Practice Test

Q1) Economics is a science because_________ Show Answer

Q2) Positive statements concern what is; normative statements concern— Show Answer

Q3) Which of the following statements are positive statements?
(i) India is overpopulated
(ii) Agricultural income should be taxed.
(iii) Service-class people should be exempted from income tax
(iv) There is tremendous tax evasion in India, Show Answer

Q4) The central problems of an economy arises because of— Show Answer

Q5) The central problems relating to allocation of resources are— Show Answer

Q6) The problem of 'What to produce’ relates to— Show Answer

Q7) Micro economics deals with— Show Answer

Q8) The objective of macro-economics is to study about— Show Answer

Q9) Micro economics covers the study of
(i) Consumer’s behavior
(ii) Producer's equilibrium
(iii) Fiscal system of an economy
(iv) Factor pricing Show Answer

Q10) Macro-economics is also known as
(i) Method of Lumping
(ii) Price Theory
(iii) General equilibrium analysis (iv) Aggregative Economics Show Answer

Q11) Which of the following is not correct? Show Answer

Q12) A theory may contain all but one of the following Show Answer

Q13) Positive economics deals with— Show Answer

Q14) Micro economics does not cover— Show Answer

Q15) Find the odd Show Answer

Q16) . A mixed economy to solve its central problems relies on— Show Answer

Q17) In a socialist economy, the basic force of economic activity is profit. This statement is— Show Answer

Q18) The interference of the government is very limited in— Show Answer

Q19) Both private and public sectors exist side by side in— Show Answer

Q20) In a competitive economy, the uncrowned king is— Show Answer

Q21) Wastes of competition are found in— Show Answer

Q22) A dual system of pricing exists in— Show Answer

Q23) One of the important features of capitalist economy is— Show Answer

Q24) ‘A government deficit will reduce unemployment and cause an increase in prices.' This statement is— Show Answer

Q25) Positive economics remains strictly neutral towards ends. This means that— Show Answer

Q26) "During the boom periods when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits”. This statement shows Show Answer

Q27) Social insurance, sickness benefits, old age pension, etc are some social benefits provided by— Show Answer

Q28) In a capitalistic economy what to produce depends on— Show Answer

Q29) The economy in which the government allows freedom of action of all economic units is essentially— Show Answer

Q30) Which of the following is not correct about capitalistic system— Show Answer

Q31) Which of the following is not the feature of socialist economy ? Show Answer

Q32) Micro economics is also known as— Show Answer

Q33) Economics is an art as— Show Answer

Q34) Study of the problem of poverty denotes that economics is— Show Answer

Q35) Framing suitable policies to solve inequalities of income denotes that economics is— Show Answer

Q36) Study of unemployment problem and then framing suitable policies to reduce the extent of unemployment shows that economics is
(i) Both a science and an art
(ii) Neither a science nor an art
(iii) Positive science
(iv) Normative science Show Answer

Q37) economics explains cause and
effect relationship between economic phenomena Show Answer

Q38) Positive economics concerns . Show Answer

Q39) Normative economics is in nature Show Answer

Q40) In the above conversation whose statements shows positive aspect of Economics? Show Answer

Q41) In the above conversation whose statements shows normative side of economics Show Answer

Q42) Shyam's statement in the above conversation shows— Show Answer

Q43) Bhola’s statement in the above conversation shows— Show Answer

Q44) As compared to other economic systems, inequalities of incomes is relatively less in economic system Show Answer

Q45) Price-mechanism is an important feature of -
(i) Market economy
(ii) Regulated economy
(iii) Mixed economy
(iv) Capitalist economy
Show Answer

Q46) Consumers and produces make their choices based on the market forces of demand and supply in— Show Answer

Q47) The problem of what goods and services are produced and how much, is covered by the general term— Show Answer

Q48) Business Economics is generally -------- in nature.
Show Answer

Q49) Capital intensive technique would be chosen in a______ Show Answer

Q50) Which of the following statement is incorrect? Show Answer

Q51) All of the following are within the scope of
Business Economics except ----------
Show Answer

Q52) Which of the following is considered as a disadvantage of allocating resources in a capitalist economy? Show Answer

Q53) If the demand for a commodity is _____,the entire burden of indirect tax will fall on the consumer. Show Answer

Q54) The meaning of the word ’Economic1 is most closely connected with the word Show Answer

Q55) Human Wants are Show Answer

Q56) "Ends" refer to Show Answer

Q57) "Means" refer to Show Answer

Q58) "Resources" refer to Show Answer

Q59) The Means for satisfying Wants are Show Answer

Q60) Which of the following is an economic activity? Show Answer

Q61) Which of the following is not an economic activity? Show Answer

Q62) Which of the following is an economic activity? Show Answer

Q63) Which of the following is an economic activity? Show Answer

Q64) The Law of Scarcity - Show Answer

Q65) Which of the following is the best general definition of the study of Economics? Show Answer

Q66) What implication(s) does resource scarcity have for the satisfaction of wants? Show Answer

Q67) Rational decision-making requires that - Show Answer

Q68) What is the "Fundamental Premise" of Economics? Show Answer

Q69) Consider the following and decide which, economy if any is without scarcity Show Answer

