Choose the Correct Option (Weightage 5 Marks)
1. Introduction to Micro and Macro Economics
1) The branch of economics that deals with the allocation of resources.
a) Micro economics
b) Macro economics
c) Econometrics
d) None of these
Option:
1) a, b and c
2) a and b
3) only a
4) None of these
Ans:-3) Only a
2) Concepts studied under Microeconomics.
a) National income
b) General price level
c) Factor pricing
d) Product pricing
Option :
1) b and c
2) b, c and d
3) a, b and c
4) c and d
Ans:-4) c and d
3) Method adopted in micro economic analysis.
a) Lumping method
b) Aggregative method
c) Slicing method
d) Inclusive method
Option :
a) a, c and d
b) a, b and d
c) only c
d) only a
Ans:-c) Only c
4) Concepts studied under Macro economics.
a) Whole economy
b) Economic development
c) Aggregate supply
d) Product pricing
Option :
a) a, b and c
b) b, c and d
c) only d
d) a, b, c and d
Ans:- a) a,b and c
2. Utility Analysis
1. Column A | Column B |
1) Time utility | a) Transport |
2) Place utility | b) Blood bank |
3) Service utility | c) Mobile phone |
4) Knowledge utility | d) Doctor |
Option: –
A) 1- d, 2 – b,3 – a, 4 – c
B) 1- b, 2 – a, 3 – d, 4 – c
C) 1 – a, 2 – b, 3 – c, 4 – d
Ans:-B) 1 – b, 2 – a, 3 – d, 4 – c
- Statement indicating consumer equilibrium:
- a) MU is greater than price
- b) MU is equal to price
- c) MU is less than price
- d) Price is less than one
Option: –
A) a and b
B) a, b, c and d
C) a, b and c
D) only b
Ans:-D)only b
3 A Demand Analysis
No Textual Question
3 B Elasticity of Demand
No Textual Question
4. Supply Analysis
No Textual Question
5. Forms of Market
1. In economic sense, market includes following activities :
a)The place where goods are sold and purchased.
b)An arrangement through which buyers and sellers come in close contact with each other directly or indirectly.
c)A shop where goods are sold.
d)All of the above.
Options:
1) a and b
2) b and c
3) a, b and c
4) only b
Ans:- 4) only b
2. Classification of markets on the basis of place
a) Local market, National market, International market
b) Very short period market, Local market, National market.
c) Short period market, National market, International market.
d) Local market, National market, Short period market.
Options :
1) a, b and c
2) b, c and d
3) only a
4) a and d
Ans:- 3) only a
3. Homogeneous products are a feature of this market.
a) Monopoly
b) Monopolistic competition
c) Perfect competition
d) Oligopoly
Options :
1) c and d
2) a, b and c
3) a, c and d
4) only c
Ans:- 4) only c
4. Under Perfect competition, sellers are
a) Price makers
b) Price takers
c) Price discriminators
d) None of these
Options
1) a, b and c
2) only b
3) only c
4) a and c
Ans:- 2) only b
6. Index Numbers
1) Statements that are incorrect in relation to index numbers.
a) Index number is a geographical tool.
b) Index numbers measure changes in the air pressure.
c) Index numbers measure relative changes in an economic variable.
d) Index numbers are specialized averages.
Options :
1) c and d
2) a and b
3) b and c
4) a and d
Ans:- 1) c and d
2) Statements that highlight the significance of index numbers.
a) Index numbers are useful for making future predictions.
b) Index numbers help in the measurement of inflation.
c) Index numbers help to frame suitable policies.
d) Index numbers can be misused.
Options :
1) b, c and d
2) a, c and d
3) a, b and d
4) a, b and c
Ans:- a,b and d
3) Statements that apply to weighted index numbers.
a) Every commodity is given equal importance.
b) It assigns suitable ‘weights’ to various commodities.
c) In most of the cases, quantities are used as weights.
d) Laaspeyre’s and Paasche’s method is used in the calculation of weighted index numbers.
