Question:

On the basis of time element, markets can be classified into __________ types.

A.

2

B.

3

C.

4

D.

5

Answer» b. 3

Question:

Opportunity cost is measured in terms of the

A.

optional cost that has been avoided

B.

negative cost that has been sacrificed

C.

accounting cost that has been paid

D.

next best alternative that has been foregone

Answer» d. next best alternative that has been foregone

Question:

Marginal cost is defined as

A.

the change in total cost due to one unit change in output.

B.

the change in total cost due to one unit change in input.

C.

the ratio of total cost to total output

D.

the ratio of total cost to total input

Answer» a. the change in total cost due to one unit change in output.

Question:

The supply curve always slopes ___________

A.

Upwards

B.

Downwards

C.

both (A) and (B)

D.

neither (A) nor (B)

Answer» a. Upwards

Question:

___________ market is the nerve centre of the financial system.

A.

Money

B.

Capital

C.

Local

D.

National

Answer» a. Money

Question:

The primary functions of money are of ______ types.

A.

2

B.

3

C.

4

D.

5

Answer» a. 2

Question:

_____________ is the father of Economics. 9

A.

Adam Smith

B.

Alfred Marshall

C.

Lionel Robbins

D.

J.R. Hicks

Answer» a. Adam Smith

Question:

_________ is the first Law of Consumption.

A.

The Law of Diminishing Marginal Utility

B.

The Law of Demand

C.

The Law of Increasing Returns

D.

All of the above

Answer» a. The Law of Diminishing Marginal Utility

Question:

___________ is a gift of nature.

A.

Land

B.

Labour

C.

Capital

D.

Organisation

Answer» a. Land

Question:

Traditional function of a commercial bank is ______________

A.

issue of gift cheque

B.

credit creation

C.

providing locker facilities

D.

acceptance of deposits

Answer» d. acceptance of deposits