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Test Il, , 1., , Topper’s Classes, , Inductive method is, observation of particular facts., (a) never (b) seldomly, (c) alternatively (d) always, , based on the, , . 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 of the following statements is correct?, , (a) Robbins has made economics as a form of welfare, economics, , (b) The law of demand is always true, , (c) All capital is wealth but all wealth is not capital, , (d) None of the above, , . State which of the following represents macro from, , the national point of view., , (a) Turnover ratio of Reliance Ltd., , (b) Capital output ratio of Indian Industries, (c) Debt equity ratio of TELCO, , (d) All the above, , . Which of the following can be regarded as law of, , economics?, , (a) Ceteris Paribus, if the price of a commodity rises, the quantity demanded of it will fall, , (b) Higher the income, greater is the expenditure, , (c) Taxes have no relation with the benefits which a, person derives from the state, , (d) None of the above, , . Which of the following is not an economic activity?, , (a) Ason looking after his ailing mother, (b) A chartered accountant doing his own practice, (c) Asoldier serving at the border, , (d) A farmer growing millets, , . Which of the following is an economic activity?, , (a) Medical facilities rendered by a charitable, dispensary, , (b) Teaching one’s own nephew at home, , (c) Ahousewife doing household duties, , (d) Watching television, , . Which of the following is an economic activity 7, , (a) Playing friendly cricket match, , (b) Teaching one's own daughter at home, (c) Manufacturing chairs at subsidised rate, (d) Ahousewife doing household duties, , . 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, , . An example of positive economic analysis would, , be:, (a) an analysis of the relationship between the price of, food and the quantity purchased, , Chapter 1 (Economics), , FM 61 Time 80 Min, , {b) determining haw much income each person should, be granted, (c) determining the fair price for food, (d) deciding how to distribute the output of the, economy, , 11. Which of the following does not suggest a macro, approach for India ?, , (a) Determining the GNP of India, , (b) Identifying the causes of inflation in India, , (c) Finding the causes of failure of X and Co., , (d) Analyse the causes of failure of industry in, providing large scale employment, , 12. Capital intensive technique would get chosen ina:, (a) labour surplus economy, (b) capital surplus economy, (c) developed economy, (d) developing economy, , 13. Consider the following and decide which if any, economy is without scarcity:, , (a) The pre-independent Indian Economy, where most, people were farmers, , (b) A mythical economy where everybody is a, billionaire, , (c) Any economy where income is distributed equally, among its people, , (d) None of the above, , 14. Which of the following is the best general definition, of the study of Economics?, , (a) Inflation and unemployment in a growing economy, , (b) Business decision making under foreign, competition, , (c) Individual and social choice in the face of scarcity, , (d) The best way to invest in the stock market, , 15. Labour intensive technique would get chosen in a:, (a) Labour surplus economy, (b) Capital surplus economy, (c) Developed economy, (d) Developing economy, , 16. Which of the following Is not one of the four central, questions that the study of economics is supposed, to answer?, , (a) Who produces what?, , (b) When are goods produced?, (c) Who consumes what?, , (d) How are goods produced?, , 17. The various combinations of goods that can be, produced in any economy when it uses its available, sources and technology efficiently are depicted by:, (a) Demand curve —(b) Production curve, (c) Supply Curve — (d) Production possibilities curve, , 18. Rational decision making requires that:, , (a) One's choices be arrived at logically and without, errors, (b) One's choices be consistent with one’s goals, (c) One's choices never vary, (d) One's makes choices that do not involve trade offs, 19. Which of the following statements is correct?

