Introduction to Economics MCQs/ Economics MCQs/ Microeconomics MCQs/ Economics Lecturer MCQs/ MCQs of Economics/ Most repeated MCQs of Economics/ Economics Lecturer Solved Past Papers/ Previous Test of Economics Lecturer/ SS Economics Previous Tests/ Lecturer Economics Previous Tests
Introduction to Economics MCQs
Purchasing power parity (PPP) concept was introduced by Gustave Cassel in 1918. The concept is based on the:
a. Law of two price
b. Law of zero price
c. Law of one Price
d. None of these
ANS: C
In Ricardian theory of value, the stress has been made on:
a. Marginal cost
b. Production cost
c. Labor cost
d. Collection cost
ANS: A
As the price of diamond is higher, so it has:
a. Higher marginal valuation for consumer
b. Lower marginal cost for producer
c. Higher marginal cost for producer
d. Both A and B
ANS: D
If a country’s production possibilities curve shifts outward, which one of the following is true?
a. The country has underemployed its resources.
b. The country has decreased its production.
c. The country has increased its technology
d. The country is experiencing inflation.
ANS: C
Growth definition is developed by?
a. Alfred Marshall
b. P. A. Samuelson
c. J.M Keynes
d. Milton Friedman
ANS: B
Drain Theory relates to which economist:
a. Dadabhai Naoroji
b. Amit Mitra
c. Bimal Jalan
d. V.K.R.V Rao
ANS: A
The concept ‘Industrial Reserve Army is introduced by:
a. Joan Robinson
b. J.S. Mill
c. Karl Marx
d. None of the above
ANS: C
Economics is the gospel of mammon. Whose statement is this?
a. Carlyle
b. Ruskin
c. Both (a) and (b)
d. None of the above
ANS: B
Normative statements are concerned with
a. Facts and theories
b. What ought to be
c. What is?
d. Rational choice involving costs and benefits
ANS: C
The main contribution of John Ramsey McCulloch in his field
a. Profit and interest
b. Profit and wage
c. Profit and capital
d. Profit and labor
ANS: A
The Labor Theory of Value was introduced by:
a. Karl Marx
b. Adam Smith
c. David Ricardo
d. J. S. Mill
ANS: C
The “Dumpster-Shafer theory was introduced by:
a. J. S. Mill
b. Robert Lucas
c. J. J. Shafer
d. G. L. Shackle
ANS: D
Ideally, value judgments are involved at the:
a. Levels of facts, theory, and policy
b. Levels of facts and theory only
c. Level of facts only
d. Level of policy only
ANS: D
Most of the disagreement among economists involves:
a. Facts
b. Principles
c. Positive statements
d. Normative statements
ANS: D
Positive statements are:
a. Value judgments
b. Verifiable or testable
c. Statements in the affirmative
d. Good statement
ANS: B
Who developed the concept of “Representative Firm
a. A. C. Pigou
b. Alfred Marshal
c. J. M. Keynes
d. W. H, Phillips
ANS: B
Which one of the following not an economic goal?
a. Freedom & incentives
b. Equity & efficiency
c. Profit & business
d. Both (a) and (b)
ANS: C
What do the plot points on the production possibilities graph represent?
a. Taxes
b. Unemployment
c. Inflation
d. Trade-offs
ANS: D
The main contribution of Johann H. von Thunen in his field:
a. Economic geography
b. Spatial economics
c. Both of them
d. None of them
ANS: C
Price mechanism has also given the name:
a. Laisseze-Faire
b. Ricardian-Faire
c. Price system
d. None of these
ANS: A
The production possibility curve is concerned with;
a. Interest of the economy
b. Limitations of the economy
c. Resources of the economy
d. Qualities of the economy
ANS: C
What economic concept is used to explain the famous diamond-water paradox?