Q70) A system of economy in which all means of production are owned and controlled by private individuals for the purpose of profit is called ______ Show Answer

Q71) Economics is the study of - Show Answer

Q72) Scarcity in Economics is an - Show Answer

Q73) Resources are scarce in relation to Show Answer

Q74) The process of selecting the appropriate alternative, that will provide the most efficient means of attaining specified objectives, from two or more alternative courses of action available is called Show Answer

Q75) Which of the following statements is true? Show Answer

Q76) Business Decision making involves Show Answer

Q77) Which of the following is not a tool/component of Business Economics? Show Answer

Q78) Integration of Economic theory with business practice is called - Show Answer

Q79) Economic Theories are - Show Answer

Q80) Micro Economics is Show Answer

Q81) Business Economics has a Pragmatic Approach which means it is not Show Answer

Q82) Business economics is a science because Show Answer

Q83) The emphasis of Business Economics is more on Show Answer

Q84) Positive Science explains Show Answer

Q85) Normative Science is Show Answer

Q86) Normative Science explains - Show Answer

Q87) The study of the economic behaviour of an Individual Firm or Industry in the national economy is called - Show Answer

Q88) Micro Economics deals with Show Answer

Q89) Macro Economics deals with Show Answer

Q90) The technique of predicting future demand for goods and services on the basis of the past behaviour of factors is Show Answer

Q91) Inventory includes Show Answer

Q92) Which of the following is a cause of economic problem? Show Answer

Q93) The central problem in economics is that of Show Answer

Q94) Which of the following is not a central problem of economy? Show Answer

Q95) Which of the following is not one of the four central questions that the study of economics is supposed to answer? Show Answer

Q96) The Central Problems arise in case of Show Answer

Q97) The Central Problems of an economy are Show Answer

Q98) If there are adequate resources in an economy, then there is no economic problem at all. This statement is Show Answer

Q99) The problem of "What to produce" covers the issue relating to Show Answer

Q100) In deciding "What to produce", the economy should focus on the production of Show Answer

Q101) An economy which uses all its resources on production of …….. Goods only, cannot provide for future growth prospects. Show Answer

Q102) An economy achieves "Productive Efficiency" only when Show Answer

Q103) In deciding "How to produce", the economy should decide on Show Answer

Q104) In deciding "How to produce", the economy should consider Show Answer

Q105) In deciding "How to produce", the choice of appropriate production method depends on Show Answer

Q106) Capital Intensive Technique would get chosen in Show Answer

Q107) labour Intensive Technique would get chosen in Show Answer

Q108) Production of Capital Goods vs Consumer Goods relates to the problem of - Show Answer

Q109) Use of Labour or Capital intensive techniques of production relates to the problem of - Show Answer

Q110) Distribution and Sharing of National Product relates to the problem of Show Answer

Q111) The issue of "for whom to produce" deals with Show Answer

Q112) Savings and Investment is compulsory for economic growth and development. This statement is Show Answer

Q113) An economy can spend all its present resources on current consumption only. Show Answer

Q114) For analyzing ownership and utilization of resources, Economies are classified into Show Answer

Q115) Capitalist Economy is characterized by Show Answer

Q116) Capitalist Economy is characterized by Show Answer

Q117) A system of economy in which all means of production are owned and controlled by private individuals for the purpose profit is of called ______ Show Answer

Q118) Which of the following applies to a Capitalist Economy? Show Answer

Q119) Which of the following is not feature of capitalistic economy? Show Answer

Q120) A Capitalist Economy is also called as - Show Answer

Q121) Free market economy driving force is _______ Show Answer

Q122) In Capitalist Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q123) In which type of economy can each producer allocate his resources based on the demand? Show Answer

Q124) In a Free Market Economy the allocation of resources is determined by Show Answer

Q125) In a Free Market Economy, when consumers increase their purchase of a good and the level of ______ exceeds ______, then the prices of those goods tend to rise. Show Answer

Q126) In an economy, people have the freedom to buy or not to buy the goods offered in the market place, and this freedom to choose what they buy dictates what producers will ultimately produce. This condition is called Show Answer

Q127) "Consumer Sovereignty" refers to Show Answer

Q128) Freedom of choice is an advantage of: Show Answer

Q129) A Capitalist Economy uses ............. means of allocating resources Show Answer

Q130) The concept of "Competition" in a Capitalist Economy refers to Show Answer

Q131) Advertisement, Price-Cutting, Discounts, etc. in a Capitalist Economy are Show Answer

Q132) Which of the following statements regarding Market Economy is not true? Show Answer

Q133) "Inequalities of Income" refers to Show Answer

Q134) In which among the following systems the "Right to property" exists Show Answer

Q135) Command Economy refers to Show Answer

Q136) Where does "Price mechanism" exists. Show Answer

Q137) Socialist Economy is characterized by Show Answer

Q138) Socialist Economy is characterized by Show Answer

Q139) Which of the following applies to a Socialist Economy? Show Answer

Q140) Which of the following applies to a Socialist Economy? Show Answer

Q141) In a Command Economy, all decisions from the allocation of resources to the distribution of end products, is taken care of by Show Answer

Q142) Compared to other economic systems, National Income is more often evenly distributed in Show Answer

