Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Economic planning wikipedia , lookup
Non-monetary economy wikipedia , lookup
Participatory economics wikipedia , lookup
Nominal rigidity wikipedia , lookup
Economics of fascism wikipedia , lookup
Criticisms of socialism wikipedia , lookup
Business cycle wikipedia , lookup
Steady-state economy wikipedia , lookup
Post–World War II economic expansion wikipedia , lookup
Methodology of Social Sciences with Special Reference to Economics (For Private Registration to BA Economics Programme) 1. Economics is concerned with: a) The collection of revenue for the state. b) The science of statecraft. c) The science of wealth. d) All of the above. 2. Adam Smith wrote a book called: a) An enquiry into the nature and cause of the wealth of nations b) Nations without Wealth c) Reasons for creating Wealth d) Wealthy Nations and Poor People 3. Wealth concept of Economics was bitterly criticized because a) It assumed wealth as an end of human activities. b) If it is accepted in life, there will be no place for love, affection, sympathy and patriotism. c) Absence of these values will make our real life a hell. d) All of the above. 4. Who suggested that Economics is the science of human welfare? a) Thomas, Carlyle, b) John Ruskin, c) Charles Dickens d) Alfred Marshal 5. Who propounded that Economics is the science, which studies human behaviours as a relationship between ends and scarce means which have alternative uses? a) Thomas, Carlyle, b) John Ruskin, c) Lionel Robbins d) Alfred Marshal 6. Who propounded the Scarcity Concept in Economics? a) Thomas, Carlyle, b) Lionel Robbins c) Charles Dickens d) Alfred Marshal 7. Every individual and economy has _____________ wants and scarce means to satisfy these wants. a) Limited b) Unlimited c) Few d) Strong 8. Inability to satisfy unlimited wants with limited resources creates the problems of: a) Choice making i.e., fixing priority b) Deficit budget c) Surplus budget 1 d) None of the above 9. Economics is significant for the consumers as it tells them: _________ a) How to make the best possible use of the funds available with them among different heads. b) How to buy from the market c) How to overcome the budgetary constraints d) None of the above 10. The fundamental economic problem faced by all societies is: a) unemployment b) inequality c) poverty d) scarcity 11. Capitalism" refers to: a) the use of markets b) government ownership of capital goods c) private ownership of capital goods d) private ownership of homes & cars 12. There are three fundamental questions every society must answer. Which of the following is/are one of these questions? a) What goods and services are to be produced? b) How are the goods and services to be produced? c) Who will get the goods and services that are produced? d) All of the above 13. The law of demand states that: a) as the quantity demanded rises, the price rises b) as the price rises, the quantity demanded rises c) as the price rises, the quantity demanded falls d) as supply rises, the demand rises 14. Economics is ______________. a) the study of the markets for stocks and bonds b) the study of choice under conditions of scarcity c) exclusively the study of business firms d) fundamentally the same as sociology e) applicable only when scarcity is not a problem 15. People and organizations have to make choices about how to allocate time and money because of: ___________ a) government rules and regulations b) corporate control of our lives c) scarcity of time and money d) religious values e) unlimited resources 16. Under capitalism, individuals are forced to make choices due to _____________. a) scarce time, but not scarce spending power b) scarce spending power, but not scarce time c) neither scarce time nor scarce spending power d) both scarce time and scarce spending power e) a low material standard of living 2 17. Due to a scarcity of resources, a. every society must undertake central planning b. the government must decide how to allocate available resources c. some members of each society must live in poverty d. every society must choose among competing uses of available resources e. resource availability exceeds the possible uses for available resources 18. In every economic system, scarcity imposes limitations on ( a ) a. households, business firms, governments, and the nation as a whole b. households and business firms, but not the governments c. local and state governments, but not the federal government d. households and governments, but not business firms e. business firms, governments, and the nation as a whole 19. The three groups of decision makers in the economy are a. households, business firms, and banks b. households, business firms, and governments c. business firms, governments, and banks d. business firms, banks, and foreign traders e. households, governments, and banks 20. Macroeconomics focuses on the behavior of economic agents such as the consumer, a business firm, or a specific market. a. True b. False c. May be d. No Comments 21. Microeconomics deals with which of the following? a. the total output of an economy b. the measurement of a nation's inflation rate c. how producers and consumers interact in individual markets d. how tax policies influence economic growth e. whether wage growth will outpace inflation in the coming year 22. The opportunity cost of a particular activity a. is the same for everyone pursuing this activity b. may include both monetary costs and forgone income c. always decreases as more of that activity is pursued d. usually is known with certainty e. measures the direct benefits of that activity 23. Opportunity costs arise in production because a. resources are unlimited b. resources