Economics Quiz - 1

1. Every nation’s resources which are used to produce the quantities of goods and services that would be required to satisfy all its citizen’s wants are
[A]sufficient
[B]insufficient
[C]adequate
[D]complete



2. All the buyers and sellers operating under perfect competition have _______________ knowledge.
[A]Imperfect
[B]Partial
[C]Perfect
[D]Insufficient



3. Inflation reduces the purchasing power of money and savings.
[A]TRUE
[B]FALSE
[C]
[D]



4. Micro-economics is primarily concerned with the problem of what, how and for whom to produce
[A]TRUE
[B]FALSE
[C]
[D]



5. The price policy under monopolistic competition is dependent on the prices charged by other rival firms
[A]TRUE
[B]FALSE
[C]
[D]



6. All firms producing the same or similar product together make
[A]Industry
[B]Company
[C]Organization
[D]Free Market



7. Private profit motive is an essential feature of Capitalism
[A]TRUE
[B]FALSE
[C]
[D]



8. Macro – economics provides an exploration to the functioning of an economy in general.
[A]TRUE
[B]FALSE
[C]
[D]



9. In economics demand means desire backed by adequate ________
[A]ability to pay
[B]selling capacity
[C]purchasing power
[D]willingness



10. Slope of supply curve is _______
[A]Positive
[B]Negative
[C]0
[D]None of the above



11. Costs which increase because of the expansion of a firm are called ______ costs
[A]Decremental
[B]Neutral
[C]Incremental
[D]None of the above



12. Under the monetary measures to control inflation, the R. B. I relies heavily on selective credit controls on bank loans against food grains, sugar, oils, oilseeds, cotton etc so as to discourage
[A]Trading
[B]Speculative hoarding
[C]Storing
[D]Siphoning



13. The supply curve in case of unitary elastic supply is rectangular hyperbola.
[A]TRUE
[B]FALSE
[C]
[D]



14. Under monopoly, there is ________ seller who controls the entire supply in the market.
[A]Only one
[B]Only two
[C]Many
[D]None



15. Under monopsony, there are many sellers and ________ buyer
[A]Only one
[B]Only two
[C]Many
[D]None