a. The Law of One
b. Say’s Law
c. Physical product analysis
d. Marginal analysis
ANS: D
Introduction to Economics MCQs/ Economics MCQs/ Microeconomics MCQs/ Economics Lecturer MCQs/ MCQs of Economics/ Most repeated MCQs of Economics/ Economics Lecturer Solved Past Papers/ Previous Test of Economics Lecturer/ SS Economics Previous Tests/ Lecturer Economics Previous Tests
Introduction to Economics MCQs
According to classical, the subject matter of economics is concerned with:
a. Production
b. Distribution and exchange
c. Consumption
d. All of the above
ANS: D
Name the economist, who analyses the subject matter of economics into two branches:
a. Adam Smith
b. Alfred Marshall
c. Ranger Frisch
d. P. A. Samuelson
ANS: C
According to Classical economists, equilibrium in the economy is settled by:
a. Centralized planning
b. Price mechanism
C. Both the planning and price mechanism
d. None of these
ANS: B
According Keynesian and post-Keynesian economists ‘Say’s Law of market was proved wrong by:
a. Industrial Revolution
b. Great Depression
c. Green Revolution
d. Agriculture Revolution
ANS: B
The Ex-ante term Expenditure and Ex-post Expenditure were first used by:
a. Leonid Kantorovich 1950
b. Friedrich Hayek 1974
c. Gunnar Myrdal in 1927.
d. Tjalling Koopmans 1948
ANS: C
Comforts lies between the
a. Inferior goods and necessaries
b. Luxuries and inferior goods
c. Necessaries and luxuries
d. None of the above
ANS: C
Scarcity is
a. A relative term
b. A dynamic term
c. An economics term
d. (a) and (c)
ANS: D
In economics term water is:
a. Free goods
b. Economic goods
c. Both of the above
d. None of them
ANS: A
Demand-side policies merely affect the interest rate and the:
a. Output
b. Price level
c. Both (a) and (b)
d. None of the above
ANS: B
Supply-side policies affect the real wage, employment and:
a. Output
b. Price level
c. Both (a) and (b)
d. None of the above
ANS: A
The term consumption capital for consumer goods was introduced by:
a. Karl Marx
b. W.S. Jevons
c. Adam Smith
d. Alfred Marshall
ANS: D
According to modern economists, “Economics system is so much:
a. Easy
b. Complicated
c. Both (a) and (b)
d. None of the above
ANS: B
The goods which cannot be consumed more than once is known as:
a. Durable goods
b. Non-durable good
c. Producer goods
d. None of the above
ANS: B
The ‘distributive efficiency concept was developed by:
a. G. S. Shackle
b. Abba P. Lerner
c. David Ricardo
d. None of the above
ANS: B
The Welfare definition of economics related to which school of thought:
a. Classical
b. Neo-classical
c. Modern
d. Both (a) and (c)
ANS: B
Microeconomics theory is also known as ——
a. Business theory
b. Price theory
c. Individual theory
d. Cost theory
ANS: B
Who criticize the Marshall’s definition of economics?
a. Robbins
b. Clark
c. Beveridge
d. A. C. Piguo
ANS: A
When the “Principles of Economics was wrote?
a. 1870
b. 1880
c. 1890
d. 1990
ANS: C
Points on the production possibilities frontier are:
a. Efficient
b. Inefficient
c. Normative
d. Unattainable
ANS: A
Friedrich Hayek was a proponent of:
a. Keynesian economics
b. Communism
c. Classical Liberalism
d. Socialism
ANS: C
Which economist is famous for his theory of comparative advantage?
a. Karl Marx
b. John Maynard Keynes
c. F. Hayek
d. David Ricardo
ANS: D
According to Saint Thomas Aquinas, value is determined by God, but prices by:
a. Firms
b. People 109
c. Government
d. Lord
ANS: B
Economic models are:
a. Base on scientific reality
b. Built with assumptions
c. Useless if they are simple
d. Created to duplicate reality
ANS: B
The concept “Mathematical models of financial” and “debt- deflation” was introduced by:
a. Ben Bernanke
b. N. Gregory Mankiw
c. Stanley Fischer
d. Steve Keen
ANS: D
The Dynamics of auctions is also known as:
a. Hicksian auction
b. Marshallian auction
c. Vickrey auction
d. Ricardian auction
ANS: C
The main contribution of J. M. Clark in his field:
a. Workable competition
b. Workable in-competition
c. Both of them
d. None of them
ANS: A
Thorstein Veblen’s distinction between “institutions” and “technology”, contemporary economists is called:
a. Veblenian technology
b. Veblenian effect
c. Veblenian dichotomy
d. None of the above
ANS: C
Who said “W. C. Mitchell iş generally considered primarily an empirical scientist rather than a theorist”.