must be shifted away from producing one good in order to produce another c. wants are limited in society d. monetary costs of inputs usually outweigh non-monetary costs e. the monetary costs of only a few resources are zero 24. a) b) c) For economists, the word "utility" means: versatility and flexibility rationality pleasure and satisfaction 3 d) purposefulness 25. a) b) c) d) In economics, the pleasure, happiness, or satisfaction received from a product is called: marginal cost rational outcome status fulfillment utility 26. a) b) c) d) When economists say that people act rationally in their self interest, they mean that individuals: look for and pursue opportunities to increase their utility generally disregard the interests of others are mainly creatures of habit are unpredictable 27. a) b) c) d) According to economists, economic self-interest: is a reality that underlies economic behavior is more characteristic of men than of women has the same meaning as selfishness is usually self-defeating. 28. Economics may best be defined as the: a) interaction between macro and micro considerations b) social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants c) empirical testing of value judgments through the use of logic d) use of policy to refute facts and hypotheses 29. a) b) c) d) The study of economics is primarily concerned with: keeping private businesses from losing money demonstrating that capitalistic economies are superior to socialistic economies choices that are made in seeking to use scarce resources efficiently determining the most equitable distribution of society's output 30. a) b) c) d) The economic perspective refers to: macroeconomic phenomena, but not microeconomic phenomena microeconomic phenomena, but not macroeconomic phenomena the making of rational decisions in a context of marginal costs and marginal benefits unlimited resources in a context of limited economic wants 31. a) b) c) d) The economic perspective entails: irrational behavior by individuals and institutions a comparison of marginal benefits and marginal costs in decision making short-term but not long-term thinking rejection of the scientific method 32. a) b) c) d) Rational behavior suggests that: everyone will make identical choices resource availability exceeds economic wants individuals will make different choices because their preferences and circumstances differ an individual's economic goals cannot involve tradeoffs 33. Economics involves marginal analysis because: a) most decisions involve changes from the present situation b) marginal benefits always exceed marginal costs 4 c) marginal costs always exceed marginal benefits d) much economic behavior is irrational 34. a) b) c) d) The assertion that "There is no free lunch" means that: there are always tradeoffs between economic goals all production involves the use of scarce resources and thus the sacrifice of alternative goods marginal analysis is not used in economic reasoning choices need not be made if behavior is rational 35. Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of: a) resource scarcity and the necessity of choice b) rational behavior c) marginal costs that exceed marginal benefits d) the tradeoff problem that exists between competing goals 36. a) b) c) d) “An Enquiry into the Nature and Causes of Wealth of Nations” is the book of economist— Adam Smith Marshall Robbins None of above 37. a) b) c) a) “Economics is the Science of Wealth” who gave this definition? J. K. Mehta Marshall Adam Smith Robbins 38. a) b) c) d) “Economics is what economists do.” It has been supported by— Richard Jones Comte Gunnar Myrdal All of the above 39. “Human Welfare is the subject of Economics.” This statement is associated with the name of which of the economists? a) Marshall b) Pigou c) Penson d) All of the above 40. a) b) c) d) Who has given scarcity definition of economics? Adam Smith Marshall Robbins Robertson 41. a) b) c) d) “Economics is a science” the basis of this statement is— Relation between cause and effect Use of deductive method and inductive method for the formations of laws Experiments All of the above 42. Characteristics of economic laws are— 5 a) b) c) d) Mere statements of economic tendencies Less certain Hypothetical All of the above 43. a) b) c) d) Which theory is generally included under micro economics? Price Theory Income Theory Employment Theory None of the above 44. a) b) c) d) Whose opinions have revolutionized the scope of macro economics? Adam Smith J.B. Say J.M. Keynes All of the above 45. a) b) c) d) Which of the following is an economic activity? Teaching of a teacher in the school To teach son at home To serve her child by mother To play football by a student 46. a) b) c) d) Passive factor of production is— Only land Only capital Both land and capital Neither land nor capital 47. a) b) c) d) Under law of demand— Price of commodity is an independent variable Quantity demanded is a dependent variable Reciprocal relationship is found between price and quantity demanded All of the above 48. a) b) c) d) For inferior commodities, income effect is— Zero Negative Infinite Positive 49. a) b) c) d) When total utility becomes maximum, then marginal utility will be— Minimum Average Zero Negative 50. a) b) c) d) Utility means— Power to satisfy a want Usefulness Willingness of a person Harmfulness 51. According to Marshall, the basis of consumer surplus is— 6 a) e) f) g) Law of diminishing marginal utility Law of equi-marginal utility Law of proportions All of the above 52. a) b) c) d) Economics is the study of: increasing the level of productive resources so there is maximum output in society increasing the level of productive resources so there is a minimum level of income