Passing Package
I. Choose the correct answer (each question carries 1 mark)
1. The scarce resources of an economy have Competing usages
2. Which of the following is an example of microeconomic study?
(a) National income (b) Consumer behavior
(c) Unemployment (d) foreign
trade Ans: (b) Consumer behaviour
3. Which of the following is a macroeconomic variable?
(a) Individual demand (b) Aggregate demand
(c) Firms output (d) Price of a
good Ans: (b) Aggregate demand
4. Central problems of an economy include
(a) What to produce (b) How to produce
(c) For whom to produce (d) All of the
above Ans: (d) All of the above
5. Traditionally, the subject matter of economics has been studied under the following broad branches
Micro
and Macro Economics
6. Utility is-----Subjective
The shape of an Indifference curve is normally Convex to the origin
7. The consumption bundle that is available to the consumer depends on Price and income
8. The equation of Budget line is--P1X1 + P2X2 = M
9. The demand for these goods increases as income increases Normal goods
10. A vertical demand curve is- -Perfectly inelastic
11.The formula of production function is Q = f(L, K)
12.In the short run, a firm- Cannot vary all the inputs
13.The change in output per unit of the change in the input is called Marginal product
14.Cobb-Douglas production function is- Q = (x1α, x2β)
15.TC = TFC + TVC
16.In a perfect competition each firm produces and sellsHomogeneous products
17.The increase in total revenue for a unit increase in the output is Marginal Revenue
18.The firm’s profit is denoted by π
19.When the supply curve is vertical, the elasticity of supply is es=0
20. The revenue per unit of output of a firm is called as-------AR 21. In perfect competition buyers and
sellers are-------
Price takers.
22.A situation where the plans of all consumers and firm in the market match Equilibrium situation
23.As a result of increase in the number of firms there is an increase in supply, then supply curve
Shifts
towards right
24.The firms earn super normal profit as long as the price is greater than the minimum of Average
cost
25.The government imposes upper limit on the price of goods and services is called Price ceiling
26.The government imposed upper limit on the price of goods and service is called Price floor
27. A market structure which produces heterogeneous products is called Monopolistic competition
28.The change in TR due to the sale of an additional unit is called Marginal revenue
29.When the price elasticity of demand is more than one, MR has a Positive value
30. 30. Profit = TR-TC
31.The individuals or institutions which take economic decisions are Economic Agents.
32.In 1936 British economist J.M. Keynes published his celebrated book General theory of
employment,
interest and Money.
33.All the labourers who are ready to work will find employment and all the factories will be
working at their full capacity, this school of thought is known as Classical thought
34.The year of Great Depression- 1929
35.In a capitalist country production activities are mainly carried out by Private enterprises.
36.The study of National income is related to Macro Economics.
37.NNP = GNP – Depreciation
,38.The value of GDP at the current prevailing prices is Nominal GDP
39.By deducting undistributed profit from national income, we get Personal Income
40.Measuring the sum total of all factor payments will be calledIncome Method
, 41.The main function of money is-Medium of Exchange
42.The bank which acts as monetary authority of India RBI
43.The banks which are a part of the money creating system of the economy are Commercial Banks
44.The rate at which the RBI lends money to commercial banks against securities repo rate
45.The important tool by which RBI influences money supply is Open market operation
46.Consumption which is independent of income is called Autonomous consumption
47.Value of MPC lies between- -0 and 1
48.The point where ex-ante aggregate demand is equal to ex-ante aggregate supply will be Equilibrium
49.Easy availability of credit encourages Investment
50.In the situation of excess demandDemand is more than the level of output.
51.The taxes on individual and firms are Direct taxes.
52. Duties levied on goods produced within the country Excise duties 53. The tax which acts as an
automatic
stabilizer-----Proportional income tax
54. Which of the following is an example for ‘paper tax’?
a)Income tax b) Excise taxes c) Wealth tax d) Customs taxes Ans: (c) Wealth Tax
55.When demand exceeds the available output under conditions of high level of employment, this may
give rise to-----
Inflation
56.The consumers and producers can choose between domestic and foreign goods, this market linkage is
called-----
Output market linkage.
57. The exchange rate is determined by the market forces of demand and supply is called as Flexible
exchange rate
58. The balance of payments (BOP) record these transactions between residents and with the rest of the
world
a) Goods b) Services c) Assets d) All of the above
Ans (d) All of the above
59.The rate at which the price of one currency in terms of foreign currency is called Foreign exchange
rate
60.In this standard all currencies were defined in terms of gold Gold Standard
II .Fill in the blanks (each question carries 1 mark) 1.
Scarcity of resources gives raise to.....................
Ans: Problem of choice
2. In a centrally planned economy all important decisions are made by
……………… Ans: Government
3. In reality all economies are ………………….. Ans: Mixed economies
4. Wants satisfying capacity of commodity is ……………….
Ans: Utility
5. Two indifference curves never.....................each other. Ans: Intersect
6. As income increases, the demand curve for normal
goods shifts towards………………….
Ans: Right
7. The demand for a good moves in the.........................direction of its price
Ans: Opposite
8. Method of adding two individual demand curves
is called as…………………… Ans: Horizontal
summation
9. An equation xy = c gives us.........................hyperbola
Ans: Rectangular
10. In the long run, all inputs are Ans: Varied
11. is defined as the output per unit of variable
input. Ans: Average Product
12. Marginal product and average product curves are in shape.
Ans: Inverse U
13. SMC curve cuts the AVC curve at the point from below.
Ans: Minimum
14.is the set of all possible combinations of the two inputs that
yield the same maximum possible level of output.
