Practice Test


1) Economics is a science because_________


2) Positive statements concern what is; normative statements concern—


3) 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,


4) The central problems of an economy arises because of—


5) The central problems relating to allocation of resources are—


6) The problem of 'What to produce’ relates to—


7) Micro economics deals with—


8) The objective of macro-economics is to study about—


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


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


11) Which of the following is not correct?


12) A theory may contain all but one of the following


13) Positive economics deals with—


14) Micro economics does not cover—


15) Find the odd


16) . A mixed economy to solve its central problems relies on—


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


18) The interference of the government is very limited in—


19) Both private and public sectors exist side by side in—


20) In a competitive economy, the uncrowned king is—


21) Wastes of competition are found in—


22) A dual system of pricing exists in—


23) One of the important features of capitalist economy is—


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


25) Positive economics remains strictly neutral towards ends. This means that—


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


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


28) In a capitalistic economy what to produce depends on—


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


30) Which of the following is not correct about capitalistic system—


31) Which of the following is not the feature of socialist economy ?


32) Micro economics is also known as—


33) Economics is an art as—


34) Study of the problem of poverty denotes that economics is—


35) Framing suitable policies to solve inequalities of income denotes that economics is—


36) 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


37) economics explains cause and
effect relationship between economic phenomena


38) Positive economics concerns .


39) Normative economics is in nature


40) In the above conversation whose statements shows positive aspect of Economics?


41) In the above conversation whose statements shows normative side of economics


42) Shyam's statement in the above conversation shows—


43) Bhola’s statement in the above conversation shows—


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


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


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


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


48) Business Economics is generally -------- in nature.


49) Capital intensive technique would be chosen in a______


50) Which of the following statement is incorrect?


51) All of the following are within the scope of
Business Economics except ----------


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


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


54) The meaning of the word ’Economic1 is most closely connected with the word


55) Human Wants are


56) "Ends" refer to


57) "Means" refer to


58) "Resources" refer to


59) The Means for satisfying Wants are


60) Which of the following is an economic activity?


61) Which of the following is not an economic activity?


62) Which of the following is an economic activity?


63) Which of the following is an economic activity?


64) The Law of Scarcity -


65) Which of the following is the best general definition of the study of Economics?


66) What implication(s) does resource scarcity have for the satisfaction of wants?


67) Rational decision-making requires that -


68) What is the "Fundamental Premise" of Economics?


69) Consider the following and decide which, economy if any is without scarcity


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


71) Economics is the study of -


72) Scarcity in Economics is an -


73) Resources are scarce in relation to


74) 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


75) Which of the following statements is true?


76) Business Decision making involves


77) Which of the following is not a tool/component of Business Economics?


78) Integration of Economic theory with business practice is called -


79) Economic Theories are -


80) Micro Economics is


81) Business Economics has a Pragmatic Approach which means it is not


82) Business economics is a science because


83) The emphasis of Business Economics is more on


84) Positive Science explains


85) Normative Science is


86) Normative Science explains -


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


88) Micro Economics deals with


89) Macro Economics deals with


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


91) Inventory includes


92) Which of the following is a cause of economic problem?


93) The central problem in economics is that of


94) Which of the following is not a central problem of economy?


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


96) The Central Problems arise in case of


97) The Central Problems of an economy are


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


99) The problem of "What to produce" covers the issue relating to


100) In deciding "What to produce", the economy should focus on the production of


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


102) An economy achieves "Productive Efficiency" only when


103) In deciding "How to produce", the economy should decide on


104) In deciding "How to produce", the economy should consider


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


106) Capital Intensive Technique would get chosen in


107) labour Intensive Technique would get chosen in


108) Production of Capital Goods vs Consumer Goods relates to the problem of -


109) Use of Labour or Capital intensive techniques of production relates to the problem of -


110) Distribution and Sharing of National Product relates to the problem of


111) The issue of "for whom to produce" deals with


112) Savings and Investment is compulsory for economic growth and development. This statement is


113) An economy can spend all its present resources on current consumption only.


114) For analyzing ownership and utilization of resources, Economies are classified into


115) Capitalist Economy is characterized by


116) Capitalist Economy is characterized by


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


118) Which of the following applies to a Capitalist Economy?


119) Which of the following is not feature of capitalistic economy?


120) A Capitalist Economy is also called as -


121) Free market economy driving force is _______


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


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


124) In a Free Market Economy the allocation of resources is determined by


125) 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.


