1. The congress government led by Narsimha Rao announced the New Industrial Policy in July 1991.
[A]TRUE
[B]FALSE
2. The damage being done by the factories at and around Agra to Taj Mahal is an example of social cost for private benefit.
[A]TRUE
[B]FALSE
3. The Defence services are indivisible in the sense that they cannot be priced in the market in order to deprive some members of the society from its use or benefits.
[A]TRUE
[B]FALSE
4. The demand curve has a negative slope.
[A]TRUE
[B]FALSE
5. The demand for life saving drugs is elastic.
[A]TRUE
[B]FALSE
6. The distinction between fixed costs and variable costs is relevant in the short period only.
[A]TRUE
[B]FALSE
7. The divisible goods, whose benefits can be priced, are called pure public goods.
[A]TRUE
[B]FALSE
8. The externalities or economic effects, which flow from the production or use of the goods to other parties or economic units, are termed as 'neighborhood effects.'
[A]TRUE
[B]FALSE
9. The externalities that may be an economic gain or economic losses to other economic units are referred to as technological externalities.
[A]TRUE
[B]FALSE
10. The federal government of U.S.A. does not face the basic economic problem.
[A]TRUE
[B]FALSE
11. The financing of the pure public goods has to be through public expenditure and not through market pricing.
[A]TRUE
[B]FALSE
12. The government also fixes minimum procurement prices for major crops on the recommendation of the Agricultural Prices Commission (APC).
[A]TRUE
[B]FALSE
13. The Joint- sector is a form of partnership between the private sector and the government.
[A]TRUE
[B]FALSE
14. The Keynesian theory emphasizes effective supply as a crucial factor in determining the level of income and employment.
[A]TRUE
[B]FALSE
15. The law of supply is not hypothetical.
[A]TRUE
[B]FALSE
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