how people, institutions, and society make choices under conditions of scarcity the efficient use of scarce resources paid for at the minimum level of cost to consumers and businesses 53. a) b) c) d) The primary focus of the study of economics is with: expanding the production of goods and services equalizing the distribution of consumer income and wealth making the most efficient use of scarce productive resources reallocating resources from consumption to production in the economy 54. a) b) c) d) The general concern of economics is with the study of the: degree of competition in stock and bond markets in the economy efficient use of limited productive resources to satisfy economic wants issue of equality in the distribution of income and wealth among households budget deficits in the domestic economy and trade deficits in the international economy 55. a) b) c) d) Which of the following is not a central focus of the "economic perspective"? Scarcity and choice The scientific method Purposeful behavior Marginal analysis 56. a) b) c) d) Marginal utility is equal to average utility at that time when average utility is— Increasing Maximum Falling Minimum 57. a) b) c) d) At point of satiety, marginal utility is— Zero Positive Maximum Negative 58. a) b) c) d) Which of the following is the second law of Gossen ? Law of equi-marginal utility Law of equi-product Theory of indifference curve Law of diminishing marginal utility 59. a) b) c) d) Total utility of a commodity is measured by which price of that commodity? Value in use Value in exchange Both of above None of above 7 60. The term scarcity in economics refers to the fact that: A. economic wants are limited and resources are abused. B. even in the richest country some people go hungry. C. no country can produce enough products to satisfy everybody's economic wants. D. it is impossible to produce too much of any particular good or service in a market economy. 61. The basic economic problem is essentially one of deciding how to make the best use of: A. limited resources to satisfy limited economic wants. B. limited resources to satisfy unlimited economic wants. C. unlimited resources to satisfy unlimited economic wants D. unlimited resources to satisfy limited economic wants 62. The key economic concept that serves as the basis for the study of economics is: A. inflation. B. unemployment C. money D. scarcity 63. As a student of economics, when you speak of scarcity, you are referring to the ability of society to: A. employ all of its resources. B. consume all that is produced. C. satisfy economic wants given limited resources. D. continually make technological breakthroughs and increase production. 64. As a consequence of the condition of scarcity: A. there is never enough of anything. B. production has to be centrally planned. C. things which are plentiful have relatively high prices. D. individuals and communities have to make choices from among alternatives. 65. What is the economic meaning of the expression that "there is no such thing as a free lunch"? A. It refers to "free-riders," who do not pay for the cost of a product, but who receive the benefit from it. B. It means that economic freedom is limited by the amount of income available to the consumer. C. It means that there is an opportunity cost when resources are used to provide "free" products. D. It indicates that products only have value because people are willing to pay for them. 66. One major feature of the economic perspective is: A. that scarcity is more important than choice. B. that costs are more important than benefits. C. the assumption of purposeful behavior by individuals. D. the recognition of economic resources in the economy. 67. The satisfaction or pleasure one gets from consuming a good or service is: A. price. B. utility. C. consumption. D. preferences. 8 68. The utility of a specific product: A. is determined by consumer income. B. is determined by the price of the product. C. varies from person to person using the product. D. is constant from person to person using the product. 69. Which expression is another way of saying "marginal cost"? A. total cost B. additional cost C. rational behavior D. scarcity 70. Henry wants to buy a book. The economic perspective suggests that Henry will buy the book if: A. the book will give him utility. B. his income is high. C. the marginal cost of the book is greater than its marginal benefit. D. the marginal benefit of the book is greater than its marginal cost. 71. From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the: A. marginal costs of more insurance coverage have decreased. B. marginal benefits of more insurance coverage have increased. C. marginal benefits of more insurance coverage are greater than the marginal costs. D. opportunity costs of more insurance coverage are greater than the payment for more insurance coverage. 72. From an economic perspective, when a student decides to attend another year of college, the student has concluded that the marginal: A. costs of attending college has decreased that year. B. benefits of attending college has increased that year. C. benefits of attending college are greater than the marginal costs. D. costs of attending college will be subsidized by someone else such as parents or the government. 73. When an economist says that there is "too much of a good thing," the economist is suggesting that: A. scarcity is not a problem. B. wants are not unlimited. C. the marginal cost of the thing is less than the marginal benefit. D. the marginal benefit of the thing is less than the marginal cost. 74. The concept of "purposeful behavior" suggests that: A. macroeconomics is more important then microeconomics. B. microeconomics is more important than macroeconomics. C. people make different choices because their circumstances and information differ. D. there is a logical fallacy of composition that affects microeconomic thinking but not macroeconomic thinking. 