
Conceptual understanding of all the topics is the most important part of preparation for an examination. CBSE Curriculum based Objective Questions from Class-VI to XII provide an excellent option to test your basic concepts.
The following Quiz consists of questions from NCERT Class XII Introductory Macroeconomics. Aspirants may practice these questions to have a revision of the fundamental concepts of the subject.
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- Answered
- Review
- Question 1 of 73
1. Question
Category: NCERTWhich of the following is a non-tax revenue?
Correctdividends
Incorrectdividends
- Question 2 of 73
2. Question
Category: NCERTThe primary deficit in a government budget is
CorrectFiscal deficit minus interest payment
IncorrectFiscal deficit minus interest payment
- Question 3 of 73
3. Question
Category: NCERTDirect tax is called direct because it is collected from the
Correctthe income earners
Incorrectthe income earners
- Question 4 of 73
4. Question
Category: NCERTThe primary deficit in a government budget will be zero, when
CorrectFiscal deficit is equal to interest payment
IncorrectFiscal deficit is equal to interest payment
- Question 5 of 73
5. Question
Category: NCERTWhich of the following is an indirect tax?
CorrectCustom duty
IncorrectCustom duty
- Question 6 of 73
6. Question
Category: NCERTWhich one of the following is a combination of direct taxes?
CorrectWealth tax and income tax
IncorrectWealth tax and income tax
- Question 7 of 73
7. Question
Category: NCERTWhich of the following statement is true?
CorrectBorrowings by the government represent a situation of fiscal deficit.
IncorrectBorrowings by the government represent a situation of fiscal deficit.
- Question 8 of 73
8. Question
Category: NCERTWhich of the following is not a revenue receipt?
CorrectRecovery of loans
IncorrectRecovery of loans
- Question 9 of 73
9. Question
Category: NCERTPrimary deficit is borrowing requirements of the government for payment(s)
Correctother than interest
Incorrectother than interest
- Question 10 of 73
10. Question
Category: NCERTWhich of the following sources of receipts in the government budget increases its liabilities?
CorrectBorrowings
IncorrectBorrowings
- Question 11 of 73
11. Question
Category: NCERTBorrowing in the government budget is
Correctfiscal deficit
Incorrectfiscal deficit
- Question 12 of 73
12. Question
Category: NCERTWhich of the following is a non-tax revenue?
CorrectDividends
IncorrectDividends
- Question 13 of 73
13. Question
Category: NCERTThe primary deficit in a government budget is
CorrectFiscal deficit minus interest payment
IncorrectFiscal deficit minus interest payment
- Question 14 of 73
14. Question
Category: NCERTDirect tax is called direct because it is collected from the
Correctthe income earners
Incorrectthe income earners
- Question 15 of 73
15. Question
Category: NCERTThe primary deficit in a government budget will be zero, when
CorrectFiscal deficit is equal to interest payment
IncorrectFiscal deficit is equal to interest payment
- Question 16 of 73
16. Question
Category: NCERTWhich one of these is a revenue expenditure?
CorrectSubsidies
IncorrectSubsidies
- Question 17 of 73
17. Question
Category: NCERTWhich one of the following is a combination of direct taxes?
CorrectWealth tax and income tax
IncorrectWealth tax and income tax
- Question 18 of 73
18. Question
Category: NCERTWhich of the following statement is true?
CorrectBorrowings by the government represent a situation of fiscal deficit.
IncorrectBorrowings by the government represent a situation of fiscal deficit.
- Question 19 of 73
19. Question
Category: NCERTRevenue deficit is the excess of capital received over the revenue receipts
CorrectRecovery of loans
IncorrectRecovery of loans
- Question 20 of 73
20. Question
Category: NCERTPrimary deficit is borrowing requirements of the government for payment(s)
Correctother than interest
Incorrectother than interest
- Question 21 of 73
21. Question
Category: NCERTWhich of the following sources of receipts in the government budget increases its liabilities?
CorrectBorrowings
IncorrectBorrowings
- Question 22 of 73
22. Question
Category: NCERTWhich of the following is an indirect tax?
CorrectCustom duty
IncorrectCustom duty
- Question 23 of 73
23. Question
Category: NCERTBorrowing in the government budget is
Correctfiscal deficit
Incorrectfiscal deficit
- Question 24 of 73
24. Question
Category: NCERTWhat is known as the study of individual units?
