F.Y B.COM
SEMESTER - I
MID SEMESTER EXAMINATION
ELEMENTS OF ECONOMICS THEORY
(EET)
MCQS - 102
(A) Marshall
(B) Robbins
(C) Samuelson
(D) Hicks and Allen
(2) "An Inquiry into the Nature and Causes of wealth of Nations"by Adam Smith's was published in _______the year
(A) 1876
(B) 1676
(C) 1767
(D) 1776
(3) In order to have value in exchange, a good must possess the attributes _______
(A) Utility only
(B) Utility and Scarcity
(C) Utility and Transferability
(D) Utility, Scarcity and Transferability
(4) Price mechanism is a feature of _______
(A) Capitalist economy
(B) Mixed economy
(C) Socialist economy
(D) Collectivist economy
(5) Purchasing Power of one commodity in terms of another commodity is known as _______
(A) Value in use
(B) Value in Exchange
(C) Utility of the good
(D) Price of the good
(6) Goods that are common to all & are collectively owned by society are called _______
(A) Social goods
(B) Intermediary goods
(C) Consumer goods
(D) Luxury goods
(7) Which of the fallowing statements is false for Micro Economics as a discipline?
(A) it studies individual firms and industries
(B) It looks at the economy through microscope
(C) It studies the totality of behavior of all units in an economy
(D) Both (a) and (b)
(8) In a free enterprise economy the basic economic problems are solved by ______
(A) Planning Commission
(B) Price Mechanism
(C) The elected representatives of people
(D) Government
(9) Winch of these is not a basic assumption of economic theory?
(A) Prices of goods remain constant
(B) Economics takes into account the limitations imposed by nature
(C) Human behavior is rational
(D) Consumers and producers operate within given social and economic institutions
(10) When a disturbance from equilibrium position evokes further disturbance so that the original position is never restored, it is a case of _______
(A) Neutral equilibrium
(B) Stable equilibrium
(C) Partial equilibrium
(D) Unstable equilibrium
(11) When Economic variables are studied with reference to time the method of analysis is _______
(A) Economic Static
(B) General Equilibrium analysis
(C) Comparative Static
(D) Economic Dynamics
(12) Alternative uses of resources imply _______
(A) Resources can be put to limited uses
(B) Resources can be put to many uses
(C) Application of resources to one use prevents application to other uses
(D) Resources are limited
(13) Application of the knowledge of economics to solve the problems of business firms is subject matter of the discipline of _______
(A) Micro economics
(B) Macro economics
(C) Business economics
(D) Price mechanism
(14) When human wants are directly satisfied with the contribution of a professional it is the case of _______
(A) Form utility
(B) Place utility
(C) Service utility
(D) Time utility
(15) The fundamental problem faced by an economy is one of __________
(A) Exchange
(B) Decision Making by the government
(C) Economic Welfare
(D) Scarcity of resources & multiplicity of wants
(16) The author of the "Wealth of Nation" was ________
(A) Adam Smith
(B) Marshall
(C) Ricardo
(D) Robbins
(17) The economic problem of how to produce refers to the decision ______
(A) Who should be given the authority to-produce goods and services
(B) How many people in the population are to be employed
(C) How much of current production should go towards consumption rather than saving
(D) Which of the production techniques is to be used
(18) Value expressed in terms of money is called ___________
(A) Price
(B) Utility
(C) Satisfaction
(D) Cost
(19) Adam Smith gave the definition of economics in the ___________ year?
(A) 1576
(B) 1776
(C) 1976
(D) 1876
(20) A motor car for a busy doctor is a _________
(A) Necessary good
(B) Comfort good
(C) Luxurious good
(D) Unnecessary good
(21) In which type of economy price mechanism is the most appropriate?
(A) Mixed
(B) Socialist
(C) Collectivist
(D) Capitalist
(22) A lawyers ability is not wealth because it does not possess __________
(A) Transferability
(B) Utility
(C) Scarcity
(D) None of the above
(23) Scarcity exists in the every society because there are __________
(A) Limited wants and abundant resources
(B) Limited resources and unlimited production Possibilities
(C) Limited resources and unlimited wants
(D) Limited production capabilities and unlimited quantity of economic resources
(24) By cooking food the cook creates _________ utility.
