QUESTION 1

1. Under first degree price discrimination, differential prices are charged for different
amounts of goods and services

 True

 False

2 points   
QUESTION 2
1. If the demand for a firm's output is horizontal, then the firm is a perfect
competitor.

 True

 False

2 points   
QUESTION 3
1. Total outlay is price multiplied by quantity.

 True

 False

2 points   
QUESTION 4
1. The cross-price elasticity of demand measures the percentage change in the
demand for one good that results from a one percent change in the quantity demanded
of a second good.

 True

 False

2 points   
QUESTION 5
1. What is the shape of perfectly inelastic demand curve?
Vertical straight
line
horizontal
straight line
steeper
flatter

2 points   
QUESTION 6
1. To adjust GDP for market prices to factor cost
deduct indirect taxes and add
subsidies
deduct subsidies and add
indirect taxes
 2 points   
QUESTION 7
1. National Income is studied under Macroeconomics

 True

 False

2 points   
QUESTION 8
1. The price and sales of sugar both increase. What would be the cause of this?
Increase in the price of sugar
substitutes.
Increase in the price of sugar
complements
decrease in the price of sugar
susbtitutes
decrease in the price of sugar
complements
2 points   
QUESTION 9
1. The socially desirable output is when P=MC

 True

 False

2 points   
QUESTION 10
1. National income at market price in an economy in one year is equal to
the sum of the factor payments+indirect
taxes- subsidies
sum of factor receipts +direct taxes -
subsidies
2 points   
QUESTION 11
1. The demand for an individual firm's output depends on the demand for the
industry's output, the number of firms in the industry, and the structure of the industry.

 True

 False

2 points   
QUESTION 12
1. If more is demanded at the same price or same quantity at a higher price, this fact
of demand is known as
Increase in
Demand
Decrease in
 Demand
Extension in
demand
contraction in
demand
2 points   
QUESTION 13
1. A Production function is purely technical

 True

 False

2 points   
QUESTION 14
1. The price elasticity of demand is the same as the slope of a demand curve.

 True

 False

2 points   
QUESTION 15
1. Which of the following is NOT a reason for cutting prices
Capacity utilization
Increasing Profit
margins
Price Comparisons
all of the above

3 points   

QUESTION 16
1. Which of the following Indian Banks is not a nationalised bank?
Central
Bank
Dena
bank
Federal
Bank
Vijaya
Bank
3 points   
QUESTION 17
1. The rate at which one factor is substituted for another is called
marginal rate of substitution
marginal rate of technical
substitution
marginal opportunity cost
 3 points   
QUESTION 18
1. In a market economy, the decision-making is in the hand of millions of buyers and
sellers

 True

 False

3 points   
QUESTION 19
1. Monetary Policy is used by which authority to control inflation?
Reserve Bank of
India
the Ministry of
finance
the State
Government
the Central
Government
1 points   
QUESTION 20
1. How many languages are used on ten rupee note?
fifteee
n
thirte
en
fourte
en
ten

1 points   
QUESTION 21
1. How does paper currency has value?
it has the sanction of the
Government

it does not have the sanction of the

government

1 points   
QUESTION 22
1. If the elasticity of demand is zero, the demand curve will be
parallel to the OX-axis
parallel to vertical axis
upward sloping 450 line
downward sloping from left
to right
1 points   
 QUESTION 23
1. A characteristic of monopolistic competition is
a low ratio of fixed to
variable costs.
a high capital-output ratio.
product differentiation.
the absence of advertising

1 points   
QUESTION 24
1. What is bank rate?
the rate at which commercial bank borrow money
from RBI
the rate at which the RBI borrow money from
commercial bank
Incorrect

1 points   
QUESTION 25
1. Define money?
medium of
exchange
money supply
currency
coins

1 points   
QUESTION 26
1. The only merger of two public sector banks took place between 
Punjab national bank and New
bank of India
PNB and Vijaya bank
PNB and Gramin Bank
PNB and Coperative bank

1 points   
QUESTION 27
1. What does money serve?
a unit of
accounting
monetary base
high powered
money
cheap money

1 points   
QUESTION 28
1. What is the Cash Reserve Ratio?
 the fraction of the deposits that commercial banks must keep with
RBI
fraction of deposits kept with the commercial banks themselves for
emergency purposes
fraction of deposits kept with SBI

1 points   
QUESTION 29
1. Engel curve denotes
various amounts of a good which a consumer would be willing to purchase at
various price levels
various amounts of a good which a consumer would be willing to purchase at
various income levels
various amounts of a good purchased when the price of its substitutes tend to
rise
the relationship between income effect and substitution effect

1 points   
QUESTION 30
1. Which of the following is known as the Gossen's first law
Law of equi-marginal utility
law of diminishing marginal
utility
the law of indifference
law of substitution

1 points   
QUESTION 31
1. Define Recession.
The fall in prices and decline in economic activity in
an economy
rise in prices
increase in economic activity

