Q. Which is not an essential condition for an economic problem to arise? A. Unlimited wants B. Use of money C. Scarcity of resources D. Alternative uses of scarce resources Answer: Use of money
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Q. Who defined Economics as a ‘Science which studies human behaviour as a relationship between ends and means which have alternative uses? A. L. Robbins B. Alfred Marshall C. Joan Robinson D. Paul A. Samuelson Answer: L. Robbins
Q. Which is not a central problem of an economy? A. What to produce B. How to produce C. How to maximize private profit D. For whom to produce Answer: How to maximize private profit
Q. Economic problems arise because: A. Wants are unlimited B. Resources are scarce C. Scarce resources have alternative uses D. All of the above Answer: All of the above
Q. What best explains a shift in market supply curve to the right? A. An advertising campaign is successful in promoting the good B. A new technique makes it cheaper to produce the good C. The government introduces a tax on the good D. The price of raw materials increases Answer: A new technique
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Q. In May 2013, firm was supplying 500kg of sugar of market price of Rs. 30/- per kg. During June 2013, firm’s supply of sugar had decreased to 450kg at price Rs. 20/- per kg. These changes show that supply of sugar is: A. Perfectly elastic B. Perfectly inelastic C. Less elastic D. More elastic
Q. When supply of a commodity increases without change in price it is called: A. Fall in supply B. Expansion in supply C. Contraction in supply D. Rise in supply Answer: Rise in supply
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Q. If elasticity of supply is greater than one. Supply curve will be: A. Horizontal B. Vertical C. Passing through origin D. Touching y-axis Answer: Touching y-axis
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Q. During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to: A. Rightward B. Leftward C. Downward D. Rise in supply Answer: Leftward
Q. An increase in demand would cause supply curve to: A. Shift to the left B. Shift to the right C. Change in slope of supply curve D. No effect on supply Answer: No effect on supply
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