Economics Quiz - 12

1. Inflation means
[A]It is a phenomenon of rising prices
[B]It is a general and dynamic phenomenon
[C]It includes an excess of demand
[D]All of the above



2. Proprietary firm is not
[A]Owned by a single person
[B]Easy to form
[C]An organization of single person
[D]Having limited liability



3. The study of the working and allocation of resources in the free market economies is the topic in the
[A]theory of production
[B]theory of supply
[C]theory of consumption
[D]theory of price



4. In case of a joint stock company, the liability of share holders is
[A]Limited
[B]Unlimited
[C]No liability
[D]All of the above



5. Gross profit is the excess of total revenue of a firm over total
[A]Price
[B]Cost
[C]Expenditure
[D]Production



6. Managerial economics deals with
[A]Integration of economic theory with business practice
[B]Using logic of economics, mathematics & statistics
[C]The use of economic modes of thought to analyze business solution
[D]All of the above



7. Goods produced on small scale of supply is
[A]Elastic
[B]Zero elastic
[C]Inelastic
[D]None of the above



8. Features of monopolistic Competition
[A]Fairly Large number of firms
[B]Product differentiation
[C]A & B
[D]None of the above



9. In the words of Prof. Samuelson, “inflation occurs when the ________ of prices and cost is rising”.
[A]General level
[B]Sepcific level
[C]level
[D]phenomenon



10. The demand curve is graphical representation of a demand schedule and it slopes ________ from left to right.
[A]Horizontal
[B]Downward
[C]Upward
[D]Vertical



11. The rate of interest, according to Keynes, depends upon two factors: (i) ________ and (ii) the quantity of money
[A]the credit preference function
[B]Inflation
[C]the liquidity preference function
[D]Cost of capital



12. The basic difference between imperative and indicative planning is that ?
[A] it is easier to achieve targets in imperative type of planning
[B] in the case of imperative planning, all economic activities belong to public sector, while in the other type they belong to the private sector.
[C] in the case of the imperative planning, the market mechanism is entirely replaced by a command hierarchy, while in the case of indicative planning, it is looked upon as a way to improve the functioning of the market system
[D] in the case of indicative planning, there is no need to nationalize any industry



13. The principal reason why national economic planning is still being pursued in spite of embracing a market economy since 1991 is that
[A] The vast quantity of capital already deployed in the public sector needs to be nurtured.
[B] The market economy is mainly confined to industry and commerce, and central planning in agriculture is necessary.
[C] It is a constitutional requirement.
[D] Five Year Plans can continue to provide a long-term perspective to the economy in market friendly fashions.



14. Rural Development Programmes are related to
[A] Self employment
[B] giving jobs to the poorer graduates
[C] poverty alleviation in states
[D] None of these



15. When was the Cooperative Societies Act first passed in India?
[A]1900
[B]1902
[C]1904
[D]1906