Free Employment 02 Practice Test - 12th Grade - Commerce 

Question 1

The activities which do not contribute to the gross domestic product are called economic activities.

A.

True

B.

False

SOLUTION

Solution : B

False. The activities which do not contribute to the gross domestic product are called non-economic activities.

Question 2

A worker is an individual, who is involved in some economic activity, to earn a living.

A.

True

B.

False

SOLUTION

Solution : A

True. A worker is an individual, who is involved in some economic activity, to earn a living.

Question 3

GDP is the total money value of all final goods and services produced in a country in a year.

A.

True

B.

False

SOLUTION

Solution : A

True. GDP is the total money value of all final goods and services produced in a country in a year.

Question 4

The total money value of all final goods and services produced in a country in a year is known as:

A.

GDP

B.

GNP

C.

NNP

D.

None of the above

SOLUTION

Solution : A

GDP is the total money value of all final goods and services produced in a country in a year.

Question 5

Persons who are engaged in economic activities are termed as workers and they constitute the workforce.

A.

True

B.

False

SOLUTION

Solution : A

True. Persons who are engaged in economic activities are termed as workers and they constitute the workforce.

Question 6

All forms of unemployment reflect poverty, but all forms of poverty do not necessarily reflect unemployment. Which of the following is correct about the statement?

A.

The first part is correct

B.

The second part is correct

C.

Both parts of the statement are incorrect. 

D.

Both parts of the statement are correct. 

SOLUTION

Solution : B

The first part of the statement is incorrect, but the second part is true. Being out of work is not necessarily the same as being poor, because savings, or family support can, for instance, provide a financial cushion during a short period of work. Over time, unemployment causes these resources to be used up. However, even a long period out of work may not result in poverty where members of a household, other than the household head, are earning. Similarly, all forms of poverty do not necessarily relflect unemployment. In relative poverty, you are poor relative to a group of people who may be earning more than you, when you are in unemployment.

Question 7

Why is household work excluded from the estimation of GDP?

A.

It is difficult to estimate the value of household work.

B.

Household work doesn't involve production of goods. 

C.

Household work adds no value to the economy. 

D.

None of these

SOLUTION

Solution : A

Household work is excluded from the estimation of GDP because GDP measures the value of economic activity within a country, and it is difficult to estimate the value of work performed by a household. 

Question 8

Social exclusion denies certain individuals the 

A.

facilities 

B.

benefits 

C.

opportunities 

D.

all of the above

SOLUTION

Solution : D

Social exclusion denies certain individuals the facilities, benefits, and opportunities to rise abover their status and be at par with others. 

Question 9

Which of the following is/are correct?
 

  1. Seasonal unemployment is in general a feature of rural unemployment
  2. Disguised unemployment is in general a feature of rural unemployment
  3. Disguised unemployment is in general a feature of urban unemployment
  4. In the secondary sector, small scale manufacturing is the most labour absorbing in India
A.

1 & 2 only.

B.

1 & 3 only.

C.

1, 2 & 4 only

D.

All the above

SOLUTION

Solution : C

1, 2, & 4 are correct statements. 

Question 10

What qualifies someone as unemployed?

A.

An illegal immigrant 

B.

Without work 

C.

Uneducated 

D.

When you don't have a regular income 

SOLUTION

Solution : B

Unemployment is a situation of being out of work.