(A) Time
(B) Place
(C) Form
(D) Both (b) and (c)
(25) Diamonds have a very high _________
(A) Value in use
(B) Value in exchange
(C) Utility
(D) Both (a) and (b)
(26) Which of the following is a study of individual economic unit?
(A) Public Finance
(B) Macro economics
(C) International economics
(D) Micro economics
(27) Goods used for further production are called _______
(A) Producers goods
(B) Goods of first order
(C) Consumer goods
(D) Necessary goods
(28) Which of these is not a basic assumption of economic theory?
(A) Price of goods remain constant
(B) Economics takes into account the limitation imposed by nature
(C) Human behavior is rational
(D) Consumers and producers operate within given social and economic institution
(29) When the object on which forces are acting after having been disturbed, tends to resume its original position it is a case of __________
(A) Stable equilibrium
(B) Neutral equilibrium
(C) Unstable equilibrium
(D) Partial equilibrium
(30) Which of the following is not a part of Macro Economic theory?
(A) Theory of general price level
(B) Theory of economic growth
(C) Theory of income and employment
(D) Theory of production and cost
(31) The application of economics to business decision making is called _______
(A) Micro economics
(B) Macro economics
(C) Business economics
(D) Price mechanism
(32) What to produce, how to produce and for whom to produce can be decided on basis of ________
(A) Price mechanism
(B) Business economics
(C) Luxuries
(D)Managerial economics
(33) Which of the following pairs of goods is an examples of substitutes?
(A) Shirt and Trousers
(B) Tea and Coffee
(C) Pen and Ink
(D) Tea and Sugar
(34) An Essay on 'The nature and significance of Economic Science' was wrriten by ___________
(A) A. Marshall
(B) Adam Smith
(C) Samuelson
(D) L.Robbins
(35) The author of the "Wealth of Nation" was _____________
(A) Ricardo
(B) Marshall
(C) Adam Smith
(D) Robbins
(36) Sand on the sea-shore is not wealth because it does not possess _________
(A) Scarcity
(B) Utility
(C) Transferability
(D) Value
(37) By cooking food the cook creates ____________ Utility.
(A) Form
(B) Time
(C) Place
(D) Service
(38) The supply of land is perfectly _______
(A) Limited
(B) Variable
(C) Elastic
(D) Unlimited
(39) The assumption of __________ implies consistency in the consumer's taste and preferences.
(A) Social
(B) Physical structure
(C) Institutional
(D) Rationality
(40) Application of the knowledge of economics to solve the problems of business firms is the subject matter of
the discipline of _________
(A) Micro economics
(B) macro economics
(C) Business economics
(D) laws of economics
(41) The fundamental problems faced by an economy is one of __________
(A) Exchange
(B) Decision making by the government
(C) Economic welfare
(D) Scarcity of resources & multiplicity' of wants
(42) Value expressed in terms of money is ______
(A) Utility
(B) Price
(C) Cost
(D) Satisfaction
(43) Utility of a commodity refers to _______
(A) The satisfaction, derived by the consumers from its use
(B) its want satisfying power
(C) The price to be paid by the consumer for its use
(D) The price determined by the forces of supply and demand
(44) Production is defined as _________
(A) Production oà new commodity
(B) Creation of utility
(C) Physical production of goods
(D) Tilling of soil
(45) The branch of economic theory that deals with the problem of allocation of resources is ________
(A) Econometrics
(B) Macro-economics theory
(C) Micro-economic theory
(D) Business-economic
(46) Statement (i): Human behavior is a rational.
Statement(ii): Consumers and producers operate within given social and economic institution.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement(i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false
(47) The characteristic/s of human wants is/are
(A) Recurring
(B) Complementary
(C) Competitive
(D) All of the above
(48) The problem of scarcity __________
(A) Exists because of limited resources
(B) Arises only in poor countries
(C) Will eventually be completely removed
(D) Exists because the prices of goods are two low
(49) When a re-allocation of resources between sectors increases the output of some sectors without reducing the output of the remaining sectors, _________ is said to have Been achieved.
(A) Functional distribution
(B) Distributive efficiency
(C) Productive efficiency
(D) Equal allocation
(50) In ___________ equilibrium forces do not get sufficient time to bring about complete adjustment.
(A) Short run
(B) Long run
(C) Both a and b
(D) None of the above
(51) According to Spencer and Siegelman, Business Economics is the integration of economics theory with business practice for the purpose of facilitating____________.