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Topper’s Classes, , Test Il Chapter 1 (Economics), , (a) Employment and economic growth are studied in, micro economics., (b) Micro economics deals with balance of trade, (c) Economic condition of a section of the people is, studied in Micro Economics, (d) External value of money is dealt with in microeconomics, 20. Identify the correct statement :, (a) In capitalist economy people are not free to spend, their income as they like, (b) In socialist economy the right to work is guaranteed, but the choice of occupation get restricted, (c) In socialist economy a relative inequality in income, is an important feature., (d) In today’s world only U.S.A. is a purely socialist, country, , 21. itis that deals with the problem of, allocation of resources, (a) statistics (b) macro-economic theory, (c) econometrics —_(d) micro-economic theory, , 22. Lesser production of would lead to, lesser production in future, (a) Public goods (b) Consumer goods, (c) Capital goods (d) Agriculture goods, , 23. viewed economics as a science of, dynamic growth and development, (a) Robbins (b) Adam Smith, (c) Paul A, Samuelson (d)Pigou, , 24. Which of the following falls under Micro Economics, ?, (a) National Income, (b) General Price level, (c) Factor Pricing, (d) National Saving and Investment, , 25. Which of the following steps relates only to, deductive method in Economics?, (a) Testing of Hypothesis, (b) Collection of data, (c) Classification of data, (d) Perception of the problem, , 26. In a free market-economy, when consumer, decrease their purchase of a good and the level of, , exceeds then prices tend to fall., , (a) Prices, demand (b) Profits supply, (c) Demand supply (d) Supply, demand, , 27. Who is the main exponent of Marginal utility, analysis 7?, (a) Paul Samuelson, (c) Keynes, , 28. Mark the correct statement (a) India is a purely capitalist economy, (b) India is a stagnant economy, (c) India is a developing economy, (d) India is a resources poor economy, 29. The meaning of the word ‘Economic’ is most, closely connected with the word :, , (b) Hicks, (4) Marshalt, , FM 61 Time 80 Min, , (a) Extravagant, (c) Unlimited, , (b) Scarce, (d) Restricted, , . Economics is a Science which deals with wealth, , was referred by :, , (a) Alfred Marshal (b) J. B. Say, , (c) Adam Smith (4) AC. Pigou, , In Economics, the central economic problem, , means:, , (a) Output is restricted to the limited availability of, resources, , (b) Consumers do not have as much money as they, would wish, , (c) There will always be certain level of, unemployment, , (d) Resources are not always allocated in an optimum, , way, , The other names of, , analytical and priori method., , {a} Inductive method (b) Economic method, , (c) Deductive method (d) None of the above, , All points on PPC show that goods and services, , are produced at:, , (a) Least cost and some resources are wasted, , (b) High cost and no resources are wasted, , (c) Least cost and no resources are wasted, , (d) Moderate cost and no resources are wasted, , Which of the following is a cause of an economic, , problem?, , (a) Scarcity of Resources (b) Unlimited wants, , (c) Alternative uses (d) All of the above, , The Law of Scarcity, , (a) Does not apply to rich, developed countries, , (b) Does not apply to poor, under developed countries, , (c) Implies only to socialist economies., , (d) implies that all consumer wants will never be, completely satisfied, , Scarcity definitian of economics is given by, , (a) Alfred Marshall (b) J. B, Say, , (c) Allen and Hicks (d) Robbins, , Questions like what should be the level of national, , income, what should be the wage rate fall within, , the scope of:, , {a} Positive Science (b) Normative Science, , (c) Both (a) and (b) (d) None of the above, , The shape of PPC is concave due to:, , (a) Falling opportunity cost between two goods, , (b) Rising opportunity cost between two goods, , (c) Constant opportunity cost between two goods, , (d) None of the above, , Which of the following is not one of the features of, , capitalist economy?, , (a) Right of private property, , (b) Freedom of choice by the consumers, , (c) No profit, No Loss motive, , (d) Competition, , The definition “Economics is the science which, , studies human behavior as a relationship between, , method are abstract,