126) 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


127) "Consumer Sovereignty" refers to


128) Freedom of choice is an advantage of:


129) A Capitalist Economy uses ............. means of allocating resources


130) The concept of "Competition" in a Capitalist Economy refers to


131) Advertisement, Price-Cutting, Discounts, etc. in a Capitalist Economy are


132) Which of the following statements regarding Market Economy is not true?


133) "Inequalities of Income" refers to


134) In which among the following systems the "Right to property" exists


135) Command Economy refers to


136) Where does "Price mechanism" exists.


137) Socialist Economy is characterized by


138) Socialist Economy is characterized by


139) Which of the following applies to a Socialist Economy?


140) Which of the following applies to a Socialist Economy?


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


142) Compared to other economic systems, National Income is more often evenly distributed in


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


144) In a Socialist Economy, the concept of consumer Sovereignty is


145) Socialist Economy is also called


146) Socialist economy is also known as ……….. economy


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


148) Identify the correct statement:


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


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


151) Mixed Economy contains the positive aspects of


152) The term mixed economy denotes


153) In a Mixed Economy, there are ………. Sectors of industries.


154) In a Mixed Economy, industries are found in-


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


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


157) Mixed Economy is characterized by


158) Mixed Economy is characterized by


159) Which of the following is applicable in case of a Mixed Economy?


160) 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


161) A Mixed Economy focusses on ensuring


162) 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


163) In a Mixed Economy, the Private Sector


164) Indian Economy is an example of


165) In India, the Central Planning Authority is called


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


167) Capitalist Economy


168) Demerits of Capitalistic Economy includes


169) Autonomy and Freedom is more in


170) 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


171) There is no freedom of choice in a


172) When Economists speak of the Utility of a certain product, they are referring to


173) Utility may be defined as


174) Which of the following statements regarding Utility is not true?


175) Utility is a


176) Utility


177) Utility is applicable


178) Which of the following is not a consumption:


179) All wants of an individuals are not of:


180) Utility can be measured and quantified under


181) Which of the following Utility approaches suggest that Utility can be measured and quantified?


182) Which of the following Utility measurement approaches is based on the Marshallian school of thought?


183) Marshallian utility analysis is known as ______ analysis


184) Who is the main exponent of Marginal Utility Analysis?


185) Marginal Utility Approach to demand was given by


186) According to Marginal Utility analysis, Utility can be measured in


187) Marginal Utility Approach is also called


188) Cardinal Utility Approach is also known as


189) Cardinal Measure of Utility is required in


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


191) Which of the approaches uses Money Measurement Concept for Utility?


192) Which of the theories is applicable under Cardinal Approach to Utility?


193) Which one of the following assumptions is not necessary for the Cardinal Utility Theory?


194) Cardinal Approach to Utility analyses


195) Under Cardinal Approach to Utility ,……… is the measuring rod of Utility.


196) Which of the following is an assumption under Cardinal Approach to Utility Analysis?


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


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


199) The Cardinal Approach to Utility assumes Marginal Utility of Money is


200) ……… is the sum total of the Utility derived from additional units of a commodity


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


202) Marginal Utility can be stated by


203) Marginal Utility = Additional Utility derived by consuming …….. additional unit of a commodity.


204) Marginal Utility


205) Total Utility -


206) Total Utility is maximum when


207) When total utility is increases at a diminishing rate, then marginal utility is ______


208) Marginal Utility will always show


209) The Marginal Utility Curve is


210) 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?


211) 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?


212) 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?


213) 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?


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


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


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


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


218) After reaching a saturation point, consumption of additional units of the commodity cause -


219) Marginal Utility of a commodity depends on its quantity and is


220) Which of the following is not an assumption of Law of Diminishing Marginal Utility?


221) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility?


222) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility?


223) Which of the following is an assumption of Law of the Law of Diminishing Marginal Utility?


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


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


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


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


228) 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


229) One of the assumptions is that the Law of Diminishing Marginal Utility is not applicable to


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


231) Utility may be affected by the presence or absence of


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


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


234) 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'?


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


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


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


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


239) 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?


240) The Law of Equi-Marginal Utility applies because


241) As per the Ordinal Approach


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


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


244) Which of the following statements regarding Ordinal Utility is true?


245) Ordinal Utility Approach is also called


246) Which of the following Economists is not concerned with Ordinal Utility Approach?


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


248) Ordinal Approach to Utility analyses


249) Which of the approaches dispenses with the Money Measurement Concept for Utility?


250) Which of the approaches helps to explain the Law of Demand?


