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) Positive economics deals with— Show Answer

Q9) Find the odd Show Answer

Q10) A mixed economy to solve its central problems relies on— Show Answer

Q11) In a socialist economy, the basic force of economic activity is profit. This statement is— Show Answer

Q12) The interference of the government is very limited in— Show Answer

Q13) Both private and public sectors exist side by side in— Show Answer

Q14) In a competitive economy, the uncrowned king is— Show Answer

Q15) Wastes of competition are found in— Show Answer

Q16) A dual system of pricing exists in— Show Answer

Q17) One of the important features of capitalist economy is— Show Answer

Q18) ‘A government deficit will reduce unemployment and cause an increase in prices.' This statement is— Show Answer

Q19) Positive economics remains strictly neutral towards ends. This means that— Show Answer

Q20) In a capitalistic economy what to produce depends on— Show Answer

Q21) The economy in which the government allows freedom of action of all economic units is essentially— Show Answer

Q22) Which of the following is not correct about capitalistic system— Show Answer

Q23) Which of the following is not the feature of socialist economy ? Show Answer

Q24) Positive economics concerns . Show Answer

Q25) Normative economics is in nature Show Answer

Q26) As compared to other economic systems, inequalities of incomes is relatively less in economic system Show Answer

Q27) Price-mechanism is an important feature of -
(i) Market economy
(ii) Regulated economy
(iii) Mixed economy
(iv) Capitalist economy
Show Answer

Q28) Consumers and produces make their choices based on the market forces of demand and supply in— Show Answer

Q29) The problem of what goods and services are produced and how much, is covered by the general term— Show Answer

Q30) Business Economics is generally -------- in nature.
Show Answer

Q31) Capital intensive technique would be chosen in a______ Show Answer

Q32) Which of the following statement is incorrect? Show Answer

Q33) All of the following are within the scope of
Business Economics except ----------
Show Answer

Q34) Which of the following is considered as a disadvantage of allocating resources in a capitalist economy? Show Answer

Q35) Human Wants are Show Answer

Q36) "Ends" refer to Show Answer

Q37) "Means" refer to Show Answer

Q38) "Resources" refer to Show Answer

Q39) The Means for satisfying Wants are Show Answer

Q40) Resources are scarce in relation to Show Answer

Q41) Integration of Economic theory with business practice is called - Show Answer

Q42) Business Economics has a Pragmatic Approach which means it is not Show Answer

Q43) Business economics is a science because Show Answer

Q44) The emphasis of Business Economics is more on Show Answer

Q45) Positive Science explains Show Answer

Q46) Normative Science is Show Answer

Q47) Normative Science explains - Show Answer

Q48) The study of the economic behaviour of an Individual Firm or Industry in the national economy is called - Show Answer

Q49) The central problem in economics is that of Show Answer

Q50) Which of the following is not a central problem of economy? Show Answer

Q51) Which of the following is not one of the four central questions that the study of economics is supposed to answer? Show Answer

Q52) The Central Problems arise in case of Show Answer

Q53) The Central Problems of an economy are Show Answer

Q54) If there are adequate resources in an economy, then there is no economic problem at all. This statement is Show Answer

Q55) The problem of "What to produce" covers the issue relating to Show Answer

Q56) In deciding "What to produce", the economy should focus on the production of Show Answer

Q57) An economy which uses all its resources on production of …….. Goods only, cannot provide for future growth prospects. Show Answer

Q58) An economy achieves "Productive Efficiency" only when Show Answer

Q59) In deciding "How to produce", the economy should decide on Show Answer

Q60) In deciding "How to produce", the economy should consider Show Answer

Q61) In deciding "How to produce", the choice of appropriate production method depends on Show Answer

Q62) Capital Intensive Technique would get chosen in Show Answer

Q63) labour Intensive Technique would get chosen in Show Answer

Q64) Production of Capital Goods vs Consumer Goods relates to the problem of - Show Answer

Q65) Use of Labour or Capital intensive techniques of production relates to the problem of - Show Answer

Q66) Distribution and Sharing of National Product relates to the problem of Show Answer

Q67) The issue of "for whom to produce" deals with Show Answer

Q68) Savings and Investment is compulsory for economic growth and development. This statement is Show Answer

Q69) An economy can spend all its present resources on current consumption only. Show Answer

Q70) For analyzing ownership and utilization of resources, Economies are classified into Show Answer

Q71) Capitalist Economy is characterized by Show Answer

Q72) Capitalist Economy is characterized by Show Answer

Q73) 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

Q74) Which of the following applies to a Capitalist Economy? Show Answer

Q75) Which of the following is not feature of capitalistic economy? Show Answer

Q76) A Capitalist Economy is also called as - Show Answer

Q77) Free market economy driving force is _______ Show Answer

Q78) In Capitalist Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q79) In which type of economy can each producer allocate his resources based on the demand? Show Answer

