Q. Which of the following pairs of commodities is an example of substitutes? Tea and sugar Tea and coffee Pen and ink Shirt and trousers Answer: Tea and coffee
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Q. All but one of the following are assumed to remain the same while drawing an individual’s demand curve for a commodity. Which one is it? A. The preferences of the individual B. His monetary income C. The price of the commodity under consideration D. The prices of other goods Answer: The price of
Q. An economic theory is: A. An axiom B. A proposition C. A hypothesis D. A tested hypothesis Answer: A tested hypothesis
Q. Contraction of demand is the result of: A. Decrease in the number of consumers B. Increase in the price of the commodity concerned C. Increase in the prices of other goods D. Decrease in the income of purchasers Answer: Increase in the price of the commodity concerned
Q. Identify the aspect of taxation which is related to normative economics: A. Incidence of tax B. Effect of tax on the capacity willingness to work C. Equity of tax D. None of the above Answer: Equity of tax
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Q. Formulation of an economic theory involves: A. Statement of various assumptions or postulates B. Logical deductions from the assumptions made C. Testing the hypothesis against empirical evidence D. All of the above Answer: All of the above
Q. Which of the following is Microeconomics concerned with? A. The size of national output B. The levelof employment C. Changes in the general level of prices D. None of the above Answer: None of the above
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Q. If the demand for a commodity is inelastic, an increase in its price will cause the total expenditure of the consumers of the commodity to: A. Remain the same B. Increase C. Decrease D. Any of the above Answer: Increase
Q. Microeconomics deals with the: A. Allocation of resources of the economy as between production of different goods and services B. Determination of prices of goods and services C. Behaviour of industrial decision makers D. All of the above Answer: All of the above
Q. Which is not an essential feature of a socialist economy? A. Social ownership of the means of production B. Freedom of enterprise C. Use of centralized planning D. Government decisions Answer: Freedom of enterprise
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