McqMate
| 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 | |
| 26. |
The quantity demanded of a product increases when |
| A. | the consumers suddenly want more of the goods |
| B. | the consumers level of income falls |
| C. | the price of the product falls |
| D. | more buyers of the goods enter the market |
| Answer» C. the price of the product falls | |
| 27. |
Two goods that are used jointly to provide satisfaction are called |
| A. | inferior goods |
| B. | normal goods |
| C. | complementary goods |
| D. | substitute goods |
| Answer» C. complementary goods | |
| 28. |
Demand curve slopes downwards because of |
| A. | the law of diminishing marginal utility |
| B. | the income effect |
| C. | substitution effect |
| D. | all of the above |
| Answer» D. all of the above | |
| 29. |
If the income and substitution effect of a price increase works in the same direction the good whose price has changed is a |
| A. | giffen goods |
| B. | inferior goods |
| C. | normal goods |
| D. | superior |
| Answer» C. normal goods | |
| 30. |
Which of the following is not a survey method of demand forecasting |
| A. | consumers interview method |
| B. | expert opinion method |
| C. | barometric method |
| D. | collective opinion method |
| Answer» C. barometric method | |
| 31. |
Which of the following is not a method of demand forecasting |
| A. | trend projection method |
| B. | substitute approach |
| C. | sales experience approach |
| D. | evolutionary approach |
| Answer» A. trend projection method | |
| 32. |
Which one is not a property of isoquant |
| A. | downward sloping |
| B. | convex |
| C. | negative slope |
| D. | positive slope |
| Answer» D. positive slope | |
| 33. |
In which production function, the degree of homogeneity is always one |
| A. | cobb doubglas production fuction |
| B. | homogeneous production function |
| C. | linear homogeneous production function |
| D. | none of these |
| Answer» C. linear homogeneous production function | |
| 34. |
Which of the following is a short run law |
| A. | law of diminishing returns |
| B. | law of constant returns to scale |
| C. | law increasing returns to scale |
| D. | none of these |
| Answer» A. law of diminishing returns | |
| 35. |
Which of the following is not a variable input |
| A. | raw material |
| B. | power |
| C. | equipment |
| D. | none of these |
| Answer» C. equipment | |
| 36. |
Which cost is more useful for decision making |
| A. | opportunity cost |
| B. | sunk cost |
| C. | historical cost |
| D. | none of these |
| Answer» A. opportunity cost | |
| 37. |
Which cost are recorded in books of accounts |
| A. | opportunity cost |
| B. | implicit cost |
| C. | social cost |
| D. | explicit cost |
| Answer» D. explicit cost | |
| 38. |
Fixed cost per unit increases when |
| A. | volume of production decreases |
| B. | volume of production increases |
| C. | variable cost per unit decreases |
| D. | none of these |
| Answer» A. volume of production decreases | |
| 39. |
Variable cost per unit |
| A. | remains fixed |
| B. | varies with the volume of production |
| C. | varies with sales |
| D. | none of these |
| Answer» B. varies with the volume of production | |
| 40. |
Firms in a oligopoly |
| A. | are independent of each other’s action |
| B. | can each influence the market price |
| C. | charge a price equal to marginal revenue |
| D. | all of these |
| Answer» B. can each influence the market price | |
| 41. |
Duopoly is |
| A. | another name for monopoly |
| B. | special type of monopolistic competition |
| C. | two firm oligopoly |
| D. | none of these |
| Answer» C. two firm oligopoly | |
| 42. |
Product differentiation is an important feature of |
| A. | perfect competition |
| B. | monopolistic competiton |
| C. | monopoly |
| D. | none of these |
| Answer» B. monopolistic competiton | |
| 43. |
Globalisation has created new opportunities of |
| A. | establishing rules of domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» D. none of these | |
| 44. |
Removing barriers or restrictions set by the government is called |
| A. | liberalization |
| B. | investment |
| C. | favourable trade |
| D. | free trade |
| Answer» A. liberalization | |
| 45. |
WTO aims at |
| A. | establishing rules for domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» C. liberalizing international trade | |
| 46. |
What are “hawala transaction” |
| A. | foreign trade in goods that are banned by the government. |
| B. | transfer of money without actually moving it |
| C. | illegal drug trade at the international level |
| D. | conversion of black money into white money |
| Answer» B. transfer of money without actually moving it | |
| 47. |
Which of the following is a measure to control inflation. |
| A. | granting of credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» B. raising bank rate | |