(A) Forward and backward linkages
(B) Decision making & forward planning
(C) Monetary policy formulation
(D) Central planning of the economy
(52) State of Equilibrium can be illustrated by _______
(A) The peak point of supply curve
(B) The point of lowest price
(C) The lowest point of demand curve
(D) The intersection of Demand and Supply Curve
(53) If the price of a commodity is distributed due to some external forces and after having been distributed tends to resume its original positions, it is a case of _______ equilibrium
(A) Short run equilibrium
(B) Unstable
(C) Stable
(D) Neutral
(54) Which of the following is an example of Durable Goods?
(A) Refrigerator
(B) Eggs
(C) Talk time in mobile phone
(D) Toothpaste
(55) Transformation of a wooden log into a piece of furniture is a case of creation of _______
(A) Form utility
(B) Place utility
(C) Time utility
(D) Service
(56) The type of behavior assumed in economics from an individual is
(A) Irrational
(B) Rational
(C) Indifferent
(D) Emotional
(57) Diamonds have ___________
(A) High value in exchange
(B) High value in use as well as in exchange
(C) High value in use exchange
(D) High value in use and low value in
exchange
(58) Storing a commodity and selling it at a time of scarcity is a case of __________ utility.
(A) Form
(B) Place
(C) Time
(D) Negative
(59) For efficient accomplishment of price signaling ________ is needed.
(A) Stable monetary policy
(B) Government intervention
(C) Stable trade policy
(D) Stable fiscal policy
(60) A house maker cooking for his family ______________
(A) Is an economic activity
(B) Has a price tag
(C) Is a wasteful activity
(D) Is a non-economic activity
(61) Which of these is/are the attribute/s of wealth
(A) Possesses utility
(B) Scarce
(C) Transferable
(D) All of the above
(62) Marshall's idea on the study of economics was mainly as
(A) Science of material welfare
(B) Science of scarcity
(C) Science of wealth
(D) All of the above
(63) In the Robbins definition of Economics, the term 'end' refers to
(A) End of production process
(B) Human wants
(C) Scarcity of resources
(D) End use of Alterative resources
(64) 'Wealth of Nations' was written by
(A) Lionel Robbins
(B) Adam Smith
(C) Keynes
(D) Robert Lucas
(65) Which of these is not a basic economic problem?
(A) For whom to produce
(B) High population
(C) What to produce
(D) How to produce
(66) Capital goods are also known as ___________
(A) Second order goods
(B) Producers goods
(C) Produced factor of production
(D) All of the above
(67) "Economics is what Economists do" is a definition of economics given by
(A) Ely
(B) Friedman
(C) Adam Smith
(D) Jacob Viner
(68) Any point on the PPC signifies
(A) Full utilization of resources
(B) Equal production of two goods
(C) Equilibrium point
(D) None of the above
(69) Assertion (A) - Prices of the crucial role in determining an efficient distribution of resources.
Assertion (B) - Price acts as a signals for shortages and surpluses which help firms to respond to changing market conditions.
(A) Only A is true
(B) Only B is true
(C) Both A and B are true
(D) Neither of them is true
(70) Wealth is ________ where, income is _________
(A) a flow, a stock
(B) Money, an asset
(C) a stock, a flow
(D) The yield, the source
(71) Which of the following statements is correct?
(A) Analysis excludes the time element
(B) The static method is much difficult
and complex to work out than dynamic
method
(C) Static analysis excludes the time
element
(D) States method applies to
microeconomics while dynamic
method relates to Macro-economics
(72) The service of a doctor to his patient is a _________
(A) Material good
(B) Capital good
(C) Non-material good
(D) Social service
(73) In free market the price of a commodity is determined by _______
(A) Supply and demand
(B) Supply
(C) Demand
(D) Government
(74) Economic growth is best depicted by
(A) Upward movement on the given PPC
(B) Outward shift of PPC
(C) Inward Shift in PPC
(D) Downward movement on the given
PPC
(75) The most common shape of the PPC is ____________
(A) Downward sloping straight line
(B) Downward sloping convex to the
origin
(C) Downward sloping concave to the
origin
(D) Upward sloping
(76) Which of the following is NOT true of Business Economics?
(A) It is Practical in its outlook
(B) It is a Positive Economics
(C) It uses knowledge of Macro
Economics for better decision making
(D) It is Micro Economic in nature
(77) Statement (i) : Economic laws are essentially hypothetical and inexact.
