Q1. Full employment is a situation where
(a) There is no involuntary unemployment
(b) There is involuntary unemployment
(c) There is no voluntary unemployment
(d) There is voluntary unemployment
Q2. The annual record for all the monetary transactions of a country with other countries of the world is known as
(a) Balance of trade
(b) Balance of monetary-receipts
(c) Balance of payments
(d) Balance sheet
Q3. The fixed cost on such factors of production which are neither hired not brought by the firm is called
(a) Social cost
(b) Opportunity cost
(c) Economic cost
(d) Surcharged cost
Q4. One of the essential conditions of monopolistic competition is
(a) Many buyers but one seller
(b) Price discrimination
(c) Product differentiation
(d) Homogeneous product
Q5. While determining income the expenditure on which of the following items is not considered as investment?
(a) Construction of factory
(b) Computer
(c) Increase in the stock of unsold articles
(d) Stock and share in joint stock company
Q6. In a business, raw materials, components, work-in-progress and finished goods are jointly regarded as
(a) capital stock
(b) inventory
(c) investment
(d) net worth
Q7. Equilibrium price means
(a) price determined by demand and supply
(b) price determined by cost and profit
(c) price determined by cost and production
(d) price determined to maximize profit
Q8. When aggregated supply exceeds aggregate demand
(a) unemployment falls
(b) prices rise
(c) inventories accumulate
(d) unemployment develops
Q9. When marginal utility is zero, the total utility is
(a) minimum
(b) increasing
(c) maximum
(d) decreasing
Q10. According to Keynesian theory of income determination, at full employment a fall in aggregate demand causes
(a) a fall in prices of output and resources
(b) a fall in real gross National product and employment
(c) a rise in real gross National product and investment
(d) a rise in prices of output and resources
Q11. State which of the following is correct? The consumer price index reflects
(a) the Standard of living
(b) the extent of inflation in the prices of consumer goods
(c) the increasing per capita income
(d) the growth of the economy
Q12. Transfer earning or alternative cost is otherwise known as
(a) Variable cost
(b) Implicit cost
(c) Explicit cost
(d) Opportunity cost (Economic cost)
Q13. Equilibrium is a condition that can
(a) never change
(b) change only if some outside factor changes
(c) change only if some internal factor changes
(d) change only if government policies change
Q14. Which of the following concepts are most closely associated with JM Keynes?
(a) Control of money supply
(b) Marginal utility theory
(c) Indifference curve analysis
(d) Marginal efficiency of capital
Q15. Average revenue means
(a) the revenue per unit of commodity sold
(b) the revenue from all commodities sold
(c) the profit realized from the marginal unit sold
(d) the profit realized by sale of all commodities
SOLUTIONS
S1. Ans.(b)
Sol.
S2. Ans.(c)
Sol.
S3. Ans.(a)
Sol.
S4. Ans.(c)
Sol.
S5. Ans.(c)
Sol.
S6. Ans.(b)
Sol.
S7. Ans.(a)
Sol.
S8. Ans.(c)
Sol.
S9. Ans.(c)
Sol.
S10. Ans.(a)
Sol.
S11. Ans.(b)
Sol.
S12. Ans.(d)
Sol.
S13. Ans.(c)
Sol.
S14. Ans.(d)
Sol.
S15. Ans.(a)
Sol.