Ans: Isoquant
I. Choose the correct answer (each question carries 1 mark)
1. The scarce resources of an economy have Competing usages
2. Which of the following is an example of microeconomic study?
(a) National income (b) Consumer behavior
(c) Unemployment (d) foreign
trade Ans: (b) Consumer behaviour
3. Which of the following is a macroeconomic variable?
(a) Individual demand (b) Aggregate demand
(c) Firms output (d) Price of a
good Ans: (b) Aggregate demand
4. Central problems of an economy include
(a) What to produce (b) How to produce
(c) For whom to produce (d) All of the
above Ans: (d) All of the above
5. Traditionally, the subject matter of economics has been studied under the following broad branches
Micro
and Macro Economics
6. Utility is-----Subjective
The shape of an Indifference curve is normally Convex to the origin
7. The consumption bundle that is available to the consumer depends on Price and income
8. The equation of Budget line is--P1X1 + P2X2 = M
9. The demand for these goods increases as income increases Normal goods
10. A vertical demand curve is- -Perfectly inelastic
11.The formula of production function is Q = f(L, K)
12.In the short run, a firm- Cannot vary all the inputs
13.The change in output per unit of the change in the input is called Marginal product
14.Cobb-Douglas production function is- Q = (x1α, x2β)
15.TC = TFC + TVC
16.In a perfect competition each firm produces and sellsHomogeneous products
17.The increase in total revenue for a unit increase in the output is Marginal Revenue
18.The firm’s profit is denoted by π
19.When the supply curve is vertical, the elasticity of supply is es=0
20. The revenue per unit of output of a firm is called as-------AR 21. In perfect competition buyers and
sellers are-------
Price takers.
22.A situation where the plans of all consumers and firm in the market match Equilibrium situation
23.As a result of increase in the number of firms there is an increase in supply, then supply curve
Shifts
towards right
24.The firms earn super normal profit as long as the price is greater than the minimum of Average
cost
25.The government imposes upper limit on the price of goods and services is called Price ceiling
26.The government imposed upper limit on the price of goods and service is called Price floor
27. A market structure which produces heterogeneous products is called Monopolistic competition
28.The change in TR due to the sale of an additional unit is called Marginal revenue
29.When the price elasticity of demand is more than one, MR has a Positive value
30. 30. Profit = TR-TC
31.The individuals or institutions which take economic decisions are Economic Agents.
32.In 1936 British economist J.M. Keynes published his celebrated book General theory of
employment,
interest and Money.
33.All the labourers who are ready to work will find employment and all the factories will be
working at their full capacity, this school of thought is known as Classical thought
34.The year of Great Depression- 1929
35.In a capitalist country production activities are mainly carried out by Private enterprises.
36.The study of National income is related to Macro Economics.
37.NNP = GNP – Depreciation
,38.The value of GDP at the current prevailing prices is Nominal GDP
39.By deducting undistributed profit from national income, we get Personal Income
40.Measuring the sum total of all factor payments will be calledIncome Method
, 41.The main function of money is-Medium of Exchange
42.The bank which acts as monetary authority of India RBI
43.The banks which are a part of the money creating system of the economy are Commercial Banks
44.The rate at which the RBI lends money to commercial banks against securities repo rate
45.The important tool by which RBI influences money supply is Open market operation
46.Consumption which is independent of income is called Autonomous consumption
47.Value of MPC lies between- -0 and 1
48.The point where ex-ante aggregate demand is equal to ex-ante aggregate supply will be Equilibrium
49.Easy availability of credit encourages Investment
50.In the situation of excess demandDemand is more than the level of output.
51.The taxes on individual and firms are Direct taxes.
52. Duties levied on goods produced within the country Excise duties 53. The tax which acts as an
automatic
stabilizer-----Proportional income tax
54. Which of the following is an example for ‘paper tax’?
a)Income tax b) Excise taxes c) Wealth tax d) Customs taxes Ans: (c) Wealth Tax
55.When demand exceeds the available output under conditions of high level of employment, this may
give rise to-----
Inflation
56.The consumers and producers can choose between domestic and foreign goods, this market linkage is
called-----
Output market linkage.
57. The exchange rate is determined by the market forces of demand and supply is called as Flexible
exchange rate
58. The balance of payments (BOP) record these transactions between residents and with the rest of the
world
a) Goods b) Services c) Assets d) All of the above
Ans (d) All of the above
59.The rate at which the price of one currency in terms of foreign currency is called Foreign exchange
rate
60.In this standard all currencies were defined in terms of gold Gold Standard
II .Fill in the blanks (each question carries 1 mark) 1.
Scarcity of resources gives raise to.....................
Ans: Problem of choice
2. In a centrally planned economy all important decisions are made by
……………… Ans: Government
3. In reality all economies are ………………….. Ans: Mixed economies
4. Wants satisfying capacity of commodity is ……………….
Ans: Utility
5. Two indifference curves never.....................each other. Ans: Intersect
6. As income increases, the demand curve for normal
goods shifts towards………………….
Ans: Right
7. The demand for a good moves in the.........................direction of its price
Ans: Opposite
8. Method of adding two individual demand curves
is called as…………………… Ans: Horizontal
summation
9. An equation xy = c gives us.........................hyperbola
Ans: Rectangular
10. In the long run, all inputs are Ans: Varied
11. is defined as the output per unit of variable
input. Ans: Average Product
12. Marginal product and average product curves are in shape.
Ans: Inverse U
13. SMC curve cuts the AVC curve at the point from below.
Ans: Minimum
14.is the set of all possible combinations of the two inputs that
yield the same maximum possible level of output.
Ans: Isoquant
