Economics Questions & Answers

1. “An Enquiry into the Nature and
Causes of Wealth of Nations” is the
book of economist—
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) None of above
Ans : (A)
2. “Economics is the Science of
Wealth” who gave this definition ?
(A) J. K. Mehta
(B) Marshall
(C) Adam Smith
(D) Robbins
Ans : (C)
3. “Economics is what economists
do.” It has been supported by—
(A) Richard Jones
(B) Comte
(C) Gunnar Myrdal
(D) All of the above
Ans : (D)
4. “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
Ans : (D)
5. Who has given scarcity definition
of economics ?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Robertson
Ans : (C)
6. “Economics is a science” the basis
of this statement is—
(A) Relation between cause and
effect
(B) Use of deductive method and
inductive method for the
formations of laws
(C) Experiments
(D) All of the above
Ans : (D)
7. Characteristics of economic laws
are—
(A) Mere statements of economic
tendencies
(B) Less certain
(C) Hypothetical
(D) All of the above
Ans : (D)
8. Which theory is generally
included under micro economics ?
(A) Price Theory
(B) Income Theory
(C) Employment Theory
(D) None of the above
Ans : (A)
9. Whose opinions have
revolutionised the scope of macro
economics ?
(A) Adam Smith
(B) J.B. Say
(C) J.M. Keynes
(D) All of the above
Ans : (C)
10. Which of the following is an
economic activity ?
(A) Teaching of a teacher in the
school
(B) To teach son at home
(C) To serve her child by mother
(D) To play football by a student
Ans : (A)
11. Passive factor of production is—
(A) Only land
(B) Only capital
(C) Both land and capital
(D) Neither land nor capital
Ans : (C)
12. Under law of demand—
(A) Price of commodity is an
independent variable
(B) Quantity demanded is a
dependent variable
(C) Reciprocal relationship is found
between price and quantity
demanded
(D) All of the above
Ans : (D)
13. For inferior commodities,
income effect is—
(A) Zero
(B) Negative
(C) Infinite
(D) Positive
Ans : (B)
14. When total utility becomes
maximum, then marginal utility
will be—
(A) Minimum
(B) Average
(C) Zero
(D) Negative
Ans : (C)
15. Utility means—
(A) Power to satisfy a want
(B) Usefulness
(C) Willingness of a person
(D) Harmfulness
Ans : (A)
16. Marginal utility is equal to
average utility at that time when
average utility is—
(A) Increasing
(B) Maximum
(C) Falling
(D) Minimum
Ans : (B)
17. At point of satiety, marginal
utility is—
(A) Zero
(B) Positive
(C) Maximum
(D) Negative
Ans : (A)
18. Which of the following is the
second law of Gossen ?
(A) Law of equi-marginal utility
(B) Law of equi-product
(C) Theory of indifference curve
(D) Law of diminishing marginal
utility
Ans : (A)
19. Total utility of a commodity is
measured by which price of that
commodity ?
(A) Value in use
(B) Value in exchange
(C) Both of above
(D) None of above
Ans : (A)
20. According to Marshall, the basis
of consumer surplus is—
(A) Law of diminishing marginal
utility
(B) Law of equi-marginal utility
(C) Law of proportions
(D) All of the above
Ans : (A)