1. The subject matter of economics is distributed into __________ parts.
Correct : C. four
2. The concept of ‘Consumer Surplus’ was introduced in Economics by
Correct : D. Prof. Marshall
3. In the case of rare coins, supply curve will be
Correct : B. Vertical
4. When the price elasticity of demand is equal to one, the demand curve is
Correct : A. rectangular hyperbola
5. Which one of the following is not a factor of production?
Correct : D. Bank Loan
6. The ‘Law of Variable Proportion’ was first developed by
Correct : B. Prof. Marshall
7. Which one of the following cost can never become zero?
Correct : B. Fixed cost
8. All the factors of production become variable in the
Correct : B. long run
9. Marginal cost is defined as
Correct : A. the change in total cost due to one unit change in output.
10. If a firm produces 200 units of commodity X by employing 10 workers and 240 units of the
same commodity by employing 12 workers, then the Average Product of the worker is
Correct : A. 20
11. Which one of the following is a feature of a perfect competition?
Correct : C. Homogenous Product
12. In the case of a perfectly competitive firm, the demand curve for product is
Correct : C. perfectly elastic
13. Cartel is one form of
Correct : C. collusive oligopoly
14. Dynamic Pricing is mostly followed by
Correct : C. On-line Companies
15. PT = MV is the equation suggested by
Correct : C. Irving Fisher
16. All the following functions are associated with commercial bank except that
Correct : A. Commercial Bank cannot issue Paper Notes
17. Gresham’s Law is true where
Correct : D. Both Paper and Metal Currencies operates
18. Quantity Theory of Money states that 3
Correct : A. Price Level is directly proportional to Money Supply
19. The Growth definition of Economics was introduced by
Correct : A. J.M.Keynes and P.A. Samuelson
20. According to the ‘Law of Demand, demand varies ________ with price.
Correct : D. Inversely
21. When excess demand occurs in an unregulated market, there is a tendency for:
Correct : A. price to rise
22. In the case of inferior goods, the consumer
Correct : A. purchases less with increase in income
23. Let a firm employs 10 labourers to produce 150 units of output. If 11 labourers are employed to produce 166 units of output, then the marginal product is
Correct : B. 16
24. A rational producer produces in that region where
Correct : D. marginal physical product of the variable input becomes declining
25. In a firm doubles all inputs, and output doubles as well, the firm is subject to
Correct : A. constant returns to scale
26. As output increases, AFC of a firm
Correct : C. continuously declines
27. Which of the first order condition for the profit of a firm be maximum?
Correct : B. MC = MR
28. Opportunity cost is measured in terms of the
Correct : D. next best alternative that has been foregone
29. Due to the operation of ‘Laws of return to Scale’ LAC curve is
Correct : B. U-Shaped
30. The AR curve and industry demand curve are identical
Correct : D. in case of perfect competition
31. OPEC is an example of
Correct : D. Cartel
32. The relationship between money supply and price level is
Correct : C. Proportional
33. Cash Balance Approach was given by
Correct : D. Cambridge University Professors
34. Which one of the following functions of commercial banks include collection of cheques,
drafts, bill of exchange etc. of their customers from other banks?
Correct : A. Agency Function
35. Which one of the following is the apex bank for agricultural credit in India?
Correct : D. NABARD
36. Which of these would lead to fall in demand for money?
Correct : C. Increase in Real Rate of Interest
37. The rate at which the commercial banks borrow from the Reserve Bank of India is called as
Correct : D. Bank rate
38. Commercial banks provide collateral loans against
Correct : A. Government Security
39. ________ defined economics as a science which deals with wealth.
Correct : A. J.B. Say
40. _________ goods are known as scarce goods.
Correct : A. Economic
41. _________ is the first Law of Consumption.
Correct : A. The Law of Diminishing Marginal Utility
42. Factors of production may be of _______ types.
Correct : A. 4
43. The Law of Variable Proportions relates to _________ only.
Correct : B. short – run
44. The total ___________ curve will be a horizontal line.
Correct : B. Fixed cost
45. The supply curve always slopes ___________
Correct : A. Upwards
46. __________ is the centre of all marketing policies.
