McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 1. |
The curve showing the possibilities of production of desired good is known as: |
| A. | indifference curve |
| B. | production possibility curve |
| C. | revealed preference curve |
| D. | none of these |
| Answer» B. production possibility curve | |
| 2. |
Which one of the following definition of Economics is associated with the name of Lionel Robbins? |
| A. | welfare definition |
| B. | scarcity definition |
| C. | growth definition |
| D. | wealth definition |
| Answer» B. scarcity definition | |
| 3. |
A hypothesis is tested by: |
| A. | the realism of its assumptions |
| B. | the lack of realism of its assumptions |
| C. | its ability to predict accurately an outcome that follows logically from the assumptions |
| D. | none of these |
| Answer» C. its ability to predict accurately an outcome that follows logically from the assumptions | |
| 4. |
In a free enterprise economy, the problems of what, how and for whom to produce are solved by : |
| A. | a planning committee |
| B. | the price mechanism |
| C. | the planning commission |
| D. | none of these. |
| Answer» B. the price mechanism | |
| 5. |
Who considered Political Economy as “an enquiry into the nature and causes of the wealth of nations”? |
| A. | adam smith |
| B. | j.b.say |
| C. | marshall |
| D. | keynes |
| Answer» A. adam smith | |
| 6. |
Which of the following definitions of Economics include the economic concept of ‘scales of Preferences’? |
| A. | wealth definition |
| B. | welfare definition |
| C. | scarcity definition |
| D. | growth definition |
| Answer» C. scarcity definition | |
| 7. |
Which of the following embodies a more widely accepted definition of economics? |
| A. | science of material welfare |
| B. | science of wealth |
| C. | a study of mankind in the ordinary business of life |
| D. | science of making choice. |
| Answer» D. science of making choice. | |
| 8. |
The fundamental problem faced by an economy is one of : |
| A. | exchange |
| B. | decision making by the government |
| C. | economic welfare |
| D. | scarcity of resources and multiplicity of wants. |
| Answer» D. scarcity of resources and multiplicity of wants. | |
| 9. |
Production possibilities curve does not show: |
| A. | what to produce |
| B. | how to produce |
| C. | for whom to produce |
| D. | productive potential under conditions of underemployment |
| Answer» D. productive potential under conditions of underemployment | |
| 10. |
State whether Economics is : |
| A. | a positive science only |
| B. | neither a positive science |
| C. | a science but not art |
| D. | a science or an art depending on who uses economics and for what purpose. |
| Answer» D. a science or an art depending on who uses economics and for what purpose. | |
| 11. |
Who of the following emphasized the normative aspect of Economics as a science? |
| A. | the english classical school |
| B. | lionel robbins |
| C. | the german historical school |
| D. | none of these. |
| Answer» C. the german historical school | |
| 12. |
Of the following economists who is considered as master of partial analysis? |
| A. | alfred marshall |
| B. | a.c.pigou |
| C. | j.m.keynes |
| D. | j.s.mill. |
| Answer» A. alfred marshall | |
| 13. |
Which of the following statements has been drawn by inductive method? |
| A. | a consumer will buy from the cheapest market |
| B. | all businessmen wish to buy at low price and sell at high price |
| C. | a private firm will try to maximize its profits |
| D. | the larger the stock of money with a person, the lower is the utility that he |
| Answer» B. all businessmen wish to buy at low price and sell at high price | |
| 14. |
What is true for deductive method? |
| A. | abstract |
| B. | realistic |
| C. | economic conditions assumed to be changing |
| D. | supported by historical school. |
| Answer» A. abstract | |
| 15. |
What is true for inductive method? |
| A. | hypothetical |
| B. | empirical |
| C. | ignores experimentation |
| D. | static |
| Answer» B. empirical | |
| 16. |
Find out the correct statement: |
| A. | prediction of economic models cannot be refuted by empirical evidence |
| B. | models transform verbal expressions in to more scientific expressions |
| C. | models make no assumptions |
| D. | economic models are comprehensive and not partial |
| Answer» B. models transform verbal expressions in to more scientific expressions | |