a. Milton Friedman
b. Paul A. Samuelson
c. Gorge Stigler
d. Henry George
ANS: A
Real Balance Effect that shows:
a. Keynes effect and Hicks effect
b. Keynes effect and Marshallian effect
c. Keynes effect and Pigou effect
d. Hicks effect and Pigou effect
ANS: C
Trade-offs are required because wants are unlimited and resources are
a. Unlimited
b. Efficient
c. Marginal
d. Scarce
ANS: D
Under decreasing opportunity costs, the PPC is:
a. Convex to the origin
b. Concave to the origin
c. Vertical axis
d. Horizontal axis
ANS: A
Main contribution of Steven Ng-Sheong Cheung’ in his field:
a. Transaction costs and Interest
b. Transaction costs and property rights
c. Transaction costs and profits
d. None of the above
ANS: B
The term ‘economic man was coined by:
a. J.S. Mill
b. J.R. Hicks
c. J. M. Keynes
d. Adam smith
ANS: D
Which of the following economist focuses on value in exchange?
a. Adam Smith
b. David Ricardo
c. J.S. Mill
d. Thomas Malthus
ANS: A
Macroeconomics is also known as:
a. Price theory
b. Theory of income and employment
c. Economics of aggregate
d. Both (b) and (c)
ANS: D
Which definition of economics is known as universal definition of economics’:
a. Adam Smith’s definition
b. Alfred Marshall’ s definition
c. Lionel Robbins’s definition
d. Paul A. Samuelson’s definition
ANS: C
What classical economic theory did Adam Smith employ to describe how prices were set by mercantilists?
a. General equilibrium theory
b. Monopoly pricing
c. The paradox ot price
d. Perfect competition
ANS: B
According to classical economists, savings are equal to investment through flexibility of:
a. Interest rate
b. Price
c. Output
d. Money
ANS: A
The basic economic problems are common to
a. Capitalism
b. Socialism
c. Mixed economy
d. All the above
ANS: D
Goods produced for use in future productive process are called:
a. Intermediate goods
b. Final goods
c. Consumer goods
d. Capital goods
ANS: D
Who wrote the article ‘Laws of Returns under Competitive Conditions’?
a. Joan Robinson
b. E.H. Chamberlin
c. A.C. Pigou
d. P. Sraffa
ANS: D
A simplified representation of a real situation is called:
a. Theory
b. Economic Model
c. Hypotheses
d. Evidence
ANS: B
Under increasing opportunity costs; the PPC is:
a. Convex to the origin
b. Concave to the origin
c. Vertical axis
d. Horizontal axis
ANS: B
There are___ basic economics activities:
a. Two
b. Three
c. Four
d. Five
ANS: B
In which of the following economies does the government decide how to use the factors of production?
a. Market economy
b. Traditional economy
c. Command economy
d. Free-trade economy
ANS: C
Economics is a:
a. Physical science
b. Natural science
c. Social science
d. Science of wealth
ANS: C
The concept *circular cumulative causation was developed by:
a. Gunnar Myrdal
b. Simon Kuznets
c. Tjalling Koopmans
d. None of the above
ANS: A
Under constant opportunity costs, the PPC is:
a. Upward slope
b. Downward slope
c. Straight line
d. Vertical axis
ANS: C
The term Creative destruction was introduced by American economist:
a. Simon Kuznets
b. Tjalling Koopmans
c. Joseph Schumpeter
d. Theodore Schultz
ANS: C
The theory of Unlimited supply of labor was proposed by:
a. Paul A. Samuelson
b. Robert Solow
c. Ranger Nurkse
d. Arthur Lewis
ANS: D
Introduction to Economics MCQs/ Economics MCQs/ Economics Lecturer MCQs/ MCQs of Economics/ Most repeated MCQs of Economics/ Economics Lecturer Solved Past Papers/ Previous Test of Economics Lecturer/ SS Economics Previous Tests/ Lecturer Economics Previous Tests
Introduction to Economics MCQs
Macroeconomics distinguishes between the real economy and:
a. virtual economy
b. normative economy
c. underground economy
d. monetary economy
ANS: D
Who is assumed as the father of Economics?
