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 |