| 48. |
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 rates |
| D. | none of these |
| Answer» B. social securities | |
| 49. |
The most outstanding feature of the capitalist economic system is |
| A. | unemployment |
| B. | poverty |
| C. | nequality of income |
| D. | industrial backwardness |
| Answer» C. nequality of income | |
| 50. |
Which of the following is a social consequence of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastage of resources |
| D. | none of these |
| Answer» B. loss of income and respect | |
| 51. |
The 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 | |
| 52. |
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 | |
| 53. |
India’s economy growth is primarily driven by |
| A. | industry |
| B. | agriculture |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 54. |
In which exchange rate system, exchange rate is fixed by the monetary authority |
| A. | flexible exchange rate system |
| B. | fixed exchange rate system |
| C. | managed floating exchange rate system |
| D. | none of these |
| Answer» B. fixed exchange rate system | |
| 55. |
Direct foreign investment is part of |
| A. | current account |
| B. | fixed account |
| C. | long term account |
| D. | financial account |
| Answer» D. financial account | |
| 56. |
MNC |
| A. | always produce primary goods |
| B. | always produce manufactured goods |
| C. | always produce service, |
| D. | may produce primary or manufactured goods |
| Answer» D. may produce primary or manufactured goods | |
| 57. |
One major initiative to attract foreign companies to invest in india is |
| A. | raise the standard of education |
| B. | to promote unemployment in the public sector |
| C. | to build up special economic zones |
| D. | both a & b |
| Answer» C. to build up special economic zones | |
| 58. |
The portfolio investment by foreign institutional investor is |
| A. | fdi |
| B. | fii |
| C. | bop |
| D. | sdr |
| Answer» A. fdi | |
| 59. |
Under the new trade policy, import licensing was abolished except in case of |
| A. | textile industry |
| B. | consumer goods industry |
| C. | it industry |
| D. | hazardous and environmentally sensitive industry |
| Answer» D. hazardous and environmentally sensitive industry | |
| 60. |
Where do MNCs choose to set up production? |
| A. | cheap goods, |
| B. | cheap labour resources |
| C. | economic sustainability |
| D. | none of these. |
| Answer» B. cheap labour resources | |
| 61. |
Cargil foods, an MNC has bought over which indigenous Indian company? |
| A. | amul |
| B. | britannia |
| C. | parakh foods |
| D. | dabur |
| Answer» C. parakh foods | |
| 62. |
For motors entered the Indian automobile business in collaboration with which Indian manufacturer? |
| A. | mahindra and mahindra |
| B. | tata motors |
| C. | maruthi suzuki |
| D. | hindustan motors |
| Answer» A. mahindra and mahindra | |
| 63. |
Trade between countries |
| A. | determines prices of products in different countries |
| B. | decreases competition between countries |
| C. | makes a country dependent on the other |
| D. | none of these |
| Answer» A. determines prices of products in different countries | |
| 64. |
Globalization by connecting countries leads to |
| A. | lesser competition among producers |
| B. | greater competition among producers |
| C. | no competition between producers |
| D. | none of these |
| Answer» B. greater competition among producers | |
| 65. |
If tax is imposed on Chinese toys, what will happen? |
| A. | chinese toy makers will benefit |
| B. | indian toy makers will proposer |
| C. | chinese toys will remain cheap, |
| D. | indian consumers will buy more chinese toys |
| Answer» B. indian toy makers will proposer | |
| 66. |
Which of the following is an example of a trade barrier? |
| A. | foreign investment |
| B. | delay or damage of goods |
| C. | tax on imports |
| D. | none of these |
| Answer» C. tax on imports | |
| 67. |
Which out of the following industries has a large number of well off buyers in urban areas? |
| A. | footwear |
| B. | automobile |
| C. | jewellery |
| D. | clothing and accessories |
| Answer» B. automobile | |
| 68. |
Automatic fiscal stabilizers |
| A. | Keep the federal budget balanced |
| B. | Keep the federal high employment budget balanced |
| C. | Help to reduce the severity of recessions and inflationary boom periods |
| D. | Increases structural deficits over the business cycle |
| Answer» C. Help to reduce the severity of recessions and inflationary boom periods | |
| 69. |
The higher the marginal income tax rate, the |
| A. | Higher the MPC out of disposable income |
| B. | Lower the MPC out of disposable income |
| C. | Highest the autonomous expenditure multiplier |
| D. | lower the autonomous expenditure multiplier |
| Answer» D. lower the autonomous expenditure multiplier | |