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Test Il, , Topper’s Classes, , ends and scarce means which have alternative, uses” was given by:, (a) J. B. Say, (c) Robbins, , (b) Alfred Marshal, (d) Paul. A. Samuelson, , . Economics is, , {a) Not a normative science., , (b) Not a positive science., , ({c) Partly science and partly art, , (d) Neither a normative nor a positive science,, , Which of the following statements is incorrect in, , case of capitalist economy?, , {a) There is equality of income among people in the, economy, , (b) Profit-motive gets precedence over social motive, , (c) Freedom of enterprise about what to produce, , (d) Right to own property, , Which of the following is likely to cause an inward, , shift in a country’s PPC?, , {a) Scientist discovering new techniques of, production, , {b) Workers getting job in making fly-over, , (c) War destroying resources of the country, , (d) The country finds new techniques of agricultural, production, , \f marginal opportunity cost is falling, the PPF, , would be:, , (a) Straight line (b) Concave, , {c) Backward bending —-(d) Convex, , We mainly study the following in Micro Economics, , fa) Location of a Industry (b) Study of firms, , (c) Factor pricing (d) All of the above, When we study why saving rates are high or low,, we are studying:, {a) Macro Economics (b) Micro Economics, (c) Both (a) and (b) (d) None of the above, . In Micro Economics we study the Economic, behaviour of:, {a) An Individual (b) Firm, (c) Industry (d) All of the above, Which of the following statements is correct?, (a) As normative science, Economics involves value, judgments, (b) Robbins has made economics as a form of welfare, economics, (c) The Law of Demand is always true, (d) None of the above, . An economy achieves “ productive efficiency”, when:, {a) The best quality goods are produced, (b) The highly skillful resources in the country are fully, empl, (c) All resources are utilized and goods and services, are produced at least cost, ({d) None of the above, ). Economic goods are goods which:, (a) Cannot be increased in quantity, (b) Obey the law of Micro Economics, , Chapter 1 (Economics), , FM 61 Time 80 Min, , (c) Are limited in supply and are scarce, (d) Are limited to man-made goods., , . Which of the following means an Economic, , activity?, , (a) Production of Goods, , (b) Production of Services, , (c) Consumption of Goods and Services, , (d) All of the above, , Which economy is now a myth only, as no country, , in the world is having that type of economy?, , (a) Capitalist Economy —_(b) Socialist Economy, , (c) Mixed Economy (d) None of the above, When we are studying how a producer fixes, the prices of his products we are studying., , (a) Macro Economics, , (b) Micro Economics, , (c) Both Micro and Macro Economics, , (d) None of the above, , . Macro economics doesn't include one, , example from the following:, (a) National Income and output, (b) Study of firms, , (c) General Price Level, , (d) Saving and Investment, , . Macro economics is the study of:, , (a) Inflation, (c) Growth, , (b) Unemployment, (d) Alll of the above, , . The law of scarcity:, , (a) Doesn't apply to rich, developed countries, , (b) Applies only to the less developed countries, , (c) implies that consumer wants will be satisfied, in a mixed economy, , (d) Implies that consumer wants will never be, completely satisfied, , . Which of the following statements is correct?, , (a) Economic laws are mere statement of, tendencies, , (b) Economics laws are as exact as physical laws, , (c) Economics laws are permanent, , (d) All of the above, , . Which of the following is a normative, , statement?, , (a) Planned economies allocate resources via, government departments, , (b) Reducing inequality should be a major, priorities for mixed economies, , (c) There is greater degree of consumer, sovereignty in market economies, , (d) Most economies have experienced problems, of falling output and rising prices, , . Gopal inherited 1 acre of land from his father, , in 1960. Today the value of that land is Rs 90, lakh per acre. What is the opportunity cost to

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Topper’s Classes, , Test Il Chapter 1 (Economics), , 61., , Gopal for keeping that land? His father paid, , Rs. 50, 000 for this land., , (a) Nothing, since the land was inherited, , (b) Rs.50, 000 which his father paid, , (c) Rs.90 lakh, since this amount Gopal is getting, now if he sells it, , (d) Both (b) and (c), , . Suraj is a high school senior thinking about, , becoming an economic research assistant., Shyam just graduated from college with an, economic degree and is looking for a job as, an economic research assistant. For whom is, the college tuition an opportunity cost?, , (a) Suraj, , (b) Shyam, , (c) Both Suraj and Shyam, , (d) Neither Suraj nor Shyam, , Right to own private property is found in:, , (a) Socialism (b) Capitalism, , (c) Mixed Economy (d) Both (b) and (c), , FM 61 Time 80 Min