251) The economic analysis expects the Consumer to behave in a ……… manner.


252) A Rational Person does not act unless -


253) Rational decision-making requires that


254) A Buyer's willingness to pay is that Buyer's


255) 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


256) The Consumer is in equilibrium when Marginal Utility from a Commodity equals


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


258) Consumer is in equilibrium and he keeps purchasing till the point


259) Consumer Surplus means


260) Consumer Surplus is the area


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


262) Consumer Surplus can be best represented as


263) "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


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


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


266) The law of Consumer Surplus is based on


267) From which of the following concept of consumer's surplus has been derived


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


269) The concept of Consumer Surplus arises due to the reason that


270) The concept of Consumer Surplus arises due to the reason that


271) 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


272) At the point of Consumers' Equilibrium


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


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


275) For the quantity purchased at the Consumer's Equilibrium level, is


276) Consumers' Surplus arises in respect of -


277) 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


278) 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


279) 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


280) Consumer Surplus is highest in the case of


281) Which of the following goods give the maximum amount of Consumer Surplus?


282) Which of the following statements regarding Consumer Surplus is not true?


283) ______ Consumer Surplus indicates higher level of efficiency in the economy.


284) ……….. is helpful in designing Government policies and implementing welfare programs.


285) While analyzing Marshall's measure of Consumer's Surplus, we assume


286) 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?


287) 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


288) 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


289) Consumer stops purchasing the additional units of the commodity when


290) Consumer's Surplus left with the consumer under Price Discrimination is


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


292) A Monopolist will try to Consumer's Surplus to his advantage by adopting


293) In case of two or more products, a Consumer reaches equilibrium when


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


295) 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?


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


297) In case of necessaries, the Marginal Utilities of the first few units are


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


299) 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


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


301) The concept of Consumer's Surplus adopts


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


303) Indifference Curve Approach to Utility Analysis was given by


304) According to Indifference Curve analysis, Utility can be measured in


305) Indifference Curve Approach is also called


306) Ordinal Utility Approach is also known as


307) Ordinal Utility Approach is also known as


308) In Indifference Curve Analysis, the Customers' preferences are


309) ……… shows various combinations of two products that give same amount of satisfaction.


310) An Indifference Curve represents all those combinations of goods which gives


311) All points on the same Indifference Curve represents


312) The Consumer is said to be ……… among different points on an IC


313) Indifference Curve slopes


314) Indifference curve is convex slope, the reason is _________


315) Indifference Curve is downward sloping


316) Indifference Curve has -


317) The reasons for downward sloping curve


318) ……..have a negative slope and cannot intersect each other.


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


320) An Indifference Curve is -


321) Which of the following statements regarding Indifference Curve is not true?


322) Which of the following is a feature of the Indifference Curve?


323) Which of the following is a property of an Indifference Curve?


324) Which of the following is not a property of the Indifference Curve?


325) Which of the following statements is incorrect?


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


327) Indifference Curve approach assumes


328) Indifference Curve approach deals with


329) Indifference Curve Approach assumes


330) The Indifference Curve Approach does not assume


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


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


333) In the case of two perfect substitutes, the indifference curve will be :


334) When an Indifference Curve is L shaped, then two goods will be


335) ……………. depicts complete picture of consumer’s tastes and preferences.


336) A set of ………. is called Indifference Map.


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


338) The farther the Indifference Curve is from the origin, then


339) A higher Indifference Curve shows


340) A higher Indifference Curve shows


341) A lower Indifference Curve shows


342) A lower Indifference Curve shows


343) Combinations lying on a higher Indifference Curve contain more of


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


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


346) No two ICs will cut or intersect each other. This statement is


347) ……….. indicates how much of one commodity is substituted for how much of another commodity.


348) In the context of Indifference Curve Analysis, MRS stands for


349) MRS is indicated by


350) MRS indicates movement


351) Generally, MRS shows


352) Decreasing Trend of MRS makes the Indifference Curve


353) If marginal rate of substitution is increasing then shape of indifference curve is ______


354) Convexity of IC is due to


355) Why does the Indifference Curve Analysis approach operate?


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


357) 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.


358) Budget Line is also called


359) Price Line is also called


360) The price line/Budget lint of a consumer is


361) If a combination is below the Price Line, it indicates that there is


362) A Point below the Price Line represents


363) Every Point below the Price Line represents


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


365) Budget Line shows all the combinations of …….. products.