75. Are the goods that businesses offer for "free" to consumers also free to society? A. Yes, because the individual consumer does not have to pay for them. B. Yes, because the marginal benefit is greater than the marginal cost. C. No, because scarce resources were used to produce the free goods. D. No, because society does not assign a value to free goods. 9 76. When producers maximize their profits from the production of a good or service, they are: A. testing a hypothesis. B. exhibiting purposeful behavior. C. assuming that all other things are equal. D. making a tradeoff between economic efficiency and economic freedom. 77. How is the economic perspective reflected in lines for fast food? A. Customers select the shortest line because they have perfect information. B. Customers select the shortest line because they believe it will reduce their time cost of obtaining food. C. Lines will typically be of unequal length because of the inefficiencies in counter service. D. The set of food choices is often too complex for most customers and thus creates long lines. 78. From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the: A. marginal cost of waiting is less than the marginal benefit of being served. B. marginal cost of waiting is greater than the marginal benefit of being served. C. management is exhibiting irrational behavior by not maximizing profits. D. management is making an assumption that other things are equal. 79. The process of developing hypotheses, testing them against facts, and using the results to construct theories is called: A. opportunity cost calculation. B. the scientific method. C. marginal analysis. D. microeconomics. 80. The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of: A. a normative statement. B. a microeconomic statement. C. marginal analysis. D. a generalization. 81. An economic model is: A. a value judgment. B. a fact. C. built using theory. D. built on policies. 82. Economic models do not reflect the full complexity of reality and instead are based on: A. tradeoffs. B. purposeful simplifications. C. value judgments. D. the fallacy of composition. 83. The role of an assumption in an economic theory is to: A. add realism. B. prove the theory. C. cover special cases. D. simplify the theory. 10 84. The purpose of the ceteris paribus assumption used in economic analysis is to: A. make sure that all relevant factors are considered. B. avoid making normative statements. C. aggregate economic data. D. restrict the analysis to the effect of a single economic factor. 85. A basic assumption used in most economic theories is that: A. what is true for a part of the whole must also be true for the whole. B. as price decreases, quantity demanded will increase. C. whatever goes up must come down. D. all other things remain the same. 86. Economists have difficulty applying the scientific method because: A. economic conditions are constant. B. controlled laboratory experiments are impossible or often infeasible. C. people are involved, and their behavior is entirely predictable. D. the scientific method does not apply to economics. 87. Which question is an illustration of a macroeconomic question? A. What is the amount of profit for Intel and other makers of microchips? B. How does a cut in the business tax rate increase business investment in the economy? C. What will be the level of stock market and bond market prices at the end of the year? D. How does the supply of fruits and vegetables change when there is bad weather affecting crops? 88. Which is an illustration of a microeconomic question? A. What is the current national rate of unemployment? B. Is the economy experiencing a decline in the rate of inflation? C. Will a new type of television set increase the number of buyers? D. Is the production of goods and services in the economy greater this year than last year? 89. Which question is an example of a microeconomic question? A. What should the Federal government do to reduce the trade deficit with Japan? B. Will the merger of two airlines likely lead to higher airline ticket prices? C. What factors are contributing to the rise of unemployment in the economy? D. Will the inflation rate remain relatively stable this year? 90. Microeconomics focuses on: A. the workings of the whole economy or large sectors of it. B. the individual units that make up the whole of the economy. C. issues such as unemployment and inflation. D. total output and the general level of prices. 11 91. Macroeconomics focuses on: A. the individual units that make up the whole of the economy. B. studies of how individual markets and industries are organized. C. total output and the general level of prices in the economy. D. how a business determines how much of a product to produce 92. The study of how one business firm sets its prices would fall under the study of: A. macroeconomics. B. microeconomics. C. income distribution. D. economic growth. 93. The branch of economics that focuses primarily on aggregates is: A. macroeconomics. B. microeconomics. C. scientific economics. D. consumer economics. 94. An "aggregate:" A. treats a collection of specific units as one unit. B. treats a single unit as if it were a set or collection of specific units C. is the primary unit of analysis in microeconomics. D. is too large to analyze using standard macroeconomic theories. 95. Which would be considered a macroeconomic study? A study of the effect of: A. a decrease in the price of automobiles on automobile sales. B. government spending to increase employment. C. a new tax on the profits of a business. D. interest rates on a firm's investment. 