a. Adam Smith
b. Lionel Robinson
c. Alfred Marshall
d. George Bernard
ANS: A
The wealth concept was introduced by:
a. Alfred Marshall
b. Adam Smith
c. Robbins
d. Samuelson
ANS: B
Famous Pin production example is related to:
a. Alfred Marshall
b. J. M. Keynes
c. Adam Smith
d. Karl Marx
ANS: C
According to Robbins, economics is
a. Science of wealth
b. Science of national welfare
c. Science of scarcity
d. Science of growth and development
ANS: C
Robbins’s Definition of economics was criticized by:
a. Alfred Marshal!
b. J.B. Clark
c. Beveridge and Piguo
d. P. A. Samuelson
ANS: C
Black Tuesday is:
a. 24 October 1929
b. 27 October 1929
c. 29 October 1929
d. 27 October 1929
ANS: C
Who expressed the view that Economics is neutral between ends:
a. Lionel Robbins
b. Alfred Marshall
c. A. C. Pigou
d. Adam smith
ANS: A
The existence of both public and private sector enterprises constitutes
a. Capitalist economy
b. Mixed economy
c. Socialist economy
d. None of the Above
ANS: B
During the years 1932-1937, the level of unemployment in the United States of America was
a. 10 million
b. 15 million
c. 20 million
d. None of the above.
ANS: B
The ‘Great Depression in 1929, created a lot of:
a. Involuntary Unemployment
b. Cyclical unemployment
c. Structural unemployment
d. Voluntary unemployment
ANS:
According to David C Wheelock, Great Depression was caused by
a. Misguided Labor Policies
b. Misguided Wages Policies
c. Misguided classical Polices
d. Misguided government policies
ANS: D
Economics is the gospel of mammon. Whose statement is this?
a. Carlyle
b. Ruskin
c. Arnold
d. Walras
ANS: A
According to John W. Goodwin, there are ____distinct methods used by economists to describe relationships.
a. Two
b. Three
c. Four
d. Five
ANS: C
The former Soviet Union was an example of:
a. A planned economy
b. Free-market/capitalism
c. Dictatorship
d. A mixed economy
ANS: A
The level of unemployment in the United States of America was 15 million.
a. 1929-1933
b. 1930-1930
c. 1933-1937
d. 1932-1937
ANS: C
Drain Theory relates to which economist:
a. Dadabhai Naoroji
b. Amit Mitra
c. Bimal Jalan
d. V.K.R.V Rao
ANS: A
According to Arthur O’Sullivan, “During the Great Depression in the 1930s nearly of the US labor force was unemployed.
