Question:

If MPC = 4/5, then value of the multiplier is:

A.

20

B.

5

C.

0.80

D.

1.25

Answer» b. 5

Question:

For a giffen good, when price falls

A.

demand increases at a faster rate

B.

demand decreases

C.

demand remains constant

D.

demand curve has a negative slope

Answer» b. demand decreases

Question:

If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:

A.

Rs. 93.75.

B.

Rs. 97.78.

C.

Rs. 750.

D.

Rs. 880.

Answer» c. Rs. 750.

Question:

The word ‘Micro Economics and Macro Economics’ were first coined by

A.

adamsmith

B.

ragnar frisch

C.

alfred marshall

D.

lord robbins

Answer» b. ragnar frisch

Question:

Which of the following is Keynesian saving function?

A.

S = f(i)

B.

S = f(P)

C.

S = f (Y)

D.

S = f (W)

Answer» c. S = f (Y)

Question:

Net investment is also known as

A.

Depreciation

B.

Induced investment

C.

Autonomous investment

D.

Capital formation

Answer» d. Capital formation

Question:

Market economy is also known as:

A.

Socialist economy

B.

Capitalist economy

C.

Mixed economy

D.

Developing economy

Answer» b. Capitalist economy

Question:

Production possibilities curve does not show:

A.

What to produce

B.

How to produce

C.

For whom to produce

D.

Productive potential under conditions of underemployment

Answer» d. Productive potential under conditions of underemployment

Question:

Marshalian cardinal utility analysis assumes

A.

marginal utility of money is zero

B.

marginal utility of money is decreasing

C.

marginal utility of money is increasing

D.

marginal utility of money is constant

Answer» d. marginal utility of money is constant

Question:

The problem of scarcity and choice making can be depicted using the tool of ___ curve.

A.

Demand

B.

Isoquant

C.

Indifference

D.

Production possibility

Answer» d. Production possibility