Complete the Following Statements (Weightage 5 Marks)
1. Introduction to Micro and Macro Economics
No Textual Questions
2. Utility Analysis
1) In the law of diminishing marginal utility, Alfred Marshall assumes that the marginal utility of money ________.
a) increases
b) remains constant
c) decreases
d) rises and then falls
ans:-b) remains constant
2) As per the law of diminishing marginal utility, the measurement of utility is assumed to be _____.
a) ordinal
b) cardinal
c) both ordinal and cardinal
d) none of the above
Ans:-b) cardinal
3) MU of the commodity becomes negative when TU of a commodity is ______.
a) rising
b) constant
c) falling
d) zero
Ans:- c) falling
4) When MU is falling, TU is _______.
a) rising
b) falling
c) not changing
d) maximum
ans:-a) rising
3 A Demand Analysis
1) The relationship between demand for a good and price of its substitute is ______.
a) direct
b) inverse
c) no effect
d) can be direct and inverse
Ans:-a) direct
2) The relationship between income and demand for inferior goods is ______.
a) direct
b) inverse
c) no effect
d) can be direct and inverse
Ans:-b) inverse
3) Symbolically, the functional relationship between Demand and Price can be expressed as ______.
a) Dx = f(Px)
b) Dx = f(Pz)
c) Dx = f(y)
d) Dx = f(T)
Ans:- a) Dx=f(Px)
4) When less units are demanded at a high price it shows ______.
a) increase in demand
b) expansion of demand
c) decrease in demand
d) contraction in demand
Ans:- d) contraction in demand
3 B Elasticity of Demand
1) Price elasticity of demand on a linear demand curve at the X-axis is ________.
a) zero
b) one
c) infinity
d) less than one
Ans:- a) zero
2) Price elasticity of demand on a linear demand curve at the Y-axis is ________.
a) zero
b) one
c) infinity
gred) ater than one
Ans:- c) infinity
3) Demand curve is parallel to X-axis, in the case of ______.
a) perfectly elastic demand
b) perfectly inelastic
demand
c) relatively elastic demand
d) relatively inelastic demand
Ans:- a)perfectly elastic demand
4) When the percentage change in quantity demanded is more than the percentage change in price, the demand curve is ______.
a) flatter
b)steeper
c) rectangular
d) Horizontal
Ans:- a) flatter
5) Ed = 0 in case of ______.
a) luxuries
b) normal goods
c) necessities
d) comforts
Ans:- c) necessities
4. Supply Analysis
1) When the supply curve is upward sloping, it’s slope is _______.
a) positive
b) negative
c) first positive then negative
d) Zero
Ans:- a) positive
2) An upward movement along the same supply curve shows _______.
a) contraction of supply
b) decrease in supply
c) expansion of supply
d) increase in supply
Ans:- c) expansion of supply
3) A rightward shift in supply curve shows _______.
a) Contraction of supply
b) Decrease in supply
c) Expansion of supply
d) Increase in supply
Ans:- d) Increase in supply
4) Other factors remain constant, when less quantity is supplied only due to a fall in price, it shows ________.
a) Contraction of supply
b) Decrease in supply
c)Expansion of supply
d) Increase in supply
Ans:- a) Contraction of supply
5) Net addition made to the total revenue by selling an extra unit of a commodity is ______.
a) Total Revenue
b) Marginal Revenue
c) Average Revenue
d)Marginal Cost
Ans:- b) Marginal Revenue
5. Forms of Market
No Textual Questions
6. Index Numbers
No Textual Questions
7. National Income
1) While estimating national income, we include only the value of final goods and services in order to _________.
a) make computation easier
b) avoid double counting
c) maximize national welfare of the people
d) evaluate the total economic performance of a nation
Ans:- b) avoid double counting
2) NDP is obtained by ___________.
a) deducting depreciation from GNP
b) deducting depreciation from GDP
c) including depreciation in GDP
d) including depreciation in GNP
Ans:- b) deducting depreciation from GDP
3) In India, national income is estimated using ___________.
a) output method
b) income method
c) expenditure method
d) combination of output and income method
Ans:- c) expenditure method
8. Public Finance in India
No Textual Questions
9. Money Market and Capital Market
1) Development financial institutions were established to ………….
a) provide short term funds.
b) develop industry, agriculture and other key sectors.
c) regulate the money market.
d) regulate the capital market.
Ans:- b) develop industry, agriculture and other key sectors.
2) Money market faces shortage of funds due to ………..
a) inadequate savings.
b) growing demand for cash.
c) presence of unorganized sector.
d) financial mismanagement.
Ans:- a) inadequate savings.
3) Individual investors have lost confidence in the capital market due to ………..
a) lack of financial instruments.
b) high transaction costs.
c) low returns.
d) financial scams.
Ans:- d) financial scams.
4) Commercial banks act as intermediaries in the financial system to ………..
a) make profits
b) accelerate the country’s economic growth.
c) mobilise the savings and allocating them to various sectors of the economy.
d) control the credit.
Ans:- c) mobilise the savings and allocating them to various sectors of the economy.
10. Foreign Trade in India
No Textual Question