Question:

The money supply affects the rate of interest; when the money supply increases, rate ofinterest will be decreased. It is explained by _____________

A.

Keynes

B.

Walker

C.

Robbins

D.

Crowther

Answer» a. Keynes

Question:

Cash Money is created by the _________________

A.

Central Bank of a country

B.

Commercial Banks

C.

State Bank of India

D.

Co-operative Banks

Answer» a. Central Bank of a country

Question:

The concept of ‘Consumer Surplus’ was introduced in Economics by

A.

Prof. Robbins

B.

Prof. Samuelson

C.

Prof. Smith

D.

Prof. Marshall

Answer» d. Prof. Marshall

Question:

All the factors of production become variable in the

A.

Short run

B.

long run

C.

very short run 2

D.

very long run

Answer» b. long run

Question:

Point Elasticity was propounded by ________________

A.

Alfred Marshall

B.

Adam Smith

C.

Lionel Robbins

D.

Jacob Viner

Answer» a. Alfred Marshall

Question:

Due to the operation of ‘Laws of return to Scale’ LAC curve is

A.

Rectangular hyperbola

B.

U-Shaped

C.

Parallel to the horizontal axis

D.

Parallel to the vertical axis

Answer» b. U-Shaped

Question:

The Law of Diminishing Marginal Utility was developed by ____________

A.

Stanley Jevons

B.

Alfred Marshall

C.

Adam Smith

D.

J.R. Hicks

Answer» b. Alfred Marshall

Question:

Let a firm employs 10 labourers to produce 150 units of output. If 11 labourers are employed to produce 166 units of output, then the marginal product is

A.

11

B.

16

C.

150

D.

166

Answer» b. 16

Question:

In the case of rare coins, supply curve will be

A.

Horizontal

B.

Vertical

C.

backward bending

D.

positively sloped

Answer» b. Vertical

Question:

__________ is one among the qualitative credit control instruments used by the RBI.

A.

Bank Rate Policy

B.

Moral Suasion

C.

Open Market Operations

D.

Cash Reserve Ratio

Answer» b. Moral Suasion