Test 2 Economics & BCK-R2 (Que)
Test 2 Economics & BCK-R2 (Que)
Test 2 Economics & BCK-R2 (Que)
NAME : _______________________
ROLL NO. : ___________
DATE : ___________
INSTRUCTIONS
General:
(i) Marking: +1 for correct answer & -0.25 for incorrect.
(ii) Mark only one correct answer out of four alternatives.
(iii) Use Pencil or Blue/Black Ball Point Pen only for writing particulars for any marking.
(iv) Darken the circles in the space provided only.
(v) Use of white fluid or any other material which damages the answer sheet, is not permitted.
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8] “ During the boom periods when aggregate demand, national income and prices are high, entrepreneurs
tend to make high profits”. This statement shows ––
(a) Effect of micro economic variables on macro variables
(b) Effect of macro economic variables on micro variables
(c) Interdependence of micro and macro economics
(d) Both (b) and (c)
9] Capital intensive technique would be chosen in a____
(a) labour surplus economy where the relative price of capital is lower
(b) capital surplus economy where the relative price of capital is lower
(c) developed economy where technology is better
(d) developing economy where technology is poor
10] Which of the following statement is incorrect?
(a) Business economics is a normative in nature
(b) Business economics is closely related with statistics
(c) Business economics only considers micro variables
(d) Business economics is also called Managerial economics
11] All of the following are within the scope of Business Economics except____
(a) Capital Budgeting (b) Risk Analysis
(c) Business Cycles (d) Accounting Standards
12] Which of the following is considered as a disadvantage of allocating resources in a capitalist economy?
(a) Income will tend to be unevenly distributed
(b) People do not get goods of their choice
(c) Men of initiative and enterprise are not rewarded
(d) Profits will tend to be low
13] Market Demand is the sum total of–
(a) all quantities that producer’s can produce
(b) all quantities actually sold in the market
(c) all quantities demanded by individual households and consumers
(d) all the above
14] The demand function of a commodity ‘X’ is given by Qx = 20 - 3 Px. What would be he value of Px when the
corresponding value of Qx = 14.
(a) ` 5 (b) ` 4 (c) ` 3 (d) ` 2
15] A relative price is–
(a) price expressed in terms of money
(b) what you get paid for babysitting your cousin
(c) the ratio of one price to another
(d) equal to a money price
16] Consumers buy a good till Px = MUx. If the price falls, the consumer will reach equilibrium-
(a) at a lower quantity
(b) at a higher quantity
(c) at zero quantity level
(d) all the above
17] If the demand rises with the rise in consumer’s real income, such a good is called ________.
(a) Normal goods
(b) Neutral goods
(c) Inferior goods
(d) Luxury goods
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38] Which of the following statements is correct of the relationship among the short run costs?
(a) ATC = AFC – AVC (b) AVC = AFC + ATC
(c) AFC = ATC + AVC (d) AFC = ATC – AVC
39] Find the odd out –
(a) Monopoly may be the result of control over raw materials
(b) Monopoly may be the result of business combines
(c) Monopoly may be the result of patents, copyrights, etc.
(d) Monopoly may be the result of control over demand of commodity
40] Highly elastic negatively sloped demand curve is related to –
(a) monopoly (b) monopolistic competition
(c) perfect competition (d) both (a) and (b)
41] If the market price is Rs. 13, to maximize profits the firm should produce –
(a) 8 units (b) 7 units (c) 6 units (d) 9 units
42]
In the above figure, the demand curves facing a seller under perfect competition, monopolistic competition
and Monopoly are–
(a) AR2 ; AR1 , AR (b) AR1 , AR2 , AR
(c) AR , AR2, AR1 (d) AR , AR1 , AR2
43] A bilateral monopoly is one which–
(a) there are two products with one producer
(b) there are international monopoly agreements
(c) monopoly is shared between the people
(d) a monopolist is facing a monopsonist
44] Which of the following is not correct?
(a) if e > 1 , MR is +ve (b) if e < 1 , MR is –ve
(c) if e = 1 , MR = 0 (d) if e = 0 , MR = 0
45] Market price is the price that prevails in a ________
(a) very short period market (b) short period market
(c) long period market (d) secular period market
46] Which of the following is not a characteristics of a “price taker”?
(a) TR = P X Q (b) AR = Price
(c) Negatively sloped demand curve (d) Marginal Revenue = Price
47] Which market explains that Marginal Cost is equal to price for attaining equilibrium.
(a) Perfect Competition (b) Monopoly
(c) Oligopoly (d) Monopolistic Competition
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77. Public Policies are always _______________. Fill in the gap by taking the appropriate expression from the
following:
(a) Goal oriented (b) Minutely defined
(c) Pro-rich (d) For the poor
78. Which of the following institutions has been scrapped recently?
(a) Minerals and Metals Regulatory Commission
(b) Coal India Limited
(c) Planning Commission
(d) FIPB
79. The method of FDI other than Automatic route is called :
(a) NRI Route (b) Government Route
(c) Institutional Route (d) Priority Route
80. Sale of 50% stake in a PSU to a single private sector company is an example of:
(a) Displacement of stake
(b) Decentralization of Authority
(c) Delegation of stake
(d) Disinvestment to form a Joint Venture
81. Where can the first appeal against SEBI be made?
(a) High Court (b) Supreme Court
(c) Securities Appellate Tribunal (d) RBI
82. Which of the following is not the concern of monetary policy?
(a) Interest rate (b) Quantity of money and credit
(c) Disposable income with the households (d) Both (a) & (b)
83. Which of the following is incorrect?
(a) SLR and CRR are quantitative measures of credit control RBI
(b) Repo rate is the rate at which banks borrow money from RBI
(c) Bank rate and Repo rate are the same rate used for different purposes
(d) Qualitative measures of credit control are also called selective credit control
84. Which of the given statements does not stand true for EXIM Bank?
(a) It was set up in 1982.
(b) It finances joint ventures abroad
(c) It provides counselling services to companies engaged in exports and imports.
(d) It is a member of the Alliance for Financial inclusion
85. SEBI has to be responsive to the needs of groups, which constitute the market:
(a) The issuers of securities
(b) The investors
(c) The market intermediaries
(d) All of the above
86. NABARD is the most important institution in the country which looks after the development of the
(a) Cottage industry, (b) Small industry
(c) Village industry (d) All of the above.
87. The Reserve Bank of India being the Central Bank of India performs all the central banking functions. Which
one of the following is not the functions of RBI?
(a) Issue of currency
(b) Banker to the government
(c) Watchdog of the unethical competition in the market
(d) Custodian of the nation’s foreign exchange reserves
88. A portion of the after‐tax profits paid out to the owners of a business as a return on their investment is:
(a) Dividend (b) Expense
(c) Expenditure (d) Deferred income
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