Question:

Supply curve represents ——– relationship between quantity and price

A.

Direct

B.

Inverse

C.

Either direct or inverse

D.

None of the above

Answer» a. Direct

Question:

A function refers to :

A.

The demand for a commodity

B.

The supply of a commodity

C.

The demand and supply of a commodity service or resource

D.

The relationship between one dependent variable and one or more

Answer» d. The relationship between one dependent variable and one or more

Question:

Which of the following statement is FALSE with regard to marginal utility

A.

marginal utility is the utility derived from last unit

B.

as consumption increases marginal utility goes on diminishing

C.

at saturation point marginal utility is zero

D.

marginal utility increases at a diminishing range

Answer» d. marginal utility increases at a diminishing range

Question:

According to Keynes, saving is:

A.

Private virtue but not social virtue

B.

Private and social virtue

C.

Is neither private virtue nor social virtue

D.

Is either social virtue or private virtue

Answer» a. Private virtue but not social virtue

Question:

Who of the following emphasized the normative aspect of Economics as a science?

A.

The English classical school

B.

Lionel Robbins

C.

The German historical school

D.

None of these.

Answer» c. The German historical school

Question:

Which of the following is irrelevant for rational decision making?

A.

Total variable cost (TVC)

B.

Explicit cost.

C.

Average fixed cost (AFC).

D.

Marginal cost (MC).

Answer» a. Total variable cost (TVC)

Question:

The first economist who coined the terms micro economics and macroeconomics

A.

Ragnar Frisch

B.

Keynes

C.

Marshall

D.

Friedman

Answer» a. Ragnar Frisch

Question:

The subject matter of economics is the study of:

A.

Wealth

B.

Welfare

C.

Scarcity

D.

Scarcity and Choice

Answer» d. Scarcity and Choice

Question:

Which of the following is not a component of Income method to GNP?

A.

Wages and salaries

B.

Interest

C.

Depreciation

D.

Net foreign investment

Answer» c. Depreciation

Question:

An increase in market supply, demand remaining the same causes:

A.

Increase in equilibrium price

B.

Decrease in equilibrium quantity

C.

Decrease in equilibrium price and increase in equilibrium quantity

D.

Both equilibrium price and quantity rises

Answer» c. Decrease in equilibrium price and increase in equilibrium quantity