Q143) In Socialist Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q144) In a Socialist Economy, the concept of consumer Sovereignty is Show Answer

Q145) Socialist Economy is also called Show Answer

Q146) Socialist economy is also known as ……….. economy Show Answer

Q147) In the present day world, no economy is absolutely socialist in nature. This statement is Show Answer

Q148) Identify the correct statement: Show Answer

Q149) In which type of economic system is cost-benefit analysis used to answer the fundamental questions- what, how, and for whom to produce? Show Answer

Q150) In Mixed Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q151) Mixed Economy contains the positive aspects of Show Answer

Q152) The term mixed economy denotes Show Answer

Q153) In a Mixed Economy, there are ………. Sectors of industries. Show Answer

Q154) In a Mixed Economy, industries are found in- Show Answer

Q155) In a Mixed Economy, Industries in Private Sector have ....... as their objective and driving force. Show Answer

Q156) In a Mixed Economy, Industries in Public Sector have …….as their objective and driving force. Show Answer

Q157) Mixed Economy is characterized by Show Answer

Q158) Mixed Economy is characterized by Show Answer

Q159) Which of the following is applicable in case of a Mixed Economy? Show Answer

Q160) Prices of essential goods are decided by the Government, and prices of normal goods are decided by the market forces of demand and supply. This concept is called Show Answer

Q161) A Mixed Economy focusses on ensuring Show Answer

Q162) In a Mixed Economy, the Government may provide subsidies and other incentives, to make the Private Sector establish and develop industries in backward regions. This is primarily done to ensure Show Answer

Q163) In a Mixed Economy, the Private Sector Show Answer

Q164) Indian Economy is an example of Show Answer

Q165) In India, the Central Planning Authority is called Show Answer

Q166) In India, areas like Atomic Energy, Defence, etc. are in the hands of Show Answer

Q167) Capitalist Economy Show Answer

Q168) Demerits of Capitalistic Economy includes Show Answer

Q169) Autonomy and Freedom is more in Show Answer

Q170) Socialistic Economy
(i) Ensures minimum standard of living to all people
(ii) Restricts freedom of individuals
(iii) Does not give importance to personal efficiency and productivity
(iv) Emphasis on equal distribution of wealth
Show Answer

Q171) There is no freedom of choice in a Show Answer

Q172) When Economists speak of the Utility of a certain product, they are referring to Show Answer

Q173) Utility may be defined as Show Answer

Q174) Which of the following statements regarding Utility is not true? Show Answer

Q175) Utility is a Show Answer

Q176) Utility Show Answer

Q177) Utility is applicable Show Answer

Q178) Which of the following is not a consumption: Show Answer

Q179) All wants of an individuals are not of: Show Answer

Q180) Utility can be measured and quantified under Show Answer

Q181) Which of the following Utility approaches suggest that Utility can be measured and quantified? Show Answer

Q182) Which of the following Utility measurement approaches is based on the Marshallian school of thought? Show Answer

Q183) Marshallian utility analysis is known as ______ analysis Show Answer

Q184) Who is the main exponent of Marginal Utility Analysis? Show Answer

Q185) Marginal Utility Approach to demand was given by Show Answer

Q186) According to Marginal Utility analysis, Utility can be measured in Show Answer

Q187) Marginal Utility Approach is also called Show Answer

Q188) Cardinal Utility Approach is also known as Show Answer

Q189) Cardinal Measure of Utility is required in Show Answer

Q190) If we make the assumption that Utility can be expressed in numbers, we are adopting Show Answer

Q191) Which of the approaches uses Money Measurement Concept for Utility? Show Answer

Q192) Which of the theories is applicable under Cardinal Approach to Utility? Show Answer

Q193) Which one of the following assumptions is not necessary for the Cardinal Utility Theory? Show Answer

Q194) Cardinal Approach to Utility analyses Show Answer

Q195) Under Cardinal Approach to Utility ,……… is the measuring rod of Utility. Show Answer

Q196) Which of the following is an assumption under Cardinal Approach to Utility Analysis? Show Answer

Q197) Which of the following is not an assumption under Cardinal Approach to Utility Analysis? Show Answer

Q198) The Cardinal Approach to Utility Analysis assumes that Utility is measurable and quantifiable. This means Show Answer

Q199) The Cardinal Approach to Utility assumes Marginal Utility of Money is Show Answer

Q200) ……… is the sum total of the Utility derived from additional units of a commodity Show Answer

Q201) ……….. of a commodity is the additional Utility derived by a consumer, by consuming one more unit of that Commodity. Show Answer

Q202) Marginal Utility can be stated by Show Answer

Q203) Marginal Utility = Additional Utility derived by consuming …….. additional unit of a commodity. Show Answer

Q204) Marginal Utility Show Answer

Q205) Total Utility - Show Answer

Q206) Total Utility is maximum when Show Answer

Q207) When total utility is increases at a diminishing rate, then marginal utility is ______ Show Answer

Q208) Marginal Utility will always show Show Answer

Q209) The Marginal Utility Curve is Show Answer

Q210) The Total Utility derived by Ram by consuming 10 cups of Coffee is 99, whereas the total Utility on consumption of 11th Cup is 95. What is the Marginal Utility for 11th cup of Coffee? Show Answer

