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CHOOSE THE CORRECT OPTION:, , Scope of micro economics,, a) Theory of Product Pricing, b) Theory of Growth and Development, , c) Theory of General Price Level and Inflation, d) Theory of Income and Employment, , Options: 1)nly, , 4)a,c.d, , Staements related to macro economics., , 4It is the study of aggregates, , b) It is based on certain assumptions, c) It takes into account interdependence between aggregate economic variables, , d) It is a policy oriented science, , Options: 1) a, b, c, d, , i., , ., , 2) a, b, c 3) b, c, d, , a, , 2)a, b, c 3) b, c, d, , 4c,d, , Exceptions to the law of diminishing marginal utility., a) Cardinal measurement, , b) Hobbies, c) Miser, , d) Money, Options: 1) Only a 2) a, b, c, , 3b, c, d Aa, c, d, , Criticisms to the law of diminishing marginal utulhty, a) Based on unrealistic assumptions, b), , Not applicable to indivisible and bulky goods, , c) The law is restricted to satisfaction of a single want, d) In reality, cardinal measurement of utility not possibl, , Options: 1) Only a, , 2), , a,, , b,, , c, , 3)b,, , c,, , d, , 4), , a,, , b,, , c,, , d, , Statements that explain Giffen's paradox, a) It is an exception to the law of demand, b) It is applicable to inferior or low quality goods, c) Demand increases when the, , d) It, , was, , identified, , prices of inferior goods fall, , Alfred Marshall, P) a, b, b, c, d 4)a. b,, , by Prof, , Options: 1) Only a, , c,, , d

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irazia, vi., , Statements related, a) It is a type of, b) t, , decrease j demand, changemre, mand, takes place due to unfavourable changes in other factors like tastes, income etc., , c) Price remains constant, d) Demand curve shifts to the right hand side of the original demand curve, Options: 1) a, b, c, d, , vii., , 2)a, b, c 3 c 4 ) a. c. d, , Statements that are incorrect in rdation t perfectly inelastic demand, a) Percentage change in price has ndemct on quantity demanded, b) Co-efficient of elasticity is equal to I (ed=-1), c) Demand curve is a horizontal line parallel to X axis, , d) It is a type of price elasticity of demand, Options: 1) a. b, c, d 2) a. b, e 3) b, c 4) a.b, vii., , Statements that are related to crOSs clasticity of demand, a), , Change in quantity demanded of one commodity due to a change in the price of othe=, , commodity, b) It is a type of elasticity of demand, c), , Itis applicable to complementary goods and substitutes, , d) It is expressed, Options: 1), ix., , a,, , b,, , Ey, d, a, b, y 3) only b, , as, , c,, , 4), , a,, , b, , Statements related to theconcept of stock, a), , t is the total quantity of a commodity available with the seller at a particular point of, ime, , b) By, , increasing production, stock, , can, , be increased., , c) Normally, stock exceeds supply, d) Stock is a flow concept, , Options:, , 1), , a,, , b,, , c,, , d, , 5,.c) only b, , 4)a,b, , Exceptions to the law of supply, a) Constant cost of production, b) Constant technique of production, , c) Does not apply to agricultural goods, d), , No change in weather conditions, , Options: 1) a, b, c, d 2)a, b., xi., , 3) only e)a,b, , Features of Oligopoly market, , a) There, , are, , few firms, , Chat, , or, , sellers, , 10/108

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b) Sellers sell differentiated product, c) There is free entry and exit of firms, d) There is considerable clement of uncertainty in this type of market, , Optionsa b, li., , ab.e 3)b.c., , 4)ad, , Characteristics of Long period market, a) All factors of production and costs are variable, b) Firms are able to adjust all costs, , c) It is for a few years, generally up to five years, d) Supply of commodity cannot be increased, , Options: 1) a, c.d, , a,h.c3b,c. d, , 4)a b, c. d, , Features of Index numbers, , xii., , a) It is useful in framing suitable economic policics, b) It is useful to present financial data in real terms, c)Index numbers are statistical devices, , d) Index numbers are specialized averages, , Options:, KIV., , c. d a.b, , 3)b,, , c., , d, , b, c. d, , 4)a., , Statements related to weighted index number, , a) Suitable weights are assigned to various commodities, b) I gives relative importance to the commodity in the group, c)In most cases, quantities are used as weights, d) Laaspeyre's Price index and Paasche's Price Index are methods of constructing, index number, Options: 1) a, c. d, , 2)a, b, c 3) b, c. d, , a , b, c.d, , Precautions to be taken while estimating national income by Output method, , V., , a), , Only, , valuc of final, , goods and services must be taken, , in, , to account, , are to be deducted, b) Indirect taxes included in the market prices, on certain products must be added, c) Subsidies given by the government, be considered, d) Sale and purchase of second hand goods should, , Options: 1) Only a, , ), , a,, , Practical difficulties in the, , xvi., a), , b,, , c, , 3)b,c,d, , measurement, , 4), , a, c,, , d, , of national income, , legal income, , b) Problem of double counting, c), , Inadequate and unreliable data, , d) Valuation of inventories, , Chat, , 8/108

