Practice Quiz set 1 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Production function refers to the functional relationship between input and ___.
(a)
(b)
(c)
(d)
The Production function expresses a functional relationship amidst quantities of raw materials and goods.
It is the name given to the relationship between rates of input of productive services and the rate of output of product.
Q-2) If the average revenue is a horizontal straight line, marginal revenue will be
(a)
(b)
(c)
(d)
The price of a good is also known as the Average Revenue of the firm. Average Revenue (AR) or Price and Marginal Revenue (MR) are identical.
When the former is constant, the latter is also constant. Moreover, the Average Revenue curve of a firm is the same as the individual demand curve.
Hence, the competitive demand curve is a horizontal straight line parallel to the OX axis.
Q-3) Cross elasticity of demand between petrol and car is
(a)
(b)
(c)
(d)
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good.
It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in the price of the second good.
For example, if, in response to a 10% increase in the price of fuel, the demand for new cars that are fuel inefficient decreased by 20%, the cross elasticity of demand would be -2.
A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
Q-4) Who is called the Father of Economics?
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(b)
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Adam Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776).
The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith is cited as the father of modern economics and is still among the most influential thinkers in the field of economics today.
Q-5) Which one of the following is having elastic demand ?
(a)
(b)
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In economics, the demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables. The demand for those goods having more than one use is said to be elastic.
Electricity can be used for a number of purposes like heating, lighting, cooking, cooling etc.
If the electricity bill increases people utilize electricity for certain important urgent purposes and if the bill falls people use electricity for a number of other unimportant uses. Thus the demand for electricity is elastic.
Q-6) A ‘Market Economy’ is one which
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(b)
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A market economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country’s individual citizens and businesses.
There is little government intervention or central planning. The United States is the world’s premier market economy.
Q-7) The term utility means
(a)
(b)
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(d)
In economics, ‘Utility,’ refers to the total satisfaction received from consuming a good or service.
It is usually applied by economists in such constructs as the indifference curve, which plots the combination of commodities that an individual or a society would accept to maintain a given level of satisfaction.
Q-8) Division of labour is the result of
(a)
(b)
(c)
(d)
Division of Labor is the “specialization” of cooperative labour in specific, circumscribed tasks and like roles.
It is a process whereby the production process is broken down into a sequence of stages and workers are assigned to particular stages.
Q-9) All of the goods which are scarce and limited in supply are called
(a)
(b)
(c)
(d)
In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility.
An economic good is a consumable item that is useful to people but scarce in relation to its demand so that human effort is required to obtain it.
In contrast, free goods (such as air) are naturally in abundant supply and need no conscious effort to obtain them.
Q-10) Knowledge, technical skill, education etc. in economics, are regarded as
(a)
(b)
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Human capital is the stock of competencies, knowledge, social and personality attributes, including creativity, embodied in the ability to perform labour so as to produce economic value.
It is an aggregate economic view of the human being acting within economies, which is an attempt to capture the social, biological, cultural and psychological complexity as they interact in explicit and/or economic transactions.