Q211) The Total Utility that Shyam derives after having 4 Mangoes is 10, and the Total Utility on consuming 5 Mangoes is 9. What is the Marginal Utility for 5th mango? Show Answer

Q212) Total Utility derived by Ram by eating 10 Cakes is 250. Marginal Utility of the 11th Cake is -60. What will be the Total Utility for 11 Cakes? Show Answer

Q213) Total Utility derived by Ram by eating 6 Apples is 300. Marginal Utility of the 7th Apple is 30. What will be the Total Utility for 7 Apples? Show Answer

Q214) The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives ……… from additional consumption. Show Answer

Q215) Which of the following laws states that the more a consumer consumes a product, the lesser the Utility he derives from the additional consumption? Show Answer

Q216) The 2nd glass of Lemon Juice gives lesser satisfaction to a thirsty person. This is a case of Show Answer

Q217) The Law of Diminishing Marginal Utility states that the more a consumer consumes a product, he derives lower utility from ………. Show Answer

Q218) After reaching a saturation point, consumption of additional units of the commodity cause - Show Answer

Q219) Marginal Utility of a commodity depends on its quantity and is Show Answer

Q220) Which of the following is not an assumption of Law of Diminishing Marginal Utility? Show Answer

Q221) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility? Show Answer

Q222) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility? Show Answer

Q223) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility? Show Answer

Q224) As per the Law of Diminishing Marginal Utility, Continuous Consumption means there should be ………. between the consumption of one unit and another unit. Show Answer

Q225) The Law of Diminishing Marginal Utility does not apply to ………., where personal preferences are dominant. Show Answer

Q226) The Law of Diminishing Marginal Utility will not hold good if the Income of the Consumer - Show Answer

Q227) The Law of Diminishing Marginal Utility is based on the assumption that the habits and tastes of the consumer - Show Answer

Q228) If customers' taste or liking for an item increases with additional consumption, then the Law of Diminishing Marginal Utility will still hold good. This statement is Show Answer

Q229) One of the assumptions is that the Law of Diminishing Marginal Utility is not applicable to Show Answer

Q230) As per the assumptions to the Law of Diminishing Marginal Utility, in case of money, gold, etc. a greater quantity may Show Answer

Q231) Utility may be affected by the presence or absence of Show Answer

Q232) Utility obtained from tea may be affected if no sugar is available. This statement is Show Answer

Q233) Law of Diminishing Marginal Utility applies only if ……….. to measurement of utility is assumed. Show Answer

Q234) Which of the following laws say "If a person has a product which can be put to several uses lie will distribute it among these uses in such a way that it has the same Marginal Utility'? Show Answer

Q235) The Consumer will attain maximum satisfaction, and will be in equilibrium when MU of money spent on various goods that he buys, are Show Answer

Q236) The Consumer will attain ………. satisfaction, and will be in equilibrium when MU of money spent on various goods that he buys, are equal. Show Answer

Q237) The Consumer will attain maximum satisfaction, and will be ……….. when MU of money spent on various goods that he buys, are equal. Show Answer

Q238) The Consumer will attain maximum satisfaction, and will be in equilibrium when ……… that he buys, are equal. Show Answer

Q239) If MU of money spent on Commodity A is greater than the MU of money spent on Commodity B, the Consumer will withdraw some money from the purchase of B, and will spend it on A, till the MU of money in the two cases becomes equal. Which theory says so? Show Answer

Q240) The Law of Equi-Marginal Utility applies because Show Answer

Q241) As per the Ordinal Approach Show Answer

Q242) If we make the assumption that Utility cannot be expressed in numbers, we are adopting Show Answer

Q243) In which approach is Utility ranked in order of preferences but not measured and quantified? Show Answer

Q244) Which of the following statements regarding Ordinal Utility is true? Show Answer

Q245) Ordinal Utility Approach is also called Show Answer

Q246) Which of the following Economists is not concerned with Ordinal Utility Approach? Show Answer

Q247) Which approach suggests that Human Satisfaction is a psychological phenomenon, and cannot be measured quantitatively in monetary terms? Show Answer

Q248) Ordinal Approach to Utility analyses Show Answer

Q249) Which of the approaches dispenses with the Money Measurement Concept for Utility? Show Answer

Q250) Which of the approaches helps to explain the Law of Demand? Show Answer

Q251) The economic analysis expects the Consumer to behave in a ……… manner. Show Answer

Q252) A Rational Person does not act unless - Show Answer

Q253) Rational decision-making requires that Show Answer

Q254) A Buyer's willingness to pay is that Buyer's Show Answer

Q255) The Consumer will be willing to purchase an item, so long as the Marginal Utility (additional satisfaction) derived is equal to the Price of the commodity. This principle is called Show Answer

Q256) The Consumer is in equilibrium when Marginal Utility from a Commodity equals Show Answer

Q257) If the Price paid is more than the additional satisfaction derived from that item, the Consumer will Show Answer

Q258) Consumer is in equilibrium and he keeps purchasing till the point Show Answer

