Basics of General Economics - Meaning and Nature of Economics
Exam Duration: 45 Mins Total Questions : 30
"Ends" refer to
- (a)
Human Wants
- (b)
Resources
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
Which of the following is an economic activity?
- (a)
Listening to music on the radio
- (b)
Teaching one's own son at home
- (c)
Medical Facilities rendered by a Charitable Dispensary
- (d)
A Housewife doing household duties
Which is the following is not correct? Economics is viewed as
- (a)
Science of Wealth
- (b)
Science of Warfare
- (c)
Science of Wellbeing
- (d)
Science of Choice-making
The Law of Scarcity
- (a)
Does not apply to rich, developed countries
- (b)
Applies only to the less developed countries
- (c)
Implies that consumers' wants will be satisfied in a socialistic system
- (d)
Implies that consumers wants will never be completely satisfied
Which of the following is not a variable of MicroEconomics?
- (a)
Equilibrium Price in a Market
- (b)
Supply Curve of Individual Firm
- (c)
National Income
- (d)
Marginal Utility of goods to Consumers
Micro-Economics is also known as___
- (a)
Product Theory
- (b)
Price Theory
- (c)
Process Theory
- (d)
Projection Theory
What is not comes under micro economics
- (a)
Product pricing
- (b)
Factor pricing
- (c)
General Price level
- (d)
Study of firms
Economics is
- (a)
a Science
- (b)
an Art
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
Every Science has
- (a)
Systematised Body of Knowledge
- (b)
Universal Application
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
Science has
- (a)
ability to forecast
- (b)
systematized body of knowledge
- (c)
universal application
- (d)
all the above
In Economics, generalization of theories is not possible due to the fact that
- (a)
Resources are limited
- (b)
There is no Centre or Laboratory to conduct economic experiments
- (c)
Human Behaviour is unpredictable
- (d)
There is no Economist at all
Which of the following statements is not true about Positive and Normative Science?
- (a)
Positive Economics says nothing about the ends
- (b)
Positive Economics says nothing about the mea
- (c)
Positive Economics is concerned with moral judgments
- (d)
A Normative Statement involves Ethical Values
When we specify that Economists should not be concerned with whether an Individual should use his income towards purchasing cigarettes or rice, we consider Economics as
- (a)
Positive
- (b)
Normative
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
Economic Laws are
- (a)
verifiable in every economy
- (b)
always applicable in all situations
- (c)
have no exceptions at all
- (d)
none of the above
Demand Theory, Supply Theory, etc. have been derived based on
- (a)
Inductive Method
- (b)
Deductive Method
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
______Method is based on initial analysis of facts, and subsequent reasoning therefrom
- (a)
Inductive Method
- (b)
Deductive Method
- (c)
Both (a) and (b)
- (d)
Neither (a) nor (b)
The Central Problems arise in case of
- (a)
Developed Economies
- (b)
Developing Economies
- (c)
Undeveloped Economies
- (d)
All of the above
An economy can spend all its present resources on current consumption only
- (a)
True
- (b)
False
- (c)
Partially True
- (d)
cannot be commented at all
Advertisement, Price-Cutting, Discounts, etc. in a Capitalist Economy are
- (a)
attributed to Government Regulations
- (b)
methods of handling competition
- (c)
effects of Producer Sovereignty
- (d)
all of the above
Socialist Economy is characterized by
- (a)
Collective ownership of means of production
- (b)
Socia-Economic Objectives
- (c)
Central Planning Authority
- (d)
All of the above
In a Mixed Economy, there are_____Sectors of industries.
- (a)
One
- (b)
Two
- (c)
Three
- (d)
None
Mixed Economy is characterized by
- (a)
Existence of Private, Public and Joint Sectors
- (b)
Planned Economy
- (c)
Balanced Regional Development
- (d)
All of the above
Indian Economy is an example of
- (a)
Capitalist Economy
- (b)
Socialist Economy
- (c)
Mixed Economy
- (d)
None of the above
In the context of Resource Allocation, PPC stands for
- (a)
Public and Private Sector Conflict
- (b)
Production Possibility Curve
- (c)
Public and Private Sector Co-Operation
- (d)
All of the above
Which of the following illustrates to decrease in unemployment using the PPC?
- (a)
A movement down along the PPC
- (b)
A rightward shift of the PPC
- (c)
A movement from a point on the PPC to a point inside the PPC
- (d)
A movement from a point inside the PPC to a point on the PPC
What does an outward shift in the Production Possibility Curve indicate?
- (a)
Economic stagnation
- (b)
Economic growth/growth of resources
- (c)
Economic recession
- (d)
Hyperinflation in the economy
Which of the following illustrates a decrease in unemployment using the PPF?
- (a)
A movement down along the PPF
- (b)
A rightward shift of the PPF
- (c)
A movement from a point on the PPF to a point inside the PPF
- (d)
A movement from a point inside the PPFto a point on the PPF
Use the following data and answer the question
In an economy, the following combinations of two goods can be produced with the available resources, and the given state of technology
Situation | Cellphones (units) | Rice (quintals) |
A | 0 | 60,000 |
B | 1000 | 55,000 |
C | 2000 | 48,000 |
D | 3000 | 38,000 |
E | 4000 | 23,000 |
F | 5000 | 0 |
In Situation B, the Opportunity Cost of producing 1,000 Cellphones is
- (a)
60,000 quintals of Rice
- (b)
55,000 quintals of Rice
- (c)
5,000 quintals of Rice
- (d)
Nil
Table | ||||||
Production Possibilities (alternatives) | ||||||
A | B | C | D | E | F | |
Hot Pockets | 15 | 12 | 9 | 6 | 3 | 0 |
Eggos | 0 | 6 | 11 | 15 | 18 | 20 |
Referring to Table, in moving from point D to point C, the opportunity cost of 1 more Hot Pocket is
- (a)
4 eggos
- (b)
3/4 eggos.
- (c)
1 eggo.
- (d)
4/3 eggos
Use the following diagram and answer the question
Assume that in the above diagram, X and Y axes indicate quantities of Product X and Y respectively.
Which of the following points depict under-utilization of resources in the above diagram?
- (a)
A
- (b)
E
- (c)
F
- (d)
All the above