Bihar Board Class 12 Economics 2025 Question Paper (Available): Download Bihar Board Class 12 Question Paper with Solution PDF

Into how many periods has Marshall divided production time on the basis of supply ?

• (A) Two
• (B) Three
• (C) Four
• (D) Seven

Market price is found in

• (A) Very short period market
• (B) Long period market
• (C) Very long period market
• (D) None of these

In very short period, supply will be

• (A) perfectly elastic
• (B) perfectly inelastic
• (C) elastic
• (D) none of these

In equilibrium situation

• (A) The amount to be sold is equal to the amount to be purchased
• (B) Market supply is equal to market demand
• (C) Neither the firm nor the consumer wants to be destabilised
• (D) All of these

Price of a good is determined at a point where

• (A) Demand of the commodity is high
• (B) Supply of the commodity is high
• (C) Demand of the commodity and supply of the commodity are equal
• (D) None of these

Which of the following statements is correct ?

• (A) The demand for labour comes from producers
• (B) Demand of labour depends on its productivity
• (C) \( MP_{L} = TP_{L} - TP_{(L-1)} \)
• (D) All of these

Due to price ceiling, what situation arises in the market ?

• (A) Quantity demanded \(>\) Quantity supplied
• (B) Demand will be larger and deficiency in goods will remain
• (C) Black marketing is possible
• (D) All of these

For every market, which condition has to be fulfilled for firm's equilibrium ?

• (A) AR = MC
• (B) MR = MC
• (C) MC curve intersects the MR curve from below
• (D) Both (B) and (C)

Which of the following is the reason for a decrease in supply ?

• (A) Increase in production cost
• (B) Increase in the prices of substitutes
• (C) Fall in number of firms in the industry
• (D) All of these

Which of the following is a stock ?

• (A) Wealth
• (B) Saving
• (C) Export
• (D) None of these

Which one of the following is a component of profit ?

• (A) Dividend
• (B) Undistributed profit
• (C) Corporate profit tax
• (D) All of these

Which one of the following is the difficulty of Barter system ?

• (A) Lack of double coincidence
• (B) Difficulty in division of the goods
• (C) Lack of general acceptable measure of value
• (D) All of these

Which one of the following is included in the primary function of money ?

• (A) Medium of exchange
• (B) Measure of value
• (C) Both (A) and (B)
• (D) Store of value

The functions of money include

• (A) value determination
• (B) store of value
• (C) means of exchange
• (D) all of these

Which of the following is the secondary function of commercial banks ?

• (A) Agency function
• (B) General utility function
• (C) Social function
• (D) All of these

Commercial banks

• (A) issue currency notes
• (B) accept deposits from customers
• (C) provide loan to customers
• (D) both (B) and (C)

Commercial banks create credit by

• (A) advancing loans
• (B) purchasing securities
• (C) both (A) and (B)
• (D) none of these

Which of the following statements is true ?

• (A) Central bank is the apex bank of the country
• (B) The government has the ownership of central bank
• (C) Central bank regulates the entire banking system in the country
• (D) All of these

Central bank controls credit through

• (A) bank rate
• (B) open market operations
• (C) CRR
• (D) all of these

The major objective(s) of monetary policy is/are

• (A) increase in output and employment
• (B) stability in foreign exchange rate
• (C) price stability
• (D) all of these

In Keynesian viewpoint the equilibrium level of income and employment in the economy will be established where

• (A) AD \(>\) AS
• (B) AS \(>\) AD
• (C) AD = AS
• (D) None of these

Keynes theory is associated with

• (A) Effective propensity to demand
• (B) Propensity to consume
• (C) Propensity to save
• (D) All of these

Keynes multiplier theory establishes the relationship between

• (A) Investment and total income
• (B) Income and consumption
• (C) Saving and investment
• (D) None of these

Multiplier can be expressed through which of the following formulae ?

• (A) \( K = \frac{\Delta S}{\Delta I} \)
• (B) \( K = \frac{\Delta Y}{\Delta I} \)
• (C) K = I - S
• (D) None of these

Which of the following is included in the qualitative method of controlling credit ?

• (A) Change in marginal requirement of loans
• (B) Credit rationing
• (C) Direct action
• (D) All of these

Which of the following monetary measures may be adopted to correct deficient demand ?

