Question:

Production creates _________ utility.

A.

Place

B.

Time

C.

Form

D.

Possession

Answer» c. Form

Question:

According to the ‘Law of Demand, demand varies ________ with price.

A.

Directly

B.

Indirectly

C.

Proportionately

D.

Inversely

Answer» d. Inversely

Question:

On the basis of area, markets are classified into _________ types.

A.

2

B.

3

C.

4

D.

5

Answer» b. 3

Question:

“Money is what money does”. This definition was given by __________

A.

Adam Smith

B.

Walker

C.

Robbins

D.

Robertson

Answer» b. Walker

Question:

The rate at which the commercial banks borrow from the Reserve Bank of India is called as

A.

REPO

B.

PLR

C.

BPLR

D.

Bank rate

Answer» d. Bank rate

Question:

The ____ states that bad money drives good money out of circulation.

A.

Law of Demand

B.

Law of Supply

C.

Gresham’s Law

D.

Demand Schedule

Answer» c. Gresham’s Law

Question:

In the long run, a firm in perfect competition earns _____________

A.

normal profit only

B.

abnormal profit

C.

average profit of past 5 years

D.

12.33 per cent profit on capital employed

Answer» a. normal profit only

Question:

Which one of the following functions of commercial banks include collection of cheques,drafts, bill of exchange etc. of their customers from other banks?

A.

Agency Function

B.

Creation of Credit

C.

Payment of Loans and Advances

D.

General Utility Function

Answer» a. Agency Function

Question:

Micro-economics deals with the ___________

A.

economic behavior of the individual

B.

economy as a whole

C.

trade relations

D.

economic growth of the society

Answer» a. economic behavior of the individual

Question:

The total ___________ curve will be a horizontal line.

A.

Variable cost

B.

Fixed cost

C.

Marginal cost

D.

Cost

Answer» b. Fixed cost