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CBSE Class 12 Humanities Economics · Ch 1: Introduction

CBSE Class 12 Humanities Economics · Ch 1: Introduction is an online chapter test in the CBSE Class 12 Humanities pattern, covering Introduction. Attempt it on SeatBeat with a timer like the real exam, then see a detailed solution for every question and your score and weak-topic analysis.

30
Questions
20
Minutes
30
Marks
None
Negative marking
Attempt this test free

Topics in this test

TopicQuestions
Introduction30

Difficulty: 3 easy · 9 medium · 18 hard

Sample questions with answers

The first 5 questions of this free test.

  1. Q1. Other things remaining the same, the production possibility frontier of an economy will shift to the right (outward) when:

    • A. A part of the labour force becomes unemployed
    • B. The available resources are used inefficiently
    • C. There is an increase in resources or an improvement in technology
    • D. The economy moves from one point to another on the same curve
    Solution

    An increase in resources or an improvement in technology raises the economy's production capacity, shifting the whole PPF outward; the other options do not change the capacity.

  2. Q2. If an economy's chosen production combination lies at a point inside (below) the production possibility frontier, it indicates that:

    • A. The combination cannot be produced with the available resources
    • B. The economy has achieved economic growth
    • C. Resources are either under-utilised or being used inefficiently
    • D. Resources are fully and efficiently employed
    Solution

    Points inside the PPF mean some resources are lying idle or are being used inefficiently, so the economy is producing less than its full potential.

  3. Q3. A producer's production possibilities are: Good A = 0, 1, 2, 3 units with the corresponding Good B = 20, 18, 14, 8 units. The marginal rate of transformation when the production of Good A is raised from 2 to 3 units is:

    • A. $8B : 1A$
    • B. $4B : 1A$
    • C. $2B : 1A$
    • D. $6B : 1A$
    Solution

    As Good A rises from 2 to 3 units, Good B falls from 14 to 8, so 6 units of B are sacrificed to gain 1 unit of A, giving an MRT of 6B : 1A.

  4. Q4. Match the type of economy in List-I with its main decision-maker in List-II. List-I: (a) Centrally planned economy (b) Market economy (c) Mixed economy. List-II: (1) Both government and market forces (2) The central authority / government (3) Market forces (price mechanism). Choose the correct match:

    • A. (a)-(2), (b)-(1), (c)-(3)
    • B. (a)-(1), (b)-(2), (c)-(3)
    • C. (a)-(3), (b)-(2), (c)-(1)
    • D. (a)-(2), (b)-(3), (c)-(1)
    Solution

    In a centrally planned economy the government takes the decisions, in a market economy the price mechanism decides, and a mixed economy uses both government and market forces.

  5. Q5. Consider the following statements about the production possibility frontier (PPF): (i) It slopes downward from left to right. (ii) Its slope measures the marginal rate of transformation. (iii) A point inside the PPF shows full and efficient use of resources. (iv) A point outside the PPF is currently unattainable. Which statements are correct?

    • A. (i), (iii) and (iv)
    • B. (i), (ii) and (iii)
    • C. (ii), (iii) and (iv)
    • D. (i), (ii) and (iv)
    Solution

    A point inside the PPF actually shows under-utilisation or inefficient use of resources, so statement (iii) is wrong while (i), (ii) and (iv) are correct.

Frequently asked questions

How many questions are in the CBSE Class 12 Humanities Economics · Ch 1: Introduction?

30 questions for 30 marks, to be answered in 20 minutes.

Is there negative marking in the CBSE Class 12 Humanities Economics · Ch 1: Introduction?

No — wrong answers are not penalised in this test.

Which topics does the CBSE Class 12 Humanities Economics · Ch 1: Introduction cover?

Introduction (30 questions).

Is the CBSE Class 12 Humanities Economics · Ch 1: Introduction free?

Yes — this test is free. Create a free SeatBeat account and attempt it online; you get the solutions and your score analysis after submitting.

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CBSE Class 12 Humanities Economics · Ch 1: Introduction — Free Online Mock Test | SeatBeat