Question:

Gresham’s Law is true where

A.

only Barter System operates

B.

only Paper Currency operates

C.

only Metal Currency operates

D.

Both Paper and Metal Currencies operates

Answer» d. Both Paper and Metal Currencies operates

Question:

The ‘Law of Variable Proportion’ was first developed by

A.

Prof. Mill

B.

Prof. Marshall

C.

Prof. Ricardo

D.

Prof. Smith

Answer» b. Prof. Marshall

Question:

______ means the desire backed by the necessary purchasing power.

A.

Consumption

B.

Production

C.

Investment

D.

Demand

Answer» d. Demand

Question:

________ means transformation of physical inputs into output.

A.

Marketing

B.

Production

C.

Finance

D.

Money

Answer» b. Production

Question:

When two or more different goods are produced together by a single firm, it is called as_________ supply.

A.

joint

B.

composite

C.

excess

D.

short

Answer» a. joint

Question:

Quantity Theory of Money was explained by ___________

A.

Fisher

B.

Keynes

C.

Crowther

D.

Samuelson

Answer» a. Fisher

Question:

The relationship between money supply and price level is

A.

Inverse

B.

Neutral

C.

Proportional

D.

non-proportional

Answer» c. Proportional

Question:

The ‘Welfare definition’ of Economics was introduced by ______________

A.

Adam Smith

B.

Alfred Marshall

C.

Lionel Robbins

D.

J. R. Hicks

Answer» b. Alfred Marshall

Question:

If a firm produces 200 units of commodity X by employing 10 workers and 240 units of thesame commodity by employing 12 workers, then the Average Product of the worker is

A.

20

B.

40

C.

200

D.

240

Answer» a. 20

Question:

In the case of inferior goods, the consumer

A.

purchases less with increase in income

B.

purchases less with decrease in price

C.

purchases more with increase in income

D.

purchases more with decrease in price

Answer» a. purchases less with increase in income