CBSE Guess > Papers > Important Questions > Class XII > 2011 > Economics > Economics By Mr. Pranab Sharma

CBSE CLASS XII

Economics (Revision/Self Assessment test)

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21. The figure above shows the PPFs for Jack and Jill. Jack's PPF
    A) is also his marginal benefit curve.
    B) is also his marginal cost curve.
    C) shows the tradeoffs Jack faces between gallons of soda and gallons of bottled water.
    D) becomes the line labeled A after Jack trades with Jill.
    E) becomes non-existent after Jack trades with Jill.
22. Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?
    A) The benefit the three students receive must be the same because they all make the same choice.
    B) The students made a rational choice as long as they face no scarcity.
    C)The students could each have different opportunity costs.
    D) The marginal cost of the decision is the same if they make the same score on the exam.
    E) Going out to eat, playing football, and watching TV are all called sunk costs.

23. Which of the following is true regarding a normative statement?

    i. It uses the ceteris paribus assumption.
    ii. It is a value judgment.
    iii. It accounts for opportunity costs.

    A) i and iii.
    B) ii and iii.
    C) i only.
    D) ii only.
    E) i, ii, and iii.
24. To help unscramble cause and effect, economists
    A) use the concept of opportunity costs.
    B) must use the ceteris paribus assumption.
    C) answer the "what" question.
    D) answer the "how" question.
    E) must use normative statements.
25. Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."
    A) This is a normative statement.
    B) The federal government does not face scarcity.
    C) This topic would be studied in microeconomics.
    D) Social interest must always be more important than self-interest.
    E) Ceteris paribus does not apply to the government.
26. If a product becomes more popular and consumers want more produced, which of the following best describes what happens to move more factors of production into that industry?
    A) An agency of the Federal government directs the movement of factors.
    B) The chief executive officers or presidents of corporations require that factors leave one industry and move to the other industry.
    C) Factor owners voluntarily move their factors because they want to satisfy the interests of consumers.
    D) Wages, rent, interest, and profit increase in that industry, thereby giving factors the incentive to move to that industry.
    E) Consumers increase their demand for the products and, as a result, the taxes the producers must pay decrease enabling the producers to hire more factors of production.
27. What determines the income flows that households receive?
    A) an agency of the Federal government
    B) what they choose to produce, how much is sold, and the price received when sold
    C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold
    D) financial institutions such as banks
    E) what they choose to consume

28. What determines the revenue flows received by businesses?
    A) an agency of the Federal government
    B) what they choose to produce, how much is sold, and the price received when sold
    C) their ownership of factors of production, how much they sell in the factor markets, and the prices received when sold
    D) financial institutions such as banks
    E) what they pay the factors of production they employ
29. If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then
    A) the equilibrium price definitely rises.
    B) the equilibrium price definitely falls.
    C) the equilibrium price definitely remains the same.
    D) More information is needed to determine the effect on the equilibrium price.
    E) the equilibrium quantity definitely increases.
30. If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, then
    A) the equilibrium quantity definitely increases.
    B) the equilibrium quantity definitely decreases.
    C) the equilibrium quantity definitely remains the same.
    D) More information is needed to determine the effect on the equilibrium quantity.
    E) the equilibrium price definitely falls.

 

Submitted By Mr. Pranab Sharma
Email Id : [email protected]