Q1. Which one of the following Five year plans of Indian Economy was terminated by the Janata Government?
(a) Fourth Five Year Plan
(b) Fifth Five Year Plan
(c) Seventh Five Year Plan
(d) Eighth Five Year Plan
Q2. Consider the following statements :
(1) In the history of Indian planning, the actual growth rate of the GDP has never been higher than the targeted growth rate.
(2) In the first five year plan, the actual GDP growth rate was more than the targeted growth rate.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q3. Which of the following is not a characteristic of a “price taker”?
(a) TR = P x Q
(b) AR = Price
(c) Negatively – sloped demand curve
(d) Marginal Revenue = Price
Q4. Which of the following statements is false?
(a) Economic costs include the opportunity costs of the resources owned by the firm.
(b) Accounting costs include only explicit costs.
(c) Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs.
(d) Accounting profit is equal to total revenue less implicit costs.
Q5. With a given supply curve, a decrease in demand causes
(a) an overall decrease in price but an increase in equilibrium quantity.
(b) an overall increase in price but a decrease in equilibrium quantity.
(c) an overall decrease in price and a decrease in equilibrium quantity.
(d) no charge in overall price but a reduction in equilibrium quantity.
Q6. It is assumed in economic theory that
(a) decision making within the firm is usually undertaken by managers, but never by the owners.
(b) the ultimate goal of the firm is to maximize profits, regardless of firm size or type of business organization.
(c) as the firm’s size increases, so do its goals.
(d) the basic decision making unit of any firm is its owners.
Q7. Assume that consumers’ incomes and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium:
(a) price will increase.
(b) price will decrease.
(c) quantity will increase.
(d) quantity will decrease.
Q8. Suppose that the supply of cameras increases due to an increase in imports. Which of the following will most likely occur?
(a) the equilibrium price of cameras will increase.
(b) the equilibrium quantity of cameras exchanged will decrease.
(c) the equilibrium price of camera film will decrease.
(d) the equilibrium quantity of camera film exchanged will increase.
Q9. Assume that in the market for good Z there is a simultaneous increase in demand and the quantity supplied. The result will be:
(a) an increase in equilibrium price and quantity.
(b) a decrease in equilibrium price and quantity.
(c) an increase in equilibrium quantity and uncertain effect on equilibrium price.
(d) a decrease in equilibrium price and increase in equilibrium quantity.
Q10. Marginal cost changes due to changes in __________
(a) Total cost
(b) Average cost
(c) Variable cost
(d) Quantity of output
Q11. Which of the following statement is correct?
(a) Fixed costs vary with change in output
(b) If we add total variable cost and total fixed cost we get the average cost.
(c) Marginal cost is the result of total cost divided by number of units produced
(d) Total cost is obtained by adding up the fixed cost and total variable cost
Q12. Which of the following statements is incorrect?
(a) The LAC curve is also called the planning curve of a firm
(b) Total revenue = price per unit × number of units sold
(c) Opportunity cost is also called alternative cost
(d) If total revenue is dived by the number of units sold we get marginal revenue.
Q13. Who was the first administrator-statesman to attempt planning as a means for economic development?
(a) Sir CP Ramaswami Aiyyar
(b) M Viswesvarayya
(c) VT Krishnamachari
(d) C Rajagopalachari
Q14. Consider the following statements :
(1) The Fourth Five Year Plan period is from 1966-71.
(2) The Fourth Five Year Plan sought to raise the standard of living through programmes designed to promote equality and social justice.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Q15. The term “Hindu rate of growth” refers to the 3.70% per annum growth rate achieved by the Indian economy over the first six Five -Year Plans” The term was coined by:
(a) J.N. Bhagwati
(b) K.N. Raj
(c) Raj Krishna
(d) Sukhamoy Chakravarty
Solutions
1.B
2.B
3.C
4.D
5.C
6.B
7.D
8.D
9.C
10.C
11.D
12.D
13.B
14.B
15.C
