Important questions with answers for CBSE Class 12 Economics Chapter 1 – Introduction to Macroeconomics, which is outlined by expert economics teachers from the latest version of CBSE (NCERT) books.
CBSE Class 12 Macro Economics Chapter-1 Important Questions
Question 1
What is a good in economics
a. It is a service.
b. It can be a service.
c. It is something that appears appealing.
d. It is something that satisfies wants and needs.
Answer: d. It is something that satisfies wants and needs.
Question 2
What is export?
Answer: Exports are the goods and services manufactured in one nation and bought by the residents of another nation. It does not matter what the good or service is. It can be shipped, sent by email, or carried in personal luggage on a ship or a plane. If it is manufactured domestically and traded to someone in a foreign country, then it is known as an export.
Question 3
Who is called the father of modern economics?
Answer: Adam Smith
| Important Topics in Economics: |
Question 4
Differentiate between microeconomics and macroeconomics.
Answer:
| Microeconomics | Macroeconomics |
| The individual economic unit is studied. | The aggregate economic unit is studied. |
| It deals with ascertainment of cost price and output in the individual markets. | It deals with ascertainment of general price and output in the whole economy. |
| Here, the main issues are ascertainment of price and allocation of resources. | Here, the main issues are ascertainment of income level and tackling unemployment in the economy. |
Question 5
What are Macroeconomics and Microeconomics? What is the association between the two?
Answer:
Macroeconomics, like a discrete part of economics, surfaced after the British economist, John Maynard Keynes issued and published his book, ‘The General Theory of Employment, Interest and Money in 1936. The ascendant thinking in economics before Keynes was that all the workers who are willing to work would find employment and all the plants (factories) will be functioning at their comprehensive capacity. This school of notion is known as the classical tradition.
Microeconomics is a branch of economics that contemplates the attributes of decision makers within the economy, such as households, individuals, and enterprises. The term ‘firm’ is generally used to refer to all sorts of trade. Microeconomics is distinct from the study of macroeconomics, which considers the economy as an entity.
Whilst these two studies of the subject economics appear to look different, they complement each other and are interdependent, since there are several overlapping issues between these two segments. For instance, raised inflation (macro effect) would be the reason for the increase in the price of raw materials.
Question 6
What is entrepreneurship?
Answer: The meaning of entrepreneurship includes an entrepreneur who takes actions to create a change in the world. Whether startup entrepreneurs solve an issue that many struggle every day and bring people together in a way no one has before, or build something revolutionary that advances society, they all have one thing in common: action.
Question 7
A resource is,
- Goods only
- Services only
- Goods or services
- Neither goods nor services
Answer: Good or a service
Question 8
Cash paid against trade payable belongs to which of the following?
a. No effect
b. Operating activities
c. Financing activities
d. Investing activities
Answer: b. Operating activities
Question 9
The basic factors of production are land, labour, capital, and _____.
a. Enterprise
b. Investment
c. Machinery
d. Resources
Answer: a. Enterprise
Question 10
Positive economics states which of the following?
a. What is supposed to be
b. Central problems of an economy
c. What is
d. What will be
Answer: c. What is
Question 11
Define Great Depression.
Answer: Economists usually attribute the beginning of the Great Depression to the sudden devastating collapse of the US stock market prices on October 29, 1929, known as Black Tuesday. However, a few conflicts have arisen and checked the stock crash as a symptom rather than a cause, which is known as the Great Depression.
Question 12
Interest received on investment will be
a. Added (Financing activities)
b. Deducted (Investing activities)
c. Added (Investing activities)
d. Deducted (Financing activities)
Answer: c. Added (Investing activities)
Question 13
What is an import?
Answer: An import is goods or services that are brought into one country from another. The word import is derived from the word ‘port’ since the commodities are often shipped via boat to the abroad countries. Along with the exports, imports form the backbone of international trade.
Question 14
Under which type of activity would you categorise the sale of shares of another firm whilst preparing the cash flow statement?
a. Financing activity
b. Investing and financing
c. Operating activity
d. Investing activity
Answer: d. Investing activity
Question 15
What is the name of the John Maynard Keynes celebrated book?
Answer: The name of the book is ‘The General Theory of Employment, Interest and Money’ which was published in the year 1936.
Also Check:Â Economics MCQs
Stay tuned to BYJU’S for more CBSE Class 12 Economics Important Questions, question papers, sample papers, syllabus and Commerce notifications.
It’s an amazing app for students .
It helps a lot ? in our doubts .