Correct : B. Product
47. In the long run, a firm in perfect competition earns _____________
Correct : A. normal profit only
48. Oligopoly means _________
Correct : B. few sellers
49. Penetration Pricing is adopted by following a ___________
Correct : A. low price
50. When the price of a complementary product falls, the demand for the other product will ___
Correct : B. Increase
51. The primary functions of money are of ______ types.
Correct : A. 2
52. The money supply affects the rate of interest; when the money supply increases, rate of
interest will be decreased. It is explained by _____________
Correct : A. Keynes
53. SDRs are used in place of _________
Correct : B. gold
54. __________ is one among the qualitative credit control instruments used by the RBI.
Correct : B. Moral Suasion
55. Money market is controlled by the ___________
Correct : A. RBI
56. On the basis of functions, financial markets are classified into _________ types.
Correct : D. 2
57. The ‘Welfare definition’ of Economics was introduced by ______________
Correct : B. Alfred Marshall
58. Micro-economics deals with the ___________
Correct : A. economic behavior of the individual
59. Point Elasticity was propounded by ________________
Correct : A. Alfred Marshall
60. Production creates __________ utility.
Correct : C. Form
61. A Production Function refers to ________________
Correct : C. relationship between inputs and output
62. __________ cost remains constant even if production is stopped.
Correct : A. Fixed
63. ________ refers to the quantity of a commodity which a firm is willing to produce and offer for
sale.
Correct : A. Individual Supply
64. On the basis of area, markets are classified into _________ types.
Correct : B. 3
65. Total input is maximum when _____________
Correct : A. MP = 0
66. Which of the following does not characterize monopolistic competition?
Correct : C. absence of advertising 8
67. Pricing for selling the same commodity at different selling prices is known as ______
Correct : B. Differential Pricing
68. In a perfect competition, a firm earns super normal profit when the AR of the firm _____ the
ACT of the firm.
Correct : B. exceeds
69. ________ refers to the market situations whether there is one seller and there is not close
substitute to the commodity sold by the seller.
Correct : B. Monopoly
70. Cash Money is created by the _________________
Correct : A. Central Bank of a country
71. “Money is what money does”. This definition was given by __________
Correct : B. Walker
72. Traditional function of a commercial bank is ______________
Correct : D. acceptance of deposits
73. ________ is one among the quantitative methods of credit control.
Correct : A. Bank Rate Policy
74. Securities market in India is regulated by the ___________
Correct : C. SEBI
75. ___________ market is the nerve centre of the financial system.
Correct : A. Money
76. _____________ is the father of Economics. 9
Correct : A. Adam Smith
77. ___________ is an act to use the goods or service to satisfy the wants.
Correct : B. Consumption
78. The Law of Diminishing Marginal Utility was developed by ____________
Correct : B. Alfred Marshall
79. _________ demand is also known as Direct Demand.
Correct : B. Autonomous
80. Total Outlay Method of measuring Elasticity of Demand was introduced by _________
Correct : B. Alfred Marshall
81. When two or more different goods are produced together by a single firm, it is called as
_________ supply.
Correct : A. joint
82. ___________ is a gift of nature.
Correct : A. Land
83. There are _______ stages of the Law of Variable Proportions
Correct : B. 3
84. Which factor of production is considered as a produced means of production?
Correct : C. Capital
85. ________ means transformation of physical inputs into output.
Correct : B. Production
86. __________ cost is also known as Alternative Cost.
Correct : A. Opportunity
87. The additional cost incurred to produce an additional unit of output is _______
Correct : A. Marginal cost
88. On the basis of time element, markets can be classified into __________ types.
Correct : B. 3
89. ________ competition exists when the basic features of Perfect Competition are not present.
Correct : C. Imperfect
90. The ____ states that bad money drives good money out of circulation.
Correct : C. Gresham’s Law
91. Quantity Theory of Money was explained by ___________
Correct : A. Fisher
92. __________ account can be opened by business persons only.
Correct : A. Current Deposit
93. In India, Central Bank was established in _________
Correct : C. 1935
94. Wealth was defined by
Correct : B. Adam Smith
95. Income minus Savings is equal to ___________
Correct : A. Consumption
96. ______ means the desire backed by the necessary purchasing power.
Correct : D. Demand
97. If the proportionate change in the supply is equal to the proportionate change in price, it is
said to be _______ supply.
Correct : A. Unitary Elastic
98. Production creates _________ utility.
Correct : C. Form
99. Law of Variable Proportions was developed by _____________
Correct : A. Alfred Marshall
100. The average _________ and output have inverse functional relationship.