Practice Test

Q1) ____________ economic system is self-regulating and run by invisible hands. Show Answer

Q2) Indian economy is classified as: Show Answer

Q3) The basic problem of scarcity gives rise to: Show Answer

Q4) Which of the following is NOT a basic problem of all economy? Show Answer

Q5) _____________ involves the predominance of bureaucracy and resulting in inefficiencies and delays. Show Answer

Q6) Capitalist system offers incentives for: Show Answer

Q7) 'Analysis of impact of COVID-19 on the Indian Economy' is a part of: Show Answer

Q8) The 'communist manifesto' related to socialist economy propounded by Karl Marx and Frederic Engels was published in: Show Answer

Q9) 'Consumer sovereignty' is a feature of: Show Answer

Q10) Which one of the following is not a central problem of an economy? Show Answer

Q11) 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

Q12) When the elasticity of supply is infinite,the curve will be: Show Answer

Q13) Ram and sons are going for heavy advertisement campaign to enhance their sales.When analyzed it was realized that the expenditure on advertisement by the company has gone up from 2,00,000 to 3,00,000 and the sales of this product increased from 10 lakh units to 20 lakhs.What is the advertising elasticity of demand? Show Answer

Q14) If the quantity demanded of mutton increased by 5% when the price of chicken increases by 20% the cross price elasticity of demand between mutton and chicken is: Show Answer

Q15) The household income rises by 20% in a year consequently demand of TV sets rises by 30% what is income elasticity of demand? Show Answer

Q16) When marginal utility is zero then total utility is: Show Answer

Q17) The extent to which the demand for a consumer's good is decreased owing to the fact that others are also consuming the same commodity refers to: Show Answer

Q18) Suppose the income elasticity of air conditioners is +1.8,which kind of good is an air conditioner? Show Answer

Q19) Change in demand due to increase in real income of a consumer is called: Show Answer

Q20) If the price of good X increases, demand of good Y also increase,the two goods are: Show Answer

Q21) The Delphi technique of demand forecasting is also called: Show Answer

Q22) Which of the following is not a statistical method of forecasting? Show Answer

Q23) An indifference curve represents those combination of two commodities which give consumer: Show Answer

Q24) "Which of the following is NOT meant by liberalization? Show Answer

Q25) Which of the following is not an assumption of marginal utility analysis? Show Answer

Q26) Producer's surplus arises when: Show Answer

Q27) Scale of production can be changed in: Show Answer

Q28) Which of the following is not a quantity of the factor of land: Show Answer

Q29) The marginal product of a variable input is described as? Show Answer

Q30) Total profit are maximized when? Show Answer

Q31) A firm producing 7 unit of output has an average total cost of Rs.150 and has to pay Rs.350 to its fixed factors of production whether it produce or not.How much of the average total cost is made up of variable costs? Show Answer

Q32) Economic costs include: Show Answer

Q33) At the shut-down point, the price is: Show Answer

Q34) Who introduced the 'time element' in economics? Show Answer

Q35) Which of the following is not a characteristics of market? Show Answer

Q36) In the initial stage,total revenue is increasing at a decreasing rate due to: Show Answer

Q37) When MR=MC the firm will incur: Show Answer

Q38) When there is a change in demand and change in supply,what will be the net influence on price if the change in supply is greater than change in demand. Show Answer

Q39) Which of the following statement is correct? Show Answer

Q40) In which type of market there are large number of buyer and seller with identical produces: Show Answer

Q41) Kinked demand curve is also known as: Show Answer

Q42) On the upper part of kinked demand curve the demand is: Show Answer

Q43) The long run equilibrium of a competitive firm is achieved at: Show Answer

Q44) The producer is an oligopolistic market fixes its price at: Show Answer

Q45) Which of the following is a behaviour of oligopoly? Show Answer

Q46) Where there are large number of letters in a market and there is very high degree of competition between them,the elasticity of supply is: Show Answer

Q47) Which of the following market may earn supernormal profit in the long run: Show Answer

Q48) Which of the following is not an example of cyclical business? Show Answer

Q49) Recent example of the business cycle is the housing bubble of the US economy.This bubble got burst in: Show Answer

Q50) Peaks and troughs of the business cycle are collectively known as: Show Answer

Q51) Which of the following characteristics does not belong to expansion path of business cycles? Show Answer

Q52) Which of the following is not a fast-moving consumer goods? Show Answer

Q53) The phase of business cycle in which growth rate becomes negative and the level of national income and expenditure declines rapidly resulting in widespread unemployment: Show Answer

Q54) Trade cycles occur as a result of mismatch between aggregate demand function and aggregate supply function who said this? Show Answer

Q55) According to__________trade cycles occur due to onset of innovations. Show Answer

Q56) Which one of the following factor is an external cause or endogenous factor which may lead to boom or bust? Show Answer

Q57) _____________are the variable that change after the real output changes? Show Answer

Q58) According to monetarists,the prime causes of business cycles are: Show Answer

Q59) 'Corporate profit' is an example of which type if indicator? Show Answer