96. Which question is an illustration of a microeconomic question? A. Is the quantity of wine purchased in one year dependent upon the price of wine? B. Does government spending influence the total level of employment in the economy? C. Is the purchasing power of the dollar higher or lower today than it was in 2000? D. Is capitalism superior to socialism? 97. Which question is an illustration of a macroeconomic question? A. Is a business unresponsive to the demands of consumers? B. Is a consumer boycott an effective means of reducing product prices? C. Is the level of employment in the economy sensitive to the quantity of consumer spending? D. Are oil companies engaging in a rip-off of the consumer by charging exorbitantly high prices for gasoline? 98. The macroeconomist would most likely study: A. the effects of changing beer prices on the market for pretzels. B. the effects of an increased income tax on a typical household's purchase of goods. C. the effects of a reduction in income tax rates on the nation's total output. D. how consumers in Gary, Indiana, respond to a reduction in gasoline prices. 99. Macroeconomics is the study of economics from the standpoint of: A. individual economic units. B. a typical firm. C. a typical household. D. the overall economy. 12 100. The alternative combinations of two goods which a consumer can purchase with given money income are: A. a production possibilities curve. B. a demand curve. C. consumer equilibrium. D. a budget line. 101. The price ratio of the two products is the: A. marginal rate of substitution. B. slope of the budget line. C. point of tangency for equilibrium. D. demand for the two products. 13 102. Economics is the study of the efficient use of scarce resources to achieve maximum satisfaction of economic wants. A. TRUE B. False C. May be Correct D. No Comments 103. Marginal analysis is the comparison of additional benefits with the additional costs. A.TRUE B. FALSE C. May be Correct D. No Comments 104. From the "economic perspective" people make purposeful decisions based on hypotheses. A.FALSE B. TRUE C. May be Correct D. No Comments 105. Economics is primarily concerned with marginal changes from the status quo. A. TRUE B. FALSE C. May be Correct D. No Comments 106. The scientific method involves developing hypotheses from factual observations, and then testing the hypotheses. A. TRUE B. FALSE C. May be Correct D. No Comments 107. By using the same ceteris paribus assumptions, economic principles are just as certain and precise as those of the laboratory sciences. A. FALSE B. TRUE C. May be Correct D. No Comments 108. Macroeconomics is concerned with the whole economy or its major sectors. A. TRUE B. FALSE C. May be Correct D. No Comments 109. The economizing problem arises from the conflict between having relatively unlimited resources and relatively limited wants. A. FALSE B. TRUE C. May be Correct D. No Comments 14 110. The fundamental economic problem is that productive resources are scarce in relation to the demand for them. A. TRUE B. FALSE C. May be Correct D. No Comments 111. The four factors of production are land, labor, capital, and government services. A. FALSE B. TRUE C. May be Correct D. No Comments 112. A point inside the production possibilities curve illustrates that resources are not being used as efficiently as possible. A, TRUE B. FALSE C. May be Correct D. No Comments 113. The concave, or bowed-out, shape of the production possibilities curve illustrates the law of increasing opportunity costs. A. TRUE B. FALSE C. May be Correct D. No Comments 114. If the marginal benefits are greater than the marginal cost of an activity, then society is over allocating resources to this activity. A. FALSE B. TRUE C. May be Correct D. No Comments 115. The marginal cost curve for a product slopes upward as more units are produced because of the law of increasing costs. A. TRUE B. FALSE C. May be Correct D. No Comments 116. If the marginal benefits of the output from resources devoted to the production of a product are greater than the marginal costs, then there has been an over-allocation of resources to the production of that product. A. FALSE B. TRUE C. May be Correct D. No Comments 117. Economic growth is shown by a shift of the production possibilities curve outward and to the right. A. TRUE B. FALSE C. May be Correct 15 D. No Comments 118. If a nation is incurring a trade deficit (it is buying more from abroad - importing, then it is selling abroad - exporting), then it is most likely producing beyond the frontier of its production possibilities curve. A, FALSE B. TRUE C. May be Correct D. No Comments 119. The implied production possibilities curve between work time and grades suggests that more hours spent working will mean more income, but also less study time and a lower grade average. A. TRUE B. FALSE C. May be Correct D. No Comments 120. Many states in last years have introduced user charges in public hospitals because of that(A) The difference between the treatment cost in private and public hospitals has decreased (B) The treatment cost of poor has increased (C) Percentage of patients taking treatment in public hospitals has come down (D) The treatment cost in public hospitals has decreased Which of the above statements is not correct ? 