a. One-second
b. One-third
c. One-fourth
d. One-fifth
ANS: C
When did the Great Depression hit the United States in:
a. 1933
b. 1929
c. 1932
d. 1923
ANS: B
According to Marc Lieberman, ‘Preferences that satisfy:
a. Two conditions
b. Three conditions
c. Four conditions
d. Six conditions
ANS: A
J. S. Mill’s book “Principle of political economy” (1848) is also known as:
a. Bible of capitalism
b. Bible of socialism
c. Bible of economists
d. None of these
ANS: C
The production possibility curve is concerned with:
a. Resources of the economy
b. The interest of the economy
c. Limitations of the economy
d. Qualities of the economy
ANS: A
Scarcity means:
a. Nil resources
b. Limited resources
c. Many resources
d. Extra resources
ANS: B
Labor theory was first rejected by:
a. Samuelson
b. Adam smith
c. Karl Marx
d. Ricardo
ANS: C
Price mechanism has also been given the name:
a. Laisseze-Faire
b. Ricardian-Faire
c. Price system
d. None of these
ANS: A
General equilibrium is concerned with the simultaneous equilibrium of:
a. Few economics agents
b. Two economics agents
c. Many economics agents
d. All the economic agents
ANS: D
In the Ricardian theory of value, the stress has been made on:
a. Marginal cost
b. Production cost
c. Labor cost
d. Collection cost
ANS: A
Traditionally, the study of the determination of price is called:
a. Theory of prices
b. Theory of value
c. Theory of importance
d. Theory of cost
ANS: B
Marshall’s demand-supply model represents the:
a. General equilibrium
b. Partial equilibrium
c. Both of them
d. None of them
ANS: B
‘positive and normative economics is also called:
a. Economics theory
b. Economics policy
c. Both of them
d. None of them
ANS: A
According to classical economists in the short run production depends upon the:
a. Unit of labor
b. Unit of capital
c. Both of them
d. None of them
ANS: A
The water diamond paradox was first resolved with the help of:
a. Individual theory of value
b. Consumer theory of value
c. The labor theory of value. Producer theory of value
ANS: C
Who is the author of the ancient book on economics, Arthashastra?
a. Kautilya
b. Chanakya
c. Sushrut
d. Bhattacharya
ANS: B
Who wrote the “Principles of Economics”?
a. Adam Smith
b. L. Robins
c. Alfred Marshall
d. J. M Keynes
ANS: C
Marshall’s definition of economics was strongly criticized by:
a. Adam Smith
b. Prof Piguo
c. Prof Robbins
d. None of the above
ANS: C
The problem of scarcity and choice is called:
a. Economic problem
b. Social problem
c. Political problem
d. Ethical problem
ANS: A
The main contribution of Alfred Marshall is in the field of:
a. Research into the mathematical
b. Principal of the theory of wealth
c. Economics of labor
d. Theory of demand
ANS: D
The main contribution of Prof. Robbins is in the field of
a. Human welfare
b. National income
c. The multiplicity of want and scarcity of means
d. Elasticity of demand
ANS: C
The main contribution of Prof. Allen is in the field of.
a. Fixation of price
b. Arc elasticity of demand
c. Cross elasticity of demand
d. Income distribution
ANS: B
The main contribution of Malthus is in the field of:
a. Consumption expenditure
b. Problems of population
c. Division of labor
d. Indivisible Hand
ANS: B
The main contribution of David Ricardo is in the field of:
a. Wages of labor
b. Factor pricing
c. Economics rent
d. None of these
ANS: C
Who has given scarcity a definition of economics?
a. Adam smith
b. Marshall
c. Robbins
d. Robertson Workable
ANS: C
The Concept of ‘Competition’ was first put forward by:
a. J. M. Clark in 1940
b. J. M. Keynes in 1940
c. J. R. Hicks in 1940
d. J. K. Galbraith in 1940
ANS: A
Prof.J. M. Clark’s Workable Competition is classified into:
a. Two types
b. Three types
c. Four types
d. Neither (a) nor (b)
ANS: B
The term Value-in-use and ‘value- in-exchange were invented by:
a. David Ricardo
b. Adam Smith.