| 70. |
Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be |
| A. | 1 |
| B. | -2. |
| C. | 2.5 |
| D. | 2 |
| Answer» B. -2. | |
| 71. |
Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by |
| A. | -20 units |
| B. | 10 units |
| C. | 20 units |
| D. | 40 units |
| Answer» C. 20 units | |
| 72. |
If the tax function is given by T= -20+0.1 Y the average tax rate would |
| A. | Be 0.1 |
| B. | Fall as income falls |
| C. | Vary negatively with income |
| D. | Be -20 _0.1 |
| Answer» B. Fall as income falls | |
| 73. |
The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget |
| A. | Should require actual deficits be equal to zero on average |
| B. | Should go into a surplus at appropriate points in the business cycle. |
| C. | Cannot have a structural deficit component |
| D. | Both a & b |
| Answer» B. Should go into a surplus at appropriate points in the business cycle. | |
| 74. |
If the tax function is T= t0+t1y where t1 equals 1/3,and if the marginal propensity to consume out of disposable income is 3/4 , then the change in GDP oer unit change into t0 (∆Y/∆ t0) will be |
| A. | -1 |
| B. | +1 |
| C. | -1.5 |
| D. | -2 |
| Answer» C. -1.5 | |
| 75. |
In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by |
| A. | 10 units |
| B. | 11.2 units |
| C. | 22.4 units |
| D. | 30 units |
| Answer» B. 11.2 units | |
| 76. |
Advocates of the public-choice view argue that voting behaviour is influenced by the |
| A. | Rate of inflation prior to an election. |
| B. | Level of economic activity. |
| C. | “Favourite son syndrome. |
| D. | Campaign issues |
| Answer» B. Level of economic activity. | |
| 77. |
According to the partisan theory, |
| A. | Politicians are viewed as working only for their own welfare. |
| B. | There are two parties with flexible goals |
| C. | Moderates and liberals often switch political goals |
| D. | Macroeconomic policy is not a key focus of most politicians |
| Answer» A. Politicians are viewed as working only for their own welfare. | |
| 78. |
Which of the following statements is(are) correct? |
| A. | Even the earliest political business cycle and partisan models assume that expectations were rational |
| B. | The partisan model of fiscal policy cannot be modified to be consistent with rational expectations |
| C. | The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations |
| D. | The earliest political business cycle models assumed that expectations were always rational, whereas the partisan model assumed that expectations were sometimes irrational. |
| Answer» C. The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations | |
| 79. |
When automatic fiscal stabilizers are in place, a shock that causes a fall in the kevel of economic activity automatically |
| A. | Results in a decline in the federal budget deficit that lessens the fall in income |
| B. | Results in a rise in the federal deficit that lessens the fall in income |
| C. | Requires the federal government to balance the budget |
| D. | Will lead to a permanent increase in the budget deficit |
| Answer» B. Results in a rise in the federal deficit that lessens the fall in income | |
| 80. |
According to the Keynesian model, the optimal fiscal policy is to |
| A. | Increase cyclical but not structural deficits during a recession |
| B. | Reduce cyclical and structural deficits during a recession |
| C. | Increase structural deficits during a recession |
| D. | Maintain a balanced budget in case of national emergency |
| Answer» A. Increase cyclical but not structural deficits during a recession | |
| 81. |
Which of the following are the most frequently utilized tools of fiscal policy in the United States? |
| A. | Indirect business taxes |
| B. | Corporate income taxes |
| C. | Inheritance taxes |
| D. | Personal income taxes |
| Answer» D. Personal income taxes | |
| 82. |
Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion. Then, what is the structural deficit? |
| A. | $180 billion |
| B. | $120 billion |
| C. | $220 billion |
| D. | $80 billion |
| Answer» D. $80 billion | |
| 83. |
The structural deficit is |
| A. | Directly attributable to the long-run behaviour of the economy |
| B. | Not directly attributable to the cyclical behaviour of the economy |
| C. | The result of permanent decisions policymakers have made about tax rates, the level of government spending, and benefit levels for transfer programs. |
| D. | Both b and c |
| Answer» D. Both b and c | |
| 84. |
According to the Keynesians, |
| A. | An easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s |
| B. | An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s |
| C. | There was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s |
| D. | Budget deficits and trade deficits should not be a source of concern |
| Answer» B. An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s | |