121. The rate of growth of Indian economy during last three years has been 8 per cent. At this rate the G.N.P. will be double in(A) 12 years (B) 9years (C) 15 years (D) 10 years 122. For equitable development it is necessary that(A) Proportionate benefit to all classes (B) Main benefit goes to rich persons (C) Main benefit goes to poor persons (D) Main benefit goes to middle classes 123. Bank rate in India is determined by(A) Government (B) Commercial Banks (C) Reserve Bank of India (D) Cooperative Banks 124. The economy will be in equilibrium if(A) I = S (B) Y > C (C) I > C (D) I< C 125. The factors affecting the elasticity of demand of a commodity are(A) Availability of substitutes (B) Possibility of postponing consumption (C) Share of expenditure in the total budget (D) Whether the person is educated or uneducated 126. Which of the above factors is wrong ? The biggest producer of Soybean is 16 (A) Madhya Pradesh (B) Rajasthan (C) U. P. (D) Maharashtra 127. The biggest producer of gram in India is—— (A) Maharashtra (B) U. P. (C) M. P. (D) None of these states 128. The function of money is/ are(A) Medium of exchange (B) Measure of value (C) Store of value (D) All of these 129. The utility from a bundle of goods will be maximum when the marginal utility of each commodity is equal to the price multiplied by the marginal utility of money/’ This was stated by~— (A) Marshall (B) Adam Smith (C) Hicks (D) None of these 130. When relative change in demand is equal to change in price, the price elasticity of demand will be(A) Unit . (B) Less than one (C) Greater than one (D) Infinity 131. Suppose money income in the year 2000 was 5 lakh, which increased 10 lakh in the year 2008. But during the same period, there was a price increase of 20 per cent. Then increase in real income was(A) 8-33 lakh (B) 363 lakh (C) 51akh , (D) None of these 132. To obtain maximum satisfaction, the following equation must be satisfy f1/ f2 = P1/P2 where fl and f2 indicate marginal utility and P1 and P2 indicates their prices. (A) Above equation is correct (B) Above equation is wrong (C) Above equation indicates minimum, not maximum satisfaction (D) None of the above 133. Inferior goods means— (A) When demand remains constant, though price increased (B) When demand decreases with increase in price (C) When demand decreases with decrease in price (D) Demand remains the same with decrease in price 17 134. There are some misconceptions about monopoly. Which one of the following? (A) Monopoly firm tries to earn maximum profit (B) Monopoly firm always earns profit (C) Marginal income of mono-poly firm is equal to marginal cost (D) None of the above 135. Which of the following statements is true? (A) Product differentiation is not necessary in monopolistic competition (B) Monopolistic competition normally requires product differentiation (C) There is no reaction from others if one under monopolistic competition decreases price (D) With perfect elastic demand, price decrease under monopolistic competition decreases total revenue 136. Equilibrium means— (A) No tendency to change with time (B) Changes in all variables with time (C) Other combinations of variable represent better situation (D) Change in one variable, others remaining constant 137. Gross national product is equal to(A) Gross national product —Import (B) GDP + Net Factor Income from abroad (C) Gross domestic product +Imports (D) Gross national product +Exports 138. Entrepreneurial activity is performed(A) By rich persons (B) Who works under conditions of certainty (C) Who works only on the basis of past experiences (D) Who works under conditions of uncertainty 139. Which of the following is included in Macro-economics (A) Equilibrium of the firm (B) Price determination of a commodity (C) Trade cycle theory (D) Price determination of LPG in India 140. Trade off means— (A) Simultaneous increase in two variables (B) Increase in one variable, keeping the other constant (C) Decrease in other variable with increase of one (D) None of the above 141. In a country in which the demand for land is greater than the Supply(A) There will be no price for marginal land (B) Marginal land will also have price (C) Only fertile land will have price (D) There will be no price even for fertile land 142. A firm will suffer loss— (A) If the price is less than average fixed cost + average variable cost (B) If the price is less than variable cost (C) lf the price is less than average fixed cost (D) lf the price is more than average fixed cost + average variable cost 18 143. lf the amount of 100 crore is invested in an economy and if marginal propensity to consume is 0•8, then increase in national income will be— (A) 80 crore (B) 300 crore (C) 500 crore (D) None of these 144. The great depression of thirties gave birth to the theory of— (A) Say’s law of market (B) Full employment equilibrium (C) That real wages determine the supply of labour (D) Keynesian theory of Employment 145. If the total cost of production of 400 units is Rs. 8,000 and of 399 units is Rs. 7,990, then the production is under— (A) Law of increasing Returns to the Scale (B) Law of Decreasing Returns to Scale (C) Law of Constant Returns to Scale (D) None of the above 146. Inflation in India is measured by? (A) Change in wholesale price index (B) Increase in currency in circulation (C) Change in retail price index (D) Credit created by the banks 147. Income from taxes is divided(A) State’s income from taxes is shared by Centre (B) Income of some taxes of the Centre is shared by States (C) States and the Centre have independent sources of income and no sharing (D) None of the above 148. Central Bank in India is(A) Central Bank of India (B) State Bank of India (C) Bank of India (D) Reserve Bank of India 149. Which of the following does not come under Macro-economics (A) Employment theory (B) Price determination of LPG in India (C) Theory of depression (D) Functions of Central Bank in India 150. Macro-economics suffers from(A) All theories are influenced by generalization (B) The