Quiznetik

Principles of Economics and Management | Set 1

1. Demand for a commodity refers to:

Correct : C. Amount of the commodity demanded at a particular price and at a particular time

2. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

Correct : A. Increase

3. Income elasticity of demand is defined as the responsiveness of:

Correct : A. Quantity demanded to a change in income

4. The supply of a good refers to:

Correct : D. D. Quantity of the good offered for sale at a particular price per unit of time

5. In the short run, when the output of a firm increases, its average fixed cost:

Correct : B. Decreases

6. The cost of one thing in terms of the alternative given up is called:

Correct : D. Opportunity cost

7. In which of the following market structure is the degree of control over the price of its product by a firm very large?

Correct : C. Monopoly

8. Demand for factors of production is:

Correct : A. Derived demand

9. The producer’s demand for a factor of production is governed by the ___ of that factor.

Correct : B. Marginal productivity

10. Who is the ‘lender of the last resort’ in the banking structure of India?

Correct : B. Reserve Bank of India

11. ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.

Correct : B. Bank rate

12. Which among the following is a function of the Reserve Bank of India?

Correct : B. Collecting and compilation of statistical information relating to banking & other financial sectors

13. The following is the direct tax among:

Correct : A. House tax

14. Which among the following is a cause of inflation?

Correct : A. Deficit financing

15. The capital that is consumed by an economy or a firm in the production process is known as:

Correct : D. Depreciation

16. Which of the following is also known as International Bank for Reconstruction and Development?

Correct : B. World Bank

17. A change in fiscal policy affects the balance of payments through:

Correct : C. Both, the current account and capital account

18. Fiscal Policy means:

Correct : C. Policy relating to government spending’ taxation and borrowing

19. Which one of the following is NOT the objective of fiscal policy of government of India?

Correct : C. Regulation of inter-state trade

20. Monetary policy is implemented by in India.

Correct : D. Reserve Bank of India

21. The most simple and popular method of measuring economic development is to calculate the trend of gross national product (GNP) at __________

Correct : B. Constant prices

22. By __ growth rate of an economy can be speeded up.

Correct : C. Investment in human capital formation

23. When national income is calculated with reference to a base year, it is called:

Correct : C. Real national income

24. Which market structure symbolizes the existence of ‘few sellers’?

Correct : A. Oligopoly

25. Which among the following are the factors that determine the national income of a country?

Correct : D. All of the above

26. Management is a creative and ________ process.

Correct : A. Continuous

27. Which type of strategies do professional managers help organizations in chalking out?

Correct : B. Corporate

28. Management exists at the ______ level of the organization.

Correct : D. All of the above

29. Management is said to be the combination of

Correct : A. Arts, science and profession

30. ______ is supposed to be immutable, unchanging and eternal.

Correct : A. Policy

31. Positive motivation makes people willing to do their work in the best way they can and improve their ________.

Correct : C. Performance

32. The objective in corporate governance is

Correct : D. All of the above

33. The heart of administration is the _____ function.

Correct : A. Directing

34. Direction is a ________ function performed by all the managers at all levels of the organization.

Correct : A. Managerial

35. _______ is a tool for corporate governance.

Correct : C. Communication

36. The internal environment factor that influence management is

Correct : D. All of the above

37. Management is said to be the combination of three factors, arts, science and the third is

Correct : A. Profession

38. One of the popular forecast is

Correct : C. C Deman

39. Limitation of business planning is

Correct : D. All of the above

40. In management process, the most misinterpreted word is

Correct : A. Organizing

41. Management as a discipline is the function of ____.

Correct : C. Creativity

42. The word _______ denotes a function, a task, a discipline.

Correct : A. Management

43. Costliness of the ________ is the overriding factor determining the extent of decentralization.

Correct : A. Decision

44. ______ is a tool for corporate governance.