Q259) Consumer Surplus means Show Answer

Q260) Consumer Surplus is the area Show Answer

Q261) In economics, what a Consumer is ready to pay minus what he actually pays, is termed as Show Answer

Q262) Consumer Surplus can be best represented as Show Answer

Q263) "The excess of Price which he would be willing to pay rather than go without the thing over that which he actually does pay in the economic measure of his surplus satisfaction" is given by Show Answer

Q264) ______ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays. Show Answer

Q265) The difference between the price a consumer is willing to pay and the price he actually pays is called Show Answer

Q266) The law of Consumer Surplus is based on Show Answer

Q267) From which of the following concept of consumer's surplus has been derived Show Answer

Q268) The concept of Consumer Surplus arises since for all earlier units purchased (i.e. prior to equilibrium point) Show Answer

Q269) The concept of Consumer Surplus arises due to the reason that Show Answer

Q270) The concept of Consumer Surplus arises due to the reason that Show Answer

Q271) If MU, is the Marginal Utility of product X and Px is the price of Product X, a Rational Consumer will consume the Product X until Show Answer

Q272) At the point of Consumers' Equilibrium Show Answer

Q273) In the concept of Consumer's Equilibrium and Consumer's Surplus, for the quantity purchased at the equilibrium level Show Answer

Q274) In the concept of Consumer's Equilibrium and Consumer's Surplus, for the quantity purchased at the equilibrium level, Marginal Utility is Show Answer

Q275) For the quantity purchased at the Consumer's Equilibrium level, is Show Answer

Q276) Consumers' Surplus arises in respect of - Show Answer

Q277) A Consumer consumed three units of a product. Marginal Utilities derived from the three units are ? 400, ? 350 and ? 300, respectively. If the price of the product is ? 300 per unit, the Consumer Surplus is Show Answer

Q278) A Consumer consumed three units of a product. Marginal Utilities derived from the first two units are ? 500 and ? 400. If the price of the product is ? 300 per unit and the Consumer is in equilibrium at 3 units, the Marginal Utility of the 3rd unit should be Show Answer

Q279) A Consumer consumed 3 units of a product. Marginal Utilities derived from the first two units are ? 500 and ? 400. If the price of the product is ? 300 per unit and the Consumer is in equilibrium at 3 units, the Consumer Surplus will be Show Answer

Q280) Consumer Surplus is highest in the case of Show Answer

Q281) Which of the following goods give the maximum amount of Consumer Surplus? Show Answer

Q282) Which of the following statements regarding Consumer Surplus is not true? Show Answer

Q283) ______ Consumer Surplus indicates higher level of efficiency in the economy. Show Answer

Q284) ……….. is helpful in designing Government policies and implementing welfare programs. Show Answer

Q285) While analyzing Marshall's measure of Consumer's Surplus, we assume Show Answer

Q286) Suppose that the price of a new bicycle is ? 3,000. Nathan values a new bicycle at ? 5,000. What is the value of Total Consumer Surplus if he buys a new bi-cycle? Show Answer

Q287) If a buyer's willingness to pay for a new car is ? 12,00,000, and she is able to actually buy it for ? 9,00,000, her Consumer Surplus is Show Answer

Q288) Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay ? 30 for one, Buyer 2 is willing to pay ? 25 for one, and Buyer 3 is willing to pay ? 20 for one. If the price is Rs 25, how many vases will be sold and what is the value of j Consumer Surplus in this market Show Answer

Q289) Consumer stops purchasing the additional units of the commodity when Show Answer

Q290) Consumer's Surplus left with the consumer under Price Discrimination is Show Answer

Q291) Under which of the following market types will Consumer's Surplus be generally minimum Show Answer

Q292) A Monopolist will try to Consumer's Surplus to his advantage by adopting Show Answer

Q293) In case of two or more products, a Consumer reaches equilibrium when Show Answer

Q294) If the value of MUx/Px is more than MUy /Py, then the Consumer Show Answer

Q295) If the prices of ice-cream and chocolate are ? 40 and ? 30 respectively, and the Marginal Utility of Chocolate is 150, what is the Marginal Utility of icecream assuming that consumer is at equilibrium? Show Answer

Q296) Which among the following is the drawback of Consumer Surplus (as explained in Marginal Utility analysis)? Show Answer

Q297) In case of necessaries, the Marginal Utilities of the first few units are Show Answer

Q298) The Consumer's Surplus derived from a product is …….. by the availability of substitutes. Show Answer

Q299) The concept of Consumer's Surplus fails in case of articles which are used for their prestige value, e.g. Diamonds, etc. This statement is Show Answer

Q300) The concept of Consumer's Surplus is based on the assumption that Marginal Utility of Money is Show Answer

Q301) The concept of Consumer's Surplus adopts Show Answer

Q302) If we make the assumption that Utility cannot be expressed in monetary terms, the concept of Consumer's Surplus Show Answer

Q303) Indifference Curve Approach to Utility Analysis was given by Show Answer

Q304) According to Indifference Curve analysis, Utility can be measured in Show Answer

Q305) Indifference Curve Approach is also called Show Answer

Q306) Ordinal Utility Approach is also known as Show Answer

Q307) Ordinal Utility Approach is also known as Show Answer

Q308) In Indifference Curve Analysis, the Customers' preferences are Show Answer

Q309) ……… shows various combinations of two products that give same amount of satisfaction. Show Answer