CorrectMicroeconomics
IncorrectMicroeconomics
- Question 25 of 73
25. Question
Category: NCERTThe study of aggregates is known as
CorrectMacroeconomics
IncorrectMacroeconomics
- Question 26 of 73
26. Question
Category: NCERTWhat is the name of the book written by J.M. Keynes?
CorrectThe General Theory of Employment, Interest, and Money
IncorrectThe General Theory of Employment, Interest, and Money
- Question 27 of 73
27. Question
Category: NCERTWhen was the famous book of Prof. Keynes published?
Correct1936
Incorrect1936
- Question 28 of 73
28. Question
Category: NCERTWhen did the great depression occur?
Correct1929-30
Incorrect1929-30
- Question 29 of 73
29. Question
Category: NCERTWho is known as the father of modern macroeconomics?
CorrectJ. M. Keynes
His most influential book, The General Theory of Employment, Interest and Money (1936), challenged classical economics by arguing that aggregate demand—not just supply—drives economic performance. Keynes advocated for active government intervention, especially fiscal policy, to manage economic cycles and reduce unemployment.
IncorrectJ. M. Keynes
His most influential book, The General Theory of Employment, Interest and Money (1936), challenged classical economics by arguing that aggregate demand—not just supply—drives economic performance. Keynes advocated for active government intervention, especially fiscal policy, to manage economic cycles and reduce unemployment.
- Question 30 of 73
30. Question
Category: NCERTMr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
CorrectMacroeconomics
IncorrectMacroeconomics
- Question 31 of 73
31. Question
Category: NCERT_______ is the primary function of money.
CorrectMedium of exchange
IncorrectMedium of exchange
- Question 32 of 73
32. Question
Category: NCERTInitial deposits made by the people from their own resources are called
Correctprimary deposits
Incorrectprimary deposits
- Question 33 of 73
33. Question
Category: NCERTThe monetary policy generally targets to ensure _______
CorrectPrice stability in the economy
IncorrectPrice stability in the economy
- Question 34 of 73
34. Question
Category: NCERTIn order to encourage investment in the economy, the Central Bank may _______
CorrectReduce Cash Reserve Ratio
IncorrectReduce Cash Reserve Ratio
- Question 35 of 73
35. Question
Category: NCERTBanks are able to create credit many times more than initial deposits through
Correctsecondary deposits
Incorrectsecondary deposits
- Question 36 of 73
36. Question
Category: NCERTThe creation is called credit creation.
Correctsecondary deposits
Incorrectsecondary deposits
- Question 37 of 73
37. Question
Category: NCERTThe ratio of total deposit that a commercial bank has to keep with the Reserve Bank of India is called
CorrectCash Reserve Ratio
IncorrectCash Reserve Ratio
- Question 38 of 73
38. Question
Category: NCERTCredit creation by the commercial bank is determined by
Correctall of the above
Incorrectall of the above
- Question 39 of 73
39. Question
Category: NCERT______ is the rate of interest charged by the central bank on loans given to the commercial bank.
CorrectBank Rate
IncorrectBank Rate
- Question 40 of 73
40. Question
Category: NCERT_______ is the main function of Central Bank.
CorrectNotes issue
IncorrectNotes issue
- Question 41 of 73
41. Question
Category: NCERTDepreciation of fixed capital assets refers to
CorrectNormal wear and tear and foreseen obsolescence
Foreseen obsolescence refers to the expected decline in the value of an asset due to factors like technological advancement, wear and tear, or changes in consumer preferences—anticipated at the time of purchase.
IncorrectNormal wear and tear and foreseen obsolescence
Foreseen obsolescence refers to the expected decline in the value of an asset due to factors like technological advancement, wear and tear, or changes in consumer preferences—anticipated at the time of purchase.