Options :
1) b, c and d
2) a, c and d
3) a, b and d
4) a, b, c and d
Ans:- 1) b, c and d
4) Statements related to limitations of index numbers.
a) Index numbers are not completely reliable.
b) There may be a bias in the data collected.
c) Every formula has some kind of defect.
d) Index numbers ignore changes in the qualities of products.
Options :
1) a, c and d
2) a, b, c and d
3) a, b and d
4) b, c and d
Ans:- 2) a, b, c and d
5) Choose the correct pair:
Group A | Group B |
1) Price Index | a) ∑p1q1/∑p0q0×100 |
2) Value Index | b) ∑q1/∑q0×100 |
3) Quantity Index | c) ∑p1q1/∑p0q1×100 |
4) Paasche’s Index | d) ∑p1/∑p0×100 |
1) 1-d, 2-c, 3-a, 4-b
2) 1-d, 2-a, 3-b, 4-c
3) 1-b, 2-c, 3-d, 4-a
4) 1-c, 2-d, 3-a, 4-b
Ans:-
2) 1-d, 2-a, 3-b, 4-c
7. National Income
1. Wrongly matched pair:
a) National Income Committee – 1949
b) Financial year – 1st April to 31st March
c) Income method – National Income = Rent + Wages + Interest + Profit Mixed income + Net Income from abroad
d) Expenditure method – National Income = Rent + Wages + Interest + Profit
Options: 1) a 2) b 3) c 4) d
Ans: 4) d
8. Public Finance in India
1. Optional functions of Government :
a) Protection from external attack
b) Provision of education and health services
c) Provision of social security measures
d) Collection of tax
Options:
1) b and c
2) a, b and c
3) b, c and d
4) All of the above
Ans:- 1) b and c
2. Obligatory functions of the Government:
a) Provision of employment
b) Maintaining internal law and order
c) Welfare measures
d) Exporting goods and services
Options:
1) c and d
2) a and b
3) only b
4) a, c and d
Ans:- 3) only b
3. “Definition – Public finance is one of those subjects which are on the borderline between economics and politics.” ……… given by
a) Adam Smith
b) Alfred Marshall
c) Prof. Hugh Dalton
d) Prof. Findlay Shirras
Options :
1) only a
2) only b
3) only c
4) only d
Ans:- 3) only c
4. Non-tax sources of revenue :
a) Direct and Indirect Tax
b) Direct Tax and Fees
c) Fees
d) Special Levy
Options:
1) b and c
2) a and c
3) a, b, c and d
4) c and d
Ans:- 4) c and d
5. Trends shown by Public expenditure of any Government shows the following trend.
a) Constant
b) Increasing
c) Decreasing
d) Fluctuating
Options:
1) only a
2) only b
3) only c
4) only d
Ans:- 2) only b
6) Identify the right group of pairs from the given options.
Group A | Group B |
i) Direct tax | a) Non-tax revenue |
ii) Indirect tax | b) Inflation |
iii) Fees and Fines | c) GST |
iv) Surplus budget | d) Personal income tax |
1) i-d ii-c iii-b iv-a
2) i-c ii-d iii-a iv-b
3) i-d ii-c iii-a iv-b
4) i-a ii-b iii-c iv-d
Ans:- 3) i-d ii-c iii-a iv-b
9. Money Market and Capital Market
No Textual Question
10. Foreign Trade in India
1) Types of foreign trade
a) Import trade
b) Export trade
c) Entrepot trade
d) Internal trade
Options :
1) a and b
2) a, b and c
3) a, b, c and d
4) None of these
Ans:- 2) a, b and c
2) Export trends of India’s foreign trade includes
a) Engineering goods
b) Gems and Jewellery
c) Textiles and ready-made garments
d) Gold
Options :
1) a and c
2) a, b and c
3) b, c and d
4) None of these
Ans:- 2) a, b and c
3) Role of foreign trade is
a) To earn foreign exchange
b) To encourage investment
c) Lead to division of labour
d) Bring change in composition of exports
Options :
1) a and b
2) a, b and c
3) b and d
4) None of these
Ans:- 2) a, b and c