• (A) Reduction in bank rate
• (B) Buying securities in open market
• (C) Reducing cash reserve ratio
• (D) All of these

Which fiscal measure is to be adopted in correcting inflationary gap ?

• (A) Reduction in public expenditure
• (B) Tax increase
• (C) Increase in public debts
• (D) All of these

Financial year in India is

• (A) April 1 to March 31
• (B) January 1 to December 31
• (C) October 30 to September 1
• (D) None of these

Which of the following is a component of Budget ?

• (A) Budget Receipts
• (B) Budget Expenditure
• (C) Both (A) and (B)
• (D) None of these

Which of the following is a component of Budget Receipts ?

• (A) Revenue Receipts
• (B) Capital Receipts
• (C) Both (A) and (B)
• (D) None of these

Macroeconomics studies

• (A) Full employment
• (B) Aggregate price level
• (C) Gross National Product
• (D) All of these

Which of the following is studied under macroeconomics ?

• (A) National income
• (B) Full employment
• (C) Total production
• (D) All of these

Which one of the following is included in circular flow ?

• (A) Real flow
• (B) Monetary flow
• (C) Both (A) and (B)
• (D) None of these

Which one of the following is included in stock ?

• (A) Quantity of money
• (B) Wealth
• (C) Quantity of wheat stored in warehouse
• (D) All of these

Which of the following is included in real flow ?

• (A) Flow of goods
• (B) Flow of services
• (C) Both (A) and (B)
• (D) None of these

Which one is true ?

• (A) GNP = GDP + Depreciation
• (B) NNP = GNP + Depreciation
• (C) NNP = GNP - Depreciation
• (D) GNP = NNP - Depreciation

What is consumption of fixed capital called ?

• (A) Capital formation
• (B) Depreciation
• (C) Investment
• (D) All of these

Which of the following affects national income ?

• (A) Goods and services tax
• (B) Corporation tax
• (C) Subsidies
• (D) All of these

Which one of the following services is included in secondary sector ?

• (A) Insurance
• (B) Manufacturing
• (C) Trade
• (D) Banking

Which one is included in primary sector ?

• (A) Land
• (B) Forest
• (C) Mining
• (D) All of these

Microeconomics includes

• (A) individual unit
• (B) small variables
• (C) individual price determination
• (D) all of these

Microeconomics studies

• (A) Product price determination
• (B) Factor price determination
• (C) Economic welfare
• (D) All of these

Who was the father of Economics ?

• (A) J. B. Say
• (B) Malthus
• (C) Adam Smith
• (D) Joan Robinson

Which of the following statements is true ?

• (A) Human wants are infinite
• (B) Resources are limited
• (C) Scarcity problem gives birth to choice
• (D) All of these

To which factor, is economic problem basically related to ?

• (A) Choice
• (B) Consumer's selection
• (C) Firm selection
• (D) None of these

Which economy has a co-existence of private and public sectors ?

• (A) Capitalist
• (B) Socialist
• (C) Mixed
• (D) None of these

Which of the following is a characteristic of utility ?

• (A) Utility is a psychological phenomenon
• (B) Utility is subjective
• (C) Utility is a relative concept
• (D) All of these

Consumer's behaviour is studied in

• (A) Microeconomics
• (B) Macroeconomics
• (C) Income theory
• (D) None of these

Who basically propounded the concept of Law of Equimarginal utility ?

• (A) Marshall
• (B) Gossen
• (C) Ricardo
• (D) Mill

The capacity of a commodity to satisfy human wants is

• (A) Consumption
• (B) Utility
• (C) Quality
• (D) Taste

For controlling inflation, bank rate is

• (A) increased
• (B) decreased
• (C) kept constant
• (D) is made zero

Where is the headquarters of RBI ?

• (A) New Delhi
• (B) Mumbai
• (C) Kolkata
• (D) Chennai

14 big scheduled commercial banks in India were nationalised in

• (A) 1949
• (B) 1955
• (C) 1969
• (D) 2000

Narasimham Committee Report is related to reform of which of the following ?

• (A) Taxation reform
• (B) Administrative reform
• (C) Banking reform
• (D) Trade reform

How many banks were nationalised on April 15, 1980 ?

• (A) 20
• (B) 6
• (C) 8
• (D) 10

"Supply creates its own demand." Who propounded this law ?