Correct : B. Communication

45. The higher the ________ level of the employee, the lower the job satisfaction.

Correct : B. Educational

46. Management is a creative and ________ process.

Correct : B. Continuous

47. Economics is a study of wealth(Assets) said by _____.

Correct : A. Adam smith

48. In concept of Economics, Macro means _____.

Correct : B. Large

49. In concept of Economics, Micro means _____.

Correct : A. Small

50. Quantity of a product people are willing to buy at a certain price is known as ______.

Correct : C. Deman

51. Quantity of a certain goods producers are willing to supply when receiving a certain price is known as ______.

Correct : A. Supply

52. A point where the quantity of goods being supplied is exactly the same as the quantity of goods being demanded is known as _______

Correct : D. Equilibrium

53. If all other factors remain equal, the higher the price of a good, the fewer people will demand that good means what?

Correct : A. The law of demand

54. Producers supply more at a higher price because selling more quantity at higher price increase revenue means what?

Correct : B. The law of supply

55. Which are the factors of production?

Correct : D. All of the above

56. Which is the stages of law of variable proportions?

Correct : D. All of the above

57. Which is the stages of law of returns to scale?

Correct : D. All of the above

58. Which is not a part of cost?

Correct : C. Changeable Cost

59. To find out cut-off production volume means no profit no loss which concept is used?

Correct : B. Break-Even Analysis

60. Total Cost equals to ______.

Correct : A. Total cost = total fixed cost + total variable cost

61. Where is exchange of goods and services take place?

Correct : C. Market

62. Which is the type of market?

Correct : D. All of the above

63. _______ refers to a market with a single seller.

Correct : A. Monopoly

64. Full form of GNP.

Correct : D. Gross National Product

65. Full form of GDP.

Correct : A. Gross Domestic Products

66. What is Disposable Personal Income?

Correct : A. DPI = PI – Income Tax paid

67. _______ is about not having enough money to meet basic needs including Food, Clothing and Home.

Correct : A. Poverty

68. A situation in which a person is jobless is knows as _____.

Correct : C. Unemployment

69. Which is the types of unemployment?

Correct : D. All of the above

70. ______ is defined as a continuous increase in the general level of prices for goods and services

Correct : B. Inflation

71. _______ is an economic good that acts as a medium of exchange in transaction.

Correct : A. Money

72. Identify the function of money.

Correct : D. All of the above

73. Which one is known as plastic money?

Correct : C. Credit or Debit cards

74. From which policy government adjusts its spending levels and tax rates to monitor and influence a nation’s economy.

Correct : A. Fiscal policy

75. Financial activities done by bank is called _____.

Correct : C. Banking

76. Which is the function of bank?

Correct : C. Both A and B

77. ______ is India’s central banking institution, which controls the monetary policy of the Indian rupee.

Correct : A. RBI

78. Which is the function of RBI?

Correct : D. All of the above

79. ________ is a science as well as an art.

Correct : A. Management

80. Which is types of Management?

Correct : D. All of the above

81. ______ is the ultimate source of authority.

Correct : A. Top management

82. Which is the skills of management?

Correct : D. All of the above

83. Which is the principles of management?

Correct : D. All of the above

84. Which is the function of management?

Correct : D. All of the above

85. _______ is function of management.

Correct : B. Staffing

86. ______ is an organized group of people with a particular purpose.

Correct : A. Organization

87. Which one is the characteristics of organization?

Correct : D. All of the above

88. Function of organization is _________.

Correct : D. All of the above

89. Which is the types of organization?

Correct : D. All of the above

90. Power and authority is kept under top management is known as?

Correct : A. Centralization

91. Which is the characteristics of corporate social responsibility(CSR)

Correct : D. All of the above

92. Which is the advantages of corporate social responsibility(CSR)

Correct : D. All of the above

93. The total demand for goods and services in an economy is known as

Correct : A. Aggregate demand

94. A Recession is ______

Correct : B. A period during which aggregate output declines

95. Macroeconomics Is The Branch Of Economics That Deals With

Correct : A. The Economy As A Whole

96. The Practice Of Using Fiscal And Monetary Policy To Stabilize The Economy Is Known as

Correct : A. Fine Tuning Of Demand

97. According To The Classical Economists, The Economy

Correct : D. Is Self-Correcting

98. Identify The Three Motives Of Money Demand:

Correct : B. Speculative, Transaction, Precautionary

99. The Rate At Which Central Bank Lends To Commercial Banks Is Known As:

Correct : B. Discount Rate

100. An Expansionary Fiscal Policy Can:

Correct : A. Raise The National Debt