| 17. |
Micro economic theory studies how a free enterprise economy determines: |
| A. | the price of goods |
| B. | the price of services |
| C. | the price of resources |
| D. | all of these. |
| Answer» A. the price of goods | |
| 18. |
Which aspect of taxation involves normative economics? |
| A. | the incidence of the tax |
| B. | the fairness of the tax |
| C. | the effect of the tax on incentives to work |
| D. | all of the above |
| Answer» B. the fairness of the tax | |
| 19. |
Microeconomics deals primarily with: |
| A. | comparative statics, general equilibrium and positive economics |
| B. | comparative statics, partial equilibrium and normative economics |
| C. | dynamics, partial equilibrium and positive economics |
| D. | comparative statics, partial equilibrium and positive economics. |
| Answer» D. comparative statics, partial equilibrium and positive economics. | |
| 20. |
Which of the following is incorrect? |
| A. | microeconomics is concerned primarily with the problem of what , how and for whom to produce |
| B. | microeconomics is concerned primarily with the economic behavior of individual decision making units when at equilibrium |
| C. | microeconomics is concerned primarily with the time path and processes by which one equilibrium position evolves into another |
| D. | microeconomics is concerned primarily with comparative statics rather than dynamics. |
| Answer» C. microeconomics is concerned primarily with the time path and processes by which one equilibrium position evolves into another | |
| 21. |
Which of the following statements is most closely associated with general equilibrium analysis? |
| A. | everything depends on everything else |
| B. | the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor |
| C. | the equilibrium price of a good or service depends on the balancing of the forces of demand and supply for that good or service |
| D. | none of these |
| Answer» A. everything depends on everything else | |
| 22. |
The meaning of the word ‘economic’ is most closely associated with the word: |
| A. | free |
| B. | scarce |
| C. | unlimited |
| D. | unrestricted |
| Answer» B. scarce | |
| 23. |
The market equilibrium for a commodity is determined by |
| A. | the market demand for the commodity |
| B. | the market supply of the commodity |
| C. | the balancing of the forces of demand and supply for the commodity |
| D. | any of these |
| Answer» C. the balancing of the forces of demand and supply for the commodity | |
| 24. |
Microeconomics studies the decision making behavior of: |
| A. | society as a whole |
| B. | an individual or household |
| C. | a group of individuals |
| D. | economy as a whole |
| Answer» B. an individual or household | |
| 25. |
The word micro was first used in Economics by: |
| A. | keynes |
| B. | ragnar frisch |
| C. | j.r.hicks |
| D. | marshall |
| Answer» B. ragnar frisch | |
| 26. |
A function refers to : |
| A. | the demand for a commodity |
| B. | the supply of a commodity |
| C. | the demand and supply of a commodity service or resource |
| D. | the relationship between one dependent variable and one or more independent variables. |
| Answer» D. the relationship between one dependent variable and one or more independent variables. | |
| 27. |
The validity of an economic theory is judged by its power to: |
| A. | explain an economic phenomenon |
| B. | predict the course of an economic phenomenon |
| C. | prove or disprove a hypothesis |
| D. | reveal the economic laws |
| Answer» A. explain an economic phenomenon | |
| 28. |
The subject matter of economics is the study of: |
| A. | wealth |
| B. | welfare |
| C. | scarcity |
| D. | scarcity and choice |
| Answer» D. scarcity and choice | |
| 29. |
To whom do you attribute the ‘growth’ definition of economics? |
| A. | paul samuelson |
| B. | lionel robbins |
| C. | milton friedman |
| D. | alfred marshall |
| Answer» A. paul samuelson | |
| 30. |
The first economist who coined the terms micro economics and macroeconomics |
| A. | ragnar frisch |
| B. | keynes |
| C. | marshall |
| D. | friedman |
| Answer» A. ragnar frisch | |
| 31. |
Microeconomics deals with: |
| A. | the theory of factor pricing |
| B. | the theory of product pricing |
| C. | the theory of economic welfare |
| D. | all the above |
| Answer» D. all the above | |
| 32. |
Prof. Robbin’s definition of Economics is: |