Q80) In a Free Market Economy the allocation of resources is determined by Show Answer

Q81) 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

Q82) 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

Q83) "Consumer Sovereignty" refers to Show Answer

Q84) Freedom of choice is an advantage of: Show Answer

Q85) A Capitalist Economy uses ............. means of allocating resources Show Answer

Q86) The concept of "Competition" in a Capitalist Economy refers to Show Answer

Q87) Advertisement, Price-Cutting, Discounts, etc. in a Capitalist Economy are Show Answer

Q88) Which of the following statements regarding Market Economy is not true? Show Answer

Q89) "Inequalities of Income" refers to Show Answer

Q90) In which among the following systems the "Right to property" exists Show Answer

Q91) Command Economy refers to Show Answer

Q92) Where does "Price mechanism" exists. Show Answer

Q93) Socialist Economy is characterized by Show Answer

Q94) Socialist Economy is characterized by Show Answer

Q95) Which of the following applies to a Socialist Economy? Show Answer

Q96) Which of the following applies to a Socialist Economy? Show Answer

Q97) In a Command Economy, all decisions from the allocation of resources to the distribution of end products, is taken care of by Show Answer

Q98) Compared to other economic systems, National Income is more often evenly distributed in Show Answer

Q99) In Socialist Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q100) In a Socialist Economy, the concept of consumer Sovereignty is Show Answer

Q101) Socialist Economy is also called Show Answer

Q102) Socialist economy is also known as ……….. economy Show Answer

Q103) In the present day world, no economy is absolutely socialist in nature. This statement is Show Answer

Q104) Identify the correct statement: Show Answer

Q105) 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

Q106) In Mixed Economies, the answer the fundamental questions - what, how, and for whom to produce, are obtained by Show Answer

Q107) Mixed Economy contains the positive aspects of Show Answer

Q108) The term mixed economy denotes Show Answer

Q109) In a Mixed Economy, there are ………. Sectors of industries. Show Answer

Q110) In a Mixed Economy, industries are found in- Show Answer

Q111) In a Mixed Economy, Industries in Private Sector have ....... as their objective and driving force. Show Answer

Q112) In a Mixed Economy, Industries in Public Sector have …….as their objective and driving force. Show Answer

Q113) Mixed Economy is characterized by Show Answer

Q114) Mixed Economy is characterized by Show Answer

Q115) Which of the following is applicable in case of a Mixed Economy? Show Answer

Q116) A Mixed Economy focusses on ensuring Show Answer

Q117) 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

Q118) In a Mixed Economy, the Private Sector Show Answer

Q119) Indian Economy is an example of Show Answer

Q120) In India, the Central Planning Authority is called Show Answer

Q121) Capitalist Economy Show Answer

Q122) Demerits of Capitalistic Economy includes Show Answer

Q123) Autonomy and Freedom is more in Show Answer

Q124) 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

Q125) There is no freedom of choice in a Show Answer

Q126) Which of the following is not a consumption: Show Answer

Q127) All wants of an individuals are not of: Show Answer

Q128) Which approach suggests that Human Satisfaction is a psychological phenomenon, and cannot be measured quantitatively in monetary terms? Show Answer

Q129) The Consumer is in equilibrium when Marginal Utility from a Commodity equals Show Answer

Q130) Normative aspect of Economics is given by : Show Answer

Q131) Which one is not the characteristic of capitalistic economy? Show Answer

Q132) Mixed economy means Show Answer

Q133) Which one in the following is not correct: Show Answer

Q134) Who gave the positive aspect of science? Show Answer

Q135) A Capitalist Economy follows the policy of :- Show Answer

Q136) ‘Economics is the science of choice making’ it implies:- Show Answer

Q137) Who has defined economics as “Science which deals with wealth” ? Show Answer

Q138) The most important function of an entrepreneur is to _____ . Show Answer

Q139) Under Inductive method logic proceeds from: Show Answer

Q140) The meaning of time element in Economics is: Show Answer

Q141) __________ is another name of production possibility curve. Show Answer

Q142) Who is the author of “The Nature and causes of wealth of Nation”? Show Answer

Q143) Socialist Economy was propounded by: Show Answer

Q144) Concept of Business Economics was given by: Show Answer

Q145) “Features of the book wealth of nations” Show Answer

Q146) Which economic system is described by Schumpeter as capitalism in the oxygentent? Show Answer

Q147) Business Economics is also known as? Show Answer

Q148) Which is not included in Economics? Show Answer

Q149) Business Economics involves the elements of. Show Answer

Q150) In which economy market and government both play on important role? Show Answer

Q151) Socialism ensures Show Answer

Q152) Macroeconomics includes Show Answer

Q153) Exploitation and inequality will be more in ...... Show Answer

Q154) 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

Q155) A capitalist economy consists of Show Answer

Q156) Economic goods are considered as scarce resources because ..... Show Answer