Statement (ii): Economics laws are as exact as the laws of physical science.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement (i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false.
(78) Statement (i) : Efficiency of labor does not depend upon climatic and racial conditions.
Statement (ii) : Labor is inseparable from the laborer.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement (i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false.
(79) Statement (i) : Land is of infinite variety.
Statement (ii) : Land can be destroyed by man.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement (i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false.
(80) Statement (i) : All economics goods have ethical significance.
Statement (ii) : Economics goods possess Utility, Scarcity and transferability.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement (i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false.
(81) Statement (i) : Wealth is fund and income is flow.
Statement (ii) : Increase in wealth does not necessarily mean an increase in welfare.
(A) Statement (i) is true & statement (ii) is false
(B) Statement (i) is false & statement (ii) is true
(C) Both statement (i) & statement (ii) are true
(D) Both statement (i) & statement (ii) are false.
(82) Which of the following statements is/are not true about the scarcity definition?
(i) Economics is neutral as regards to end
(ii) Economics is study of wealth.
(iii) Economics is a science of choice.
(A) Only (i) above
(B) Only (ii) above
(C) Only (iii) above
(D) Both (i) & (ii)
(83) Which of the following Statement is/are true about macro economics?
(i) The study of the economic behavior of the individual decision making units.
(ii) The study of aggregate economic activity.
(iii) The study of national income, total employment & growth.
(A) Only (i) above
(B) Both (ii) & (iii) above
(C) Only (iii) above
(D) All (i), (ii) & (iii) above
(84) By making a table, a carpenter
creates:
(A) Form utility
(B) Place utility
(C) Service utility
(D) None of these
(85) The goods which satisfy human
wants directly are called:
(A) Consumer's goods
(B) Producers' goods
(C) Public goods
(D) Intermediate goods
(86) A book "The Nature and
significance of Economic Science" is
written by:
(A) Alfred Marshal
(B) Lionel Robbins
(C) Samuelson
(D) Adam Smith
(87) Welfare definition of Economics
was given by:
(A) Adam Smith
(B) Alfred Marshall
(C) Lionel Robbins
(D) Samuelson
(88) The desire to have a commodity
or service is called:
(A) Want
(B) Utility
(C) Goods
(D) None of these
(89) The satisfaction of human want is called :
(A) Consumption
(B) Production
(C) Distribution
(D) None of these
(90) Health is not wealth because is has no:
(A) Scarcity
(B) Utility
(C) Marketability
(D) None of these
(91) Motor car for a busy doctor is a :
(A) Necessary
(B) Comfort
(C) Luxury
(D) None of these
(92) When marginal utility diminishes, total utility:
(A) Diminishes
(B) Increases
(C) Remains constant
(D) Increases at a Diminishing rate
(93) "Change in demand" occurs due to the change in :
(A) Income
(B) Price of related goods
(C) Taste and Preference
(D) All of these
(94) Which theory had successfully explained the cause of large-scale unemployment in the 1930s and had formulated effective policy prescriptions?
(A) Neo-Classical
(B) Modern
(C) Keynesian
(D) Classical
(95) Which model is a set of equations that uses historical data to study the behaviour of the economy?
(A) Circular Flow of Income
(B) Econometric Model
(C) Two Sector Model
(D) Econometric Model
(96) In which type of economy do consumers and producers make their choices base on me market forces of demand and supply?
(A) Open economy
(B) Controlled economy
(C) Command economy
(D) Market economy
(97) In which type of economy can each producer allocate his resources based on the demand?
(A) Market economy
(B) Command economy
(C) Regulated economy
(D) Mixed economy
(98) Allocation of resources refer to:
(A) What and how much to procure
(B) How to produce
(C) For whom to produce
(D) All of the above
(99) Allocation of resources is related to:
(A) Macro-economics
(B) Micro-economics
(C) Development Economics
(D) Welfare Economics
(100) Efficiency in production is related to:
(A) Macro economics
(B) Micro economics
(C) Development Economics
(D) Welfare Economics
(101) Growth of Resources is related to:
(A) Welfare Economics
(B) Micro economics
(C) Macro economics
(D) Development Economics
(102) Economizing of resources implies:
(A) Maximum utilization of the existing resources
(B) Minimum utilization of the existing resources
(C) Optimum utilization of the existing resources
(D) Optimum utilization of the dead resources.
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