Circular Flow of Income Class 12 MCQ with Answers includes Multiple choice questions, Fill in the blanks, True or False, Short answers type questions. Answers to Circular Flow of Income Class 12 CBSE MCQs are available at the end of the last question.
| Category | CBSE Economics Class 12 MCQs |
| Subject | Economics |
| Chapter | Circular Flow of Income Class 12 MCQs |
Circular Flow of Income Class 12 MCQs (Multiple Choice Questions)
1. Which of the following, is not a phase of Circular Flow of income?
(a) Production Phase
(b) Income phase
(c) Expenditure phase
(d) Growth phase
Answer
Answer: (d) Growth phase
2. In closed economy, which of the following Sectors is not included?
(a) Household
(b) Local Firms
(c) Local Government
(d) Rest of the world
Answer
Answer: (d) Rest of the world
3. Which of the following is not a Flow Concept?
(a) Capital
(b) Capital Formation
(c) Income
(d) Depreciation
Answer
Answer: (a) Capital
4. “Real flow” refers to the flow of : –
(a) Goods and services across different sector of the economy
(b) Emotions
(c) Factor services from household sector to the producer sector
(d) Both A and C
Answer
Answer: (d) Both A and C
5. Which of the following is a “Stock Concept” ?
(a) Population
(b) Wealth
(c) Capital
(d) All of the above
Answer
Answer: (d) All of the above
6. Flow of goods and services in Barter economy is called
(a) Water flow
(b) Real flow
(c) Money flow
(d) All of the above
Answer
Answer: (b) Real flow
7. Real flow is also called
(a) Invisible flow
(b) Money flow
(c) Physical flow
(d) Both (a) and (c)
Answer
Answer: (c) Physical flow
8. Two sectoral economy consists of : –
(a) Household and foreign sector
(b) Firms and foreign sector
(c) Households and firms
(d) Government and firms
Answer
Answer: (c) Households and firms
Circular Flow of Income Class 12 MCQ with Answers
9. Which of the following is a factor income?
(a) Rent
(b) Wages
(c) Profit
(d) All of the above
Answer
Answer: (d) All of the above
10. Money flow depicts the way —- circulates in an economy : –
(a) Money
(b) Goods
(c) Services
(d) All of the above
Answer
Answer: (a) Money
11. Which of the following is also called nominal flow?
(a) Real flow
(b) Money flow
(c) Physical flow
(d) All of the above
Answer
Answer: (b) Money flow
12. Which of the following is a flow?
(a) Aggregate Supply
(b) National Income
(c) Investment
(d) All of the above
Answer
Answer: (d) All of the above
13. Saving is an example of
(a) Stock
(b) Flow
(c) Both (a) and (b)
(d) None of the above
Answer
Answer: (b) Flow
14. Flow variables are those which
(a) Can be measured at a point of time
(b) Can be measured over a period of time
(c) Cannot be measured
(d) None of the above
Answer
Answer: (b) Can be measured over a period of time
15. Capital formation is classified as ______.
(a) Stock
(b) Flow
(c) Both (a) and (b)
(d) None of the above
Answer
Answer: (b) Flow
16. Capital is classified as _____.
(a) Stock
(b) Flow
(c) Money Flow
(d) None of the above
Answer
Answer: (a) Stock
17. Real flow is also called ______ flow.
(a) Physical
(b) Flow
(c) Nominal
(d) None of the above
Answer
Answer: (a) Physical
18. _____ is measured over a period of time.
(a) Stock
(b) Flow
(c) Physical
(d) None of the above
Answer
Answer: (b) Flow
Circular Flow of Income Class 12 MCQ with Answers
19. Wealth is a ______ concept.
(a) Real
(b) Stock
(c) Flow
(d) None of the above
Answer
Answer: (b) Stock
20. Two sectoral economy consists of _____ and _____.
(a) Firms, Government
(b) Firms, Households
(c) Foreign Sector , Government
(d) None of the above
Answer
Answer: (b) Firms, Households
21. Income is a _______ concept.
(a) Real
(b) Stock
(c) Flow
(d) Physical
Answer
Answer: (c) Flow
22. Production is a _______ concept.
(a) Stock
(b) Flow
(c) Real Flow
(d) None of the above
Answer
Answer: (b) Flow
23. Population is a ______ concept.
(a) Stock
(b) Flow
(c) Both a and b
(d) None of the above
Answer
Answer: (a) Stock
24. Bank deposits are _____ variable.
(a) Stock
(b) Flow
(c) Physical flow
(d) None of the above
Answer
Answer: (a) Stock
Circular Flow of Income Class 12 MCQ with Answers
25. Capital is a stock concept.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
26. Circular flow of income has four phases.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
27. Real flow includes flow of money.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (b) False
28. Capital formation is a flow variable.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer
Answer: (a) True
29. Assertion: National wealth is a stock concept.
Reason: Stock variable is measured at a particular point of time.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.
Answer
Answer: (a) Both (A) and (R) are correct and (R) is the correct reason of (A).
30. Assertion: Real flow measures flow of factor service.
Reason: Factor services are provided by the factors of production.
(a) Both (A) and (R) are correct and (R) is the correct reason of (A).
(b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
(c) (A) is correct but (R) is wrong.
(d) (A) is wrong but (R) is correct.
Answer
Answer: (b) Both (A) and (R) are correct but (R) is not the correct reason of (A).
CBSE Economics Class 12 MCQ with Answers – Term 2
Part A: Introductory Macroeconomics
- Circular Flow of Income Class 12 MCQ with Answers
- Some Basic Concepts of Macroeconomics Class 12 MCQ
- National Income and Related Aggregates Class 12 MCQs
- National Income and Related Aggregates Class 12 Numericals
- Determination of Income and Employment Class 12 MCQs
Part B: Indian Economic Development
- Current challenges facing Indian Economy – 12 Marks
- Development Experience of India – A Comparison with Neighbours – 6 Marks