Fybcom
ELEMENTS OF ECONOMICS THEORY
(EET)
50 MCQS
1. Economics is the study of how we work together to transform____________ resources into goods and services to satisfy the most pressing of our infinite wants and how we ________________these goods and services among
Ourselves.
a) Unlimited, Use
b) Limited, Use
c) Scarce, Distribute
d) None of the above
2. According to JB Say, Economics is...
a) An inquiry into the nature and causes of the wealth of the nations.
b) Science, which deals with wealth.
c) The science of material well-being
d) He actually said nothing about Economics.
3. Indicate the suitable match..
a) Economics is the science of wealth -Adam Smith
b) Economics is the science of material well being -Samuelson
c) Economics is the science of choice making- Marshall
d) Economics is the science of growth and development- Robbins
4. The difference between micro economics and macro economics is...
a) Microeconomics is positive economics while macroeconomics is normative.
b) Microeconomics is classical, pre-Keynesian economics while macroeconomics is modern and .post-
Keynesian.
c) Microeconomics is concerned with the behavior of individual entities like markets, firms
etc. while macroeconomics, with the overall performance of the economy.
d) None of the above.
5. The difference between positive economics (PE) and normative economics (NE) is..
a) PE describes the positive effects of economic decisions while NE describes both positive and negative
effects of economic decisions.
b) NE describes the facts of an economy while PE involves value judgments.
c) NE describes the demand-supply theories of individual markets and firms while PE describes the total
World economy as a whole.
d) PE describes the facts of an economy while NE involves value judgments.
6.Economic goods are goods which:
a) Obey the laws of economics
b) Are tangible
c) Are scarce and limited in supply
d) Are intangible
7. Why do central problems arise?
a) Because of unlimited wants
b) Because of limited means
c) Both a) and b) above
d) None of the above
8. "Economics is what economists do' was stated by:
a) Adam Smith
b) Alfred Marshal
c) Samulelson
d) Jacob Viner
9 Who among the following is the bread butter scientist of economics?
a) Thomas
b) Adam Smith
c)Walker
d) John Ruskin
10. Alfred Marshall is associated with which of the following Works?
a) Competition among the Few
b) Economics of Control
c) The Principles of Economics
d) Capital and Growth
11. A positive statement is:
a) That statement which gives actual information that what is, was or will be, under the given
conditions.
b) That statement which gives factual information that what is, was or will be, under the given conditions.
c)That statement which gives actual information, under the given conditions.
d) None of the above.
12. A Normative statement is
a) That statement which gives factual information that what is, was or will be, under the given conditions
b) It contains value judgement about "what ought to be".
c) lt contains value judgement about 'what not ought to be'.
d) None of the above.
13. Deductive Method is:
a) That method in which we proceed from particular truth.
b) That method in which we proceed from particular myth
c)That method through which on the basis of general truth we try to know by reasoning particular truth.
d) All of the above.
14. Inductive Method is:
a) That method through which on the basis of general truth we try to know by reasoning particular truth.
b) That method in which we proceed from particular myth.
c)That method in which we agreed on a particular myth.
d) The method in which we proceed from particular truth to generate truth on the basis of our experience.
15. Micro-economics is also known as:
a) Product Theory
b) Price Theory
c) Process Theory
d) Projection Theory
16. Which of the following is related to Micro-economics?
a) Inflation in the economy
b) Problem of unemployment
c) Income from the Railways
d) National Income
17. Which form of economics explains economic phenomena according to their causes and effects?
a) positive
b)Normative
c) Empirical
d) Applied
18. Comparative market structure and inequality of wealth are main features of..
a) Mixed Economy
b) Capitalist Economy
c) Socialist Economy
d) None of the above
19. Right of private property is found in:
a) Socialism
b) Mixed Economy
c) Government's Economy
d) Capitalism
20. Compared to other economic systems, national income is more often evenly distributed in a
a) Market Economy.
b) Command Economy.
c)Mixed Economy.
d) Capitalism
21. In which type of economy system is cost benefit analysis used to answer the fundamental question what, how, and for whom to produce?
