a) Lumping method
b) Aggregative method
c) Slicing method
d) Inclusive method
Options:1) a, c and d 2) a, b and d 3) only c 4) only a
ANS:3
2) 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
3) Quantities of the ‘base year’ are considered as weights in:
a. Laaspeyre’s Price Index Number
b. Paasche’s Price Index Number
c. Both
d. None
ANS:A
4) Construction of index numbers:
a. Simple index number
b. Weighted index number
c. Both
d. None
ANS:C
5) The net addition made to total cost by producing one more unit of output is
a. Fixed cost
b. Variable cost
c. Total cost
d. Marginal cost
ANS:D
6) The additional utility derived by a consumer from an additional unit of a commodity consumed is:
a. Marginal utility
b. Total utility
c. Differential utility
d. Common utility
ANS:A
7) When there is an increase in supply due to favourable changes other than price is
a. Increase in supply
b. Decrease in supply
c. Expansion of supply
d. Contraction of supply
ANS:A
8) Capital market helps to achieve operational efficiency by
a. lowering the transaction costs
b. simplifying transaction procedures
c. lowering settlement timings in purchase and sale of stocks
d. All of the above
ANS:D
9) In the three sector model of the circular flow of National Income, the third sector added to the two sector model is:
a. Foreign sector
b. Commodity sector
c. Intermediary sector
d. Government sector
ANS:D
10) Short term instruments are
a. highly liquid
b. less risky
c. easily marketable, with a maturity period of one year or less than one year.
d. All of the above
ANS:D
11) 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
12) 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
13) Economic efficiency involves:
a. three efficiencies
b. two efficiencies
c. four efficiencies
d. no efficiency
ANS:A
14) Cross elasticity is related with
a. Substitutes
b. Compliments
c. Both
d. None
ANS:C
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
12) 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
13) Economic efficiency involves:
a. three efficiencies
b. two efficiencies
c. four efficiencies
d. no efficiency
ANS:A
14) Cross elasticity is related with
a. Substitutes
b. Compliments
c. Both
d. None
ANS:C
15) In case of increase in demand, demand curve shifts to:
a. the right hand side of the original demand curve.
b. the left hand side of the original demand curve.
c. No change in place
d. Will become vertical
ANS:A
16) After reaching the point of satiety, a rational consumer should stop his consumption since:
a. the maximum limit of satisfaction is reached
b. There is no addition to total utility by any further increase in the stock of a commodity.
c. The consumer can’t afford to purchase
d. Both a and b
ANS:D
b. the left hand side of the original demand curve.
c. No change in place
d. Will become vertical
ANS:A
16) After reaching the point of satiety, a rational consumer should stop his consumption since:
a. the maximum limit of satisfaction is reached
b. There is no addition to total utility by any further increase in the stock of a commodity.
c. The consumer can’t afford to purchase
d. Both a and b
ANS:D
17) Index numbers are:
a. statistical devices
b. economical devices
c. accounting devices
d. None of the above
ANS:A
18) In perfect competition, price of a commodity is determined by :
a. Demand only
b. Supply only
c. Intersection of demand and supply
d. All of the above
ANS:C
19) Revenue expenditure of the government is incurred for
a. carrying out day-to-day functions of the government departments
b. irregularly
c. regularly
d. both a and c
ANS:D
20) 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
21) When less units are demanded at high price it shows ...............
a) increase in demand
b) expansion of demand
c) decrease in demand
d) contraction in demand
ANS:D
22) In case of exception to law of supply, the supply curve is
a. Upward sloping
b. Downward sloping
c. Horizontal
d. Vertical
ANS:B
23) In case of decrease in supply, the supply curve shifts to the
a. right of the original supply curve.
b. left of the original supply curve.
c. Does not move
d. Both a and c
ANS:B
24) Gifts and remittances to abroad are recorded on the
a. Debit side of current account.
b. Credit side of current account
c. Credit side of capital account
d. Debit side of capital account
ANS:A
25) In the case of _________goods, when price falls, purchasing power (real income) of a consumer increases which enables him to buy more of that commodity.
a. Substitute goods
b. Normal goods
c. Inferior goods
d. Income goods
ANS:B
a. statistical devices
b. economical devices
c. accounting devices
d. None of the above
ANS:A
18) In perfect competition, price of a commodity is determined by :
a. Demand only
b. Supply only
c. Intersection of demand and supply
d. All of the above
ANS:C
19) Revenue expenditure of the government is incurred for
a. carrying out day-to-day functions of the government departments
b. irregularly
c. regularly
d. both a and c
ANS:D
20) 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
21) When less units are demanded at high price it shows ...............
a) increase in demand
b) expansion of demand
c) decrease in demand
d) contraction in demand
ANS:D
22) In case of exception to law of supply, the supply curve is
a. Upward sloping
b. Downward sloping
c. Horizontal
d. Vertical
ANS:B
23) In case of decrease in supply, the supply curve shifts to the
a. right of the original supply curve.
b. left of the original supply curve.
c. Does not move
d. Both a and c
ANS:B
24) Gifts and remittances to abroad are recorded on the
a. Debit side of current account.
b. Credit side of current account
c. Credit side of capital account
d. Debit side of capital account
ANS:A
25) In the case of _________goods, when price falls, purchasing power (real income) of a consumer increases which enables him to buy more of that commodity.
a. Substitute goods
b. Normal goods
c. Inferior goods
d. Income goods
ANS:B
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