• (A) J. B. Say
• (B) J. S. Mill
• (C) Keynes
• (D) Ricardo

Effective demand is dependent on

• (A) Aggregate demand
• (B) Aggregate supply
• (C) Both (A) and (B)
• (D) None of these

If MPC is 0.2, then MPS will be

• (A) 0.8
• (B) 0.2
• (C) 0.4
• (D) -0.2

Average propensity to consume is equal to

• (A) \( \frac{\Delta C}{\Delta Y} \)
• (B) S + C
• (C) \( \frac{C}{Y} \)
• (D) \( \frac{S}{Y} \)

Which one of the following is the determining factor of equilibrium income in Keynesian viewpoint ?

• (A) Aggregate demand
• (B) Aggregate supply
• (C) Both (A) and (B)
• (D) None of these

Which element is essential for demand ?

• (A) Desire to consume
• (B) Given price
• (C) Willingness to spend factor
• (D) All of these

In which type of goods, price fall does not make any increase in demand ?

• (A) Necessary goods
• (B) Comfort goods
• (C) Luxurious goods
• (D) None of these

For normal goods, Law of Demand states the .......... relationship between price of goods and quantity of goods.

• (A) Direct
• (B) Positive
• (C) Inverse
• (D) None of these

The examples of substitute goods are

• (A) Tea and sugar
• (B) Shoes and socks
• (C) Pen and ink
• (D) Tea and coffee

Price elasticity of demand for Giffen goods is

• (A) Negative
• (B) Positive
• (C) Zero
• (D) None of these

The factor affecting elasticity of demand is

• (A) Nature of goods
• (B) Price level
• (C) Income level
• (D) All of these

If the demand for a good changes by 60% due to 40% change in price, the elasticity of demand will be

• (A) 0.5
• (B) 1.5
• (C) 1
• (D) 0

Which of the following laws explains the short-run production function ?

• (A) Law of demand
• (B) Law of variable proportion
• (C) Law of returns to scale
• (D) Elasticity of demand

In which stage of production a rational producer likes to operate in the condition short-run production ?

• (A) First stage
• (B) Second stage
• (C) Third stage
• (D) None of these

Which factors among the following we find in short-run production process ?

• (A) Fixed factors
• (B) Variable factors
• (C) Both (A) and (B)
• (D) None of these

Firm gets profit when

• (A) AR \(>\) AC
• (B) AC \(>\) AR
• (C) AR = AC
• (D) None of these

Supply is associated with which of the following ?

• (A) A time period
• (B) Price
• (C) Both (A) and (B)
• (D) None of these

Which of the following functions shows the Law of Supply ?

• (A) S = f(P)
• (B) \( S = f(\frac{1}{P}) \)
• (C) S = f(Q)
• (D) None of these

The measurement of the elasticity of supply is made known as

• (A) \( \frac{\Delta Q_s}{Q_s} \div \frac{\Delta P}{P} \)
• (B) \( \frac{Q_s}{\Delta P} \times 1 \)
• (C) \( \frac{Q_s}{\Delta Q_s} \times \Delta P \)
• (D) \( \frac{\Delta P}{Q_s} \times \frac{P}{\Delta Q_s} \)

The elasticity of a straight line supply curve originating from the origin of the axes is

• (A) Less than unity
• (B) Greater than unity
• (C) Equal to unity
• (D) Equal to zero

Under ceteris paribus if the quantity supplied of a good increases by 6% due to an increase in its price by 5% then what will be the value of price elasticity of supply of the good ?

• (A) 30
• (B) 0.83
• (C) 1.2
• (D) 2

Market situation where there is only one buyer is

• (A) Monopoly
• (B) Monopsony
• (C) Duopoly
• (D) None of these

In which market is product differentiation found?

• (A) Pure competition
• (B) Perfect competition
• (C) Monopoly
• (D) Monopolistic competition

The concept of monopolistic competition is given by

• (A) Hicks
• (B) Chamberlin
• (C) Mrs. Robinson
• (D) Samuelson

What is the type of demand curve of monopoly ?

• (A) Inelastic
• (B) Elastic
• (C) Perfectly elastic
• (D) Perfectly inelastic

What will be the investment multiplier if MPC is 0.2 ?

