Question:

Capital in economics means

A.

Factor of production

B.

Fund brought in by the entrepreneur

C.

Investment in shares, bank deposits

D.

All the above

Answer» a. Factor of production

Question:

If GDP exceeds GNP the possible reasons could be

A.

Foreigners are earning more in India than Indians are earning in foreign countries

B.

High incidence of plant and machinery wear out

C.

Indian are earning more in foreign countries than foreigners earnings in India

D.

None

Answer» a. Foreigners are earning more in India than Indians are earning in foreign countries

Question:

The basic assumption of an economic analysis is/ are

A.

Cetris paribus

B.

Rational behavior

C.

Both

D.

None

Answer» c. Both

Question:

In a competitive market ………. is the price maker

A.

Firm

B.

Industry

C.

Consumer

D.

Trade association

Answer» b. Industry

Question:

Which of these is an example of a transfer payment?

A.

Profit

B.

Retirement pension

C.

Rent

D.

Transportation and freight charges

Answer» b. Retirement pension

Question:

……………… is an index of price change for goods and services included in GDP

A.

Price index

B.

Sensex

C.

GDP deflator

D.

None

Answer» c. GDP deflator

Question:

In a closed economy

A.

GDP=GNP

B.

GDP>GNP

C.

GDP<GNP

D.

All the three are possible

Answer» a. GDP=GNP

Question:

If the country is passing through recession, the RBI would

A.

Buy bonds

B.

Reduce CRR

C.

Ease out bank rate

D.

All or any of the above three

Answer» d. All or any of the above three

Question:

In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to

A.

Price discrimination

B.

Cost effectiveness

C.

Banned entry of new firms

D.

Sales promotion

Answer» c. Banned entry of new firms

Question:

Which of the following function does money serve when used to purchase or sell different goods andservices?

A.

Store of value

B.

Medium of exchange

C.

Standard of value

D.

Display of power

Answer» b. Medium of exchange