Q310) An Indifference Curve represents all those combinations of goods which gives Show Answer

Q311) All points on the same Indifference Curve represents Show Answer

Q312) The Consumer is said to be ……… among different points on an IC Show Answer

Q313) Indifference Curve slopes Show Answer

Q314) Indifference curve is convex slope, the reason is _________ Show Answer

Q315) Indifference Curve is downward sloping Show Answer

Q316) Indifference Curve has - Show Answer

Q317) The reasons for downward sloping curve Show Answer

Q318) ……..have a negative slope and cannot intersect each other. Show Answer

Q319) An Indifference Curve slopes down towards right, since more of one commodity and less of another result in- Show Answer

Q320) An Indifference Curve is - Show Answer

Q321) Which of the following statements regarding Indifference Curve is not true? Show Answer

Q322) Which of the following is a feature of the Indifference Curve? Show Answer

Q323) Which of the following is a property of an Indifference Curve? Show Answer

Q324) Which of the following is not a property of the Indifference Curve? Show Answer

Q325) Which of the following statements is incorrect? Show Answer

Q326) Which of the following is not an assumption of the Theory of Demand based on analysis of Indifference Curves? Show Answer

Q327) Indifference Curve approach assumes Show Answer

Q328) Indifference Curve approach deals with Show Answer

Q329) Indifference Curve Approach assumes Show Answer

Q330) The Indifference Curve Approach does not assume Show Answer

Q331) If two goods were perfect substitutes of each other, it means that the Indifference Curve relating to the two goods Show Answer

Q332) When two goods are perfect substitutes of each other, the Indifference Curve is a Show Answer

Q333) In the case of two perfect substitutes, the indifference curve will be : Show Answer

Q334) When an Indifference Curve is L shaped, then two goods will be Show Answer

Q335) ……………. depicts complete picture of consumer’s tastes and preferences. Show Answer

Q336) A set of ………. is called Indifference Map. Show Answer

Q337) Under Indifference Map, even though higher levels of satisfaction are identified, it cannot be quantified as such. This statement is Show Answer

Q338) The farther the Indifference Curve is from the origin, then Show Answer

Q339) A higher Indifference Curve shows Show Answer

Q340) A higher Indifference Curve shows Show Answer

Q341) A lower Indifference Curve shows Show Answer

Q342) A lower Indifference Curve shows Show Answer

Q343) Combinations lying on a higher Indifference Curve contain more of Show Answer

Q344) The general assumption in Consumer Behaviour under Indifference Curve Analysis is that more goods are preferred to less of them. This statement is Show Answer

Q345) An Indifference Map can also be drawn such that two Indifference Curves cut each other. This statement is Show Answer

Q346) No two ICs will cut or intersect each other. This statement is Show Answer

Q347) ……….. indicates how much of one commodity is substituted for how much of another commodity. Show Answer

Q348) In the context of Indifference Curve Analysis, MRS stands for Show Answer

Q349) MRS is indicated by Show Answer

Q350) MRS indicates movement Show Answer

Q351) Generally, MRS shows Show Answer

Q352) Decreasing Trend of MRS makes the Indifference Curve Show Answer

Q353) If marginal rate of substitution is increasing then shape of indifference curve is ______ Show Answer

Q354) Convexity of IC is due to Show Answer

Q355) Why does the Indifference Curve Analysis approach operate? Show Answer

Q356) In order to get maximum satisfaction, the consumer has to work under some constraints. These constraints are explained by Show Answer

Q357) A ………. shows all those combinations of two goods which the consumer can buy spending his given money income on the two goods at their given prices. Show Answer

Q358) Budget Line is also called Show Answer

Q359) Price Line is also called Show Answer

Q360) The price line/Budget lint of a consumer is Show Answer

Q361) If a combination is below the Price Line, it indicates that there is Show Answer

Q362) A Point below the Price Line represents Show Answer

Q363) Every Point below the Price Line represents Show Answer

Q364) A Point above the Price Line will be …….. the reach of the Consumer, at his present levels of income and spending. Show Answer

Q365) Budget Line shows all the combinations of …….. products. Show Answer

Q366) As Consumers' Income and Spending increases, the Price Line or Budget Line Show Answer

Q367) If Consumers' Income and Spending decreases, the Price Line or Budget Line Show Answer

Q368) As per Indifference Curve Analysis, to maximise his satisfaction, a Consumer will try to Show Answer

Q369) To Consumer's objective of maximising his satisfaction and reaching the highest possible Indifference Curve is restricted by Show Answer

Q370) The Consumer is in Equilibrium at a point where the Budget Line Show Answer

Q371) A Consumer is at equilibrium when Show Answer

Q372) At the equilibrium point on Indifference Curve which of the following equation is satisfied? Show Answer

Q373) At the equilibrium point on Indifference Curve which of the following equation is satisfied? Show Answer

Q374) At the equilibrium point on Indifference Curve which of the following is satisfied? . Show Answer

Q375) What will be the Marginal Utility of Product A, if the prices of A and B are ? 10 and ? 20 respectively, and the Marginal Utility of Product B is 50, assuming that the Consumer is at equilibrium? Show Answer

