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CBSE · Class 12 · Social Science

Introduction to Macroeconomics

Standard difficulty · 20 questions · 40 marks · Time: 37 minutes

Name: Date: Score: ____ / 40

Write full answers in Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
Macroeconomics emerged as a separate subject in the 1930s mainly due to the work of:
  1. Alfred Marshall
  2. David Ricardo
  3. Adam Smith
  4. J. M. Keynes
2.
The income earned from a teacher’s work in a school is called:
  1. wages
  2. transfer payments
  3. taxes
  4. profit
3.
Which sector of the macroeconomy does this belong to: buying machines to expand a factory?
  1. the banking sector
  2. households
  3. firms
  4. the farm sector
4.
Which of these is studied in macroeconomics?
  1. national income
  2. the wage in one factory
  3. a household’s demand for milk
  4. the supply of potatoes in one market
5.
Suppose a country’s labour force is 109,000 and 7,630 of them are unemployed. What is the unemployment rate?
  1. 93%
  2. 7%
  3. 14%
  4. 9%
6.
In the USA, the unemployment rate rose from 3% in 1929 to 25% in 1933. In a labour force of 19,500, how many more people would be unemployed at the higher rate?
  1. 5,460 people
  2. 4,875 people
  3. 4,290 people
  4. 585 people
7.
A firm’s value added is ₹640,000. It pays ₹280,000 in wages, ₹90,000 in rent and ₹40,000 in interest. What is left as profit?
  1. ₹640,000
  2. ₹410,000
  3. ₹230,000
  4. ₹270,000
8.
Suppose a country exports goods worth ₹660 crore and imports goods worth ₹790 crore. Its trade with the external sector shows:
  1. a surplus of ₹1,450 crore
  2. a surplus of ₹130 crore
  3. a deficit of ₹130 crore
  4. a deficit of ₹1,450 crore
Section B — Short answer8 × 2 = 16 marks
9.
How does macroeconomics differ from microeconomics?
10.
Name the reward for each: (a) organising a business as an entrepreneur (b) starting a firm and bearing its risks
11.
Explain each term: (a) Great Depression (b) external sector
12.
Suppose region A has a labour force of 84,000 with 6,720 unemployed, and region B has 82,000 with 8,200 unemployed. Find each unemployment rate.
13.
Between 1929 and 1933 the unemployment rate in the USA rose from 3% to 25%. In a labour force of 15,200, how many would be unemployed at each rate?
14.
Suppose in a small economy firms pay ₹730 crore as wages, ₹200 crore as rent, ₹170 crore as interest and earn ₹370 crore as profit. What is the total factor income, and what does it equal?
15.
A firm’s value added is ₹182,000, and 40% of it is profit; the rest goes in wages, rent and interest. How much is profit, and how much goes to the other factors?
16.
Name the sector of the macroeconomy: (a) a family buying food and clothes (b) collecting taxes and running public schools
Section C — Longer answers4 × 4 = 16 marks
17.
Explain why macroeconomics emerged as a separate subject.
18.
Match each with its meaning: (a) wage labour (b) capitalist economy (c) external sector. Choose from: the economy’s dealings with other countries; private firms hiring wage labour for profit; people working for a wage paid by employers.
19.
From 1929 to 1933 unemployment in the USA rose from 3% to 25% and output fell by about 33%. Suppose an economy with a labour force of 16,700 and output of ₹610 crore suffered the same. (a) How many more people would be unemployed? (b) What would output fall to, roughly? (c) Why did this lead to the rise of macroeconomics?
20.
Suppose in an economy firms pay ₹780 crore wages, ₹170 crore rent and ₹190 crore interest, and earn ₹210 crore profit; exports are ₹220 crore and imports ₹170 crore. (a) What is the total factor income? (b) What is the net export figure? (c) Which sectors of the economy are involved in each flow?
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Social Science

Answer key

Introduction to Macroeconomics · AW-12SS-IMA-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) J. M. Keynes—
2(a) wages—
3(c) firms—
4(a) national income—
5(b) 7%7,630 ÷ 109,000 × 100
6(c) 4,290 people(25 − 3)% of 19,500
7(c) ₹230,000640,000 − 280,000 − 90,000 − 40,000
8(c) a deficit of ₹130 crore660 − 790
9Macroeconomics studies aggregates like total output, employment and the price level; microeconomics studies individual markets and agents.—
10(a) profit (b) profit—
11(a) the collapse of output and jobs from 1929 (b) the economy’s dealings with other countries—
12A 8%, B 10%unemployed ÷ labour force × 100
13456 at 3% and 3,800 at 25%3% and 25% of 15,200
14₹1,470 crore; it equals the value of the final output (value added) of the economy730 + 200 + 170 + 370
15profit ₹72,800; others ₹109,20040% of 182,000
16(a) households (b) government—
17The Great Depression showed long mass unemployment that micro theory could not explain; Keynes’s 1936 book studied the economy as a whole.—
18(a) people working for a wage paid by employers (b) private firms hiring wage labour for profit (c) the economy’s dealings with other countries—
19(a) 3,674 (b) about ₹409 crore (c) Older theory could not explain long mass unemployment; Keynes’s General Theory (1936) studied the economy as a whole.(25 − 3)% of 16,700; 67% of 610
20(a) ₹1,350 crore (b) ₹50 crore (c) households receive factor incomes from firms; exports and imports link firms and households with the external sector.780 + 170 + 190 + 210; 220 − 170