Economics Commerce (12th) Practice Test

YOUTUBE: SURAJ PATEL EDUCATION

PROTON CLASSES 

1)         The shape of an exceptional demand curve is:

a. Horizontal    

b. Vertical    

c. Downward sloping   

d. Upward sloping  

ANS: A

 

2)         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

 

 3)        As per the law of diminishing marginal utility, all units of a commodity consumed are

a. exactly homogeneous    

b. identical     

c. heterogeneous      

d. both a and b        

ANS: D

 

4)         Which one is not a type of demand elasticity:

a. Income elasticity   

b. Cross elasticity    

c. Price elasticity    

d. Point elasticity     

ANS: D

 

5)         Other factors remaining 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

 

6)         Supply is always expressed in relation to

a. Price    

b. time    

c. quantity    

d. All  

ANS: D

 

 7)        Which one not a part of DFI of Indian capital market:

a. IFCI    

b. UTI    

c. IDBI    

d. VCs           

ANS: D

 

 8)        Which one of the following is not the capital expenditure:

a. huge investments in different development projects

b. salaries, allowances and pensions of government employees

c. loans granted to the state governments

d. repayment of government loans          

ANS: B

 

 9)        Supply is

a. a micro-economic concept.    

b. a macro-economic concept.   

c. Both a and b    

d. Only b       

ANS: A

 

10)       Efficiency in production means:

a. producing maximum possible amount of goods and services from the maximum amount of resources.

b. producing maximum possible amount of goods and services from the given amount of resources.

c. producing minimum possible amount of goods and services from the given amount of resources.

d. producing minimum possible amount of goods and services from the minimum amount of resources.    

ANS: B

 

 11)      Suppliers of long term funds are

a. Individual savers  

b. corporate savings  

c. banks    

d. All of the above   

ANS: D

 

12)       Capital market is a market for:

a. long term funds both equity

b. debt raised within the country

c. debt raised outside the country

d. All of the above   

ANS: D

 

 13)      Equilibrium is the balance between:

a. two factors       

b. three factors    

c. four factors         

d. none         

ANS: A

 

 14)      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

 

15)       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

 

 16)      Bonds refer to

a. shares of a company held by an individual or a group

b. debt instruments issued by companies or the government as a means of borrowing long term funds.

c. a financial instrument that contains a written promise

d. None         

ANS: B

 

 17)      In perfect competition, the products sold are:

a. Homogenous    

b. Heterogeneous    

c. Un-identical       

d. None         

ANS: A

 

 18)      The year for which the index number is prepared is:

a. Current year   

b. base year      

c. Accounting year     

d. Financial year     

ANS: A

 

19)       The more of a thing you have, the less you want to have

a. Less of it       

b. Equal to it     

c. more of it       

d. all  

ANS: C

 

20)       “public finance” is nothing but a study of the principles of income and expenditure of the government at:

a. central level    

b. state level    

c. local level    

d. All of the above   

ANS: D

 

21)       Capital account of BOP records all such transactions which cause:

a. Movement of services between one country and rest of the world

b. Movements of goods between one country and rest of the world

c. Change in the ownership of assets between one country and rest of the world

d. Both b and c        

ANS: C

 

 22)      Output method is also called as :

a. Product method    

b. Inventory method    

c. Quantity method    

d. Both a and b        

ANS: D

 

23)       When change in demand is equal to the change in price, the price elasticity is:

a. relatively inelastic demand   

b. relatively elastic demand

c. perfectly elastic                     

d. Unitary elastic

ANS: D

 

           

 24)      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

 

 25)      Which one is special levies:

a. duties levied on wine, opium and other intoxicants

b. railways fares

c. education fee

d. All of the above

ANS: A          

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