Q157) Due to recession, employment rate and output ..... Show Answer

Q158) Freedom of choice is the advantage of ....... Show Answer

Q159) Socialist economy is .... Show Answer

Q160) A capitalist economy uses .... as a principal means of allocating resources : Show Answer

Q161) In a market economy all assets are held by : Show Answer

Q162) Larger production of ..... goods would lead to higher production in future. Show Answer

Q163) Which is the first book of Economics named as .... Show Answer

Q164) Consumer sovereignty is which of the following characteristics ? Show Answer

Q165) The study of behaviour of different individuals organisations within an economic system is known as : Show Answer

Q166) The nature of business economics is : Show Answer

Q167) A socialistic economy is also called as : Show Answer

Q168) In capitalistic economy ... and ... will be more. Show Answer

Q169) In which economy, cost benefit analysis is used to answer the fundamental questions of economy ? Show Answer

Q170) In which economic system production and distribution of goods and services aim at maximizing the welfare of community as a whole ? Show Answer

Q171) ...... are responsible for all economic problems. Show Answer

Q172) Capitalist system offer incentives for : Show Answer

Q173) Macro-economic is also called .... economics : Show Answer

Q174) The book "Wealth of Nations" was written by .... Show Answer

Q175) 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

Q176) In a mixed economy, the .... are .... sectors of industries. Show Answer

Q177) An economy exists because of two basics facts. i.e. ...... Show Answer

Q178) An economy is called capitalist economy, when .... is given. Show Answer

Q179) Coexistance of public and private sector is the feature of ... Show Answer

Q180) Which one of the area comes macro-economics ? Show Answer

Q181) Laissez - Faire economy is also known as : Show Answer

Q182) In economics, we use the term scarcity to mean : Show Answer

Q183) Micro economics is also known as : Show Answer

Q184) 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

Q185) 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

Q186) The Central Economics problem does not deal with which of the following economic problems ? Show Answer

Q187) Study of behaviour of different individual and organizations within an economic system is called : Show Answer

Q188) The concept of socialist economy was propounded by .... Show Answer

Q189) Which of the following is not a study of Macro economics ? Show Answer

Q190) Which one of the following is not the scope of business economics ? Show Answer

Q191) Which of the following statement is correct ? Show Answer

Q192) The central economic problem of an economy arises due to : Show Answer

Q193) 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

Q194) Business economics is pragmatic in its approach because ? Show Answer

Q195) Socialist Economy is also known as ___. Show Answer

Q196) The term socialist economy was coined by
Show Answer

Q197) Most important feature of capitalist economy is ___ . Show Answer

Q198) Mr Rohit invited a consultant for knowing staff requirement, consumer behaviour and product pricing. The approach consultant is looking -
Show Answer

Q199) Which of the following is not included in Micro economics ?
Show Answer

Q200) A mixed economy refers to ___.
Show Answer

Q201) Which of the following is not within the scope of Business Economics ? Show Answer

Q202) Which are the areas that come under, macro-economics ?
Show Answer

Q203) Economics is ___.
Show Answer

Q204) Which of the following is demerit of capitalism :
Show Answer

Q205) Scarcity definition in economics in given by
Show Answer

Q206) Normative economics can be explained through :
Show Answer

Q207) Predominance of bureaucracy under which system ? Show Answer

Q208) Find the correct statement : Show Answer

Q209) Normative science refers to :
Show Answer

Q210) Business is pragmatic in approach :
Show Answer

Q211) Central problems of economics -
Show Answer

Q212) Business economics being ___ in approach tackles practical problems. Show Answer

Q213) Which of the following is incorrect ? Show Answer

Q214) ____________ economic system is self-regulating and run by invisible hands.
Show Answer

Q215) Indian economy is classified as: Show Answer

Q216) The basic problem of scarcity gives rise to:
Show Answer

Q217) Which of the following is NOT a basic problem of all economy?
Show Answer

Q218) _____________ involves the predominance of bureaucracy and resulting in inefficiencies and delays. Show Answer

Q219) Capitalist system offers incentives for:
Show Answer

Q220) 'Analysis of impact of COVID-19 on the Indian Economy' is a part of:
Show Answer

Q221) The 'communist manifesto' related to socialist economy propounded by Karl Marx and Frederic Engels was published in:
Show Answer

Q222) 'Consumer sovereignty' is a feature of:
Show Answer

Q223) Which one of the following is not a central problem of an economy?
Show Answer

Q224) 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

Q225) Which of the following is the central problem of economy? Show Answer

Q226) Economics is classified into: Show Answer

Q227) Under which of the following economy the consumer have limited freedom of choice? Show Answer

Q228) Which one of the following is not the Subject matter of Micro Economics? Show Answer

Q229) Which of the following is one of the merits of socialism? Show Answer

Q230) Capitalist Economy solve their economic problems through which of the following? Show Answer

Q231) An Economic system in which all means of production are owned and controlled by Private Individual is called as
? Show Answer