Q376) The Marginal Utilities of Product A and Product B are 300 and 450 at equilibrium respectively. If the price of the product B is ? ? 60, what is the price of Product A at equilibrium level? Show Answer

Q377) Under Income Effect, the Consumer Show Answer

Q378) Which of the following is not an assumption in Consumer Equilibrium analysis under Indifference Curve Approach? Show Answer

Q379) In Consumer Equilibrium analysis under Indifference Curve Approach, the Consumer is assumed to spend his income ……… on two goods. Show Answer

Q380) ‘Economics is the study of mankind in the ordinary business of life’ was given by : Show Answer

Q381) The branch of economic theory that deals with the problem of allocation of resources is : Show Answer

Q382) A study of how increase in the corporate income tax rate will affect the natural unemployment rate is an example of: Show Answer

Q383) Under a free economy, prices are: Show Answer

Q384) Under Inductive method, the logic proceeds from : Show Answer

Q385) According to Robbins, ‘means’ are: Show Answer

Q386) Who defines Economics in terms of Dynamic Growth and Development? Show Answer

Q387) A Free Market economy solves its Central Problems through _________. Show Answer

Q388) Normative aspect of Economics is given by : Show Answer

Q389) Which one is not the characteristic of capitalistic economy? Show Answer

Q390) Mixed economy means Show Answer

Q391) Which one in the following is not correct: Show Answer

Q392) Who gave the positive aspect of science? Show Answer

Q393) Which of these is an example of macro economics : Show Answer

Q394) Which of the following statements is incorrect? Show Answer

Q395) Inequalities of income do not perpetuate in __________. Show Answer

Q396) Normative Economics is based on: Show Answer

Q397) In Inductive method, logic proceeds from: Show Answer

Q398) A Capitalist Economy follows the policy of :- Show Answer

Q399) ‘Economics is the science of choice making’ it implies:- Show Answer

Q400) Which of the following is a part of the subject matter of macro economics? Show Answer

Q401) Deductive and Inductive methods are complimentary to each other. It is: Show Answer

Q402) "Economics is neutral between ends". The statement is given by: Show Answer

Q403) Economics which is concerned with welfare propositions is called Show Answer

Q404) Who has defined economics as “Science which deals with wealth” ? Show Answer

Q405) The most important function of an entrepreneur is to _____ . Show Answer

Q406) Under Inductive method logic proceeds from: Show Answer

Q407) The meaning of time element in Economics is: Show Answer

Q408) __________ is another name of production possibility curve. Show Answer

Q409) Who is the author of “The Nature and causes of wealth of Nation”? Show Answer

Q410) Find out the correct statement Show Answer

Q411) Which of the following illustrate a decrease in unemployment using the PPF? Show Answer

Q412) Definition of economics given by Robbins does not deal with one of the following aspect. Indicate that aspect. Show Answer

Q413) In which of the following methods conclusions are drawn on the basis of collection and analysis of facts? Show Answer

Q414) Which Economic System is described by Schumpeter as ‘capitalism in the oxygen tent’? Show Answer

Q415) Production Possibility Curve (PPC) is also known as: Show Answer

Q416) Socialist Economy was propounded by: Show Answer

Q417) Concept of Business Economics was given by: Show Answer

Q418) “Features of the book wealth of nations” Show Answer

Q419) Which economic system is described by Schumpeter as capitalism in the oxygentent? Show Answer

Q420) Business Economics is also known as? Show Answer

Q421) Which is not included in Economics? Show Answer

Q422) Business Economics involves the elements of. Show Answer

Q423) In which economy market and government both play on important role? Show Answer

Q424) Socialism ensures Show Answer

Q425) Macroeconomics includes Show Answer

Q426) Exploitation and inequality will be more in ...... Show Answer

Q427) SHYAM : This year due to heavy rainfall my onion crop was damaged
KRISHNA : Climates affect crop yields. Some years are bad, others are good
HARI : Don't worry- Price increase will compensate for the fall in quantity supplied
RADHE : The government ought to gurantee that our income will not fall.
In this conversation, the normative statement is made by Show Answer

Q428) Which of the following is correct ? Show Answer

Q429) A capitalist economy consists of Show Answer

Q430) As per the World Bank's International Debt Statistics 2017, India continues to be amongst the ...... countries. Show Answer

Q431) Applied economics includes Show Answer

Q432) Economic goods are considered as scarce resources because ..... Show Answer

Q433) Due to recession, employment rate and output ..... Show Answer

Q434) Freedom of choice is the advantage of ....... Show Answer

Q435) ....... refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity, such that if they are removed the total level of output remains unchanged. Show Answer

Q436) Socialist economy is .... Show Answer

Q437) A capitalist economy uses .... as a principal means of allocating resources : Show Answer

Q438) In a market economy all assets are held by : Show Answer

Q439) Larger production of ..... goods would lead to higher production in future. Show Answer

Q440) Which is the first book of Economics named as .... Show Answer

Q441) Which type of scarcity is referred to in economics Show Answer

Q442) Consumer sovereignty is which of the following characteristics ? Show Answer