| A. | scarcity definition |
| B. | growth definition |
| C. | welath definition |
| D. | welfare definition |
| Answer» A. scarcity definition | |
| 33. |
A theory is: |
| A. | an assumption |
| B. | a validated hypothesis |
| C. | an ‘if then’ proposition |
| D. | a hypothesis |
| Answer» B. a validated hypothesis | |
| 34. |
The book ‘Principles of Economics’ was written by: |
| A. | keynes |
| B. | marshall |
| C. | samuelson |
| D. | pigou |
| Answer» B. marshall | |
| 35. |
Average revenue is : |
| A. | tr - tc |
| B. | tr / no. of units sold |
| C. | tc / tr |
| D. | mc / ar |
| Answer» B. tr / no. of units sold | |
| 36. |
A hypothesis is a : |
| A. | statement of facts |
| B. | statement of observations made by a researcher |
| C. | statement of expected out of research |
| D. | a proposition the validity of which is to be tested |
| Answer» D. a proposition the validity of which is to be tested | |
| 37. |
In the classical system, the basic economic problems are solved by: |
| A. | government |
| B. | price mechanism |
| C. | economists |
| D. | central bank |
| Answer» B. price mechanism | |
| 38. |
Growth definition of economics was concerned with: |
| A. | scarcity |
| B. | welfare |
| C. | wealth |
| D. | economic growth |
| Answer» D. economic growth | |
| 39. |
A market: |
| A. | necessarily refers to a meeting place between buyers and sellers |
| B. | does not necessarily refer to a meeting place between buyers and sellers |
| C. | extends over the entire nation |
| D. | extends over a city. |
| Answer» B. does not necessarily refer to a meeting place between buyers and sellers | |
| 40. |
The average fixed cost is obtained by : |
| A. | tfc / q |
| B. | mc / q |
| C. | tac / q |
| D. | avc / q |
| Answer» A. tfc / q | |
| 41. |
Average Revenue curve under monopoly is : |
| A. | upward slopping |
| B. | downward slopping |
| C. | horizontal straight line |
| D. | none of these |
| Answer» B. downward slopping | |
| 42. |
_______ investigations examine an individual’s relationship with and interaction in society |
| A. | natural science |
| B. | physical science |
| C. | life science |
| D. | social science |
| Answer» D. social science | |
| 43. |
In the 19th century _________ argued that ideas pass through three rising stages namely, Theological, Philosophical and Scientific. |
| A. | auguste comte |
| B. | plato |
| C. | aristotle |
| D. | socrates |
| Answer» A. auguste comte | |
| 44. |
_________ is distinctive for much greater use of mathematics than the other social sciences, a development made possible by the development of a concept of utility |
| A. | sociology |
| B. | political science |
| C. | economics |
| D. | anthropology |
| Answer» C. economics | |
| 45. |
The most important founder of German sociology, __________ , was keenly interested in maintaining the relationship between economics and sociology. |
| A. | max adler |
| B. | max weber |
| C. | karl marx |
| D. | joseph w. eaton |
| Answer» B. max weber | |
| 46. |
International Social Science Associations were founded under the auspices of___________ |
| A. | unesco |
| B. | world bank |
| C. | imf |
| D. | usa |
| Answer» A. unesco | |
| 47. |
________ social science discipline deals with the integration of different aspects of the Social Sciences, Humanities, and Human Biology |
| A. | criminology |
| B. | demography |
| C. | geography |
| D. | anthropology |
| Answer» D. anthropology | |
| 48. |
Social science can help to appreciate the values enshrined in the Indian Constitution such as justice, liberty, equality and fraternity and the unity and integrity of the nation and the building of a socialist, secular and democratic society. |
| A. | true |
| B. | false |
| C. | none |
| D. | none |
| Answer» A. true | |
| 49. |
______is primarily done by observing or testing on real-life data or analysing the pattern of some specific events in order to identify the nature or the class of trend that specific phenomenon maintains. |
| A. | empirical research |
| B. | action research |
| C. | laboratory research |
| D. | exploratory research |
| Answer» A. empirical research | |
| 50. |
_____ has distinguished between different types of societies on basis of economic system. |
| A. | joseph w. eaton |
| B. | max webber |
| C. | karl marx |
| D. | alphons silbermann |
| Answer» C. karl marx | |
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