- Question 42 of 73
42. Question
Category: NCERTNational income is the sum of factor income accruing to
CorrectResidents
IncorrectResidents
- Question 43 of 73
43. Question
Category: NCERTGNP at MP =
CorrectGDP at MP + Net factor income from abroad
IncorrectGDP at MP + Net factor income from abroad
- Question 44 of 73
44. Question
Category: NCERTNDP at MP =
CorrectGDP at MP – Depreciation
IncorrectGDP at MP – Depreciation
- Question 45 of 73
45. Question
Category: NCERTNNP at MP =
CorrectAll of these
IncorrectAll of these
- Question 46 of 73
46. Question
Category: NCERTGDP at FC =
CorrectGDP at MP – Net indirect taxes
IncorrectGDP at MP – Net indirect taxes
- Question 47 of 73
47. Question
Category: NCERTNDP at FC =
CorrectGDP at FC – Depreciation
IncorrectGDP at FC – Depreciation
- Question 48 of 73
48. Question
Category: NCERTNNP at FC =
CorrectAll of these
IncorrectAll of these
- Question 49 of 73
49. Question
Category: NCERTAccounting of National Income at constant prices is known as
CorrectReal income
IncorrectReal income
- Question 50 of 73
50. Question
Category: NCERTWhich of the following items are excluded from GNP measurement?
CorrectAll of these
IncorrectAll of these
- Question 51 of 73
51. Question
Category: NCERTOther things remaining unchanged, when in a country the price of foreign currency rises, national income is:
CorrectLikely to rise
IncorrectLikely to rise
- Question 52 of 73
52. Question
Category: NCERTForeign exchange transactions dependent on other foreign exchange transactions are called:
CorrectAccommodating transactions
IncorrectAccommodating transactions
- Question 53 of 73
53. Question
Category: NCERTOther things remaining the same, when in a country the market price of foreign currency falls, national income is likely:
Correctto fall
The appreciation of a currency tends to make exports more expensive for foreign buyers and imports cheaper for domestic consumers. As a result:
- Exports may decline (hurting domestic production and income),
- Imports may rise (reducing demand for domestic goods).
So, the net effect is that national income is likely to fall due to reduced net exports.
Incorrectto fall
The appreciation of a currency tends to make exports more expensive for foreign buyers and imports cheaper for domestic consumers. As a result:
- Exports may decline (hurting domestic production and income),
- Imports may rise (reducing demand for domestic goods).
So, the net effect is that national income is likely to fall due to reduced net exports.
- Question 54 of 73
54. Question
Category: NCERTForeign exchange transactions which are independent of other transactions in the Balance of Payments Account are called:
CorrectAutonomous transactions
Autonomous Transactions: Also called “Above-the-line” items, occur independently of the BoP status they happen whether there’s a deficit or surplus. Include exports, imports, foreign investments, and remittances, etc.
Accommodating Transactions: Also called “Below-the-line” items, triggered in response to a BoP deficit or surplus. Typically involve official reserve transactions, like borrowing from the IMF or using forex reserves.
IncorrectAutonomous transactions
Autonomous Transactions: Also called “Above-the-line” items, occur independently of the BoP status they happen whether there’s a deficit or surplus. Include exports, imports, foreign investments, and remittances, etc.
Accommodating Transactions: Also called “Below-the-line” items, triggered in response to a BoP deficit or surplus. Typically involve official reserve transactions, like borrowing from the IMF or using forex reserves.
- Question 55 of 73
55. Question
Category: NCERTWhat is the cause of the devaluation of any country’s currency?
CorrectAll of these
IncorrectAll of these
- Question 56 of 73
56. Question
Category: NCERTThe operation of daily nature in the foreign exchange market is known as
CorrectSpot market
IncorrectSpot market
- Question 57 of 73
57. Question
Category: NCERTThe operation of future delivery in the foreign exchange market is known as
CorrectForward market
IncorrectForward market
- Question 58 of 73
58. Question
Category: NCERTTrade of visible items between the countries is known as
CorrectBalance of Trade
IncorrectBalance of Trade
- Question 59 of 73
59. Question
Category: NCERTWhen the import and export of visible items are equal, the situation is known as
CorrectBalance of Trade
IncorrectBalance of Trade
- Question 60 of 73
60. Question
Category: NCERTWhen there is a favourable balance of trade?
CorrectX > M
IncorrectX > M
- Question 61 of 73
61. Question
Category: NCERTWhich of the following parameters are used in order to calculate Human Development Index (HDI)?
1. Life expectancy at birth
2. Gender Equality
3. Standard of living
4. Mean of years of schoolingCorrectParameters 1,3 and 4 are correct; Gender Equality is not a parameter.
IncorrectParameters 1,3 and 4 are correct; Gender Equality is not a parameter.
- Question 62 of 73
62. Question
Category: NCERTIn the context of Indian Economy, the term ‘Twin Deficit’ is associated with which of the following?
