| 1. |
Which of the following statements is NOT TRUE of indifference curves? |
| A. | they could intersect |
| B. | they are convex to origin |
| C. | they are |
| D. | they exhibit higher levels of utility d. as you move from the origin |
| Answer» B. they are convex to origin | |
| 2. |
A consumer with a given income will maximise their utility when: |
| A. | the marginal utility derived from each commodity is equal. |
| B. | the marginal utility derived from each product consumed is zero. |
| C. | the total utility derived from each commodity consumed is equal. |
| D. | the marginal utilities derived from each commodity consumed are proportional |
| Answer» D. the marginal utilities derived from each commodity consumed are proportional | |
| 3. |
The typical indifference curve …….. |
| A. | shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good. |
| B. | shows all combinations of goods that give a consumer in same level of utility |
| C. | shifts out if income increases |
| D. | both b and c |
| Answer» B. shows all combinations of goods that give a consumer in same level of utility | |
| 4. |
The rate at which a consumer is able to substitute one good for another is determined by the ……. |
| A. | consumers income |
| B. | indifference map |
| C. | ratio of the prices of the goods |
| D. | marginal rate of substitution. |
| Answer» C. ratio of the prices of the goods | |
| 5. |
A utility function shows the relation between ….. |
| A. | the amount of goods consumed and a consumer utility. |
| B. | income and a consumer utility. |
| C. | prices and consumers utility. |
| D. | maximum utility and the price and income facing a consumer. |
| Answer» A. the amount of goods consumed and a consumer utility. | |
| 6. |
Which of the following is the measure to control inflation. |
| A. | granting credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» B. raising bank rate | |
| 7. |
Which of the following is a measure to reduce inequality of income |
| A. | promotion of industries |
| B. | social securities |
| C. | granting of credit to poor on concessional rate |
| D. | none of these |
| Answer» B. social securities | |
| 8. |
The most outstanding feature of capitalist economic system is … |
| A. | unemployment |
| B. | poverty |
| C. | inequality of income |
| D. | industrial backwardness |
| Answer» C. inequality of income | |
| 9. |
Employment of people who take jobs below their capacity is known as |
| A. | underemployment |
| B. | disguised unemployment |
| C. | cyclical unemployment |
| D. | none of these |
| Answer» A. underemployment | |
| 10. |
Which of the following is a social consequences of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastages of resources |
| D. | none of these |
| Answer» B. loss of income and respect | |
| 11. |
Unemployment caused by a decline in demand for production in a particular industry is |
| A. | seasonal unemployment |
| B. | frictional unemployment |
| C. | structural unemployment |
| D. | none of these |
| Answer» C. structural unemployment | |
| 12. |
Which of the following is not a development issue in india |
| A. | unemployment |
| B. | population pressure |
| C. | inflation |
| D. | decreasing trend of foreign capital |
| Answer» D. decreasing trend of foreign capital | |
| 13. |
Indian economy growth is primarily driven by |
| A. | industry |
| B. | agriculture |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 14. |
Law of equi-marginal utility was suggested by |
| A. | marshal |
| B. | robins |
| C. | hh ghosen |
| D. | none of these |
| Answer» B. robins | |
| 15. |
The concept of consumer surplus was developed by |
| A. | marshal |
| B. | hh ghosen |
| C. | bhentham |
| D. | none of these |
| Answer» A. marshal | |
| 16. |
Indifference curve analysis is based on the principles of |
| A. | consumer surplus |
| B. | diminishing marginal utility |
| C. | diminishing marginal rate of substitution |
| D. | none of these |
| Answer» C. diminishing marginal rate of substitution | |
| 17. |
The author of the wealth of nation is |
| A. | marshal |
| B. | robins |
| C. | adam smith |
| D. | none of these |
| Answer» C. adam smith | |
| 18. |
Macro economic theory is also known as |
| A. | price theory |
| B. | income theory |
| C. | demand theory |
| D. | none of these |
| Answer» A. price theory | |
| 19. |
The study of entire economic system is called |
| A. | macro economics |
| B. | micro economics |
| C. | economics |
| D. | none of these |
| Answer» A. macro economics | |
| 20. |
The author of “the wealth of nations” is |
| A. | marshal |
| B. | ricardo |
| C. | robins |
| D. | adam smith |
| Answer» D. adam smith | |
| 21. |
The study of international trade and national income is part of |
| A. | global economics |
| B. | macro economics |
| C. | positive economics |
| D. | micro economics |
| Answer» B. macro economics | |
| 22. |
If the income elasticity of demand is that one, the good is a |
| A. | necessity |
| B. | luxury |
| C. | substitute |
| D. | complement |
| Answer» B. luxury | |
| 23. |
The income elasticity of demand is negative for a |
| A. | positive good |
| B. | normal good |
| C. | elastic good |
| D. | inferior good |
| Answer» D. inferior good | |
| 24. |
If the price of DVRs fell and as a result the demand for VHS recorders fell we could conclude that VHS recorders DVRs are |
| A. | normal goods |
| B. | substitutes |
| C. | elastic goods |
| D. | unrelated |
| Answer» B. substitutes | |
| 25. |
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods |
| A. | income effect |
| B. | substitution effect |
| C. | price effect |
| D. | none of these |
| Answer» B. substitution effect | |