c. J. S. Mill
d. J. B. Say
ANS: B
The term ‘Static’ and Dynamic was introduced in economics by:
a. J. S. Mill
b. A. C. Pigou
c. Alfred Marshall
d. Adam Smith
ANS: A
The term economic goods were coined by:
a. A. C. Pigou
b. Alfred Marshall
c. Nassau William Senior
d. Friedrich List
ANS: B
According to Say’s law of the market, the money remains:
a. Increasing
b. Decreasing
c. Neutral
d. Both (a) and (c)
ANS: C
A. C. Pigou explained Say’s law of market with the help of:
a. Money market analysis
b. Capital market analysis
c. Labor market analysis
d. Good market analysis
ANS: C
Karl Marx built his economic analysis upon:
a. Mill’s theories
b. Adam Smith theories
c. Ricardo’s theories
d. Both (a) and (c)
ANS: C
Introduction to Economics MCQs/ Economics MCQs/ Microeconomics MCQs/ Economics Lecturer MCQs/ MCQs of Economics/ Most repeated MCQs of Economics/ Economics Lecturer Solved Past Papers/ Previous Test of Economics Lecturer/ SS Economics Previous Tests/ Lecturer Economics Previous Tests
Introduction to Economics MCQs
The term ‘Invisible Handshake was coined by:
a) Robert Solow
b) Arthur Okun
c) Maurice Allais
d) Trygve Haavelmo
ANS: B
The term Invisible Hand was coined by:
a) David Ricardo
b) J. S. Mill
c) John Mill
d) Adam Smith
ANS: D
In economics the term, value means always:
a) Value in use
b) Value in exchange
c) Both of them
d) None of them
ANS: B
The subject matter of Microeconomics focuses on:
a) Price determination
b) Income determination
c) Both of them
d) None of them
ANS: A
According to economists and hoi polloi, our economic system is most
a. Easy
b. Complicated
c. Difficult
d. None of the above
ANS: B
Who said “Economics as the Science which treats wealth
a. A. C. Pigou
b. J. C. L. Sismondi
c. J.B. Say
d. All of the above
ANS: C
According to Ruskin Adam Smith as half-bred and:
a. Half imprudence man
b. Half-witted man
c. Both (a) and (b)
d. None of them
ANS: B
The Welfare definition of economics related to which school of thought:
a. Classical
b. Modern
c. Neo-classical
d. Both (a) and (c)
ANS: C
Alfred Marshall’s definition of economics was criticized by:
a. Lionel Robbins
b. Paul A. Samuelson
c. J. M. Keynes
d. Both (a) and (c)
ANS: A
Who said Why talk of welfare at all?
a. L. Lionel Robbins
b. F.Y. Edgeworth
c. Irving Fisher
d. All of the above
ANS: A
According to J. M. Keynes economics is a:
a. Normative science
b. Pure science
c. Both of them
d. None of them
ANS: B
Paul. A. Samuelson of economics related to:
a. Steady-state aspect
b. Static aspect
c. Dynamic aspect
d. All of the above
ANS: C
The slope of the production possibilities curve is:
a. Marginal utility
b. Always linear
c. The same as the demand curve
d. Marginal opportunity costs
ANS: D
Lionel Robbins. W. N. Senior and Milton Friedman have described economics as a:
a. Positive science
b. Normative science
c. Both of them
d. None of them
ANS: A
According to most modern economists economics is a:
a. Positive science
b. Normative science
c. Both of them
d. None of them
ANS: C
Alfred Marshall, A. C. Pigou, Hawtrey, and J. M. Keynes are:
a. Positive economist
b. Normative economist
c. Steady-state economists
d. All of the above
ANS: B
According to Alfred Marshall Law of economics are:
a. Qualitative nature
b. Quantitative nature
c. Both of them
d. None of them
ANS: A
According to economists, in the 19th and 20 centuries, economists adopted ____ economic models method:
a. Two
b. Four
c. Six
d. Eight
ANS: A
According to Abba Lerner Deductive method as
a. Roundtable analysis
b. Armchair analysis
a. Both (a) and (b)
d. None of them
ANS: B
Black Monday is:
a. 19 October 1987
b. 19 October 1988
c. 19 October 1989
d. 190ctober 1990
ANS: A
Black Wednesday is:
a. 16 September 1991
b. 16 September 1992
c. 16 September 1992
d. None of the above
ANS: B
The Deductive method is also known as:
a. Analytical method
b. Abstract method
c. Prior method
d. All of the above
