LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Single Answer
The externality in which the consumption or production levels of an economic unit affect the other economic units in the economy is called :-
Select The Blank
By ' profits', the economist means total revenue minus ________.
The act of using goods and services available in the market to satisfy wants is called :-
Marginal Cost (M.C.) is the rate of change of fixed cost.
The factors of production are called inputs and may be combined to yield the maximum ________.
Depreciation is the value caused by the continuous use of a capital asset, which indicates :-
The externalities or economic effects, which flow from the production or use of the goods to other parties or economic units, are termed as 'neighborhood effects.'
When a company raises additional finance by borrowing from the public for a specific period of time at a particular rate of interest, it is called as :-
Multiple Choice Multiple Answer
At the level of the society, the macro economic objectives are :-
Economic stabilization , Employment generation , Poverty reduction
Any point on the production possibility curve indicates under utilization of resources.
Index numbers may broadly be classified as :-
Special purpose indices , Price indices , Quantity indices
Price indices , Quantity indices , Special purpose indices
In case of a pure public good, its marginal cost is :-
An entrepreneur may earn high profits just by luck, say because of outbreak of war. This is known as :-
Methods of measurement of elasticity are :-
Percentage method , Point elasticity method , Total outlay expenditure method
The firm is an economic unit that makes the decisions regarding employment of :-
Factors of production
Reasons for change in Demand (Increase or Decrease in Demand) are :-
Change income of consumer , Change in population , Change in fashion and customs
A firm is a technical unit of a given capacity of output.
During the period of depression various factors of production are :-
The rate of interest, according to Keynes depends upon two factors: the liquidity preference function and ________.
The quantity of money.
The supply of money
By what methods are commodities produced and the consequences of choices about ________ and the consequences of choice about production methods are topics in Theory of Production.
The demand for life saving drugs is elastic.
The minimum number of directors which private limited should have is ________.
The market which deals with all the goods as a whole are considered as :-
In case of increase in the income, the rich person's demand for goods will be :-
The supply of agricultural goods is ________.
The products sold by different sellers under pure competition are ________.
Fiscal Policy refers to variations in ________.
Levels of taxation
Total supply of money
Price discrimination is possible in case of :-
Public utilities with legal sanction , Personnel services sold , Geographical barriers
Monopolistic market , Public utilities with legal sanction , Geographical barriers
Consumer’s protection involves protection to the consumers from unfair trade practices.
In the Long run, perfect competition and monopolistic competition, the firm make profits which are :-
In case of decrease in supply, the supply curve shifts to left side of the original supply curve.
In case of defense services, all the sections of the society are equally protected and benefited. The defense services in other words is :-
Indivisible in character , Cannot be priced in the market , A public good
Indivisible in character , Cannot be priced in the market
Demand for luxury goods is inelastic.
A normal demand curve has ________.
Match The Following
Trial and error method
Low cross elasticity of demand
High cross elasticity of demand
If there is reduction in the taxes levied by the Government, people are left with ________.
Has no effect on the money with people
In a market economy ________ is the best judge of personal interest.
Under cost plus pricing :-
The price is set to cover material, labour cost , Actual costs, standard costs are included , Certain percentage of profit also included
The price is set to cover material, labour cost , Full cost is not covered , Actual costs, standard costs are included
The criteria to be taken into account while setting the standards for a 'reasonable profit' are :-
Capital Attraction , Plough Back , Normal earnings
Quantitative credit control measures are :-
Open market operations , Changes in bank rates , Changes in statutory reserve ratio
Features of public sector enterprises are as follows :-
It is controlled by the state , Separate funds to undertake their activity , They are accountable to public
Complementary goods are jointly demanded but jointly demanded goods may not be Complementary.
Types of income elasticity of demand :-
Negative income elasticity , Zero income elasticity , Unit income elasticity
In case of a partnership firm, the liability of a partner is limited.
Break even point
T.R. = T.C.
Average variable cost (A.V.C.)
Short run cost
Change in supply
Increase and decrease in supply
Prof. Samuelson calls the air and water pollution or dangers from drunken drivers as economies that are :-
The sole proprietorship type of organization is found in :-
Agriculture , Retail trade , Hotel
Agriculture , Retail trade