?

a) Reduction in income inequality

b) Rapid growth of the financial sector

c) Expansion of environmentally harmful industries

d) Increased government investment in education and healthcare

Answer. c) Expansion of environmentally harmful industries

10. A positive balance in the Capital Account of the Balance of Payments of a country indicates that

a) trade balance is positive

b) currency is depreciating

c) it is experiencing a budget surplus

d) it is receiving more foreign investments than it is making abroad

Answer. d) it is receiving more foreign investments than it is making abroad

11. Identify which of the following is a source of non-institutional credit in the rural areas of India.
a) NABARD
b) Regional Rural Banks
c) Money Lenders
d) Commercial Banks
Answer. c) Money Lenders

12. _____________committee was set up for the development and promotion of small scale industries in India.
a) Karve
b) Tapas Majumdar
c) Mahalanobis
d) TRYSEM
Answer.a) Karve

13. Read the following statements carefully.
Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and practical experiences.
Statement 2: On-the-job trainings update the employees, with the latest changes in their work field.
In the light of the given statements, choose the correct alternative:

a) Statement 1 is true and statement 2 is false
b) Statement 1 is false and statement 2 is true
c) Both statements 1 and 2 are true
d) Both statements 1 and 2 are false
Answer. c)Both statements 1 and 2 are true

14. _________ is not the strategy for Sustainable Development.(Choose the correct alternative)

a) Use of bio-gas

b) Use of solar power

c) Use of thermal power

d) Use of hydel power

Answer. c) Use of thermal power

15. The main objective of China's One Child Policy, which was implemented from 1979 to 2016 was:

a) to provide financial incentives for families with multiple children

b) to promote gender equality by limiting the number of male children

c) to control the population growth and address overpopulation concerns

d) to encourage families to have more children and increase the population

Answer. c) to control the population growth and address overpopulation
concerns

To download CBSE Class 12 Economics MCQs with answers, click on the PDF below

Important Resources: 

CBSE Class 12 Economics Syllabus 2024

CBSE Class 12 Economics Sample Paper 2024

CBSE Class 12 Economics Practice Paper 2024