| 85. |
During the recession of 2001, |
| A. | There were a number of proposals for tax increases or spending cuts to stir the economy, but the failed due to worries about their effects on the already largedeficit |
| B. | A series of tax cuts were passed, though the only occurred in late 2001 |
| C. | All the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit |
| D. | The cyclical deficit increased but the structural deficit remained unchanged |
| Answer» B. A series of tax cuts were passed, though the only occurred in late 2001 | |
| 86. |
Advocates of the public-choice view argue that elected officials |
| A. | Will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies |
| B. | Will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies |
| C. | Will always respond to both inflation and unemployment with expansionary policies |
| D. | None of the above |
| Answer» D. None of the above | |
| 87. |
Which of the following statements are(is) correct? |
| A. | Expansionary monetary policy and expansionary fiscal that leads to budget deficits create low interest rates |
| B. | High interest rates in the first half of the 1980s resulted from falls in the budget deficit under the Reagan administration |
| C. | The best monetary-fiscal policy mix to keep interest rates low would be to raise taxes and raise the money supply |
| D. | The answer depends upon the school of thought used to evaluate the effects of deficit policies |
| Answer» D. The answer depends upon the school of thought used to evaluate the effects of deficit policies | |
| 88. |
Assuming a simultaneous deduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will |
| A. | be higher than before |
| B. | be lower than before |
| C. | remain constant |
| D. | none of the above |
| Answer» C. remain constant | |
| 89. |
From the net tax function: T=t0+t1Y,where t0<0 and t1>0, it follows that, as income rises |
| A. | average taxes falls and the surplus declines |
| B. | average taxes rises and the deficit increases |
| C. | average taxes falls and the deficit declines |
| D. | average taxes and the deficit do not change |
| Answer» C. average taxes falls and the deficit declines | |
| 90. |
The structural deficit is the deficit that |
| A. | Is composed by of non discretionary spending by the federal government |
| B. | Results from the economy being below is natural rate of output |
| C. | Exists when output is at its natural rate of output |
| D. | Results from temporary tax cuts |
| Answer» C. Exists when output is at its natural rate of output | |
| 91. |
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy |
| A. | Increases exports and decreases imports |
| B. | Decreases exports and increases imports |
| C. | Encourages foreign capital inflows to the U.S. |
| D. | Both b and c |
| Answer» D. Both b and c | |
| 92. |
The cyclical deficit is that portion of the deficit |
| A. | That results form the economy being below the natural rate of output |
| B. | That would exist even if the economy were at its natural rate of output |
| C. | Is a function of the level of automatic stabilizers |
| D. | Both a & c |
| Answer» D. Both a & c | |
| 93. |
Automatic stabilizers drive changes in |
| A. | The total deficit |
| B. | The cyclical deficit |
| C. | The structural deficit |
| D. | Monetary policy |
| Answer» B. The cyclical deficit | |
| 94. |
According to the concept of rational expectations |
| A. | Budget deficits are irrelevant to output in the short-run |
| B. | Higher deficits should increase output in the short run if they are expected |
| C. | Lower deficits can be used to stabilize output during expansions |
| D. | None of these |
| Answer» A. Budget deficits are irrelevant to output in the short-run | |
| 95. |
The book ‘Asian Drama’ was written by |
| A. | A.C Pigou |
| B. | D. Ricardo |
| C. | Gunnar Myrdal |
| D. | Lionel Robbins |
| Answer» C. Gunnar Myrdal | |
| 96. |
The Historical school was based on |
| A. | Deductive method |
| B. | Inductive method |
| C. | Both of above |
| D. | None of these |
| Answer» B. Inductive method | |
| 97. |
Physiocrats give utmost importance to |
| A. | Services |
| B. | Industry |
| C. | Agriculture |
| D. | None of these |
| Answer» C. Agriculture | |
| 98. |
Feudalistic economy is dominated by |
| A. | Entrepreneur |
| B. | Worker |
| C. | Landlord |
| D. | None of these |
| Answer» C. Landlord | |
| 99. |
Adam Smith advocated |
| A. | Laissez Faire |
| B. | Division of Labour |
| C. | Both of these |
| D. | None of these |
| Answer» C. Both of these | |
| 100. |
A fall in the price of a commodity leads to |
| A. | A shift in demand |
| B. | A fall in demand |
| C. | A rise in the consumer’s real income |
| D. | A fall in the consumer’s real income |
| Answer» C. A rise in the consumer’s real income | |
Done Reading?