analysis employs the technique of partial analysis (C) Deals with large quantities (D) Relates to determination of total employment and total income 151. The movement from non-Pareto to Pareto equilibrium is desirable because(A) It increases the production of first commodity without adversely affecting the production of second 19 (B) It increases the production of second commodity more than it decreases the production of first (C) It increases the production of first commodity more than if decreases the production of second one (D) None of the above 152. Inflation means(A) When the prices of necessities increase (B) When the general price increases for a long period (C) When there is a seasonal fluctuation in prices (D) When the prices of luxuries increase 153. Speculative Demand for money and Interest rate are related— (A) Inverse relationship (B) Direct relationship (C) No relationship in these (D) None of these 154. When the demand for money increases for investment(A) Will decrease the multiplier effect (B) Adversely affect the consumption (C) Interest rate will remain unchanged (D) The increase in interest rate will depend upon the slope of investment curve 155. Disinflation means— (A) When increase in prices in the long run (B) When the prices increase due to export (C) When the increase in prices is more than average (D) When increased prices decrease 156. Transaction demand curve for money— (A) It is parallel to X—axis (B) It moves upward with income (C) It moves downward (D) None of these 157. If any firm uses only two factors of production, namely labour (L) and capital (K), which of the following equations represent minimum cost of production (A) MPPL/ PL = MPPK / PK (B) MPPL x PL = MPPK x PK (C) MRPL = MRPK (D) MPPL : MPPK 158. Devaluation of money means— (A) Decrease in purchasing power of money (B) Increase in purchasing power of money (C) Decrease in external value of money (D) None of the above 159. Money supply could be increased when(A) Central Bank purchases government securities (B) Central Bank sells government securities (C) Cash-reserve ratio of banks is increased (D) Commercial Banks increase the amount deposited with Central Bank 20 160. Minimum wage should be determined(A) Less than prevailing wage rates (B) Higher than equilibrium rate in die market (C) Minimum Physical and Social needs may be fulfilled (D) None of the above 161. Pigou’s concept of equilibrium firm is a(A) Completely new concept, having nothing to do with Marshallian representative firm (B) Revised version of Marshallian representative firm (C) Marshall’s representative firm is a revised version of Pigou’s equilibrium firm (D) None of the above 162. Under monopolistic competition, excess capacity means(A) Excess capacity under the condition of making loss (B) Difference between profit maximizing production and minimum cost production (C) Optimum and maximum profit giving production difference between the two (D) None of the above 163. Law of Variable Proportions means(A) Simultaneous change in the proportion of inputs (B) Keeping one input constant while changing others (C) Reducing other inputs and increasing only one input (D) None of the above 164. Under monopolistic competition in long run— (A) Firm will always earn monopoly profit (B) Firm might earn normal profit only (C) Firm will always earn normal profit (D) None of the above 165. Bankers’ Bank in India is(A) International Monetary Fund (B) World Bank (C) Industrial Development Bank of India (D) Reserve Bank of India 166. The ratio of exchange between two goods in the indifference curve analysis is shown by—— (A) Price line (B) Price-consumption curve (C) Income consumption curve (D) From indifference curve 167. The number of people living in poverty in India is a) 30 crores b) 26 crores c) 35 crores d) 20 crores 168. For the year 2000, the poverty line for a person in urban areas in India was fixed at a) Rs. 454 per month b) Rs. 500 per month c) Rs. 328 per month d) Rs. 1640 per month 21 169. The country which has the largest single concentration of the poor people in the world is a) China b) Pakistan c) India d) Nepal 170. For the year 2000, the poverty line for a person in rural areas in India was fixed at a) Rs 454 per month b) Rs 500 per month c) Rs 328 per month d) Rs 1640 per month 171. There is a strong link between economic growth and a) Poverty reduction b) Increase in poverty c) Economic stability d) Food security 172. The accepted average calorie requirement per person in urban areas in India is a) 2200 calories b) 2000 calories c) 2300 calories d) 2100 calories 173. Which of the following is not an anti-poverty programme? a) NREGA b) NSSO c) AAY d) PMGY 174. In which of the following countries did poverty actually rise from 1981 to 2001? a) Sub Saharan Africa b) India c) China d) Russia 175. Periodical estimation of poverty line is conducted by _______________ a) NSSO b) PDS c) AAY d) NREGA 176. The poorest states in India are : i) Orissa ii) Bihar iii)Punjab iv) Haryana a. (i) and (ii) b. (iii) and (iv) c, (ii) and (,iii) d. All (i), (ii), (iii) and (iv) 177. The number of people living in poverty in India is a) 30 crores 22 b) 26 crores c) 35 crores d) 20 crores 178. The distinguishing feature of a federal government is a) National Government gives some powers to the provincial government. b) Power is distributed among the legislature, executive and judiciary. c) elected officials exercise supreme power in the government. d) Governmental power is divided between different levels of government. 