economics

Topics: Costs, Marginal cost, Supply and demand Pages: 10 (1408 words) Published: September 26, 2014
 Timings :1 hour TEST Max.Marks 58 Choose the most appropriate answer from the given options in respect of the following :

1)”Economics is the study of mankind in the ordinary business of life” was given by : a) Adam Smith
b)Lord Robbins
c)Alfred Marshall
d)Samuelson

2)A capitalist economy uses as the principal means of allocating resources a)Demand
b)Supply
c)Efficiency
d)Price

3)The commodity whose demand is associated with the name of Sir Robert Giffen: a)Necessary goods
b)Luxury goods
c)Inferior goods
d)Ordinary Goods

4)In case of straight line demand curve meeting two axis, the price elasticity of demand at the point where the curve meets Y-axis would be : a)Zero
b)Greater than one
c)Less than one
d)Infinity

5)Marginal Utility approach was given by :
a)J.R. Hicks
b)Alfred Marshall
c)Robbins
d)A.C. Pigou

6)Which economist said that money is the measuring rod of utility : a)A.C. Pigou
b)Marshall
c)Adam Smith
d)Robbins

7)If the supply curve is Perfectly Inelastic, the supply curve is : a)Vertical
b)Horizontal
c)Upward Sloping
d)Downward sloping

8)If the price of apples rise from Rs.30 per Kg to Rs.40 per Kg and the supply increases from 240 Kg to 300 Kg. Elasticity of supply is : a)0.75
b)0.67
c)00.67
d)00.77

9)Isoquants are equal to :
a)Product lines
b)Total Utility Lines
c)Cost Lines
d)Revenue Lines

10)An isoquant is ___________ to an iso-cost lines at equilibrium point : a)Convex
b)Concave
c)Tangent
d)Perpendicular

11)During the IInd stage of law of Diminishing Returns :
a)MP and TP is maximum
b)MP and AP are decreasing
c)AP is negative
d)TP is negative

12)An increase in supply with unchanged demand leads to ;
a)Rise in price and fall in quantity
b)Fall in both price and quantity
c)Rise in both price and quantity
d)Fall in price and rise in quantity

13)A monopolist is able to maximize his profits when :
a)His output is maximum
b)H charges a high price
c)His average cost is minimum
d)His marginal cost is equal to marginal revenue

14)A Gini Index of zero represents perfect __________:
a)Equality
b)Inequality
c)Profit
d)Loss

15)HDI does not consists of :
a)Longetivity
b)Knowledge
c)Life expectancy
d)Standard of living

16)Which year is known as the “Year of Great Divide ’’: a)1921
b)1951
c)1981
d)1991

17)The Indian Council of Agriculture Research and Development was established in : a)1947
b)1935
c)1929
d)1949

18)The Reserve Bank of India was nationalized in :
a)1947
b)1948
c)1949
d)1950

19)__________ is the apex bank for agriculture credit in India : a)RBI
b)SIDBI
c)NABARD
d)ICICI

20)A firm producing 7 units of output has an average total cost of Rs.150 and has to pay Rs.350 to its fixed factors of production. How much of the average total cost is made up of variable cost? a)Rs.200

b)Rs.50
c)Rs.300
d)Rs.100

21)A firm’s average fixed cost is Rs.20 at 6 units of output. What will it be at 3 units of output? a)Rs.60
b)Rs.30
c)Rs.40
d)Rs.20

22)Output (Units) Total Cost
0 30
1 40
2 50
3 60

Find the Average Fixed Cost of 3 units
a)10
b)30
c)65
d)60

23)Supernormal profits occur, when :
a)Total revenue is equal to total cost
b)Total revenue is equal to variable cost
c)Average revenue is more than average cost
d)Average revenue is equal to average cost

24)Price rigidity is a situation found in which of the following market forms : a)Perfect competition
b)Monopoly
c)Monopolistic Competition
d)Oligopoly

25)The difference between value of output and value added is : a)Depreciation
b)Intermediate consumption
c)Net Indirect Taxes
d)NFIA

26)Transfer payments refer to payments, which are made :
a)Without any...
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