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Options: 1) a, c2) a, b, c, xvil., , Essential characteristics ofa tax, a) tis a voluntary contribution to the government, , by Every citizen of the country is legally bound to pay the tax imposed upon him, 1s imposed on income. property or commodities or services, )ax, d) The tax payer receives direct and proportionate benefits from the government in return, , for the tax, , Options: 1) a. d 2)b,c 3) b. c. d4)a,c, d, vii., , Non tax revenue sources, , a)Special, assesment, b) Fines and penalties, )Goods nd, , Servicestax, , d) Gitts. granis and donations, , Options)a. b,da,b,e, xx., , 3)b. c. d, , 4)a.c.d, , Structure of organized sector of money market, , a) Reserve Bank of India, b) Commerciai banks, , )Co-operative, banks, d) Indigenous bankers, Optlons: 1), Classification, , a,, , b,, , d)a, b, cb,c.d, , 4), , a,, , c. d, , of Commercial bunks in India, , a) Public sector banks, b) Private sector banks, C), , Foreign banks, , d) Central bank, , Options: 1) Only a a.b, c 3,c.d, xi, , a), b), , 4)a. c.d, , Features of, or ndia's foreign trade, Increasing share in Gross National income, , Composition, , Inerease in volume and value of trade, , CDviOn of labour and specialization, , d) Stability in price evel, , Options: 1) a. d 2)a.b 3) b, c, xui., , Statements incorect in relation, , Chat, , 4) c, d, to, , Balance of Trade, , 7/108

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razia2ae4.d, , vii., , Essential chafacteristics of a tax, , a) hisa voluntary contribution to the government, b) Every citizen of the country is legally bound to pay the tax imposed upon him, is imposed on income, property or commodities or services, d) The tax payer receives direct and proportionate bencfits from the government in return, for the tax, , ) Tax, , Options: I) a, d 2)b,e 3)b, c, d4) a, c, d, vii., , Non tax revenue sourcesS, a) Special assessment, b) Fines and penalties, c) Goods and Services tax, , d) Gifts, grants and donations, , Options)a. b, da b,e, xix., , 3) b. c. d, , 4) a, c, d, , Stnucture of organized sector of money market, , a), b), c), d), , Reserve Bank of India, Commercial banks, Co-operative banks, Indigenous bunkers, , Options: 1) a, b, da,b, c b , c,d, , 4) a, c, d, , Classification of Commercial banks in India, a) Public sector banks, b) Private sector banks, , c) Foreign banks, d) Central bank, , Options: 1) Only a a. b,c 36,c.d, Xxi., , 4)a, c, d, , Features of Compositioor India's foreign trade, a) Increasing share in Gross National income, b), , Increase in volume and value of trade, , c) Division of labour and, , specialization, , d) Stability in price level, , Options: 1) a. d 2)a, b, , «xi., , Statements incorrect in relation to Balance of Trade, , Chat, , 7/108

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E/12/moinuddin khan, It is also refered to as international trade balance, , Trade surplus arises when export value is greater than import value, Trade deficit takes place when import value is greater than export value, Balance of trade includes value of imports and exports of visible goods only, , Optiong 1) Only d) 2) Only, , a, , 3)b, c, d, , 4) a, b, c, , omplete the Correlation., icroeconomics: Mikros, , ::Macro economics:, , eneral equilibrium: macro economics, , Toys made of clay:, , : micro economics, , :: Woollen clothes: place utility, , Aggregate utility from all units consumed: Total utility:: Additional utility from last unit -, , umed:, , emand curve:, , Supply curve: upward, , ::, , Tea and coffee:, Electricity: composite demand, Relatively elastic demand: Ed> I:: Relatively inelastic demand :, Steeper demand curve : Relatively inelastic demand:: Flatter demand curve:, , Total cost: TFC + TVC : Average cost, , xpansion of supply: Price rises :: Contraction of supply:, , Perfect, , competition:, , Free entry and exit, , Monopoly: Price discrimination::, , LBase year price, Laaspeyre's, , :, , ::, , :, , barriers, , to, , entry, , product differentiation, , P : Current year price, , index:, , :Paasche's Index : Current year quantities, :C+I+G+ (X- M): :GNP:C+ 1+G+X-M +(R-P), Output method:, , :, , Income method : Factor cost method, , :Protection from external attacks, , ::, , Optional function, , ) Income tax: Direct tax : GST:, , :, , Provision of social securit, , :Commercial bank: Credit control: Central bank, , Pria adaew issues launched to raise capital, e, , Chat, , :, , Old, , issue, , ck, , 8/108