Objective type questions and answers on Budget
1. Macro economics
(a) Behaviour of
individual economic units
(b) Price theory
of goods
(c) Allocation of
resources
(d) Aggregates of
the whole economy.
2. Micro economics
(a) Individual
economic units
(b) Price
determination of goods
(c) Equilibrium
of a consumer and producer
(d) all of the
above.
3. Production
(a) Creating
goods and services
(b) Using up of
goods and services for direct satisfaction
(c) addition to
the existing capital stock of an economy.
(d) Goods resold
in the market.
4. Consumption
(a) creating
goods a services
(b) addition to
the existing capital stock of an economy
(c) utilising
gods and services for direct satisfaction.
(d) goods resold
in the market.
5. Capital formation
(a) surplus of
production over consumption
(b) goods resold
in the market
(c) creating
goods and services
(d) addition to
the existing capital stock of an economy.
6. Resources of an economy
(a) Land
(b) Labour
(c) Capital
(d)
Entrepreneurship
(e) All of the
above.
7. Economic problem occurs due to
(a) Unlimited
wants
(b) Unlimited
resources
(c) Limited wants
(d) Alternative
use of resources.
8. Problem of Allocation of resources
(a) What to
produce
(b) Problem of
economic growth
(c) Problem of
optimum utilisation of resources.
9. Shape of PPC is
(a) Concave to
the origin
(b) Course to the
origin
(c) Upward rising
from origin
(d) all of the
above
10. Increasing MOC/MRT implies
(a) Concavity of
PPC
(b) Consecity of
PPC
(c) Straight line
PPC
(d) None of the
above
11. Reason for increasing MOC/MRT
(a) Law of
diminishing returns/increasing costs
(b) Law of
variable proportions
(c) Law of
increasing returns/deminishing costs.
(d) None of the
above.
12. Massive unemployment is indicated by
(a) Left ward
shift in PPC
(b) rightward
shift in PPC
(c)
under-utilisation of resources by a point inside PPC
(d)
Over-utilisation of resources.
ANSWER KEY
1. (a)
2. (d)
3. (a)
4. (c)
5. (d)
6. (e)
7. (a)
8. (a)
9. (a)
10. (a)
11. (a)
12. (c)
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