| 1. |
The economic problem arises since |
| A. | wants are unlimited |
| B. | resources are limited |
| C. | resources are capable of alternative uses |
| D. | all of the above |
| Answer» D. all of the above | |
| 2. |
Economic problem arises in |
| A. | planned economies |
| B. | free market economies |
| C. | mixed economies |
| D. | all of the above |
| Answer» D. all of the above | |
| 3. |
The resources are : |
| A. | limited |
| B. | unlimited |
| C. | not only limited but are capable of alternative uses |
| D. | none of the above |
| Answer» C. not only limited but are capable of alternative uses | |
| 4. |
----- is not an example of free good |
| A. | sunlight |
| B. | car |
| C. | petrol |
| D. | computer |
| Answer» A. sunlight | |
| 5. |
The term production refers to: |
| A. | producing things which are capable of satisfying human wants |
| B. | creation or addition of utilities |
| C. | transformation of inputs into output |
| D. | all of the above |
| Answer» D. all of the above | |
| 6. |
The problem of allocation of resources is concerned with: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | all of the above |
| Answer» A. what to produce | |
| 7. |
The distribution of national product among the members of the society is the problem of: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | all of the above |
| Answer» C. for whom to produce | |
| 8. |
Which one of the following come under macro economics: |
| A. | per capita income |
| B. | study of a firm |
| C. | individual income |
| D. | theory of factor pricing |
| Answer» A. per capita income | |
| 9. |
Which one of the following is not come under macro economics |
| A. | national income |
| B. | per capita income |
| C. | disposable income |
| D. | individual income |
| Answer» D. individual income | |
| 10. |
Partial equilibrium analysis come under: |
| A. | micro economics |
| B. | macro economics |
| C. | welfare economics |
| D. | international economics |
| Answer» A. micro economics | |
| 11. |
“The starting point of all economic activity is the existence of human wants” Who said this? |
| A. | adam smith |
| B. | selligman |
| C. | ricardo |
| D. | alfred marshall |
| Answer» B. selligman | |
| 12. |
Production and consumption takes place simultaneously in the case of |
| A. | goods |
| B. | services |
| C. | both in the case of goods and services |
| D. | neither in the case of goods and services |
| Answer» B. services | |
| 13. |
Economic growth can be achieved through |
| A. | advanced technology |
| B. | expansion of resources |
| C. | both a & b |
| D. | neither a & b |
| Answer» C. both a & b | |
| 14. |
Micro economics doesn’t deal with: |
| A. | the study of individual economic units |
| B. | determination of factor prices |
| C. | price determination of commodities |
| D. | general equilibrium analysis |
| Answer» D. general equilibrium analysis | |
| 15. |
Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis. |
| A. | adam smith |
| B. | alfred marshall |
| C. | ragner frisc |
| D. | p a samuelson |
| Answer» C. ragner frisc | |
| 16. |
Transformation of inputs into outputs is known as |
| A. | production |
| B. | consumption |
| C. | distribution |
| D. | exchange |
| Answer» A. production | |
| 17. |
----- is an example of secondary input |
| A. | land |
| B. | labour |
| C. | capital |
| D. | raw material |
| Answer» D. raw material | |
| 18. |
Odd-man out from the following |
| A. | steel |
| B. | medicine |
| C. | education |
| D. | train |
| Answer» C. education | |
| 19. |
The choice of techniques of production is related to the problem of |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | none of the above |
| Answer» B. how to produce | |
| 20. |
The functional relationship between inputs and outputs is called |
| A. | production function |
| B. | consumption function |
| C. | investment function |
| D. | saving function |
| Answer» A. production function | |
| 21. |
Firms owned by one individual is known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» A. proprietorship | |
| 22. |
Firms owned by two or more individuals is known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» B. partnership | |
| 23. |
Firms owned by stock holders are known as |
| A. | proprietorship |
| B. | partnership |
| C. | corporations |
| D. | none of the above |
| Answer» C. corporations | |
| 24. |
The major objective of a firm is |
| A. | profit maximization |
| B. | revenue maximization |
| C. | sales maximization |
| D. | none of the above |
| Answer» A. profit maximization | |
| 25. |
Which one of the following is an example of fixed input |
| A. | raw materials |
| B. | casual workers |
| C. | plant and equipments |
| D. | all of the above |
| Answer» C. plant and equipments | |