CorrectTwin Deficit refers to Current Account Deficit coupled with Fiscal Deficit.
IncorrectTwin Deficit refers to Current Account Deficit coupled with Fiscal Deficit.
- Question 63 of 73
63. Question
Category: NCERTWith reference to the PM-MUDRA Scheme, consider the following statements:
1. Under this scheme, there is a provision for direct lending to enterprises in MSME and Agricultural allied sectors.
2. The Micro Units Development & Refinance Agency is wholly owned by the Reserve Bank of India.
3. Under this programme, loans are collateral free.CorrectStatement 3 is correct; Statements 1 and 2 are incorrect.
IncorrectStatement 3 is correct; Statements 1 and 2 are incorrect.
- Question 64 of 73
64. Question
Category: NCERTIndia’s performance in the Logistics Performance Index has been a matter of discussion. Which of the following institutions publishes this index?
CorrectThe Logistics Performance Index is published by the World Bank.
IncorrectThe Logistics Performance Index is published by the World Bank.
- Question 65 of 73
65. Question
Category: NCERTWhich of the following statements describes the term ‘Tax Evasion’ most appropriately?
CorrectTax evasion is an illegal action in which a person or entity deliberately avoids paying a true tax liability.
IncorrectTax evasion is an illegal action in which a person or entity deliberately avoids paying a true tax liability.
- Question 66 of 73
66. Question
Category: NCERT‘Beveridge curve’ is associated with which of the following?
CorrectThe Beveridge curve is associated with Unemployment.
IncorrectThe Beveridge curve is associated with Unemployment.
- Question 67 of 73
67. Question
Category: NCERTConsider the following statements:
1. Reducing number of items in the 28% slab
2. Businesses generating fake invoices to claim higher input tax credits
Which of the above can be considered as the possible reasons for ‘GST revenues going off target’?CorrectBoth statements are correct.
IncorrectBoth statements are correct.
- Question 68 of 73
68. Question
Category: NCERT‘PSBloansin59minutes.com’ has emerged as the largest online lending platform. This portal specifically deals with which of the following?
CorrectThe portal deals with MSMEs.
IncorrectThe portal deals with MSMEs.
- Question 69 of 73
69. Question
Category: NCERTThe term ‘Bharat 22’ is often seen in the news is associated with which of the following statements?
CorrectBharat 22 is an Exchange Traded Fund (ETF) launched by Government of India.
IncorrectBharat 22 is an Exchange Traded Fund (ETF) launched by Government of India.
- Question 70 of 73
70. Question
Category: NCERTWhich of the following can be the possible reasons behind the Demand-Pull Inflation?
1. A growing economy
2. Higher interest rates
3. Lower government spending
4. An expansion of the money supplyCorrectReasons 1 and 4 are correct; Higher interest rates and lower government spending do not cause demand-pull inflation.
IncorrectReasons 1 and 4 are correct; Higher interest rates and lower government spending do not cause demand-pull inflation.
- Question 71 of 73
71. Question
Category: NCERTConsider the following statements:
1. Real GDP is calculated in a way such that the goods and services are evaluated at the current prevailing prices.
2. When real GDP is higher than nominal GDP then it can be assumed that deflation is occurring.CorrectStatement 1 is incorrect (Real GDP uses constant prices); Statement 2 is correct.
IncorrectStatement 1 is incorrect (Real GDP uses constant prices); Statement 2 is correct.
- Question 72 of 73
72. Question
Category: NCERTGlobal Financial Secrecy Index is released by:
CorrectThe Global Financial Secrecy Index is released by the Tax Justice Network.
IncorrectThe Global Financial Secrecy Index is released by the Tax Justice Network.
- Question 73 of 73
73. Question
Category: NCERTConsider the following pairs:
1. Tax avoidance – Process of disguising the source of money
2. Tax mitigation – Investing money in such a manner that deductions can be claimed legally
3. Tax terrorism – Tax authorities putting undue pressure to pay more taxes
Which of the above pairs is/are correctly matched?CorrectPairs 2 and 3 are correctly matched; Pair 1 is incorrect (Tax avoidance uses legal loopholes, not disguising money).
IncorrectPairs 2 and 3 are correctly matched; Pair 1 is incorrect (Tax avoidance uses legal loopholes, not disguising money).
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