1 points   
QUESTION 32
1. In depreciation calculation, the useful life of a fixed asset is
a certain figure
an estimate
a predetermined figure for all
fixed assets
1 points   
QUESTION 33
1. India has a
mixed economy
socialist economy
capitalist economy
 Gandhian socialist
economy
1 points   
QUESTION 34
1. Name the major components of money supply.
currency and deposit
components
currency
deposits and coins
coins

1 points   
QUESTION 35
1. Full Form of SLR
State Locality
Reserve
Sundry Leverage
Ratio
State Level
Recovery
Statutory Liquidity
Ratio
1 points   
QUESTION 36
1. Cross elasticity of complementary goods is
zero
high
negati
ve
infinit
e
1 points   
QUESTION 37
1. The modern economy is not characterized by
capital intensive mode of
production
development of money
economy
self sufficient village system
production for market

1 points   
QUESTION 38
1. Which market structure enjoys stiff competition?
Oligopoly
 Monopoly
Monopolistic
competition
perfect competition

1 points   
QUESTION 39
1. When total utility is maximum, marginal utility is 
0

-
1

1 points   
QUESTION 40
1. The transformation curve is derived from the
Consumption Curve
Utility Possibility
curve
Social welfare
function
production contract
curve
1 points   
QUESTION 41
1. Inflation initiated by the the increase in aggregate demand is termed as
Demand Pull
inflation
Cost push
inflation
Stagflation

1 points   
QUESTION 42
1. In which denomination were India's first bimetallic coins issued in the year 2009.
Rs
10

Rs 5

Rs
20

Rs 2

1 points   
QUESTION 43
1. Short term regular variations related to the calendar or time of day is known as
 Trend
Seasonality
Cycles
Random
Variations
1 points   
QUESTION 44
1. A tax imposed on monopoly profits
can be shifted forward
can be shifted backward
can be shifted both forward and
backward
cannot be shifted

1 points   
QUESTION 45
1. The apex organization of Industrial Fianance in India is
IDBI
SIDB
I
RBI
SBI

1 points   
QUESTION 46
1. The cost incurred by the firm in hiring labour is called is
explicit
cost
implicit
cost
marginal
cost
total cost

1 points   
QUESTION 47
1. From the society’s point of view, the economic function of profits and losses, is to
Promote the equal distribution of real assets
and wealth
Achieve full employment and price level
stability
Contribute to a more equal distribution of
income.
Reallocate resources from less desired to more
desired uses.
1 points   
 QUESTION 48
1. A group of firms that gets together to make price and output decisions is called
Cartel
price leadership
total cost plus
pricing
a concentrated
industry
1 points   
QUESTION 49
1. The demand curve shows the relationship between
quantity demanded
and price

quantity supplied and

price

both of these

1 points   
QUESTION 50
1. Shut down point is one where a firm
cannot cover its variable costs
can cover variable costs and
fixed costs
cannot cover fixed cost
none of the above

1 points   
QUESTION 51
1. Two goods have to be consumed simultaneously are
substitutes
complemen
tary
identical
none of
these
1 points   
QUESTION 52
1. A cause of inflation is
increase in money supply

increase in money supply and fall in

production

fall in production

decrease in money supply and fall in

production
 1 points   
QUESTION 53
1. Other things being equal, what causes a fall in demand
Fall in the price of the
commodity
Rise in the price of the
commodity
Rise in the income of the
substitute
None of the above

1 points   
QUESTION 54
1. Who issues one rupee note in India?
Ministry of
Finance
RBI
SBI
PNB

1 points   
QUESTION 55
1. How many languages are used on a note of Rs.10
1
5

1
3

1
4

1
0

1 points   
QUESTION 56
1. The financial year in India is
April 1 to March 31
January 1 to
December 31
March 1 to April 30
March 16 to March
15
1 points   
QUESTION 57
1. A monopolistically competitive industry has
a small number of large
firms.
 differentiated products
significant barriers to
entry
mutually dependent
firms
1 points   
QUESTION 58
1. Profits in economics is
TR-TC

MR-MC

Both of
these

1 points   
QUESTION 59
1. "In monopoly market, a new firm can enter the industry to earn profit"

 True

 False

4 points   
QUESTION 60
1. Cross elasticity of complementary goods is-
positiv
e
negati
ve
Infinit
y
None

4 points   
QUESTION 61
1. Cartels are formed in monopolistic competition

 True

 False

4 points   
QUESTION 62
1. "If the demand for a good is inelastic, an increase in its price will cause the total
expenditure of the consumers of the good to"
Increase
Decrease
Remains the
same
becomes zero
 4 points   
QUESTION 63
1. The equilibrium level of output for the pure monopolist is where
MR=MC
P<ac<
abel=""></ac<>
MR<mc<
abel=""></mc<>
MR>MC