• (A) 200
• (B) 5
• (C) 2
• (D) 1.25

Foreign exchange rate is determined by

• (A) Demand of foreign currency
• (B) Supply of foreign currency
• (C) Demand and supply in foreign exchange market
• (D) None of these

Who determines the foreign exchange rate ?

• (A) Government
• (B) Bargaining
• (C) World Bank
• (D) Demand and supply forces

During Breton Woods system most countries had

• (A) Fixed Exchange Rate
• (B) Pegged Exchange Rate
• (C) Both (A) and (B)
• (D) None of these

Which one of the following is included in the invisible items of balance of payment ?

• (A) Banking
• (B) Shipping
• (C) Communication
• (D) All of these

Which one of the following is included in the item of Capital Account ?

• (A) Government transaction
• (B) Private transaction
• (C) Foreign Direct Investment
• (D) All of these

Which of the following does not come in Capital Account ?

• (A) Government transaction
• (B) Direct investment
• (C) Unilateral transfer
• (D) None of these

The formula for deflationary gap is

• (A) Potential GDP - Actual GDP
• (B) Potential GDP + Actual GDP
• (C) Both (A) and (B)
• (D) None of these

Which of the following is a reason of appearing surplus demand ?

• (A) Increase in public expenditure
• (B) Increase in money supply
• (C) Fall in taxes
• (D) All of these

The difference between aggregate demand at above full employment and aggregate demand at full employment expresses

• (A) Inflationary gap
• (B) Deflationary gap
• (C) Both (A) and (B)
• (D) None of these

What is/are the factor(s) of production ?

• (A) Land
• (B) Labour
• (C) Capital
• (D) All of these

With the increase in production the difference between total and total fixed cost

• (A) remains constant
• (B) increases
• (C) decreases
• (D) both increases and decreases

Which of the following factors are there in short-run production process ?

• (A) Fixed factors
• (B) Variable factors
• (C) Both (A) and (B)
• (D) None of these

The alternative name of opportunity cost is

• (A) Economic cost
• (B) Equilibrium price
• (C) Marginal cost
• (D) Average cost

TFC + TVC = ?

• (A) Total cost
• (B) Average cost
• (C) Marginal cost
• (D) None of these

In which market may Marginal Revenue become zero or negative ?

• (A) Monopoly
• (B) Monopolistic competition
• (C) Both (A) and (B)
• (D) Perfect competition

Which of the following will be true for both Monopoly and Monopolistic competition ?

• (A) P \(>\) MR
• (B) P = MR
• (C) P = MC
• (D) P = AC

Average Revenue equals to

• (A) Total revenue divided by the quantity produced
• (B) Price
• (C) Both (A) and (B)
• (D) None of these

The necessary condition for a firm's equilibrium is

• (A) MR = MC
• (B) MR \(>\) MC
• (C) MR \(<\) MC
• (D) MR = MC = 0

Net profit = ?

• (A) TR - TC
• (B) MR + MC
• (C) Both (A) and (B)
• (D) None of these

Define secondary sector of the economy.

What do you mean by Gross Domestic Product ?

Give two examples each for Consumption goods and Capital goods.

Mention two contingent functions of money.

What do you mean by Demand deposits ?

What is Statutory Liquidity Ratio (SLR) ?

When the second Narasimham Committee was appointed ?

What is meant by aggregate demand ?

What is Say's law of market ?

What is meant by Fixed cost?

Explain the relation between Total Revenue and Marginal Revenue.

What is meant by producer's equilibrium ?

What is Investment Multiplier ?

What is meant by recession ?

What is meant by Fiscal policy ?

Define market equilibrium.

What are the two forces in determining the price of the goods ?

Define flow.

What is meant by demand?

When the elasticity of demand is unitary ?

What is meant by production function ?

Define Government Budget.

State two sources of supply of foreign exchange.

Which items are included in balance of trade ?

What is Market Supply ?

Mention the four determinants of elasticity of supply.

Define perfect competition.

What is economic activity?

What do you mean by Mixed Economic System ?

Define Utility.

Explain the importance of the study of Microeconomics.

Explain the Law of Demand. What are its assumptions ?

Define supply. Mention the causes which determine the supply of a commodity.

What is Monopoly ? What are its main features ?

What is meant by Macroeconomics ? Discuss its scope.

Explain the importance of National Income.

What are the main functions of money ?

Define central bank and explain its functions.