Economics

Question 1

1

Disguised unemployment generally means

Disguised unemployment means that more people are engaged in a job which can be done with fewer people, normally seen in agriculture where the whole family is involved. It means extra people can be removed without affecting the productivity, i.e., their marginal productivity is zero.

Source: NCERT: Class 11th Economy

Answer

A. Large number of people remain unemployed

B. Alternative employment is not available

C. Marginal productivity of labour is zero(Correct Answer)

D. Productivity of workers is low

Question 2

2

Consider the following statements: Human capital formation as a concept is better explained in terms of a process which enables:
individuals of a country to accumulate more capital.
increasing the knowledge, skill levels and capacities of the people of the country.
accumulation of tangible wealth.
accumulation of intangible wealth.
Which of the statements given above is/are correct?

Human capital formation indicates the process of acquiring and increasing the number of persons who have the skills, education, and experience which are critical for the economic and political development of the country. Human capital formation is thus associated with investment in man and his development as a creative and productive resource. Hence, statement 1 is correct.

Intangible wealth consists of factors such as the trust among people in a society, an efficient judicial system, clear property rights, effective government, and a good education system, etc. Human capital formation enables the accumulation of intangible wealth. Hence, statement 4 is correct.

Source: NCERT

Answer

A. 1 and 2

B. 2 only

C. 2 and 4(Correct Answer)

D. 1, 3 and 4

Question 3

3

The national income of a country for a given period is equal to the

NNP at factor cost is equivalent to National Income (NI), which means option A is the best choice. No other option specifically mentions nationals.

Source Citation:

NCERT: XII Macro Economics

Answer

A. total value of goods and services produced by the nationals(Correct Answer)

B. sum of total consumption and investment expenditure

C. sum of personal income of all individuals

D. money value of final goods and service produced

Question 4

4

Disguised unemployment generally means

Disguised unemployment means that more people are engaged in a job which can be done with fewer people, normally seen in agriculture where the whole family is involved. It means extra people can be removed without affecting the productivity, i.e., their marginal productivity is zero.

Source: NCERT: Class 11th Economy

Answer

A. Large number of people remain unemployed

B. Alternative employment is not available

C. Marginal productivity of labour is zero(Correct Answer)

D. Productivity of workers is low

Question 5

5

The money multiplier in an economy increases with which one of the following?

Money Multiplier is the ratio of the stock of money to the stock of high powered money. It is the relationship between the monetary base and money supply of an economy. It explains the increase in the amount of cash in circulation generated by the banks' ability to lend money out of their depositors' funds. Therefore, it refers to how an initial deposit can lead to a bigger final increase in the total money supply.

For example, if the commercial banks gain deposits of Rs1 Lakh and this leads to a final money supply of Rs 10 lakh. The money multiplier is 10.

Therefore, increase in banking habit of the population would lead to more deposits and hence increase in Money Multiplier. Hence (b) is the correct answer.

Source: Introductory Macroeconomics: NCERT Class 12 Economics

Answer

A. Increase in the cash reserve ratio

B. Increase in the banking habit of the population(Correct Answer)

C. Increase in the statutory liquidity ratio

D. Increase in the population of the country

Economics

Previous Year Questions

Disguised unemployment generally means

The national income of a country for a given period is equal to the

Disguised unemployment generally means

The money multiplier in an economy increases with which one of the following?

Previous Year Questions

Disguised unemployment generally means

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