Q1. Real wage is
(a) (Profit )/(Price level)
(b) Rent/(Price level)
(c) (Interest )/(Price level)
(d) (Money wage)/(Price level)
Q2. Which one of the following pairs of goods is an example for joint supply?
(a) Coffee and Tea
(b) Ink and Pen
(c) Tooth brush and Paste
(d) Wool and Mutton
Q3. Exploitation of labour is said to exist when
(a) Wage = Marginal Revenue Product
(b) Wage < Marginal Revenue Product
(c) Wage > Marginal Revenue Product
(d) Marginal Revenue Product = 0
Q4. Those payments which the firms make to outsiders for their goods and services are called
(a) Real costs
(b) Economic costs
(c) Explicit costs
(d) Implicit costs
Q5. Money supply is governed by the
(a) Planning Commission
(b) Finance Commission
(c) Reserve Bank of India
(d) Commercial Banks
Q6. The marginal propensity to consume lies between
(a) 0 to 1
(b) 0 to ∞
(c) 1 to ∞
(d) ∞ to ∞
Q7. Consumption function expresses the relationship between consumption and
(a) Savings
(b) Income
(c) Investment
(d) Price
Q8. For an inferior good, demand falls when
(a) Price rises
(b) Income rise
(c) Price falls
(d) Income falls
Q9. The ‘break-even’ point is where
(a) Marginal revenue equals marginal cost
(b) Average revenue equals average cost
(c) Total revenue equals total cost
(d) None of the above
Q10. In which market structure is the demand curve of the market represented by the demand curve of the firm?
(a) Monopoly
(b) Oligopoly
(c) Duopoly
(d) Perfect competition
Q11. Equilibrium price is the price when
(a) Supply is greater than demand
(b) Supply is less than demand
(c) Demand is very high
(d) Supply is equal to demand
Q12. Income and consumption are
(a) Inversely related
(b) Directly related
(c) Partially related
(d) Unrelated
Q13. Which one of the following is having elastic demand?
(a) Electricity
(b) Medicines
(c) Rice
(d) Match boxes
Q14. Cost of production of the producer is given by
(a) Sum of wages paid to labourers
(b) Sum of wages and interest paid on capital
(c) Sum of wages, interest, rent and supernormal profit
(d) Sum of wages, interest, rent and normal profit
Q15. Which of the following would not constitute an economic activity in Economics?
(a) A teacher teaching students in his college
(b) A teacher teaching students in a coaching institute
(c) A teacher teaching his own daughter at home
(d) A teacher teaching students under Sarva Shiksha Abhiyan Scheme
