Q1. Say’ law of market holds that
(a) supply is not equal to demand
(b) supply creates its own demand
(c) demand creates its own supply
(d) supply is greater than demand
Q2. Who is called the Father of Economics?
(a) JM Keynes
(b) Malthus
(c) Ricardo
(d) Adam Smith
Q3. The income elasticity of demand being greater than one, the commodity must be
(a) a necessity
(b) a luxury
(c) an inferior good
(d) None of the above
Q4. If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is
(a) perfectly inelastic
(b) elastic
(c) perlectly elastic
(d) inelastic
Q5. The demand for money, according to Keynes is for
(a) speculative motive
(b) transaction motive
(c) precautionary motive
(d) All of the above
Q6. Which of the following are not fixed costs?
(a) Rent on land
(b) Municipal taxes
(c) Wages paid to workers
(d) Insurance charges
Q7. The term utility means
(a) usefulness of a commodity
(b) the satisfaction which a commodity yields
(c) the service which a commodity is capable of rendering
(d) None of the above
Q8. ‘Marginal efficient of capital’ is
(a) expected rate of return on new investment
(b) expected rate of return of existing investment
(c) difference between rate of profit and rate of interest
(d) value of output per unit of capital invested
Q9. Fixed cost is known as
(a) special cost
(b) direct cost
(c) prime cost
(d) overhead cost
Q10. The demand for which of the following commodity will not rise in spite of a fall in its price?
(a) Television
(b) Refrigerator
(c) Salt
(d) Meat
Q11. In the long-run equilibrium a competitive firm earns.
(a) Super-normal profit
(b) Profits equal to other firms
(c) Normal profit
(d) No profit
Q12. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for
(a) Coke will decrease
(b) 7-Up will decrease
(c) Coke and 7-Up will increase
(d) Coke and 7-Up will decrease
Q13. According to the Classical System, saving is a function of
(a) income
(b) the interest rate
(c) the real wage
(d) the price level
Q14. As per the reports, the collection of direct taxes has gone up by about 19% in last few months. Which of the following agencies releases the figures about tax collection?
(a) Central Statistical organisation
(b) Reserve Bank of India
(c) Department of Income Tax
(d) Central Board of Direct Taxes
Q15. “Sensitive Index” of Bombay Stock Exchange is called ……………?
(a) Nifty
(b) MAX
(c) LIBOR
(d) Sensex
Solutions
1.B
2.D
3.B
4.B
5.D
6.C
7.B
8.A
9.D
10.C
11.C
12.D
13.A
14.D
15.D