a) Market economy
b) Command economy
c) Mixed economy
d) Regulated economy
22 Which of the following groups of economists focused primarily on micro-economics?
a) Classical
b) Keynesian
c) Neo-Keynesian
d)Modern
23 Which theory had successfully explained the cause of large-scale unemployment in the 1930s and had formulated effective policy prescriptions?
a) Modern
b) Keynesian
c) Classical
d) Neo-Classical
24. Which model is a set of equations that uses historical data to study the behavior of the economy?
a) Circular Flow of Income
b) Econometric Model
c) Econometric Model
d) Two Sector Model
25. Which of the following helps to determine what goods and services are produced how they are produced, and for whom they are produced in an economy?
a) Cost of production
b) Opportunity cost
c)Price
d) Type of economy
26. In which type of economy do consumers and producers make their choices base on me market forces of demand and supply?
a) Open economy
b) Controlled economy
c) Command economy
d) Market economy
27. in which type of economy can each producer allocate his resources based on the demand?
a) Market economy
b) Command economy
c) Regulated economy
d) Mixed economy
28. Which of the following is NOT a feature of mixed economy?
a) Market forces deciding investment and consumption.
b) Reservation of certain areas for public sector investment.
c)Emphasis on social justice.
d) Strong anti-monopoly legislation.
29. Allocation of resources refer to:
a) What and how much to produce
b) How to produce
c) For whom to produce
d) All of the above
30. Allocation of resources is related to:
a) Micro-economics
b) Macro-economics
c)Development Economics
d) Welfare Economics
31. Fuller Utilization of Resources is related to:
a)Welfare Economics
b) Macro economics
c) Micro economics
d) Development Economics
32. Efficiency in production is related to:
a) Micro economics
b) Macro economics
c) Development
d) Welfare Economics
33. Growth of Resources is related to
a) Welfare Economics
b) Micro economics
c) Macro economics
d) Development Economics
34. Economizing of resources implies:
a) Maximum utilization of the existing resources
b) Minimum utilization of the existing resources
c)Optimum utilization of the existing resources
d) Optimum utilization of the dead resources.
35. Which of the followings can be regarded as the laws of economics?
a) There is direct proportionate change in the price level with a change in the supply of money
b) Marginal propensity to consume shows a fall with an increase in income
c) Both a) and b) above
d) Only b) above
36. Which of the following is not an example of public good?
a) Railway services run by the government.
b) Possession of atom bomb by a country
c) A highway constructed inking two states, which is tool-free.
d) Plantation of trees on both sides of the road.
37. The term Economics is derived from two Greek words ________and ________ meaning the rule or law of the households.
a) Oikou, Nimas
b) Oikou,Nomos
c) Kiyo, Nimas
d) None of the above
38. Macro-economics is concerned with the overall performance of the
a) Society
b) Government
c) Individuals
d) Economy
39. Economics is a study of _____________ in the ordinary business of life- Alfred Marshall
a) Human Welfare
b) Wealth
c) Mankind
d) Agriculture
40. ______is concerned with the behavior' of individual entities.
a) Government
b) Micro-economics
c) Macro-economics
d) Society
41. Economics is the science, which studies human behavior as a relationship between, ______and ______means, which have alternative uses.
a) Human, Inhuman
b) Scarce, Ends
c) Ends, Scarce
d) None of the above
42. Economic goods are goods, which are_______ and __________ in supply.
a) Fantastic, Greater
b) Scarce, Limited
c) Scarce, Abudance
d)None of the above
43. Income from Railways, refer to the ________ approaches from a national angle.
a) Micro
b) Macro
c) Both a) and b) above
d) None of the above
44. In a command economy, all decisions, from ________ , the allocation of resources of the distribution of end products is taken care
a) The Government
b) The producers
c)The cartels formed by the producers
d) Consumer Forums
45 In which type of economic system the Government has no control over price changes?
a) Market economy.
b) Command economy.
c) Mixed economy.
d) Regulated economy.
46. The ultimate aim of a firm, according to Classical School, is..
a) Profit Maximization
b) Sales Maximization
c)Manager's Utility Maximization
d) Maximization of Social Welfare
47. A capitalist economy is:
No comments:
Post a Comment