Q443) The study of behaviour of different individuals organisations within an economic system is known as : Show Answer

Q444) The nature of business economics is : Show Answer

Q445) A socialistic economy is also called as : Show Answer

Q446) In capitalistic economy ... and ... will be more. Show Answer

Q447) In which economy, cost benefit analysis is used to answer the fundamental questions of economy ? Show Answer

Q448) In which economic system production and distribution of goods and services aim at maximizing the welfare of community as a whole ? Show Answer

Q449) ...... are responsible for all economic problems. Show Answer

Q450) Capitalist system offer incentives for : Show Answer

Q451) Macro-economic is also called .... economics : Show Answer

Q452) The book "Wealth of Nations" was written by .... Show Answer

Q453) Rama : My corn harvest this year is poor.
Manoj : Don't worry. Price increase will compensate for the fall in quantity supplied.
Meera : Climate affects crop yield. Some years are bad, others are good.
Bharti : The Government ought to guarantee that our income will not fall.
In this conversation, the normative statement is made by : Show Answer

Q454) In a mixed economy, the .... are .... sectors of industries. Show Answer

Q455) An economy exists because of two basics facts. i.e. ...... Show Answer

Q456) An economy is called capitalist economy, when .... is given. Show Answer

Q457) Coexistance of public and private sector is the feature of ... Show Answer

Q458) Which one of the area comes macro-economics ? Show Answer

Q459) Laissez - Faire economy is also known as : Show Answer

Q460) In economics, we use the term scarcity to mean : Show Answer

Q461) Micro economics is also known as : Show Answer

Q462) The Famous book abbreviated as " The Wealth of Nations", which is also considered as the first modern work of Economics, was written by : Show Answer

Q463) The economic system in which production and distribution of goods are aimed at maximizing the welfare of the community as whole known as : Show Answer

Q464) The Central Economics problem does not deal with which of the following economic problems ? Show Answer

Q465) Study of behaviour of different individual and organizations within an economic system is called : Show Answer

Q466) The concept of socialist economy was propounded by .... Show Answer

Q467) Which of the following is not a study of Macro economics ? Show Answer

Q468) Which one of the following is not the scope of business economics ? Show Answer

Q469) Which of the following statement is correct ? Show Answer

Q470) The central economic problem of an economy arises due to : Show Answer

Q471) Business Economics is essentially a component of Applied Economics as it includes application of selected quantitatives techniques which technique is not included in it ? Show Answer

Q472) Business economics is pragmatic in its approach because ? Show Answer

Q473) Socialist Economy is also known as ___. Show Answer

Q474) The term socialist economy was coined by
Show Answer

Q475) Most important feature of capitalist economy is ___ . Show Answer

Q476) Mr Rohit invited a consultant for knowing staff requirement, consumer behaviour and product pricing. The approach consultant is looking -
Show Answer

Q477) Which of the following is not included in Micro economics ?
Show Answer

Q478) A mixed economy refers to ___.
Show Answer

Q479) Which of the following is not within the scope of Business Economics ? Show Answer

Q480) Which are the areas that come under, macro-economics ?
Show Answer

Q481) Economics is ___.
Show Answer

Q482) Which of the following is demerit of capitalism :
Show Answer

Q483) Scarcity definition in economics in given by
Show Answer

Q484) Normative economics can be explained through :
Show Answer

Q485) Predominance of bureaucracy under which system ? Show Answer

Q486) Find the correct statement : Show Answer

Q487) Micro economics is also known as : Show Answer

Q488) Normative science refers to :
Show Answer

Q489) Business is pragmatic in approach :
Show Answer

Q490) Central problems of economics -
Show Answer

Q491) Business economics being ___ in approach tackles practical problems. Show Answer

Q492) Which of the following is incorrect ? Show Answer

Q493) ____________ economic system is self-regulating and run by invisible hands.
Show Answer

Q494) Indian economy is classified as: Show Answer

Q495) The basic problem of scarcity gives rise to:
Show Answer

Q496) Which of the following is NOT a basic problem of all economy?
Show Answer

Q497) _____________ involves the predominance of bureaucracy and resulting in inefficiencies and delays. Show Answer

Q498) Capitalist system offers incentives for:
Show Answer

Q499) 'Analysis of impact of COVID-19 on the Indian Economy' is a part of:
Show Answer

Q500) The 'communist manifesto' related to socialist economy propounded by Karl Marx and Frederic Engels was published in:
Show Answer

Q501) 'Consumer sovereignty' is a feature of:
Show Answer

Q502) Which one of the following is not a central problem of an economy?
Show Answer

Q503) The price of hot dogs increases by 22% and the quantity demanded falls by 25%. This indicates that demand for hot dogs is: Show Answer

Q504) Which of the following is the central problem of economy? Show Answer

Q505) Economics is classified into: Show Answer

Q506) Under which of the following economy the consumer have limited freedom of choice? Show Answer

Q507) Which one of the following is not the Subject matter of Micro Economics? Show Answer

Q508) Which of the following is one of the merits of socialism? Show Answer

Q509) Capitalist Economy solve their economic problems through which of the following? Show Answer

Q510) An Economic system in which all means of production are owned and controlled by Private Individual is called as
? Show Answer