366) As Consumers' Income and Spending increases, the Price Line or Budget Line


367) If Consumers' Income and Spending decreases, the Price Line or Budget Line


368) As per Indifference Curve Analysis, to maximise his satisfaction, a Consumer will try to


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


370) The Consumer is in Equilibrium at a point where the Budget Line


371) A Consumer is at equilibrium when


372) At the equilibrium point on Indifference Curve which of the following equation is satisfied?


373) At the equilibrium point on Indifference Curve which of the following equation is satisfied?


374) At the equilibrium point on Indifference Curve which of the following is satisfied? .


375) 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?


376) 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?


377) Under Income Effect, the Consumer


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


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


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


381) The branch of economic theory that deals with the problem of allocation of resources is :


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


383) Under a free economy, prices are:


384) Under Inductive method, the logic proceeds from :


385) According to Robbins, ‘means’ are:


386) Who defines Economics in terms of Dynamic Growth and Development?


387) A Free Market economy solves its Central Problems through _________.


388) Normative aspect of Economics is given by :


389) Which one is not the characteristic of capitalistic economy?


390) Mixed economy means


391) Which one in the following is not correct:


392) Who gave the positive aspect of science?


393) Which of these is an example of macro economics :


394) Which of the following statements is incorrect?


395) Inequalities of income do not perpetuate in __________.


396) Normative Economics is based on:


397) In Inductive method, logic proceeds from:


398) A Capitalist Economy follows the policy of :-


399) ‘Economics is the science of choice making’ it implies:-


400) Which of the following is a part of the subject matter of macro economics?


401) Deductive and Inductive methods are complimentary to each other. It is:


402) "Economics is neutral between ends". The statement is given by:


403) Economics which is concerned with welfare propositions is called


404) Who has defined economics as “Science which deals with wealth” ?


405) The most important function of an entrepreneur is to _____ .


406) Under Inductive method logic proceeds from:


407) The meaning of time element in Economics is:


408) __________ is another name of production possibility curve.


409) Who is the author of “The Nature and causes of wealth of Nation”?


410) Find out the correct statement


411) Which of the following illustrate a decrease in unemployment using the PPF?


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


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


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


415) Production Possibility Curve (PPC) is also known as:


416) Socialist Economy was propounded by:


417) Concept of Business Economics was given by:


418) “Features of the book wealth of nations”


419) Which economic system is described by Schumpeter as capitalism in the oxygentent?


420) Business Economics is also known as?


421) Which is not included in Economics?


422) Business Economics involves the elements of.


423) In which economy market and government both play on important role?


424) Socialism ensures


425) Macroeconomics includes


426) Exploitation and inequality will be more in ......


427) 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


428) Which of the following is correct ?


429) A capitalist economy consists of


430) As per the World Bank's international Debt Statistics 2017, India continues to be amongst the ...... countries.


431) Applied economics includes


432) Economic goods considered as scarce resources because .....


433) Due to recession, employment rate and output .....


434) Freedom of choice is the advantage of .......


435) ....... 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.


436) Socialist economy is ....


437) A capitalist economy uses .... as a principal means of allocating resources :


438) In a market economy all assets are held by :


439) Larger production of ..... goods would lead to higher production in future.


440) Which is the first book of Economics named as ....


441) Which type of scarcity is referred to in economics


442) Consumer sovereignty is which of the following characteristics ?


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


444) The nature of business economics is :


445) A socialistic economy is also called as :


446) In capitalistic economy ... and ... will be more.


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


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


449) ...... are responsible for all economic problems.


450) Capitalist system offer incentives for :


451) Macro-economic is also called .... economics :


452) The book "Wealth of Nations" was written by ....


453) 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 :


454) In a mixed economy, the .... are .... sectors of industries.


455) An economy exists because of two basics facts. i.e. ......


456) An economy is called capitalist economy, when .... is given.


457) Coexistance of public and private sector is the feature of ...


458) Which one of the area comes macro-economics ?


459) Laissez - Faire economy is also known as :


460) In economics, we use the term scarcity to mean :


461) Micro economics is also known as :


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


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


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


465) Study of behaviour of different individual and organizations within an economic system is called :


466) The concept of socialist economy was propounded by ....


467) Which of the following is not a study of Macro economics ?


468) Which one of the following is not the scope of business economics ?


469) Which of the following statement is correct ?


470) The central economic problem of an economy arises due to :


471) Business Economics is essentially of Applied Economics as it includes application of selected quantitatives techniques which technique is not included in it ?


472) Business economics is pragmatic in its approach because ?