Quiz - Introduction to Economics

You got 8 of 8 possible points.

Question Results
Score 1.00 of 1
Question:
"A science that studies human behaviour as a relationship between limited resources and unlimited wants which
have alternate uses" refers to which definition of Economics?
Response:
Growth
Scarcity
Wealth
Welfare
Score 1.00 of 1
Question:
What is Opportunity Cost?
Response:
The extra value of buying an extra unit of a product.
A cost that cannot be avoided, regardless of what is done in the future.
The value sacrificed for the next best alternative.
The cost incurred in the past while we make a decision about what to do in the future.
Score 1.00 of 1
Question:
The fundamental economic problem faced by all societies is ___________.
Response:
Power
Poverty
Change
Scarcity
Score 1.00 of 1
Question:
Who is considered as the father of Economics?
Response:
Adam Smith
Alfred Marshall
Robbins

Samuelson
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Question:
Utility of a product refers to ____________.
Response:
Cost
Satisfaction
Value
Price
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Question:
The concept of Marginal Utility was developed by __________________.
Response:
Hicks and Allen
Paul Samuelson
Robbins
Alfred Marshall
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Question:
Total utility is maximum when _________.
Response:
Marginal Utility is Maximum
Marginal Utility is Zero
Marginal Utility is Minimum
Average Utility is Equal to Zero
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Question:
Which of the following is not a correct assumption for the Law of Diminishing Marginal Utility?
Response:
Marginal Utility is Zero
The unit of the good must be standard
There must be continuity in consumption
There should be no change in taste during the process of consumption
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Quiz - Microeconomics and Macroeconomics

You got 8 of 14 possible points.

Question Results
Score 1.00 of 1
Question:
What do you mean by Demand?
Response:
Desire to buy+ willingness to buy
Desire to buy + ability to buy
Desire to buy + ability to buy + willingness to buy
Desire to buy
Score 1.00 of 1
Question:
Tertiary sector refers to:
Response:
Agriculture
Services
Manufacturing
Production
Score 1.00 of 1
Question:
Distinction between microeconomics and macroeconomics was given by:
Response:
Samuelson
J M Keynes
Adam Smith
Ragnar Frisch
Score 1.00 of 1
Question:
Price theory is a part of ____________ .
Response:
Microeconomics
Macroeconomics
Behavioural economics
Industrial economics
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Question:
During excess demand:
Response:
Market price is higher than the equilibrium price

Market price is same as the equilibrium price

Market price is lower than the equilibrium price
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Question:
For Mobile phones, the demand and supply conditions are QD = 200 20P; QS = 50 + 10P. Find the equilibrium
price and quantity?
Response:
4, 125
5, 100
4, 100
5, 125
Score 1.00 of 1
Question:
A decision to decrease the subsidies will lead to:
Response:
A left shift in the supply curve
A right shift in the supply curve
An upward movement along the supply curve
A downward movement along the supply curve
Score 0.00 of 1
Question:
Law of supply states that "as price ______________, the quanity supplied_______________"
Response:
Decreases; No corelation
Decreases; Decreases
Increases; Decreases
Increases; No corelation
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Question:
Supply is a positive function of ______________.
Response:
Income
Price
Cost
Market
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Question:
The demand for Diesel cars decreases when the price of Petrol Cars ________ and also decreases when the
price of Diesel ________.
Response:

Falls; Falls
Rises; Falls
Rises;Rises
Falls;Rises
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Question:
When Tax increases, it leads to a _____________ in demand.
Response:
Contraction
Increase
Decrease
Expansion
Score 1.00 of 1
Question:
Which among the following factors affect demand inversely?
Response:
Consumer's income
Size of population
Price
Government subsidy
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Question:
According to the Law of Demand, the demand curve for a good will:
Response:
Slope downward from left to right
Slope upward from left to right
Slope downward from right to left
Slope upward from righ to left
Score 0.00 of 1
Question:
Which among the following is a reason for cost-push inflation?
Response:
Increase in income
Increase in population
Increase in the price of raw materials
Increase in money supply
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Quiz - Overview of Macroeconomics

You got 9 of 10 possible points.

Question Results
Score 1.00 of 1
Question:
Which component has the largest share of aggregate demand in India?
Response:
Government spending
Investment
Consumption
Net exports
Score 1.00 of 1
Question:
Along the short-run aggregate supply curve, a higher price level leads to ___________ profits by the firms.
Response:
No change in
Higher or lower
Higher
Lower
Score 1.00 of 1
Question:
Which of the following curve is vertical, when plotted with the aggregate price level on the vertical axis and output
on the horizontal axis?
Response:
SRAS
AD
AS
LRAS
Score 0.00 of 1
Question:
Which factor affects the aggregate supply inversely?
Response:
Productivity
Technology
Cost
Subsidy

Score 1.00 of 1
Question:
If the income of an individual increases from Rs.10,000 per month to Rs.20,000 per month, and the consumption
increases from Rs.4,000 to Rs.6,000 per month, then what is APC and MPC?
Response:
APC = 0.3 and MPC = 0.2
APC = 0.2 and MPC = 0.3
APC = 0.4 and MPC = 0.6
APC = 0.2 and MPC = 0.4
Score 1.00 of 1
Question:
As the MPS increases, the multiplier will:
Response:
Increase
Either increase or decrease depending on the size of the change in investment
Remain constant
Decrease
Score 1.00 of 1
Question:
What is the expected return on an investment called?
Response:
Marginal cost of capital

Marginal efficiency of capital

Marginal efficiency of return
Marginal efficiency of profit
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Question:
To get the economy out of a slump, Keynes believed that the government should do what?
Response:
Decrease taxes and/or increase government spending
Increase both the taxes and government spending
Increase taxes and /or decrease government spending
Decrease both taxes and government spending
Score 1.00 of 1
Question:
Aggregate demand will increase if:

Response:
Consumption falls
Investment falls
Imports falls
Exports Fall
Score 1.00 of 1
Question:
Identify a negative supply shock from the following:
Response:
Decrease in rate of interest

Increase in subsidies
Natural calamity
Tax rebate
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