179. List the countries which do not follow federalism a) Spain, Sweden, Britain b) India, Belgium, Canada and Australia c) The USA, Spain, Holland d) China, Sri Lanka, France, United Kingdom, Japan, Italy and North Korea 180. What was the key change made in the constitution of Belgium ? (i) Increase the power of the central government. (ii) Transfer of powers to the regional government. (iii) Reduce the power of the central government (iv) Reduce the power of the regional government. Which option is appropriate : a. (i), (iii) and (iv) b. (i), (ii) and (iii) c. (i) and (iii) d. (ii) and (iii) 181. The System of Panchayati Raj involves a) The village, block and district levels. b) The village, and state levels c) The village district and state levels d) The village, state and Union levels. 182. The distinguishing feature of a federal system is National Government gives some powers to the provincial government. Power is distributed among the legislature, executive and judiciary. Elected officials exercise Supreme Power in the government Governmental power is divided between different levels of government. 183. A few subjects in various lists of the Indian Constitution are given here. Group them under the Union, State and Concurrent lists as provided in the table below : (i) Defence (ii) Police (iii) Agriculture (iv) Education (v) Banking (vi) Forests (vii) Communications (viii) Trade (ix) Marriages Which option is correct: a) Union list (i), (viii) and (ix) State list (ii), (iii) and (iv) Concurrent list (v), (vi) and (vii) b) Union list (i), (v) and (vii) State list (ii), (iii) and (viii) Concurrent list (iv), (ix) and (vi) c) Union list (v), (vi) and (vii) State list (iii), (vii) and (ix) Concurrent list (i), (ii) and (iv) d) Union list (iii), (vi) and (vii) State list (v), (viii) and (ix) Concurrent list (iv), (ii) and (i) 184. Consider the statement: "coming together federation" involves. (i) Central government to become more powerful. 23 (ii) Independent states coming together on their own to form bigger unit. (iii) Constituent units have unequal powers. (iv) Constituent units have equal powers. a) (i), (ii) and (iv) b) (i), (iii) only c) (ii) and (iv) only d) (i), (iii) and (iv) 185. Select the two bases on which new states of India have been created a) Religion and geography b) Language and regional c) Culture and religion d) Geography and language 186. Whose laws prevail if there is conflict between the state government and central government on the subject of concurrent list: a) The laws made by the state government b) The laws made by both State and Union Government c) The laws made by the Union Government d) The laws would be cancelled. 187. Select the countries that follow coming together federal system a) The USA, China, Australia b) India, Spain, Belgium, Canada c) The USA, Switzerland, Australia d) China and India only 188. The distinguishing feature of a federal government is a) National Government gives some powers to the provincial government. b) Power is distributed among the legislature, executive and judiciary. c) Elected officials exercise supreme power in the government. d) Governmental power is divided between different levels of government. 189.Which of the following are True : a) Laws that seek to ban something are not very successful in politics. b) Challenge of deepening of democracy is faced by communist countries only, c) Political reforms are not uniform for every democracy. d) The right to information is an example of political reform . 190.Democracy does not stand for : a) Democratic Right b) Elections c) Violence d) Accommodation of diversity 191. Foundational challenge includes a) Bringing down the existing non-democratic regimes b) Strengthening of the institutions and practices of democracy c) Keeping military away from controlling and practices of democracy. d) Establishing a sovereign and functional state. 192. Which of the following are True : a) Foundational challenge is the challenge of most of the non-democratic countries. b) Challenge of Deepening of democracy is faced by only communist countries. 24 c) Challenge of expansion is faced by established democracies. d) The challenge means facing difficulties without any solution. 193. Which of the following represents a challenge to democracy ? a) Women not allowed to take part in public activities in Saudi Arabia b) Renewed violence in Sri Lanka following the break down of talks between the government and LTTE. c) Money and muscle power during election. d) All of the above. 194. Which of the following are True : a) Laws that seek to ban something are not very successful in politics. b) Challenge of deepening of democracy is faced by communist countries only, c) Political reforms are not uniform for every democracy. d) The right to information is an example of political reform 195. Removing barriers or restrictions set by the government is known as a) Privatization b) Liberalization c) Globalization d) Socialization 196. To achieve the goal of fair globalisation, major role can be played by (i) People (ii) Government (iii) MNCs (iv) None of the above a. (i) and (iii) b. (ii) and (iv) c. (i)and(ii) d. (iii)and(iv) 197. Benefit to the local company of joint production with MNCs is (i) Money from MNCs for additional investments (ii) Moral & Social support (iii) Latest technology for production (iv) All of them (i) and (ii) (ii) and (iii) (iii) and (iv) (i) and (iii) 198. Examples of industries where production is carried out by a large number of small producers around the world a) Garments b) Footwear c) Sport items d) All of them 199. Company that owns or controls production in more than one nation a) Foreign companies b) Government companies c) Multinational companies d) Private companies 200. Rapid integration or interconnection between countries is known as a) Privatization b) Globalization c) Liberalization d) Socialization 25