ANS: D
The most classical and neo-classical schools of economists, David Ricardo, W. N. Senior, Cairnes, J.S. Mill, Malthus, Alfred Marshall, A. C. Pigou, applied the:
a. Deductive method
b. Inductive method
c. Both of them
d. None of them
ANS: A
The Inductive method is also called:
a. Empirical method
b. Historical method
c. Realistic method
d. All of the above
ANS: D
The inductive method was first adopted by German
a. Liberal School of Economists
b. Historical School of Economists
c. Classical School of Economists
d. Traditional School of Economists
ANS: B
According to modern economist Inductive method is a’
a. Static
b. Steady-state
c. Dynamic
d. Both (a) and (c)
ANS: C
The concept of Learning by doing was given by:
a. J. R. Hicks
b. Kenneth Arrow
c. Joan Robinson
d. Nicholas Kaldor
ANS: B
Traditionally, the study of the determination of price is called:
a. Production cost
b. Labor cost
c. Collection cost
d. Marginal cost
ANS: D
The stable cobweb model is:
a. Dynamic model
b. Steady-state model
c. Simple model
d. Both (a) and (o)
ANS: D
According to Philosophers, the value concerning:
a. Use
b. Exchange
c. Both of them
d. None of them
ANS: A
According to economists, the value concerning:
a. Relative prices
b. Use
c. Exchange
d. Both (a) and (c)
ANS: D
According to Marginalists, the marginal usefulness and marginal cost determine the:
a. Wage of labor units
b. Price of any commodity
c. Profits of any system
d. Cost of any firm
ANS: B
According to the marginal school of thought, the supply curve slope is
a. Positive
b. Negative
c. Neutral
d. None of the above
ANS: A
The Marshallian demand and supply model resolved the:
a. Air-diamond paradox
b. Pigouvian -paradox
c. Water-diamond paradox
d. Hicksian paradox
ANS: C
The relationship between opportunity cost and money cost (Money C) is:
a. Negative
b. Positive
c. No relationship
d. Both (a) and (b)
ANS: B
Micro means:
a. Millionth part of a thing
b. Billionth part of a thing
c. Trillionth part of a thing
d. None of the above
ANS: A
The Production Possibility curve slope is always:
a. Upward to the left
b. Upward to the right
c. Downward to the right
d. Downward to the left
ANS: C
A typical PPC curve always:
a. Bowed inward
b. Bowed outward
c. Both of them
d. None of them
ANS: B
The Production Possibility Curve (PPC) is also known as
a. Production Possibility Frontier
b. Production Possibility Transformation
c. Both (a) and (b)
d. None of these
ANS: C
If the elasticities of supply and demand are equal to each other. The cobweb model will be:
a. Dynamic
b. Stable
c. Both of them
d. None of them
ANS: B
The Production possibility curve is:
a. Marginal Rate of Product Transformationxy
b. Marginal Rate of Technical Substitutionxy
c. Marginal rate of substitution
d. Marginal rate of transformation
ANS: A
Capitalism is also called:
a. Price system
b. Laissez-faire
c. Market economy
d. All of the above
ANS: D
Socialism is also known as:
a. Communism
b. Planned economy
c. Both of them
d. None of them
ANS: C
The intellectual father of modern scientific socialism:
a. Karl Marx
b. Alfred Marshal
c. J. M. Keynes
d. All of the above
ANS: A
Russia adopted socialism in 1917, Which time chain adopted socialism in:
a. 1939
b. 1949
c. 1959
d. None of these
ANS: B
Classical economists believed in the Iron law of wages:
a. Adam Smith
b. David Ricardo
c. J. S. Mill
d. W. S. Senior
ANS: B
According to Lionel Robbins, Human wants are
a. Thousands
b. A Few
c. Various
d. Innumerable
ANS: D
According to Most Neo-classical economists, Utility is also termed as:
a. Value in exchange
b. Value in use
c. Both of them
d. None of them
ANS: B
According to modern economics, what is the nature of the problem of scarcity?
a. Comparative
b. Reciprocal
c. External
d. Both (a) and (c)
ANS: A
The term economics is a social science was coined by
a. Adam Smith
b. Alfred Marshall
c. Lionel Robbins
d. J. S. Mill
ANS: B