Determination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!

Are you ready to test your knowledge of Determination of Income and Employment from the Class 12 Economics syllabus? This chapter focuses on aggregate demand, aggregate supply, equilibrium level of income, and Keynesian economics, which are crucial for CBSE board exams and competitive exams.

About the Quiz

Chapter Name: Determination of Income and Employment
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of national income equilibrium & employment theories
✔ Enhances knowledge of aggregate demand & supply concepts
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 3 Determination of Income and Employment

1 / 15

If in an economy, the value of the investment multiplier is 4 and Autonomous Consumption is ₹ 30 Crore, the relevant consumption function would be:

C=30+0.75 Y

C=30-0.75Y

C=30-0.25Y

C=(-)30+0.25Y

2 / 15

Read the following statements carefully:

Statement 1: Aggregate demand is the sum total of consumption and investment expenditures.

Statement 2: Total consumption consists of an autonomous component and an induced component.

Choose the correct option based on the above statements.

Both statements 1 and 2 are false

Both statements 1 and 2 are true

Statement 1 is false and statement 2 is true

Statement 1 is true and statement 2 is false

3 / 15

Choose the equation that represents the equilibrium condition in a two-sector economy.

Y = C̅+I ̅/MPC

Y = C̅/1−MPS

Y = C̅+I¯/1−MPC

Y = C̅/MPS

4 / 15

Read the following statement -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The saving curve makes a negative intercept on the vertical axis at a zero level of income.

Reason (R): The saving function refers to the functional relationship between saving and income.

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

5 / 15

The difference by which actual Aggregate Demand exceeds the Aggregate Demand, required to establish full employment equilibrium is known as……….………(inflationary gap/deflationary gap). (choose the correct alternative)

inflationary gap

deflationary gap

6 / 15

As the Marginal Propensity to Save (MPS) increases, the value of the investment multiplier ____________. (Choose the correct alternative)

becomes zero

increases

decreases

does not change

7 / 15

What is the term used to describe the level of output where Aggregate Demand is equal to Aggregate Supply?

Aggregate supply

Equilibrium level of income

Effective demand

Aggregate demand

8 / 15

The total consumption and investment curves are given below:

determination of income and employment class 12 economics questions answers

Identify which of the following represents “Autonomous Consumption”.

9 / 15

What is the impact of an increase in reverse repo rate on the lending capacity of commercial banks?

Increase in lending capacity

Lending capacity remains constant

No impact on lending capacity

Decrease in lending capacity

10 / 15

What happens when ex-ante Aggregate Demand is more than ex-ante Aggregate Supply?

Level of output, income, and employment increase

Level of output, income, and employment remain constant

Level of output, income, and employment decrease

There is no impact on the level of output, income, and employment

11 / 15

Given below are some basic activities that occur in an economy. Identify the activity that would not help to study the economy in its totality.

determination of the consumer’s equilibrium

aggregate demand and supply of goods

determination of equilibrium level of income and employment

government introducing policies

12 / 15

What is the value of the investment multiplier, when the Marginal Propensity to Consume (MPC) is 0.1?

1.1

100

0.01

13 / 15

Cut in Repo rate by RBI is likely to……….. (increase/decrease) the demand for goods and services in the economy. (choose the correct alternative)

decrease

increase

14 / 15

Suppose for a given economy,
S= -60 + 0.1Y
I= ₹ 4,000 crore
(Where S = Saving Function, Y = National Income and I = Investment Expenditure)
The equilibrium level of Income would be ₹ ______ crore.
(Choose the correct alternative to fill up the blank)

40,600

4,000

40,000

60,400

15 / 15

What is the effect of an increase in government expenditure on Aggregate Demand?

Decrease in Aggregate Demand

Aggregate Demand remains constant

Increase in Aggregate Demand

No impact on Aggregate Demand

Your score is

The average score is 53%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	nirmeet	87 %	2 minutes 47 seconds	13
2	..	87 %	3 minutes 46 seconds	13
3	Devashree	87 %	5 minutes 41 seconds	13
4	abc	80 %	7 minutes 6 seconds	12
5	nirmeet	80 %	1 hours 58 minutes 24 seconds	12
6	R	73 %	3 minutes 26 seconds	11
7	pranjal	67 %	4 minutes 12 seconds	10
8	Khushi	67 %	13 minutes 17 seconds	10
9	Fahad Hasan	60 %	11 minutes 37 seconds	9
10	Lakshmi	33 %	3 minutes 53 seconds	5
11	Jaish6	33 %	5 minutes 39 seconds	5
12	mmmm	33 %	17 minutes 52 seconds	5
13	Meow	27 %	1 minutes 7 seconds	4
14	Jyotiraditya	27 %	2 minutes 9 seconds	4
15	Aass	7 %	28 seconds	1
16	Yt	7 %	33 seconds	1

Key Topics Covered in the Quiz

✔ Aggregate Demand (AD) and Aggregate Supply (AS)
✔ Consumption, Investment & Savings
✔ Equilibrium Level of Income & Employment
✔ Multiplier Effect & Its Applications
✔ Concept of Full Employment & Underemployment
✔ Keynesian Theory of Income & Employment

More Class 12 Economics MCQ Quizzes

Take the quiz now and strengthen your exam preparation!

WhatsApp Group

Join Now

Telegram Group

Join Now

Spread the love

Also See: Indian Economy 1950-1990: Class 12 Important Questions and Answers for Board Exams

Determination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

1 thought on “Determination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!”

Leave a Comment Cancel reply

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Related posts:

1 thought on “Determination of Income and Employment Class 12 MCQ Quiz – Test Your Understanding!”

Leave a Comment Cancel reply